2002Annual Report.pdf

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UTILIIiES COHHISSION
FERC Form No.2
ANNUAL REPORT OF MAJOR
NATURAL GAS COMPANIES
This report is mandatory under the Natural Gas Act, Sections 10(a), and 1 6
and 18 CFR 260.1. Failure to report may result in criminal fines, civil
penalties, another sancllons as provided by law. The Federal Energy
Regulatory Commission does not consider this report to be of a confidential
nature.
Exact Legal Name of Bespondent (Company)
AVISTA CORP.
Year of Report
Dec.31, 2gg2
FEHC FORM No.2 (1-99)
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INSTRUCTIONS FOR FILING THE
FERC FORM NO.2
il.
ilt.
GENERAL INFORMATION
Purpose
This form is designed to collect financial and operational information from major interstate 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 requirements 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, OC 20426
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 bondholders, 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 Accountant's published accounting releases), and
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FERC FoRM No.2 (12-s6)Page i
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GENERAL INFORMATION
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(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.)
Reference
Paoes
1 10-1 13
114-116
ISchedules
Comparative Balance Sheet
Statement of lncome
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V.
Statement of Retained Earnings 118-119
Statement of Cash Flows 120-121
Notes to Financial Statements 122
lnsert the letter or report immediately following the cover sheet of the original and each copy of this form.
(d) Federal, State and Local Govemments and other authorized users may obtain additional blank copies to meet
their requirement free of charge from:
Public Reference and Files Maintenance Branch
Washington, DC 20426
[phone]
When to Submit
Submit this report form on or before April 30th of the year following the year covered by this report.
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
Commission, Washington, OC 20426 (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
disolavs a valid OMB control number.
FERC FORM NO.2 (12-s6)Page ii
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GENERAL INSTRUCTIONS
l. Prepare this report in conformity with the Uniform Systems of Accounts (18 CFR 201)(U.S. of A.). lnterpret all
accounting words and phrases in accordance with the U.S. of A.
ll. 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 current reporting year, and use the current year amounts for
statement of income accounts.
lll. 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.
lV. 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.
V. 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).
Vl. lndicate negative amounts (such as decreases) by enclosing the figures in parentheses ( ).
Vll. 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 Attestation, page '1 . Mail dated resubmissions to:
Chief Accountant
Federal Energy Regulatory Commission
Washington, DC 20426
Vlll. Provide a supplemental statement further explaining accounts or pages as necessary. Attach the supplemental
statement (8 1l2by 11 inch size) to the page being supplemented. Provide the appropriate identification information,
including the tifle(s) of the page and the page number supplemented.
lX. Do not make references to reports of previous years or to other reports in lieu of required entries, except as specifically
authorized.
X. 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.
Xl. Report all gas volumes in MMBtu and Dth.
Xll. Respondents may submit computer printed schedules (reduced lo I 112 x 11) instead of the schedules in the FERC
Form 2 if they are in substantially the same format.
Xlll. 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
FERC FORM NO.2 (12-96)Page iii
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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 cm. per sec. ) with air of the same temperature and pressure as the gas, when the products of combustion
are cooled to the initial temperature of gas and air when the 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.
Dekatherm-A unit of heating value equivalent to 10 therms or 'l ,000,000 Btu.
Resoondent-The person, corporation, licensee, agency, authority, or other legal entity or instrumentality on whose
EXCERPTS FROM THE LAW
(Natural Gas Act, 15 U.S.C. 717-717w1
"Sec.10(a). Every natural-gas 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 information as to assets and liabilities,
capitalization, investment and reduction thereof, 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 flled with the Commission, the information which they
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
conviction thereof by a fine of not ino which such offense occurs."
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IFERC FORM NO.2 (12-96)Page iv
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ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
IDENTIFICATION
01 Exact Legal Name of Respondent
Avista Corp.
O2Year of Report
Dec.31, 2002
03 Previous Name and Date of Change (lf name changed during year)
Avjsta Corp.
04 Address of Principal Office at End of Year (Street, City, State, Zip Code)
1411 E. Mission Avenue, Spokane, I,JA 99202
05 Name of Contact Person
M. K. Malqu'ist
06 Title ol Contact Person
Senior VP and CFO
07 Address of Contact Person (Street, City, State, Zip Code)
1411 E. Mission Avenue, Spokane, WA 99202
08 Telephone ol Contact Person, lncluding Area Code
(soe) 4s5-4s43
This Report ls:(1) ffiRn Originat(2) !A Besubmission
10 Date of Report
(Mo, Da, Y)
04/30/2003
ATTESTATION
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 correct statement of the business and affairs o{ the above named respondent in respect to each and every matter set
forth therein during the period from and including January 1 to and including December 31 of the year of the report.
1'l Name
M. K. Malquist
12 Title
Senior Vice President and CFO
13 Signature 14 Date Signed
04/30/2003
Title 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or
Department of the United States any false, fictitious or fraudulent statements as to any matter within its
jurisdiction.
FERC FORM NO.2 (12-96)Page 1
Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) n A Resubmission
Date of Fleport
(Mo, Da, Yr)
0413012003
Year of Report
Dec.31 , 2oo2
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 different from that where the general corporate books are kept.
M. K. Malquist, Senior Vice President and Chlef, Financial Officer
1{11 E. Mission Avenu6
Spokane, wA 99202
2. Provide the name of the State under the laws of which respondent is incorporated, and date o{ 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.
state of waghiDgton, Incoa?orated LIarch 15, 1889
3. lf at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of
receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which the receivership or
trusteeship was created, and (d) date when possession by receiver or trustee ceased.
Not Applicable
4. State the classes or utility and other services furnished by respondent during the year in each State in which
the respondent operated.
Electric serrrice in th6 states of washington, Idaho and llontana
Natural gas senrice in the states of Washington, IdBl: o, oregoB, and california
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not
the principal accountant for your previous year's certified financial statements?
(1) n Yes...Enter the date when such independent accountant was initially engaged:
(2) E No
FERC FoRM No.2 (ED. 12-87)PAGE 101
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Name of Respondent
Avista Corp.
This Beoort ls:(1) fiAn Originat(2) ;-1A Resubmission
uale oI Hepon(Mo, Da, Yr)
0413012003
Year oI Hepon
Dec.31, 2oo2
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. 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 interesls.
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 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 behveen two or more parties who together have control within the meaning of the definition ol
control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line
No.
Name of Company Controlled
(a)
Kind of Business
(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
1 Avista Capital Parenl company to all of the
2 Company's subsidiaries.100
3
4 Avista Advantage, lnc.Provides various energy 100
5 services, such as lnterneh
6 based specialty billing and
7 inlormation services.
8
9 Avista Communications, lnc.An lntegrated Communications 100 Currently inactive
10 Provider (lCP) that provided
11 local telecommunications
12 solutions and designed, buill
13 and managed metropolitan
'14 area fiber optic networks.
15
16 Avista Development, lnc.Nonoperating company which 100
17 maintains a small investment
18 portfolio of real estate and
19 other investments.
20
21 Avista Energy, lnc.Wholesale electricity and 99.82
22 natural gas trading and
23 marketing.
24
25 Avista Laboratories, lnc.Develops proton exchange 100
26 membrane (PEM) luel cell
27 technology and fuel cell
FERC FORM NO.2 (ED.12-96)Page 103
Name of Respondent
Avista Corp.
This Reoort ls:(1) fien Originatl2l nA Resubmission
uale oI Heoon(Mo, Da, Yi)
0413012003
Year of Report
Dec.31, 2oo2
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. 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.
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 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 of Business
(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
1 components.
2
3 Avista Power, LLC.Owns electric 100
4 leneration assets
5
o Avista Services, lnc.}ff ers prod uctVservices to 100 Currenly lnactive
7 utility customers.
8
I Avista Turbine Power, lnc.Receives assignments of 100
't0 purchase power agreements.
11
'12 Avista Rathdrum, LLC Owns electric 100
13 generation assets.
14
't5 Avista Ventures, lnc.lnvests in emerging business 100
16 opportunities.
17
18 Pentzer Corporation vVithin Avista Capital;100
19 parent company of Advanced
20 Manufacturing and
2'.1 Development.
22
23 Advanced Manufacturing and Development, lnc.Manufacturer of electronic 93
24 and mechanical equipment
25 for the computer and
26 instrumentation industries
27 and fabricates video arcade
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IFERC FORM NO. 2 (ED. 12-96)
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Name of Respondenl
Avista Corp.
This Reoort ls:(1) 5]nn orisinat(21 5A Resubmission
uate oI Heoon(Mo, Da, Yi)
o413012003
Year oI F{epon
Dec.31, 2oo2
CORPORATIONS CONTROLLED BY RESPONDENT
'l . Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly 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.
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 ol the other, as where the
voting control is equally divided between two holders, or each party holds a veio power over the other. Joint control may exist by
mutual agreement or understanding between lwo 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 ol Company Controlled
(a)
Kind of Business
(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
1 games.
2
3 Avista Receivables Corporation Acquires and sells accounts 100
4 receivable of Avista Corp.
5
6 INDIRECT CONTROL:
7 Rathdrum Power, LLC Develops and owns electric 49
8 generation assets.
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10 Coyote Springs 2, LLC Develops and owns electric 50
't1 generation assets.
12
13 H2 Fuel, LLC Subsidiary ol Avista Labs.70
14 Develop and commercialize
15 technologies for
16 manufacturing hydrogen and
17 hydrocarbon fuels.
18
19 Spokane Energy, LLC Marketing ol Energy 100
20
21
22
23
24
25
26
27
FERC FORM NO.2 (ED. 12-95)Page 103.2
Name ot Bespondent
Avista Corp.
This Reoort ls:(1) fiAn originat
(2') nA Resubmission
Date of Report(Mo, Da, Yr)
04/30/2003 ffl Hl
ISecurity Holders and Voting Powers
1 . Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book
or compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent,
and state the number of votes that each could cast on that date if a meeting were held. lf any such holder held in trust, give in a
footnote the known particulars of the trust (whether voting trust, etc.), duration of trust, and principal holders of beneficiary interests in
the trust. lf the company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the
year, or if since it compiled the previous list of stockholders, some other class of security has become vested with voting rights, then
show such 10 security holders as of the close of the year. Arrange the names of the security holders in the order of voting power,
commencing with the highest. Show in column (a) the titles of otficers and directors included in such list of 10 security holders.
2. lt any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with
voting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or
contingent; iI contingent, describe the contingency.
3. lf any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination
of corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of
the respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material
information relating to exercise of the options, warrants, or rights. Specify the amount of such securities or assets any otficer, director,
associated company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible
securities or to any securities substantially all of which are outstanding in the hands of the general public where the options, warrants,
'1. Give date o, the latest closing of the stock
book prior to end of year, and, in a footnote, state
the purpose <lf such r;losit'lg:
November 22,2002 to pay the
December 13, 2002 dividend.
2. State the total number ol votes cast at the latest general
meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by prory.
Total: 41812176
By Proxy: 41812176
3. Give the date and place of
such meeting:
May9,20U I
Spokane, Washington
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Line
No.
Name (Title) and Address of
Security Holder
Ia)
VOTING SECURITIES
4. Number of votes as of (date): 11122!2m,2
Total Votes
(b)
Common Stock
(c)
Preferred Stock
1d)
Olher
/e)
t TOTAL votes of all votino securities 47.974.948 47.974.948
o TOTAL number of securitv holders 17,373 17,373
7 TOTAL votes of securiU holders listed below 370,390 370,390
8
I DBH Properties LP - Coeur d'Alene, lD 77,646 77,646
10 Otis E. Kline TR U/A - Phoenix. AZ 70,000 70,000
11 Harold J. White TR U/A - Spokane, WA 46,891 46,891
12 Maroaret Ann Brosnan TR UiA - lndeoendence, OH 31,000 31.000
13 Allred C. Glassell, Jr. - Houston, TX 30,028 30.028
14 Gladys L. Rikerd - Spokane, WA 25.978 25,978
15 Paul Friedrich Eisen TR U/A - San Francisco. CA 24,282 24,282
16 Darlene L. Braune & Edmund W. Braune JT TEN 22,462 22,462
17 - Sookane, WA
18 Kay Kobayashi - Los Anqeles, CA 22.O92 22,092
19 Ernest C. Gosnav Jr. & Marie K. Gosnav TRS U/A 20,011 20,011
20 - Spokane, WA
FFne FORM NO 2 /12-q6l Pade 1O7
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Name or Hesponoent
Avista Corp.
I nrs Hepon rs:(1) E AnOriginal
(2) ! A Resubmission
uare or Hepon
0413012003
Year or Hepon
Dec.31, 2002
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 unone," "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 acguired. 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 ol
companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to
Commission authorization.
3. Purchase or sale of an operating unit or system: 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. lmportant extension or reduction of transmission or distribution system: State territory 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 sources ol gas made available to it from purchases, development, purchase contract or otherwise, giving location and
approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc.
6. Obligations incurred as a result of issuance of securities or assumption of liabilities or guarantees 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 charler: Explain the nature and purpose of such changes or amendments.
8. State the estimated annual effect and nalure 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 ihe respondent not disclosed elsewhere in this report in which an officer,
director, security holder reported on Page 106, voting lrustee, 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 fumish the data required by lnstructions 1 to 11 above, such notes may be included on this page.
PAGE lOS INTENTIONALLY LEFT BLANK
SEE PAGE 109 FOR REQUIRED INFORMATION.
FERC FORM NO.2 (ED.12-96)Page 108
Name of Respondent This Report is:
(1) X An Original
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec 31, 2002
IMPORTANT CHANGES DURING THE YEAR
l.
2.
J.
4.
5.
6.
7.
8.
9.
10.ll.
12.
None
INone
None
None
Nong
rtes ? 1 1 7 /L qnAl 5 nf Nntpc tn Finannial Qtrfempnrc pooc 1)7nf fhis rennrt IReference is made to Notes 3,13, L4, and 15 of Notes to Financial Statements, Page 122 of this report.
None
Average annual wage increases were3.86Vo in2002 for non-exempt personnel. Annual average wage increases were 4.26Vo I
for exempt employees. Bargaining unit employees were granted increases ranging from3.O%o to A.OVo. f
Reference is made to Note 24 of Notes to Financial Statements, Page 122 of this report.
None
N/A
See Page 122 ofthis report.t
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FERC FORM NO.2 .1 109
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Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) tl A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec.31 , y
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line
No.
Title of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End ol Year
(d)
1 UTILITY PLANT
2 Utility Plant (101 -106, 1 14)200-20'l 2,277,779,491 2.370.810,931
3 Construction Work in Prooress (107)200-201 54,964,08i 17,58 t,119
4 TOTAL Utilitv Plant (Enter Total of lines 2 and 3)2,332,743,57i 2,388,392,050
5 (Less) Accum. Prov. for Depr. Amort. Depl. (108, 111, 115)200-201 767,101,65(824,688,269
6 Net Utility Plant (Enter Total of line 4 less 5)1 ,56s,641 ,911 1,563,703,781
7 Nuclear Fuel ('120.1-120.4, 120.6)202-203 0
8 (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5)202-203 0
I Net Nuclear Fuel (Enter Total ot line 7 less 8)0
10 Net Utility Plant (Enter Total of lines 6 and 9)1,565,641,91i 1,563,703,781
11 Utility Plant Adiustments (116)122 0
12 Gas Stored Underground - Noncurrent (1 17)0
13 OTHER PROPERW AND INVESTMENTS
'14 Nonutility Property (121)221 3,741,05t 3,156,010
15 (Less) Accum. Prov. lor Depr. and Amoil. (122)224.541 107,826
16 lnvestments in Associated Companies (123)0
17 lnvestment in Subsidiary Companies (123.1)224-225 350,746,584 256,737,740
18 (For Cost of Account 1 23.1 , See Footnote Page 224, line 42)
19 Noncurrent Portion of Allowances 228-229 0
20 Other lnvestments (124)50,536,28:46,498,833
21 Special Funds (125-'128)'t 2,076,59t 1 1 ,1 82,354
22 TOTAL Other Property and lnvestments (Total of lines 14-17,19-21)416.875.97:317,467,1 1 1
23 CURRENT AND ACCRUED ASSETS
24 Cash (131)-513.761 10,048,633
25 Special Deposits (1 32-134)2.890,63(2,465,146
26 Workino Fund ('135)423,72!,384,217
27 Temporary Cash lnvestments (136)7,648,78i 24,126,777
2A Notes Receivable (141)0
29 Customer Accounts Receivable (1 42)49,675,97:28,898,856
30 Other Accounts Receivable (143)5,295,151 4,238,495
31 (Less) Accum. Prov. for Uncollectible Acct.-Credit (144)2,949,91:2,688,665
32 Notes Receivable from Associated Companies (145)182,111,911 137,275,825
33 Accounts Receivable from Assoc. Companies (146)-2,O22,78i 740,428
34 Fuel Stock (151)227 3,395,77i 3,261,065
35 Fuel Stock Expenses Undistributed (152)227 0
36 Besiduals (Elec) and Extracted Products (153)227 0
37 Plant Materials and Operating Supplies ('154)227 9,015,27t 8,449,512
38 Merchandise (155)227 0
39 Other Materials and Supplies (156)227 0
40 Nuclear Materials Held for Sale (157)202-2031227 0
41 Allowances (158.1 and 158.2)228-229 0
42 (Less) Noncurrent Portion of Allowances 0
43 Stores Expense Undistributed (163)227 578,28(494.542
44 Gas Stored Underoround - Current (164.1 )6,168,38'7,563,672
45 Liquefied Natural Gas Stored and Held lor Processing (164.2-14t.3)631 ,78(563,856
46 Prepayments (165)2,185,34i 2,916,606
47 Advances for Gas (166-167)0
48 lnterest and Dividends Receivable (171)250.26',27,487
49 Rents Receivable (172)737,96(676,514
50 Accrued Utility Bevenues (173)0
51 Miscellaneous Current and Accrued Assets (174)1.018_09'322,206
52 Derivative lnstrument Assets (1 75)0
FERC FORM NO.2 (ED. 12-941 Page 110
Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) ! A Resubmission
Date of Report
(Mo, Da, Yr)
04/30/2003
Year ol Report
Dec.31 , 2oo2
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBlTslcontinued)
Line
No.
Title of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End ol Year
(d)
53 Derivative lnstrument Assets - Hedoes (176)60,322,238
54 TOTAL Current and Accrued Assets (Enter Total of lines 24 thru 53)266,540,88r 290,087,410
55 DEFERRED DEBITS
56 Unamortized Debt Expenses (18'l)26,075,05:z'.t,921,640
57 Extraordinary Propertv Losses (1 82.1 230 0
58 Unrecovered Plant and Reoulatorv Studv Costs (182.2)230 0
59 Other Regulatory Assets (182.3)232 445,035,671 248.746,931
60 Prelim. Survey and lnvestigation Charges (Electric) (183)7,973,06t 12,130,418
61 Prelim. Sur. and lnvest. Charges (Gas) (183.1, 183.2)0
62 Clearino Accounts (1 84)-2,081 ,15r 1,416,423
63 Temporary Facilities (185)0
64 Miscellaneous Deferred Debits (1 86)233 109,424,211 81 ,406,921
65 Def. Losses from Disposition of Utility Plt. (187)0
bb Besearch, Devel. and Demonstration Expend. (188)352-353 0
67 Unamortized Loss on Reaouired Debt (189)15,'.t47,12',29,206,730
68 Accumulated Deferred lncome Taxes (190)234 27,044,941 37,595,304
69 Unrecovered Purchased Gas Costs (191)52.679,571 11,514,486
70 TOTAL Deferred Debits (Enter Total of lines 56 thru 69)681,298,50i 443,938,853
71 TOTAL Assets and other Debits (Enter Total of lines 10,'l I,12,22,54,70)2,930.357.28(2,615,197,155
FERC FORM NO.2 (ED. 12-94)Page 111
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Name of Respondent
Avista Corp.
This Report ls:
(1) B An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
04t3012003
Year of Report
Dec.31, g
ooMPARATTVE BALANCE SHEET (LrABtLrTrES AND OTHER CREDTTS)
Line
No.
Tite of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
PROPR]ETABY CAPITAL
2 Common Stock lssued (201)250-251 617.737.21(623,091,721
3 Preferred Stock lssued (204)250-251 3s,000,00(33,250,000
4 Capikl Stock Subscribed (202,2051 252 0
5 Stock Liability for Conversion (203, 206)252 0
6 Premium on Capital Stock (207)252 0
7 Other Paid-ln Capital (208-211 253 0
8 lnstallments Received on Capital Stock (212)252 0
I (Less) Discount on Capital Stock (213)254 0
10 (Less) Capital Stock Expense (214)254 11,924,02(11,927,830
11 Retained Earnings (2'15, 215.1, 216')118-119 -106,447,40i 60,386,146
12 Unappropriated Undistributed Subsidiary Earnings (2 1 6. 1 )118-119 226,474,93t 65,750,804
't3 (Less) Reaquired Capital Stock (217)250-251 0
't4 Accumulated Other Comprehensive lncome (219)122(aXb)-18,809,177
15 TOTAL Proprietary Capital (Enter Total of lines 2 thru 13)760,840,71(751 ,741,664
16 LONG.TERM DEBT
17 Bonds (221)2s6-257 401 .300.00(401,300,000
18 (Less) Reaquired Bonds (222)256-257 0
19 Advances lrom Associated Companies (223)256-257 0
20 Other Long-Te tm Oebl (224)256-257 931,000,00(703.778.874
21 Unamortized Premium on Long-Term Debt (225)0
22 (Less) Unamortized Discount on Long-Term Debt-Debil (226)2.546.88{2.160.866
23 TOTAL Long-Term Debt (Enter Total of lines 16 thru 21)1,329,753,11i 1 ,102,91 8,008
24 OTHER NONCURRENT LIABILITIES
25 Obliqations Under Capital Leases - Noncurrent (227)621,526
26 Accumulated Provision for Property lnsurance (228.1)0
27 Accumulated Provision for lniuries and Damaqes (228.2)1,476,49,1,446,348
28 Accumulated Provision for Pensions and Benefits (228.3)18,184,2'il 50,209,349
29 Accumulated Miscellaneous Operating Provisions (228.4)0
30 Accumulated Provision for Rate Refunds (229)0
31 TOTAL OTHER Noncurrent Liabilities (Enter Total of lines 24 thru 29)19,660,70!52,277,223
32 CURFENT AND ACCRUED LIABILITIES
33 Notes Payable (231)0
34 Accounts Pavable (232)52,930,34r 36,247,518
35 Notes Payable to Associated Companies (233)0
36 Accounts Payable to Associated Companies (234)20.512.59i 18,524,753
37 Customer Deposits (235)3,820,41(4,533,815
38 Taxes Accrued (236)262-263 -20,229,94.22.522,183
39 lnterest Accrued (237)18.583.36!20,307,075
40 Dividends Declared (238)99,02(0
41 Matured Lono-Term Debt (239)0
42 Matured lnterest (240)0
43 Tax Collections Payable (241)374,37,-754
M Miscellaneous Current and Accrued Liabilities (242)515.401 20,279,696
45 Oblioations Under Caoital Leases-Gurrent (243)0
FERC FORM NO.2 (ED. 12-89)Page 112
Name of Respondent
Avista Corp.
This Report ls:
(1) tr AnOriginal
(2) tr A Resubmission
Date ol Report
(Mo, Da, Y)
04/3012003
Year of Report
Dec.31, 2oo2
COMPARATIVE BALANCE SH EET (LlABlLlTl ES AND OTH ER CREDlTSXcontinued)
Line
No.
Tifle of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning ol Year
(c)
Balance at
End of Year
(d)
46 Derivative lnstrument Liabilities (244)0
47 Derivative lnstrument Liabilities - Hedges (245)50,057,633
48 TOTAL Current & Accrued Liabilities (Enter Total ol lines 32 thru 44)76,605,58:172,471,919
49 DEFERRED CREDITS
50 Customer Advances for Construction (252)981 .20t 913,115
51 Accumulated Deterred lnvestment Tax Credits (255)266-267 718,881 669,576
52 Delerred Gains lrom Disposition of Utility Plant (256)0
53 Other Deferred Credits (253)269 230,560,19t 29,705,406
54 Other Requlatory Liabilities (254)278 11,931 ,06r 20,174,502
55 Unamortized Gain on Beaquired Debt (257)1,728,47!4,1 1 8,795
56 Accumulated Deferred lncome Taxes (28'l-283)272-277 497.577.321 480,206,947
57 TOTAL Deferred Credits (Enter Total of lines 47 thru 53)743,497,15t 535,788,34'l
58 0
59 0
60 0
61 0
62 0
63 0
64 0
65 0
oo 0
67 0
68 0
69 0
70 0
71 TOTAL Liab and Other Credits (Enter Total of lines 14,22,30,45,54)2.930,357.28(2,615,197,155
FERC FORM NO.2 (ED. 12-89)Page 113
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This Page Intentionally Left Blank
Name of Respondent
Avista Corp.
This Reoort ls:(1) fiRn Originat(2) nA Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year or Hepon
Dec.31, 2OO2
STATEMENT OF INCOME FOR THE YEAR
'l . Report amounts for accounts 412 and 413, 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 412 and 413 above.
3. Report data for lines 7,9, and '10 for Natural Gas companies using accounts 404.1 , 404.2, 404.3, 4O7 .1 and 407 .2.
4. Use pages 122-123 lor 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 refund to the utility with respect to power or gas
purchases. State for each year aflected the gross revenues or costs to which the contingency relates and the tax effects together with
an explanation of the major factors which atfect the rights of the utility to retain such revenues or recover amounts paid with respect to
power and gas purchases.
6. Give concise explanations concerning significant amounts of any refunds made or received during the year
Line
No.
Account
(a)
(Rel.)
Page No.
(b)
TOTAL
gurrent YeaI
(c)
Previous Year
(d)
1 UTILITY OPERATING INCOME
2 Operating Revenues (400)300-301 893,963,515 1,230,847,19S
3 Operating Expenses
4 Operation Expenses (401)320-323 606,132,79(994,242,601
5 Maintenance Expenses (402)320-323 23,968,18i 26,266,457
o Depreciation Expense (403)336-337 60,293,54S 58,204,87C
7 Amort. & Depl. ot Utility Plant (404-405)336-337 8,430,07r 6,845,01(
8 Arnort. oI Utility Plant Acq. Ad;. (406)336-337 99,04t 99,048
I Amort. Property Losses, Unrecov Plant and Begulatory Study Costs (407)-3,58i -4,095
10 Amort. of Conversion Expenses (407)
11 Begulatory Debits (407.3)253,985 228,678
12 (Less) Regulatory Credits (407.4)17,987.20!23,255,97e
13 Taxes Other Than lncome Taxes (408.1)262-263 63,597,14'i 53,294,521
14 lncome Taxes - Federal (409.1)262-263 u,872,17Q -92,830,192
't5 - Other (409.1)262-263 2,348,13i -5,747,504
16 Provision for Deferred lncome Taxes (410.1)2U,272-277 -7,069,83i 108,321 ,57{
17 (Less) Provision lor Delerred lncome Taxes-Cr. (41 1 .1 )234,272-277 5,080,39S 5,441,83S
18 lnvestment Tax Credit Adj. - Net (41 1.4)266 -49,30t -49,30€
19 (Less) Gains from Disp. of Utility Plant (41 1.6)
20 Losses lrom Disp. of Utility Plant (41 1.7)
2'l (Less) Gains from Disposition ol Allowances (41 1.8)
22 Losses from Disposition o, Allowances (41 1.9)
23 TOTAL Utility Operating Expenses (Enter Total of lines 4 lfl'ru 22)769,804,75S 1,120,173,857
24 Net Util Oper lnc (Enter Tot line 2 less 23) Carry fwd to P'l 17,line 25 124,158,756 110,673,342
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IFERC FORM NO.2 (ED.12-96)Page 114
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Name of Bespondent
Avista Corp.
This Reoort ls:(1) [Rn Originat(2) l-1A Resubmission
Date of ReDort
(Mo, Da, Yi)
04/30/2003
Year of Report
Dec.31, 2OO2
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 accounts.
7. ll any notes appearing in the report 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
effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also give the
approximate dollar effect of such changes.
9. Explain in a footnote if the previous year's figures are ditferent from that reported in prior reports.
10. lf the columns are insufficient for reporting additional utility departments, supply the appropriate account titles, lines 2 to 23, and
report the inlormation in the blank space on pages.122-123 or in a footnote,
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY Line
No.uurrenl Year
(e)
Prevtous Year
(f)
uurrenl Year
(s)
Prevrous Year
(h)
uurrenl Year
(D
Prevrous Year
0)
584,141,003 922,204,s00 309,822,512 308,642,699
353,588,329 747,476,434 252,544,467 246.766j70 4
19,988,552 22,619,436 3,979,630 3,647,021
46,180,880 44,592,733 14,1 12,669 13,612,137
7,497,026 6,036,769 933,048 808,250
99,048 99,04€
-3,582 -4,095
1C
253,985 228,676 11
't7.987,205 23.255.978 12
43,185,433 34,313,701 20,411,7't4 18,980,824 1
25,158,719 -92,594,583 9,713,457 -235,609 14
1,430,132 -3,984,607 918,001 1,762,897 1
2,201,171 1 01 ,367,1 76 -9,271,008 6,954,398 1€
4,997,5s6 5,137,1 85 82,843 304,654 17
-49,308 -49,308 1
1
2C
21
22
476.340.947 831,528,849 293,463,812 288,645,008 22
107,800,056 90,67s,651 16,358,700 19,997,691 24
FERC FORM NO.2 (ED.12-96)Page 115
Name oI Respondent
Avista Corp.
This Beoort ls:(1) fiRn Original(2) nA Resubmission
Date of ReDort(Mo, Da, Yi)
0413012003
Year of Report
Dec.31, 2002
STATEMENT OF INCOME :OR THE YEAR (Continued)
Line
No.
OTHER UTILITY OTHER UTILITY OTHER UTILITY
uurrenl Year
(k)
rrevpus Year
(l)
Gurrent Year
(m)
rrevpus Year
(n)
Current Year
(o)
Previous Year
(p)
4
1C
11
12
13
1A
15
1€
1
1
1
2Q
21
zz
23
24
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FEBC FORM NO.2 (ED. 12-96)Page 116
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Name ol Respondent
Avista Corp.
This Reoort ls:(1) []An Originat(2) ;--1A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec.31, 2002
STATEMENT OF INCOME FOR THE YEAR (Continued)
Line
No.
Account
(a)
(Rel.)
Page No.
