2003Annual Report.pdf

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THIS FTLTNG S (CHECK ONE BOX FOR EACH ITEM)
Item 1: tr An lnitial(Original) OR D Resubmission No. _
Submissrbr
Item2: f| AnOrig{rCSignedForm OR D ConformedCopy
Form Approved
OMB No. 1902-0021
(Expires 3/31/2005)
FERC Form No.2
ANNUAL REPORT OF MAJOR
NATURAL GAS COMPANIES
This report is mandatory under the Natural Gas Ac-t, Sec{ions 10(a), and 16 and
18 CFR 260.1. Failure to report may result in crlminal fines, civil penalues, and
other sanc'tlons as provided by law. The Federal Energy Regulatory Commission
does not consider this reoort to be of a confidential nahrre.
Exact Legal Name of Respondent (Company)
Avista Corp.
Year of Report
Dec.31, 2003
sERC FORM NO 2 TRFV I2.98I
FERC FORM NO. 2:
ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
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IDENTIFICATION
01 Exact Legal Name of Respondent
Avista Corp.
02 Year of Report
Dec.31, 2003
03 Previous Name and Date of Change (if name changed during year)
Avista Corp.tt
04 Address of Principal Office at End of Year (Streef, City, State, Zip Code)
1411 E. Mission Ave, Spokane, WA 99202
05 Name of Contact Person
M. K. Malquist
06 Title of Contact Person
Senior VP & CFO
07 Address of Contact Person (Sfreet, City, State, Zp Code)
1411 E. Mission Ave, Spokane, WA 99202
08 Telephone of Contact Person,lncluding
Area Code
(509) 49s4%3
09 This Report ls
(1)E AnOriginal (2) tr AResubmission
10 Date of Report
(Mo, Da, YQ
0413012004
ATTESTATION
The undersigned offcer certifies that he/she has examined the accompanying report that to the best of his/her knowledge, information, and belief,
all statements of fact conEined in the accompanying report are Eue and he accompanying report is a conect statement o, the business and
affairs of the above named respondent in respect to each and every matter set forth therein during the period hom and including January 1 to
and including December 3l of the year of the repoa
01 Name
M. K. Malquist
03 Signature
,, /17rt //:,/ -.^:: /
04 Date Signed
(Mo, Da, Yr)
o4B0noo402 Title
Senior Vice President and CFO
Tide lE, U.S.C. 1(X)f makes lt a crime for any persor to knowingly and willingly to make to any Agency or Departsnent of the United States any
false, fictitious or fraudulent statements as to any matter within its jurisdic,tion.
FERC FORM No.2 (ED. 12-91)Paoe 1
Name of Respondent
Avista Corp.
This Report ls:
(1) EI AnOriginal
(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
ul30t200/.
Year of Report
Dec.31, 2003
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.
u. f. ullqutst, g.alor vlc. Preald€ats, chl.l Flaaaclrl offl.ccr ard tr..sur.r
1{11 B. lll8ar.oa lvcDu.
spok a., rt 99202
2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation.
lf incorporated under a special law, give reference to such law. lf not incorporated, state that fact and give the type
of organization and the date organized.
8tat. of lf.lhlBgtoa, IucorPor.t.d ilarch 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.
ItoE tpDllc.bl€
4. State the classes or utility and other services fumished by respondent during the year in each State in which
the respondent operated.
Elactrlc !.r'rr1cc la tha !t.E.a of x.lbr,DgtoD, Id.bo rBd llont.aa
l{rtur.l gea ecnrlcr I[ th. rtet.s of w.ehlngtoD, Idrho, OregoB, .rd Callfornla
5. Have you engaged as the principal accountiant to audit your financial statements an accountant who is not
the principal accountant for your previous year's certified financial statements?
(1) tr Yes...Enter the date when such independent accountant was initially engaged:(2) E No
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FERC FORI{ No.2 (ED.l2{7)PAGE IOI
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Name oI xesponoenl
AMsta Cop.
Inls F(emn t3:(1) [lAn odsinal(2) f--lA Resubmission
UAI€ OI KETX'TI
(tr,to, Da, Yi)
ut30D004
Year or Kepon
Dec.31, 2oo3
CO}tIJ()I{AI I()NS G()N TI{OI LED EY F(ESPONDENT
1. Report below the names of all corporations, business trusts, and simile
at any time during the year. lf conbol ceased prior to end of year, give pa
2. lf control was by other means than a direct holding of voting rights, strar
any intermediaries involved.
3. lf control was held jointly with one or more other interests, state the
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
3. lndirect control is that which is exercised by the interposition of an
4. Joint control is that in which neither interest can effectively conhol or
voting contol is equally divided between two holders, or each party
mutual agreement or undsrstanding between two or more parties who
control in the Uniform System of Accounts, regardless of the relative
r organizations, controlled directly or indirectly by respondent
rticulars (details) in a footnote.
p in a footnote the manner in which control was held, naming
t in a footnote and name the other interests.
mediary.
mediary which exercises direct control.
rect action without the @nsent of the other, as where the
a veto power over the other. Joint contnol may exist by
ather have contnol within the meaning of the definition of
g rights of each pafi.
Line
No.
Name of Cornpany Conholled
(a)
runo o[ tsu
(b)
ness Percent Votng
Stock Orned(c)
Footnote
Ref.
(d)
1 Avista Capital Paront companyto i of the 100
2 Conpan/s subsidia BS.
3
4 Avista Admntiage, lnc.Provides various enr sv 100
5 reMces, sucfi as ln met-
6 based spedalty billir and
7 information services
E
9 AvisE Communications. lnc.An lntegrated Comn nications 100 Cunenffy inactive
't0 Provid€r (lCP) that p Mded
11 local telecommunica )ns
't2 solutions and design d, built
13 and managed metol ilitan
14 area ffber optc netw ks.
15
16 Avista Derrelopment, lnc.Nonoperating comp:y whictr 100
17 maintiains a small in\stnent
1E portfolio of real estiat and
19 olher lnwsfiients.
20
21 Avista Energy, lnc.Wholesale electidty nd 99.8
2,natural gas bading,r ,keting
23 and resource manag nent.
24
25 Avista Laboratories, lnc.)evelops proton excl mge 100
26 nembrane (PEM) tur coU
27 tedrnology and fuel o
I
FERC FORM NO.2t (ED. {2{6)Page 103
Name of Respondent
Avista Corp.
This Reoort ls:(1) E]An Orisinal(2) f-'lA Resubmission
uate or F(eoon(iro, Da, Yi)
ut3012004
Year or Kepon
Dec.31, 2003
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business tnrsts, 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 contnol 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 lointly 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 of the other, as where the
voting contnol 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 contnol 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 Conpany Conbolled
(a)
Kind of Business
(b)
Percent Voting
Stock Oumed(c)
t-@Ex)te
Ref.
(d)
1 cornponents.
2
3
4 Avista Porrer, LLC Orms generation asseE.100
5
6 Avista SeMces, lnc.Offers prod ucls/seMces to 100 Cunenty lnaclive
7 utility customers.
I
o Avistia Turbine Power. lnc.Receives assignments o,100
10 purcfi ase pouer agreemenb.
11
12 Avista Rathdrum, LLC Oms electric r00
13 Jeneration assets.
11
15 Avista Venfures. lnc.nvests in omerging business 100
't6 )pportJnities.
17
1E Pentser Corporation Within Avista Capital;100
19 parent company of Advanced
20 Manuhcturing and
2'l Development
22
23 Advanced ManufacUring and Development, lnc.Performs djstom sheet metal 93
24 manufacturing of electronic
25 endosures, partrs and systems
26 for lhe computer, telecom and
27 medical indusbies. AM&D
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FERC FORM NO.2 (ED. 12-96)Page 103.1
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Name or Kesponoenl
Avista Corp.
r nls xelx)n ts:(1) [An Odginal(2) T-.lA Resubmission
uate ol Keoon
(Mo, Da, Yi)
041301200d.
Year of Report
Dec.31, 2oo3
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled direcUy 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 joinUy 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 interpositlon of an intermediary.
3. lndirect control is that which is exercised by the interposition of an intermediary which exercises direct contol.
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 contnol 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.
une
No.
Namo of Company Controlled
(a)
Kind of Business
(b)
Percent Voting
Stock Owned(c)
Footnote
Ref.
(d)
1 also has a [ood products
2 division that provides
3 cornplete fabrication ancl
4 tumkey a*sembly for arcade
5 3ames, kiosks, store fixtures
6 and displays.
7
8 Avistia Receivables Corporation Acquires and sells accounls 100
9 receivable of Avista Corp.
10
tl Avista Energy Canada, Ltd.Awtrolly omed subsidiary of 100
12 Avista Energy, lnc. that
13 prwides natural gas seMce
14 to approximately 400
15 individual custorners in
16 British Columbia, Canada
17 INDIRECT CONTROL:
1E Rathdrum Pouer, LLC Developed and mns an 49
't9 elecfic A€neration ass€t.
20
21 Coyote Springs 2, LLC Devdoped and orns an 50
22 Bleclric generatlon asseL
23
24 WP Funding LP Orvns an electric generation 3 Avista Corp.
25 asset.consolidates under
26 FIN 46 in 2003.
27 Spokane Energy, LLC Marketing of energy.100
FERC FORII NO.2 (ED. 12-96)Page 103.2
Name oI KesPonoenl
Avista Com.
tnls KeDort ls:l) tr An original
2) I I AResubmission
uale oI Keporl
(Mo, Da, Yr)
0413012004
Year oI Kepon
Dec. 31.2003
Securiw Holders and Votine Powers
I . Give the names and addresses of the I 0 security holders of the respondent who, at the date of the latest closing of the stock book or
cornpilation of list of stockholderc of the respondant, prior to the end of the year, had the highest voting powers in the respondent, and state
the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a footnote the lnown
particulars ofthe trust (whether voting trust, etc.), duration oftrust, and principal holders ofbeneficiary interests in the trust. Ifthe
company did not close the stock book or did not compile a list of stockholders within one year prior to the end ofthe year, or if since it
compiled the previous list of stoclholders, some other class of security has become vested with voting rights, then show such l0 security
holders as of the close of the year. Arrange the names of the security holders in the order of voting power, commancing with the highest.
Show in column (a) the titles ofofficers and directors included in such list of l0 security holders.
2. If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with voting
rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or contingent; if
contingent, describe the contingency.
3. If any class or issue of security has any special privileges in the election of directors, trustees or managerc, or in the determination of
corporate action by any method, explain briefly in a footnote.
4. Fumish 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 respondort, including prices, expiration dates, and other material information
relating to exercise of the options, warrants or rights. Speciff the amount of such securities or assets any officer, director, associated
company, or any of the l0 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to any
securities substantially all of which are outstanding in the hands of the general public where the options, warrants, or rights wete issued
prorata basis.
l. Give date of the latest closing of the
stock book prior to end ofyear, and in a
footnote, state the purpose ofsuch closing:
November 21, 2003 to pay the
Decernber 1 5, 2003 dividend.
2. State the total number of votes cast at the latest goreral
meeting prior to the end of year for election of directors of
the respondent and number ofsuch votes cast by proxy.
Total: 42,897,446
By Proxy: 42,891,330
3. Give the date and place of such
meeting:
May 8, 2003
Spokane, Washington
-ine
No.
Name (Title) and Address of Security Holder
(a)
VOTING SECURITIES
4. Number of votes as of (date): lll2l12003
Total Votes
(b)
Common Stock
(c)
Preferred Stock
(d)
Other
(e)
5 TOTAL votes of all votine securities 48.181.92?48.181.927
6 IOTAL number of security holders 18.043 18,043
7 TOTAL votes of securitv holders listed below 3l9.l9i 3 19.197
8
9 )BH Properties LP - Coeur d'Alene, ID 77-64C 77 -646
l0 :Iarold J. White TR U/A - Sookane. WA 53.781 53.787
ll Margaret Ann Brosnan TR U/A - Independence. OH 38,00(38,00c
t2 {,lfred C. Glassell. Jr. - Houston. fi 30.02t 30.028
l3 Sladrrs L. Rikerd - Spokane, WA 26.671 26,671
t4 Kay Kobayashi - Los Aneeles. CA 22,092 22.O92
l5 Emest C. Gosnay Jr. & Marie K. Gosnev TRS U/A 20.01I 20.01I
l6 - Sookane. WA
t7 Robert Eueene Youns - Washoueal. WA 20.00(20.00c
l8 Edmund M. Reeck TR U/A - Salem, OR 15.962 t5,962
l9 FIenrv P. Savase & Mildred Savase.m TEN - Kellose- ID 15.00(15.00(
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FERC FORM NO.2 (ED r2-8A Page 107
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Name ot Respondent
Avista Corp.
l nrs Kepofi ]s:(1) E An Original(2) [ A Resubmission
uare or Kepon
0/,t30t2004
Year ot Report
Dec.31, 2003
IMPORTANT CHANGES DURING THE YEAR
Give particulars (details) conceming the matters indicated below. Make the statements explicit and precise, and number them in
accordance with the inquiries. Each inquiry should be answered. Enter nnone," "not applicable,'or'NA" where applicable. lf
information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears.
'1. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the
franchise rights were acquired. lf acquired without the payment of consideration, state that fact.
2. Acquisition of ownership in other eompanies by reorganization, merger, or consolidation with other companies: Give names of
companies involved, particulars conceming 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 joumal 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 sunendered: 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 tenitory added or relinquished and date operations
began or ceased and give reference to Commission authorization, if any was required. State also the approximate number of
customers added or lost and approximate annual revenuss of each class of service. Each natural gas company must also state major
new continuing souroes of gas made available to it from purchases, development, purchase contract or othenrise, giving location and
approximate total gas volumes available, period of contracts, and other parties to any such anangements, etc.
6. Obligations incunad as a result 9f 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 charter: Explain the nature and purpose of such changes or amendments.
8. State the estimated annual effect and nature of any important wage scale changes during the year.
9. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such
proceedings culminated during the year,
10. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer,
director, security holder reported on Page 106, roting trustee, associated company or known associate of any of these persons was a
party or in which any such person had a material interest.
11. (Reserved.)
12. lf the important changes during the year relating to the respondent company appearing in the annual report to stockholders are
applicable in every respect and 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€6)Page 108
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,130ti2004
Year of Report
Dec 31,2003
IMPORTANT CHANGES DURING THE YEAR (Continued)
t.
2.
3.
4.
5.
6.
7.
8.
9.
10.
I l.
12.
None
None
Noue
None
None
In Seprcmber 2fi)3, the Corryany issued $45.0 million of 6.125 percent First Mortgage Bonds due in 2013. This debt was
issued under a registration statenrnt filed on Form S-3 with the Securities usd f,xshenge Cornmission for up to $150.0
rnillion of secured or unsecured debt securities. The $150.0 million registration staternent was approved by the WUTC under
docket UE{31031, the IPUC under case #AVU-E-03{3 and thc OPUC under docket UF-4198. Reference is made to Notes
3,12, 14, aod 17 of Notes to Financial Statements, Page 122 of this Report.
None
Average annual wage increases were 2.9%o in 2003 for non-exeryt personnel. Annual average wage increases were 3.1% for
exeryt erryloyees. Bargaining rmit enployees wcre granted increases of 3.0Vo.
Reference is made to Note 23 of Notes to Financial Statements, Page 122 of this Report.
None.
N/A
See Page 122 of this Report.
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FERC FORM NO.2 109.1
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Name of Respondent
Avista Corp.
This Report ls:
(1) E An Original
(2) n A Resubmission
Date of Report
(Mo, Da, Yr)
0413012004
Year of Report
Dec.31, 2003
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line
No.
TiUe of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
1 UNLTYPLANT
2 Utility Plant (101-106, 114)200-201 2,370.810.93'1 2.il4.618.721
3 Constuction Work in Prooress (107)20G201 17,581,11{49,615.389
4 TOTAL Utility Plant (Enter Total of lines 2 and 3)2,38E,392,05(2.594,234.110
5 (Less) Accum. Prov. for Depr. Amort. Depl. (10E, 1 I 1 , 1 15)200-201 824,688,26(886,846,714
D Net Utility Plant (Enter Total of line 4 less 5)1,563,703,781 1,707,387,396
7 Nudear Fuel ('120.1-120.4, 120.6)202-203 0
8 (Less) Acqrm. Prov. for Amort. of Nucl. Fuel Assemblies (120.5)202-203 0
I Net Nudear Fuel (Enter Total of line 7 less 8)0
10 Net Utility Plant (Enter Total of lines 6 and 9)1.563.703.78 1.707.387.396
11 UUlity Plant Adjustnents (116)122 0
12 Gas Stored Underoround - Nonqrnent (117)0
13 OTHER PROPERTY AND INVESTTENTS
14 Nonutility Property (1 21 )3,'t56,01(3,264,833
15 (Less) Accum. Prov. br Depr. and Amort. (122)'t07.82t 118,01 1
,6 ln\€strnents in Associated Comoanies (123)0
17 lnvestment in Subsidiary Companies (123.1)224-225 256,737,741 255,904,4E8
18 (For Cost of Account 123.1, See Foohote Page 224, line 421
19 Noncunent Portion of Allorances 22b229 0
20 Other lnvestrnents (124)46.498.83:55,738,128
21 Special Funds (1251281 11.182.351 16.429.928
22 TOTAL Other Propefi and ln\restnents Ootal of lines 14-17,1*211 317,467,11',331.219.366
23 CURRENT AI{D ACCRUED ASSETS
24 Cash (131)10,u8,63:-2,136,43E
25 Special Deposits (132-1 34)2,465,141 0
26 Workinq Fund (135)38/,21i sTf ,122
27 Temporary Cash lnvesUnents (136)24.126.77i 21,143,327
28 Notes Recsi\rable (141 )0
29 Customer Accounts Receivable (1 42)28.896,85(45.726.94:2
30 Other Accounts Receivable (143)4,238.49r 4.175.943
31 (Less) Acom. Prov. for Uncollectible Acct-Credit (144)2,6EE,66t 2.281.537
32 Notes Receivable from Associated Companies (145)137.275.82t 40,018,082
33 Accounb Receivable ftom Assoc. Companies (146)1,791,87(10,855
34 Fuel Stock (151)227 3.261.061 2,395,349
35 Fuel Stock Expenses Undisbibuted (152)227 0
36 Residuals Glec) and Exfacted Products (153)227 0
37 Plant Materials and Operating Supplies (134)227 8,.049,51:9,522.082
38 irerchandise (155)227 0
39 Other Materials and Suoolies (156)227 0
,f0 Nudear Materials Held for Sale (157)202-203t227 0
41 Allormnces (158.1 and 158.2)2*2n 0
42 (Less) Nonqrnent Portion of Allouances 0
43 Stores Expense Undistibuted (163)227 4%.ilt .496,415
44 Gas Stored Undergrornd - Cunent (184.1)7.56:i.67i E,176,453
45 Liquefied Natural Gas Stored and H6ld for Processing (100.2-16,4.3)563,8s(810,745
46 PreDaaents (165)2.916.60(1.068.826
47 Advances for Gas (16&167)0
4E lnterest and Dividends Receivable (17'l)27,48i 961
49 Rents Receivable (172)676,51r 459,233
50 Accrued Utility Revenues (173)0
51 Miscellaneous Cunent and Accn ed Assets (174)322,2U 610,557
52 Derivative lnstument Assets (175)0
FERC FORM NO.2 (REV.12-03)Page 110
Name of Respondent
Avista Corp.
This Report ls:
(1) E An Original(2) tr A Resubmission
Date of Report
(Mo, Da, Yr)
0/,|30t2004
Year of Report
pg6.31, 2003
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBlTS)continueo)
Une
No.