(b)
TOTAL
Current Year
(c)
Previous Year
(d)
25 Net Utility Operating lncome (Carried forward from page 114)124,158.75(110,673.34i
2E Other lncome and Oeductions
27 Other lncome
28 Nonutilty Operating lncome
2S Revenues From Merchandising, Jobbing and Contract Work (415)574,461 138,51i
30 (Less) Costs and Exp. of Merchandising, Job. & Contract Work (416)705,551 127,75i
31 Revenues From Nonutility Operations (417)361 ,451 378,85t
5Z (Less) Expenses of Nonutility Operations (417.1)1,914,75(2. 131 .88/
Nonoperating Rental lncome (418)-3,021 -23,90;
34 Equity in Earnings of Subsidiary Companies (41 8.1 )119 -4,212,471 1 1 ,090,21t
2a lnterest and Dividend lncome (419)23,649,10(34.250,25i
3(Allowance for Other Funds Used During Construction (419.'l)768,32:l 1,073,221
3i Miscellaneous Nonoperating lncom€ (421 )1,922,15i -173,64(
3t Gain on Disposition ot Property (421.1)210,72t 84,24i
e(TOTAL Other lncome (Enter Total of lines 29 thru 38)20,650,42t 22,377,671
4(Other lncome Deductions
41 Loss on Disposition ol Property $21.2)68,721 23,45t
42 Miscellaneous Amortization (425)340 1,323,41(1,323,90;
4i Miscellaneous lncome Deductions (426.1 -426.5)340 2,537,59(2,983,15(
44 TOTAL Other lncome Deductions (Total of lines 41 thru 43)3,929.73r 4,330,521
4l Taxes Applic. to Other lncome and Deductions
4e Taxes Other Than lncome Taxes (408.2)262-263 38,00(7,45t
47 lncome Taxes-Federal (409.2)262-263 3,329,30i 12,085,77(
4E lncome Taxes-Other (409.2)262-263 -464,55t -494,842
4g Provision for Delerred lnc. Taxes (410.2)234,272-277 3,845,35 4,292,80t
5C (Less) Provision for Deferred lnclme Taxes-Cr. (41 1.2)2U,272-277 -406,16:-40,69t
51 lnveslment Tax Credit Adj.-Net (41'1.5)
52 (Less) lnvestrnent Tax Credits (420)
53 TOTAL Taxes on Other lncome and Deduci. (Total of 46 thru 52)7,154,26!15,931,88I
5t Net Other lncome and Deductions (Enter Total lines 39, /t4, 53)9,566,42'2,115,27(
EE lnterest Charges
5(lnterest on Long-Term Debt (427)93,113,62:96,s17,79i
5i Amort. of Debt Disc. and Expense (428)5,538,'t2{3,481,482
5t Amortization of Loss on Beaquired Debt (428.1)3.323.21r 2,167,10:
E.C (Less) Amort. of Premium on Debt-Credit (429)
6C (Less) Amortization of Gain on Reaquired Debt-Credit (429.1)9,90t
6'l lnterest on Debt to Assoc. Companies (430)340
oz Other lnterest Expense (431)340 1,621 ,67i 672,192
OJ (Less) Allowance lor Borrowed Funds Used During Construction-Cr. @32)1,178,21t 2,195,821
64 Net lnterest Charges (Enter Total of lines 56 thru 63)102,418,42,100,632,84f
65 lncome Before Extraordinary ltems (Total ol lines 25, 54 and 64)31,306,75:12,155,76(
6€Extraordinary ltems
67 Extraordinary lncome (434)
68 (Less) Extraordinary Deductions (435)
69 Net Extraordinary ltems (Enter Total of line 67 less line 68)
70 lncome Taxes-Federal and Other (409.3)262-263
71 Extraordinary ltems After Taxes (Enter Total of line 69 less line 70)
72 Net lncome (Enter Total of lines 65 and 7'l)31 ,306,75:1 2,I 55,76(
FERC FORM NO.2 (ED. 12-96)Page 117
Year of Report
Dec.31, 2oo2
1. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed
subsidiary earnings for the year.
2. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the conira primary account affected in column (b)
3. State the purpose and amount of each reservation or approprialion of retained earnings.
4. List first account 439, Adjustments to Retained Earnings, reflecting adjustments to the openlng balance of 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, Adjustmenls 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.
Item
(a)
UNAPPROPRIATED RETAINED EARNINGS (Account 216)
Adjustments to Retained Earnings (Account 439)
Ot this amount, $65,852,544 reprosents prior year dividends from subsidiaries.
This amount was previously reported as Unappropriated Undistributed
Subsidiary Earnings, Acct. 216.10 and is now part of Unappropriated Retained
Earnings, Acct. 21 6.00.
TOTAL Credits to Retained Earnings (Acct. 439)
TOTAL Debits to Retained Earnings (Acct. 439)
Balance Translerred from lncome (Account 433 less Account 418.1)
Appropriations of Retained Earnings (Acct. 436)
TOTAL Appropriations of Retained Earnings (Acct. 436)
Dividends Declared-Preferred Stock (Account 437)
TOTAL Dividends Declared-Preferred Stock (Accl. 437)
Dividends Declared-Common Stock (Account 438)
TOTAL Dividends Declared-Common Stock (Acct. 438)
Transfers from Acct 216.1, Unapprop. Undistrib. Subsidiary Earnings 90,659,116
Balance - End of Year (Total '1,9,15,16,22,29,36,37)
APPBOPRIATED RETAINED EARNINGS (Account 215)
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FERC FORM NO.2 (ED.12-96)Page 118
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Name ot Hesponoent
Avista Corp.
This Reoort ls:(1) finn Originat(2) nA Resubmission
Date of Reoort
(Mo, Da, Yi)
o413012003
Year ol Report
Dec.31, 2oo2
STATEMENT OF RETAINED EARNINGS FOR THE YEAR
1. F
subs
2,E
- 43!ec
4.L
by cr
5.S
6.S
7.E
recu
8. tf
ieport all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed
ridiary earnings for the year.
ach credit and debit during the year should be identilied as to the retained earnings accounl in which recorded (Accounts 433, 436
) inclusive). Show the contra primary account affected in column (b)
tate the purpose and amount of each reservation or appropriation of retained earnings.
ist first account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance ol retained earnings. Follow
'edit, then debit items in that order.
how dividends for each class and series of capital stock.
how separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Eamings.
xplain in a footnote lhe basis for determining the amount reserved or appropriated. lf such reservalion or appropriation is to be
rrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated.
any notes appearing in the report to stockholders are applicable to this statement, include them on pages 122-123.
Ltne
No.Item
(a)
uonua rnmary
\ccount Atlected(b)
ArIlOUNI
(c)
2(1 ,548,1 21
4(
41
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44
4l TOTAL Appropriated Retained Earnings (Account 215)1,548,121
APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
4e TOTAL Approp. Retained Earnings-Amort. Reserve, Federal (Acct. 215.1)
41 TOTAL Approp. Betained Eamings (Acct. 215,215.1) Ootal 45,46)I,548,121
4E TOTAL Retained Eamings (Account 215,215.1,216) ffotal 38, 47)60,386,146
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EABNINGS (Account 216.1)
4g Balance-Beginning of Year (Debit or Credit)226,474,938
50 Equity in Eamings for Year (Credit) (Account 418.1)-4,2'.t2,474
5'l (Less) Dividends Received (Debit)89,796,369
5i Adjustments (Prior year dividends to Corp. and Sub Expense in Account 417.12)-66,715,291
Balance-End of Year (l'otal lines 49 thru 52)65,750,804
FERC FORM NO.2 (ED.12-96)Page 119
Name or P{esponoenr
Avista Corp.
I nrs HeDon ts:(1) fien Originat(2) 1-.1A Resubmission
uale oI Heoon(Mo, Da, Yi)
0413012003
Year ot Report
Dec.31, 2OO2
STATEMENT OF CASH FLOWS
1. ll the notes to the cash flow stralement in the respondents annual stockholders report are applicable to this statement, such notes should be included
in page 122-123. lnformation about non-cash investing and tinancing 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" specily 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 financing
activities should be reported in those activities. Show on Page 122-123 the amount of interest paid (net ol amounls capitalized) and income taxes paid.
Ltne
No.
ues(inPilolt foee tnslIuuu(,il r\u. c rur ErPranauun ur vuues,
(a)
Amounts
(b)
1 Net Cash Flow from Operating Activities:
2 Net lncome 31,306,753
3 Noncash Charges (Credits) to lncome:
4 Depreciation and Depletion 60,293,548
5 Amortization -8,112,744
5
7
I Delerred lncome Taxes (Net)-7,898,717
I lnvestment Tax Credit Adjustment (Net)-49,308
10 Net (lncrease) Decrease in Receivables 18,152,007
11 Net (lncrease) Decrease in lnventory -543,149
12 Net (lncrease) Decrease in Allowances lnventory
'13 Net lncrease (Decrease) in Payables and Accrued Expenses 43,968,375
14 Net (lncrease) Decrease in Other Regulatory Assets 167,944,943
15 Net lncrease (Decrease) in Other Regulatory Liabilities '13,329,566
16 (Less) Allowance for Other Funds Used During Construction 1 .8't 4,175
17 (Less) Undistributed Earnings lrom Subsidiary Companies -4,2',t2,474
18 Oher (provide details in foohote):
19 Non-Monetary Power Transaction 747,354
20 Power and Gas Delenals 99,222,518
21 Other Non-Currrent Assets/Liabilities -220,199,190
22 Net Cash Provided by (Used in) Operating Activities (Total 2 thru 2'l)200,560,255
23
24 Cash Flows from lnvestment Activities:
25 Construction and Acquisition of Plant (including land):
26 Gross Additions to Utility Plant (less nuclear fuel)-64,740,336
27 Gross Additions to Nuclear Fuel
28 Gross Additions to Common Utility Plant
29 Gross Additions to Nonutility Plant 398,337
30 (Less) Allowance for Other Funds Used During Construction -1 ,814,1 75
31 Other (provide details in lootnote):
32 Other Property & Investments 917,323
33
34 Cash Outflows for Plant (fotal ol lines 26 thru 33)-6't,610,501
35
36 Acquisition of Other Noncurrent Assets (d)
37 Proceeds from Disposal of Noncurrent Assets (d)
38
39 lnvestments in and Advances to Assoc. and Subsidiary Companies 44,836,094
40 Contributions and Advances lrom Assoc. and Subsidiary Companies 89,796,369
41 Disposition of lnvestments in (and Advances to)
42 Associated and Subsidiary Companies
43
44 Purchase of lnvestment Securities (a)
45 Proceeds from Sales of lnvestrnent Securities (a)
FERC FORM NO.2 (ED. 12-96)Page
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Name of Bespondent
Avista Corp.
This Reoort ls:(1) S]Rn orisinat(2) l-lA Resubmission
uale oI Heoon(Mo, Da, Yi)
04/30/2003
Year ot Report
Dec.31, 2OO2
STATEMENT OF CASH FLOWS
4. lnvesting Activities include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation ol assets acquired with liabilities
assumed on pages 122-123. Do not include on this statement the dollar amount ol Leases capitalized per US of A General lnstruction 20; instead
provide a reconciliation of the dollar amount of 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 clarilications and explanations.
LII It'
No.
uescnpilon (l'ee tnslrucuon l\o. 3 ror trxpranauon or uooes,
(a)
Amounls
(b)
46 Loans Made or Purchased
47 Collections on Loans
48
49 Net (lncrease) Decrease in Beceivables
50 Net (lncrease ) Decrease in lnventory
51 Net (lncrease) Decrease in Allowances Held for Speculation
52 Net lncrease (Decrease) in Payables and Accrued Expenses
53 Other (provide details in foohote):
54
55
56 Net Cash Provided by (Used in) lnvesting Activities
57 Total of lines 34 thru 55)73,021,962
58
59 Cash Flows from Financing Activities:
60 Proceeds from lssuance of:
61 Long-Term Debt (b)
62 Preferred Stock
63 Common Stock 7.034.492
64 Other (provide details in foohote):
65
66 Net lncrease in Short-Term Debt (c)
67 Other (provide details in foohote):
68
69
70 Cash Provided by Outside Sources (Total 61 thru 69)7,034,492
71
72 Payments for Relirement of:
73 Long-term Debt (b)-201,835.104
74 Prefened Stock 1,750,000
75 Common Stock
76 Other (provkle details in foohote):
77
78 Net Decrease in Short-Term Debt (c)-25.000.000
79
80 Dividends on Preferred Stock -2,402,O94
81 Dividends on Common Stock -23,054,118
82 Net Cash Provided by (Used in) Financing Activities
83 (Total of lines 70 thru 81)-247,006,824
84
85 Net lncrease (Decrease) in Cash and Cash Equivalents
86 (Total of lines 22,57 and 83)26,575,393
87
88 Cash and Cash Equivalents at Beginning of Year 10.449.380
89
90 Cash and Cash Equivalents at End of Year 37,024,773
FEHC FORM NO.2 (ED. 12-96)Page 121
1 . Use the space below for imponant notes regarding the Balance Sheet, Statement of lncome for the year, Statement of Retained
Earnings for the year, and Statement 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. Fumish particulars (details) as to any significant contingent assets or liabilities exisling at end of year, including a brief explanation of
any action initiated by the lntemal 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 stock.
3. For Account 1 16, Utility Plant Adjustments, explain the origin of such amounl, debits and credits during the year, and plan of
disposition contemplated, giving references to Cormmission orders or other authorizations respecting classification ol amounts 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 lhese 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.
PAGE l22INTENTIONALLY LEFT BLANK
SEE PAGE 123 FOR HEQUIRED INFORMATION.
I
IFERC FORM NO. 2 (ED. 12-96)Page 122
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Natare of Business
Avista Corporation (Avista Corp. or the Company) is an energy company engaged 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, represents the regulated utility operations. Avista Utilities provides electric and
natural gas distribution and transmission services in eastern Washington and northern Idaho. Avista Utilities also provides natural gas
distribution service in northeast and southwest Oregon and in the South Lake Tahoe region of California. Avista Capital, a wholly
owned subsidiary of Avista Corp., is the parent company of all of the subsidiary companies engaged in the other non-utility lines of
business.
The Company's operations are exposed to risks including, but not limited to, the effects of legislative and governmental regulations,
the price and supply of purchased power, fuel and natural gas, recoverability of power and natural gas costs, streamflow and 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 7).
Use of Estimates
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 integal 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 include 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 includes other investments and operations
of various subsidiaries as well as the operations of Avista Capital on a parent company only basis.
Avista Utilitics Operating Revenues
Operating revenues for Avista Utilities related to the sale of energy are generally recorded when service is rendered or energy is
delivered to customers. The determination of the energy sales to individual customers is based on the reading of their meters, which
occurs on a systematic basis throughout the month. At the end of each month, the amount of energy delivered to customers since the
Name of Flespondent
Avista Coro.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Beport
Dec 31,2002
NOTES TO FINANCIAL STATEMENTS (Continued)
FERC FORM NO- 2 1 123t
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31,2002
NOTES TO FINANCIAL STATEMENTS (Continued)
date of the last meter reading is estimated and the corresDondine unbilled revenue is estimated and recorded. Accounts receicorresponding
includes unbilled energy revenues of $6.1 million (net of $40.9 million of unbilled receivables sold) and $l l.l million (net of $46.6
million of unbilled receivables sold) as of December 3l , 20OZ and 2001 , respectively. See Note 3 for information with respect to thl
sale ofaccounts receivable. f
Research and Development Expenses
Company-sponsored research and development expenditures are expensed as incurred. The majority of the Company's research anl
development expenses are related to the Information and Technology line of business. Research and development expenses totaleil
$3.8 million, $8.4 million and $8.1 million in2002,2001 and 2000, respectively.
Advertising expenses totaled $1.3 million, $1.8 million and $1.2 .iffion if
T
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 taxe!
collected from customers are recorded as both operating revenue and expense and totaled $33.1 million, $26.3 million and $23.f
million in2002,2001 and 2000, respectively.
Other Income-Net
Other income-net consisted of the following items for the years ended December 3l (dollars in thousands):
2002 200t 2000
lng
Advertising Expenses
The Company expenses advertising costs as incurred.
2002,2001 and 2000, respectively.
Taxes other than income taxes
Interest income
Interest on power and natural gas deferrals
Impairment of non-operating assets
Net gain (loss) on the disposition of assets
Minority interest
Other expense
Other income
Total
$ 7 ,7 t6 $ 19,&19 $ 10,35 I9,597 t2,995 t,473- (8,240)(33) 2,884 21,048242 2t7 694(8,064) (10,839) (t0,234)
8.009 4.6t5 2.529
il1A67 $20-681 $25.86L
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';::t::;::;and its eligible subsidiaries file consotidated federal income rax rerurns. Subsidiaries are charged or credited *ith rht
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.
I
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 amountl
and tax basis of existing assets and liabilities are expected to be reported in the Company's consolidated income tax returns. Thf
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. I
Stock- Based Compensatian
The Company follows the disclosure only provisions of SFAS No. 123, "Accounting for Stock-Based Compensation." Accordinglya
employee stock options are accounted for under Accounting Principle Board Opinion (APB) No. 25, "Accounting for Stock Issued tf
Employees." Stock options are granted at exercise prices not less than the fair value of common stock on the date of grant. Undei-
APB No. 25, no compensation expense is recognized pursuant to the Company's stock option plans.I
FERC FORM NO.2 123.1
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I If compensation expense for the Company's stock option plans were determined consistent with SFAS No. 123, net income and
earnings per courmon share would have been the following pro forma amounts for the years ended December 31:?ool 2000
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4130/2003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
$0.60
$0.54
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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
Comprehensive Income
$31,307
$28,2s6
$0.60
$0.s4
$12,156
$ 9,3ss
$0.21
$0. ls
$0.20
$0.1s
$91,679
$89,850
$1.49
$ 1.45
$ 1.47
$ 1.43
The Company's comprehensive income is comprised of net income, foreign currency translation adjustments, unfunded accumulated
benefit obligation, unrealized gains and losses on interest rate swap agreements and unrealized gains and losses on investments
available-for-sale.
Earnings Per Common Share
Basic earnings per common share is computed by dividing income available for common stock by the weighted average number of
corlmon 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 cornmon 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 22 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. Cash and cash equivalents include cash deposits from counterparties. See
Note 6 for further information with respect to cash deposits from counterparties.
Temporary Investments
Temporary investments consist of marketable equity securities classified as "available for sale." The Company did not have any
temporary investments in marketable equity securities as of December 31,2002. The unrealized gain on temporary investments
totaled $1.4 million as of December 31,2001, net of taxes, and is reflected as a component of accumulated other comprehensive
income in the Consolidated Statements of Capitalization.
Allowance for Doubtful Accounts
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 31 (dollars in
thousands):
2002 2001
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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
$50,21I
3,469
6.77 r)
$46J09
$14,404
39,947
@.t40)
$5A2Lr
$ 4,267
11,835
(l.6e8)
$l4JtQl
FERC FORM NO.2 1 123.2I
I
Date of Report
(Mo, Da, Yr)
0413012003
Name of Respondent
Avista Corp.
This Beport is:
(1) X An Original
NOTES TO FINANCIAL STATEMENTS
Inventory
Inventory consists primarily of materials and supplies, fuel stock and natural gas stored. Inventory is recorded at the lower of cost or!
market, primarily using the average cost method. I
Utility Plant in Service
The cost of additions to utility plant in service, including an allowance for funds used during construction and replacements of ,nits ol
property and improvements, is capitalized. Costs of depreciable units of property retired plus costs of removal less salvage are chargeil
to accumulated depreciation.
Allowance for Funds Used During Construction I
The Allowance for Funds Used During Construction (AFUDC) 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 regulatoryl
authorities, AFUDC is capitalized as a part of the cost of utility plant and is credited currently as a non-cash item in the Consolidated!
Statements of Income and Comprehensive Income in the line item capitalized interest. The Company generally is permitted, undeF
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 th{
related utility plant is placed in service. f
TheeffectiveAFUDCratewas9.T2percentforthesecondhalf of 2002,9.03 percentforthefirsthalf of 2002 and200l,and 10.671
percent in 2000. The Company's AFUDC rates do not exceed the maximum allowable rates as determined in accordance with thel
requirements of regulatory authorities.
Depreciation
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing unit rates for hydroelectri
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 91
percent. For utility operations, the ratio of depreciation provisions to average depreciable property was 2.92 percent in 2N2, 2.841
percent in 2001 and2.72 percent in 2000.
The average service lives and remaining average service lives, respectively, for the following broad categories of utility property ut., !
electric thermal production - 35 and 14 years; hydroelectric production - 100 and 76 years; electric transmission - 60 and 25 years; f
electric distribution - 40 and 28 years; and natural gas distribution property - M and27 years.
?r*Ti:rarising from acquisitions represents the excess of the purchase price ouer ihe estimated fair value of net assets u.quir"a. fn"l
Company evaluates goodwill for impairment on at least an annual basis. Goodwill is included in non-utility properties andr
investments-net in the Consolidated Balance Sheets and totaled $7.3 million and $13.7 million as of December 31,2002 and 2001I
respectively. The level of goodwill as of December 31, 2002 and 2001 was supported by the value attributed to the operationsl
acquired. See Note 2 for changes in accounting for goodwill effective January 1,2002.
Regutatory Defened Charges and Credits IThe Company prepares its consolidated financial statements in accordance with the provisions of SFAS No. 71, "Accounting for the-
Effects of Certain Types of Regulation." The Company prepares its financial statements in accordance with SFAS No. 7l because (i)-
the Company's rates for regulated services are established by or subject to approval by an independent third-party regulator. (iil the!
regulated rates are designed to recover the Company's cost of providing the regulated services and (iii) in view of demand for thel
regulated services and the level of competition, it is reasonable to assume that rates can be charged to and collected from customers at
levels that will recover the Company's costs. SFAS No. 7l requires the Company to reflect the impact of regulatory decisions in its!
financial statements. SFAS No. 7l requires that certain costs and/or obligations (such as incurred power and natural gas costs notf
currently recovered through rates, but expected to be recovered in the future) are reflected as deferred charges on the balance sheet.
These costs and/or obligations are not reflected in the statement of income until the period during which matching revenues arer
recognized. If at some point in the future the Company determines that it no longer meets the criteria tbr continued aWlication of!
FERC FORM NO.2 (ED.Page 123.3
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SFAS No. 7l with respect 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 ofcosts not recovered through rates at the time such
costs were incurred, even if such costs were expected to be recovered in the future.
The Company's primary regulatory assets include power and natural gas deferrals (see '?ower Cost Defenals" and "Natural Gas Cost
Deferrals" below for further information), investment in exchange power (see "Investment in Exchange Power-Net" below for further
information), regulatory assets for deferred income taxes (see Note l0 for further information), unamortized debt expense (see
"Unamortized Debt Expense" below for further information), regulatory asset offsetting energy commodity derivative liabilities (see
Note 4 for further information), 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):
2001
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04/30/2003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
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Regulatory asset offsetting energy commodity derivative liabilities
Regulatory asset for postretirement benefit obligation
Demand side management and conservation programs
Other
Total
$-
4,728
23,733
1.274
$22J35
$157,529
5,200
28,813
r-2t8
$192J60
I Deferred credits include, among other items, regulatory liabilities created when the Centralia Power Plant (Centralia) 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 other non-current liabilities and defened credits.
Investment in Exchange Power-Net
The investment in exchange power represents the Company's previous investment in Washington Public Power Supply System Project
3 (WNP-3), a nuclear project that was terminated prior to completion. Under a settlement agreement with the Bonneville Power
Administration in 1985, Avista Utilities began receiving power in 1987, for a 32.5-year period, related to its investment in WM-3.
Through a settlement agreement with the Washington Utilities and Transportation Commission (WU"[C) in the Washington
jurisdiction, Avista Utilities is amortizing the recoverable portion of its investment in WNP-3 (recorded as investment in exchange
power) over a 325 year period beginning in 1987. For the Idaho jurisdiction, Avista Utilities has fully amortized the recoverable
portion of its investment in exchange power.
U namortize d D ebt Exp e ns e
Unamortized debt expense includes debt issuance costs that are amortized over the life of the related debt, as well as premiums paid to
repurchase debt, which are amortized over the average remaining maturity of outstanding debt in accordance with regulatory
accounting practices under SFAS No. 71.
Natural Gas Benchmark Mechanism
The Idaho Public Utilities Commission (IPUC), WUTC and Oregon Public Utilities Commission (OPUC) approved Avista Utilities'
Natural Gas Benchmark Mechanism in 1999. The mechanism eliminated the majority of natural gas procurement operations within
Avista Utilities and consolidated gas procurement operations under Avista Energy, the Company's non-regulated subsidiary. The
ownership of the natural gas assets remains with Avista Utilities; however, the assets are managed by Avista Energy through an
Agency Agreement. Avista Utilities continues to manage natural gas procurement for its California operations, which currently
represents approximately four percent of its total natural gas therm sales.
The Natural Gas Benchmark Mechanism provides benefits to retail customers and allows Avista Energy to retain a portion of the
benefits associated with asset optimization and the efficiencies gained in purchasing natural gas for Avista Utilities. In the first quarter
of 2002, the IPUC and the OPUC approved the continuation of the Natural Gas Benchmark Mechanism and related Agency
Agreement through March 31, 2005. In January 2003, the WUTC approved the continuation of the Natural Gas Benchmark
Mechanism and related Agency Agreement through January 29,2004. Hearings will be held before the WUTC during 2003 to
determine whether or not the Natural Gas Benchmark Mechanism and related Agency Agreement will be extended beyond January 29,
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FERC FORM NO.2 1 123.4I
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
200,4
In accordance with SFAS No.7I, profits recognized by Avista Energy on natural gas sales to Avista Utilities, including gains anl
losses 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 electric generation are expected to be recovered-
through future retail rates.
Avista Utilities' natural gas purchases from Avista Energy totaled $114.8 million, $249.8 million and $175.9 million in2002,200ll
and 2000, respectively. These costs are reflected as resource costs in the Consolidated Statements of Income and ComprehensiveIncome. IPower Cost Deferrals
Avista Utilities defers the recognition in the income statement of certain power supply costs as approved by the WUTC. Deferre{.
power supply costs are recorded as a deferred charge on the balance sheet for future review and the opportunity for recovery throug[
retail rates. The power supply costs deferred include certain differences between actual power supply costs incurred by Avista Utilitiet
and the costs included in base retail rates. This difference in power supply costs primarily results from changes in short-term
wholesale market prices, changes in the level of hydroelectric generation and changes in the level of thermal generation (includinfl
changes in fuel prices). Avista Utilities accrues interest on deferred power costs in the Washington jurisdiction at a rate, which if
adjusted semi-annually, of 8.9 percent as of December 31, 2002. Total deferred power costs for Washington customers were $ 123.7
million and $140.2 million as of December 31,2002 and 2001, respectively.
In June 2OO2,theWUTC issued an order that became effective July 1, 2002. Theorder provides for an overall rate of retum of ,.'rl
percent and a return on equity of ll.l6 percent. The order provided for no incremental rate increase to Avista Utilities' Washington_
electric customers above the rates in effect at that time. Rate increases previously approved by the WUTC totaling 3 1.2 percent G Zl
percent temporary surcharge approved in September 20Ol for the recovery of deferred power costs and a 6.2 percent increasil
approved in March 2002) were restructured. The general increase to base retail rates was 19.3 percent (or $45.7 million in annual
revenues) and the remaining ll.9 percent represents the continued recovery ofdeferred power costs over a period currently nrojectef
to continue into 2009.
In the June 2OO2 rate order, the WUTC approved the establishment of an Energy Recovery Mechanism (ERM). The ERM replaced a-
series of temporary deferral mechanisms that were in place in Washington since mid-2000. The ERM allows Avista Utilities tfl
increase or decrease electric rates periodically with WUTC approval to reflect changes in power supply costs. The ERM provides forl
Avista Utilities to incur the cost of, or receive the benefit from, the first $9 million in annual power supply costs above or below the
amount included in base retail rates. As the ERM was implemented on July 1,2N2, the Company's expense or benefit was limited tcl
$4.5 million for 2NL Under the ERM, 90 percent of annual power supply costs exceeding or below the initial $9 million ($4.f
million for 2@2) will be deferred for future surcharge or rebate to Avista Utilities' customers. The remaining l0 percent will be an
expense of, or benefit to, the Company.
Avista Utilities has a power cost adjustment (PCA) mechanism in Idaho that allows it to modify electric rates periodically with IPUI
approval to recover or rebate a portion of the difference between actual and allowed net power supply costs. The PCA mechanism
allows for the defenal of90 percent ofthe difference between actual net power supply expenses and the authorized level of net power!
supply expenses approved in the last Idaho general rate case. Avista Utilities accrues interest on deferred power costs in the Idahf
jurisdiction at a rate, which is adjusted annually, of 2 percent as of December 31, 2N2. ln October 2002, the IPUC issued an order
extending a 19.4 percent PCA surcharge for Idaho electric customers. The PCA surcharge will remain in effect until October 2003.I
The IPUC directed Avista Utilities to file a status report 60 days before the PCA surcharge expires. If review of the status report anl
the actual balance of deferred power costs support continuation of the PCA surcharge, the IPUC has indicated that it anticipates thil
PCA surcharge will be extended for an additional period. Total deferred power costs for Idaho customers were $31.5 million and
$73. I million as of December 3l,2OO2 and 2001, respectively.
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 betweer!
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FERC FORM NO.2 12-88) Paoe 123.s
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Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
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. Total deferred natural gas costs were $ I I .5 million and $52.7 million as of December
31,2002 and 2001, respectively.
Defened Revenue
In December 1998, the Company received cash proceeds of $143.4 million from a transaction 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 defened revenue against defened
power costs. The IPUC order in October 2001 directed the Company to amortize the remaining Idaho share ($34.6 million) of the
deferred revenue against defened power costs over the l5-month period between October 2001 and December 2002. The balance was
fully amortized as of December 31,2N2.
Reclassificatians
Certain prior period amounts were reclassified to conform to current statement format. These reclassifications were made for
comparative purposes and to conform to changes in accounting standards and have not affected previously reported total net income or
common equity.
NOTE 2. NEW ACCOUNTING STANDARDS
In June 2001, the Financial Accounting Standards Board (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 amount, 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 1,2002.
In April 20O2, the Company completed its transitional test of goodwill. Accordingly, the Company determined that goodwill related
to Advanced Manufacturing and Development, a subsidiary of Avista Ventures included in the Other business segment, was impaired.
This was due to a change in forecasted earnings based on the decline in the performance of the business. The fair value of the
reporting unit was determined using the present value of projected future cash flows. The Company recorded an impairment of $4.1
million, net of taxes, as a cumulative effect of accounting change in the Consolidated Statement of Income and Comprehensive
Income.
Goodwill amortization was $1.8 million, net of taxes, for 2001. Net income and basic and diluted earnings per common share would
have been $14.0 million,50.24 and $0.24, respectively, excluding goodwill amortization for 2@1. Goodwill amortization was $2.2
million, net of taxes, for 2000. Net income and basic and diluted earnings per common share would have been $93.9 million, $ 1.54
and $1.52, respectively, excluding goodwill amortization for 2000.
In June 2001, the FASB issued SFAS No. 143, "Accounting 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 will be accreted to its present value each period and the related caprtalized costs
will be depreciated over the useful life of the related asset. Upon retirement of the asset, the Company will either settle the retirement
obligation for its recorded amount or incur a gain or loss. The adoption of this statement on January I, 2003 did not have a material
impact on the Company's financial condition or results of operations. The Company recovers certain asset retirement costs through
rates charged to customers as a portion of its depreciation expense. As of December 31, 2002, the Company had estimated retirement
costs of $185.4 million included in accumulated depreciation.
FERC FORM NO.2 1 123.6I
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Renort,
Dec 31,2002 |
NOTES TO FINANCIAL STATEMENTS (Continued)
In June 2002. the FASB issued SFAS No. 146. "Accountins for Costs Associated with Exit or Disoosal Activities" which nulliIn June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" which nullifiel
EITF Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including
Certain Costs Incurred in a Restructuring)." This statement requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred. Under EITF Issue No. 94-3, a liability for an exit cost was recognized at the datl
of an entity's commitment to an exit plan. This statement also requires the initial measurement of the liability at fair value. ThiS-
statement is effective for exit or disposal activities that are initiated after December 31,2002. The adoption of this statement did not
have any impact on the Company's financial condition or results of operations
I
In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure" which
amends SFAS No. 123 "Accounting for Stock-Based Compensation." This statement provides alternative methods of transition for 1voluntary change to the fair value method of accounting for stock-based compensation. In addition, this statement requires th!
disclosure of pro forma net income and earnings per common share had the Company adopted the fair value method of accounting foF
stock-based compensation in a more prominent place in the financial statements (Note l). This statement also requires the disclosurL
of pro forma net income and earnings per common share in interim as well as annual financial statements. The alternative transitiol
methods and annual financial statement disclosures are effective for fiscal years ending after December 15,2002. Interim disclosure!
are required for periods ending after December L5,2002. The adoption of this statement affects the Company's disclosures. As the
Company has not elected to adopt the fair value method of accounting for stock-based compensation, the adoption of this statemerl
does not have any impact on the Company's financial condition or results of operations. f
In November 2002,the FASB issued Interpretation No.45, "Guarantor's Accounting and Disclosure Requirements for Guaranteel
Including Indirect Guarantees of Indebtedness of Others." This interpretation clarifies the requirements of SFAS No. 5, "Accountinl
for Contingencies" relating to a guarantor's accounting for, and disclosure of, the issuance of certain types of guarantees. Thit
interpretation requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it
assumes under that guarantee. The initial recognition and measurement provisions of this interpretation are to be applied on !
prospective basis to guarantees issued or modified subsequent to December 31,2002 and are not expected to have a material impact ol
the Company's financial condition or results of operations. The disclosure requirements of this interpretation are effective for financial
statements issued for periods that end after December 15,2002. See Note 16 for disclosure of the Company's guarantees.
In January 2003, the FASB issued Interpretation No. 46, "Consolidation of Variable Interest Entities." In general, a variable interes
entity does not have equity investors with voting rights or it has equity investors that do not provide sufficient financial resources for
the entity to support its activities. Variable interest entities are commonly referred to as special purpose entities or off-balance she{
structures; however, this FASB interpretation applies to a broader group of entities. This interpretation requires a variable interes!
entity to be consolidated by the primary beneficiary of that entity. The primary beneficiary is subject to a majority of the risk of loss
from the variable interest entity's activities or it is entitled to receive a majority of the entity's residual returns. The interpretation alsh
requires disclosure of variable interest entities that a company is not required to consolidate but in which it has a significant variabll
interest. The consolidation requirements of this interpretation apply immediately to variable interest entities created after January 3llt
2003 and apply to existing entities for the first fiscal year or interim period beginning after June 15, 2003. Certain disclosure
requirements apply to all financial statements issued after January 31,2003, regardless of when the variable interest entitf wa!
established.
The application of this FASB interpretation will require the Company to consolidate WP Funding LP effective July l, 2003. WL
Funding LP is an entity that was formed for the purpose of acquiring the natural gas-fired combustion turbine generating facility ir!
Rathdrum, Idaho (Rathdrum CT). WP Funding LP purchased the Rathdrum CT from the Company with funds provided by unrelateF
investors of which 97 percent represented debt and 3 percent represented equity. The Company operates the Rathdrum CT and leases
it from WP Funding LP and currently makes lease pryrn"nt, of $4.5 million per year. The total amount of WP Funding LP debl
outstanding that is not included on the Company's balance sheet was $54.5 million as of December 3 l, 2@2. The lease term expireJ
in February 2020; however, the current debt matures in October 2005 and will need to be refinanced at that time. Based on current
information, the difference between the book value of the debt and equity of WP Funding LP and the book value of the Rathdrum Cf
isapproximately$l5.5million($10.1 million,netof taxes). TheCompanyintendstorequestregulatoryaccountingorderstorecorl
this amount as a regulatory asset upon the consolidation of WP Funding LP.
NOTE 3. ACCOUNTS RECEIVABLE SALE I
FERC FORM NO.2 123.7
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ln 1997, Avista Receivables Corp. (ARC), formerly known as WWP Receivables Corp., 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. On May 29,2002, ARC, the Company and a third-party financial institution entered into a
three-year agreement whereby ARC can sell without recourse, on a revolving basis, up to $100.0 million of those receivables. ARC 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 31,2002
and 2001, $65.0 million and $75.0 million, respectively, in accounts receivables were sold.
NOTE 4. UTILITY ENERGY COMMODITY DERIVATIVE ASSETS AND LIABILITIES
SFAS No. 133, as amended by SFAS No. 138, establishes accounting and reporting standards for derivative instruments. including
certain derivative instruments embedded 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.
Avista Utilities enters into forward contracts to purchase or sell energy. Under forward contracts, Avista Utilities commits to purchase
or sell a specified amount of energy at a specified time, or during a specified period, in the future. Certain of these forward contracts
are considered derivative instruments. Avista Utilities also records derivative commodity assets and liabilities for over-the-counter and
exchange-traded derivative instruments as well as certain long-term contracts. These contracts are entered into to manage Avista
Utilities' loads and resources as discussed in Note 5. 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. This
accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity transactions until
the period of settlement. The order provides for Avista Utilities to not recognize the unrealized gain or loss on utility derivative
commodity instruments in the Consolidated Statements of Income and Comprehensive Income. Such realized gains or losses are
recognized in the period of settlement subject to current or future recovery in retail rates.
Avista Utilities believes substantially all of its purchases and sales contracts for both capacity and energy qualify as normal purchases
and sales under SFAS No. 133 and are not required to be recorded as derivative commodity assets and liabilities. Contracts that are
not considered derivatives under SFAS No. 133 are generally accounted for at cost until they are settled unless there is a decline in the
fair value of the contract that is determined to be other than temporary.
As of December 31, 2002, the utility derivative commodity asset balance was $60.3 million, the derivative commodity liability
balance was $50.I million and the offsetting net regulatory liability was $10.2 million. As of December 31, 2001, the utility derivative
commodity asset balance was $1.9 million, the derivative commodity liability balance was $159.4 million and the offsetting net
regulatory asset was $157.5 million. Utility derivative assets and liabilities, as well as the offsetting net regulatory asset or liability,
can change significantly from period to period due to the settlement of contracts, the entering of new contracts and changes in
commodity prices. The derivative commodity asset balance is included in Deferred Charges - Utility energy commodity derivative
assets and the derivative commodity liability balance is included in Non-Current Liabilities and Deferred Credits - Utility energy
commodity derivative liabilities on the Consolidated Balance Sheet. The offsetting net regulatory asset is included in Defened
Charges - Other regulatory assets and the offsetting net regulatory liability is included in Non-Current Liabilities and Defened Credits
- Other non-current liabilities and deferred credits on the Consolidated Balance Sheet.
Interpretations that may be issued by the Derivatives Implementation Group, a task force created to assist the FASB in answering
questions that companies have in implementing SFAS No. 133, may change the conclusions that the Company has reached regarding
accounting for energy contracts. As a result, the accounting treatment and financial statement impact could change in future periods.
NOTE 5. ENERGY COMMODITY TRADING
Name of Bespondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31,2002
NOTES TO FINANCIAL STATEMENTS (Continued)
FERC FORM NO.2 123.8I
Date of Report
(Mo, Da, Yr)
04t30t2003
Year of Report
Dec 31, 2002
Name of Respondent This Report is:
(1) X An Original
NOTES TO FINANCIAL STATEMENTS
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 gasl
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 risks inherent in these activities. The-
Company has a Risk Management Committee, separate from the units that create such risk exposure, that is overseen by the Audit-
Committee of the Company's Board of Directors, to monitor compliance with the Company's risk management policies anl
procedures.
I
Avista Utilities
Avista Utilities sells and purchases electric capacity and energy at wholesale to and from utilities and other entities ura", tong-r".J
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 (l) 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 marketa
information and experience. On the basis of these continuing projections, Avista Utilities purchases and sells energy on an annual,!
quarterly, monthly, daily and hourly basis to match actual resources to actual energy requirements. This process includes hedgingr
transactions.
Avista Utilities manages the impact of fluctuations in electric energy prices by establishing volume limits for the imbalanc" U",*""n!
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 managel
the exposure to market risk. Avista Energy is responsible for the daily management of natural gas supplies to meet the requirements of!
Avista Utilities' customers in the states of Washington, Idaho and Oregon.
In addition, Avista Utilities utilizes derivative commodity instruments for hedging price risk associated with natural gas. The Rist<t
Management Committee has limited the types of commodity instruments Avista Utilities may use 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 energy
resources owned or controlled by Avista Utilities. The market values of natural gas derivative commodity instruments held by Avistal
Utilitiesasof December3l,20[.Zand 200l,were a$24.6 millionnetliabilityanda$l33.2millionnetliability,respectively. Thel
significant liability position as of December 31, 2001 was a result of forward commitments to purchase natural gas entered into during-
2000 and the first part of 2001 at prices in excess of the market price for natural gas as of December 31, 2001. The decrease from
December 3l, 2001 to December 31, 2OO2 reflects the settlement of contracts during the period as well as an increase in the forward!
price of natural gas. Realized losses are reflected as adjustments through purchased gas cost adjustments, the ERM or the PCAI
mechanism.
Market Risk
Market risk is, in general, the risk of fluctuation in the market price of the commodity being traded and is influenced primarily by-
supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instruments. Marke[
risk is influenced to the extent that the performance or nonperformance by market participants of their contractual obligations andl
commitments affect the supply of, or demand for, the commodity.
*;11,HJl'l;';:%ffi:1,ll"iil-T:lilil"lH'*T#:"il*:,1il['#Til[""#;]"H'lill,'#];:H::: s":ffiff:"fil
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 dailf basil
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FERC FORM NO.2 123.9
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
utilizing a VAR model and monitors its risk in comparison to established thresholds.
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 not only the risk
that a counterparty may default due to circumstances relating directly to it, but also 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 current credit exposures. These policies include an evaluation of the financial condition and credit ratings of
counterparties, collateral requirements or other credit enhancements, such as letters ofcredit or parent company guarantees, and the use
of standardized agreements that allow for the netting or offsetting of positive and negative exposures associated with a single
counterparty.
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 transactions. These counterparties may seek assurance of performance in the form of
letters of credit, prepayment or cash deposits, and, in the case of Avista Energy, parent company (Avista Capital) 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 Rkks
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, forced outages at generating plants
and disruptions to information systems and other administrative tools required for normal operations. 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.
NOTE6. CASH DEPOSITS WITH AND FROM COUNTERPARTIES
Cash deposits from counterparties totaled $92.7 million and $15.7 million as of December 31,2002 and 2001, respectively, and are
included in other current liabilities on the Consolidated Balance Sheets. These funds are held by Avista Utilities and Avista Energy to
mitigate the potential impact of counterparty default risk. These amounts are subject to return if conditions warrant because of
continuing portfolio value fluctuations with those parties or substitution of collateral.
Cash deposited with counterparties totaled $35.7 million and $1.5 million as of December 31, 2OO2 and 2001, respectively, and are
included in prepayments and other current assets on the Consolidated Balance Sheets.
As is common industry practice, Avista Utilities and Avista Energy maintain margin agreements with certain counterparties. Margin
calls are triggered when exposures exceed predetermined contractual limits. Price movements in electricity and natural gas can
generate exposure levels in excess of these contractual limits. From time to time, margin calls are made and/or received by Avista
Utilities and Avista Energy. Negotiating for collateral in the form of cash, letters of credit, or parent company performance guarantees
is a common industry practice.
NOTE 7. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a 50 percent ownership interest in a combined cycle natural gas-fired turbine power plant, the Coyote Springs 2
Generation Plant (Coyote Springs 2) located in northcentral Oregon. It is expected that Coyote Springs 2 will commence operations in
2003. The Company's investment in Coyote Springs 2 was $ 109.0 million as of December 3L,2002. The Company's investment in
Coyote Springs 2 was held by Avista Power as of December 3l,2OO2 and is included in Non-utility properties and investments in the
Consolidated Balance Sheet. In January 2003, the Company's ownership interest in the plant was transferred from Avista Power to
FERC FORM NO.2 .1 123.10I
T
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31,2002
NOTES TO FINANCIAL STATEMENTS (Continued)
of related fuel costs as well as oDeratiAvista Corp. to be operated as an asset of Avista Utilities. The Company's share operatlng
maintenance expenses for plant in service will be included in the corresponding accounts in the Consolidated Statements of Income
and Comprehensive Income when Coyote Springs 2 commences operations.
IThe Company has a 15 percent ownership interest in a twin-unit coal-fired generating facility, the Colstrip Generating Prolect
(Colstrip) located in southeastern Montana, and provides financing for its ownership interest in the project. The Companyh share o{.
related fuel costs as well as operating and maintenance expenses for plant in service is included in the corresponding accounts in thel
Consolidated Statements of Income and Comprehensive Income. The Company's share of utility plant in service for Colstrip wail
$316.0 million and accumulated depreciation was $158.6 million as of December 31,2002.tNOTE 8. 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):
2002 2001
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 other
Natural gas total
Common plant (including CWIP)
Total Avista Utilities
Energy Trading and Marketing
Information and Technology
Other
Total
Equipment under capital leases at Avisu Utilities totaled
depreciation totaled $0.1 million as of December 31,2002.
capital leases as of December 31,2001.
*tl,,T'll:,i,1:'.1J"TrffJ;J,":lL;ff;:ffi tlfi"#:T:"r
$ 740,736
295,284
698,757
85.631
1.820.408
18,285
430,273
44.675
493.233
74.751
2,388,392
t42,428
15,294
20.6t1
$2t56J25
$ 69t,299
288,739
678,448
119.389
r.77't.875
18,r30
4t4,422
46.4M
478.956
75.9t2
2,332,743
r28,517
16,030
2t.tt7
$2A98467_
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tNOTE 9. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The Company has a defined benefit pension plan covering substantially all of its regular full-time employees. Certain of th1
Company's subsidiaries also participate in this plan. Individual benefits under this plan are based upon years of service and thl
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 Act, nor more than the maximum _
amounts which are currently dlductible for income tax purposes. Pension fund assets are invested primarily in marketable debt anf
equity securities. As of December 31,2002, the Company's pension plan had assets with a fair value that was less than the presenf
value of the accumulated benefit obligation under the plan. In 2002, the Company recorded an additional minimum liability for the
unfunded accumulated benefit obligation of $33.4 million and an intangible asset of $6.4 million (representing the amount oi
unrecognized prior service cost) related to the pension plan. This resulted in a charge to other comprehensive income of $ 17.6 million!
net of taxes of $9.4 million. The pension plan was amended effective July l, 200.2 to provide a lump sum payment option for-
collectively bargained employees.I
FERC FORM NO.2 12-88) Paoe '123.11
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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 2002, the Company recorded an additional minimum liability for the unfunded accumulated benefit obligation
of $0.7 million related to the SERP. In 2001 , the Company recorded an additional minimum liability for the unfunded accumulated
benefit obligation of $ l.l million related to the SERP. This resulted in a charge to other comprehensive income of $0.5 million and
$0.7 million, net of taxes, for2OO2 and 2001, respectively.
The Company provides certain health care and life insurance benefits for substantially all of its retired employees.
accrues the estimated cost of postretirement benefit obligations during the years that employees provide services.
elected to amortize the transition obligation of $34.5 million over a period of twenty years, beginning in 1993.
The
The
Company
Company
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The following table sets forth the pension and postretirement plan disclosures as of December 31, 2OO2 and 2001 and for the years
ended December 31, 2OO2,200I and 20O0 (dollars in thousands):
Post-
Pension Benefits
retiremenf Benefits
2001 ),oo)2002
Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Beport
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
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200r
Change in benefit obligation:
Benefit obligation as of beginning of year
Service cost
Interest cost
Plan amendment
Actuarial loss (gain)
Benefits paid
Expenses paid
Benefit obligation as of end of year
Change in plan assets:
Fair value ofplan assets as ofbeginning ofyear
Actual return on plan assets
Employer contributions
Benefits paid
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 obligatior/(asset)
Accrued benefit cost
Additional minimum liability
Accrued benefit liability
Assumptions as of December 31
Discount rate
Expected long-term return on plan assets
Rate of compensation increase
Medical cost trend pre-age 65 - initial
Medical cost trend pre-age 65 - ultimate
$210,510
6.734
r5,l l9
(2,530)
22,243
(r2,229)
0.462\
$238.385
$1s3,70s
(t6,677)
12,000
(11,441)
0.462)
$rt6-r25
$(102,260)
79,812
6,366
(2.67 t)
( 18,753)
(3s.303)
$(!1,056)
6.75Vo
8.OOVo
5.OOVo
$184,636
5,7 t6
t4,293
18,582
(l1,780)
(937\
$zuls-lo
$17s,033
(e,313)
(l1,078)
o37)
$153J05
$(s6,80s)
3t,144
9,726
(3.7s7)
(t9,692)
(l.139)
$(20J1r.)
7.25?o
9.OOVo
5.OOVo
$36,3ss
304
2,184
(5,821)
(660)
(3,0e1)
oo9)
$29.962
$13,969
(l,4sl)
(1,008)
QOe)
$-LL30l
$( 17,761)
1,425
9.788
(6,s48)
----------:
$(6148)
6.7SVo
8.O0Vo
9.NVo
5.OOVo
$32,761
460
2,567
3.267
(2,63s)
(6s)
$36J55
$15,196
(e02)
5ll
(77 r)
(6s)
$13-969
$(22.386)
(429)
16.865
(s,es0)
.---------:
$(5950)
7.25Vc
9.007o
9.OOVo
5.007o
FERC FORM NO.2 123.12I
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Renort;
Dec31, 2OO2 |
NOTES TO FINANCIAL STATEMENTS (Continued)
65 2007 2003Ultimate medical cost trend year pre-age 65
Medical cost trend post-age 65 - initial
Medical cost trend post-age 65 - ultimate
Ultimate medical cost trend year post-age 65
lO.OOVo
6.$OVo
2007
12.0OVo
6.OOVo
2W4
2002 200t 2000 2002 200t
2000
Components of net periodic benefit cost:
Service cost $ 6,734 $ 5,716 $ 5,372
Interest cost 15,119 14,293 13,412
Expected rerurn on plan assers ( 12,31 l) (15,254) (16,243)
Transition(asset)/obligationrecognition (1,086) (1,086) (1,086)
Amortization of prior service cost 831 989 I,548
Net gain recognition 1.021 139 (858)
Net periodic benefit cost $10.3m $AJyl $2145
$ 304 $ 460 $ 601
2,t84 2,567 2,407
(1,064) (1,31r) (t,372)
r,256 r,534 1,534
_______: (52) (300)
$2-680 $3-198 $2.870
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Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. I
one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretiremef
benefit obligation as of December 3l,2OO2 by $2.0 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 aa
of December 31,2002 by $ I .7 million and the service and interest cost by $0.2 million. f
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. Employef
matching contributions of $3.4 million, $3.5 million, $3.3 million were expensedin2N2,200l and 2000, respectively.
NOTE 10. ACCOUNTING FOR INCOME TAXES
As of December 31,2002 and 2001, the Company had net regulatory assets of $139.I million and $149.0 million, respectively, related
to the probable recovery ofcertain deferred tax liabilities from customers through future rates. I
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 ta1
liability consisted of the following as of December 3l (dollars in thousands): f
2002 200t
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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
Unfunded accumulated benefit obligation
Other
Total deferred tax assets
Deferred tax liabilities:
Differences between book and tax basis of utility plant
Power and natural gas deferrals
Unrealized energy commodity gains
Power exchange contract
Demand side management programs
$ 16,343
15,750
9,709
4,1t2
2,954
9,736
7.t72
65.776
364,827
58,081
34.231
44,533
5,0@
$ 17,431
11,071
9,176
4,481
3,4t5
399
9.544
55.517
367,406
88,323
66,401
34,444
5,679
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FERC FORM NO.2 12-88) Paoe 123.13
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Loss on reacquired debt
Other
Total deferred tax liabilities
Net deferred tax liability
8,781
4.406
5t9.923
$4!il47
4,696
5.996
572.945
$5U328
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 its defened tax assets and determined it is more likely than not that deferred
tax assets will be realized.
A reconciliation offederal income taxes derived from statutory federal tax rates (35 percent in2002,2001 and 2000) applied to pre-tax
income from continuing operations as set forth in the accompanying Consolidated Statements of Income and Comprehensive Income is
as follows for the years ended December 3l (dollars in thousands):
2002 2001 2000
Name of Respondent
Avista Coro.
This Report is:
(1) X An Originale\ A Resubmission
Date ol Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
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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
Income Tax Expense by Business Segment:
Avista Utilities
Energy Trading and Marketing
Information and Technology
Other
Total income tax expense
NOTE 11. ENERGY PURCHASE CONTRACTS
$22,s06
5,166
2,348
Q6\
$29p94
$70,281
@0.287)
$29994
$32,t37
t2,3tL
(7,t44)
(7.310)
$29.994
$32,897
5,849
(8,870)
(3es)
4.905
$34.386
$(44,7s5)
79.t41
$3t386
$20,t77
32,489
(rt,977)
(6.303)
$1L386
$62,319
4,835
3,712
72
6.060
$76-998
$(4,839)
81.837
$76p98_
$(1,990)
95,266
(10,138)
(6.140)
$76-998
The Company has 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. The Company also has various agreements for the purchase,
sale or exchange ofelectric energy with other utilities, cogenerators, small power producers and government agencies. Total expenses
for power purchased, natural gas purchased, fuel for generation and other fuel costs were $382.4 million, $1,054.2 million and
$1,3 12.7 million in 2002,2001 and 2000, respectively. The following table details future contractual commitments for power
resources (including transmission contracts) and natural gas resources (including transportation contracts) (dollars in thousands):
2003 2004 2005 2006 2OO7 Thereafter Total
Power resources $194,873 $118,775 $ 6s,349 $ 64,580 $ 66,476 5506,472 $1,016,52s
Naturalgas resources 195.580 l7l.470 82.393 48.175 48.172 385.375 931.165
Total $39tu153 $2DoJA, ilA1-ZA $.LUJ55 Sj-U.6A $89I&r7 $lgu-690
All of the energy purchase contracts were entered into as part of Avista Utilities' obligation to serve its retail natural gas and electric
customers' energy requirements. As a result, these costs are generally recovered either through base retail rates or adjustments to retail
rates as part ofthe power and natural gas cost deferral and recovery mechanisms.
In addition, the Company has operational agreements, settlements and other contractual obligations with respect to its generation,
FERC FORM NO.2 1 123.14
)
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Name of Respondent
Avisla Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
o4130/2003
Year of RePort,
Dec 31, ZOOZ I
NOTES TO FINANCIAL STATEMENTS (Continued)
transmission and distribution facilities. The expenses associated with these agreements are reflected as operation and
expenses in the Consolidated Statements of Income and Comprehensive Income.
commitments with respect to these agreements (dollars in thousands):
The following table details future contractual
2003 2004 2005 2006 2007 Thereafter Total
Contractual obligations S10.345 $12.406 Sl
The Company has fixed contracts with certain Public Utility Districts (PUD) to purchase portions of the output of certain generatin!
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. Th;
cost of power obtained under the contracts, including payments made when a facility is not operating, is included in resource costs i!
the Consolidated Statements of Income and Comprehensive Income. Expenses under these PUD contracts for 2002, 2001 and 200f
were $7.8 million, $7.4 million and $7.5 million, respectively.
Information as of Decemb er 3l,0O2l,pertaining to these PUD contracts is summarized in the following table (dollars in ttourunar), I
Company's Current Share of
I
Debt
Service Bonds
Expira-
tion tKilowatt AnnualOutnrrt Canahilitv Costs 1l)Costs (1) Orrfsfandinq l)ate
Chelan County PUD:
Rocky Reach Project
Douglas County PUD:
Wells Project
Grant County PUD:
Priest Rapids Project
Wanapum Project
Totals
Maturity Interest
Year Rate
2.97o
3.5
6.1
8.2
37,000 $1.842
30,000 I,100
55,000 1,76875.000 3.096r9lo00 $7.806
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$623
587
910
r.754
$3.821
$4,053 20tt
5,465 2018
9,662 20/,012.153 2040
$3_rJ33_
( 1) The annual costs will change in proportion to the percentage of output allocated to the Company in a particulat year.
represent the operating costs for the year 2002. Debt service costs are included in annual costs.
*ounrl
The estimated aggregate amounts of required minimum payments (the Company's share of existing debt service costs) under ,n"f
PUD contracts are as follows (dollars in thousands):
2003 2004 2005 2006 2007 Thereafter Total
Minimum payments s4.277 53.249 $3 402 $2-7s9 S2 887 522041 Si8 6rs
In addition, the Company will be required to pay its proportionate share of the variable operating expenses of these projects.
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tNOTE I.2. LONG.TERM DEBT
The following details the interest rate and maturity dates of Secured and
3l (dollars in thousands):
Secured Medium-Term Notes I
2,OO1
Unsecured Medium-Term Notes outstanding as or oecemUl
Unsecured Medium-Term Notes
Interest2OO2. TOOI Rafe ).OO)
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2002
2003
2m4
200s
i.rrr"
6.39Vo-6.68Vo
$
r5,000
29.500
$*
15,000
295N
-$
6.75Vo-9.l3%o 56.250
7.427o 30,000
$*
190,000
30,000
FERC FORM NO.2 12-88) Paoe 123.15
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2006
2007
2008
2010
2012
2018
2028
Total
20222023 7.l8%o-7.54%o 24,500 24500
7.897o-7.907o
6.89Vo-6.95Vo
6.61Vo-6.9OVo
7.377o
7.26Vo-7.45?o
30,000
20,000
10,000
7,000
27.500
30,000
20,000
10,000
7,000
27,500
8.l4Vo
5.99Vo-7.94Vo
6.067o
8.02Vo
8.05Vo
8.l5%o-8.23Vo
7.99?o
6.377o-6.88%o
8,000
26,000
25,000
25,000,,,7
8,000
26,000
25,000
25,000
12,000
10,000 10,000
5,000 5,00035.000 45.000
$2322;0 $3-z6J00
x In 2001, the Company legally defeased $50.0 million of Medium-Term Notes scheduled to mature in2OO2.
During 2N2, the Company repurchased $133.8 million of Medium-Term Notes scheduled to mature in 2003, $59.8 million of
Unsecured Senior Notes scheduled to mature in 2008 and $10.0 million of Medium-Term Notes scheduled to mature in 2028. In
accordance with regulatory accounting practices, total net premiums paid to repurchase debt were $9.5 million and are being amortized
over the average remaining maturity of outstanding debt.
In addition to the required maturities documented in the table above, the Company has sinking fund requirements of $3.1 million in
2003, $3.0 million in each of 20(),4 and 2005, $2.7 million in 2006 and $2.4 million in 2007 . Under its Mortgage and Deed of Trust,
the Company's 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 2001, 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, 2N\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, 2002, the Company could issue $109.4 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
due 2032 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 19994 and Series 19998 Bonds are backed by an insurance policy issued by AMBAC Assurance Corporation. In
January 2OO2,the interest rate on the bonds was fixed for a period ofseven years at a rate of5.00 percent for Series 1999A and 5.13
percent for Series 19998.
Other long-term debt consisted of the following items as of December 3l (dollars in thousands):
2Nt2 2(nt
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
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Notes payable
Capital lease obligations
Subsidiary total debt
Less: current portion
Other long-term debt
NOTE T3. SHORT.TERM BORROWINGS
As of December 31, 2002, the Company maintained a committed line
million that expires on May 20,2003. The Company may have up
of credit with various banks in the
to $50.0 million in letters of credit
$
1.618
1,618
651
$_967-
$ 688
2.tot
2.789
1.827
$_952_
total amount of $225.0
outstanding under this
FERC FORM NO.2 1 123.16I
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Name of Respondent
Avista Com.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Beport
(Mo, Da, Yr)
o413012003
Year of neOortl
Dec 31,2002 '
NOTES TO FINANCIAL STATEMENTS (Continued)
committed line of credit. As of December 31. 2002 and 2001. there were $14.3 million and $13.9 million of letters of cred
outstanding, respectively. 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 ofup to 0.5 percent.I
The committed line of credit agreement contains customary covenants and default provisions, including covenants not to permit tht
ratio of "consolidated total debt" to "consolidated total capitalization" of Avista Corp. to be greater than 65 percent at the end of an5
fiscal quarter. As of December 31, 2OO2, the Company was in compliance with this covenant with a ratio of 54.3 percent. Thf
committed line of credit also has a covenant requiring the ratio of "earnings before interest, taxes, depreciation and amortization" tI
"interest expense" of Avista Utilities for the year ending December 3l,2OO2 to be greater than 1.6 to l. As of December 31.2002, the
Company was in compliance with this covenant with a ratio of 2.04 to l.
The Company had a commercial paper program that also provided for fixed-term loans during 2000 and 2001.
agreements were in place as of December 3l,2OO2 and 2001.
*on. or,n.r!
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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)'
I)oo). 2001 2000
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
Commercial paper
Revolving credit agreement
Average interest rate during the period:
Fixed-term loans
Commercial paper
Revolving credit agreement
Average interest rate at end ofperiod:
Fixed-term loans
Commercial paper
Revolving credit agreement
$-$-- ll,16090,000 223,ooo
$-$- 55847,027 108,996
$-
30,000
-Vo
3.59
-Vo
3.39
$
55.000
-Vo
7.80
5.95
-Vo
5.42
$
1 I,160
152,000
$ 80,000
36,900
185,000
$ 19,538
16,833
84,255
6.7OVo
6.82
7.26
-7o
7.63
7,55
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NOTE 14. INTEREST RATE SWAP AGREEMENTS
In order to lower interest payments during a period of declining interest rates, Avista Corp. entered into an interest ,ur" ,*uf
agreement effective July 17, 2002 and terminating on June l,2008. This interest rate swap agreement effectively changes the interest
rate on $25 million of Unsecured Senior Notes from a fixed rate of 9.75 percent to a variableiate based on LIBOR. Tf is interest rat!
swap agreement is designated as a fair value hedge, which hedges the variability of the fair value of the long-term debt attributable tI
interest rate risk. This interest rate swap agreement meets the conditions of a highly effective fair value hedge in accordance with
SFAS No. 133. As such, this hedge is accounted for by recording the fair value of the interest rate swap on the balance sheet as eithl
an asset or liability with a corresponding offset recorded to mark the Unsecured Senior Notes to fair value. The fair value of ttr!
interest rate swap was a $1.4 million asset as of December 31,2002, which is included in other deferred charges in the Consolidatelf'
Balance Sheet.I
FERC FORM NO.2 12-88) Paoe 123.17
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
Rathdrum Power, LLC (RP LLC), an unconsolidated entity that is 49 percent owned by Avista Power, operates a 270 MW natural
gas-fired combustion turbine plant in northern Idaho (Lancaster Project). As of December 31, 2002, RP LLC had $ I 18.7 million of
debt outstanding that is not included in the consolidated financial statements of the Company. There is no recourse to the Company
with respect to this debt. RP LLC has entered into two interest rate swap agreements, maturing in 2006, to manage the risk that
changes in interest rates may affect the amount of future interest payments. RP LLC agreed to pay fixed rates of interest with the
differential paid or received under the interest rate swap agreements recognized as an adjustment to interest expense. These interest
rate swap agreements are considered hedges against fluctuations in future cash flows associated with changes in interest rates in
accordance with SFAS No. 133. The fair value of the interest rate swap agreements was determined by reference to market values
obtained from various third party sources. Avista Power's 49 percent ownership interest in RP LLC is accounted for under the equity
method of accounting. The effect on the financial statements for 2OOZ was a $1.3 million unrealized loss recorded as other
comprehensive loss and a corresponding decrease in non-utility property and investments in the Consolidated Balance Sheet.
NOTE T5. LEASES
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from one to twenty-five years
and expiration dates from 2003 to 2020. The Company's most significant leased assets include the Rathdrum CT and the corporate
office building. See Note 2 for a change in accounting with respect to the Rathdrum CT that will become effective July l, 2003.
Certain 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 31,2002,2001 and 2000
was $21.7 million, $19.8 million and $16.2 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 3l,2OO2 were as follows (dollars in thousands):
Year ending December 3l: 2003 2004 2005 2006 2007 Thereafter Total
Minimum payments required $15.132 Sl3.l 17 $8
The payments under the Avista Corp. capital leases are $0.2 million in each of 2003,2004 and 2005, and $0.1 million in 2006.
NOTE 16. GUARANTEES
Avista Power, through its equity investment in RP LLC, is a 49 percent owner of the Lancaster Project, which commenced commercial
operation in September 2001. Commencing with commercial operations, all of the output from the Lancaster Project is contracted to
Avista Energy for 25 years through a Power Purchase Agreement. Avista Corp. has guaranteed the Power Purchase Agreement with
respect to the performance of Avista Energy.
NOTE 17. PREFERRED STOCK.CI.'MULATIVE
On September 15,2002, the Company made a mandatory redemption of 17,500 shares of preferred stock for $1.75 million. On
September 15, 2003, 2004, 2W5 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 $ I .75 million in e ach of the years 2003 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 per share plus accrued
dividends.
NOTE T8. 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 Prefened 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 $182.8125
per share.