Tite of Account
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
53 Derivative lnstument Assets - Hedges (176)@,322,23t 39,499,770
54 TOTAL Cunent and Accrued Ass€b (Enter Totral of llnes 24 thru 53)291,1 3E,85i 169,1 11,857
55 DEFERRED DEBMT
56 Unamortized Debt Expenses ('tEl)21.921.U(20,113,211
57 Exhaordinary Property Losses (1 82.1 )230 0
56 Unr€cowr€d Plant and Resulatory Study Costs (182.2)230 0
59 Other Regulatory Asseb (182.3)232 248.746.93 239,863.731
60 Prelim. Survsy and lnvestigation Charges (Electdc) (1E3)12,130,41t 12,156.159
61 PrBlim. Sur. and lnvest. Charges (Gas) (183.1, 183.2)0
62 Crlearing Accorrnb (1 &4)'1,416,42i 1,510,244
63 Temoorary Facilities ('l E5)0
64 Misoellaneous Defenpd Deblts ('t 86)233 E1.406.92'86,0&1,253
65 Def. Los.ses ftorn DisDosition of Utility Plt. (1E7)0
66 Researcfi. Devel. and Demonstration Expend. (188)352-353 0
67 Unamortized Loss on Reaquired Debt (189)29,206,73(28,712,'.t73
68 Accumulated Defered lnoome Taxes (190)2U 37.595.304 u,n 23ffi
69 Unreco\rered Purcfiased Gas Cosb (19'l)11,514,48(15.352.084
70 TOTAL Defianed Debits (Enter Tobl of lines 56 thru 69)443,938,E5:438,013,241
71 TOTAL AsseB and Other Debib (Enter Total of lines 10,1 1,'|.2,22,il,701 2,616,24E,59?2,ers.731,860
FERC FORM NO.2 (REV. 12.03)Page 111
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Name of Respondent
Avista Corp.
This Report ls:
(1) tr An Original
(2) n A Resubmission
Date of Report
(Mo, Da, Yr)
ut30t2004
Year of Report
Dec.31, 2oo3
CoMPARATTVE BALANCE SHEET (LrABtLlTtES AND OTHER CREDTTS)
Line
No.
TiUe ofAccount
(a)
Ref.
Page No.
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
1 PROPRIETARY CAPITAL
2 Common Stock lssued (201)2*251 623,09'1,72'626,787,U7
3 Prefened Stock lssued (2(X)2fi-251 33,250,00(0
4 Capital Stock Subscribed (202, 2051 252 0
5 Stock Liability for Conversion (203, 206)252 0
6 Prcmium on Capital Stock (207)252 0
7 Other Paid-ln Capital (20&211 253 0
I lnstiallments Received on Caoitial Stock (212)252 0
I (Less) Discount on Capital Stock (213)2g 0
10 [ess) Caoital Stock Expense (2'14)2il 1 1.927.83(10,949.79s
11 Retained Eaminos Q15. 215.1, 2161 r't&119 60,386,14(81.8tr.919
12 Unappropriated Undisbibuted Subsidiary Eamings (21 6.1 )11&1't9 65,750.8e il,022,,832
13 (Less) Reaquired Capitral Stock (217)250-251 0
14 Accumulated Other Comprehensive lncome (219)1z2,(aytbl -1E,E09,17:-9,355,0E9
15 TOTAL Proprietlary Capital (EnterTotal of lines 2 thul4)751,741,ffii 752,3@.2'.t4
16 LONG.TERM DEBT
17 Bonds (221 )2#257 401.300.00(431,300,000
18 (Less) Reaquired Bonds (222)2#257 0
19 Adrances from Associated Comoanies (223)2*257 1.051.U1 1,434,151
20 Other Lons-Term Debt (224)2*257 703.778.87 689.935.336
21 Unamortized Premium on Lons-Term Debt (225)0
22 (Less) Unamortized Discount on Long-Term Debt-Debit (226)2,160,86(1,994,486
23 TOTAL Long-Term Debt (Enter Total of lines 17 thru 22)1,103,969,45(1,120,675,001
24 OTHER ilONGURRENT LIABILMES
25 Obligations Uncler Capital Leases - Nonorrent (227)621,521 3.,140.569
26 Accumulated Provision for Prooerty lnsurance (228.1)0
27 Accumulated ProMsion for lniuries and Damaoes (228.2)1.146.Ut 1,299.994
28 Acqrmulated Provision for Pensions and Benefitrs (228.3)50,209,34!35,897,551
29 Accumulated Miscollaneous OperatinS Provisions (228.4)0
30 Acqrmulated Provision br Rate Refunds (229)0
31 Asset Retirement Obliqations (230)659,307
32 TOTAL OTHER Noncurent Liabilites (Enter Total of lines 25 hru 31)52,277,22i 41,297,421
33 CURRENT AND ACCRUED LIABLMES
34 Notos Palable (231)0
35 AccounB Payable (232)36,247,51t 48,421,762
36 Notss Payablo to Associated Companies (233)0
37 Accounts Patable to Associated Companies (234)18,524,751 19,645,1 13
38 Custorner Deposits (235)4,533,81r 4,452,327
39 Taxos Accrued (236)262-263 22,522,1&9,24't,055
40 lnterest Accrued (237)20,307,07t 18,48/,237
41 Dividends Dedared (238)-9
42 Matured Lons-Term Debt (239)0
43 Matured lnterest (240)0uTax Collections Pafable (241)-754 -23,665
45 Miscellaneous Cur€nt and Accrued Liabilities (242)20,279,69t 28.275.414
FERC FORM NO.2 (REV.12431 Page 112
Name of Respondent
Avista Corp.
This Report ls:
(1) E An Original
(2) Il A Resubmission
Date of Report
(Mo, Da, Yr)
u130t2004
Year of Report
Dec.31, 2003
COMPARATIVE BALANCE SHEET (LlABlLlTl ES AND OTHER CRED lTslcontinuecl)
Line
No.
Title of Account
(a)
Ref.
Page No,
(b)
Balance at
Beginning of Year
(c)
Balance at
End of Year
(d)
46 Obligations Under Capital L€ases-Cunent (243)0
47 Derivative lnsfirment Liabilities €44)0
48 Dedvatve lnstument Liabilities - Hedses (245)50.057.63i 36.057.271
49 TOTAL Cunent & Accrued Uabilities (Enter Total of lines 34 thru 48)172.471.911 164.753.525
50 DEFERRED CREDITS
51 Customer Advances for Constuction (252)913,11 97E.1E7
52 Accumulated Defered lnvestnent Tax Crodits (255)2&267 669,57(620,268
53 Elefened Gains from Disoosition of Utilitu Plant (256)0
il Other Defened Credib (253)269 29,705,40(34.006,549
55 Other Regulatory Liabilities (254)278 20,174,*i 13,027,76
56 Unamortized Gain on Reaquired Debt (257)4,'t't8,79t 4,696,571
57 Accrrmulated Defen€d lncorne Taxes (281-283)272-277 4E0,206,94:513,314,41E
58 TOTAL Defened GBdit3 Enter Total of lines 51 thru 57)535.7E8.34,566,645,699
59 0
60 0
61 0
62 0
6i!0
64 0
65 0
66 0
67 0
68 0
69 0
70 0
71 0
72 TOTAL Uab and Other Credits (Enter Total of lines 15,23,32,49,58)2.616.248.59i 2,645,731,E60
FERC FORM NO.2t (REV.12-03)Page 113
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This Page Intentionally Left Blank
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Name of Respondent
Avista Corp.
tnls l
(1)
(21
BIX)fl tS:
(]An original
-lA Resubmission
uate oI Kooofr(Mo, Da, Yi)
0/,t30t20rJ/.
Year or Koporr
D€c.31, 2003
STATEMENT OF INGOME FOR THE YEAR
1. 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 aocounts 412 and 413 above.
3. Report data for lines 8, 10, and 1 1 for Natural Gas companies using acoounts 40/'.1 , 404.2, 4M.3, 407 .1 and 407 .2.
4. Use pages 122-123 for important notes regarding the statement of income or any ac@unt thereof.
5. Give concise explanations conceming unseftled rate proceedings where a contingency eists such that refunds of a material amount
may need to be made to the utility's customens or which may result in a material refund to the utilig with respect to power or gas
purchases. State for each year affected the gross revenues or costs to which the contingency relates and the tax effects together with
an explanation of the major factors which affect the rights of the utility to retain such revenues or reoover amounts paid with respect to
power and gas purchases.
6. Give concise explanations conceming significant amounts of any refunds made or received during the year
Line
No.
Account
(a)
(Ref.)
Page No.
(b)
TOTAL
UU'TENT YEAT
(c)
Pr€uous Year(d)
1 UTILITY OPERATING INCOME
Operating Revenues (400)300-30'l 929,400,22e E93,963,51!
Operating Exponses
4 Operation Expenses (401 )32G323 628,688,57€606,132,79(
Maintenance Expenses (402)320-323 30,395,32€23,968,18i
€Depreciation Expense (403)33S337 65,752,09€60,293,54S
7 Elepreciation Expense br Asset Retirement Costs (403.1)33&337
Amort & Depl. of Utility Plant (404-405)33&337 8.'t 5t,36€8.430.074
c Arnort of Utility Plant Acq. Adj. (406)33&337 99,(N€99.048
1 Amod Property Lcses, Unrccov Plant and Regulatory Study Costs (407)-3,693 -3,582
11 Amorl of Conversion Expenses (407)
12 Regulatory Debits (407.3)218,244 253.965
13 (Less) Regulatory Credits (407.4)10,,149,40!17,987,205
14 Taxes Other Than lncome Taxes (40E.1)262-263 60,791,111 63,597,147
15 lncome Taxes - Federal (409.1)262-263 22,613,26e y,872,176
16 - Other (409.1)262-263 1,282,894 2,34E,133
17 Provision for Defened lncome Taxes (410.1)2 ,272-277 5.291.061 -7.069.8:i7
18 (Less) Provision for Defen€d lncome Taxes€r. (411.1)2 ,272-277 4,678,097 5.080.399
19 lnvestnent Tax Credit Adj. - Net (411.4)266 .{9,30t 49.30E
20 (Less) Gains frorn Disp. of Utility Plant (411.6)
21 Losses frorn Disp. of Utility Plant (41 1.7)
22 (Less) Gains ftorn Disposition of Allotmnces (41 1.8)
23 Losses ftom Disposition of Allor,Ences (411.9)
24 Accretion Expense (41 1.10)
25 TOTAL Utility Operating E:genses (Ent€r Totral of lines 4 thru 24)808,102,494 769,8&,75S
26 l,let Util Oper lnc (Enter Tot line 2 less 25) Carry to P9117,line 27 121,297,732 124,158,75€
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FERC FORM NO.2 (ED. 12-96)Pago tt4
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Name of Respondent
AMsta Corp.
This R€oort ls:(1) E]An Orisinal
(21 1-1A Resubmission
UAIE OT F(6IXXI
(Mo, Da, Yi)
0/,130t2004
Year ol Report
Dec.31, 2003
SIAIEMENI (JF INCOME FOR THE YEAR (@ngnued)
resulting from settlement of any rato procseding affecting revenues received or oosts incuned for power or gas purchases, and a
summary of the adiustments made to balance sheet, income, and expense aocounts.
7. lf any notes appearing in th€ report to stockholderc are applicable to this Statement of lncome, such notes may be included on
pqges122-123.
8. Enter on page 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 yea/s figures are dffierent fiom that reported in prior reports.
10. lf the columns are insufficient for reporting additional utility departments, supply the appropriate account titles, lines 2 to 26, and
report the information in the blank spaoe on page 123 or in a footnote.
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY Line
No.uurent Year
(e)
Pfevtous Year(0 uutTent Y6ar
(s)
Prevlous Y€ar
(h)UUITENI YCAT(i)
Frevrous Yearo
652,111,450 584,141,003 277,2E€.776 309,E22,512 2
406,888,146 353,568,329 221,8m,430 252,W,467 4
25,258,364 19,988,552 5.136.962 3,979,630
50,578,273 46.180,8E0 15,173.E23 14,1 12,669
6,790,075 7,197,026 1,361,293 933,048
99,04E 99,048
-3,693 -3,5E2 1
11
218,244 253,9E5 1
10,,149,403 17,9E7,205 1
43.903.386 43,185,433 16,6E7,725 20,411,714 14
25,776,211 25,158,71S -3,162,945 9,713,457 1
972,732 1,430,132 310,167 91E,001
1,172,553 2,201,171 4,118,508 -9,271.008 17
4.5il.927 4,997,55€123,170 82,U3 1
-49,308 -49,308 1
2C
21
22
za
24
546,430.765 476,3/i0,97 261.671.729 293,463,812 2a
105,680,665 107,8m,056 15,617.U7 16.358.700 2e
FERC FORM NO.2 (ED. 12.96)Page 115
Name ot xesponoent
Avista Corp.
This Reood ls:(1) fiAn Orisinal
(21 f-lA Resubmi$sion
uate or Kepon(Mo, Da, Yr)
u/30r2004
Year of Report
Dec.31. 2003
S]ATEMENT OF INCOME FOR THE YEAR (Continued)
Line
No.
OTHER UTILITY OTHER UTILIry OTHER UTILITY
uurenr Yaar
(k)
rreuous Yaar
(t)
uur€nr Year
(m)
rreuous rear
(n)
I,U]TONI YEAI
(o)
rrevtous Y€ar
(p)
7
'tc
1't
12
't:
14
1T
1t
11
1€
1!
2C
21
2:,
zi
2t
2!
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FERCFORMNo.2(ED.12€6) Page 116
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Name of Respondent
Avista Corp.
This Remrt ls:(1) fiAnorlsinal(21 nA Resubmission
Dat6 of Reoort(Mo, Da, Yi)
0/,t30t2004
Year of Report
Dec.31, 2003
STATEMENT OF INCOME FOR THE YEAR (Conlinued)
Line
No.
Account
(a)
(Ref.)
Page No.
(b)
TOTAL
gutrent Year
(c)
Preuous Y€ar
(d)
27 Net Utility Operating lncome (Canied forward from page 114)121,297,731 124,158,75(
28,Other lncome and Deduciions
2E Other lncome
3C Nonutilty Operating lncome
31 Revenues From Merchandising, Jobbing and Confact Work (415)1,78!574,461
32 (Less) Costs and Exp. of Merchandising, Job. & Confact Wotk (416)-17,01t 705,55:
33 Revenues From Nonutility Operations (417)-13(361.45:
34 (Less) Expenses of Nonutility Operations (417.1)1,609,18i 1,914,75(
3t Nonoperating Rental lncome (41E)4,37i -3,O22
3(Equity in Eamings of Subsidiary Companies (418.1)1't9 9,156,7&4,212,474
37 lnterest and Dividend lncome (419)12,050,63!23,649,10(
3t Allonrance for Other Funds Used During Construction (419.1)853,01i 768,32i
39 Miscellaneous Nonoperating lncome (421 )1,92j2,151
40 Crain on Disposllion of Propedy (421.1)89,6ri 210,721
4'.|TOTAL Other lncome (Enter Total of lines 31 thru 40)20,s55,13 20,6fi,42(
42 Other lncome Deductions
43 Loss on Disposition ol P'o,cE,I,f,y (421.2)282,851 68,74
u Miscellaneous lune6la6qn (425)340 't,323,411 1,323,41€
45 Miscellaneous lncome Dedudions (426.1-426.5)340 3.860,06t 2.537.59€
4G TOTAL Other lncome Deductons Ootial of lines 213 thru 45)5,466,33(3,929,73,{
4i Taxes Applic. to Other lncome and De<luctions
lt Taxes Other Than lncome Taxes (408.2)262-263 -97,50:38.00(
4(lncorne Taxes-Fedenl (409.2)262-263 -129,82t 3,329,302
5(lncome Taxes-Other (409.2)262-263 4E1,77i -464.555
51 Provision for Defened lnc. Taxes (410.2)2U,272-277 2,968,97r 3,845,351
52 (Less) Prcvision for Defened lnco.ne Tares4r. (411.21 2v,272-277 66,77t -{06,16i
5(lnvestnent Tax Credit Adj.-Net (41 1.5)
54 (Less) lnvestnent Tax Credits (420)
EE TOTAL Taxes on Other lncome and Deduct. Ootal of 48 thru 5f)2,326,U|7,1il,264
5€Net Other lncome and Deductions (Enter Total lines 41, 46, 55)'t2.762.17',9,566,421
57 lnbrest Charges
5€lnbr€st on Long-Tem Debt (427)82.501.59(93,113,62i
EC Amod. of Debt Disc. and Expense (428)3,907.42i 5,538,12(
6C Amortization of Loss on Reaquired Debt (428.1)4.04r,36(3.323.211
61 (Lo$) Amort of Premium on Debtcredit (429)
62 (Lessl a6erg-tion o, Gain on Reaquired Debt-Credit (429.1)
D.i lntorest on D€bt to Assoc. Companios (430)340 320,26t
6,(Other lnterest Expense (431)340 1,621,673
6:(Less) Allovance for Borrored Funds Used During Constuctioncr. (432)'t,238,O'.t4 1,178,21C
6€Net lnterest ChaEps (Enter Total of lines 58 thru 65)89,555,65:'t02,418,424
67 lnoome Before E <baodinary ltems Cfotal of lines 27, 56 and 66)44,fl4,251 31,306,753
6€Exbaordinary ltems
6S Exbaordinary lncome (43{)
7C (Less) Exbaordinary Deductions (435)
71 Net E:<tsaordinary ltems (Enbr Total of line 69 less line 70)
72 lncome Taxes-F€deral and Other ('109.3)262-263
73 Extraordinary ltems After Taxes (Enter Total of line 71 less line 72)
74 Net lncorne (Enter Total of llnes 67 and 73)44,W,25i 31,306,75!
FERC FORM NO.2 (ED. t2€6)Page ll7
Name or Kesponoenl
Avista Corp.
This ReDort ls:(1) E]An orisinal(2) f-'lA Resubmission
Dat6 of ReDort(Mo, Da, Yi)
ut30t20u
Year of Report
Dec.31, 2oo3
STATEMENT OF RETAINED EARNINGS FOR THE YEAR
1. Report all changes in appropriated retained eamings, unappropriated retained eamings, and unappropriated undistributed
subsidiary earnings for the year.
2. Each credit and debit during the year should be identified as to the retained eamings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the contra primary acoount affected in column (b)
3. State the purpose and amount of each reservation or appropriation of retained eamings.
4. List first acmunt 439, Adjustments to Retained Eamings, reflecting adjustrnents to the opening balance of retained eamings. Follow
by credit, then debit items in that order.
5. Show dividends for each class and series of capital stock.
6. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Eamings.
7. Explain in a footnote the basis for determining the amount reserved or appropriated. lf such reservation or appropriation is to be
recunent, 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.
urE
No.Item(a)
uonrra rnmary
\ccount Affected(b)
AITIOUNI
(c)
UNAPPROPRIATEO RETAINED EARNINGS (Account 216)
Balance-Beginning of Year 122,5]!.2,102
Changes
Adjustments to R€tained Eamings (Account 439)
Allocation of Retained Eamings to Series L no longer required 4,10/.,077
Stock Options EGrcised adlustnent -1'14,553
ESOP and other adjustnent 170,109
Dividends recei\red from Subsidiaries 9,9S0,037
TOTAL Credits to Retained Eamings (Acct.439)-54,088,484
't(
1
1i
1
1t
1 TOTAL Debits to Retained Eamings (Acct.439)
1(Balance Transtened from lncome (Account 433 less Account 418.1 )35.347,468
1 Approprialions of Retained Eamings (Acct. 436)
1t
't(
2(
21
a TOTAL Appopriations of Retiained Eamings (Acct. 436)
2i Dividends Dedared-Prefened Stock (Account 437)
24 i,.il38
2l
2t
27
2t
2l TOTAL DiMdends Dedared-PreEned Stock (Acct. 437)1,155,438
3(Dividends Declared€ommon Stock (Account 438)
31 -23,633,569
3i
J.
34
a,
3f TOTAL Dividends Dedarcd-Common Stock (Acct. 438)-23,633,s69
37 Transfers from Acct 216.1, Unapffop. UndEfib. Subsidiary Eamings 894,719
3t Balance - End of Year (Iotal 1,9,15,16,22,29,36,37)80.306.798
APPROPRIATED RETAINED EARNINGS (Account 215)
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FERC FORII NO.2 (ED. 12-96)Page ll8
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Name or Responoent
Avish Corp.
tnts Keil)n ts:(1) EAn Orlginal(21 f-'lA Resubmission
uate oI Heoon(Mo, Da, Yi)
o4/30/2004
Year of Report
Dec.31, 2oo3
STATEMENT OF RETAINED EARNINGS FOR THE YEAR
1. Report all changes in appropriated retained eamings, unappropriated retained eamings, and unappropriated undistributed
subsidiary eamings for the year.