FERC FORM NO.2 1 123.18
T
Name of Respondent This Report is:
(1) X An Orlginal
Date of Report
(Mo, Da, Yr)
o413012003
NOTES TO FINANCIAL STATEMENTS
During 1999, the Company repurchased the equivalent of 32,250 shares of the Series L Preferred Stock. In February 2000, the
Company exercised its option to convert all the remaining outstanding shares of Series L Preferred Stock into common stock. Or;
share of Series L Preferred Stock equaled l0 depositary shares, also known as RECONS (Return-Enhanced Convertible Securitief
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 cornmon stock, representing the optional conversion price; plus 0.0361 shares of colrunon stocL
representing the optional conversion premium; plus the right to receive $0.21 in cash, representing an amount equivalent I
accumulated and unpaid dividends up until, but excluding, the conversion date. Cash payments were made in lieu of fractional shares.I
ffi:"-"*,::".'^:,::"::::J:H::::,",T",_":::T_.,",*::":_:::,',--:".**"f 78?l
percent. Concurrent with the issuance of the Preferred Trust Securities, Avista Capital I issued $1.9 million of Common Tru5
Securities to the Company. The sole assets of Avista Capital I are the Company's 7.875 percent Junior Subordinated Deferrab[
Interest Debentures, Series A, with a principal amount of $61.9 million. These debt securities may be redeemed at the Company!
option on or after January 15, 2002 and mature January 15, 2037 . The Company has not redeemed any of these Preferred Trust
Securities as of December 31,2002.
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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 20012 ranged from 2.30 percent to 2.91
percent. As of December 3 I , 2002, the annual distribution rate was 2.30 percent. Concurrent with the issuance of the Preferred Trul
Securities, Avista Capital II issued $ I .5 million of Common Trust Securities to the Company. The sole assets of Avista Capital Il arF
the Company's Floating Rate Junior Subordinated Defenable Interest Debentures, Series B, with a principal amount of $5 1.5 million.
These debt securities may be redeemed at the Company's option on or after June l, 2OO7 and mature June l, 2037. laDecember 200il
the Company purchased $ 10.0 million of these Preferred Trust Securities. I
The Company has guaranteed the payment of distributions on, and redemption price and liquidation amount in respect of, th
Preferred Trust Securities to the extent that Avista Capital I and Avista Capital II have funds available for such payments from th
respective debt securities. Upon maturity or prior redemption of such debt securities, the Trust Securities will be mandatoril
redeemed. The Consolidated Statements of Capitalization reflect only $ 100.0 million of Preferred Trust Securities as of December 3l-
2OO2 and2001 as all intercompany transactions have been eliminated.
I
NOTE 20. 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 Decemb", : I
2002 and 2001 was estimated to be $1,001.2 million, or 103 percent of the carrying value, and $1,160.2 million, or 99 percent of thF
carrying value, respectively. The fair value of the Company's mandatorily redeemable preferred stock as of December 31. 2OO2 and
2001 was estimated to Ue
-$Zg.: million, or 88 percent of the canying vaiue, and $17.j million, or 50 percent of the carrying ualut!
respectively. The fair value of the Company's preferred trust securities as of December 31,2002 and 2001 was estimated to be $89.I
million, or 90 percent of the carrying value, and $84.6 million, or 85 percent of the carrying value, respectively. These estimates were
based on available market information.
NOTE 21. COMMON STOCK
In April 1990, the Company sold 1,000,000 shares of its common stock to the Trustee of the Investment and Employee Stoc!
Ownership Plan for Employees of the Company (Plan) for the benefit of the participants and beneficiaries of the Plan. In payment fil
the shares of common stock, the Trustee issued a promissory note payable to the Company in the amount of $14.1 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 anl
principal payments on the promissory note. The batance of the promissory note receivable from the Trustee ($4.1 million ut lDecember 31,2002) is reflected as a reduction to common equity. The shares of common stock are allocated to the accounts oI
participants in the Plan as the note is repaid. During 2002, the cost recorded for the Plan was $6.0 million. Interest on the notg-
payable to the Company, cash and stock contributions to the Plan and dividends on the shares held by the Trustee were $0.5 milliof
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FERC FORM NO.2 123.19
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Name of Bespondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
$ I .6 million and $0. I million, respectively during 2002.
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 return to the status of authorized but unissued shares. During 1999 and 2000, the Company repurchased
approximately 4.8 million colnmon 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
comrnon stock and corrunon stock equivalents. No common shares were repurchased during 2001 and2OO2.
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 comrnon
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 preferred 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 or group) 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 shareholders may automatically
reinvest their dividends and make optional cash payments for the purchase of the Company's cornmon 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 cornmon stock on the open market. In the fourth quarter of 2000, the Company also began issuing new shares of
common stock for the Dividend Reinvestment and Stock Purchase Plan. During 2N2,z00l and 2000, a total of 408,799,332,861 and
125,636 shares of common stock were issued, respectively, to these plans.
NOTE22. EARNINGS PER COMMON SHARE
In February 20@, all outstanding shares of Series LPreferred 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 was 9,975.997. The
cost of converting the Series L Preferred Stock into common stock totaled $21.3 million during the first quarter of 2000, with $18.1
million representing the optional conversion premium and $3.2 million attributable to the regular dividend on the preferred stock.
The following table presents the computation of basic and diluted earnings per common share for the years ended December 3t (in
thousands, except per share amounts):
2002 2001 2000
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Numerator:
Income from continuing operations
Income (loss) from discontinued operations
Net income before cumulative effect
of accounting change
Cumulative effect of accounting change
Net income
Deduct: Preferred stock dividend requirements
Income available for common stock
$34,310
1.145
35,455
(4.148)
31,307
2.402
$28-90s
$59,60s
@7.449\
t2,t56
12,t56) a't)
s 9.724
$101,055
(9.376\
91,679
--.:91.679
23.73s
s51-944
FERC FORM NO.2 (ED.1 123.20I
Year ol Report
Dec 31. 2002
Name of Respondent This Report is:
(1) X An Original
Date of Report
(Mo, Da, Yr)
0413012003
NOTES TO FINANCIAL STATEMENTS
Weighted-average number of common shares
outstanding-basic
Effect of dilutive securities:
Restricted stock
Stock options
Weighted-average number of common shares
outstanding-diluted
47,823 47,417 45,690
l0l
312
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g^814
2002 2001 2000 _
Earnings per conrmon share, basic:
Earnings per common share from continuing operations
Earnings (loss) per common share
from discontinued operations
Earnings per common share before cumulative effect
of accounting change
Loss per common share from cumulative effect
of accounting change
Total earnings per common share, basic
Earnings per common share, diluted:
Earnings per common share from continuing operations
Earnings (loss) per common share
from discontinued operations
Earnings per common share before cumulative effect
of accounting change
Loss per cofilmon share from cumulative effect
of accounting change
Total earnings per common share, diluted
NOTE 23. STOCK COMPENSATION PLANS
Avista Corp.
$0.67
o.o2
0.69
(0.09)
$0.60
$0.67
0.02
0.69
(0.09)
s0.60
$ l.2l
(l.00)
0.2t
$021
$1.20
(l.00)
0.20
$020
$1.69
(0.20)
t.49
-i$r-49
$ 1.67
(0.20)
t.47
------:$Llz
In 1998, the Company adopted and shareholders approved an incentive compensation plan, the Long-Term Incentive Plan (1998
Plan). Under the 1998 Plan, certain key employees, directors and officers of the Company and its subsidiaries may be granted tto.f
options, stock appreciation rights, stock awards (including restricted stock) and other stock-based awards and dividend equivalerl
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. Beginning in 2000, non-employee directors begaa
receiving options under this plan. I
In 2000, the Company adopted a Non-Officer Employee Long-Term Incentive Plan (2000 Plan), which was not required to b1
approved by shareholders. The provisions of the 2000 Plan are essentially the same as those under the 1998 Plan, except for th!
exclusion of directors and executive officers of the Company. The Company has available a maximum of 2.5 million shares of itl
common stock for grant under the 2000 Plan.
H".:""#:ilJ,";:ffi::::lTI:fi:*"ff:;i:'l::J:',['"ffii;"fffffi:I:?H:[:[:Tl;"';:,:Ti!ffi::;]'il::::ilf
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 EL
the date of grant, there was no compensation expense recorded by the Company. SFAS No. 123, "Accounting for Stock-Basf
FERC FORM NO.2 12-88) Paoe 123.2'l
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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 3 I , 2002, there were 2.3 million shares available for future stock 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:
2-OO) ?OOr 2000
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04t3012003
Year of Report
Dec 31, 2002
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
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:
Risk-free interest rate
Expected life, in years
Expected volatility
Expected dividend yield
2,440,475 1,843,900 t,360,325569,800 781,900 623,200- (2.7s0) (44,e7s)(325.925) /r82.s7s) (94.6s0)
2 84359 2.40-q5 r3E-900_
1J92J15 __883.075 _581-02L
$ 10.51
$19.88
$15.69
$18.28
$12.43
$17.96
$19.22
$17.49
$19.28
$23.03
$18.53
$18. l5
$19.81
$18.72
$t2.02
Information with respect to options outstanding and options exercisable as of December 31,2002 was as follows:
Options OutstandingWeighted Weighted
Average Average
Number Exercise Remaining
s 3.43 S 5.54
3.25vo-4.967o 4.05Vo-5.l3Vo 5.87Vo-6.87Vo77747.l3%o 6O.8OVo 58.47Vo4.6l%o 3.93Vo 2.34Vo
Options Exercisable
Weighted
Average
Number Exercise
Price
Range of
Exercise Prices ofShares Price Life (in vears) ofShares
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$10.17-$l r.68
$l1.69-$14.6r
$14.62-$17.53
$ 17.54-$20.45
$20.46-$23.37
$26.29-$.29.22
Total
542,800
694.600
587,600
329,875
494,275
35.2N
2.684*i54
$10.25
l 1.80
17.16
18.75
22.56
27.t9
$r5.69
9.8
8.9
6.7
5.5
7.5
5.5
7.9
ni,oso
405,275
3t6,775
267,475
29.600
].92J15
$-
I 1.80
t7.26
18.70
22.58
26.95
$ 18.28
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I FERC FORM NO.2 123.22
I
Name of Respondent
Avista Coro.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
':::i,:::1
NOTES TO FINANCIAL STATEMENTS (Continued)
Non-Director Stock PlanEmployee
In 1996, the Company adopted and shareholders approved the Non-Employee Director Stock Plan (1996 Director Plan). Under tla
1996 Director Plan, directors who are not employees of the Company receive two-thirds of their annual retainer in Avista Cor!
common stock. The Company acquires the common stock in the open market. The Company has available a maximum of 150,0f
shares of its common stock under the 1996 Director Plan and there were 85,937 shares available for future compensation to
non-employee directors as of Decemb er 31,2002.
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NOTE 24. COMMITMENTS AND CONTINGENCIES
lxf."#fi;'1.'iJ1"j';;:1;:,'i""..i;;"frI'::;lT::11Iil:#l' *lilt'l:'l:::,I:i:l1,I;1,,T:,:ilfi":i;ffiiJ;,*1J1't
consolidated financial condition of the Company, but could be material to results of operations or cash flows for a particular quarter oL
annual period. No assurance can be given, however, as to the ultimate outcome with respect to any particular issue. I
Federal Energy Regulatory Commission Inquiry
In February 2O02, theFERC issued an order commencing a fact-finding investigation of potential manipulation of electric and naturf
gas prices in the California energy markets by multiple companies. On May 8,zl}z,the FERC requested data and information wilF
respect to certain trading strategies that companies may have engaged in. Specifically, the requests inquired as to whether or not tE
Company engaged in certain trading strategies that were the same or similar to those used by Enron Corporation (Enron) and i!
affiliates. These requests were made to all sellers of wholesale electricity and/or ancillary services in the Western InterconnectiCl
during 2000 and 2001, including Avista Corp. and Avista Energy. On May 22,2002, Avista Corp. and Avista Energy filed their
responses to this request indicating that they had engaged in sound business practices in accordance with established market rules, arf
that no information was evident from business records or employee interviews that would indicate that Avista Corp. or Avista Energ!
or its employees, were knowingly engaged in these trading strategies, or any variant of the strategies.
On June 4,2llz,the FERC issued an additional order to Avista Corp. and three other companies requiring these companies to sfro!
cause within ten days as to why their authority to charge market-based rates should not be revoked. In this order, the FERC allegeF
that Avista Corp. failed to respond fully and accurately to the data request made on May 8, 2OO2. On June 14, 2002, Avista Corp.
provided additional information in response to the June 4, 2OO2 FERC order to establish that its initial response was aRRroRriate af
adequate.
On August 13,2002, the FERC issued an order to initiate an investigation into possible misconduct by Avista Corp. and Avista Energa
and two affiliates of Enron: Enron Power Marketing, Inc. (EPMI) and Portland General Electric Corporation (PGE). The purpose fl
the investigation was to determine whether Avista Corp. and Avista Energy engaged in or facilitated certain Enron trading strategieF
whether Avista Corp.'s or Avista Energy's role in transactions with EPMI and PGE resulted in the circumvention of a code of conduct
governing transactions with affiliates, and the imposition of any appropriate remedies such as refunds and revocation of market-basfl
rates. The investigation also explored whether the companies provided all relevant information in response to the May 8, 2002 da!
request.
In December 2002, theFERC staff, Avista Corp. and Avista Energy filed a joint motion announcing that the parties traue reached Iagreement in principle. In the joint motion, the FERC Trial Staff states that its investigation found no evidence that: (l) any executiveF
or employees of Avista Utilities or Avista Energy knowingly engaged in or facilitated any improper trading strategy: (2) Avist4
Utilities or Avista Energy engaged in any efforts to manipulate the western energy markets during 2000 and 2001; (3) Avista Utilitil
or Avista Energy withheld relevant information from the Commission's inquiry into the western energy markets for 2000 and 2001. I
In December 2002,the FERC's administrative law judge approved the joint motion, suspending the proceduralschedule in the FERfi
investigation regarding Avista Corp. and Avista Energy. In January 2003, the FERC staff, Avista Corp. and Avista Energy filed!
completed agreement in resolution of the proceeding with the administrative law judge. The parties requested that the administrativE
law judge certify the agreement and forward it to the FERC for acceptance following a 30-day comment period.I
FERC FORM NO.2 12-88) Paoe 123.23
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t3012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
On February 19, 2003 the City of Tacoma (Tacoma) and California Parties (the Office of the Attorney General, the CPUC, and the
California Electricity Oversight Board, filing jointly) filed comments in opposition to the agreement in resolution between the FERC
stafi Avista Corp. and Avista Energy. PGE filed comments supporting the agreement in resolution, but took exception to how certain
transactions were reported. On March 3, 2003, Avista Corp. and Avista Energy filed joint reply comments in response to the concerns
raised by Tacoma, the California Parties, and PGE. The FERC Trial Staff filed separate reply comments supporting the agreement in
resolution and responding to Tacoma, the California Parties and PGE. The reply comments of Avista Corp., Avista Energy and the
FERC Staff also reiterated the request that the administrative law judge certify the agreement in resolution and forward it to the FERC
for approval.
U.S. Commodity Futures Trading Commission (CFTC) Subpoena
Beginning on June 17, 2002, the CFTC has issued several subpoenas directing Avista Corp. to produce certain materials. make
employees available for questions and to respond to certain interrogatories. This relates to electricity and natural gas trades by Avista
Corp. and any of its subsidiaries (including Avista Energy), involving "round trip trades," "wash trades," or "selUbuyback trades" and
price reporting. The CFTC subpoena applies to both Avista Corp. and Avista Energy. The Company is cooperating with the CFTC
and is providing the information requested by the CFTC.
Class Action Securities Litigation
On September 2'7,2002, Ronald R. Wambolt filed a class action lawsuit in the United States District Court for the Eastern District of
Washington against Avista Corp., Thomas M. Matthews, the former Chairman of the Board, President and Chief Executive Officer of
the Company, Gary G. Ely, the current Chairman of the Board, President and Chief Executive Officer of the Company, and Jon E.
Eliassen, the former Senior Vice President and Chief Financial Officer of the Company. On October 9,2002, Gail West filed a similar
class action lawsuit in the same court against the same parties. On November 7, 2002, Michael Atlas filed a similar class action
lawsuit in the same court against the same parties. On November 21, 2N2, Peter Arnone filed a similar class action lawsuit in the
same court against the same parties. In their complaints, the plaintiffs assert violations of the federal securities laws in connection with
alleged misstatements and omissions of material fact pursuant to Sections l0(b) and 20(a) of the Securities Exchange Act of 1934. ln
particular, the plaintiffs allege that the Company failed to disclose certain business practices that Avista Corp. was allegedly engaging
in with EPMI and PGE. For further information see "Federal Energy Regulatory Commission Inquiry" above. The plaintiffs assert
that such alleged misstatements and omissions have occurred in the Company's filings with the Securities and Exchange Commission
and other information made publicly available by the Company, including press releases. The class action lawsuits assert claims on
behalf of all persons who purchased, converted, exchanged or otherwise acquired the Company's common stock during the period
between November 23, 1999 and August 13,2N2. On February 3,2003, the court issued an order consolidating the complaints under
the name "In re Avista Corp. Securities Litigation," and on February 7,2003 appointed the lead plaintiff and co-lead counsel. The
Company intends to file a motion to dismiss these consolidated complaints and vigorously defend against these lawsuits.
California Energr Markets
In April 2002, several subsidiaries of Reliant Energy, Inc. (Reliant) and Duke Energy Corporation (Duke) filed cross-complaints
against Avista Energy and numerous other participants in the California energy markets. The cross-complaints are for indemnification
for any liability which may arise from original complaints filed against Reliant and Duke with respect to charges of unlawful and unfair
business practices in the California energy markets under California law. Avista Energy has filed motions to dismiss the
cross-complaints. In the meantime, the U.S. District Court has remanded the case to California State Court, which remand is itself the
subject of an appeal to the United States Court of Appeals for the Ninth Circuit.
In March 2002, the Attorney General of the State of California (California AG) filed a complaint with the FERC against certain
specific companies (not including Avista Corp. or its subsidiaries) and "all other public utility sellers" in California. The complaint
alleges that sellers with market-based rates have violated their tariffs by not filing with the FERC transaction-specific information
about all of their sales and purchases at market-based rates. As a result, all past sales should be subject to refund if found to be above
just and reasonable levels. In May 2O02, the FERC issued an order denying the claim to issue refunds. In July 2002,the California
AG requested a rehearing on the FERC order, which request was denied in September 2002. The California AG filed a Petition for
Review of the FERC's decision with the United States Court of Appeals for the Ninth Circuit.
FERC FORM NO.2 1 123.24I
Date of Report
(Mo, Da, Yr)
0413012003
Name of Respondent This Report is:
(1) X An Original
NOTES TO FINANCIAL STATEMENTS
In April 2002, the California AG provided notice of intent to file a complaint against Avista Energy in the California State Court on
behalf of the State of California. As of the filing date of this report, the California AG has not filed the threatened complaint againa
Avista Energy. Complaints have been filed against approximately a dozen other companies, many of which have filed motions f
dismiss based upon federal preemption and primary jurisdiction arguments. The threatened complaint alleges that Avista Energy faile?
to file rates and changes to rates charged for each sale of wholesale electricity in California markets with the FERC as required by
Federal Power Act regulations and FERC orders. The threatened complaint asserts that each violation of taw, regulation und otae. I
an unlawful and unfair business practice under the California Business and Professions Code, subject to a penalty of $2,500 pf
violation. The threatened complaint further alleges that certain rates charged for wholesale electricity sold in California exceeded a
just and reasonable rate. As such, the threatened complaint alleges that these rates violate the Federal Power Act and are also 1
violation under the California Business and Professions Code, subject to penalty. A significant portion of the transactions involved I
this threatened complaint are also the subject of FERC proceedings to examine potential refunds and in most cases are transactions fo?
which Avista Energy is still owed payment.
Washington Consumer Class Action Lawsuit t
On December23,2002, Nick A. Symonds filed a class action lawsuit in the United States District Court for the Western District ql
Washington against numerous purchasers and sellers of wholesale electricity and natural gas in the western United States, includir!
Avista Utilities. The class action lawsuit asserts claims on behalf of all persons and businesses residing in Washington who wefil
purchasers of electric and/or natural gas energy from any period beginning in January 2000 to the present. The complaint alleges thEl
due to the deregulation of the California energy market, the defendants were able to unlawfully manipulate the wholesale enerl
market resulting in supply shortages and high energy prices across the western United States, including Washington. The complaif
further alleges that high energy prices have resulted in profits for the defendants at the expense of rate-paying consumers in
Washington. The complaint seeks treble damages, attorney fees and costs, and an order that defendants immediately remedy t[
alleged unlawful practices relating to the purchase and sale of wholesale energy that affects rate-paying consumers in Washington. Tt!
complaint further seeks an order enjoining the defendants from continuing any alleged unlawful practices relating to the purchase and
sale of wholesale energy that affects rate-paying consumers in Washington. The Company intends to file a motion to dismiss thjl
complaint and vigorously defend against this lawsuit. I
Enron Corporation
On Decembe r 2,2O0l,Enron and certain of its affiliates filed for protection under chapter 1l of the United States Bankrupt"y Coa!
Both Avista Corp. and Avista Energy had done considerable business and had short-term and long-term contracts with Enron affiliates.
The bankruptcy filing constituted an event of default under contracts between Avista Corp. and Avista Energy, respectively, anIL
certain Enron affiliates, namely, EPMI, Enron North America Company (ENA) and Enron Canada Corp. (ECC), that are guaranteed I
Enron. As a result, Avista Corp. and Avista Energy terminated all of these contracts and suspended trading activities with all Enrot
affiliates, including the final position that was terminated and a settlement agreement reached between Avista Corp. and EPMI in
October 2002.
As of December 31,2N2, Avista Energy had net accounts receivable of $13.9 million from EPMI and ENA. Avista Corp.'s and
Avista Energy's contracts with each Enron affiliate provide that, upon termination, the net settlement of accounts receivable arfl
accounts payable with such entity will be netted against the net mark-to-market value of the terminated forward contracts with sul
entity. It is estimated that for Avista Energy, netting the mark-to-market liability against the defaulted net accounts receivable wlF
result in no significant loss due to non-collection from the Enron affiliates. The Company further estimates that the net mark-to-market
liability to Enron affiliates with respect to the terminated forward contracts not yet settled (Avista Energy with EPMI and ENA) tak{
together, exceeds total net accounts receivable from these entities by less than $15 million. I
In October 2002, Avista Corp. settled its remaining contract with EPMI with the approval of the U.S. Bankruptcy Court. In additio5
Avista Corp. reached settlement agreements on all terminated positions with ECC and ENA. Avista Energy reached a settlemel
agreement on its terminated ECC positions. In each instance, the settlement agreements reached satisfy all of the Avista entity=
obligations and exposure to such Enron entity. Confidentiality provisions contained in the settlement agreements protect disclosure of
the specific details of each settlement. None of the settlements individually, nor all of the settlements collectively, have had or af
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FERC FORM NO.2
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Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o413012003
Year of Report
Dec 31,2002
NOTES TO FINANCIAL STATEMENTS (Continued)
expected to have a material adverse impact on Avista Corp.'s or Avista Energy's financial condition, results of operations or cash
flows. All additional claims by the Enron entities for amounts that Avista Energy might owe with respect to the terminated forward
contracts would be subject to any defenses and counterclaims which Avista Energy may have. Any residual obligation by Avista
Energy for termination payments is not expected to have a material impact on the Company's financial condition, results of operations
or cash flows. The Company continues to negotiate the settlement of other contracts with Enron affiliates.
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 Energy believes these assumptions are
reasonable, they are subject to change and ultimately could be challenged by the Enron entities or their bankruptcy trustees, except as
to those terminated forward contracts that have been fully settled by agreements among the parties as described above. 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, results of operations or cash flows of Avista Energy.
National Energy Production Corporation (NEPCO), a wholly owned subsidiary of Enron, was the contractor responsible for the
engineering, procurement and construction of Coyote Springs 2. Avista Corp. owns 50 percent of Coyote Springs 2. NEPCO was not
included in the initial bankruptcy filings made by Enron and its affiliates in December 2001. NEPCO subsequently filed for bankuptcy
on May 20,2002. However, Enron guaranteed NEPCO's obligations, and the bankruptcy filing by Enron was an event of default
under the Coyote Springs 2 construction contract. As a result of this default and other defaults under the contract, NEPCO was
removed as contractor for the project on April 15,2@2.
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 facilitating a long-term capacity contract between PGE and Avista Corp. The 1998
transaction resulted in the Company receiving $143.4 million in cash proceeds that was originally recorded as deferred revenue.
Spokane Energy sells the related capacity to PGE. Subsequently, PGE became a subsidiary of Enron that has not been included in the
bankuptcy filing to date. EPMI assisted in setting up the transaction 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 for a loan (balance of $125.8 million as of December 31, 2OO2) 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. EPMI defaulted on two payments to Avista Corp. prior to filing for bankruptcy.
Such payments were accounted for and included in the settlement agreement reached between Avista Corp. and EPMI in October
2002.
Montana Hydroelectric Security Act Initiative
In the November 5,2002 General Election, Montana voters rejected an initiative that would have created a public agency to study
whether it would benefit the people of Montana to have the state own and operate certain hydroelectric generating facilities located
within the state. The initiative would have authorized the new public agency to acquire, through a negotiated purchase or an
acquisition at fair market value through a condemnation proceeding, any or all hydroelectric facilities larger than 5 MW within the
state. 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.
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 indicated 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,
FERC FORM NO.2 1 123.26I
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale\ A Besubmission
Date of Report
(Mo, Da, Yr)
o4130t2003
':::i,Hl
NOTES TO FINANCIAL STATEMENTS (Continued)
ndtoi iate remedial measures. The to the DOE acknowledeine its listine as a PLPmplement appropriate Company responded knowledging ng
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 another PLP, Burlington Northem & Santa Fe Railway Co. IBNSD o!
March 13, 2000 that provided for the completion of a remedial investigation and a feasibility study. The work to be performed undeF
the Agreed Order includes three major technical parts: completion of the remedial investigation; performance of a focused feasibilitl
stuayf and implementation of an inierim groundwater monitoring plan. During the second quarter of 2000, the Company receive!
comments from the DOE on its initial remedial investigation, then submitted another draft of the remedial investigation, which waf
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 issuel
by the DOE on August 10, 2001. On September 10, 2001, the DOE issued an initial draft Consent Decree for the PLPs to review!
During the first quarter of 2002, the Company and BNSF signed a cost sharing agreement. On September 11,2002, the Company-
BNSF and the DOE finalized the Consent Decree to implement the CAP. The third PLP has indicated it will not sign the ConsenL
Decree. It is currently estimated that the Company's share of the costs will be less than $1.0 million. The Engineering and Desig!
Report for the CAP was submitted to the DOE in January 2003. If approved by the DOE, it is anticipated that the CAP will b!
implemented in mid-2003. Negotiations are continuing with the third PLP with respect to the logistics of the CAP.
Lake Coeur d'Alene I
In July 1998, the United States District Court for the District of Idaho issued its finding that the Coeur d'Alene Tribe of Idaho owrg
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'Alerfl
Reservation. This action was brought by the United States on behalf of the Tribe against the State of Idaho. While the Company is nil
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 Uy t}|
United States Court of Appeals for the Ninth Circuit. The United States Supreme Court affirmed this decision in June 2001. This wi!
result in the Company being liable to the Coeur d'Alene Tribe of Idaho for payments for use of reservation lands under Section l0(e)
of the Federal Power Act.
Spokane River Relicensing I
The Company operates six hydroelectric plants on the Spokane River, and five of these (Long Lake, Nine Mile, Upper Falls. Monrol
Street and Post Falls) are under one FERC license and referred to herein as the Spokane River Project. The sixth, Linle Falls, il
operated under separate Congressional authority and is not licensed by the FERC. The license for the Spokane River Project expires
in August 2N7;the Company filed a Notice of Intent to Relicense on July 29,2002. The formal consultation process involvin5
planning and information gathering with stakeholder groups is underway. The Company's goal is to develop with the stakeholders I
comprehensive and cost-effective settlement agreement to be filed as part of the Company's license application to the FERC in Julf
2005.
Clark Fork Settlement Agreement
The issue of high levels of dissolved gas which exceed Idaho and federal water quality standards downstream of the Cabinet Gorgl
Hydroelectric Generating Project (Cabinet Gorge) during spill periods continues to be studied, as agreed to in the Clark For!
Settlement Agreement and incorporated into the renewed FERC license. To date, intensive biological studies in the lower Clark ForF
River and Lake Pend Oreille have documented minimal biological effects of high dissolved gas levels on free ranging fish. Under the
terms of the Clark Fork Settlement Agreement, the Company developed an abatement and mitigation strategy during 2002 with th!
other signatories to the agreement. In December 2002, the Company submitted its plan for review and approval by the othil
signatories as well as the FERC. The structural alternative proposed in the plan provides for the modification of the two exrstlng
diversion tunnels built when Cabinet Gorge was originally constructed. The costs of modifications to the first tunnel are currentla
estimated to be $37 million (including AFUDC and inflation) and would be incurred between 2004 and 2009. The second tunnl
would be modified only after evaluation of the performance of the first tunnel and such modifications would conunence no later thall-
l0 years following the completion of the first tunnel. It is currently estimated that the costs to modify the second tunnel would be $23
million (including AFUDC and inflation). As part of the plan, the Company will also provide $0.5 million annually commencin8
|
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FERC FORM NO.2 12-88) 'Paae 123.27
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04130/2003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
early as 2004, as mitigation for aquatic resources that might be adversely affected by high dissolved gas levels. Mitigation funds will
continue until the modification of the second tunnel commences or if the second tunnel is not modified to an agreed upon point in time
commensurate with the biological effects of high dissolved gas levels. The Company will seek regulatory recovery of the costs for the
modification of Cabinet Gorge and the mitigation payments.
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, determining the applications of funds toward continuing fish passage efforts or other population enhancement
measures.
Other Contingencies
In the normal course of business, the Company has various other legal claims and contingent matters outstanding. The Company
believes that any ultimate liability arising from these actions will not have a material adverse impact on the Company's financial
condition, results ofoperations or cash flows.
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 on the Company.
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 energy production 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, 2OO2,the Company's collective bargaining agreement with the International Brotherhood of Electrical Workers
represented approximately 48 percent of all Avista Utilities employees. The current agreement with the local union representing the
majority of the bargaining unit employees expires on March 25,2005. A local agreement in the South Lake Tahoe area, which
represents 5 employees, also expires on March 25,2W5. Three other labor agreements in Oregon, which cover approximately 55
employees, expire on March 31,2003. Negotiations are currently ongoing with respect to the agreements that expire on March 31.
2003.
NOTE 25. DISPOSITION OF POWER PLANT
In May 2000, the owners of Centralia 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 and Comprehensive Income for the year ended December 31,2000 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 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.