2. Each credit and debit during the year should be identified as to the retained eamings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the contra primary ac@unt affected in column (b)
3. State the purpose and amount of each reservation or appropriation of retained eamings.
4. List lirst account 439, Adjustnents to Retained Eamings, reflecting adjustments to the opening balance of retained eamings. Follow
by credit, then debit items in that order.
5. Show dividends for each class and series of capital stock.
6. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Eamings.
7. Explain in a footnote the basis for determining the amount reserved or appropriated. lf such reservation or appropriation is to be
recunent, state the number and annual amounts to be reserved or appropriated as well as the totrals 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.
Ltr 19
No.Item(a)
uonua rnmary
\ccount Affected(b)(c)
3S 1,il8j21
4(
41
4i
4l
44
12 TOTAL Appropriated Retained Eamings (Account 215)1,548,121
APPROP. RETAINED EARNINGS - AMORT. Reserve, Fedenl (Account 215.1)
1t TOTAL Approp. Retained Eamings-16e6 Reserve, Federal (Acct. 215.1)
47 TOTAL Approp. Retrained Eamings (Acct 215, 215.1) (l'otal 45,46)1,548.121
4l TOTAL Retained Eamings (Account 215, 215.1,2161 Cfotal 38, 47)81,8tt,919
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1 )
4!Balance-Beginning of Year (Debit or Crcdit)65,750,8(N
5(Equity in Eamings for Year (Credit) (Account 418.1)9.156.784
51 (Less) Dividen<ls Received (Debit)9,990,037
?.Subsidiary epense in Account 4'17.12 {94,719
Balance.End of Year Cfotal lines 49 thru 52)il,022,E32
FERC FoRlrl No.2 (ED. 12€6)Page ttg
Name ol Ftespondent
Avista Corp.
tnts KeDort ts:(1) E]An Orisinal(21 f-lA Resubmission
uate or F(elx)n
(Mo, Da, Yi)
od,t301200/-
Year or FGPorr
Dec.31, 2003
STATEMENT OF CASH FLOWS
1. lf the notes to the cash ffovv statement in the respondents annual stockholders report aro applicable to this statement, such notes should be included
in page 122-123. lnformation about non-cash investing and financing activiti€s should be provided on Page 122-123. Provido also on pages 122-123 a
reconciliation between 'Cash and Cash Equivalents at End of Yeaf with related amounts on the balance sheet.
2. Under'Othef specify significant amounts and group others.
3. Operating Activities - Other: lnclude gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing
activities should be reported in those activities. Show on Page 122-123 the amount of interest paicl (net of amounts capitalized) and income taxes paid.
No.
Lrescnpuon (t'ee lnsrrucoon No. c IoI Explanauon ot Go6es)
(a)
Am(,unI:'
(b)
1 Net Cash Flow from Operating Activities:
2 Net lncome 44,W,252
3 Noncash Charges (Crcdits) to lncome:
4 Depreciation and Depletion 73.998.819
5 Pouer and nafural gas defenals -5,535,312
6 Amortization of debt elgense 7.971.803
7 Amortization of in\restnent in exchange poivor 2,450,004
8 Debned lncome Taxes (Net)38,791,463
I lnvestnent Tax Credit Mjusfnenl (Net).49.30E
10 Net (lncrease) Decrease in Recei\,ables -18,650,796
11 l,let (lncreaso) Decrease in lnventory 94,433
'12 Net (lncreaso) Oecrease in Allorances lnventory
13 Net lncrease (Decrease) in Payables and Accrued Expenses E,167,29
14 Net (lncrease) Decrease in Other Regulatory Assets 630,827
15 Net lncrease (Decrease) ln Other Regulatory Liabilities 334,617
16 (Less) Allorance for Other Funds Used During Construction 2,'.t92,697
17 (Less) Undistributed Eamings horn Subsidiary Companies 9.156.784
18 Other cunent assets 1,803,240
19 ESOP dividends 167,506
20 Allomnce br uncollectible recei\rables 407,128
21 Other non-{unBnt assets and liabilities 2,8/,9,925
22 Net Cash Povided by (Used in) Operating Ac-tivities (Iobl 21hru2'l)1,14.510,439
23
24 Cash Florvs from lnvestnent Activities:
25 Construc,lion and Acquisition of Plant (including land):
26 Gro6s Additions to Utility Plant (less nudear fuel)-105,617,593
27 Groes Arlditions to Nudear Fuel
28 Gross Mditions to Common Utility Plant
29 Gross Additons to Nonutility Plant -581,511
30 (Less) Allowance for Other Funds Used During Construction
31 Other (provide details in foohote):
32 Other Property and lnwstnents -2,U8,976
33
u Cash Ouffiorc for Plant Ootal of lin€s 26 thru 33)-109,048,080
3s
36 AcquisiUon of Other Noncunent Assets (d)
37 Proceeds from Disposal of Noncunent Assets (d)482,872
38
39 lnvesfnents in and Advances to Assoc. and Subsidiary Companies -7,344,568
40 Conbibutions and Advances ftom Assoc. and Subsidiary Cornpanies
41 Disposition of lnwsfnents in (and Ad\,ancos to)
42 Associated and Subsidiary Companies
43 Dividends from Subsidiary Companles 9.990.036
u Purdlas€ ot ln\restment Securities (a)
45 Proceeds from Sales of lnvesrnent Securities (a)
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FERC FORM NO.2 (ED. t2€6)Pago 120
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Name or Kosponoenl
Avista Corp.
This t{€Don ls:(1) E]An orieinal
(21 nA Resubmission
Date ot tteport
(Mo, Da, Yr)
0/,t30t2004
Year of Report
oec.31, 2003
STATEMENT OF CASH FLOWS
4. lnvesting Activities indude at Other (line 31) n6t cash oumorv to acquire other @mpanies. Provide a reconciliation of assots acquired with liabilities
assumed on Wges 12-123. Do not indude on this statement the dollar amount of Leases capitalized per US of A General lnstruction 20; instead
povide a oconciliation of the dollar amount of Leases capltalized with the plant co6t on gages 122-123.
5. Codesus€d:
(a) Net prooeeds or paymenb. (c) lndude commercial paper.
(b) Bonds, debentures and other long-term debt. (d) ldentifo separately suclt items as investments, fixed asseb, intangibles, etc.
6. Enter on pages 122-123 darifications and explanations.
UIIE
No.
D€scripfon (See lnstfuc0on No. t rcr ExpEnauon ol u@es)
(a)
Anounts
(b)
46 Loans Made or Purdrased -73,000
47 Collec-tions on Loans 6.775
48
49 Net (lncrease) Decrease ln Receivables
fl)Net (lncrease ) Decrease in lnv€ntory
5'l Net (lncrease) Decrease in Allowances Held for Speculation
52 Net lncrease (De6ease) in Palables and Accrued Expenses
53 Other (provide details in bohote):
il
55
56 Net Cash Provided by (Used in) lnvesting Aclivilies
57 Total of lines 30 thru 55)-10s,985,965
58
59 Cash Flows from Financing Ac{iviiies:
60 Proceeds from lssuance of:
61 Long-Term Debt (b)u,795.250
62 Prefened Stock
63 Common Stock 3.775.591
el Other (povide details in foohote):
65
66 Net lncrease in Short-Term Debt (c)50,000,0(x)
67 Other (provide details in rootnote):
68
69
70 Cash Provided by Outside Sourcas (Iotal 61 thru 69)98,570,841
71
72 Paymonts for Retirement of:
73 Long-term D€bt (b)-124.033.279
74 Prefened Stock -'t,574,26
75 Common Sbck
76 Other (provide dehils in foohote):
77 Premiums paid for the repurchase of long-tom debt -1,709,769
78 Net DecrEaso in Short-Term Debt (c)
79 BonoMng lssuance osts -2,429,756
80 Dividends on Prefened Stod(-1,155,438
81 Dividends on Common Stock -23,633,569
82 Net Cash Povided by (Used in) Financing Activities
83 (fotal of lines 70 thru 81)-55,965,236
u
85 Net lncrease (Decrease) in Cash and Cash Equivalenb
86 Ootsl of lines 22,57 and E3)-17,4/,0,762
E7
88 Cash and Cash Equimlents at Beginning of Year 37,024,773
89
90 Cash and Cash Equlvalents at End of Year 19,584,011
FERC FORil NO.2 (ED. 12-96)Page
Name or Kesponoent
Avista Corp.
rnls Hepon ls:(1) EI An Originale) n A Resubmission
uare or Kepon
04t30l2004
Year ol Report
Dec.31, 2003
NOI EI' TO FINANGIAL STATEMENTS
1. Use the space below for important notes regarding the Balance Sheet, Statement of lncome for the year, Statement of Retained
Eamings 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 eisting 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 anears
on cumulative prefened stock.
3. For Account 116, Utility Plant Adjustments, explain the origin of such amount, debits and credits during the year, and plan of
disposition contemplated, giving references to Cormmission orders or other authorizations respecting classification of amounts as plant
adjustments and requirements as to disposition thereof.
4. Where Accounts 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give
an explanation, providing the rate treatment given these items. See General lnstruction 17 of the Uniform System of Accounts.
5. Give a concise explanation of any retained eamings restrictions and state the amount of retained eamings 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 fumish the data required by instructions above and on pages '114-121, such notes may be included herein.
PAGE 1z2]NTENTIONALLY LEFT BI-ANK
SEE PAGE 123 FOR REQUIRED INFORMATION.
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FERC FORM NO.2 (ED.
'2€6)
Page 122
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NOTES TO FINAI\CIAL STATEMENTS
NOTE 1. STJMMARY OF SIGI\IFICAIYT ACCOT]NTING POLICIES
Nature of Business
Avista Corporation (Avista Corp. or the Conpany) is an energy company engaged in the generation, hansmission and distribution of
energy as well as other energy-related businesses. Avista Utilities is an operating division of Avista Corp. conprising the regulated
utility operations. Avista Utilities generatcs, tansmits and distributes elecEicity in parts of eastem Washington and northern ldaho.
Avista Utilities also provides natural gas distibution service in parts of eastem Washington, northern Idaho, northeast and southwest
Oregon and in the South [^ake Tahoe region of California. Avista Capital, a wholly owned subsidiary of Avista Corp., is the parent
corpany of all of the subsidiary conpanies in the non-utility business segments.
The Conpany's operations are exposed to risks including but not limited to, the price and supply of purchased power, fuel and natural
gas, regulatory allowance of power and natural gas costs and capital investurents, streamllow and weather conditions, the effecs of
changes in legislative and governnrcnal regulations, changes in regulatory requirenrnts, availability of generation facilities,
corryetition, technology and availability of fimding. Also, like other utilities, the Conpany's facilities and operations may be exposed
to terrorism risks or other malicious acts. In addition, the energy business exposes the Conpany to the financial, liquidity, credit atrd
connnodity price risks associated with wholesale purchases and sales.
Bask of Reponing
Thc financial staternents include the assets, liabilities, revenues and expenses of the Conpany. As required by the Federal Energy
Regulatory Commission, the Conpany accounts for its investrrent in rnajority-owned subsidiaries on the equity method rather than
corsolidating the assets, liabilities, revenues, and expenses of these subsidiaries, as required by accounting principles generally
accepted in Ore United States ofAmerica. The acconpanying financial statemenE include the Conpany'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 financial statenpnts in conformity with accounting principles generally accepted in the United States of
America requires 6snegsment to make estimates and assunptions that alfect amounts reported in the financial statements. Sipificant
estimates include determining unbilled revenues, the market value of energy commodity assets and liabilities, pension and other
postretircrnent benefit plan liabilities, and contingent liabilities. Changes in these estimates and assunptio$ are considered reasonably
possible and may have a rraterial effect on the financial statements and thus actual results could differ from the arnounts reported and
disclosed herein.
System of Accounts
The accounting records of the Conpany's utility operations are maintained in accordance with the uniform system of accounts
prescribed by the Federal Energy Regulatory Conrnission (FERC) and adopted by the appropriate state regulatory conrnrissions.
Regulotion
The Corryany is subject to state regulation in Washingtorl Idaho, Montana, Oregon and Califomia. The Conpany is subject to
federal regulation by the FERC.
Avista Utilities Operating Revenues
Opcrating 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 custorners is based on the reading of their rneters, which
occurs on a systematic basis throughout the mouth. At the end of each month, the amount of energy delivered to custorners since the
date of the last meter reading is estimated and the corresponding unbilled revenue is estimated and recorded. Accotmts receivable
includes unbilled energy revenues of $9.0 million (net of $47.0 million of unbilled receivables sold) and $6.1 million (net of $40.9
million of unbilled receivables sold) as of December 3 l, 2003 and 2002, respectively. See Note 3 for information with respect to the
sale of accounts receivable.
FERC FORM NO.2 1 123.'.|
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30no0/.
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
Name of Respondent
Avista CorD.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t200/-
Year of Report
Dec 31, 2003
NOTES TO FIMNCIAL STATEMENTS (Continuod)
Advertising Expenses
The Conpany expens€s advertising costs as incurred. Advertising expenses totaled $1.4 miUioD, $1.3 milliou and $1.8 million in
20/.J.3,2002 and 2001, respectively.
Tares other than income toxes
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 ofproperty. Utility related taxes
collected from customers are recorded as both operating revenue and expense and totaled $31.7 million, $33.1 million and $26.3
million in 2003,2002 and 2fi)1, respectively.
Othcr Income-Nel
Other inconr-net consisted of the following items for the years ended Decerrber 3l (dollars in thousands):
200? )N),,2001
Interest inconr
Intcrest on power and uatural gas defcrrals
Inpairment of non-opera.'ng assets
Nct gain (loss) on the disposition of assets
Net gain (loss) on subsidiary investrnents
Minority interest
Other expense
Other incone
Total
fncome Toxes
(7,063) (6,570)1.606 4.467$6-171 ilI2fiL
$4,E10
8,361
(334)
(1,20't)
s7,716
9,597
(33)
2,084
$19,049
12,995
(8,240)
2,884
(180)
(656)
(10,208)
4.437
$2qoEL
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The Corryany and its eligible subsidiaries file consolidated federal income tax rcturs. Subsidiaries are charged or credited with the
tax effects of their operatiors on a stand-alone basis. The Coryany's federal income tax retums were examined with all issues
resolve{ and all payrnents made, through the 2000 rehrn
The Conpany accounts for incour taxes using the liability method. Under the liability method, a deferred tax asset or liability is
determined based on the enacted tax rates that will be in effect when the differences between the financial statement carrying amounts
and tax basis of existing assets and liabilities are expected to be reported in the Corrpany's consolidated inconrc tor retunrs. The
deferred tax expense for the period is equal to the net change in the deferred tax asset and liability accounts from the beginning to the
end of the pcriod. The effect on deferred taxes of a change in tax rates is recognized in incorre in the period that includes the
enactment date.
Stock-B ased Co m pen salio n
The Corryany follows the disclosure only provisions of SFAS No. 123, "Accounting for Stock-Based Corrpensation." Accordingln
erployee stock options are accounted for under Accormting Frinciple Board Opinion (APB) No. 25, "Accounting for Stock Issued to
Enployees." Stock optioDs are granted at exercise prices not less than the fair value ofconrnon stock on the date ofgrant. Under
APB No. 25, no corryensation expense is recognizsd pusuant to the Corryany's stock option plans.
FERC FORM NO.2 1 123.2
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
od,l30t200/.
Year of Report
Dec 31.2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
If conpensation e:(pense for the Conpany's stock option plans were determined consistent with SFAS No. 123, net incorne and
earnings per comil)n share would have been the following pro forma arnounts for the years ended Decernber 3l:
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Net inconrc (dollars in thousands):
As reported
Basic eamings per common share
As reported
Pro fonna
Diluted earnings per common share
As reported
Pro forma
$0.90 $0.60$0.85 $0.54
$0.89 $0.60$0.8s $0.54
$44,5(N $31,307 $12,156
Deduct Total stock-based enployee conpensation experre
determined rmder the fair value method for all awards, net of tax 2.186 3.051 2.801
Pro forrna $423fE $28256 $_9-155
$0.21
$0.15
$0.20
$0.15
Comprehensive Income
The Corpany's conpreheusive income is conprised of net income sad shanges in the unfirnded accumulated benefit obligation for
the peosion plan.
Earnings Per Commor Share
Basic eamings per cornmon share is conputed by dividing inconre available for conunon stock by the weighted avemge nurnber of
comfi)n shares outstanding for the period. Diluted eamings per cornmon share is calculated by dividing income available for comnon
stock by diluted weighted average conrnxln shares outstanding during the period, including conuu)n stock equivalent shares
outstanding using the treasury stock nrtho4 rrnlsss 5gs[ shares are antidlutive. Common stock equivalent shares include shares
issuable rryon exercise of stock options, coutingently issuable shares and restricted stock. See Note 2l for eamings per common share
calculations.
Cash and Cash Equivalents
For the purposes of the Consolidated Statenpnts of Cash Flows, the Conpany considers all tenporary investments with a purchased
maturity ofthree rnonths or less to be cash cquivalents. Cash and cash equivalents include cash deposits from counterparties. See
Note 6 for further information with respect to cash deposits from counterparties.
Allowance fo r D o ubtful Acco u nts
The Conpany rnaintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable. The
Cornpany determines the allowance for utility and other customer accolmts receivable based on historical write-offs as conpared to
accounts receivable and operating revenues. Additionally, the Conpany establishes specific allowances for certain iadividual
accounts. The following table documents the activity in the allowance for doubtful accounts during the years ended December 3l
(dollars in thousauds):
2002 2001
Allowance as of the beginning of the year
Additions expensed during the year
Nct deductions
Allowance as of the end of the year
$46,909
l,gl2
(2.439)
$46"1E2
$50,21I
3,469
(6.7711
$46.909
$14,404
39,947
(4.140)
$50eu
Inventory
Inventory consists primarily of materials and supplies, fuel stock and natural gas stored. Inventory is recorded at the lower of cost or
marke! primarily using the average cost method.
FERC FORM NO.2 1 123.3
Name of Respondent
Avista Com.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t2004
Year of Report
Dec 31, 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
Utility Ploat in Semice
The cost of additions to utility plant in service, including an allowance for funds used during construction and replacernents of units of
property atrd improvenrents, is capitalized. Costs ofdepreciable units ofproperty retired plus costs ofremoval less salvage are charged
to accunrlated depreciation.
Allowancefor Funds Used During Constructlon
The Allowance for Funds Used During Construction (AFt DC) represents the cost of both the debt and equity firnds used to finance
utility plant additions during the constuction period. In accordance with the uniform system of accounts prescribed by regulatory
authorities, AFUDC is capitali"ed as a part of the cost of utility plant and is credited currently as a non-cash item in the Consolidated
Statemcnts of Inconrc in the line item capitalized interest. The Conpany generally is permitted, under established regulatory rate
practices, to recover the capitalized AFUDC, and a fair retum thereon, tbrough its inclusion in rate base and the provision for
deprcciation after the related utility plant is placed in service. Cash inllow related to AFLTDC generally does not occur until the related
utility plant is placed in service and included in rate base.
The effective AFUDC rate was 9.72percefi for 2fi)3 and the second half of 2002 arrd 9.03 percent for the fust half of 2002 and 2001.
The Coryany's AFUDC rates do not exceed the maxirmrm allowable rates as determined in accordance with the requirements of
regulatory authorities.
Depreciation
For utility operations, depreciation expeme is estimated by a nrthod of depreciation accounting utilizing tmit rates for hy&oelectric
plants and conposite rates for other utility plant. Such rates are desiped to provide for retirements of properties at the expiration of
their service lives. The rates for hydroelectic plants include annuity and interest corponents, in which the interest conponent is 9
percent. For utility operations, the ratio of depreciation provisions to average depreciable property was 2.98 percent n 2003, 2.92
percent lo20/J.2 and 2.84 percent in 2001.
The average service lives for the following broad categories of utility property are: electric thermal production - 30 years;
hydroelectric production - 77 years; electric transmission - 4l years; electric distribution - 46 years; and natural gas distribution
property - 35 years.
The Conpany recovers certain asset retirement costs through rates charged to customers as a portion ofits depreciation expense. The
Conpany had estirnated retirenrent costs of $197.7 million and $185.4 million included as a regulatory liability on the Consolidated
Balance Sheet as of December 31, 2003 afr20{l.2, respectively. These costs do not represent legal or contractual obligations.
Reguluory Deferred Charges and Credits
The Conpany prepares is consolidated financial statements in accordance with the provisions of SFAS No. 71, "Accounting for the
Effects of Certain Tlpes of Regulation." The Conpany prepares its financial statements in accordance with SFAS No. 7l because (i)
the Conpany's rates for regulated services are established by or subject to approval by an independent third-party regulator, (ii) the
regulated rates are desiped to recover the Conpany's cost of providing the regulated services and (iii) in view of demand for the
regulatcd services and the level of corryetition, it is reasonable to assutne that rates can be cbarged to and collected from custonrers at
levels that will recover the Conpany's costs. SFAS No. 7l requires the Coupany to reflect the irrpact 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 not
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 are
recognized. If at some point in the future the Conpany determines that it no longer meets the criteria for continued application of
SFAS No. 7l with respect to all or a portion of the Corrpany's regulated operations, the Conpany could be required to write off its
regulatory assets. The Conpany could also be precluded from the futrue deferral of costs not recovered through rates at the tinre such
costs were incurrc4 even if the Coryany expected to recover such costs in the futrue.
The Coryany's prirDary regulatory assets include power and natual gas deferrals (see '?ower Cost Defenals and Recovery
Mecbanisms" and'Natural Gas Cost Deferrals and Recovery Mechanisms" below for further information), investrnent in exchange
power (see "luvestsnent in Exchange Power-Net" below for flrrther information), regulatory assets for deferred income taxes (see Note
l0 for fiuther information), unamortized debt expense (see "Urramortized Debt Expense" below for further information), regulatory
asset for consolidation of variable interest entity (see Note 2 for further infomution), demand side management prograns,
FERC FORM NO.2 .1 123.4
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conservation programs and the provision for poshetirement 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):
Regulatory asset for consolidation ofvariable interest entity
Regulatory asset for postretirernent benefit obligation
Demand side management and conservation programs
Other
Total
$16,707
4,255
19,683
3.736
$4438r
$-
4,728
23,733
t.274
$29fi5
Regulatory liabilities include utility plant retirenrcnt costs. Deferred credits include, among other items, regulatory liabilities created
when the Centralia Power Plant (Cenralia) was sold, regulatory liabilities offsetting net energy connnodity derivative assets (see Note
4 for firther information) and the gain on the general office building sale/leaseback, which is being arnortized over the life of the lease,
and are included on the Consolidated Balance Sheets as other notr-current liabilities and deferred credits.
Regulatory assets that are not currently included in rate base, lsing recovered in curent rates or earning a retum (accruing interest),
totaled$24.3millionasofDecember3l,2003. The rnostsigaifrcantofthese assetswasthe$16.Tmillionregulatoryassetforthe
consolidation of a variable interest entity (WP Funding LP) and $5.3 million of dernand side management prograrns. Avista Utilities'
lease payments to WP Funding LP of $4.5 million are being recovered in current rates; the regulatory asset primarily represents the
accumulated difference betweeu depreciatiou expense on the plant and the principal payments made on the debt obligation (see Note
2), which will be reversed in future periods as debt principal paymeuts are made. The balance of the demand side management
regulatory asset will be reduced through future recoveries from customers that are more than fuhue amounts expended on such
programs.
Investment in Exchange Power-Net
The investnent in exchange power represents the Conpany's previous investrnent in Washington Public Power Supply System Project
3 (WNP-3), a nuclear project that was terminated prior to conpletion. Under a settlement agreement with the Bonneville Power
Administation in 1985, Avista Utilities began receiving power in 1987, for a32.5-year period, related to its investnent in WNP-3.
Tbrough a settlenrcnt agreerrnt with the Washington Utilities and Transportation Commission (WUTC) in the Washinglon
jurisdiction, Avista Utilities is amortizing the recoverable portion of its investrrcnt in WNP-3 (recorded as investment in exchange
power) over a 32.5 year period beginning in 1987. For the Idaho jurisdictioq Avista Utilities has frrlly amortized the recoverable
portion ofits investnent in exchange power.
Unam ortized Debt Expense
Unamortized debt expense includes debt issuance costs that are amortized over the life of the related debt, as well as premiums paid to
repuchase debt which are amortized over the average remaining maturity of outstanding debt in accordance with regulatory
accounting practices under SFAS No. 71. These costs are recovered through retail rates as a co[ponent ofinterest expense.
Notural Gas Benchmark Mechanism
The ldaho Public Utilities Conunission (IPUC), WIrTC and Oregon Public Utilities Commission (OPUC) approved Avista Utilities'
Natural Gas Benchmark Mechanism in 1999. The mechanism eliminated the majority of natural gas pr(nrement operations within
Avista Utilities and placed responsibility for natural gas procurenrcnt operations in Avista Energy, the Conpany's non-regulated
subsidiary. The ownership of the natural gas assets remains with Avisa 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 ofits total natural gas therm sales.
The Natural Gas Benchmark Mechanism provides benefits to retail custonrers and allows Avista Energy to retain a portion of the
benefits associated with asset optimization and the efliciencies gained in purchasing natural gas for Avista Utilities as part of a larger
portfolio. tn the fust 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 mlTC approved the continuation of the Nanual Gas
FERC FORM NO.2 1 123.5
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
04t30t2004
Year of Report
Dec 31. 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Respondent
Avish Gorp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
04t30120u
Year of Report
Dec 31, 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
Benchmark Mechanism and related Agency Agreemeut through January 29,2004. In February 2004, the WIITC ordered that fte
Natural Gas Benchmark Mechanism and related Agency Agreemcnt be tcrminated for Washingon custorners and ordered Avista
Utilities to file a transitionplan to move management of these fimctions back into Avista Utilities.
In accordance with SFAS No. 71, profits recognized by Avista Energy on natural gas sales to Avista Utilities, including gains and
losses on natural gas contracts, are not eliminated in the consolidated frnancial statements. This is due to the fact that Avista Utilities
erpects to r€cover the costs of natural gas purchases to serve retail custorners and for fuel for electric generation through funue retail
rates.
Power Cost Deferrals and Recovery Mechsnisms
Avista Utilities defers the recognition in the income statement of certain power supply costs as approved by the WtITC. Deferred
power supply costs are recorded as a deferred charge on the balance sheet for future review and the opportunity for recovery through
retail rates. The power supply costs deferred include certain differences between actual power supply costs incurred by Avista Utilities
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 aud changes in the level of thermal generation (including
changes in fuel prices). Avista Utilities accrues interest on deferred power costs in the Washington jurisdiction at a rat€, which is
adjusted semi-annually, of 8.5 percent as of December 31, 2fi)3. Total defened power costs for Washington customers were $125.7
million and 5123.7 million as of December 3 l, 2003 ard 2002, respectively.
The WUTC issucd an ordcr that became cffective July l, 2002 for restucturing of rate increases previously approved by the WUTC
totaling 3 I .2 percent. The July 2002 r:ate change increased base retail rates 19.3 percent and provided an I I .9 percent continuing
surcharge for the recovery of deferred power costs. The WUTC rate order also established an Energy Recovery Mechanism (ERI,I)
effcctive July l, 2002. The ERM replaced a series of tenporary deferral mechanisms that had been in place in Washington since
mid-2000. The ERM allows Avista Utilities to increase or decrease electic rates periodically with WUTC approval to reflect changes
in power supply costs. The ERM provides for Avista Utilities to incu the cost ol or receive the benefit fronu the first $9.0 million in
annual power supply costs above or below the arnount included in base retail rates. Under the ERM, 90 percent of annual power supply
costs exceeding or below the initial $9.0 milliou are deferred for future surcharge or rebate to Avista Utilities' customers. The
rcmaining l0 percent of power supply costs are an experuie of, or benefit to, the Conpany.
Under the ERM, Avista Utilities makes an annual filing to provide the opportunity for the WUTC and other interested parties to review
the prudence of and audit the ERM deferred power cost tansactions for the prior calendar year. Avista Utilities made its first annual
frling with the WUTC in March 2003 related to $ 18.4 million of deferred power costs incurred for the period July l, 2002 through
December 31,2002. In January 2004, the WUTC approved a settlernent agreerrent among Avista Utilities, the WUTC staffand the
lndusrial Custonrers of Northwest Utilitics, which provided for Avista Utilities to write off $2.5 million (recorded in 2003) of
previonsly deferred power costs related to the delay of the Coyote Springs 2 project ur-2002 and 2003 and allows recovery of all other
deferred power costs incurrcd through Dccember 31,2002.
Avisa Utilities has a power cost adjustment (PCA) rnechanism in Idaho that allows it to modiff electric rates pcriodically with IPUC
approval. Under the PCA mechanisnl Avista Utilities defers 90 perccnt of the difference b€tween certain achral net power supply
expenses and the authorized level ofnet power supply expenses approved in the last Idaho general rate case. Avista Utilitics accrues
intcrest on deferred power costs in the Idaho jurisdiction at a rate, which is adjusted arnually, of 1.0 percent on current year deferrals
and3.0percentoncarryoverbalancesasofDecember3l,2003. TheIPUCoriginallyapprovedal9.4percentsurchargeinOctober
2001, which has been extended tlrough October 2004 for recovery of previously deferred power costs. Based ou IPUC staff
recorunendations and IPUC orders, the prudence of $11.9 million of deferred power costs will be reviewed in the electric general rate
case that Avista Utilities filed in Febnrary 20O4. Total deferred power costs for Idaho customerc were $30.3 million and $3 1.5 million
as ofDecember 31, 2003 amrd2002, respectively.
Notural Gas Cosl Delenals and Recovery Mechanisms
Under established regulatory practices in each respective state, Avista Utilities is allowed to adjust its natual gas rates periodically
(with regulatory approval) to reflect increases or decreases in the cost ofnatural gas purchased. Differences between actual natural gas
costs and the natural gas costs already included in retail rates are deferred and charged or credited to expense when regulators approve
inclusion of the cost changes in rates. Toal deferred natural gas costs were $15.4 million and $l1.5 million as of December 31, 2003
arld 2002, respectively.
FERC FORM NO.2 123.6
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Name of Respondent
Avista CorD.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
ut30t2004
Year of Report
Dec 31, 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
Reclassitications
Certain prior period anrounts were reclassilied to conform to current statement format. These reclassifications were made for
conparative purposes and to conform to changes in accounting standards and have not affected previously reported total net income or
conrnron equity.
NOTE 2. I\TEW ACCOT'NTING STAIIDARDS
In June 2fi)1, the Financial Accounting Standards Board (FASB) issued SFAS No. 143, "Accounting for Asset Retirement
Obligations" which addresses finaucial accounting and reporting for legal or contractual obligations associated with the retirenrnt of
tengible long-lived assets and the associated asset retirement costs. This staternent requires the recording of the fair value of a liability
for an asset retirement obligation in the period in which it is incurred. When the liability is initially recorded, the associated costs of
the asset retirenrcnt obligation will be capialized as part of the carrying arrount of the related longJived asset. The liability will be
accreted to its present value each period and the related capitalized costs will be depreciated over the useful life ofthe related asset.
Upon retirement of the asset, the Conpany will either settle the retirement obligation for its recorded amount or incur a gain or loss.
The adoption ofthis statement on January l,2003 did not bave a rnaterial effect on the Conpauy's financial condition or results of
operations.
The Conpany recovers certain utility plant retirement costs through rates charged to customers as a colponent of depreciation
expense. To conform to SFAS No. 143, the Conpany has reclassified$197.7 million and $185.4 million of utility plant retirement
costs previously recorded in accumulated depreciation to regulatory liabilities as of December 31, 2003 and 2002, respectively. These
costs do not represent legal or confiactual obligations.
In June 2fi)2, the FASB issued SFAS No. 146, "Accounting for Costs Associated wift Exit or Disposal Activities" which nullifies
EITF Issue No. 94-3, "Liability Recopition for Certain Enployee Termination Benefits and Other Costs to Exit an Activity (including
Certain Costs Incurred in a Restructwing)." This statement requires that a liability for a cost associated with an exit or disposal
activity is recognized when the liability is incurred. Under EITF Issue No. 94-3, a liability for an exit cost was recognized at the date
of an entity's corilniinent to an exit plan. SFAS No. 146 also requires the initial measurement of the liability at fair value. This
statement is effective for exit or disposal activities that were initiated after December 31,2002. The adoption of this staternent did not
have any effect on the Conpany's financial condition or results ofoperations.
In Decernber 2002,the FASB issued SFAS No. 148, "Accounting for Stock-Based Conpensation - Transition and Disclosure" which
amends SFAS No. 123 "Accounting for Stock-Based Conpensation" This statement provides alternative methods of transition for a
voluntary cbange to the fair value rnethod of accounting for stock-based corpensation. In addition, this statenrent requires the
disclosure of pro forma net income and earnings per corrunon share had the Corryany adopted the fair value method of accounting for
stock-based conpensation in a more prominent place in the frnancial staternents (see Note I "Stock-based Conpensation"). This
statem€ut also requires the disclosure of pro forma net income and earnings per cornmon share in interim as well as annual financial
statements. The alternative Eansition methods and annual frnancial statenrcnt disclosures are effective for fiscal years ending after
Decenrber 15,2002. Interimdisclosures are required forperio& ending afterDecember 15,2002. The adoptionof this statement
affects the Conpany's disclosures. As the Company has not elected to adopt the fair value rnethod of accounting for stock-based
conpensation, the adoption of this staternent does not have any effect on the Corryany's financial condition or results of operations.
In April 2fi)3, the FASB issued SFAS No. 149, "Amendnrent of Statement 133 on Derivative Instuments and Hedging Activities."
This statement amends SFAS No. 133 for decisions made: (l) as part of the Derivatives Inplemeutation Group process that effectively
required arneudments to SFAS No. 133; (2) in connection with other FASB projects ds6ling with financial instnrments; and (3) in
connection with inplementation issues raised in relation to the application of the definition of a derivative, (in particular, the rneaning
of an initial net investnent that is smaller than would be required for other types of contacts that would be expected to have a similar
response to changes in market factors, the meaning of underlying, and the cbaracteristics of a derivative that contain financing
corrponents). This statement is effective for contracts entered into or modified after June 30, 2003, except as stated below and for
hedging relationships designated after June 30, 2003. The provisions of SFAS No. 149 that relate to SFAS No. 133 irrylementation
issues that were effective for fiscal quarters that began prior to June 15, 2003 should continue to be applied in accordance with their
respective effective dates. In additioq certain provisioos relatirg to forward purchases or sales of"when-issued" securities or other
securities that do not yet exist, should be applied to existing contracts as well as new contracts entered into after June 30, 2fi)3. Avista
FERC FORM NO.2 123.7
Name of Respondent
Avista Com.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t20u
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
Utilities has entered into certain forward contacts to purchase or sell power and natual gas used for generation that no longer meet the
normal purchases and sales exception in accordance with the provisions of SFAS No. 149. This statement requires that substantially
all new forward contracts to purchase or sell power and natural gas used for generation, which were entered into on or after July l,
2003, be recorded as assets or liabilities at rnarket value with an olfsetting regulatory asset or liability as authorized by regulatory
accounting orders (see Note 4). In accordance with the provisions of SFAS No. 149, Avista Utilities recorded derivative assets of $1.5
million and derivative liabilities of $0.1 million as of Decernber 31, 2003.
In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial Instrurn€nts with Cbaracteristics of Both Liabilities
and Equity." This staterrnt requires the Conpany to classi$ certain financial instnrments as liabilities tbat have historically been
classified as equity. This statement requires the Conpany to classiff as a liability financial instnurrnts that are subject to mandatory
redenrytion at a specified or determinable date or upon an event tbat is certain to occur. This statement was effective for financial
instrurnents entered into or modified after May 31, 2003, and otherwise was effective at the beginning of the first interim period
beginning after June 15, 2003. The restatement of financial statements for prior periods is not permitted. The adoption of this
statement required the Conpany to classifr $31.5 million of prefened stock subject to mandatory redenption as liabilities on the
Consolidated Balance Sheet. The adoption of this statement also required the Coryany to classify preferred stock dividends of $ l. I
million for the period from July l, 2003 through December 31, 2003 as interest expense in the Cousolidated Statcments of lncomc.
The adoption of this statemcnt does not cause the Coryany to fail to rDeet any of the covenants of the Corryany's $245.0 million
coumitted line of credig including covenants not to permit the ratio of "consolidated total debt" to "consolidated total capitalizatiod'
ofAvisa Corp. to be greater than 65 percent at the end ofany fiscal quarter as the covenant calculations exclude the effect ofchauges
in accounting standards.
In December 2003, the FASB issued SFAS No. 132 (revised 2003), "Erryloyers' Disclosures about Pensions and Other Postetirement
Benefits." This satement requires expanded disclosures with respect to pension plan assets, benefit obligations, cash flows, benefit
costs and other relevant inforrnation. However, this statement does not change the measurement and recognition provisions of
previous FASB statements related to pensions and other postretirernetrt benefits. The Conpany was required to adopt this statement
for 2fi)3. The adoption of this statement did not have any effect on the Conpany's financial condition or results of operations. The
expanded disclosures required by this statement are included in Note 9.
In July 2fi)3, the EITF reached coiliensus on Issue No. 03-l l, 'Reporting Realized Gains and Losses on Derivative Instruments That
Are Subject to FASB Statement No. 133 and Not Held for Trading Purposes as Defined in EITF Issue No. 02-3." This EITF Issue
requires \at revenues and resource costs fiom Avista Utilities' settled etrergy contracts that are 'booked out" (not physically
delivered) should be reported on a net basis as part ofoperatrng revenues effective October 1,2003. The adoptiou ofthis EITF Issue
resulted in a reduction in operating revenues and resource costs of approximately $1.2 million for 2fi)3 as corryared to historical
periods for Avista Utilities. This effcct on operating revenues and resource costs will be rnore sigiificant in 2004 and subsequent years
as the netting of "booked out" contracts will be recorded for the entire year.
In November 2002, the FASB issued lnterpretation No. 45, "Guarantor's Accounting and Disclosue Requirenrcnts for Guarantees,
Including Indirect Guarantees of Indebtedness of Others." This interpretation clarifies the requirements of SFAS No. 5, 'lA,ccounting
for Coutingencies" relating to a guarantor's accounting for, and disclosure o(, the issuance of certain types of guarantees. This
interpretation requires that upon issuance of a guarantee, the guarantor rnust recopize a liability for the fair value of the obligation it
assunes under tbat guarantee. The initial recognition and rneasurement provisions of this interpretation are to be applied on a
prospective basis to guarantees issued or modified subsequent to December 31, 2002 and did not have a material effect on the
Coryany's financial condition or results of operations. The disclosure requirements ef this interpretation are effective for financial
staterDents issued for periods that end after Deceurber 15, 2002. See Note 17 for disclosure of the Corryany's guarantees.
In January 2fi)3, the FASB issued [nterpretation No. 46, "Consolidation of Variable Interest Entities," which was revised in Decernber
2003 (collectively referred to as FIN 46). In October 2003, the irrylementation of FIN 46 was delayed from the third quarter of 2003
to the fourth quarter of2003. In general, a variable interest cntity does not have equity investon with voting rights or it has equity
investors that do not provide sufftcient financial resources for the entity to support its activities. Variable interest entities are
comrnonly referred to as special purpose entities or off-balance sheet structues; however, FIN 46 applies to a broader group of
entities. FIN 46 requires a variable interest entity to be consolidated by the prirnary benefrciary of that entity. The primary beneficiary
is subject to a rnajority ofthe risk ofloss from the variable interest entity's activities or it is entitled to receive a majority ofthe entity's
residual retums. FIN 46 also requires disclosue of variable interest entities that a conpany is not required to consolidate but in which
FERC FORM NO.2 't23.8
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Name of Respondent
Avista Com.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
041301200/
Year of Report
Dec 31, 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
it has a significant variable interest. The consolidation requirements of FIN 46 applied immediately to variable interest entities created
after January 31, 2003 and applied to certain existing variable interest entities for &e frst fiscal year or interim period ending after
December 15, 2003. Application for all other tlpes of eutities is required for periods ending after March 15, 2004.