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FERC FORM NO.2 123.28t
Name of Respondent This Report is:
(1) X An Original
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS
NOTE 26. SELECTED QUARTERLY FINANCIAL DATA (Unaudited)
The Company's energy operations are significantly affected by weather conditions. Consequently, there can be large variances
revenues, expenses and net income between quarters based on seasonal factors such as temperatures and streamflow conditions.
summary of quarterly operations (in thousands, except per share amounts) for 2002 and 2001 follows:
Three Months Ended
March
JI
June
10
September Decemberio 3t
2002
Operating revenues
Operating expenses
Income from operations
Income (loss) from continuing operations
Income (loss) from discontinued operations
Net income before cumulative effect
of accounting change
Cumulative effect of accounting change
Net income (loss)
Income (loss) available for common stock
Outstanding common stock:
Weighted average
End of period
Earnings (loss) per share, basic and diluted:
Earnings (loss) per share from continuing operations
Earnings (loss) per share from discontinued operations
Earnings (loss per share before cumulative effect
of accounting change
Cumulative effect of accounting change
Total earnings (loss) per share, basic
Dividends paid per common share
Trading price range per common share:
High
Low
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
Earnings (loss) per share, basic and diluted:
Earnings (loss) per share from continuing operations
Loss per share from discontinued operations
Total earnings (loss) per share, basic
$306,979
260,47 t
46,508
15,520
(272)
15,248
(4,148)
I I,100
$t0,492
47 ,671
47,737
$0.32
(0.01)
0.31
(0.09)
$a22
$0.12
$16.47
$13.00
$473,8s5
408,408
65,M7
32,t21
(2,7 t8)
29,403
$28,795
47,237
47,266
$0.67
(0.06)
$0.61
$2t8362
180,627
37,735
9,331
1,014
10,345
10,345
$9,737
47,774
47,830
$0.18
o.o2
0.20
------:
$0.20
$ol2
$16.60
$l1.00
$37 l,l 35
314,585
56,550
25,980
(3,2s5)
22,725
$22,1t7
47,372
47,465
$0.s4
(0.07)
s0.47
$ 189,830
169,453
20,377
(1,082)
(s33)
(1,615)
(1,61s)
$(2,223)
47.866
47,930
$(0.04)
(0.01)
(0.0s)
-.-----.:
u005)
$0.12
$13.89
$r0.16
$232,1t3
t98,494
33,619
6,lll
(38,42t)
(32,310)
$(32,918)
47,486
47,537
$0.12
(0.81)
$rc-6D
s265.275
225,208
40,067
10,541
936
1t,477
11.477
$10,899
47,978
48,044
$0.21
o.o2
0.23
----:s0.23
$0.12-
$12.10
$8.7s
$318,210
304,534
13,676
(4,607)
(3,Oss)
(7.662)
$(8,270)
47,569
47,633
$(0.11)
(0.06)
$IOr7)
,:
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FERC FORM NO.2 123.29
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31, 2002
NOTES TO FINANCIAL STATEMENTS (Continued)
Dividends paid per common share
Trading price range per common share:
High
[.ow
$0. l2$0.1 2 $0.12
$19.98
$ 13.40
$0. l2
$14.60
$10.60
$20.63 $23.e7$1s.60 s16.27
Name oI Hesponoenl
Avista Corp.
tnts Heoon ts:(1) EAn Original
12) f-lA Resubmission
Date ot Report(Mo, Da, Yr)
o413012003
Year ol Report
Dec. 3't, 2OO2
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION. AMORTIZATION AND DEPLETION
Jne
No.
Classilication
(a)
Total
(b)
Electric
(c)
1 Utility Plant
2 ln Service
3 Plant in Service (Classified)2,343,518,53!1,805,835,33(
4 Property Under Capital Leases 712,328
5 Plant Purchased or Sold
6 Completed Construction not Classified
7 Experimental Plant Unclassilied
8 Total (3 thru 7)2,344,230,85t 1,805,835,33€
c Leased to Others
10 Held for Future Use
11 Construction Work in Progress 17,581 ,11 14,572.90t
12 Acquisition Adiustments 26,580,07i
13 Total Utility Plant (8 thru 12)2,388,392,05(1,820,408,24,
't4 Accum Prov for Depr, Amort, & Depl 824,688,26S 607,504,87t
15 Net Utility Plant (13less '14)1,563,703,781 1,212,903,36(
16 Detail of Accum Prov tor Depr, Amort & Depl
17 ln Service:
18 Depreciation 772,278,93(603,295,68(
19 Amort & Depl of Producing Nat Gas Land/Land Right
20 Amort of Underground Storage Land/Land Rights
21 Amort of Other Utility Plant 5,732,382 4,209,192
22 Total ln Service (18 thru 21)778,011,312 607,504.87t
23 Leased to Others
24 Depreciation 31 ,676,74i
25 Amortization and Depletion
26 fotal Leased to Others (24 &25)31 ,676,74i
27 Held for Future Use
28 Depreciation
29 Amortization
30 fotal Held for Future Use (28 & 29)
31 Abandonment ol Leases (Natural Gas)
32 Amort of Plant Acquisition Adj 15,000,21r
33 Total Accum Prov (equals '14) (22,26,30,31 ,32)824,688,269 607,504.87t
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Name of Respondent
Avista Corp.
This Reoort ls:(1) fiRn Originat(2) 1-lA Resubmission
Date of Reoort(Mo, Da, Yi)
0413012003
Year of Report
Dec.31, 2002
SUMMAHY OF U I ILI I Y PLAN I ANU AUUUMULA I EU PHOVISIONS
FOB DEPRECIATION. AMORTIZATION AND DEPLETION
Gas
(d)
Other (Specify)
(e)
Other (Specify)
(t)
Other (Specify)
(o)
Common
(h)
Line
No.
464,916,43;72,766,761 3
712,321 4
5
6
7
464,916,43;73,479,081 8
o
10
2,240,88(767,32i 11
26,580,07i 12
493,737,39(74,246,40i 13
185,506,64t 31 ,676,741 14
308,230,751 42,569.66,1
17
168,983.24r 18
1.523.19(2'l
170,506,43r 22
31,676,74i 24
25
31,676,74i 26
28
29
30
15,000,21r 32
185,506,64t 31,676,744 33
FERC FORM NO.2 (ED.12-89)Page 201
Name of Respondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, YQ
April 30,2003
Year Ending
Dec.31,2002
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 it 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 Service (C/assffred) , this distributions of prior year reported in column (b). Likewise, if the
page and the next include Account 102, Gas Plant Purchased or respondent has a signilicant amount of plant retirements which have
So/d, Account 103, Experimental Gas Plant Unclassilied, and not been classified to primary accounts at the end of the year, include in
Account 106, Completed Construction Not Classified-Gas.column (d) a tentative distribution of such retirements, on an estimated
3. lnclude in column (c) and (d), as appropriate, corrections of basis, with appropriate contra entry to the account for accumulated
additions and retirements for the cunent or preceding year. depreciation provision. lnclude also in column (d) reversals of tentative
4. Enclose in parenthesis credit adjustments ol plant accounts to dislributions of prior year's unclassified retirements. Attach
indicate the negative effect of such accounts.supplemental statement showing the account distributions of these
5. Classily Account 106 according to prescribed accounts, on an tentative classifications in columns (c) and (d).
Line
No.
Account
(a)
Balance at
Beginning of Year
(h)
Additions
(c)
1
2
.J
4
5
b
7
8
9
10
11
12
13
't4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3'l
32
33
INTANGIBLE PLANT
301 Oroanization 0.00 0.00
302 Franchises and Consents 1,592.55 0.00
303 Miscellaneous lntanoible Plant 3.063.451.35 849.82
TOTAL lntanoible Plant (Enter Total of lines 2 thru 4)3,065.043.90 849.82
PRODUCTION PLANT
Nalural Gas Production and Gatherinq Plant
325.1 Producino l-ands 0.00 0.00
325.2 Producinq Leaseholds 0.00 0.00
325.3 Gas Riohts 0.00 0.00
325.4 Riqhls-of-Wav 0.00 0.00
325.5 Other Land and Land Riohts 0.00 0.00
326 Gas Well Struclures 0.00 0.00
327 Field Compressor Station Slructures 0.00 0.00
328 Field Measurino and Reoulatino Slation Eouiomenl 0.00 0.00
329 OtherStructures 0.00 0.00
330 Producinq Gas Wells-Well Construction 0.00 0.00
331 Producino Gas Wells-Well Eouioment 0.00 0.00
332 Field Lines 0.00 0.00
333 Field Comoressor Station Eouioment 0.00 0.00
334 Field Measurinq and Requlatino Station Eouioment 0.00 0.00
335 Drillino and Cleanino Eouioment 0.00 0.00
336 Purification Equipment 0.00 0.00
337 Other Eouioment 0.00 0.00
338 Unsuccessful Exploration and Development Costs 0.00 0.00
IOTAL Production and Galherinq Plant (Enter Total ol lines 8 thru 25)0.00 0.00
PRODUCTS EXTRACTION PLANT
340 Land and Land Hiqhts 0.00 0.00
341 Structures and lmprovements 0.00 0.00
342 Extraction and Hefininq Equioment 0.00 0.00
343 Pipe Lines 0.00 0.00
344 Extracted Producls Sloraqe Equiomenl 0.00 0.00
345 ComoressorEouiomenl 0.00 0.00
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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:
IX]An Original
t lA Resubmission
Date of Fleport
(Mo, Da, Y)
April 30,2003
Year Ending
Dec.31,2002
GAS PLANT lN SERVICE (ACCOUNTS 101. 102. 103. AND 106) (Continued)
including the reversals ol the prior years tentative account and show in column (f) only the oflset to the debits or credits to
distributions of these amounts. Careful observance ol the primary account classifications.
above instructions and the texts of Account 1 01 and 106 will 7. For Account 399, state the nature and use ol plant included in this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementary
plant actually in service at end of year. statement showing subaccount classification ol 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 (l) 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 journal entries
showing the clearance of Accounl 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at End of Year
Io)
Line
No.
1
2
3
4
5
o
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
JJ
0.00 0.00 0.00 0.00
0.00 0.00 0.00 1,592.55
2,096.50 0.00 0.00 3,062,204.67
2.096.50 0.00 0.00 3.063,797.22
$i;f i&"Sffiffiffi.S*ffiffisHiKiSW$ffiffiSffiffi ::1..- .:.:.:.: ,' 'il' i1'q1j;";gj:.r*.:,r.,, ,..,:, ;' ... ;l'l:'. i.4 ' r" l
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
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
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
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.
This report is:
lXl An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Y0
April30, 2003
Year Ending
Dec. 31, 2002
GAS PLANT lN SERVICE (ACCOUNTS 101. 102. 103, AND 106) (Continued)
Line
No.
Account
fal
Balance at
Beginning of Year
(b\
Additions
(c)
34
35
JO
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
346 Gas Measurinq and Requlatino Equioment 0.00 0.00
347 Other Eouioment 0.00 0.00
TOTAL Products Extraction Plant (Enter Total of 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 Supolementarv Statement)218.373.93 11.352.96
TOTAL Production Plant (Enter Total of lines 37 and 38)218,373.93 11,352.96
NATURAL GAS STORAGE AND PROCESSING PLANT
Underqround Storaoe Plant
350.1 Land 394,113.21 18,498.18
350.2 Fliqhts-of-Wav 23.874.03 0.00
351 Structures and lmprovements 1.061.767.12 0.00
352 Wells 5.s28.478.68 36.898.36
352.1 Storaqe Leaseholds and Riohts 254,354.23 0.00
352.2 Reservoirs 't47.145.04 s6,185.43
352.3 Non-recoverable Natural Gas 6.121,926.03 0.00
353 Lines 799.012.40 24.410.19
354 Comoressor Station Eouioment 1 ,882,178.85 362.35
355 Measurinq and Requlatinq Eouipment 153.964.74 0.00
356 Purification Eouioment 403.712.62 0.00
357 Other Eouioment 1 .614.289.80 18,169.25
TOTAL Underqround Storaqe Plant (Enter Total of lines 42 thru 53)18.384.816.75 154,523.76
Other Storaoe Plant
360 Land and Land Riqhts 0.00 0.00
36'l Slructures and lmorovements 0.00 0.00
362 Gas Holders 0.00 0.00
363 PurificationEouioment 0.00 0.00
363.1 Liquefaction Eouioment 0.00 0.00
363.2 Vaoorizino Eouioment 0.00 0.00
363.3 Compressor Equioment 0.00 0.00
363.4 Measurino and Reoulatino Eouioment 0.00 0.00
363.5 Other Equioment 0.00 0.00
TOTAL Other Sloraoe Plant (Enter Total of lines 56 thru 64)0.00 0.00
Base Load Liquefied Natural Gas Terminalino and Processino Plant
364.'l Land and Land Riohts 0.00 0.00
364.2 Structures and lmprovements 0.00 0.00
364.3 LNG Processino Terminal Eouioment 0.00 0.00
364.4 LNG Transporation Equipment 0.00 0.00
364.5 Measurino and Reoulatino Eouioment 0.00 0.00
364.6 Comoressor Station Equipment 0.00 0.00
364.7 Communications Eouioment 0.00 0.00
364.8 Other Eouioment 0.00 0.00
TOTAL Base Load Lio Nat'l Gas. Terminal and Processino Plant (lines 67-74 0.00 0.00
TOTAL Nat'lGas Storaqe and Processino Plant fiotalof lines 54.65 and 75 18,384,816.75 154.523.76
TRANSMISSION PLANT
365.1 Land and Land Riqhts 0.00 0.00
365.2 Riohts-of-Wav 0.00 0.00
366 Structures and lmorovements 0.00 0.00
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IFERC 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, Y)
April30,2003
Year Ending
Dec. 31, 2002
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at End of Year
/o\
Line
No.
0.00 0.00 0,00 0.00 34
35
JO
37
38
eo
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
4q
60
61
oz
OJ
64
65
bb
67
68
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
127.795.69 0.00 (67,428.21',34.502.99
127,795.69 0.00 G7.428.21 34,502.99
.W-Wffiffi
0.00 0.00 0.00 412.61 1 .39
0.00 0.00 0.00 23,874.O3
0.00 0.00 0.00 1 .061.767.12
0.00 0.00 0.00 5,565,377.04
0.00 0.00 0.00 254,354.23
0.00 0.00 0.00 203.330.47
0.00 0.00 0.00 6,121,926.03
0.00 0.00 0.00 823.422.59
0.00 0.00 0.00 1.882.541.20
0.00 0.00 0.00 153.964.74
0.00 0.00 0.00 403,712.62
0.00 0.00 0.00 1.632,459.05
0.00 0.00 0.00 18,539,340.51
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
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
&-;q'$1 , *S"i .sS g-,$@S 1,, ,, iffr,;pu #FJ*fu:;, ,.*s i&$lrff illi$liLi$1ti*11,11.'ill.l -*1
0.00 0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 I 0.00 0.00 69
70
71
72
73
74
0.00 0.00 I 0.00 0.00
0.00 I 0.00 I 0.00 0.00
0.00 |0.00 I 0.00 0.00
0.00 I 0.00 I 0.00 0.00
0.00 I 0.00 I 0.00 0.00
0.00 |0.00 I 0.00 0.00 75
76
77
78
0.00 I 0.00 I 0.00 18.s39.340.51
;f:i! S;:ffiriffiW$.,\Wiffi'&ryWffi, lliili\.Yffi.ql$ffi:ffi$r" .1Wlh ll$rtffi lH,$illt!*-.ifi illHs,0.ffi 0.00 0.00
0.00 | o.oo 0.00 0.00 '70
800.00 I 0.00 I 0.00 0.00
FERC FORM NO.2 (ED. 12-96)Page 2O7
Name of Respondent
Avista Corp.
This report is:
IX] An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Y)
April 30,2003
Year Ending
Dec. 31, 2002
GAS PLANT lN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Line
No.
Account
(a)
Balance at
Beginning of Year
rh'l
Additions
(c)
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 0.00 0.00
368 Comoressor Station Eouioment 0.00 0.00
369 Measurino and Reoulatino Eouiomenl 0.00 0.00
370 Communications Eouioment 0.00 0.00
371 Other Eouiomenl 0.00 0.00
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0.00 0.00
DISTBIBUTION PLANT :.
374 Land and Land Riohts 1 13,916.51 0.00
375 Structures and lmorovements 51 0.936.1 7 36.783.71
376 Mains 208.623.761.42 8,098,816.92
377 Comoressor Station Eouioment 0.00 0.00
378 Measurinoand Requlatino Eouioment-General 3.801.275.32 495,468.78
379 Measurinq and Requlatinq Equipment-Citv Gate 1.717.792.52 9.001.77
380 Services 149.553.984.23 6.444,092.71
381 Meters 47,820,965.09 1.524.900.50
382 Meter lnslallations 0.00 0.00
383 House Requlators 0.00 0.00
384 House Reoulator lnstallations 0.00 0.00
385 lndustrial Measurino and Requlatinq Station Eouioment 2.278.355.50 103.678.87
386 Other Prooertv on Customers' Premises 0.00 0.00
386 Other Eouioment s39.29 0.00
TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)414.421.526.05 16,712,743.26
GENERAL PLANT
389 Land and Land Riqhts 330,820.93 0.00
390 Structures and lmorovements 2.373.943.44 3,891.00
391 Office Furniture and Eouioment 9,685.00 0.00
392 Transoortation Eouioment 3.476.284.53 48.156.40
393 Stores Eouioment 83,972.22 0.00
394 Tools. Shoo. and Garaoe Eouioment 1.950.455.37 66.56s.51
395 Laboratorv Eouioment 873,821.31 1 ,519.99
396 Power Ooerated Eouioment 2.408.353.38 199,045.45
397 Communication Eouioment 1 .499,716.10 97.094.89
398 MiscellaneousEouioment 34.471.93 0.00
Subtotal (Enter Totals of lines 104 thru 1 13)13,041.524.21 416,273.24
399 Other Tanoible Prooertv 0.00 0.00
TOTAL General Plant (Enter Totals of lines 1 14 and 1 15)13,041.524.21 416.273.24
TOTAL (Accounts 101 and 106)449.131.284.84 17.295.743.04
Gas Plant Purchased (See lnstruction 8)0.00 0.00
lless) Gas Plant Sold (See lnstruction 8)0.00
Experimental Gas Plant Unclassified 0.00 0.00
TOTAL Gas Plant in Service (Enter Totals of lines 117 thru '120)449.131.284.84 17.295.743.04
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FERC FORM NO.2 (ED.12-96)Page 208
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FERC FORM NO.2 (ED. 12-e6)Page 209
Name of Respondent
Avista Corp.
This report is:
IX] An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2003
Year Ending
Dec. 31, 2002
Retirements
lcl)
Adjustments
{e)
Transfers
If)
Balance at End of Year
1o)
Line
No.
0.00 0.00 0.00 0.00 8'l
82
83
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 84
85
86
87
88
89
0.oo 0.00 0.00 0.00
0.00 0.00 0.00 0.00
MSNI:r"::i.SgS "i- ri :l t
0.00 0.00 0.00 1 13.916.51
1.146.02 0.00 67.428.21 614,002.07
181.318.93 0.00 0.00 216.54'.t.259.41 90
91
92
93
94
95
96
97
98
99
100
101
102
0.00 0.00 0.00 0.00
24,846.64 0.00 430.62 4.272,328.08
772.92 0.00 0.00 1.726.021.37
375,025.78 0.00 (430.62)1ss.622.620.54
345.549.62 0.00 0.00 49.000.315.97
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 2.382,O34.37
0.00 0.00 0.00 0.00
0.00 0.00 0.00 539.29
928,659.91 0.00 67,428.21 430.273.037.61
:x l.;*,d,;{SS$ ru'ir lf}ru *h&.. S*e'5" ) H,::i::-i_It :qtt irt'tr s :-F*.#.. ,A 6.$ilt"E;ShJ ,::li....:..: \ :ri: i .103
104
105
't 06
0.00 0.00 0.00 330,820.93
0.00 0.00 0.00 2.377.834.44
0.00 0.00 0.00 9,685.00
352.993.25 0.00 0.00 3.171.447.68 107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
0.00 0.00 0.00 83,972.22
2.272.26 0.00 0.00 2.O14.748.62
1,368.80 0.00 0.00 873,972.50
87.810.48 0.00 0.00 2.s19.588.35
9,489.75 0.00 1,895.38 1,589,216.62
0.00 0.00 0.00 34.471.93
453,934.54 0.00 1,895.38 13,005.758.29
0.00 0.00 0.00 0.00
453.934.54 0.00 1,895.38 13,005,758.29
1.512.486.64 0.00 1,895.38 464.916,436.62W0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1,512,486.64 0.00 1,895.38 464,916,436.62
Name of Respondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2003
Year Ending
Dec. 31, 2002
CONSTHUCTION WORK IN PROGRESS-GAS (ACCOUNT 107
1. Report below descriptions and balances at end of year of and Demonstration (see Account 107 of the Uniform System of
projects in process of construction (Account 107). Accounts).
2. Show items relating to 'research, developmenl, and 3. Minor proiects (less than $1,000,000) may be grouped.
demonstration" proiects last, under a caption Research,
Line
No.
Description ol 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
33
34
35
36
37
38
39
40
4'l
42
43
44
STATE OF WASHINGTON
Minor Projects (40) Under $1,000,000
STATE OF IDAHO
Minor Projects (15) Under $1 ,000,000
STATE OF OREGON
Minor Projects (18) Under $1 ,000,000
STATE OF CALIFORNIA
Minor Projects (0) under $1,000,000
COMMON-WASI-UIDAHO
Minor Prolects (1) Under $1,000,000
COMMON-ORICATWNIO
Minor Projects (2) under $1,000,000
707,266.93
159,940.09
173,623.31
0.00
695,646.54
504,412.O2
3,s38,995.07
251,659.91
236,460.69
0.00
45 TOTAL 2.240.888.89 4.027,115.67
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FERC FORM NO.2 (ED.12-96)Page 216
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Name of Respondent
Avista Corporation
This Reoort Is:
(l)18 An Original
(2)n AResubmission
Date ol Repolt
(Mo, Da, Yr)
April28, 2t)03
Yeiu ol l{epolt
Dec.3l.2(xl2
ACCTIMULATED PRO\TSION FOR DEPRECIATION OF GAS UTILITY PLANT (Account 11
1. Explain in a footnote any important adjustments
during year.
2. Explain in a footnote auy difference between the amount
for book costof plantretired, line 11, column(c), andthat
reported for gas plantinservice, pages2O4-209, column (d),
excluding retirements of non-depreciable property.
3. The provisions of Account 108 in the Uniform System
of Accounts require that retirements of depreciable plant
be recorded when such plant is removed fromservice. If
the respondent has a significant amount of plant retilecl at
year end which has not been recorded and/or cla-ssified to
the various reserve fuuctional classifications, make
preliminary closing enhies to tentatively functionalize the
book cost of the plant retired. In addition, include all costs
included in retirement work in progress at year end in the
appropriate functional classifications.
4. Show separately interest credits under a sinking fund
or similar method of depreciation accounting.
Section A. Balances and Chanses Durins Year
Line
No.
Item
la)
Total
(c+d+e)
(b)
Gas Plant in
Service
(c)
Gas Plant Held
for Futnre Use
/i)
Gas Pl:Lnt Leased
to Othels
(e)
1 Balance Beeiffiine of Year r57.225.747 157.225.747
2 Depreciation Provisions for Year,
Chmced to
3 (403) Depreciation Expense 14,577.432 14 57't _432
4 (413) Exo. of Gas Plt. Leas. to Others
5 Transoortation Exoenses-Clearing 195.169 I 95.1 69
6 Other Clearine Accounts
7 Other Accounts (Specify):
8 Transfer to cornmon (transporation clear)0
9 TOTAL Deprec. Prov. for Year
(Enter Total of lines 3 thru 8)
14,712,60t t4,772,601
10 Net Charges for Plant Retired:
11 Book Cost of Plant Retired (1.510.390)(1.5 r 0.390
t2 Cost of Removal /132.404't32.404
13 Salvage (Credit)28 988 28-988
t4
15
TOTAL Net Chrgs. for Plaot Ret.
@nter Total of lines 1l thru 13)
Other Debit or Credit Items (Describe)
(r,613,806
(1;7s0.28s
(1,613,806.
(1.750.285'
16
L7 Balance End of Year @nter
Totalof lines 1.9.14. 15. and l6)168.634.257 168.634.257 0
Section B. Balances at End of Year Accordinc to Functional Classiiications
18 Production-Manufactured Gas (84,763 (84.763
19 hod. aricl Gatherinc-Natural Gas
20 hoducts Extraction-Natural Gas
2l Undercround Gas Storaqe 8.611.981 8.611.981
22 Other Storase Plant
23 Base Load LNG Term and Proc. Plt.
24 Transmission (34,r43 (34,143
25 Distribution 154.105.419 154,105,419
26 General 6.035.763 6.035.763
27 TOTAL @nter Total of lines 18
thru 26)
t68.634.257 168.634,257 0
FERC FORM NO. 2 (ED. 12.87)Page 219
Narne ol Respondent
Avista Corporalion
Ihas Beport ls:fi nn originat
I A Rsuomission
Dale ol Beporl
(ih, Da, Y0
April 30, 2003
/ear of Report
)ec. 31, 2002
GAS STORED (ACCOUNT 117.1. 117.2. '.|17.3. 117.4. '.t64.1. 164.2. AND 164.3)
1 lf durring the year adiustmenls were mad6 to tfle stored gas inventory
reported in columns (d), (l), (S), and (h) (such as to coned cumulativs
inaccuracies ol gas measurements), explain in a lootnote th€ reason ror
the ac,jushents, the Oth and dollar amount ol aditrslment, and accounl
ctErged or credited.
2 Report in column (e) all encroachments during the year upon th€ volumes
designAed as bas6 gas, column (b), and syslem balancir€ gas, column
( c ), and gas property recordable in the plart accounts.
3 State in a lootrDte the basis ol segregation ol inventory between
cunent and noncunent protions. Also slatE in a tootnote the
method used to reporl storage (1.e. fixed asset method or
irwenlory method).
-lnt Description
(Accounl
't t7.l)
(Accounl
117.2)
Noncurrent
(Account 1 1 7.3)
tdl
(ACCOUnt
117 .4',1
uurreil
(Accounl 164.'l )
tn
LNlJ
(Account t64.2
ldl
LN(J
(Account 164.3)
thl
Total
I alanc€ at Beoinnano ol Y6ar 6 t68 381 632.1 9{6.800.577
es l)aliver..l ld -Slora6e 'I t.587.38S r 13.55i 't I 7r)() 94t
3 ias Withdrawn from Storao6 10 192 oge 181 _89i 10.373.992
4 llEr Debits arrl Cre.iits
5 alarte al Erd ol Ys 7 563 67C 563.85t a127.526
6 Dth 1.690.00i 273.601 I 963 5r)7
7 Amount Per DekatlErm s4 4755 $2 0508 s4 r391
I slate basrs ol segregation ol inventory between curent and mncunent porliors.
Cunenl portion b gali expected to be sold within a 24 monlh period. All oth€r gas is considered non-6/nent.
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FERC FORM NO.2 (ED. 12.s6)Page22O ,
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This Page Intentionally Left Blank
Name of Respondent
Avista Corp.
I nrs Heoon ts:(1) finn Original(2) nA Resubmission
uate ol HeDon(Mo, Da, Yi)
0413012003
Year ot Report
Dec 31 ,2002
INVESTMENTS IN SUBSIDIABY COMPANIES (Account 123,
1. Report below investments in Accounts 123.1, investments in Subsidiary Companies.
2. Provide a subheading lor each company and List there under the inlormation called lor below. Sub - TOTAL by company and give a TOTAL in
columns (e),(l),(g) and (h)
(a) lnvestment in Securities - List and describe each security owned. For bonds give also principal amount, date of issue, maturity and interest rate.
(b) lnvestment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to
current settlement. With respect to each advance show whether the advance is a note or open account. List each note giving date of issuance, maturity
date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary earnings since acquisition. The TOTAL in column (e) should equal the amount entered for
Account 41 8.1 .
-tIte
No.
uescnplron oI lnveslmenl
(a)
Date Acquired
(b)Ma|qrity
ArllouItt ot tltvt,suncnr al
Beoinnino of Year'(d)-
1
2 Avista Capital - Common Stock 1 997 184,251 ,609
3 Avista Capital - Equity in Earnings 166,494,974
4 Dividends trom Subsidiary (Avista Capital)
5
6
7
8
9
10
11
12
13
14
15
1€
17
18
t9
20
21
22
23
24
25
26
27
28
29
30
3l
32
33
34
35
36
37
38
39
40
41
42 fotal Cost of Account 123.1 $ 0l TOTAL 350,746,583
FERC FORM NO. 2 (ED. 12-89)Page 224
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Name of Respondent
Avista Corp.
I nrs
(1)
(2)
Heoon ls:
5]nn originat
nA Resubmission
uare or Hepon
(Mo, Da, Yr)
04/30/2003
Year of Report
Dec. 31,2002
INVESTMENTS lN SUBSIDIARY COMPANIES (Accounl 123.1) (Continued)
4. Fot any securities, notes, or accounts that were pledged designate such securities, notes, or accounts in a footnote, and state the name ol pledgee
and purpose ot the pledge.
5. lf Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission,
date of authorization, and case or docket number.
6. Report column (f) interest and dividend revenues form investments, including such revenues form securities disposed of during the year.
7. ln column (h) report lor each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or
the other amount at which carried in the books ol account il ditference from cost) and the selling price thereof, not including interest adjustrnent includible
in column (f).
8. Report on Line 42, column (a) the TOTAL cost of Account 123.1
Equty rn subsicliary
Earninqsrof Year
Hevenues lor Year
(r)End Srfear
Liarn or Loss lrom lnveslmenl
Disoosed ol' (h)
Line
No.
184,25'1,609 2
-4,212,474 162,282,500 3
-89,796,369 -89,796,369 4
5
6
7
8
I
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
-4,212,474 -89,796,369 256.737,740 42
FERC FORM NO.2 (ED.12-89)Page 225
Name of Respondent
Av'ista Corp.
This Reoort ls:(1) []an Originat
(21 [-lA Resubmission
Date of Report(Mo, Da, Yr)
04/30/2003 #:1 ffiI
Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.1), Unrecovered Plant and Regulatory Study Costs (Acct 182.2)
T
PREPAYMENTS (ACCOUNT 1 65)a
1. Report below the particulars (details) on each prepayment.
Line
No.
Nature ol Payment
(a)
Balance at End
r,."'oli,l,,l I
I Prepaid lnsurance 1 592 R5R
2 Prepaid Rents 0
J Prepaid Taxes n
4 Preoaid lnterest 0
Miscellaneous Prepayments 46? 71? t
6 TOTAL ? -056 -q70
FERC FORM NO.2
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Il*fu Page 232
Name of Respondent
Avista Corp.
This Reoort ls:(1) fiRn Original(2) nA Besubmission
Date of Report(Mo, Da, Yr)
o413012003
Year oI Hepon
Dec.3f , 2oo2
OTHER REGULATORY ASSETS (Account 182.3)
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 (5% 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 ot Year
(e)
Account
Charged
(c)
Amount
(d)
't FAS 106 - Accounting for Post Retirement 926.65 472,752 4,727,520
2 Benelits, other than Pensions (182.30)
3
4 FAS 109 - Acctng for lncome Taxes Util Prop 283.17,18 9.898.399 139,499,024
5 (182.31 & 182.32)
6 More Options Power Supply (MOPS) - WA (182.34 )407.44 190,944 190,944
7 More Options Power Supply (MOPS) - lD (182.34)407.44 59,1 84 29,592
8 WA ERM Deferral Balance (182.35)186.28,38 27,839,715 104,166,540
9 Hamilton Skeet Bridge -- WA (182.39 028)407.39 111,480 389.388
t0 Hamilton Street Bridge - lD (182.39 038)407.39 34,368 212,352
11 FAS 133 Reg Asset (182.74)
12 Oregon DSM Long-Term Regulatory Asset vanous 153,006 -468,429
13 (182.80)
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
3€
37
38
ec
4C
41
42
43
44 TOTAL 38,759,848 248,746.931
Name of Respondenl
Avista Corp.
lhis report is:'Xl An Original' I A Resubmission
Date of Reporl
(Mo, Da, Yr)
April 30,2003
Year Ending
Dec. 31, 2002
MISCELLANEOUS DEFERRED DEBITS (ACCOUNT 186)
1. Report below the details called for conceming miscellaneous 2. For any delerred debit being amortized, show period of
deferred debits amortization in column (a).
3. Mino
Line
No.
Description ol Miscellaneous
Defened Debits
(a)
Balance at
Beginning
of Year
rh)
Debits CREDITS Balance al
End of Year
(fl
Account
Charged
/d)
Amount
(e)
1
2
3
4
5
b
7
8
9
10
11
12
13
14
't5
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
47
48
49
Regulatory Deferrals-WA
Colstrip Common Fac.
WA Accrued Power Def
WA Defened Power Costs
WA ERM YTD Company Band
WA ERM YTD Contra Account
Regulatory Defenals-lD
lD Deferred New Generalion
Colstrip Common Fac.
ldaho Accrued PCA Def
ldaho Defened Power
lD Accumulated Surcharge Am
Payroll Accrual
PPP Surcharge
Misc. Error Suspense
Joint Projects
Centralia Operaling Pmts
WPI-lD Terminated Elec Pur.