FIN 46 required the Corryany to consolidate WP Funding LP effective for the period ended Decernber 31, 2003. WP Funding LP is
an entity that was formed in 1993 for the purpose of acquiring the natural gas-fued combustion turbine generating facility in Rathdrunt,
Idaho (Rathdnln CT). WP Funding LP purchased the Rathdnrm CT fromthe Coryany with funds provided by umelated investors of
which 97 percent represented debt and 3 percent represented equity. The Conpany operates the Rathdrum CT and leases it fiom WP
Funding LP. The total amount of WP Funding LP debt outstanding was $54.6 million as of Decernber 31, 2fi)3. The lease term
expires in February 2020; however, the current debt matures in October 2005 and will need to be refinanced at that time. As of
December 31, 2003, the book value of the debt and equity of WP Funding LP exceeded the book value of the RatMrum CT by $16.7
million. In accordance with regulatory accounting practices, the Coryany recorded this amount as a regulatory asset upon the
consolidation of WP Funding LP. The addition of the Rathdrum CT to Avista Utilities' generation resource base, which entered
connnercial operation ir 1995, was reviewed in previous state regulatory filings with the WUTC and IPUC. The consolidation of WP
Funding LP increased long-term debt by $54.6 milion, net utility property by $39.6 million, other regulatory assets by $16.7 million
and other liabilities by $1.7 million (rcpresenting minority interest) as of December 31, 2003.
FIN 46 also resulted in the Corpany no longer including Avisa Capial I and Avista Capital II in its consoli&ted financial statements
for the period ended December 31, 2003. Avista Capital I and Avista Capial II are business trusts formed in 1997 for the purpose of
issrring a combined $l10.0 million of preferred tnrst securities to third parties aud $3.4 million of common trust securities to Avista
Corp. The sole assets of Avista Capital I and Avista Capital II are $l13.4 million ofjunior subordinated deferrable interest debenhres
of Avisa Corp. Avista Capial I and Avista Capital II are considered variable interest entities under the provisions of FIN 46. As
Avista Corp. is not the prirnary beneficiary, these entities arc no longer included in Avista Corp.'s consolidated financial statements.
The removal of Avista Capital I and Avista Capital II resulted in a decrease in prefened trust securities of $100.0 million, an increase
in long-term debt to affrliated trusts of $l13.4 million and an increase in investnents in affiliated trusts of $13.4 million (representing
the $3.4 million of common trust securities and $10.0 million of preferred trust securities purchased by Avista Corp. in 2000) as of
December 31, 2003. lnterest expense to affrliated trusts of $1.5 million in the Consolidated Statements of Income for 2003 represents
interest expense on the $l13.4 million of long-term debt to affiliated tnrsts for the fourth quarter of 2003.
The adoption FIN 46 does not cause the Conpany to fail to rneet any of the covenants of the Corrpany's $245.0 million comrnitted
line of credit including covenants not to p€rmit the ratio of "consolidated total debt" to "consolidated total capitalization" of Avista
Corp. to be greater than 65 percent at the end of any fiscal quarter as the covenant calculations exclude the effect of changes in
accounting standards.
NOTE 3. ACCOI'NTS RECEryABLE SALE
In 1997, Avista Receivables Corp. (ARC) was formed as a wholly owned, banknrptcy-remote subsidiary of the Conpany for the
purpose of acquiring or purchasing interests in certain accounts receivable, both billed and unbille4 of the Corryany. On May 29,
2002, ARC, the Conpany and a third-party financial institution entered into a three-year agreement whereby ARC can sell without
recoluse, on a revolvi.g basis, up to $100.0 million of those receivables. ARC is obligated to pay fees that approximate the
purchase/s cost of issuing cornmercial paper equal in value to the interests in receivables sold. On a consolidated basis, the amormt of
such fees is included in operating erperxies of the Conpany. As of December 3 l, 2003 and 2002, $72.0 million and $65.0 million,
respectively, in accormts receivables were sold under this revolving agreement.
NOTE 4. UTILITYENERGY COMMODITY DERTVATIVE ASSETS AIYD LIABILITIES
SFAS No. 133, as amended by SFAS No. 138, establishes accormting and reporting standards for derivative instruments, including
certain derivative instnrments embedded in other conEacts, and for hedging activities. It requires the recording ofall derivatives as
either assets or liabilities on the balance sheet measured at estirnated fair value and the recognition ofthe 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 ofthe derivatives and the resultrng designation.
FERC FORM NO.2 123.9
Name of Respondent
AvisE Corp.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t2004
Year of Report
Dec 31.2(X)3
NOTES TO FIMNCIAL STATEMENTS (Continued)
Avista Utilities enters into forward contracts to purchase or sell energy. Under these forward contracts, Avista Utilities commits to
purchase or sell a specified amount of euergy at a specified time, or during a specified period, in the futrue. Certain of these forward
contracts are cousidered derivative instnrments. Avista Utilities also records derivative commodity assets and liabilities for
over-the-counter and exchange-traded derivative instnrments as well as certain long-term contacts. These contracts are entered into as
part of Avista Utilities' management of its loads and resources as discussed in Note 5. In conjunction with the issuance of SFAS No.
133, the WIJTC and the IPUC issued accounting orders authorizing Avista Utilities to offset any derivative assets or liabilities with a
regulatory asset or liability. This accounting treafilent is intended to defer the recopition of rnark-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 conrnodity instuments in the Consolidated Statements of Income. Realized gains or losses are
recognized in the period ofsettlement subject to current or future recovery in retail rates. Realized gains and losses are reflected as
adjustnents through purchased gas cost adjusfineuts, the ERM and the PCA mechanism.
Prior to the adoption of SFAS No. 149 on July l, 2003, Avista Utilities elected the normal purchases and sales exception for
substantially all of its conmcts for both capacity and energy under SFAS No. 133. As such, Avista Utilities was not required to
record these contracts as derivative commodity assets and liabilities. See Note 2 for a discussion of prospective shanges that furpact
the accounting for contracts when entered on or after July l, 2003, in accordance with SFAS No. 149. Contracts that are Dot
considered derivatives under SFAS No. 133 are generally accounted for at cost until they are scttled or realized, ''less there is a
decline in the fair value of the contract that is determined to be other then fgryerary.
As of December 31, 2003, the utility derivative commodity asset balance was $39.5 millioru the derivative commodity liability
balance was $36.1 million and the offsetting net regulatory liability was $3.4 milliou. As of December 31,2002, the utility derivative
commodity asset balance was $60.3 million, the derivative connnodity liability balance was $50.1 million and the offsetting net
regulatory liability was $10.2 million. Utility derivative asseb 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 offsetting net regulatory liability is included in other non-current liabilities and defened credits on the
Consolidated Balance Sheet.
NOTE 5. EI\TERGYCOMMODITY TRADING
The Conpany's energy-related businesses are exposed to risks relating to, but not limited to, changes in certain commodity prices,
interest rates, foreign crurency and counterparty performance. In order to rnaDage the various risks relating to these exposures, Avista
Utilities utilizes derivative instrunrents, such as forwards, futures, swaps and options, and Avista Energy engages in the fading of such
instrulrcnts. Avista Utilities and Avista Energy use a variety of tecbniques to rnanage risks for their energy resources and wholesale
energy rnarket activitics. The Conpany has risk managerrrnt policies and procedures to rnanage these risks, both qualitative and
quantitative, for Avista Utilities and Avista Energy. The Conpany's Risk Managenrcnt Conrnittee, which is separate from the units
asked with managing this risk er(posure and is overseen by the Audit Connnittee of the Conpany's Board of Directors, monitors
coupliance with the Conpany's risk management policies and procedues.
Avista Utilities
Avista Utilities engages in an ongoing process of resource optimization, which involves the pursuit of economic resources to serve load
obligations and using existing resources to capture available economic value. Avista Utilities sells and purchases wholesale electric
capacity and energy to and from utilities and other entities as part ofthe process ofacquiring resources to serve its retail and wholesale
load obligations. These tansactions range from a term as short as one hour rp to long-term contracts that extend beyond one year.
Avista Utilities makes continuing projections of (l) futrue retail and wholesale loads based oD, arxlng other things, forward estimates
of facton such as customer usage and weather as well as historical data and contract terrns and (2) resorrce availability based on,
among other things, estimates of streamflows, generating udt availability, historic and forward market information and orperience. On
FERC FORM NO.2 1 123.10
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Name of Respondent
Avista CorD.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
ut30t2004
Year of Report
Dec 3'1,2003
NOTES TO FINANCIAL STATEMENTS (Continued)
the basis of these continuing projections, Avista Utilities makes purchases and sales of energy on an annual, quarterly, monthly, daily
and hourly basis to match expected resources to expected energy requirements. Resource optimization also includes transactions such
as purchasing fuel to run thermal generation and" when economic, selling fuel and substituting wholesale market purchases for the
operation of Avista Utilities' own resources, as well as other wholesale tansactions to capture the value of available generation and
Eansmission resources. This optimization process includes entering into financial and physical hedgrng transactions as a means of
rnanaging risks.
Avista Utilities nBnages the inpact of fluctuations in electric energy priccs by establishing volurne limits for the irnbalance betwecn
projected loads and rcsources and through the use of derivative commodity instruments for hedging purposes. Any load/resource
irnbalances within a rolling l8-month planning horizon are managed within risk policy volumetric limits. Management also assesses
available resource decisions and actions Orat are appropriate for longer-term planning periods. Avista Energy is responsible for the
daily rnanagement of natural gas supplies to meet the requirements of Avista Utilities' customers in the states of Washington, Idaho
and Oregon. In February 20M, the mlTC ordered that the Natural Gas Benchrnark Mechanism and related Agency Agreement be
terminated for Washington customers (see description of Natural Gas Benchmark Mechanism in Note 1). Avisa Utilities continues to
nxmage natural gas procurernent for its California operations, which currently represeuts approximately four percent of its total natural
gas themr sales.
Marka Rish
Market risk is, in general, the risk of fluctuation in the rnarket price of the couunodity being traded and is influenced prirnarily by
supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instnunents. Market
risk is inlluenced to the extent thet the performance or nonperfonnance by market participants of their contractual obligations and
corrnitments affect the supply of, or demand for, the commodity.
Avisa Utilities and Avista Energy manage, on a portfolio basis and on a delivery point basis, the market risks inherent in their
activities subject to parameters established by the Conpany's Risk Management Committee. These parameters include but are not
limited to overall portfolio and delivery point volumetric limits. Market risks are npnitored by the Risk Management Committee to
ensure conpliance with the Corrpany's risk managernent 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 portrolio on a daily basis
utilizing a VAR model and monitors its risk in comparison to established thresholds.
Credit Rkk
Credit risk relates to the risk of loss tbat Avista Utilities and/or Avista Energy would incur as a result of non-performance by
counterparties of their contractual obligations to deliver energy and make financial settlements. Credit risk includes the risk that a
counterparty may default due to circumstances relating directly to it and the risk that a counterparty may default due to circumstances
that relate to other market participants that have a direct or indirect relationship with such counterparty. Avisa Utilities and Avista
Energy seek to mitigate credit risk by applying specific eligibility criteria to existing and prospective counterparties and by actively
monitoring curent credit exposures. These policies include an evaluatiou of the financial condition and credit ratings of
counterparties, collateral requirements or other credit enhance[Ents, such as letters ofcredit or parent co[pany guarantees, and the use
of standardized agreenrents 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 the ability of Avista Utilities and Avista Energy to
perform deliveries and scttlernent of energy transactions. These counterparties may seek assurance of performance in the fomr of
letters of credit, prepayrnent or cash deposits and, in the case of Avista Energy, parent corpany (Avista Capial) performance
guarantees. In periods of price volatility, the level of exposure s1a shange significantly, with the result that sudden and sipificant
demands rray be made against the Conpany's capital resource reserves (credit facilities and cash). Avista Utilities and Avista Energy
actively monitor the exposrue to possible collateral calls and take steps to minimize capital requirements.
FERC FORM NO.2 1 123.1 I
Name of Respondent
Avlsta Conc.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04130t2004
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
(hher Operating Risks
In addition to conrrrodity price risl Avista Utilities' conrmodity positions are subject to operational and event risks including, among
others, increases in load demand, transmission or traosport disruptions, fuel quality specifications, changes in regulatory requirements,
forced outages at generating plants and disnrptions to information systerns 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 repairs to restore utility service. The emergence ofterrorism tbreats, both domestic and foreig4 is a risk to the entire utility
industry, including Avista Utilities. Potential disruptions to operatioos or destruction of facilities from terrorism or other malicious
acts are not readily determinable. The Coryany has taken various steps to mitigate terrorism rists and to prepare contingency plans in
the event that its facilities are targeted.
NOTE 6. CA,SE DEPOSITS WTII AIYD TROM COI]NTERPARTIES
Cash deposits from counterparties totaled $97.8 million and $92.7 million as of December 31, 2003 and 2002, respectively, and are
disclosed as deposits from counterparties on the Consolidated Balance Sheet. These funds are held by Avisa Utilities and Avista
Energy to mitigate the potential iryact of couuterparty default risk- These amunts are subject to retum if conditions warant because
of continuing pordolio value fluctuations with those parties or substitution of non-cash collateral.
Cash deposited with counterparties totaled $36.8 million and $35.7 million as of December 3 l, 2003 and 2N\ respectively, and is
included in prepayurnts and other current assets on the Consolidated Balance Sheet.
As is comnon industry practice, Avista Utilities and Avista Energy rnaintain rnargin agreements with certain counterparties. Margin
calls are tiggercd when exposures exceed predetermined contractual limits or when there are changes in a counterparty's
creditworthiness. Price movenrcnts in electicity and natural gas can generate exposure levels in excess of these contractual limits.
From timc to tirre, margin calls are made and/or received by Avista Utilities and Avista Energy. Negotiating for collateral in the form
of casb, letters of credig or parent conpany perfonnance guanntees is a comrnon industy practice.
NOTE 7. JOINTLY OWI\IED ELECTRIC FACILITIES
The Conpany has a 50 percent ownership interest in a combined cycle nahual gas-fired tr'ubine power plant, the Coyote Spriugs 2
Generation Plant (Coyote Springs 2) located in north-cenfial Oregon, which was placed into operation in 2003. The Conpany's
investmcnt in Coyote Springs 2 was held by Avisa Power as of December 31, 2002 and was included in non-utility properties and
investnents-net on the Consolidated Balance Sheet. In January 2fi)3, the Conpany's ownership interest in the plant was transferred
from Avista Power to Avista Corp. to be operated as an asset of Avista Utilities and was included in utility plant in service on the
Consolidated Balance Sheet as of Decernber 31, 2003. The Corryany's share of related fuel costs as well as opera+ing and rnaintenance
experures for plant in service are included in the corresponding accounts in the Consolidated Statements of Income. The Conpany's
share of utility plant in service for Coyote Springs 2 was $109.0 million and accumulated depreciation was $2.2 million as of
December 31, 2003.
The Conpany has a 15 percent ownership interest in a twin-unit coal-fired generating facility, the Colstrip Generating Project
(Colstip) located in southeastem Montana, and provides frnancing for its owuership interest in the project. The Coryany's share of
related fuel costs as well as operating and nraintenance expeDses for plaut in service are included in the corresponding accormts in the
Consolidated Statements of Income. The Conpany's share of utility plant in service for Colstrip was $323.6 million and accumulated
depreciation was $167.6 million as of Decerrber 31, 2003.
FERG FORM NO.2 123.12
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NOTE 8. PROPERTY, pLAttT AI\[D EQUIPMENT
The balances of the nrajor classifications of property, plant and equipment are detailed in the following table as of December 31
(dollars in thousands):
Avista Utilities:
Electric production
Elecric tansmission
Electric distnbufion
Constmction work-in-progress (CWIP) and other
Electic total
Natural gas underground storage
Natural gas distibution
CWIP and other
Natural gas total
Cornrron plant (including CWIP)
Total Avisa Utilities
Energy Marketing and Resource Managernent
Avista Advantage
Other
Total
$ 914,021
30/.,827
724,054
1t9.552
2.062.454
18,543
449,501
45.340
513.384
79.789
2,655,627
30,162
12,847
23.886
s2.722.s22
$ 740,736
295,284
699,757
85.631
1.820.408
18,295
430,273
44.675
493.233
74.751
2,388,392
142,428
10,183
20.6r l
$2161^614_
Equipment tmder capital leases at Avista Utilities totaled $3.9 million and $0.7 million as of December 31,
respectively. The associated accumulated depreciation totaled $0.2 million and $0.1 million as of December 31,
respcctively.
2003 and
2003 and
2002,
2002,
NOTE 9. PENSION PLAIIS AI\ID OTIIERPOSTRETIREMENT BEITETTT PLAIIS
The Conpany has a defined benefit pension plan covering substantially all of its regular full-time enployees. Enployees of Avista
Energy also participate in this plan. Individual benefits under this plan are based upon years ofservice and the enployee's average
conpensation as specified in the plan. The Corrpany's funding policy is to contribute amoults that are not less than the minimum
amounts required to be funded wrder the Enployee Retirement Income Secr.lrity Act nor more than the maximum amounts that are
currently deductible for income tax purposes. The Conpany made $12 million in cash contributioos to the pension plan in each of
2003 and 2002. The Conpany expects to contribute approximately $15 million to the pension plan in 2004.
Pension fund assets are invested prfunarily in rnarkeable debt and equity securities. However, fitnd assets may also be invested in real
estate and other investnents, including hedge funds and venture capial funds. In selecting an assunred long-term rate of return on plan
assets, the Conpany considered past performance and economic forecasts for the tlpes of investncnts held by the plan. Thc fair value
of pension plan assets invested in debt and equity securities was based primarily on outside market prices. The fair value of pension
plan assets invested in real estate was determined based on three basic approaches: (l) curent cost ofreproducing a property less
deterioration and firnctional economic obsolescence (2) capitalization of the property's net eamings power; and (3) value indicated by
recent sales of conparable properties in the market. The fair value of plan assets was determined as of December 31, 2003 and2002.
As of December 31, 2fi)3 and2002, the Conpany's pension plan had assets with a fair value that was less than the present value of the
accumulated beneht obligation rmder the plan In 2003, the pension plau firnding deficit was reduced as corryared to the end of 2002
and as such the Conpany reduced the additional minimum liability for the unfirnded accumulated benefit obligation by $15.5 million
and the intangible asset by $0.6 million (representing the amount of unrecoemized prior service cost) related to the pension plan. This
resulted in an increase to other conprehensive income of $9.7 million, net of taxes of $5.2 million for 2003. b2002, the Conpany
recorded an additional minimum liability for the unftnded accumulated benefit obligation of $33.4 million aud an intangible asset of
$6.4 million (representing the amount of unrecoerrized prior service cost) related to the pension plan. This resulted in a charge to other
conprehensive income of $17.6 million, net of taxes of $9.4 million for 2002.
FERC FORM NO.2 123.13
Name of Respondent
Avisb Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
ut30t200/.
Year of Report
Dec 3'1.2(X)3
NOTES TO FINANCIAL STATEMENTS (Continued)
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/.t30t2004
Year of Report
Dec 31, 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
The Coryany also has a Supplemental Executive Retirernent Plan (SERP) that provides additional pension benefis to executive
officers of the Conryany. 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
conpensation plans. The Conpany recorded an additional minimum liability for the unfunded accumulated benefit obligation of $0.3
millioq $0.7 million and $1.1 million related to the SERP for 2003, 2002 and 2001, respectively. This resulted in a charge to other
conprehensive income of $0.2 million, $0.5 million and $0.7 millioq net of taxes, for 2003, 2002 and 2fi)1, respectively.
The Coryany provides certain health care and life insurance benefits for substantially all of its retired eryloyees. The Corryany
accrues the estirnated cost of postetirerneot benefit obligations druing the years that enployees provide services. The Conpany
elected to amortize the transition obligation of $34.5 million over a period of twenty years, beginning in 1993.
The Corpany uses a December 3l mcasurernent date for its pension and postretirenrent plans. The following table sets forth the
pension and postretirement plan disclosures as of December 3 l, 2003 and 2002 and the corryouents of net periodic benefit costs for
the years ended December 31, 2003, 2002 ail 2001 (dollars in thousands):
Pension Benefits
Post-
Retirement Benefits2003 2002 2003 2002
Chenge in benelit obligation:
Benefit obligation as of beginning of year
Service cost
Interest cost
Plan amendment
Actuarial loss (gain)
Benefis paid
Expenses paid
Benefit obligation as of end of year
Chrnge in plen essets:
Fair value ofplan assets as ofbeginning ofyear
Actual retunr on plan assets
Enployer contributions
Benefits paid
Expenses paid
Fair value ofplaa assets as ofend ofyear
Fundcd status
Umecognized net actuarial loss
Unrecognized prior service cost
Unrecopized nct transition obligation(asset)
Accrued benefit cost
Additional minimtrm liability
Accrued benefit liability
Accurmrlated pension benefit obligation
Accunnrlated postretirernent benefit obligation:
For retirees
For fully eligible erryloyees
For other participants
$238,3E5
7,806
15,705
18,046
( 12,648)
il.5(X)
s2s5J90
$136,12s
33,129
12,000
(r r,78E)
( 1.504)
st57-952
$(97,828)
7t,695
5,712
( 1.585)
(22,006)
(20.081)
$(4A0&7)
$210,049
$210,510
6,734
l5,l l9
(2,530)
22,243
(12,229)
0.4621
s23&385
$153,705
(16,677)
12,000
(l1,441)
(r.462)
$tl6^125
$(r02,260)
79,812
6,366
Q.671)
(18,753)
(3s.303)
$(!t056)
$190,181
$29,062
482
2,477
10,973
(3,741)
168)
$39-185
sl1,301
3,282
1,785
(1,713)
(68)
$t45&Z
$(24,598)
9,455
8.809
(6,334)
Ju6ry
$26,073
$5,427
$7,685
$36,355
304
2,184
(5,82 l)
(660)
(3,091)
(209)
$2l.-062_
$13,969
(1,451)
(1,008)
(20e)
$r-u01
$(17,761)
1,425
9-788
(6,548)
J$6r*
$21,582
$3,297
$4,183
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FERC FORM NO.2 1 123.'.t4
Name of Respondent
Avista CorD.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t2004
Year of Report
Dec 31,2@3
NOTES TO FIMNCIAL STATEMENTS (Continued)
Pensinn Renefits
Post-
Retirement Benefits2003 2Nt2
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Weighted-everrge rsset rllocrtions es of December 31
Equity securities 64%o
Debt securities 25o/o
Real estate 5o/oOther 6%
Target esset allocetions rs of December 31
65%
32%
3o/"
59o/o
^-*
5t%
38%
llo/o
Equity securities
Debt securities
Real estate
Other
Assumptions rs of December 31
Discount rate
Ergected long-term retum on plan assets
Rate of conpensation increase
Medical cost trend pre-age 65 - initial
Medical cost trend pre-age 65 - ultimate
Ultimate medical cost trend year pre-age 65
Medical cost frend post-age 65 - initial
Medical cost trend post-age 65 - ultimate
Ultimate medical cost trend year post-age 65
54-68%
22-28o/o
3-7%
5-l3o/o
6.25%
8.OV/o
5.$ff/o
58-72%
25-3s%
3-5o/"
6.75%
8.00%
5.No/o
6.2s% 6.75%8.00% 8.00%
9.00o/o 9.000/"
5.00o/o 5.00o/o2007 200710.00% 10.00%6.00% 6.00%2007 2007
200r 2(n1
Components of net periodic benefit cost:
Service cost $ 7,806 $ 6,734 $5,716 $ 482 $ 304 $ 460
Interest cost 15,705 l5,l 19 14,293 2,477 2,184 2,567
Expectedreturnonplanassets (10,862) (l2,3ll) (15,254) (842') (1,064) (l,3ll)
Transition (asset/obligation recognition (1,086) (1,086) (1,086) 979 1,256 1,534
Amortization of prior service cost 653 831 989
Net (gain) loss recognition 3.896 1.021 139 405
- -(gNetperiodicbenefitcost $16.112 UQ.]Q& YJgl $3.501 $2^680 $il99
Assurned health care cost trend rates have a significant effect on the arnounts reported for the health care plans. A
one-percentage-point increase in the assunrcd health care cost trend rate for each year would increase the accumulated postretirement
benefit obligation as of December 31, 2003 by $3.0 million and the service and interest cost by $0.2 million. A one-percentage-point
decrease in the assurned health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
of December 31, 2003 by $2.6 million and the service and interest cost by $0.2 million.
In December 2fi)3, the Medicare Prescription Drug, Improvement and Modenrization Act of 2003 (2003 Medicare Act) was signed
into law. The 2003 Medicare Act orpanded Medicare to include, for the first time, coverage for prescription drugs. The Conpany
expects that the 2003 Medicare Act rnay eventually reduce the costs of postretirenpnt rnedical benefis. Because of various
rmcertainties related to the Conpany's response to the 2fi)3 Medicare Act and the appropriate accounting for this event the Corpany
bas elecrcd to defer financial recopition sf this legislation until the FASB issues final accounting guidance.
FERC FORM NO.2 12 123.15
Name of Respondent
Avista Com.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t200/.
Year of Report
Dec 31. 2003
NOTES TO FIII.IANCIAL STATEMENTS (Continued)
The Corryany has a salary deferral 401(k) plan (Enployee Investnent Plan) that is a defined contribution plan and covers
substantially all erryloyees. Enployees can make confibutions to their respective accounts in the Enployee Investrnent Plan on a
pre-tax basis rp to the maxirrurn amormt permitted by law. The Coryany rnatches a portion of the salary deferred by each participant
according to the schedule in the Enployee Investsnent Plan. Erploycr mlfshing contributions of $3.6 million, $3.4 million and $3.5
million were expensed in 2003, 2002 arrd 2001, respectively.
NOTE TO. ACCOI'NTING TOR INCOME TAXES
As of December 31, 2003 and 2002, the Corryany had net regulatory assets of $131.8 million and $139.1 million, respectively, related
to the probable recovery of certain deferred tax liabilities from custorrcrs ttuough futwe rates. Deferred incorne taxes rcflect the net
tax effects of terryorary differences between Ore carrying auptmts of assets and liabilities for frnancial reporting purposes and the
arnounts used for income tax purposes and tax credit carryforwards.
The total net deferred income tax liability consisted of the following as of December 3l (dollars in thousands):
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Deferred income ter essets:
Allowance for doubtful accounts
Reserves not currently deductible
Contributions in aid of constnrction
Defened corrpensation
Centralia sale regulatory liability
Unfunded accumulated benefit obligation
Other
Total deferred inconr tax assets
Deferred inconre tex liebilities:
Differences between book and tax basis of utility plant
Power and natural gas deferrals
Unrealized energy cornmodity gains
Power exchange contract
Demand side management programs
Loss on reacquired debt
Other
Total deferred incorne tax liabilities
Net deferred inconre tax liability
$ 16,201
23,669
8,677
4,9M
2,336
4,U5
5.705
66.137
40/.,017
58,912
27,290
4t,725
4,459
8,405
2.673
547.481
$4EL!14
$ 16,343
15,750
9,709
4,112
2,954
9,736
7.172
65.776
3il,827
58,081
34,231
44,533
5,0&
8,781
4.406
5t9.923
MSAJ4II
Net current dcferred irrcome taxes were an $11.5 million asset and a $1.7 million liability as of Decerrbcr 31,2003 arld2002,
respcctively. Net non-current deferred ax liabilities were $492.8 million and $452.5 million as of December 31,2003 ard2002,
respectively.
The realization of deferred tax assets is dependent upon the ability to generate taxable income in future periods. The Coupany
evaluated available evidence supporting the realization of its deferred tax assets and determined it is more likely tban not that deferred
tax assets will be realized.
FERC FORM NO.2 1 123.16
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/.t301200/.
Year of Report
Dec 31. 2003
NOTES TO FII\.|ANCIAL STATEMENTS (Continued)
A reconciliation offederal inconp taxes derived from statutory federal tax rates (35 percent in 2003, 2002 ard2001) applied to pre-tax
incorne from continuing operations as set forth in the acconpanying Consolidated Statements of Income is as follows for the years
ended December 31 (dollars in thousands):
2002 2001
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Federal incorne taxes at statutory rates
Increase (decrease) in 12x lssulting from:
Accelerated tax depreciation
State income tax expense
Prior year audit adjustments
Other-net
Total income tax expense
Income Tex Erpense Consisted of the Following:
Federal taxes currently provided
Deferred federal inconre taxes
Toal incomc tax er(pcme
Income Ter Expense by Business Segment:
Avista Utilities
Energy Marketing and Resource Managernent
AvisA Advantage
Other
Toal income tax expense
NOTE 11. EI\IERGY PURCHASE CONTRACTS
$30,094 $26,958
4,U6
1,283
457
(540)
$35310
$ 6,945
28.395
$35;!40
$26,884
11,457
(718)
(2.283\
$353CI
5,166
2,348
377
$14^E49
$38,089
5,849
(8,870)
(3e5)
5.9t2
$40rE5
$75,136 $(38,556)40.287) 79.r4r84A49 S4o^5EL
$32,137 $20,177l2,3ll 32,499(2,289) (5,778)(7-310) (6.303)
Lt4.E49 $40185
Avista Utilities has contracts related to the purchase of fuel for thermal generation, natural gas and hydroelectric power. The
termination dates of the contacts range from one month to the year 2044. Avista Utilities also has various agreements for the
purchase, salg s1 er(shange ofelectric energy with other utilities, cogenerators, small power producers and government agencies. Total
experses for power purchased natural gas purchased, fuel for generation and other fuel costs, which are included in resource costs in
the Consoli&ted Staternents of Income, were $464.1 millioo, $382.4 million and $1,054.2 million in 2003, 2002 and 2001,
respectively.
The following able details future contactual commitmcnts for power resources (including transmission contracts) and natual gas
resources (including transportation contacb) (dollars in thousands):
2OO7 2ff)R Thereafte.r Total
Power resources $156,729
Natural gas resources 183.207Total $339.936
$ 90,379 $ 90,124 $ 92,20376.593 49.375 49.872
il65,972 $-LI9{99 $t420zt
$ 91,788 M39,079 $ 960,30243-42t 355.856 758.324
$115209 $z,t^gt5 $lJlE^626
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 adjustrnents to retail
rates as part ofthe power and natural gas cost deferral and recovery rnechanisms.
In addition, Avista Utilities has operational agreernents, settlements and other contractual obligations with respect to its generation,
Eansmission and distribution facilities. The expenses associated with these agreements are reflected as operations and maintenance
expenses in the Consolidated Statements of Inconre. The following table details future conEactual commitnents with respect to these
agreements (dollan in thousands):
2OO7 2OO8 Thereafter Total
Contractual obligations st), L17 st2.4l7 sl2 417 st24l7 sl) 417 st7? R?o s??5 955
FERC FORM NO.2 I 123.17
Name of Respondent
Avista Corp.
This Report is:
(1)XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30Do/J/
Year of Report
Oec 31, 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
Avista Utilities has fxed contracts with certain Public Utility Districts (PUD) to purchase portions of the ouput of certain generating
facilities. Although Avista Utilities has no invesfirrcnt in the PLID generating facilities, the fixed contracts obligate Avista Utilities to
pay certain minimum amounts (based in part on the debt service requirements of the PUD) whether or not the facility is operating. The
cost of power obtained rmder the cortacts, including payrnents made when a facility is not operating, is included in resouce costs in
the Consolidated Statemcnts of lncome. Expenses under these PUD contracts were $8.5 million, $7.8 million and $7.4 million in
2003,2C/J.2 and 2001, respectively.
Information as of December 31, 2003, pertaining to these PUD contacts is summarized in the following table (dollars in thousands):
Conroant's Current Share of
Debt Expira-
Kilowatt Annual Service Bonds tionOutnut Canahilitv Costs f 1) Costs (l \ Outstandinp Date
Chelan County PUD:
Rocky Reach Project 2.9o/o 37,000 $2,222 $1,405 $ 3,441 20ll
Douglas County PUD:
Wells Project 3.5 30,000 1,168 550 4,966 2018
Grant County PUD:
Priest Rapids Project 6.1 55,000 1,992 798 11,265 2M0
WanapumProject 8.2 75.000 3.139 1.587 15.290 2M0
Totals f97^0@ $&52f $4310 Slt 96L
(1) The annual costs will change in proportion to the percentage of output allocated to Avista Utilities in a particular year. Amounts
represent the operating costs for the year 2003. Debt service costs are included in annual costs.
The estimated aggregate amouts of required minimm pa)rynents (Avisa Utilities' share of existing debt service costs) under these
PUD contracts are as follows (dollars in thousands):
20O4 2005 2006 2007 2008 Thereafter Total
\dinimrwq p1166atg S1 1{l S1 6r(5 S? RA{ (? ?lO S? 17? 9D 759, SiS l0l
ln additioD, Avista Utilities will be required to pay ib proportionate share of the variable operating expeilres of these projects.
FERC FORM NO.2 123.18
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Name of Respondent
Avista Com.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,/3on004
Year of Report
Dec 31, 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
NOTE 12.LONGIERMDEBT
The following details the interest rate and maturity dates of long-term debt outstanding as of December 3l (dollars in thousands):
MatwityYear Descriotion
Interest
Rate
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2003 SecwedMediurn-TermNotes
2005 SecuredMedium'TemrNotes
2005 WP Funding LP Note
2006 SecuredMedium-TermNotes
2007 First Mortgage Bonds
2008 Secured Mediunr'Term Notes
2010 SecruedMediu*TermNotes
2012 Secrued Mediurn-Tenn Notes
2013 First Mortgage Bonds
2018 SectuedMediurrrTermNotcs
2023 SecuredMediurn-TermNorcs
Total secured long-temr debt
2003 UnsecurcdMediurrr-TermNotcs
2004. UnsecuredMedirurTermNotes
2006 UnsecuredMediurrrTermNotes
2C/J7 UnsecurcdMediunrTermNotes
2008 Senior Notes
2008 Unsectued MediurrrTerm Notes
2010 Unsecued MediurpTennNotes
2012 UnsecuredMediurrrTermNotes
2022 UnsecuredMediunrTermNotes
2023 UnsecuredMediurrrTermNotes
2023 Pollution Conrol Bonds
2028 UnsecuredMedium-TermNotes
2032 Pollution Control Bonds
2034 Pollution Control Bonds
Total 'nsecured long-term debt
Capital lease obligations
Unamortized debt discount
Total
Current portion of long-temr debt
Total long-tenn debt
6.25%
6.390/o-6.680/o
8.36%
7.89o/o-7.90o/o
7.75o/o
6.890/o-6.95o/o
6.67%-6.90%
7.37o/o
6.13%
7.260/o-7.45Yo
7.18o/o-7.54Vo
6.75/o-9.13o/o
't.420/o
8.t4%
5.99o/o-7.94o/o
9.75o/"
6.060/o
8.02o/o
8.05o/o
8.15o/o-8.23o/o
7.99%
6.00%
6.37%-6.88%
5.No/o
5.13o/o
$-
29,500
54,572 (t)
30,000
150,000
20,000
10,000
7,000
45,fi)o
27,500
24.500
398.072
28,500
8,000
25,850
317,683
25,000
25,000
5,000
5,000
4,100
25,000
66,700
17.000
552.833
5.812
(l.ee4)
954,723
(.29.711)
$92r0u
$ 15,000
29,500
30,000
150,000
20,000
10,000
7,000
27,500
24.500
313.500
56,250
30,000
8,000
26,000
341,529
25,000
25,000
12,000
10,000
5,000
4,100
35,000
66,700
17.000
661.579
1.613
(2.161)
974,531
(71.8e6)
$902^635
As discussed in Note 2, represents the long-term debt of WP Funding LP, an entity that was consolidated in 2fi)3 under
FIN 46.
The following able deails future long-term debt maturities, including long-term debt to affrliated tnrsts (see Note 13) (dollars in
thousands):
Year 2004 2005 2006 2007 2008 Thereafter Total
Debt maturities $28.500 384.072 33
ln addition to the required maturities documented in the table above, the Conpany has sinking fimd requirements of $3.4 million in
each of 2(X)4 and 2005, $3.1 million in 2006, $2.8 million i\2007 and $1.3 million in 2008. Under its Mortgage and Deed of Trust,
the Corryany's sinking firnd requirerrents may be rnet by certification of property additions at the rate of 143 percent of requirenrents.
All of the Corpany's utility plant is subject to the lien of the Mortgage and Deed of Tnrst securing outstanding First Mortgage Bonds.
FERC FORM NO.2 1 123.'t9
(l)
Name of Respondent
Avistra Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t2004
Year of Report
Dec 31, 2003
NOTES TO FI}.IANCIAL STATEMENTS (Continued)
ln September 2003, the Conpany issued $45.0 million of 6.125 percent First Mortgage Bonds due in 2013. The proceeds were used to
repay a portiou of the borrowings under the $245.0 million line of credit that were used on an irterim basis to fund $46.0 million of
maturing 9. 125 percent Unsecured Mediunr'Terrr Notes.
In September 1999, $83.7 million of Pollution Contol 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 refimd
the $66.7 million of 7.13 percent First Mortgage Bonds due 2013 and the $17.0 million of 7.40 percent First Mortgage Bonds due
2016. The Series 1999A and Series 19998 Bonds are backed by an insurance policy issued by AMBAC Assurance Corporation. In
January 2fi)2, the interest rate on thc bonds was fxed for a period ofseven years at a rate of5.00 percent for Series 1999A and 5.13
percent for Series 19998.
Thc following tablc details the Corpany's debt repurchases prior to scheduled maturiry during 2003 (dollan in thousands):
Repurchase
f)ate l)escrintion
Interest Maturity Principal
Rate Year Amouni
January 2003 Unsecured Senior Notes
Febnrary 2003 Unsecured Senior Notes
March2003 UnsecuredMedium-TermNotesApril2003 UnsecuredMedium-TermNotes
May2003 UnsecuredMedium-TermNotes
June2003 UnsecuredMedium-TermNotesJuly2003 UnsccuredMedium'TermNotes
July 2003 Unsecured Senior Notes
August 2003 Unsecr.ued Senior Notes
Total debt repurchases
9.75% 20089.75% 200E8.23o/o 20226.88% 20285.99o/o 2007
7.42o/o
8.05o/o9.75% 20089.75% 2008
$10,fi)0
505
5,000
10,000
1502004 1,500
20t2 12,000
3,000
r0.330
$52JrE5
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In accordance with regulatory accounting practices, the total net premium on the repurchase of debt of $1.7 million will be amortized
over the average remaining maturity of outstanding debt.
As of December 31, 2003, the Conpany had remaining authorization to issue up to $176.0 million of Ursecured Medium-TermNotes.
The Corryaay also has $105.0 million of either secured or unsecrued dsbt lsrnaining rurder a registation staterDent filed on Form S-3
with the Securities and Exchange Cornmission in June 2003.
The Mortgage and Deed of Trust securing the Conpany's First Mortgage Bonds contains limitations on the amount of First Mortgage
Bonds, which rnay be issued based oD, arpng other things, a 70 percent debt-to-collateral ratio, and/or retired First Mortgage Bonds,
and a 2.00 to I net earnings to First Mortgage Bond interest ratio. Under various finaucing agreements, the Corpany is also restricted
as to the amount of additional First Mortgage Bonds that it can issue . As of December 3 l, 2003, the Conpany could issue $93.1
million of additional First Mortgage Bonds under the most resEictive of these financing agreements.
NOTE 13. LONG.TERM DEBT TO.{TFILIATED TRUSTS
la 1997, the Conpany issued 7.875 percent Junior Subordinated Deferrable Interest Debeutures, Series A, with a principal amount of
$61.9 million to Avista Capital I, a business trust. Avista Capital I issued $60.0 million of Preferred Trust Securities with an annual
distribution rate of 7.875 percent. Concurrent with the issuance of the Preferred Tnrst Securities, Avista Capital I issued $1.9 million
of Connnon Trust Secruities to the Corrpany. These debt securities rnay be redeemed at the optiou of Avista Capital I on or after
January 15,2002 and mahue January 15, 2037; however, this is limited by an agreement under the Conpany's 9.75 percent Senior
Notes tbat mature in 2008.