Unamortized A,/R Sale
lntangible Pension Asset
Bank Recon Suspense
Mark to Market Deferred Debit
lnterest Rate Swap
Nez Perce Settlement
Centralia Mine Env Balance
DES Contract Amortization
Metro-Sunset 115KV TE
UPRR Permit Conv
CPRR Permit Conv
Ortho Business Activitv
634,800
0
8,231 ,970
0
0
0
1 ,346,160
0
75,046,296
(2,901,409)
2,443,520
32,468
(2s4,559)
52s,000
1 ,175,981
269,502
0
(262,967)
1,889,288
0
780,360
0
314,350
11,966
171,191
28,O77
3A qOO
1,164,331
10,186,578
4,500,000
921,184
592,090
332.458
87,921
6,365,810
262,775
1,368,874
567 ,509
56,685
12,860
44,294
46.127
406
var
557
var
406
var
555
557
556
254
31,74C
4,500,00c
67,308
17,086,24e
24,132,93C
846,095
1,951 ,768
525,00C
391 ,992
'l ,889,28€
567,491
227 112
603,060
1 ,164,331
18,418,548
4,s00,000
(4,s00,000)
921,184
1,278,852
592,090
57,960,0s0
(27,034,339)
1,597,425
364,926
(2,206,324)
0
783,989
357,423
6,365,810
(1 92)
0
1,368,874
212,869
567,509
87,238
68,651
184,051
72,371
85,027
Viscellaneous Work in Prooress
)eferred Regulatory Comm. Expenses (See
)aoes 350 - 351 )
r, , i, ,s i.it.rililr,lidilr.. t..i riLli ; I i* rr, ri r
:,,r.,r,;ir; i*:iiltf,:,1*,
rOTAL 109 424.216 81 .406.921
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FERC FORM NO.2 (ED.12-96)Page 233
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Name of Respondent
Avista Corp.
fhis report is:'Xl An Original' lA Resubmission
Date of Report
(Mo, Da, Y)
April 30, 2002
Year Ending
Dec. 31, 2001
MISCELLANEOUS DEFEBRED DEBITS IACCOI-JNT 186)
1. Report below the details called for conceming miscellaneous
deferred debits
2. For any deferred debit being amortized, show period of
amortization in column (a).
Line
No.
Description of Miscellaneous
Deterred Debits
(a)
Balance at
Beginning
of Year
/ht
Debitr
/nl
CIlEDITS Balance at
End of Year
/fl
Accounl
Charged
(d)
Amount
(e)
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
4'l
42
43
44
45
46
47
48
49
lCanadian GST Tax
I
lNez Perce Forest
I
lElectric Network
I
lMisc. W.O. under $50,000
lsubsidiary Billings
IlConservation
I Enhanceo Low lncome Wzn
I oR c", comm consvt
I Or"gon Shower Head
Oregon Comm Gas Etf
WPNG HE Wtr Htrs-OR
WPNG HE Furnaces
WPNG CA RES UI .P
WPNG OR Res Low 1
Regulatory-Sched-67
Reg-Water Heal Conv
Reg-SpaceMaler Con
Reg-Elec Comm/lnd
Reg-Gas Wzn Res
Reg-Ul Elec/Gas
Reg-Elec Manuf Home
Reg-Comm/lnd Gas
Reg-Gas Res Appl Et
Reg-Gas Res Showerhead
Reg Elect Res Wzn
Reg Ul Elec Wzn
Reg Elec Fles Shwr
Reg C/l Elec Fuel
Reg Gas A.E. Wtr
Reg Low lncome Gas Wzn
Sandpoinl DSR - PPL
Gas Plant
Hamilton Sireet Bridge Site
Electric Plant
Post Falls No Channel Study
Easy Pay Billing CS
Lake CDA lssues
'148,15.1
53,430
77,595
194,770
2,930,1 18
0
103,835
184,1 35
88,162
248,874
1,467,548
(169,899)
196,739
263,484
1,338,003
5,470,734
896,167
1 ,339,014
447,947
382,763
155,41 I
1,818,793
192,6s8
67,521
1 10,039
96,675
263,656
259,414
450,835
967,127
108,137
49,984
(531,4s6)
232.990
38,446
131 ,816
62,505
47,032
30,519
19,863
259,1 94
1,007
228,O71
Aq oo2
var
var
908
var
908
908
908
908
908
908
908
908
908
908
908
908
908
908
908
908
908
908
var
52,74
77,EOE
707,38'.1
36,409
190,837
1 1,549
33,067
152,3s8
704,560
116,375
1 53,1 45
49,738
48,985
19,599
208,179
55,047
8,644
14,099
37,936
34,22'l
74,130
56,634
1 13,387
260,657
95,404
91 ,876
0
326,s86
2,222,737
62,505
150,867
147,726
'| 18,681
268,737
1,726,742
(360,736)
185,190
230,417
1,185,645
4,766,174
779,792
1 ,185,869
398,209
333,778
135,820
1 ,610,614
137,61 1
58,877
95,940
58,739
229,435
18s,284
394,201
853,740
(152,s20)
50,991
(303,425)
321 992
Miscellaneous Work in Prooress
)eferred Flegulatory Comm. Expenses (See pages
150 - 351 )
rOTAL 109,424.21(81.406.921
FERC FORM NO.2 (ED.12-96)Page 233.1
Name of Respondent
Avista Corp
This Reoort Is:+(l) 18 An original
(2\ f] A Resubmission
Date of Report
(M, D, Y)
April 30, 2003
Year ofReport
Dec.3l,200'2
ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT 190)
I. 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 DLIRING YEAR
Amounts
Debited to
Account 410.1
(c)
Amounts
Credited to
Account 41 l. I
(d)
I Account 190
2 F-lectric 9.583.164 2.582.324 4.987.200
3 Gas (960,3s91 (2,968,050)83.052
3.01
4 Other (Define)
4.01
4.02
5 Total (Total of lines 2 thru 4)E.622.805 (d,85.726 5.W0.252
6 Other (Soecifv)t8.422.t37 3.535.707 Q9t.6t5
6.01
6.02
7 IOTAL Account 190 (Total of lines 5 thru 6)27,0U.942 3.149,981 4.578,637
8 Classification of TOTAL
9 Federal Income Tax 27.04/..942 3.149.981 4.578.637
l0 State Income Tax
1l Local Income Tax
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IFERC FORM NO.2 (12-98)Page234
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Name of Respondent
Avista Corp
This Reoort Is:
f rlElen original
fZlIe Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
Dec.31.2002
ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT 190) (Continued)
4. Ifmore 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
(f)
Debits to 190 Credits to 190
Acct. No.
(p)
Amount
(ht
Acct. No.
( i)
Amount
(i)
t26.O3L 0 11.E62.009 1
4.780 0 283.39 161.852 r.924.1U 3
283.71 l1.933 (11.9331 3.01
254.t8 4.391 (4391 4
0 4.01
0 4.02
130.811 0 0 178-176 L3J69,796 5
287,225 (410.100 216.02 398,504 14.095.994 6
228.3i 9,478,869 9.47E.E69 6.01
253.29 250,645 250,645 6.02
41E,036 (410,100 10,12E,018 17E,l76 37.595.304 7
41E.036 (410.100 r0.128.018 17E.176 37595304 9
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FERC FORM NO. 2 (12-98)Page 235
Year ol Report
Dec.31, 2OO2
'l . Report below the paniculars (details) called for concerning common and preferred stock at end of year, distinguishing separate
series ol 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 liscal 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.
Class and Series of Stock and
Name of Stock Series
Number of shares
Authorized by Charter
Par or Stated
Value per share
Call Price at
End of Year
(d)
Account 201 - Common Stock lssued
Account 204 - Preterred Stock lssued
$6.95 Series K Mandatorily Redeemable
FERC FORM NO.2 (ED.12-91)Page
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Name or Hesponoent
Avista Corp.
This Reoort ls:(1) fiAn Originat(2) nA Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec.31, 2OO2
CAPITAL STOCKS (Account 201 and 204) (Continued)
3. Give particulars (details) concerning shares of any class and series ol stock authorized to be issued by a regulatory commission
which have not yet been issued.
4. The identification 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 outstanding at end of year.
Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which
is pledged, stating name of pledgee and purposes ol pledge.
OUTSTANDING PER BALANCE SHEET(Total amount outstanding without reduction
for amounts held by respondent)
HELD BY RESPONDENT Line
No.AS REACQUIREO STOCK (Account 217)IN SINKING AND OTHEB FUNDS
Snares(e)AmounI(')ljnares(s)it snares(i)Amount
0)
1
48,044,208 623,092,000 2
3
48,044,208 623,092,000 4
5
6
7
8
332,500 33,250,000 I
10
11
12
332,500 33,250,000 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'l
42
FERC FORM NO.2 (ED.12-88)Page 251
Name of Respondent
Avista Corp.
This Reoort ls:(1) 5.1nn Orisinat(2) nA Resubmission
Date ot Report(Mo, Da, Yr)
o4t30/2003
Year oI Hepon
Dec.31, 2OO2
CAPITAL STOCK EXPENSE (Account 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 oc€urred during the year in the balance in respect lo any class or series of stock, attach a statement giving particulars
(details) of the change. State the reason for any charge-otf of capital stock expense and specify the account charged.
LII IE
No.
vtass ailu ocltes (Jt ot()L;I1
(a)
Eatance aI Eno oI Yeat
(b)
1 lommon Stock - Public lssue 8,318,679
2 Shares issued under provisions ol Respondant's Dividend Beinvestment and Stock Purchase Plan 442,144
3 Shares issued under provisions ol Respondant's Employee Stock Purchase Plan 74,839
4 Sommon Stock - 401k 215,1371
5 Sommon Stock - Periodic Offering Program (POP)599,768
6 86.95 Prefened Stock, Series K 2.089.391
7 lommon Stock Split 187,872
8
o
10
11
't2
't3
14
15
16
I17
18
19
20
21
22 TOTAL 11,927,830
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FERC FOHM NO.2 (ED.12-87)Page 254b
This Page Intentionally Left Blank
Name ol Respondent
Avista Corp.
This Reoort ls:(1) 5]Rn orisinat(2) nA Resubmission
Date of Reporl
(Mo, Da, Yr)
o4t3012003
Year ot Report
Dec 31 ,2002
LONG- I EHM IJtsEr (Account 221, 222, 223 and 2241
1. Report by balance sheet account the particulars (details) concerning long-term debt included in Accounts 221 , Bonds,222,
Reacquired Bonds, 223, Advances from Associated Companies, and 224, Olher 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 ol 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 amounl 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.
-lne
No.
Class and Series of Obligation, Coupon Rate
(For new issue, give commission Authorization numbers and dates)
(a)
Principal Amount
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
Pollution Control Revenue Bonds:
€6% Series due 2023 4,100,00c 345,385
Colstrip 1999A due 2032 66.700,00c 2,182,462
I (Premium)1,334,000
I Colstrip 19998 due 2034 17,000,00c 565,288
10 (Premium)340,000
11
12 SUBTOTAL 87,800,00c 8,947,910
13
14 Accl.222 - Reacquired Bonds
15
16 Acct. 223 - Advances from Associated Companies
17
18 Acct.224 - Other Long-term Debt
19
20 Notes Payable - Banks (local) $225,000,000 2,844,500
2'.1
22 Commercial Paper
23
24 Unsecured Senior Notes 400,000,000 9,128,000
25 (Discount)2,716,000
26
27 Medium Term Notes $1,000,000,000 6,197.873
28 (Premium)70,000
29 Long Term Curent
30 Notes Payable to Various Parties
31 Preferred Trust Securities 60,000,00c 5,960,160
32 50,000,00c 3,633,783
33 TOTAL 597,800,00(39,498,226
FERC FORM NO.2 (ED.12-96)Page 256
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Name ot Respondent
Avista Corp.
This ReDort ls:(1) 5]Rn orisinat(2) nA Resubmission
UAIE OI HEDON(Mo, Da, Yi)
04/30/2003
Year ot Report
Dec.31, 2002
LON G-TERM D EBT (Accounl 221, 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 and224 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 ol its long-term debt securities give particulars (details) in a footnole including name of pledgee
and purpose of the pledge.
14. lf the respondent 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 UU[5EI IUtr IU(Total amount outstaniling without
reduction for amounts held by
resoT6Sdent)
lnterest lor Year
Amount
(i)
Ltne
No.Date From
(f)
Date To
(o)
1
313,500,00(22,235,332 2
3
4
5
1A1U19U 12t01tzo'.t4 1211811984 12101t2014 4,100,00(246,00C o
9/01/1999 10t01120s2 9/01/1999 'lolo112032 66,700.00(3,335,000 7
8
9/01/1999 310112034 9/01/1 999 310112034 17,000,00(872,16'.l,o
10
11
401,300,00(26,688,493 12
1
14
15
16
17
18
1g
30,000,00(2,967,548 20
21
22
23
341,528,87t 35.337.708 24
25
26
232,2sO,OOt 22,478,645 27
2A
29
30
)1/231't997 )111st20s7 01/31/1 997 1U31t2036 60,000,00(4.725.OO0 31
)6/0311997 0610'V2037 06/30/1 997 0513112037 40,000,00(986,363 32
1,105,078,874 93,1 83,757 33
FERC FORM NO.2 (ED.12-96)Page 257
Name ot Responclent
Avista Corp.
tnts Heoon ts:(1) fiAn Origlnat(2) nA Resubmission
Date ol Report(Mo, Da, Yr)
0413012003
Year of Report
Dec.31, 2OOz
t
l
RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TMES
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal income tax accruals and show
computation of such tax accruals. lnclude in the reconciliation, as far as praclicable, the same delail as furnished on Schedule M-1 of the tax return for
the year. Submit a reconciliation even though there is no taxable income for the year. lndicate clearly the nalure of each reconciling amount.
2. lt the utility is a member of a group which files a consolidated Federal tax return, reconcile reported net income with taxable net income as if a
separate return 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 ol 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 used 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.
Ltne
No.
raflrcurars (uelails,
(a)
,{tltount
(b)
1 {et lncome for the Year (Page 117)31,306,753
2
3
4 laxable Income Not Reported on Books
5 6,782,579
6
7
8
9 )eductions Recorded on Books Not Deducted for Return
't0 66,339,514
11 :ederal lncome Tax 37,736,923
12 )elerred lncome Tax -7,898,7'.t7
13 nvestment Tax Credit -49,308
't4 ncome Recorded on Books Not lncluded in Return
15 47,025,686
16 iquity in Sub Eamings (lncome) / Loss 4,212,474
17
18
19 )eductions on Beturn Not Charged Against Book lncome
20 -2,636,119
21
22
23
24
25
26
27 :ederal Tax Net lncome 107,819,785
28 ihow Computation of Tax:37,736,923
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
NO.2 261Page
This Page Intentionally Left Blank
Year ol Report
Dec. 3't, 2OO2
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts
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
aciual, 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 this page is not aflected 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 ol tax in such manner that the total tax for each State and subdivision can readily be ascertained.
lncome Tax (989-1996)
lncome Tax (1997)
lncome Tax (1998)
lncome Tax (1999)
lncome Tax (2001)
Retained Eamings-ESOP -147,',t75
STATE OF WASHINGTON:
Property Tax (2001)
Excise Tax (2001)1,803,110
Unemployment lns. (2001 )
29,611 ,752
lncome Tax (1997-2000)
lncome Tax (2001)
Property Tax (2001)
Excise Tax (2001)
Adjust-
ments
FERC FORM NO.2 (ED.12-96)Page 262
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Name of Respondenl
Avista Corp.
I nts F{eoon ls:(1) 5.len original(2) nA Besubmission
Date o, Reoort(Mo, Da, Yi)
0413012003
Year or Hepon
Dec.31, 2OO2
TAXES ACGRUED, PREPAID AND CHARGED DUBING 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,
identitying the year in column (a).
6. Enter all adjustments of the accrued and prepaid trax 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 delerred 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 taxes were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.'l
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 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 tootnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAH DISI HIBUTION OF TAXES CHARGED Line
(Taxes accrued
Account 236)(q)
PrepaE laxes
(lncl. in Account 165)
Electric(Account 408.1, 409.1)
Extraordinary ltems
(Account 409.3)
Aotusrmenrs ro Her.
Earnings (Account 439)
(k)
Other
(t)
No.
1
-587,439 2
-37,912 4
-938,867 E
7,097,901 6
-53,215,684 7
54,943,426 I
25,158,719 12,578,204 o
-8,377 10
2,594 23,857 11
7,703,905 12
'I
-885,066 14
-419.065 1
-141 ,026 16
-139,205 -139.205 17
5,679,657 25,158,719 20,1 58,384 1
19
20
485,660 21
-57,614 -274,217 -262,99€22
9,964,632 7.978,208 1,984,994 23
329,416 24
't,u5,877 11,595,728 8,573,93€25
23,047 26
-2,42e 27
766,052 28
27,818 29
12,367,971 19,299,719 t 1,'t 10,428 30
31
32
855,431 33
-3,085,967 34
749,501 1,343,462 35
-383 36
47 37
2,565,970 4,316,245 832,760 38
-8,056 39
-54,473 40
22,522,183 58,458,643 56,079,796 41
FERC FORM NO.2 (ED.12-96)Page 263
Name ol Respondent
Avista Corp.
This Reoort ls:(1) finn originat(2) nA Resubmission
uate oI Hepon(Mo, Da, Yr)
04t30/2003
Year ol Hepon
Dec.31, 2002
TAXES ACCRUED, PREPAID AND CHAHGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during
the year. Do not include gasoline and other sales tiaxes which have been charged to lhe 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, tiaxes 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.
-lI rg
No.
Kind of Tax
(See instruction 5)
(a)
BALANCE AT BEGINNING OF YEAR I axesCharoed
Rutn(d)
I axesPaid
q8ps
(e)
Adjust-
ments
(f)
I axes Accrueo(Account 236)(b)
rreoaE taxes
ilnclude in Account 165)
1 Excise Tax (2002)1,86S 9,004
Unemployment lns (2001)29,268 -29,26t
Unemployment lns. (2002)12,651 12,651
Motor Vehicle lns. (2002)32,84S 32,849
lrrigation Credits (2002)-3,616 3,747 132
KWH Tax (2001)46,662 -29,76e 16,89€
KWH Tax (2002)402,361 360,8sS
Franchise Tax (2002)681,486 2,998,O74 3,046.678
Total ldaho 748,O42 9,884,984 8,943,708
1C
't1 STATE OF MONTANA:
12 lncome Tax (1 996-2000)369,410 -246.347
1 lncome Tax (2001)1,186,912
14 lncome Tax (2002)595,1 99 525,211
15 Propery Tax (1999)-93,657
16 Property Tax (2000)-46,114
1 Property Tax (2001)2,781,458 2,780,001
1 Property Tax (2002)5,973,731 2,989,231
1 Unemployment lns (2001 )5,473 -5,473
2C Unemployment lns (2002)4,573 4,573
21 KWH Tax (2001)275,333 -61 ,419 213,915
22 KWH Tax (2002)1 ,100,654 896,080
z:Motor Vehicle (2002)8,393 8,393
24 Consumer Council Tax -87.266 87,69C 423
25 Public Commission Tax -18 732 714
2e Total Montana 2,017,704 7,704,08C 7,172,194
27
28 STATE OF OREGON:
29 lncome Tax (1995)-24,207
30 lncome Tax (1999)214,635
31 lncome Tax (2000)- 158,916
31 lncome Tax (2001)-854,575 -90
3:lncome Tax (2002)347,80€131 ,690
3t Propefl Tax (1999-2000)55,1 43
EE Property Tax (2001)-580,573 651,504 50,432
3t Proprty Tax (2002)562,157 1,033.s98
3i Unemployment lns (2001 )8.1 08 -8,10t
3t Unemployment lns. (2002)22,64?22,643
EC Motor Vehicle (2002)2,343 2,343
4(Busn Energy Tax Credit -414,235
4'.!TOTAL -20,229,945 1 14,399,074 71,687,56i 40,613
FERC FORM NO.2 (ED.12-96)Page 262.1
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Name ol Respondent
Avista Corp.
This Reoort ls:(1) fiRn Original(2) nA Resubmission
uale or Hepon
(Mo, Da, Yr)
0413012003
Year ot Report
Dec. 31,2002
IAXES AL;UHUED, PHEPAITJ AND CHARGED DURING YEAR (Continued)
5. lt any tax (exclude Federal and State income taxes)- covers more then one year, show the required inlormation separately for each tax year,
identitying 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. Repod in columns (i) through (l) how the taxes were distributed. Beport 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 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 footnote the basis (necessity) ol apportioning such tax.
BALANCE AT END OF YEAR DISTRIBUTION OF T CHARGED Line
(Taxes accrued
Accolnl 236)
Preparct laxes
(lncl. in Affirnt t0S1
Electric(Account 408.1, 409.1)
Extraordinary ltems
(Account 409.3)
AOIUSIInENIS IO HEI.iarnings (Account 439)
(k)
Other
(t)
No.
-7,135 1,236 633 1
-29,268 2
12,651 3
32,849 4
3,747 5
-29,766 6
41,502 402,361 7
632,882 1,660,406 1,337,668 I
1 ,689,319 6,350,482 3,534,502 9
10
11
615,757 12
1.186.912 13
69.988 595,1 99 14
-93,657 1
-46,114 16
1,454 5,973,731 17
2,984,500 18
-5,473 1g
4,573 20
-61 ,419 21
204,574 1,100,654 22
8,393 23
87,690 24
731 25
2,549,590 5,973,731 1,730,348 26
27
28
-24,207 DA
214,635 30
.'t58,916 31
-854,485 32
216,117 347.807 JJ
55,1 43 34
20.499 651,504 35
-471,442 15,586 546,570 36
-8,108 37
22,643 38
2,343 39
-414.235 40
22,522,183 58,458,643 56,079,796 4'.1
FEBC FORM NO.2 (ED.12-s6)Page 263.1
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts
the year. Do not include gasoline and other sales taxes which 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 estimated or actual amounts.
2. lnclude on this page, taxes paid during the year and charged direct to linal accounts, (not charged to prepaid or accrued taxes.)
Enter the amounts in both columns (d) and (e). The balancing of this page is nol 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 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.
. List the aggregate of each kind of tax in such manner that the total lax lor each State and subdivision can readily be ascertained.
Kind of Tax
(See instruction 5)
Busn Energy Tax Credil
Busn Energy Tax Credil
-1,593,511
STATE OF CALIFORNIA:
lncome Tax (1996-2000)
lncome Tax (2001)
Property Tax (1999)
Property Tax (2000-2001 )
Excise Tax (1 999-2000)
Excise Tax (2001)
STATE OF ARIZONA:
lncome Tax (2001)
STATE OF KENTUCKY
Unemployment lns (2001 )
STATE OF VIRGINIA
FERC FORM NO.2 (ED.12-96)Page
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Name of Respondent
Avista Corp.
This Reoort ls:(1) filn Originat(2) nA Besubmission
Date of Report(Mo, Da, Yr)
0413012003
Year ol Report
Dec.31, 2002
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 lor each tax year,
identifying the year in column (a).
6. Enter all adjustments ol the accrued and prepaid tax accounts in column (l) and explain each adjustment in a foot- note. Designate debit adiustments
by parentheses.
7. Do not include on this page entries with respect to delerred income taxes or taxes collected through payroll deductions or othenvise pending
transmittal 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. Beport in column (l) the amounts charged to Accounts 408.1 and 109.1 pefiaining 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 lootnote the basis (necessity) of apportioning such tax.
BALANCF AT OF YEAR DISTRIBUTION OF T/,S CHARGED Line
(Taxes accrued
Accoynf 2so)
,Jreparo I axes
(lncl. in Affipunt tosl Electric(Account 408.1, 409.1)
Extraorornary llems
(Account 409.3)
AUtUSUneItrS LO Ftt [.
Earnings (Account 4391
(k)
Other
(t)
No.
-34,243 -55,790
-55,790 2,663,664
221,428
-1,285,496 15,586 4,170,633 4
158,423 7
-142,429
26,863 61 ,665
128,479 'tc
3,906 63,000 11
-53,986 53,934 1
-2,163 1
-34 1A
-61 ,000 1
5,175 1€
557,747 577,706 17
468 1
240,562 1
676,806 941 ,510 2C
2'.!
22
-4,226 2!
-4,226 24
2a
2e
21
-1,208 2t
-1.208 2l
3C
31
5z
725 3:
725 34
AC
3€
3?
-200 38
-200 39
40
22,522,183 58,458,643 56,079,796 41
FERC FORM NO.2 (ED.12-96)Page 263.2
Year of Report
Dec.31, 2OO2
1. Give particulars (details) ol the combined prepaid and accrued trax accounts and show the total taxes charged to operations and other accounts during
the ysar. Do not include gasoline and other sales tiaxes which have been charged to the ac@unts to which the taxed material was charged. lf the
actual, or estimated amounts ol such taxes are know, show the amounts in a lootnote and designate whether estimated or actual amounts.
2. lnclude on this page, taxes paid during the year and charged direct to linal accounts, (not charged to prepaid or accrued taxes.)
Enter the amounts in both columns (d) and (e). The balancing of 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 of each kind ol tax in such manner that the total tax for each State and subdivision can readily be ascertained.
Kind of Tax
(See instruction 5)
STATE OF FLORIDA
STATE OF NEW YORK
Unemployment lns (2001 )
719,1 10
STATE OF ILLINOIS
Unemploymnt lns. 1999-2000
STATE OF UTAH
FERC FORM NO.2 (ED.12-96)Page
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Name of Bespondent
Avista Corp.
tnts Heoon ls:(1) [Rn Originat(2) nA Resubmission
uale oI Heoon(Mo, Da, Yi)
0413012003
Year or Hepon
Dec.31, 2OO2
IAXES ACCRUED, PREPAID AND CHARGED DUBING YEAR (Continue(I)
5. ll 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 otheruise 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
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 tootnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAH DISTRIEUTION OF TA :S CHARGED Line
(Taxes accrued
Accoqnl 236)tol
Preparo I axes
(lncl. in ffiunt 16s)
Electric(Account 408.1, 409.1)
Extraordinary ltems
(Account 409.3)
AOIUSIMENIS IO HEI.
iarnings (Account 439)
(k)
Other
(t)
No.
1
2
-582
-582 4
5
6
370 7
8
370 o
t0
-300 11
12
-300 13
14
1
848,569 1,660,406 't4.395.724 1
294 ,l
1
18,530 1
19,250 2C
21
-7 22
848,562 1,660,406 14,433,798 23
24
2a
-270 2e
2i
-270 2e
2S
3C
1,658 31
1,658 5Z
5i
34
2E
3€
31
3€
,lc
4C
22,522,183 58,458,643 56,079,796 41
FERC FORM NO.2 (ED.12-96)Page 263.3
Year ol Report
Dec.31, 2oo2
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 which the tax credits are amortized.
10% and TOTAL)
141 ''.40
FERC FORM NO.2 (ED.12-89)Page 266
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Name ot Respondent
Avista Corp.
This Reoort ls:(1) fiAn Originat(21 l--1A Resubmission
Date of Reoort
(Mo, Da, Yi)
04/30/2003
Year of Beport
Dec.31, 2OO2
ACCUMULATED DEFERRED INVESTMENT TAX CBEDITS (Account 255) (continued)
Balance at Endol Year
(ht
Averaoe renooof Alfocationto lncome/i)
ADJUSTMENT EXPLANATION Ltne
No.
1
4
7
669,576 1
11
669,576 'I
1
'14
1
1
17
1
'|
2C
21
22
23
24
25
26
27
28
29
30
31
32
34
AE
3€
37
3€
ec
4C
41
42
43
44
45
4e
47
4e
FERC FORM NO.2 (ED.12{9)Page 267
Name of Respondent
Avista Corp.
This Reoort ls:(r)EI en Original
(2)! A Resubmission
Date of Report
'Mo, Da, Yr)
April30,2003
Year ofReport
Dec. 31, 2002
MSCELLANEOUS CURRENT AND ACCRUED LIABILITIES (Account 242)
l. 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)
Balance at
End of Year
(b)
I
2
3
4
5
6
7
8
9
l0lt
t2
l3
l4
l5
l6
t7
l8
19
20
2t
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
4t
42
Misc. Liab -- Margin Call Deposit 242.05
Hamilton St. Bridge (Gas Plant) Accrual 242.10
Audit Expense Accrual 242.20
FERC Administrative Fee Accrual 242.30,242.3 |
WUTC Fee Accrual 242.40
Non-monetary Power Exchan ge 242.50
Misc. Liab -- Transmission Deposits 242.51
Payroll Equalization 242.70
Demand Side Mgmt TariffRider 242.71,72,73,74
ESOP 401-K Plan 242.75
Low Income Energy Assistance 242.76 &242.77
California Commission Fee 242.78
OR Gas Limited Income (LIRAP) 242.79
I7,500,000
985,909
25,000
600,000
81,000
69,046
65,800
8,636.5s7
(8,713,739)
32,645
907,327
5,768
84,383
43 TOTAL 20.279.696
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FERC FORM NO.2 (ED. r2-E6)Page268
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Name of Respondent
Avista Corp.
This Beport ls:(1) []An Original(2) f--lA Resubmission
uale or Hepon
(Mo, Da, Yr)
04t3012003
Year ol Report
Dec. 31,2002
OTHER DEFFERED CREDI'I S (Account 253)
1. Report below the particulars (details) called for concerning other deferred credits.
2. For any delened credit being amortized, show the period ol amortization.
3. Minor items (5% ol the Balance End of Year lor Account 253 or amounts less than $10,000, whichever is greater) may be grouped by classes.
Line
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 253.00 419 3,05S 11,10C 8,059
J
4 Defened revenue prepayment -
5 Pacilic Walla Walla/Enterprise
6 Amort = 19 yrs 253.08 70,29C 456 9,372 60,918
7
8 BPA C&RD Receipts 253.10 65,70C 394,20(394.20C 65,700
I
10 Trust Fund - Centralia 253.11 852,529 128 11,60t 49,497 890,418
'tI
12 Rathdrum Refund 253.12 611,621 550 33,82:577,798
13 Amort = 25 years
14
15 Supplemental Executive 10.362.946 426 822,974 3,001,426 12,541 ,399
16 Retirement Plan 253.29
17
18 Delerred PGE Contract 253.70 30,597,96(30,597,96(
19
20 Mark to Market 253.74 159,418,188 s57 1,157,747.88i 998,329,698
21
22 Gain on Sale and leaseback 2,614,56C 931 2il,45e 2,353,104
23 ol Building (Amortization period
24 is 25 years) 253.85 & 253.86
25
26 WA Clark Fork Relicensing 253.88 114,550 171 5,414,55C 5,300,00(
27 lD Clark Fork Relicensing 253.89 -605,387 171 569,1 52 783,1 9(-391 ,349
28
29 Delerred Compensation 90,91 ,92 't2.746.391 131 2,182,30C 1,083,68('fi,647,780
30
31 Long Term lncentive Plan 253.93 57,1 0!92014'.t7 94,606 37,50:
JI
en FASS Mark to Market 253.95 13,653,72S r20,921,889 109,219,73S 1,95 t,579
34
35
36
37
38
39
40
41
42
43
44
45
46
47 TOTAL 230,560,198 1 ,319,064,831 1.118.210.039 29.705.406
FERC FORM NO.2 (ED.12-94)Page 269
Name ot Besponclent
Avista Corp.
I nrs Heoon ts:(1) E]An orisinat
(2') nA Resubmission
uare or Hepon(Mo, Da, Yr)
o413012003
Year of Report
Dec.31, 2002
ACGUMULATED DEFFERED INCOME TAXES. OTHER PROPERTY (ACCOUNI 282)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes rating to property not
subject to accelerated amortization
2. For other (Specify),include deferrals relating to other income and deductions.
Jne
No.