In 1997, the Conpany issued Floating Rate Junior Subordinated Deferrable Interest Debentures, Series B, with a principal amount of
$51.5 milliou to Avista Capital II, a business trust. Avista Capital II issued $50.0 million of Preferred Trust Securities with a floating
distribution rate ofLIBOR plus 0.875 percent, calculated and reset quartcrly. The annual distribution rate paid during 2003 ranged
from 2.02 percent to 2.30 pcrcent. As of December 3 l, 2003, the annual distribution rate was 2.02 percent. Concurrent with the
issuance of the Preferred Trust Securities, Avista Capital II issued $ 1.5 million of Comrnon Trust Securities to the Conpany. These
FERC FORM NO.2 123.20
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Name of Respondent
Avista Corp.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
o4t30t20u
Year of Report
Dec 31, 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
debt securities ruy be redeemed at the option of Avista Capital II on or after June 1,2007 and mature Jrme 1, 2037; however, this is
limited by an agreenrnt under the Conpany's 9.75 percent Senior Notes that mature in 2008. In December 2000, the Conpany
purchased $10.0 million of these Preferred Trust Securities.
The Conpany has guaranteed the payment of disributions on, and redenption price and liquidation anrormt with respect to, the
Preferred Tnrst Securities to the extent that Avista Capital I and Avista Capital II have frmds available for such payments from the
respective debt securities. Upon maturity or prior redenption of such debt securities, the Trust Securities will be mandatorily
redeerpd. As discussed in Note 2, FIN 46 results in the Conpany no longer including Avista Capital I and Avista Capital II in its
consolidated financial statements as of December 31, 2003.
NOTE T4. SHORT-IERM BORROWINGS
On May 13, 2003, the Conpany amended its conunitted line of credit with various banks to increase the amount to $245.0 million
from $225.0 million and extend the expiration date to May I l, 2004. The Coupany can request the issuance of up to $75.0 million in
letters of credit rnder the amended cornrnitted line of credit. As of December 31, 2003 and 2002, the Conpany had $80.0 million and
$30.0 million, respectively of borrowings outstanding undsl this corrnitted line of credit. As of December 31, 2fi)3 and 2002, there
were $10.7 million and $14.3 million in letters of credit outstauding, respectively. The committed line of credit is secured by $245.0
million of non-transferable fust rprtgage bonds of the Conpany issued to the agent bank. Such fust mortgage bonds would only
becorne due and payable in the event, aud then only to the extent, that the Corpany defaults on its obligations under the commined
line of credit.
The committed line of credit agreerrrcnt contains custornary covenants and default provisions, including covenants not to permit the
ratio of 'tonsolidated total debt" (not including preferred stock, long-term debt to alliliated trusts or WP Funding LP debt) to
"consolidated total capitalization" of Avista Corp. to be greater than 65 percent at the end of any fiscal quarter. As of December 31,
2003, the Conpany was in conpliance with this covenant with a ratio of 52.6 percent. The committed line of credit also has a
covenant requiring the ratio of "earnings before interest, taxes, depreciation and amortization" to "interest expense" of Avista Utilities
for the twelve-rronth period ending December 31,2003 to be greater than 1.6 to l. As of December 31,2003, the Conpany was in
conpliance with this covenant with a ratio of 2.3 to l. The covenant calculations exclude the effect of changes in accounting
standards.
The Corryany had a connnercial paper program that also provided for fixed-term loans drning 2001 . None of these arrangenrents were
in place as of Decernber 31, 2003 ard2002.
Balances and interest rates of bank borrowings under these arrangemcnts were as follows as of and for the years ended Decernber 3l
(dollars in thousands):2002 2001
Balance outstending et end ofperiod:
Conmrrcialpaper
Revolving credit agrecrncnt
Marimum belence outstending during the period:
Conmercial paper
Revolving credit agreernent
Averege belance outstending during the period:
Comrrrcial paper
Revolving credit agreement
Averege interest rete during the period:
Comrnercial paper
Revolving credit agreenrcnt
Average interest rrte rt end ofperiod:
Corurrercial paper
Revolving credit agreenrcnt
80,000 30,000
85,000
26,3M
-o/o
2.99
-o/o
3.70
90,000
47,027
-o/o
3.59
-o/o
3.39
55,000
$ ll,l60
223,M
$ 558
108,996
7.80%
5.95
-o/o
5.42
FERC FORM NO.2 1 123.2'.l,
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,iSONoily.
Year of Report
Dec 31,2003
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 15. INTEREST RATE SWAP AGREEMENTS
On May 7, 2003, Avista Corp. terminated an interest rate swap agreemeut that was entered into on July 17, 2002. This interest rate
swap agreen ent effectively changed the interest rate on $25 million of Unsecured Senior Notes from a fixed rate of 9.75 percent to a
variable rate based on LIBOR. With the termination of the interest rate swap agreerncnt, Avista Corp. received $1.5 millioq u&ich
was recorded as a deferred credit (as part of long-term debt) and will be amortized over the remaining term of the original agreement
(tbroughJune 1,2008).
NOTE 16.LEASES
The Corryany has rnultiple lease arrangements involving various assets, with minimum terms ranging from one to twenty-five years.
The Corryany's most significant leased asset is the corporate offrce building. Certain lease arraugements require the Conpany, upon
the occurrence of specified events, to pruchase the leased assets. The Conpany's management believes the likelihood of the
occturence ofthe specified events under which the Conpany could be required to purchase the leased assets is rerrote. Rental expense
under operating leases for 2(X)3,2002 and 2001 was $14.2 million, $21.7 million and $19.8 million, respectively.
Future minimunr lease payments required under operatrng leases having initial or lgmaining noncancelable lease terms in excess of one
year as of December 31, 2003 were as follows (dollan in thousands):
Year endins Decertbcr 3l: 2004 2005 2006 2fi)7 2fi)8 Thereafter Total
Minimum payments required s7.479 33.405 S2.8
The payments ruder the Avista Corp. capital leases are $0.8 million in each of 20O4, 2005 and 2006, $0.7 million ta 20o7 and $0.6
million h 2008.
NOTE 17. GUARANTEES
The Corryany bas guarantccd the payment of distributions on, and rederrption price and liquidation arnount with respect to, the
Preferred Tnrst Securities issued by its affiliates, Avista Capital I and Avista Capital II, to the extent that these entities have firnds
available for such payments from the respective debt securities.
Avista Power, through its equity investrrrcnt in RP LLC, is a 49 percent owner of the Lancaster Project, which commenced conunercial
operation in September 2fi)1. Comnrncing with commercial operations, all of the output from the Lancaster Project is contracted to
Avista Energy through 2026 years under a Power Purchase Agreenrnt. Avista Corp. has guaranteed the Power Purchase Agreement
with respect to the perforrnance of Avista Energy.
NOTE 18. PREFERRED STOCK.CI.MIJLATIVE
In March 2fi)3, the Coupany repurcbased 17,500 shares of preferred stock for $1.6 millioq satisffing its redcnption requirement for
2003. In September 2002, the Conpany made a mandatory redenption of 17,500 shares of preferred stock for $1.75 million. On
September 15, 2(XN, 2005 and 2006, the Conpany rnrst redeem 17,500 shares at $100 per share plus accumulated dividends thrrough a
rnandatory sinking fund. As suc\ redenption requirenrnts are $1.75 million in each of the years 2004 through 2006. The remaining
shares rnrst be redeerrcd on September 15,2007. The Conpany has the right to redeem an additional 17,500 shares on each
September 15 redenption date; however, this right is limited by an agreement under the Corryany's 9.75 percent Senior Notes that
mature in 2008. Upon involuntary liquidation, all prefened stock will be entitled to $100 per share plus accrued dividends.
As discussed in Note 2, the Corpany adopted SFAS No. 150 effective July l, 2003. The adoption of this statement requires the
Conpany to classiff preferred stock subject to mandatory redenption as liabilities and preferred stock dividends as interest ertpense.
The restatement of prior periods was not permitted.
FERC FORM NO.2 1 Page 123.22
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Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
Mt30t2004
Year of Report
Dec 31,2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
NOTE 19. FAIR VALT'E OF FINAIYCIAL INSTRI]MENTS
The carrying values of cash and cash equivalents, resticted cash, accouuts and notes receivable, accounts payable and short-term
borrowings are reasonable estirnates oftheir fair values. Energy conrnodity assets and liabilities as well as securities held for hading
are reported at estimated fair value on the Consolidated Balance Sheet.
The fair value of the Conpany's long-terrr debt (including current-portioo, but excluding capital leases) as of December 31, 2003 and
2002 was estimated to be $1,067.3 millioD, or ll2 percent of the carrying value of $950.9 million, and $1,001.2 million, or 103
percent of the carrying value of $975.1 million, respectively. The fair value of the Conpany's mandatorily redeemable preferred stock
as of December 31, 2003 and2002 was estimated to be $29.9 millioq or 95 percent of the carrying value of $31.5 million, and $29.3
million, or 88 percent of the carrying value of $33.3 million, respectively. The fair value of the Conpany's long-term debt to affiliated
trusts as of December 31, 2003 was estimated to be $99.5 million, or 90 percent of the carrying value of $l10.0 million. The carrying
value asofDecember3l,2003doesnotinclude$3.4millionofdebtthatisconsideredcorlmonequitybytheaffiliatedtnrsts. Thefair
value of the Corrpany's prefered trust securities as of Deceriber3l,2002 was estimated to be $89.6 million, or 90 percent of the
carrying value of $ 100.0 million. These estimates were primarily based on available market information.
NOTE 2O.COMMON STOCK
In April 1990, the Conpany sold 1,000,000 shares of its cormpn stock to the Trustee of the Itrvestnent and Enployee Stock
Ownership Plan for Enployees of the Conpany (Plan) for the benefit of the participants and beneficiaries of the Plan. In payment for
the shares of common stock, the Trustee issued a promissory note payable to the Conpany in the arnount of $14.1 million. Dividends
paid on the stock held by the Trustee, plus Conpany contributions to the Plao, if any, are used by the Trustee to make interest and
principal pa),nrents on the promissory note. The balauce of the promissory note receivable from the Trustee ($2.4 million as of
Decembcr 31,2003) is reflected as a reduction to comnton equity. The shares of common stock are allocated to the accounts of
participants in the Plan as the note is repaid. During 2003, the cost recorded for the Plan was $6.9 million. lnterest on the note
payable to the Conpany, cash and stock contributions to the Plan and dividends on the shares held by the Trustee was $0.3 million,
$1.7 million and $0.1 million, respectively during 2003.
In November 1999, the Conpany 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 ofcommon
stock. Each Right, initially evidenced by and taded with the shares of common stoclc, entitles the registered holder to purchase one
one-hun&edth of a share of preferred stock of the Conpany, without par value, at a purchase price of $70, subject to certaio
adjusfinents, regulatory approval and other specified conditions. The Rights will be exercisable only ifa person or group acguires l0
percent or npre of the outstanding shares of common stock or conrmences a tender or exchange offer, the consunmation of which
would result in the beueficial 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 nunber of shares of common stock or
preferred stock of the Conpany (or, in the case of a rnerger of the Conpany into another penion or group, corruDon stock of the
acquiring person or group) that has a market value at that time equal to turice the purchase price. In no event will the Rights be
exercisable by a person that has acquired l0 percent or more of the Conpany's common stock. The Rights may be redeemed, at a
redenption price of $0.01 per Right, by the Board of Directors of the Conpany at any time until any person or group has acquired l0
percent or rmre of the common stock The Righs expire on March 31, 2009. This plan replaced a similar shareholder rights plan that
expired in February 2000.
The Conpany has a Dividend Reinvestment and Stock Purchase Plan under which the Conpany's shareholders rnay automatically
reinvest their dividends and make optional cash payments for the purchase of the Conpan/s somrrnn stock at curent market value.
From March 2000 through May 2fi)3, the Conpany issued shares of its common stock to the Enryloyee Investnent Plan rather than
having the Plan purchase shares of cornmon stock on the open market. In the fourth quarter of 2000, the Conpany also began issuing
new shares of common stock for the Dividend Reinvesfrnent and Stock Purchase Plan. During 2003,2002 and 2001, a total of
299,801,408,800 atd332,861 shares of cormron stock were issued, respectively, to these plans.
FERC FORM NO.2 123.23
Name of Respondent
Avista Cop.
This Report is:
(1)XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t20u
Year of Report
Dec 31.2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
NOTE 2T. EAR}IINGS PERCOMMON SHARE
The following table presents the couputation of basic and diluted eamings per comrnon share for the years ended December 3l (in
thousands, except per share amounts):
2001
Numerator:
Income from continuing operatioos
Loss from discontinued operations
Net income before cuunrlative eflect of accounting change
Cumulative effect of accounting change
Net income
Deduct Preferred stock dividend requirements
Income available for common stock
Denominetor:
Weighted-average number of cornnron shares
outstanding-basic
Effect of dilutive securities:
Resricted stock
Contingent stock
Stock options
Weighted-average nunber of common shares
outstanding-diluted
Earnings per common share, brsic:
Earnings per conrmon share from continuing operations
[,oss per common share from discontinued operations
Earnings per cornrnon share before cunnrlative effect
ofaccounting shange
[,oss per courmon share from cunnrlative effect
ofaccounting change
Total eamings per cornmon share, basic
Earnings per conrmon shere, diluted:
Earnings per co[rmon share from continuing operations
Loss per cormrcn share from discontinued operations
Eanrings per conrnrcn share before currulative effect
ofaccounting cbange
Loss per cornnon share from currulative effect
ofaccounting change
Toal earnings per cornrnon share, diluted
NOTE 22. STOCKCOMPENSATION PLANS
Avista Corp.
48,232 47,E23
-25
244t54 49 13
$50,643
u.9491
45,694
(l.le0)
44,504
t.125
$4ilJ79
48^630
$ 1.03
(0.10)
(0.03)
$0-90
$1.02
(0.1q)
$42,174
(6.719)
35,455
(4.r48)
31,307
2.402
$28^905
41l.14
$0.83
(0.14)
(0.09)
$0-60
$0.83
(0.14)
$68,241
(56.085)
12,156
12,156
2.432
$3J2A
47,417
47435
$ 1.39
fl.l8)
0.21
-i$02t
$1.38(l.r8)
0.20
0.93 0.69
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0.92 0.69
(0.03) (0.09) j$0r9 $aJa $020
In 1998, the Coryany adopted and shareholders approved an incentive coryensation plarU the Long-Term Incentive Plan (1998
Plan). Under the 1998 Plan, certain key erryloyees, directors and offrcers of the Conpany and its subsidiaries rmy be granted stock
options, stock appreciation rights, stock awards (including rcstricted stock) and other stock-based awards and dividend equivalent
rights. The Conpany has available a maxinum of 2.5 million shares of its com'non stock for grant under the 1998 Plan. Beginning in
2000, non-errployee directors began receiving options under this plan.
In 2000, the Conpany adopted a Non-Officer Enployee Long-Term Incentive Plan (2000 Plan), which was not required to be
approved by shareholders. The provisions of the 2000 Plan are essentially the same as those under the 1998 Plan, except for the
exclusion of directors and executive officers of the Conpany. The Corrpany has available a maximum of 2.5 million shares of its
conrnton stock for grant under the 2000 Plan.
FERC FORM NO.2 12 123.24
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
0/.t3012004
Year of Report
Dec 31. 2003
NOTES TO FINANCIAL STATEMENTS (Continued)
The Board of Directors has determined ttnt it is no longer in the Corpany's best interest to issue stock options under the 1998 Plan
and the 2000 Plan. Other forms of conpensation are in place including the issuance of performance sbares to certain oflicers and other
key employees under the 1998 Plan and the 2000 Plan.
The Corryany accounts for stock based conpensation using APB No. 25, "Accormting for Stock Issued to Enployees," which requires
the recognition ofcorrpensation expense on the excess, ifany, ofthe market price ofthe stock at the date ofgrant over the exercise
price ofthe option. As the exercise price for options granted under the 1998 Plan and the 2000 Plan was equal to the market price at
the date of grant, there was no conpensation expense rccorded by the Conpany. SFAS No. 123, "Accoruting for Stock-Based
Conpensation " requires the disclosure of pro forma net income and earnings per comnnn share had the Conpany adopted the fair
value rnethod of accounting for stock options. Under this statenrcnq the fair value of stock-based awards is calculated with option
pricing models. These models require the use of subjective assunptions, including stock price volatility, dividend yield, risk-free
interest rate and expected tirne to exercise. The fair value of options is estimated on the date of grant using the Black-Scholes
option-pricing model. See Note I for disclosure of pro fornra uet income and earnings per common share.
In 2003, the Coryany granted 162,6N performance shares to certain offrcers and other key enployees under the 1998 Plan and the
2000 Plan The performance shares will bc payable at the Conpany's option in either cash or comrnon stock tbree years from the date
of gnnt. The arnount of cash paid or conrmon stock issued will range from 0 to 150 percent of the performance shares granted
depending on the change in the value of the Conpany's common stock relative to an external benchmark.
Shares ofcommon stock issued from the exercise ofstock options under the 1998 Plan and the 2000 Plan are acquired by the Conpany
on the open market. As of December 31, 2fi)3, there were 2.2 million shares available for future stock grants under the 1998 Plan and
the 2000 Plan.
The following sunrnarizes stock options activity under the 1998 Plan and the 2000 Plan for the years ended December 3l:
)oo) 7001
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Number ofshares 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 ofyear
Weighted average exercise price:
Optious granted
Options exercised
Options canceled
Options outstanding at end ofyear
Options exercisable at end ofyear
Weighted average fair value of options granted during the year
Principal asnrnptions used in applyrng the Black-Scholes model:
Risk-free interest rate
Expected life, in years
Expected volatility
Expected dividend yield
2,684,350
24,0N
(37,439)
(18e.02s)
L4Et-886
j.6u^4tt
$12.41
$11.43
$17.78
$15.57
$17.18
$ 4.30
3.17%
7
37.1O%
3.87o/o
2,4y',0,475
569,800
(.325.9251
2^684350
1,J92J1t
$10.51
$19.88
$1s.69
$18.28
$ 3.43
3.25o/o4.960/o
7
47.t3%
4.610/o
1,843,900
781,900
(2,750)
(l82.575)
2^4AoA15_
_EE3*07L
$12.43
$17.96
srg.22
$17.49
$19.28
$ s.54
4.05%o-5.13o/o
7
60.80%
3.93%
FERC FORM NO.2 .1 123.25
Name of Respondent
Avista Com.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t20ry
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
lnformation with respect to options outstanding and options exercisable as of December 31, 2003 was as follows:
Ootions Outstandins Ootions Exercisable
Range of Nurnber
Erercise Prices ofShares
Weighted WeightedAverage AverageExercise Remaining
Price I.ife (in vears\
Nunrber
nfShates
Weighted
Average
Exercise
Price
$8.77-$l1.68
$l1.69-$14.61
$14.62-$17.53
$17.54-$20.45
$20.46-$23.38
$26.30-$28.47
Total
523,161
652,525
540,400
289,800
449,800
26.200
L48I-EE6
$10.25 8.811.82 7.917.14 6.118.73 5.122.56 6.727.39 6.2$15.57 7.2
131,605
3t2,825
504,900
288,750
353,975
23.400
l-61!155
$10.25
I1.80
17.20
18.72
22.56
27.26
$17.18
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Non-Employee Dircaor Stoch Plan
In 1996, the Conpany adopted and shareholders approved the Non-Enployee Director Stock Plan (1996 Director Plan). Under the
1996 Director Plan, directors who are not eryloyees of the Conpany receive two-thirds of their annual retainer in Avista Corp.
cornnon stock. The Conpany acquires the common stock on the open market. The Conpany has available a maximum of 150,000
shares of its connnon stock under the 1996 Director Plan and there were 65,553 shares available for future conpensation to
noo-enployee directors as of December 31, 2003.
NOTE 23. COMMITMENTS AIYD CONTINGENCIES
The Conpany believes, based oo the information presently known, that the ultimate liability for the matters discussed in this note,
individually or in the aggregate, taking into account established accruals for estimated liabilities, will not be material to the
consolidated financial condition ofthe Corpany, but could be material to results ofoperations or cash flows for a particular quarter or
annual period. No assurance can be given, however, as to the ultimate outcorre with respect to any particular issue.