Account
(a)
Balance at
Beginning of Year
(b)
CHANGES DURING YEAR
Amounts Debiled
to Account 410.1
(c)
Amounts Credited
to Account 41 1.1
(d)
Electric 161,842,987 5,043,434
Gas 33,103,340 3,894,159
General Common 12,990,001 -1,276,O8i
TOTAL (Enter Total ol lines 2 thru 4)207,936,328 7,661,50i
Non-operating 2,293,161 98,714
7
TOTAL Account 282 (Enter Total of lines 5 thru 210,229,485 7,760,21t
11 Federal lncome Tax 204,565,233 8.642,20e
12 State lncome Tax 5,664,25(881 ,99C
13 Local lncome Tax
NOTES
IFERC FORM NO.2 (ED.12-s6)Page 274
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Name oI Hesponoent
Avista Corp.
This Reoort ls:(1) fiAn Original
(21 nA Resubmission
uate ot Hepon I Yearor Hepon
!Ygr_D3-Y_i) | o*. s,, zoo2
0413012003
AUUUMULA I ts,U UEFEF{HE,U INULIME IAAES . (, I HEH PH(JI'EH I Y IACCOUM 2AZI (UONTNUEdI
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 Accounl 41 1.2
(f)
Debits Credits
ACCOUnT
Credited(s)
AT|OUNI
(h)
ACCOUnI
Debited
ri)
Amount
0)
166,886,42 2
36,997,491 3
11,713,91 4
215,597,83r 5
2,391 ,87'6
7
8
217,989,70 I
213,207,43 't1
6,546,24r 12
13
NOTES (Continued)
FERC FORM NO. 2t (ED. 12-96)Page 275
1. Report the information called for below conceming 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.
to Account 41 1.1
TOTAL Electric (Total of lines 3 thru 8)
TOTAL Gas (Total of lines 11 thru 16)
TOTAL (Acct 283) (Enter Total of lines 9, 17 and 1 8)
FERC FORM NO.2 (ED. 12-96)Page 276
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Page 2Tl
Name of Respondent
Avista Corp.
I nrs HeDon ts:(1) ffiRn originat(2) nA Resubmission
uate ol Heoon(Mo, Da, Yi)
04/30/2003
Year ol Report
Dec.31, 2002
AUUUMULA I EU UEFEHHEU INU(JME I AXES . U I FIEH (ACCOUNI 26.3) (UONTINUEO)
3. Provide in the space below explanations for Page 276 and 277. lnclude amounts relating to insignificant items listed under Other.
4. Use lootnotes as required.
CHANGES DI.JRING YEAR AD,IENTS
Balance at
End of Year
ft)
Line
No.
Amounts ueDrteo
to Account 410.2
Ie)
Amounts ureorleo
to Account 41 1.2
/fl
Debits Credits
ACCOUnt
cr1$jted
Amount
ft)
A(;(xrun{
Debited
fi)
Arnoun(
fi)
3,00s,188 123,350,947 3
4
5
t,
7
8
3,005,188 123,350,947 I
323,412 190.10 161,85'5,519,1 1 1 11
190.88 11,93:11,933 12
13
14
15
16
323,412 173,785 5,s07,178 17
182.31 &9,898,39S 133.359,117 18
3,328,@0 10,o72,1U 262,217,242 19
21
22
23
NOTES (Continued)
Name ol Hesponoenl
Avista Corp.
This ReDort ls:(1) finnOriginat(2\ l-lA Resubmission
uale oI Hepon(Mo, Da, Y0
0413012003
Year oI Hepon
Dec.31, 2OO2
OTHEB REGULATORY LIABILITIES (Account 254)
1. Reporting below the particulars (Details) called for cgncerning 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 ot
Other Regulatory Liabilities
(a)
DEBITS
Credits
(d)
Balance at
End of Year
(e)
,ICCOUntCredited
thl
AIItOUnt
(c)
1 Centralia Sale 254.11, 028 & 038 407.41 1,494,265 176,335 8,438,779
2
3 FAS 109 - Accounting for lncome Taxes 254.18 190.18 53,100 48,709 360,57t
4
5 Nez Perce - Regulatory Liability 254.22 186.80/557.2 16,50€s18,95C 902,444
6
7 Rate Base Credit - WA 254.43 253.70 2,915,40C
I
I BPA Residential Exchange 254.45,028 & 038 407.45 1 1 ,1 56,707 12,470,Ue 208,098
10
11 Mark to Market FAS133 - Reg Liab 254.74 176.741245.7 3,604,007 13,868,6't2 10,264,605
12
13
14
15
16
17
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 19,239,98r 27,483,422 20.174.502
tFERC FORM NO.2 (ED.12-94)Page 278
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Reoort ls:
(1) E An originat
(2) ! A Resubmissior
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
Dec.31,2002
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operaling revenues for each
prescribed account, and manulacturgd gas revenues in total.
2. Natural gas means either natural gas unmixed or any
mixture of natural and manulactured gas.
3. Report number of customers, columns (l) and (g), on
the basis of meler, in addition to the number ol llat rate ac-
counts; except that where separale meter readings are
added for billing purposes, one customer should be counted
lor each group of meters added. The average number of
cuslomers means the average of twelve ligures al the close
ol each month.
4. Reporl quantities ol natural gas sold in Mcf (14.73 psia
at 60 degrees F). lf billings are on a therm basis, give the Btu con-
tenls of the gas sold and the sales converted to Mcl.
5. l, increases or decreases from previous year (col-
umns (c), (e) and (g), are not derived lrom previously
Lrn(
No.
Title of Account
ht
OPERATING REVENUES
Amount for Year
(ht
Amount for
Previous Year
/al
1 GAS SERVICE REVENUES
2 4E0) Hesidential Sales 183.963.929 179.584,41
e 481) Commercial and lndustrial Sales
4 limarr (or uomm.) (uee tnstr. 6)104,9 t3, /91 104,012,334
Larqe (or rno.) (5ee rnsrr. b)7.126.920 1 1 .129,400
6 482) Other Sales to Public Authorities
7 484) lnterdeoartmental Sales 499.585 523,959
8 TOTAL Sales to Ultimate Consumers 296.564.225 295,250,104
9 483) Sales lor Resale 694.944 1.761.597'to TOTAL Nat. Gas Service Revenues 297.259.169 297,Q1't,tO1
11 Hevenues trom Manufactured Gas
12 TOTAL Gas Service Bevenues 297.259.169 29t,O't't,to|
13 OTHER OPERATING REVENUES
14 485) lntracompany Transfers
l5 487) Forteited Discounts
16 (488) Misc. Service Revenues 251 ,976 211,056
17 46Y) HeV. IrOm trans. oI uas oI ulners 9.695.204 8.882.255'18 +vut Dates oI Froo. trxl. Irom t\al. Lias
t9 491) Rev. Irom Nal. Gas Proc. bv Others
2t)492) lnctclental Gasolrne ancl oil sales
2',1 493) Rent from Gas Propertv
22 494) lnteroepartmental Hents
23 495) Other Gas Revenues 2.616.164 2,537.687
24 lo IAL ulher 9oeratrno Hevenues 12,563,344 1,630,998
25 r rJ rAL uas uDeralrnq Hevenues 309.822.513 3U6.04Z.09V
26 Less) (490) Hrovrsron lor Hale Hetunds
2/r L, r AL UaS Uperaung Hevenues NeI oI
Provision for Refunds
309,822,513
2A urs. rype sares oy srares (rncr. Maln Llne
Sales to Resid. and Comm. Custrs.)
:266,93t,tZU
29 Marn Lrne rnouslnat uates (tnct. Matn
Line Sales to Pub. Authorities)
7,126,920
30 Sales tor Resale 694,944
31 Other Sales to Pub. Auth. (Local Dist. Onlv)
32 lnterdepartmental Sales 499.585
33 lu IAL (same as Lrne 10. L;olumns (b) and (d))zvt,zcv,tov
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FERC FORM NO.2 (ED.12.86)Page 300
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Name of Flespondent
Avista Corporation
This Reporl ls:
(1) E An original
(21 n A Resubmission
Date of Reporl
(Mo, Da, Y)
April 30, 2003
Year of Report
Dec. 31, 2002
GAS OPEBATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a loot- per day ol normal requirements. (See Account 481 ol the
note. Uniform System of Accounts. Explain basis of classificatron
6. Commercial and lndustrial Sales, Account 481, may be in a footnote.)
classilied according to the basis ol classillcation (Small 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 it such basis ol classification is not generally or decreases.
greater than 200,000 Mcl per year or approximalely 800 Mcl
THERMS OF NATUFIAL GAS SOLD AVG. NO. OF NAT. GAS CUSTRS. PER MO
Quantity for Year
H)
Quantity for
Previous Year
b)
Number for Year
(f)
Number for
Previous Year
(q)
Lin€
No.
1
199,666,4U5 19E.413.26 /254.lut)24v,bsu 2
3
126,219,715 126,869,447 30,62iJ 30,355 4
11.242.261 15.523,094 315 324
6
631.864 767.820 38 37
33t,|69,JZC lz 341,5t3,62E 2A5,At6 280.370 I
2,306,160 4.830.610 1 o
340.0E6,4E5 346,404.238 2E5,Etl 280,37'l 0
NOTES
Quantities of nalural gas expressed in therms:
to convert therms to MCF, divide therms by a
BTU factor of 10.20
(1) lncludes ($12,832,438) unbilled revenues.
(2) lncludes (8,324,186) therms relating to unbilled revenues.
2
3
4
5
6
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LI
20
'21n
23
24
25fr
27
2A
29
30
3'.|
32
2.)
FERC FORM NO.2 (ED. 12-86)Page 301
Name ol Hesponoent
Avista Corp.
lhts Heport ls:(t)[ An Original
(2)[ A Resubmission
uate oI Hepon
(Mo, Da, Yr)
April30,2003
Year or Heporr
Dec. 31, 2002
DISTRIBUTION TYPE SALES BY STATES
'I . Report in total I0r each State, sales by classes ol serv-
ice. Report main line sales to residential and commercial
consumers in total bv States. Do not include field and main
line sales to industrial consumers; these should be reported
on page 306, Field and Main Line lndustrial Sales ol
Natural Gas.
Names of State
h)
Total Residential, Commerical and lndustrial Besidential
LII IE
No.
uperatng Hevenues
(Total of (d), (f) and (h))
b)
lherms
(Totalof (e), (g) and (i))
lc)
Operating Revenues
(d)
't
2
3
4
5
o
7
8
o
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
JO
37
38
eo
40
41
42
43
44
45
46
State oI Washington
State of ldaho
State of Oregon
State of California
Totals
150,972,721
58,954,452
67,101 ,07C
19,036,397
296,064,640
169,471,377
66,893,758
79,922,630
20,860,696
337,148,461
9:z,/5/,5U9
36,888,657
40,894,191
13,423,572
183,963,929
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FERC FORM NO.2 (ED 12-88)Page 302
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Name of Responclent
Avista Corp.
r nrs Hepon ts:(t)[ en Original
(2)f] A Resubmission
uare or Hepon
(Mo, Da, Yr)
April30,2003
Year ot Report
Dec.31,2002
DISTRIBUTION TYPE SALES BY STATES (Continued)
2. Pt)vide totals for sales within each State.
3. Natural gas means either natural gas unmixed, or any
nixture ol natural and manufactured qas. State in a footnote
the components ol mixed gas, i.e., whether natural and oil
refinery gases, natural and coke oven gases, elc., and specify
lhe aooproximate oercentaoe of natural oas in the mixture.
Hesidential {Continued)commerical lndustrial
lnerms
b)
Operating Bevenues
(t)
Therms
(s)
Operating Revenues
(h)
lnerms
(i)
No.
99,538,153
39,797,088
45,551 ,016
14,800,228
199,686,485
54,593,107
20,789,795
23,978,064
5,612,825
104.973.791
65,25't,212
24,352,120
30,555,855
6,060,468
126,219,7',t5
3,622,105
1,276,000
2,228,815
0
7,126,920
4,681,952
2,744,550
3,815,759
0
11,242,261
1
2
3
4
5
6
7I
o
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
FERC FORM NO.2 (ED 12-88)Page 303 Next page is 310
Nerne of Respondent
Avista Corp.
This Reoort Is:(l) ffi en origina
(2) fl A Resubmission
Date of Repon
(Mo, Da, Yr)
April 30,2003
fear of Repon
)ecember 31, 2002
GAS OPERATION AND MAINTENANCE EXPENSES
lfthe iunount for previous year is not derived from previously reponcd fizures. explain in footnotes
Lint
No.
Amount
(a
Amount for
Current Year
(b)
Amount for
Previous Year
I I. PRODUCTION EXPENSES
A. Manufactured Gas Production
3 Mmufactured Gas Production (Subm.it Suoolemental Statement)
4 B. Naoral Gas Productron
B I . Naruml Gas Production md Gathering
6 l)neret i nn
7 750 Ooeration Supervision and Ensineerine
8 751 Production Mans md Records
9 752 Gas Wells Exoenses
l0 753 Field Lines ExDenses
7-54 Field Comoressor -Station Exnenses
t2 755 Field Comoressor Station Fuel and Power
l3 756 Field Measurine iurd Reeulatins Station Exoenses
l4 757 PurificationExmnses
t-5 758 Gas Well Rovalties
l6 759 Other Exoenses
t7 7(r0 Renrs
t8 TOTAL Ooeration (Enter Total of lines 7 thru l7)0
l9 \4ainlenence
20 761 Maintenmce Suneruision md Ensineerins
2t 762 Maintenance of Structures and Imorovements
)a 763 Maintenance of Producins Gas Wells
21 7(r4 Mainrenance of Field Lines
24 765 Maintenance of Field Comoressor Station Eouioment
25 766 Maintenrnce of Field Meas. and Rec Sta Fnrrinment
26 767 Maintenance of Purification Eouioment
27 768 Maintenance of Drilline and Cleanine Eouipment
28 769 Maintenzrnce of Other Equipment
29 TOTAL Maintenance (Enter Total of lines 20 thn 28)0
30 TOTAL Naturul Gas Production and Gatherins (Total of lines I 8 and 29)0
3 82. Products Extraction
32 )neration
JJ 770 Ooeration Suoervision and Enqineerins
34 771 Ooerotion Lrbor
35 772 Gas Shrinkage
16 773 Fuel
st 774 Power
18 775 Materials
39 776 Ooemtion Suoolies and Exoenses
40 777 Gas Processed by Others
4t 778 Royalties on Products Extracted
4 779 Marketins Exoenses
43 780 Products Purchased for Resale
781 Variation in Products lnventorv
45 (Less) 782 Extracted Products Used bv the Utilitv-Credit
46 783 Rents
47 TOTAL Ooention (Enter Total of Lines 33 thru 46)0
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FERC FORM NO.2 (ED T2.88)Page 320
FERC FORM NO.2 (ED I2.88)
tlame of Respondent
Avista Corp.
This Reoon ls:(l) E An originat
(z) n A Resubmission
Date of Repon
(Mo, Du, Yr)
April 30,2003
Year of Report
December 3 1, 2002
GAS OPERATION AND MAINTENANCE EXPENSES
-ine
\,1o.
Amount
(u
Amount for
Current Year
tht
Amount for
Previous Year
lrl
9t 2. NATI.JRAL GAS STORAGE. TERMINALING AND
PROCESSING EXPENSES
9S A. Undereround Storaee Exoenses
tff )peration
l0t 8 4 ODerution Sumrvision and Ensineennp (.1.013 a nR/.
102 8 -5 Maos and Records
103 8 6 Wells ExDenses 9.984 15.90t
l04 8 7 I-ines Exnense 6
l0-5 8 8 Comoressor Station ExDenses s8.007 t42.t91
106 8 9 Comoressor Stiition Fuel and Power 7.706 r6.44t
107 R2O Measrrrinq and Requl^tine Staiion Exnenses 3.04 t 10.85(
108 821 PurificationExoenses 5.571
109 822 Exoloration and Develooment
llo 823 Gas Losses
lll 824 OtherExoenses 63.314 ? 1q(
1 825 Storaee Well Rovalties 29.607 26.31:
3 826 Rents l, t46l s58'
ll4 TOTALOoeration(EnterTotal of lines l0l thru ll3 t66.53(226.03t
5 vlaintenance
6 830 Maintenance Supervision and Engineering 31,27C 61.32
1 831 Maintenance of Structures md lmorovements t.972 t.84 I
8 832 Maintenance of Reservoirs and Wells 30.87:45.30 I
9 833 Maintenance of Lines " 5n-6.66
t20 834 Maintenance of Comoressor Slation EouiDment 66.961 97.921
835 Maintenance of Measurins and Resulatins Station EouiDment
122 836 Maintenmce of Purification Eouinment l 73J 1.70f
23 837 Maintenance of Other Equipment 55.26t 4.12(
24 TOTAL Maintenunce (Enter Total of lines I l6 ttuu I 13)r90,59:I I 8,88(
25 TOTAL Undersround Storape Exmnses (Total oflines I l4 and 124)357- I 2t 444.9t5
z6 B. Other Storase Exoenses
27 Jperation
28 8zlo Ooeration Suoervision and Ensineerins
29 841 Ooeration LaborandExoenses
r30 842 Rents
842. I Fuel
12 842-2 Power
l3 842.3 Gas Losses
34 TOTAL Operation (Enter Total of lines I 28 tku I 33)
Maintenance
l6 843.1 Maintenance Suoervision and Ensineerins
843.2 Maintenance of Structures and ImDrovements
38 843.3 Maintenance of Gas Holders
39 843.4 Maintenance of Purification Eouinment
10 843.5 Maintenance of I-iouefaction Fnrrinment
843.6 Maintenance of V:roorizinp Eouioment
R41 7 Maintenance of Comnressor Fnrrinment
143 843.8 Mtintenance of Measurins and Resulatins Eorrinment
144 843.9 Maintenance of Other EouiDment
145 TOTAL Maintenance (EnterTotal of lines 136 thru l.l4)
t46 TOTAL Other Storase Exnenses (Enter Totrl of lines I 34 and I 45'
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FERC FORM NO.2 (ED 12-88)Page 322
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Name of Respondent
Avista Corp.
Thrs Reoort Is:(l) fi nn onginat
12) fl A Resubmission
Date of Report
(Mo, Du, Yr)
April 30,2003
Year of Report
December 31. 2002
CAS OPERATION AND MAINTENANCE EXPENSES
Llne
No.
Amount
Amount for
Curent Yeu
lhl
Amount for
Previous Yeu(rl
14',C I .iorrefied Natuml Gas Teminalins and Processins Exnenses
l4t 3oeration
t4a 844.1 Ooeration Suoervision and Eneineerine
l5(844.2 LNG Processing Terminal Labor and Expenses
l5l 844.3 Liouefaction Processins l-abor and Exnenses
l5:8214.4 Liouefaction TransDonation Labor and Expenses
l5:8214.5 Measurins md Resulatins Labor and Exoenses
I.5Z 844.(r Comnrmsor Station Laborund Exoenses
155 844.7 Communication Svstem Expenses
l5(r 844.8 Svstem Control and Load Dispatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurrage Charges
l6l (Less) 845.5 Wharfase Receiots-Credit
162 845.6 Processine Liouefied or Vaporized Gas by Others
r63 846-l Gas l-osses
164 846.2 Other Exoenses
165 TOTAL Operation (Enter Tolal of lines 149 thru 164)
t66 vlaintenance
167 847.1 Maintenance Suoervision and Eneineerins
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processins Teminal Eouioment
170 847.4 Maintenance of LNG Transoonation EouiDmenl
7 847.5 Maintenance of Measuring and Regulating Equipment
172 847.6 Miantenance of Comnressor Station EouiDmenl
173 847.7 Maintemnce of Communication Eouioment
174 847.8 Maintenance of Other Equipmenl
175 TOTAI - Maintenance fEnter Total of lines 167 thn I 74)
t76 TOTAL Liouefied Nat Gas Terminaline and Processins Exo (Lines I65 & 175)
171 TOTAL Natural Gas storuse (Enter Total of lines 125,146, and 176)357.121 444.915
l7t 3. TRANSMISSION EXPENSES
179 Onerl
180 850 Onention Sunervision and Ensineerins
l8l 851 Svstem Control and Load DisDatchinp
852 Communication System Expenses
r83 853 Comnressor Strtion lnbor and Exoenses
184 854 Gas for Comoressor Station Fuel
Other Fuel rurd Power for Compressor Stations
186 856 Mains Exoenses 6.923
187 857 Measurine and Resulating Smtion Expenses
r88 858 Transmission and Compression of Gas by Others
189 859 Other Exoenses
r90 860 Rents
l9l TOTAI - Onention (Enter Total of lines I 80 thru l9O)6.921
FERC FORM NO.2 (ED 12.88)Page 323
Name of Respondent
Avista Corp.
This Reoon Is:(l) [] en Original
(2) n A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Repon
December3l,2002
CAS OPERATION AND MAINTENANCE EXPENSES
Line
No.
Amount
(a
Amount for
Current Year
Amount for
Previous Year
t.. t
3. TRANSMISSION EXPENSES (Continued)
t9a MaiDtenance
193 861 Maintenmce Suoervision urd Enpineerins
t94 862 Maintenance of Structures and lmprovements
r95 863 Mainteniurce of Mains 8 882
t9(864 Maintenance of Cbmoressor Station EouiDmenr
t9'865 Maintenance of Measuring and Reg. Station Eouipment
l9t 866 Maintenance of Communication Equipment 66,53:.
l9!867 Maintenance of Other Eouioment
20(TOTAL Maintenance (Enter Total of lines 193 thru 199)t.17'l 75.41
20 TOTAL Trzursmission Expenses (Enter Total of lines l9l urd 100)t,77-,82.34
20:,4, DISTRIBUTION EXPENSES
201 )Deration
7Ot R70 Onention Srrneruision :rnd Enpineerinq 551.02(482.7
20:871 DistributionLoadDisoatchins 17.01:
20(872 Comnressor Station l-abor md Exnenses
207
208
209
873 Comoressor Station Fuel and Power 0
874 Mains and Services Expenses 2.920- 771 ) <o( n,
875 Measurins and Reeulatine Station ExDenses-General 59.44t 57.91t
to R76 Me.srrrins and Rectrlatinc Sration F-xnenses-lndnstrirl 1.95t 5,83r
2tl 877 Measurins md Reeulatins Station Exnenses-Citv Gate Check St:nion 87.m(1i a<a
2t2 878 Meter and House Regulator ExDenses t.537.66:980.61 I
l3 879 Customer Installations Expenses t.663.39:I,509,49 I
214 880 C)ther Exoenses 1.441_75:t.49{t.62"
215 881 Rents I 13.36!64.01{
tA TOTAL Operation (Enter Total of lines 204 thru 2 8,413.23t 7 27R 50
2t7 Vlaintenance
2t8 R85 Mrinlenrnce Sunervision and Encintrrinp 35.332 30.16:,
2t9 886 Maintenmce of Structures md Imnrovements 4_57i 'l -11<
220 887 Maintenemce of Mains 1.3 17.9 r 5 t.266.2
22 888 Maintenance of Comnressor Stalion F.trinment
222 889 Maintenmce of Meas. md Res. Sta. Eouin.-General 359_631 3 I 8.82(
890 Maintenance of Meas. and Reg. Sta. Eouio.-lndustnal l5 I .47t t44.t1
224 891 Maintenmce of MeN. md Res. Sta- Fruin.-Cilv Gate Check St:rion 46.85:56.55
225 892 MaintenanceofServices 273.338 2143q
226 893 Maintenance of Meters and House Regulators 539.77(4U9.1 Z\
227 894 Maintenmce of Other F-ouiDment 30.081
228 TOTAL Maintenance (Enter Totul of lines 318 thru 227 )2.758.98:2.587.40:
229 TOTAL Distribution Expenses (Enter Total oflines 216 und ll8)l 1 .1 82,22:9.865,91
230 5. CUSTOMER ACCOUNTS EXPENSE.S
Jperation
232 901 Surewision 88.559 59,65t
233 902 Meter Readins Exoenses t -496.434 1.714.241
234 903 Customer Records:rnd Collection ExDenses 5.42s.781 5.296.07 t
23s 904 UncollectihleAccounts , t4(J,9b.I .611.24
236 905 Miscellaneous Customer Accounts Exoenses 616.85i 678.652
211 TOTAL Customer Accounts Expenses (Enter Total of lines 231 thru 136)9,774,@{9.379,87
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FERC FORM NO, 3 (ED I:-88)Page 324
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\,larne of Respondent
Avista Corp.
fhis Reoon Is::l) fi Rnoriglnut
'.2) fl A Resubmission
Date of Repon
(Mo, Da, Yr)
April 30,2003
Yeu of Repon
December 3l, 2002
GAS OPERATION AND MAINTENANCE EXPENSES
If the amorrnt for nrevious ver is not derived frcm nreviouslv remrled fisures- exnlain in foolnotes
Line
No.
Amount
Amount for
Current Year
Amounl for
Previous Year
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Speration
240 907 Sunervision
24 908 Customer Assistance ExDenses 3. I r 5.433 2.182.62(
242 9O9 Infomational and lnstructional Exoenses 87.33 l 8.82i
243 910 Miscellmeous Customer Service turd Informational Exoenses r05-5 75.1 l (
ai/TOTAL Customer Service and Information ExDenses (Lines 240 thru 243)3.308.35(1 17ri 56(
7. SALES EXPENSES
24(Jperation
?4',9l I Sunervision 52c,26.80',
24t 912 Demonstratine and Selline Expenses 507.681 55't.47(
24\gl3 Advertisine Exnenses 106.461 89,84S
25(916 Miscellaneous Sales Exoenses 7'1.21(tzt.4s,
251 TOTAL Sales Exoenses (Enter Total of lines 247 ttuu 250)696.907 795.62t
25,8, ADMINISTRATIVE AND GENERAL EXPENSES
253 )neration
251 920 Adminisrative and General Salaries 5. l 38.78(3-817.771
255 921 Office Suoplies and Expenses 2.183,79t 1,784,26
25((Less) (922) Administrative Exoenses Transferred-Cr.-6.61 (20-980'
25i 923 Outside Services Employed 3.332.301 2-535.95(
251 924 Propeny Insurance 239.O7',1 28,1 6(
2Sl 925 Iniuries and Darnaees 8't7,94',56r 282
2fi 926 Emolove Pensions and Benefits 417.441 45 1.1 54
26t 927 FranchiseReouirements
)41 928 Reeulartory Commission Expenses L2 r 3.921 938,60i
263 (Less) (929) Dunlicate Charses-Cr.zil 930.1 General Advenisine Exoenses 64(37(
265 930.2 Miscellaneous General Expenses t,001,57r 97 l, lgE
266 931 Rents 2.194.241 ) OR,A A1I
267 TOTAI . Onemtion (Enfer Total of lines 254 thru 266)t6.6t7.52(t3.252.221
268 Vlaintenmce
269 935 Mainteniurce of General Plant 960.33i 767.62t
270 TOTAI - Administrrtive md (;eneral ExD (Total of lines 267 and 269)t't ,577.86(14,019,84,
27t TOTAL Gas O. and M. Exn (Lines 97.177.201.229.237.244.251-nd27O\2563sft.t21 250.4-55. l6(
NUMBER OF GAS DEPARTMENT EMPI-OYEES
I . The data on number of employees should be reponed
for the payroll period endint nearest tooctober3l,or
any payroll period ending 60 daysbeforeorafterOcto-
ber 3 l.
2. If the respondent's payroll for the reporting period
includes any special constrction personnel, include such
emolovees on line 3- rnd show the number of such soecial
construction employees in a foonote.
3. The number of employees assignable to the gas
department from joint function of combinationutilities
may be determined by estimate. on the basis of employee
equivalents. Show the estimated numberofequivalent
employees attributed to the gas departmentfromjoint
functions.
l. Payroll Period Ended (Date) December 3l,2OO2
2. Total ReErrlar Rrll-Time Emnlovees 141
3. Total Pan-Time and Temoorarv Emolovees allocation of General Emolovees 33
4. Total Emoloyees 376
FERC FORM NO. 2 (ED 12-88)Page 325
tr A Resubmission
(Mo, Da, Y)
April 30, 2003
Other Gas Suoolv Exoenses (Account 813
cleady indicate the nature of such expenses. Show
maintenance expenses, revaluation ot
monthly encroachments recorded in Account 117.4
not associated with storage separately. lndicate the
functional classification and purpose of property to which
any expenses relate. List separately items ol $250,000
or more.
Labor
Transportation
Misc. Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Etc.)
Canadian Regulatory Atlairs
Labor
Misc. Other Expenses (Phone Bills, Professional SeMces, Gas Reports, Travel, Etc.)
Send Out Modeling
Maintenance Fees
Labor
Misc. Other Expenses (Phone Bills, Professional Services, Postage, Etc.)
2
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
FERC FORM NO.2 (ED 12-96)Page 334 t
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\ame of Respondent
Avista Corp.
This report is:
(1) (X)An Original
(2) O A Besubmissio
Date of Report
(Mo, Da, Yr)
April30, 2003
Year of Report
Dec. 31, 2002
MISCELLANEOUS GENEBAL EXPENSES (Account 930.2) (Gas)
1. Provide the information requested below on miscellaneous
Jeneral expenses.
2. For Other Expenses, show the (a) purpose, (b) recipienl and (c) amounl of such items.
List separately amounts of $250,000 or more however, amounts less than $250,000 may
be grouped if lhe number of items of so grouped is shown.
Line
No.
Description
/al
Amount
tbt
nduslrv Association Dues {0930.25)199.76S
2 :xperimental and General Research Expenses
a. Gas Research lnstitute (GRl)
b. Other
3
rublishing and Distributing lnformation and Reports to Stockholders; Trustee, Registrar and Transfer Agent
:ees and Expenses, and Olher Expenses of Servicino Outstandino Securities of the Respondent 298.492
4
5
6
7I
o
10
'I 1
12
13
14
15
'16
17
18
19
20
2'l
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
50
51
lOther Expenses
I
lDirectors Fees and Expenses (0930.27)
lErik J. Anderson
lKristianne Blake
lDavid A. Clack
lsarah M. R. Jewell
lJessie Knight
I.tonn r. xetty
lErg"n" W. Meyer
laouuy scttriot
Row Lewis Eiguren
R. John Taylor
Dan Zaloudek
WA/IO Ber wA"/lD Exp
7,694 183
8,939 U
6,362 560
5,709 142
3,761 1,241
5,253 I
2,104 2,362
1,419 409
6,751 386
5.526 813
r,438 349
OF/CA Ret ORI/CA Exp
4,006 96
4,655 33
3,313 29r
2,973 74
1,959 646
2,7 4
1,095 r 230
739 213
3,515 201
2,878 424
749 182
Total
Miscetlaneous General Expenses (0930,20)
Labor
2 ltems Under $5000
54.956 6,517 28,617
93,484
Total 201,722
Gommunity Relations (0930.22)
Labor
#REF!
Total
Educational - lnlormatlonal (0930.23)
Labor
1 ltem Under$5000
Other Miscellaneous General Expenses (0930.29)
Labor
Spokane Regional Business Center
Oth€r Miscellaneou6 General Labor (0930.26.28)
93027
93028
132,105
31,607
5,475
38,178.05
11,979
13,691
10,526
8,898
7,607
8,000
6,791
2,780
10,853
9,641
2,718
193,806
7,916
114,766
17,339
31,l41
466
79
5,396
36654.05
1,524
52 TOTAL 1.000.832
FERC FORM NO. 2 (ED. 12-96)Page 335
Name of Respondent
Avista Corporation
This Reoort ls:
(1) E Anoriginal
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
n"" r,l!ffii"'"d I
DEPRECIATION, DEPLETION, AND AMORTZATION OF GAS PLANT (Accounrs 4O3,404.1,4U.2,4M.3,405)
(Except Amortization of Acquisition Adiustments)
1. Report in Section A the amounts of dcpreciation
expense, depletion and amortiization for the accounts in-
dicated and classitjed according to the plant tunctional
groups shown.
2. Report all available intbrmation called for in Sec-
tion B lbr the report year 1971,1974 and every tifth year
thereafter. Report only arurual changes in the intervals
between the report years (1971, 1974 ar,d every fifth year
thereat'ter).
Report in column (b) all depreciable plant balances to
which rates are applied and show a composite total. (Il
more desirable, report by plant account, subaccount or
functional classitications other than those pre-printed in
column (a). Indicate at the bottom of Section B the
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Line
No.Functional Classitlcation
(a)
Depreciation
Expense
(Account 403)
(b)
Amortization and Deple-
tion ol Producing Natural
Gas [.and and Land
Rights (Account 404.1)
(c)
1HJ:ffi:::oo,!
Storaee Land and Land
Rlghtl (account 4o4l
I lntaneible plant
)Prodution plant. manufactured sas (70.469\It
J Production and gathering plant,
natural sas r
4 Products extraction olant
5 Undersound sa-s storase Dlant 401.746
6 Other storase olant
7 Base load LNG terminating and
orocessins olant -,8 Transmission olant 67.103\
9 Distribution plant 12,094,000 I
10 General plant 462973
1l Common General plant-Allocated t,285,522
t2
l3
t4
15
16
17
l8
19
20
2l
22
23
24
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FERC FORM NO.2 (ED. t2-86)Page 336
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Name of Respondent
Avista Corporation
This Reoort Is:
18 An original
! A Resubmission
(l)
(2)
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
Dec.3l,20O2 I
DEPRECLATION, DEPLETION, AND AMORTZATION OF GAS PLANT (Accounts 403,404.1,404.2,404.3,405)
(Exceot Amortization of Acouistion Adiustments) (Continued)
nuwler in which column (b) balances are obtained. If
average balances, state the method of averaging used.
For column (c) report available information tbr each plant
functional classification listed in column (a). If composite
depreciation accounting is used. Report available intbr-
mation called for in columns (b) and (c) on this basis.
Where the unit-ot'-production method is used to determine
depreciation charges, show at thebottomof Section B
any revisions made to estimated gas reserves.
3. If provisions for deprciation were made during the
year in addition to depreciation provided by application
of reported rates, state at the bottom of Section B the
amounts and nature of the provisions and the plant itern-s
to which related.
Section A. Summarv of Depreciation. Depletion. and Amortization Charees
Amortization of
Other Limited-term
Ga-s Plant
(Account 404.3)
(e)
Amortization of
Other Ga-s Plant
(Account 405)
(fl
Total
(b to t-)
1 r')
Functional Classifi cation
(a)
Line
No.
t?6.517 126.517 Intaneible olant I
(70.469 Prodution olant. manufactured sas 2
Production and gathering plant,
natural sas
J
Prodr"rcts extraction olant 4
407.746 Undersound sas storape olant 5
Other storase olant 6
Base load LNG terminating and
orocessins olant
7
(67.1O3 Iransmission olant 8
l2-094-000 Distribution olant 9
462,973 General plant 10
569.224 t,854.746 ommon seneral olant-Allocated 1l
L2
13
l4
15
16
t7
18
t9
20
21
22
23
24
695.741 0 14.808.410 TOTAL 25
FERC FORM NO.2 (ED. 12-86)Page337
hls ReDort ls:l) llll An original
(2) E A Resubmission
(Mo, Da, Yr)
April28,2003
complete
Dec.3l,2OOZ
Functional Classifications
I
2
3
4
5
6
7
8
9
l0
ll
t2
l3
t4
15
t6
t7
l8
t9
20
2t
22
23
24
25
26
27
28
29
30
3l
32
JJ
34
35
36
5l
38
39
40
4t
42
43
44
45
46
47
48
49
350
351
352
352.2
352. I (Leasehold Improvements)
352.3
353
354
355
356
357
Total
2305
23tt
Total
Trarrsmission Plant:
2,366
2367
2369
2370
Total
I'tistribution Plant:
375.t
376
378
379
380
381
382
383
384
385
387
Total
Intangible
General Plant:
390. I
390.2
391.1
393
394
395
397
398
Total
Total Gas Plant
24
1,062
5,542
180
254
6,1228ll
1,882
154
404
1.623
119
0
0
0
0
0
562
212',583
4,037
1,722
152,588
48,41t
0
0
0
2,330
1
422,233
3,063
2.364
t2
10
84
1,983
874
1,544
34
FERC FORM NO. 2 (ED. 12-86)Page 338-4
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Report the inlormation specilied below, in the order given, for the respective income deduction and interest charges accounts.(a) Miscellaneous Amortization
(Account 425) - Describe the nature of items included in this account, the contra account charged, the total of amorlization charges lor the year, and the period ol
amo(ization. (b) Miscellaneous lncome Deductions-Report the nature, payee, and amount ol olher income deductions lor the year as required by Accounts 426.1,
Donations; 426.2, Lile lnsurance; 426.3, Penalties; 426.4, Expenditures lor Cerlain Civic, Political and Related Aclivities; and 426.5, Other Deductions, ol the
Unilorm System ol Accounts. Amounts ol less the $250,000 may be grouped by classes within the above accounts. (c) lnterest on Debt lo Associated Companies
(Account 430)-For each associated company that incuned interest on debt during the year, indicate the amount and interest rate respectively lor (a) advances on
notes, (b) advances on open account, (c) notes payable, (d) accounls payable and (e) other debt, and total interest. Explain the nature ol olher debt on which
interest was incuned during the year.
361,592
Name of Respondent
Avista Corp.
This report is:
(1)(X)An Origin
(2) O A Resubr
Date of Reporl
(Mo, Da, Yr)
April30, 2003
Year of Report
Dec.31 ,2002
Particulars Concernino Certain lncome Deduction and lnterest Charqes Accounts
Line
No.
Description
h)
Amount
(b)
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
3o
31
32
33
34
35
36
37
38
39
40
Acct. 425.00 - MISCELLANEOUS AMORTIZATIONS
Gas olant acouisition adi. Applicable to purchase of CP National,
Oreoon & California distribution svstem. Contra account 1 15.00.1,323,416
Total- 425.00
Acct. 426.10 - DONATIONS
El Dorado Countv (Proiect Share)15.000
Pullman Chamber of Commerce 12,148
Sookane Neiohborhood Action 150,000
Team ldaho lnc.25,000
Items Under $10.250 159.444
Total426.10
Acct.426.20 - LIFE INSURANCE
Officers Life 101,418
SERP 1,146.71
fotal426.20 1,248,131
Acct. 426.30 - PENALTIES
Gas Safetv Audit Fine 80,927
Items Under $2.000 2,284
Total426.30 83,212
Acct.426.40 - EXPENDITURES FOR CERTAIN ClVlC, POLITICAL,
AND RELATED ACTIVITIES
Lobbyist 415.406
Leoal Services 47,322
Items Under $42.500 997,688
Total426.40 1 ,460,41€
Acct.426.50 - OTHER DEDUCTIONS
Kettle Falls Reserve Amortization -228,48C
Executive Deferred Compensation -710,067
Cash Reduction for PGE Monetization 352.50C
FuelCell Retirement -29.708
Total426.50 -615,755
41
FERC FORM NO.2 (ED. 12-871 Page 340
Name of Respondent
Avista Corp.
This report is:
(1) (X)An Origin
(2) ( )A Resubr
Date of Reporl
(Mo, Da, Yr)
April30, 2003
Year of Report
Dec.31,2002
Particulars Concerninq Certain lncome Deduction and lnterest CharEes Accounts
Line
No.
Description
h)
Amount
(b)
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
Acct. 431.00 - OTHER INTEREST EXPENSE
Customer Deoosits 295,1 1€
Misc. Oreoon Deferrals and Amortizations 156,469
lnterest, WA PGA 763,818
lnterest, lD PGA 205,966
Other lnterest 125,731
Misc. AP 2.467
lnterest on DSM Proqram Liabilitv 2.810
Misc. lnterest 1.697
Executive Deferred Compensation 67.600
Total 431.00 1.621.673
41
the information specified below, in the order given, for the respective income deduction and interest charges accounts.(a) Miscellaneous Amortization
Accounl 425) - Describe the nature ol items included in this account, the contra account charged, the total ol amortization charges lor the year, and the period ol
(b) Miscellaneous lncome Deductions-Report the nature, payee, and amounl ol other income deductions lor the year as required by Accounts 426.1 ,
426.2, Lile lnsurance; 426.3, Penalties; 426.4, Expenditures lor Certain Civic, Political and Related Activities; and 426.5, Olher Deductions, ol the
System of Accounts. Amounts ol less the $250,000 may be grouped by classes within the above accounls. (c) lnlerest on Debt lo Associated Companies
430)-For each associated company that incuned interest on debt during the year, indicate the amount and lnterest rate respectively for (a) advances on
(b) advances on open accounl, (c) notes payable, (d) accounts payable and (e) other debt, and total interest. Explain the nature ol other debt on which
was incuned during the year.
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IFERC FORM NO.2 (ED. 12-87)Page 340.1
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I This Page Intentionally Left Blank
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Xl An Original
lA Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
1. Report below details ot regulatory commission expenses incurred during the 2. ln column (b) and (c), indicate whether the expenses were
assessed by a regulatory body or were othenvise incuned by
the utility.
year (or in previous year, i, being amortized) relating to formal cases belore
regulatory body, or cases in which such a body was a party.
Description
(Furnish name ol regulatory commission or body, the
d@ket numbeL and a description of the case.)
Expenses
ol
Utility
Total
Expenses
lo Date
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
u
35
36
37
ENERGY REGULATOFY COMMISSION
Cases Doc its:CP02-39,40,41,42,CP02-4,CP93-61 I,
7,GT02-503,RP00-412,8P00-414,RP01 -94,RP02-1 64,
l 69,RP02-r 91,RP02-272,HP02-308,8P02-323,RP02-331,
,RP02"344,RP02-362, RP02-39r,RP02-4 r 0,RP02451,
,RP02-69,RP03-1 8,8P03-41,RP03-68 & 70
. Electric-Docket *s: UE-01 I 595,UE-020344,UE-020352,
{20471,UE{20635,U8-020699,UE-020765,UE-02 r 052,
-021 124,UE-021 123,UE-021455,UE"02r 52r,UE02l 699,
.0021731
Misc. Gas - Docket #s: UG-020219,UG-020218,UG-020345
uG-020472,UG-020575,UG-020700,UG-02 1 043,UG-02 1 258
1456,UG{21 s84,UG-02r 639,UG-021 639
Electnc- Dockel *s:AVU-E-02-2,AVU-E-02-3,AVU-E-02-4
.02-5,AVU-E-02{,AVU-E-02-7,AVU-E-02-8
*s: 02-01 -E.02-03-E,02-04-E
Docket f s: GNB-E-02- l.GNR-E-02-2
Gas - Dockel {ts:AVU-G-01 -3,AVU-G-02-1.AVU-G-02-2
*s: 02-01 -G,02-024,02-03-G,02-04-G
#s: UM-903,UM-1056,AH-357/427,UG-148,UF41 53/4079
Advice *s: 0l-8-G,02-1 -G,02-2-G,02-9-G,02-1 0-G
.1 1-G,02-12-G,02.13-G
0r -05-033,01 -07-026,01 -08-065,02-r 0-040,02-l 2-01 1
EXPENSES
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IFERC FORM NO. 2 (ED. 12-96)Page 350
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NanE of Respondent
Avista Corp.
This report is:
IX] An Original
[ ]A Resubmission
Date ol Report
(Mo, Da, Y0
April 30, 2003
fear Ending
)ec. 31, 2002
REGULATORY COMMISSION EXPENSES (Account 928)
3. Show in column (k) anyexpenses incurred in prioryears 5. List in column (l), (g), and (h) expenses incurred during year
that are being amortized. List in column (a) the period of which were charges currently to income, plant, or other accounts.
amortization. 6. Minor items (less than $250,000) may be grouped.
4. ldentify separately all annual charge adiustments (ACA).
EXPENSES INCURRED DURING YEAR AMORTIZED DURING YEAF
Deferred in
Account 182.3
End ol Year
/t\
Line
No.
CHARGED CURRENTLY TO
Delerred to
Account 182.3
/i\
Contra Account
/i\
Amounl
tkl
Department
/f\
Account No.
1o\
Amount
(h)
Electric
Electric
Gas
Electric
Gas
Gas
Gac
0928
0928
1 928
0928
1 928
2928
,aca
2.236,600
1,1 50,562
4&,672
655.91 8
237,976
408,700
102.571
1
2
J
4
5
6
7
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I
10
11
13
15
16
17
18
19
20
22
23
24
25
FEBC FORM NO.2 (ED. 12-96)Page 351
I
Name of Respondent
Avista Corp.
This Reoort Is:(l) El An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
Dec.3l,2002
DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages
lor the year. Segregate amounts originally charged to clear-
ing accounts to 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 may be used.
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Line
No.Classification
(a)
Direct Payroll
Disrribution
(b)
Allocation of
Payroll Charged
for Clearing
Accounts
(c)
Total
(d)
I Electlic
7.448.60t
2 Joeration
3 Production
4 Transmission t.146.532
5 Distribution 4,899,800
6 Customer Accounts 4.454.808
7 Customer Service and Informational 43.424
8 Sales 516,401
9 Administrative and General 9;737.935
0 TOTAL Operation (Enter Total of lines 3 thru 9)28.847.501
I Maintenance
2 Production
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3 I ransmlsslon
4 Distribution 3.938.933
5 Administrative and General 140
6 TOTAL Maintenance (Enter Total of lines 12 thru 15)8,l2l,501
7 Iotal Operation and Maintenance 1f,ml[f|8 Production (Enter Total of lines 3 and 12)
9 Transmission (Enter Total oflines 4 and l3)
20 Disrribution (Enter Total of lines 5 and l4)8.838.733
2l Customer Accounts (Transcribe from line 6)---nv5a30E22Customer Service and Information (Transcribe from line 7)43,424
23 Sales (Transcribe fiom line 8)-- -- ---tt6-4otl
24 Administrative and General (Enter Total of lines 9 and l5)t0.428.015
25 TOTAL Oper. and Maint. (Total ol lines l8 thru 24)36,969,W2 7.285 38.546.287
26 Gas
21 eratlon
28 Production - Manufactured Gas
29 Production - Natural Gas (lncludins Exol. and Dev.)
30 Other Gas Supplv 33s,330
3l Storage, LNG Terminaling and Processing
32 Transmission
33 Dlstnbutlon 5,O74,534
3,809.77934Customer Accounts
35 Customer Service and Intbrmational lll
16 Sales 3 10.45 I
37 Administrative and General 3.777.353
38 TOTAL Operation (Enter Total of lines 28 thru 37)13.419.289
39 Malntenance
40 Production - Manufactured Gas
4t Production - Natural Gas
42 Other Gas Supolv
43 Storage, LNG Terminaling and Processing
44 Transmission
45 Distribution 1.597.762
46 Administrative and General 183.084
4'1 TOTAL Maintenance (Enter Total of lines 40 thru 46)1.780.846 I
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FERC FORM NO.2 (ED 12-88)Page 354
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Name of Respondent
Avista Corp.
This Reoort Is:(l) lll An Original
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Yeiu of Report
Dec. 31,2002
DISTRIBUTION OF SALARIES AND WAGES (Continued)
Line
No.Classification
(a)
Direct Payroll
Distribution
tht
Allocation of
Payroll Charged
for Clearing
Accounts
(c)
Total
(d)
Cas (Continued)
48 Iotal Ooeration 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 Suooly (Enter Total of lines 30 and 42)33
52 Storage, LNC, Terminaling and Processing (Total of lines
3 I and 43)
53 Transmission (Enter Total of lines 32 and 44)
54 Distribution (Enter Total of lines 33 and 45)6.672.296
55 Customer Accounts (Transcribe from line 34)
56 Customer Service and Informational (Transcribe from line 35)I I 1.842
5'l Sales (Transcribe from line 36)310,4
58 Administrative and General (Enter Total of lines 37 and 46)3.960.437
59 TOTAL Ooeration and Maint. (Total of lines 49 thru 58)15.200.135 445,043 5,645,178
60 Other Utilitv Denartments
6l Ooeration and Maintenance
62 TOTAL All Utilitv Dept. (Total of lines 25.59. and 6l )52.169.137 2.022.328 54 9 t.465
63 Utilitv Plant
64 Construction (By Utility DeDartments)
65 Electric Planr I 5, r 65,287 .420.734 6.586.021
66 Gas Plant 4.96t.097 271.180 5,232,277
67 Other
68 TOTAL Construction (Enter Total of lines 65 thru 67)20.t26.384 1,69 914 2l .8 18.298
69 Plant Removal (Bv Utilitv Deoartment)
70 Electric Plant 603.682 (3301 602,352
7l Gas Plant 53.810 725 54.535
'12 Other
73 TOTAL Plant Removal (Enter Total of lines 70 thru 72)657.492 (605 656.887
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)
Prepaymenrs (165)
Preliminary Survey and Investigation (183)
Small Tool Expense (184)
Miscellaneous Deferred Debits ( I 86)
Capital Stock Expense (214)
Merchandising Expenses (4 l6)
Non-operating Expenses (4 I 7)
Expenditures 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
32,503
54,6M
34,601,080
0
369,904
780,4 r 8
257,273
I, 182,363
l,339, I 82
761,378
536. r 08
39.914.813
4t
I,830
6,477
26.646
0
|,579
2t,390
920
(1,165,372,
(1,320,122'
0
(7s7,222"
(529,804"
(3.713.637',
4t
0
34,333
6l ,081
34,627,726
0
371,483
801,808
258,t93
16,991
19,060
4.1 56
6.304
36.201 t76
TOTAL SALARIES AND WACES t12.867.826 0 t12.867.826
FERC FORM NO.2 (ED 12-88)Page 355
Name of Flespondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2003
Year Ending
Dec. 31 ,2002
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
1. Report the intormation specified below lor all charges made during the year any kind, or individual (other than lor services as an employee or for
payments made lor medical and related services) amounting to
more than $250,000, including payments for legislative services,
except those which should be reported in Account 426.4
Expenditures for Certain Civic, Political and Related Activities.
(a) Name of person or organization rendering seruices.
(b) Total charyes tor the year.
2. Designate associated companies with an asterisk in column (b).
in any account (including plant accounts) for outside consultative and
professional services. These services include rate, management,
, engineering, research, financial, valuation, legal , accounting,
purchasing, advertising, labor relations, and public relations, rendered for the
respondent under written or oral arrangement, lor which aggregate payments wee
made during the year to any corporation partnership, organization of
Amount
(in dollars)
'l
2
3
4
5
6
7
8
o
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
Analytical Surveys lnc.
Bain Company
Deloitte & Touche
Hanna & Associates, lnc.
Heller Ehrman White
Marsh Advantage America
Morrison & Foerster LLP
Network Design & Management
James and Vernon PA
Paine Hamblen Coffin & Brooke
Pricewaterhouse Coopers LLP
612,651
1,288,963
s96,278
352,546
569,839
1,993,147
295,332
822,819
550,000
1,735,856
254,894
642,947
544,904
FERC FORM NO.2 (ED.12-96)Page 358 [Next pase is srz]l
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FERC FORM NO.2 (ED 12-88) Page 512
Name oI Hespondenl
Avista Corporation
I nts Heoon ls:(1) l_Xl An Original
(2) f] A Resubmission
uale oI Hepon
(Mo, Da, Yr)
April30, 2003
Year oI Hepon
Dec. 31, 2002
GAS STORAGE PROJECTS
Storaoe Ooerations (ln Dth) (Note: lniections and withdrawals are based on Aoencv
Aoreemenl ano SIaIe EencnmarK Filrnos. Aoenl manaoes sloraoe lacrlrlv ano uses rl as
needed to meet Comoanv reouirements. Schecluled iniections/withdrawals are used)
to determine payment arrangements only.)
1 Gas Delivered to Storage
2 January 0
3 February 0
4 March 0
5 April 0
6 Mav 346,673
7 June 600,000
E Julv 620,000
o Auoust 620,000
10 september 300,000
October 0
12 November 0
13 December o
14 TOTAL (Enter Total ol Lines 15 I hru 26)2.4E6,673
15 Lias wrlnorawn lrom Sloraqe
16 Januarv 757,614
17 February 445,655
't8 March 267,393
19 ADTiI E9,131
20 MaV 0
21 June o
22 JUIV 0
23 Auqusl o
24 SeDtember 0
25 uctoDer o
26 November 236,670
27 December 620,000
28 TOTAL (Enter Total oI Lines 29 Thru 40)2,416,463
r\ame or Hesponoenl
Avista Corporation
lnls Heoort ls:(1) E An Original
(2) n A Resubmission
IJate ot Heport
(Mo, Da, Y)
April 30,2003
Year ot Heport
Dec. 31, 2002
GAS STORAGE PROJECTS (Continued)
Lrn(
No.
Item
h)
I OIat
Amount
(b)
Storaoe Ooerations (ln Dekatherms)
42 Top or Workino Gas End of Year (Note)1.630,003
43 Cushion Gas (lncludino Native Gas)6,586.667
44 Total Gas in Reservoir (Enter Total of Line 42 and Line 43)8.216.670
45 Certificated Storaoe Capacitv 51.742.663
46 Number of lniection - WithdrawalWells 45
47 Number of Observation Wells 48
48 Maximum Dav's Withrawal from Storaoe
49 Date of Maximum Davs'Withdrawal
50 LNG TerminalCompanies (ln McO
51 Number of Tanks
52 Caoacitv ol Tanks
53 LNG Volumes
54 a) Received at'Shio Bail"
55 b) Transferred to Tanks
56 :) Withdrawn from Tanks
57 C) "Boil Off" Vaporization Loss
58 a) 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 amounl of gas available to the Company under thr
"Benchmark lnjectionMithdrawal Schedules for JP Storage" according to the Benchmark Filings r
and ldaho.
e Project.
l synthetic
vith Washington
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FERC FORM NO.2 (ED 12-88)Page 513
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paratel
Name of Respondent
Avista Corp.
fhis Reoort Is:
:l) IA An Original
',2) I A Resubmission
Date of Report
(Mo, Da, Yr)
April 30, 2003
Year of Report
Dec.3l.2002
TRANSMISSION MAINS
Show particulars Called for Concerning Transmission Mains*
,tne
No.
Kind of Material
(a)
Diameter of
Pipe, Inches
(b)
Total Length in
Use Beginning of
Year, Feet
(c)
Laid During
Year, Feet
(d)
Taken up or
Abandoned Durinl
Year, Feet
(e)
'I otal Length
in Use End
of Year, Feet
(f)
I
2
J
4
5
6
7
8
9
l0ll
t2
13
t4
l5
l6
L'7
18
l9
20
2t
22
23
24
25
26
27
28
29
30
3l
32
33
34
35
36
37
38
39
40
4l
42
43
M
45
Steel Coated
Steel Coated
Over 4" through 10"
4" or Less
T2,eO
26400 0
332,640 I
264001
46 TOTALS 0 359,040
se and ident held under a title other than full ownership.
FERC FORM NO. 2 (ED 12-87)Page 5 14
Name of Respondent
Avista Corp.
This Reoort ls:
(1) t! An Original
(2) f| A Besubmission
Date of Report
(Mo, Da, Y)
April30, 2003
Year of Report
Dec.31,2002
DISTRIBUTION MAINS
Show particulars Called for Concerninq Distribution Mains
-tne
No.
Kind of Material
h)
Diameter of
Pipe, lnches
(b)
TotalLength in
Use Beginning of
Year, Feet
(c)
Laid During
Year, Feet
6)
I Taken up or
Abandoned DurinI Year, FeetI r.t
TotalLength
in Use End
of Year, Feet
(f)
1
2
3
4
5
6
7
8
o
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
6,057,277
1,881,793
1,149,160
'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
0
2,640
0
0
0
0
96s
28,778
3,215
0
285,667
26,400
5,280
0
0
164,971
13,592
2,299
0
0
9,001
5,280
0
2,640
0
9,876
0
0
0
0
519
0
0
0
0
0
0
0
0
0
6,048,276
1,879,143
1,148,'160
153,610
52,622
3,109,920
902,880
612,480
15,840
0
9,607,850
1,985,841
432,050
0
0
4,741,440
765,600
58,080
0
0
lSteelWrapped
lsteelWrapped
lsteelWrapped
SteelWrapped
SteelWrapped
The WP Natural Ga
I Less than 2"I z"nt| +"toa"I 8" to 12"
I Over tz"
s Svstem
I t-ess than 2"I 2"to4"
4" to 8"
8" to'12"
Over 12"
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
The Washinqton Wi
PlasticPlastic
]Plastic
IPlastic IPlastic I
The WP Natural GaPlastic IPlastic IPlastic IPlastic IPlastic I
Less than 2"
2" lo 4"
4" to 8"
8" to 12"
Over 12"
s Svstem
Less than 2"
2" lo 4"
4'to 8"
8" to 12"
Over 1 2'
TOTALS 31,007,301 533,807 27.316 31,513,792
Note: WP NaturalGas laid pipe is net of retirements.
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IFERC FORM NO.2 Page 514-A
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Name of Respondenl
Avista Corp.
This Report ls:(r)[] An Original
(2)E A Resubmission
Date of Report
(Mo, Da, YQ
April30,2003
Year of Fleport
Dec. 31, 2002
SEFIVICE PIPES GAS
Show the particulars called for concerninq the line service pipe in possession of lhe respondent at the close of the year.
Line
No.
Type
h)
Diameter
in lnches
(b)
Number at
Beginning
of Year
(c)
Number
Added
)uring Yea
td)
lumber Bemove
or Abandoned
During Year
b)
Number
at Close
of Year
(f)
Average
Length
in Feet
(o)
1
2
3
4
5
6
7
8I
10
't1
12
13
14
't5
16
17
18
19
20
21
22
23
24
25
zo
27
Washington Water Power
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
WP Natural Gas Svstem
1' or Less
1' thru 2"
2" lhru 4'
4'thru 8'
Over 8"
1' or Less
1" 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'thru 8"
Over 8'
20,512
1,141
80
4
0
40,036
586
22
2
0
113,728
747
62
1
0
64,267
1,365
76
5
0
0
0
0
0
0
0
0
0
0
0
4,270
5
26
0
0
2,879
52
1
0
0
't71
7
0
5
0
87
3
0
0
0
0
0
2
1
0
0
0
0
0
0
20,341
1,134
80
(1)
0
39,949
583
22
2
0
1 17,998
752
86
0
0
67,146
1,417
T7
5
0
Not
Available
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
Washington Water Power
Plastic
Plastic
Plastic
Plastic
Plastic
WP NaturalGas Svstem
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS 242.6U 7.233 276 249.591
FERC FORM NO.2 Page 514-B
Name of Respondent
Avista Corp.
This Report ls:(1) tr An Original
(2) tr A Resubmission
(Mo, Da, Yr)
April30,2003
Year of Report
Dec.31,2002
CUSTOMER'S METERS
Detailed information not available.
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FERC FORM NO.2 Page 514-C
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Name of Respondent
Avista Corporation
rnrs HeDon rs:(1) I An Originat
(2) D A Resubmission
uare or F{epon
(Mo, Da, Yr)
April 30, 2003
Y ear or Hepon
Dec. 31, 2002
AUXILIARY PEAKING FACILITIES
1. Report below auxiltary lacrlrtles ot the respondent tor mnted. For other facrlities, report the rated maximum datly
meeting seasonal peak demands on the respondent'delivery capacities.
system, such as underground storage projects, liquefied 3. For column (d), include or exclude (as appropriate) the
petroleum gas installation, gas liguefaction plants, oil gas cost ol any plant used jointly with another facility on the basis
sets, etc. of predominant use, unless the auxiliary peaking facility is
2. For column (c), for underground storage projects, a separate plant as contemplated by general instruction 12
report the delivery capacity on February 1 ol the heating of the Unilorm System of Accounts.
season overlapoinq the year-end for which this report is sub-
No
Location of
Facility
la)
Type of Facility
tb)
Maximum Daily
Delivery Capacit
of Facility.
Therms
(c)
Cost
of
Facility
(ln dollars)
HI
was Facrlrty operateo
on Day of Highest
Transmission Peak
Deliverv?
Yes
b)
No
tfl
l3lalslolz
leI
1o
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
lCnenatis,
Washington
1an"n",,., washington
IPlymouth, Washington
Plymouth, Washington
Lovelock, Nevada
('l) Respondent is only a
Repondent is charged a fe
Undergound Natural
Storage Field
Undergound Natural
Storage Field
Gas
Gas
Liquified Natural Gas
Storage Tanks
Liquilied
Storage
Natural Gas
Tanks
Liquified NaturalGas
ipant in the facilities, not an o'
e for demand deliverability an
1,126,670
26,540
220,000
192,000
65,350
^rner.d capacity.
18,539,341
(1)
(1)
(1)
(1)
x
x
X
FERC FORM NO.2 (ED 12-86)Page 519
I A Besubmission
- NA'
The purpose ol this schedule is to account lor lh€ quality
of natJral gas rocoived and delivered by the respondant.
Natural gas means either natuaal gas unmixod or any
mixture ol natutal and manufiac{rrred gas.
Entor in cllumn (c ) the Dth as reporled in the
sch€dul€s indbated for the it€ms ol r€ceipts and
deliveries.
lndicated in a lootnote the quantities ot bundled sales
and transporlation gas and specity the lino on which
such quantities aro listed.
ll ths respondgnt operates two or moro systems which
arc nol interconnocted. submit separate pages tor this
purpose. Use copies ot pages 520.
Also indicate by rmtrlote the quantities ot gas not subiect
to Commission regulation which did not incur FERC
regulatory costs by showing (1) the local distribution
volurnes another jurisdictional pipelin€ d€livered lo the
local distribution company portion ol the reporting
pipeline (2) lhe quanties the reporting pipeline
or intrastate racilities and which the reporting pipoline rec€ived
through gath€ring tacilfias or intrastate faciliti€s, but not through any
ol the interstate porlion ot the reporting pipelino, and (3) the gathoring
line quaniti6s lhat were not dostined tor inbBtalo markat or that were
not transport€d through any interstata porlion ol the roporling
pip6line.
7 Also indicate in a footnote (1) th6 systom supply guanititios ot gas
that aro sbred by tho reponino pipoline, during the reporting year and
also reported as salos, Uansportetion, and compression volumes by
tho reportjng pipeline during the same reporting year, (2) ths sysbm
supply quantities o, gas that ar6 stored by the reporting pipeline during
tho reporling y6ar which th6 roporling pipeline intends to s€ll or
transpod in a futur€ r8porting y€ar, and (3) contract storage
quanititi6s.
I Also indicate th€ volumes ot pipeline production field sal€s lhat are
included in both the company's total sales tigura and tho company's
total transportation figure. Add addltional rows as necessary to
report all data, numbored 14.0t, '14.02, etc.
01 NAMEOFSYSTEM
Amount of Dth (1)
Gas of Others Received for Contract
Received trom Shiooers as Lost and Unaccounted for
Total Receiots (Total lines 3 thru 14.
Other Losses
ted For (Total lines 30 thru 35
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24
25
26
27
28
29
30
31
32
33
34
35
36
37
FERC FORM NO.2 (ED.12-96)Page 520
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0413012003
Year of Report
Dec 31,2002
FOOTNOTE DATA
518 owned by Cogent.rix, Inc.
50t owned by Mirant Americas Development, Inc.
Name of Respondent
Avista Corporation
This Reoort Is:(1)E An Original
(2)n A Resubmission
Date of Report
(Mo, Da, Yr)
April 28,2()03
Year of Report
Dec.3i.20()2
FOOTNOTE DATA
Schedule Pascz 219 Line No.: 15 Column: c
OR/CA Transmission written olT books Feb. 2002.
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FERC FORM NO.2 (ED. 12.87)Page 219
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Name of Respondent
Avista Corporation
This Reoort Is:(l)E An Original
(2)n AResubmission
Date of Repolt
(Mo, Da, Yr)
Apdl 28, 2003
Year of I{epolt
Dec.31.2002
FOOTNOTEDATA
Schedule Pase:219 Line No.: 15 Column: c
OR/CA Transmission written off books Feb. 2002.
FERC FORM NO. 2 (ED. 12-87)Pape2l9