Federel Energy Reguletory Commission Inquiry
In Febnrary 2002, the Federal Energy Regulatory Cormnission (FERC) issued an order commencing a fact-finding investigation of
potential rnanipulation of electric and natural gas prices in the Califomia energy nuukets by nnrltiple conpanies. On May 8, 2(X)2, the
FERC requested data and inforrnation with respect to certain trading strategies in which the conpanies rnay have engaged.
Specifically, the requests inquired as to whether or not the Conpany engaged in certain trading strategies that were the same or similar
to those used by Enron Corporation (Enron) and its affiliates. These requests were made to all sellers of wholesale electricity and/or
ancillary services in power rnarkets in the westem United States during 2000 and 2(X)1, including Avista Corp. and Avista Energy. On
May 22,2002, Avista Corp. and Avista Energy filed their responses to this request indicating that both corryanies had engaged in
sound business practices in accordance with established market rules, and that no information was evident from business records or
enployee interviews that would indicate that Avista Corp. or Avista Energy, or its enployees, were knowingly engaged in these
trading stategies, or any variant ofthe stategies.
On Jnne 4,2002, the FERC issued an additional order to Avista Corp. and tbree other conpanies requiring these conpanies to show
."*" *1 \in ten dap as to why their authority to charge rnarket-based rates should not be revoked. In this order, the FERC alleged
that Avista Corp. failed to respond fully and accurately to the data request made on May 8, 2002. On June 14, 2002, Avista Corp.
provided additional inforrnation in response to the June 4,2W2 FERC order to esablish that its initial response was appropriate and
adequate.
On August 13,2002, the FERC issued an order to initiate an investigation into possible misconduct by Avista Corp. and Avista Energy
and two affiliates of Enron: Enron Power Marketing, Inc. (EPMI) and Portland General Electric Corporation (PGE). The purpose of
the investigation was to determine whether Avista Corp. and Avista Energy engaged in or facilitated certain Enron trading stategies,
whether Avista Corp.'s or Avista Energy's role in tansactions with EPMI and PGE resulted in the circumventiou of a code of conduct
FERC FORM NO.2 123.26
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Name of Respondent
Avish CoIp.
Ihis Report is:
(1)XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04t30t20u
Year of Report
Dec 31. 2003
NOTES TO FIi.,IANCIAL STATEMENTS (Continued)
governing transactions with aftiliates, and the irrposition ofany appropriate rernedies such as refunds and revocation ofrnarket-based
rates. The investigation also explored whether tbe coryanies providcd all relevant information in response to the May 8,2002 data
request.
In December 2002, as a result of the investigation, the FERC trial staff, Avista Corp. and Avista Energy filed a joint motion
announcing that thc parties had reached atr agreernent in principle and requested that the procedural schedule be suspended. In the
joint nrction, the FERC trial staff stated that its investigation found no evidence that (l) any executives or enployees of Avista
Utilities or Avista Energy knowingly engaged in or facilitated any rryroper trading strategy; (2) Avista Utilities or Avista Energy
engaged in any effor6 to rnanipulate the western energy markets during 2000 aud 2001; and (3) Avista Utilities or Avista Energy
withheld relevant information from the FERC's inquiry into the westem energy markets for 2000 and 2001. In December 2002,the
FERC's administrative law judge approved the joint motion" suspending the procedual schedule in the FERC investigation regarding
Avista Corp. and Avista Energy. ln January 2003, the FERC tial staff, Avista Corp. and Avista Energy filed a conpleted 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 commissioners for acceptance following a 30-day conrnent period.
In February 2003, the City of Tacoma (Tacorna) and Califomia Parties (the Office of the Attoraey General, the Califomia Public
Utilities Commission (CPUC), and the California Electricity Oversight Board, filing jointly) filed comments in opposition to the
agreement in resolution between the FERC tial staff, Avista Corp. and Avista Energy. PGE filed cornments 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 comrents in response to Tacoma, the California Parties, and PGE. The FERC trial staff filed separate reply comments
supporting the agreement in resolution and responding to Tacoma, the Califomia Parties and PGE. The reply corrneuts of Avista
Corp., Avista Energy and the FERC trial staff also reiterated the request that the administative law judge certifu the agreernent in
resolution and forward it to the FERC cornmissioners for approval.
On March 26, 200.3, the FERC policy saff issued ir fmal report on their investigation of western energy markets. In the report, the
FERC policy staff recommendcd the issuance of "show cause" orders to dozens of conpanies to respond to allegations of possible
mrsconduct in the western energy markets during 2000 and 2001. Of the conpanies named in the March 26,2003 report, Avista Corp.
and Avista Energy were among the few that had already been the subjects of a FERC investigation.
At an April 9, 2W3 prehearing conference relating to the ongoing investigation of Avista Corp. and Avista Energy, Avista Corp.
proposed that the decision to certiff the agreeurnt betw'een Avista Corp., Avista Energy and the FERC trial staffbe delayed to firther
address certain issues and to allow for potential rurcertainty to be removcd with respect to the final resolution of the case. The FERC's
administrative law judge agreed and ordered a further prehearing conference to clari$ certain issues raised in the March 26,2003
FERC policy staffreport on westem energy markets.
On May 15, 2003, the FERC's rial staff submitted supplementary information explaining its conclusions and addressing three
narrowly focused issues related to the March 26, 2003 FERC policy staff report on westem energy markets. The FERC's
administative law judge held a fiuther prehearing conference on May 20, 2003, at which time the FERC trial staff reviewed ib
frndings and conclusions, and reiterated their reconrrrendation to certiS the agreement in resolution as supplemented. On Mzy 27,
2003, Tacoma and the California Parties reiterated their objections to the proposed agreernent in resolution. Avista Corp., Avista
Energy and the FERC trial staff each filed reply coilrments to Tacoma and the California Parties on June 3, 2003, reiterating their
recornmendations to the FERC's administrative law judge for certification of the agreement in resolution.
On Jnne 25,20{J.3, the FERC's administrative law judge issued an order denying the request to certifr the agreement in resolution and
to forward it to tho FERC commissioners for final approval. tn the June 25, 2003 order, the FERC's administrative law judge
reinstated a procedural schedule that called for firther testirnony and hearings in the case.
On July 10, 2003, Avisa Corp. and Avista Enerry filed an appeal to the June 25,2W3 order. In the appeal, Avista Corp. and Avista
Energy asserted that the FERC's administrative law judge did not havc the opporhrnity to consider how other orders, which were also
issued on June 25, 2003 by the FERC with respect to westem energy markets and Enron, would inpact the case. Those orders
provided additional gridance with respect to defining inproper hading activities with the effect of further validating the findings of the
FERC tial staffs investigation of Avista Corp. and Avista Energy. On July 10, 2003, the FERC trial staffalso filed a motion with the
FERC's administrative law judge asking for clarification and reconsideration of the June 25, 2003 order. The FERC's trial staff
FERC FORM NO.2 '123.27
Name of Respondent
Avlsta Carp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
ut30t2004
Year of Report
Dec 31. 2003
NOTES TO FI}.IANCIAL STATEMENTS (Continued)
requested that the agreemeut in resolution be certified and forwarded to the FERC comrnissioners for final approval without the need
for a further hearing. On July 17,2003, Avista Corp. and Avista Energy filed au answer to this motion with the FERC, which
supported the FERC trial staffs position.
On July 24,2003, the FERC's administrative law judge issued an order, which granted the FERC trial staffs July 10, 2003 motion for
reconsideration. In the order, the judge found that there werc no unresolved issues of material fact and that the record was suflicient
for the FERC to make a determination on the meri6 of the settlemcnt. The judge certified the agreenrnt in resolution and forwarded it
to the FERC conurissioners for fural approval. la rc16hing this conclusion, the FERC's administrative law judge considered the July
10, 2003 appeal by Avista Corp. and Avista Energy. However, this 6ppeal was denied as moot in view of granting the FERC trial staff
motion for reconsideration. The certification stated that "lhe Chief Judge further finds that the proposed settlement disposes of all
issues set for hearing in this proceeding, that it is just, reasonable, and in the public interest."
On August 8, 2003, the California Parties filed a rnotion with the FERC and the chief administrative law judge requesting that the
judge reconsider his July 24,2003 order grauting reconsideration and canceling the procedural schedule, as well as the judge's
certification ofthe agreement in resolution. In respoose to the filing, the chief adnrinistative lawjudge stated that he certified the
agreernent in resolution and forwarded it to the FERC commissioners for their consideration. The chief administrative law judge
indicated that he would advise the Secretary of the FERC that the California Parties' motion be refened to the FERC conrnissioners
for consideration. On August 22, 2003, Avisa Corp. and Avista Energy filed a response to the August 8, 2003 motion of the
California Parties. The response reiterated, among other things, that the agreement in resolution is strongly supported by the extensive
investigation conducted by the FERC trial stafi, and should be approved by the FERC conunissioners.
Final approval of the agreement in resolution has rennined pending before the FERC since July 2003.
U.S. Commodity Futures Trading Commission (CmC) Subpoena
Beginning in June 2002, the CFTC issued several subpoenas directing Avista Corp. and Avista Energy to produce certain materials and
make enployees availablc to be interviewed. The inquiries related to whether electricity and natural gas trades by Avista Corp. and
Avista Energy involved'tound trip tades," '\*,ash trades," or "sell,,/buyback Eades" and whether Avista Corp. and Avista Energy
properly reported trading prices to publishers of power and natural gas indices. Avista Corp. and Avista Energy cooperated with the
CFTC and provided the information requested by the CFTC. While the CFTC always reserves the right to reopen its investigatiog the
CFTC provided nritteu notification to Avista Corp. and Avista Energy on January 29,2004 that it has determined to close the
investigation.
Class Action Securities Litigetion
On Septernber 27,2002, Ronald R. Wambolt filed a class action lawsuit in the United States District Court for the Eastern Disrict of
Washin$on against Avista Corp., Thomas M. Matthews, the former Chairman of the Boar4 President and Chief Executive Offtcer of
the Conpany, Gary G. Ely, the current Chairman of the Board, President and Chief Executive Officer of the Conpany, and Jon E.
Eliassen, the former Senior Vice President and Chief Financial Offrcer of the Conpany. ln October and November 2002, Gail West,
Michael Atlas and Peter Amone filed similar class action lawsuits in the same court against the same parties. On February 3, 2003, the
court issued an order consolidating the conplainr under the name "In re Avista Corp. Securities Litigatioq" and otr February 7,2003
appointed the lead plaintiff and co-lead cormsel. On August 19, 2003, the plaintiffs filed their consolidated anrcnded class action
conplaint in the same court against the sarne parties. In their conplaint, the plaintiffs continue to assert violations of the federal
securities laws in connection with alleged misstatements and omissions of material fact pursuant to Sectious l0O) and 20(a) of the
Securities Exchange Act of 1934. Thc plaintiffs allege that the Cornpany did not have adequate risk managernent processes,
procedures and conEols. The plaintiffs further allege that the Conpany engaged in unlawfirl energy trading practices and allegedly
maoipulated westcm power rnarkets. The plaintiffs assert that alleged misstatements and omissions have occurred in the Conpany's
filings with the Securities and Exchange Connnission and other inforrnation rnade publicly available by the Coupann including press
releases. The class action conplaint asserts claims on behalf of all persons who purchase{ converte4 exchanged or otherwise
acquired the Corryany's cortrnon stock druing the period between November 23, 1999 and August 13,2W1 The Conpany filed a
nption to dismiss this conplaint in October 2003 and the plaintiffs filed an answer to this motion in January 2004. Arguments before
the Conrt on the motion are scheduled to be held on March 19,2004. The Corrpany intends to vigorously defeud against this lawsuit.
FERC FORM NO.2 1 123-28
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Name of Respondent
Avista Corp.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t200/.
Year of Report
Dec 31, 2003
NOTES TO FIMNCIAL STATEMENTS lContinuedl
Celifornie Enerry Mrrkets
ln March 2fi)2, the Attoruey General of the State of Califomia (Califonria AG) filed a conplaint with the FERC against certain
specific coupanies (not including Avista Corp. or its subsidiaries) aud "all other public utility sellers" in Califomia. The corylaint
alleges that sellers with market-based rates have violated their tariffs by not filing with the FERC transaction-specific information
about all oftheir sales and purchases at rnarket-based rates. As a resulg the California AG contends that all past sales should be
subject to refirnd if found to be above just and reasouable levels. In May 2002, the FERC issued an order denying the claim to issue
refunds. In luly 2002, the California AG requested a rehearing on the FERC order, which request was denied in September 2002.
The Califomia AG filed a Petition for Review of the FERC's decision with the United States Court of Appeals for the Ninth Circuit
and awaits decision.
Port of Seattle Complaint
On May 21,2003, the Port of Seattle filed a complaint in the United Sates District Court for the Westem District of Washington
against nurnerous conpanies, including Avista Corp., Avista Energy and Avisa Power. The conplaint seels conpensatory and Eeble
rlamages for alleged violations of the Shermau Act and the Racketeer Influenced and Comrpt Organization Act by transmitting, via
wire communications, false inforrnation intended to incrcase the price of power, knowing that othcrs would rely upon such
inforrnation. The conplaint alleges that the defendans and others howingly devised and attenpted to devise a scherne to defraud and
to obain money and property from electricity custorners throughout the WECC, by means of false and fraudulent preteDses,
representations and promises. The alleged purpose ofthe scheme was to artificially increase the price that the defendants received for
their electricity and ancillary services, to receive payments for services they did not provide and to manipulate the price of electricity
tbroughout tlrc WECC. tn August 2003, the Corryany filed a motion to dismiss this conplaint. A tansfer order has been granted,
which moves this case to the United States District Court for the Southem District of Califomia to consolidate it with other pending
actions. Arguments with respect to the rmtions to dismiss filed by the Conpany and other defendane are scheduled for March 26,
2004.
State of Montana Proceedings
On June 30, 2003, the Attorney General of the State of Montana (Montana AG) filcd a conplaint in the Montana District Court ou
behalf of the people of Montana and the Flathead Electric Cooperative, Inc. against nunrcrous conpanies, including Avista Corp. The
conplaint alleges that the conpanies illegally manipulated westem electric and natural gas markets in 2000 and 2001. This case was
subsequently moved to the United States District Court for the Disrict of Montana; however, it has since been remanded back to the
Montana DisEict Court.
The Montana AG also petitioned the Montana Public Service Commission (MPSC) to fine public utilities $1,000 a day for each day it
finds they engaged in alleged "deceptive, fraudulen! anticonpetitive or abusive practices" and order refunds when consumers were
forced to pay rxlre than just and reasonable rates. On February 12,20M, the MPSC issued an order initiati.g investigation of the
Montana reail electricity market for the purpose of determining whether there is evidence of uulawful manipulation of that market.
Montrna Public School Trust Fund Lawsuit
On October 20,2003, Richard Dolan and Denise Hayrnan filed a lawsuit in the United States District Court for the District of Montana
against all private ownerc of hydroelectric dams in Montana, including Avista Corp. The lawsuit alleges that the hydroelectric
facilities are located oD state-owued riverbeds and the owneni have never paid conpensation to the state's public school fiust fund.
The lawsuit requests lease payments dating back to the constnrction of the respective dams and also requests damages for tespassing
and unjust enrichment. An Amended Complaint adding Great Falls Elemeutary School District No. I and Great Falls High School
District lA was filed on January 16,2N4. On February 2,20o4., the Corryany filed its motion to dismiss this lawsuit; PacifiCorp and
PPL Montana as the other narned defendants also filed a motion to dismiss, or joined therein.
Colstrip Generrting Project Complaint
In May 2fi)3, various parties (all of which are residents or businesses of Colstrip, Monana) filed a consolidated couplaint against the
owners of the Colstip Generat'ng Project (Colstrip) in Montana District Court. Avista Corp. owns a 15 percent interest in units 3 and
FERC FORM NO.2 1 Page 123.29
Name of Respondent
Avista Corp.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,l30t200/.
Year of Report
Dec 31.2003
NOTES TO FII.IANCIAL STATEMENTS (Continued)
4 of Colstrip, which is located in southeastern Montana. The plaintiffs allege damages to buildings as a result of rising ground water,
as well as damages from contaminated waters leaking from the lakes and ponds of Colstrip. The plaintiffs are seeking punitive
damages, an order by the court to remove thc lakes and ponds and the forfeitrue of all profits earned from the generation of Colstrip.
The Conpany intends to work with the other owners of Colskip in defense of this corplaint.
Hamilton Street Bridge Site
A portion of the Hamilton Steet Bridge Site in Spokane, Washingon (including a former coal gasffication plant site that operated for
approximatcly 60 years rmtil 1948) uras acquired by the Conpany througb a rnerger in 1958. The Conpany no longer owns the
property. In January 1999, the Conpany received notice from the State of Washington's Departrnent of Ecology (DOE) that it had
been designated as a potentially liable party (PLP) with respect to any hazardous substances located on this site, sternming from the
Cornpany's past ownership of the formcr gas plant site. In its notice, the DOE stated that it intended to conplete an on-going remedial
investigation of this site, corylete a feasibility study to detemrine the most effective nreans of halting or contolling future releases of
substances from the site, and to inplernent appropriate remedial nrcasures. The Conpany responded to the DOE aci xowledging its
li5ting as a PLP, but requested that additional parties also be listed as PLPs. In the spring of 1999, the DOE named t,. ., other parties
as additional PLPs.
The DOE, the Coryany and another PLP, Burlington Northern & Santa Fe Railway Co. (BNSF) siped an Agreed Order in March
2000 that provided for the conpletion of a remedial investigation and a feasibility study. The work to be performed under the Agreed
Order includes three major technical parts: conpletion of the remedial investigation; performance of a focused feasibility shrdy; and
inplemenation of an interim groundwater monitoring plan. Druing the second quarter of 2000, the Conpany received comrn€nts
from the DOE on its initial rernedial investigation, and then submined another draft of the remedial investigation, which was accepted
as fual by 0re DOE. After responding to comrnents from the DOE, the feasibility study was accepted by the DOE during the fourth
quarter of 2000. After receiving input from the Conpany and the other PLPs, the fmal Cleanup Action Plan (CAP) was issued by the
DOE in August 2001. In Septernber 2001, the DOE issued an initial draft Consent Decree for the PLPs to review. During the fust
quarter of 2002, the Conpany and BNSF signed a cost sharing agreemeot. In September 2002, the Company, BNSF and the DOE
finatized the Consent Decree to inplement the CAP. The third PLP has indicated it will not sign the Consent Decree. It is currently
estimated that the Conpany's sbare of the costs will be less than $1.0 million. The Engineering and Design Report for the CAP was
submitted to the DOE in January 2003 and approved by the DOE in May 2003. Work under the CAP commenced during the second
quarter of 2003. Negotiations are continuing with the third PLP with respect to the logistics of the CAP.
Lske Coeur d'Alene
In July 1998, the United States District Court for the District of Idaho issued its finding that the Coeur d'Alene Tribe of Idaho owns
portions of the bed and banks of Lake Coeur d'Alene and the St. Joe River lying within the current borurdaries of the Coeur d'Alcne
Reservation. This action was brought by the United States on behalf of the Tribe against the Sate of Idaho. While the Corryany bas
not been a party to this action, the Conpany is continuing to evaluate the potential inpact 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
affirmcd by the United States Court of Appeals for the Ninth Circuit. The United States Supreme Court aftirmed this decision in June
2001. This will result in the Coupany being liable to the Coeur d'Alene Tribe of Idaho for payrnents for use of reservation lands
under Section l0(e) ofthe Federal PowerAct.
Spokene River Relicensing
The Coryany operates six hydroelectric plants on the Spokane River, and five of these (Long Lake, Nine Mile, Upper Falls, Monroe
Street and Post Falls) are under one FERC license and referred to herein as the Spokane River Project. The sixth, Little Falls, is
operated under separate Cougressional authority and is not licensed by the FERC. The license for the Spokane River Project expires
in August 2007; the Conpany filed a Notice of Intent to Relicense in July 2002. T\e formal consultation process involving planning
and inforrnation gathering with stakeholder groups is underway. The Conpany's goal is to develop with the stakeholders a
conprehensive and cost-effective settlernent agreenEnt to be filed as part of the Conpany's license application to the FERC in July
2005.
FERG FORM NO.2 123.30
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Name of Respondent
Avista CorD.
This Report is:
(1)XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t200/
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continuedl
Clark Fork Settlement Agreement
Dissolved gas levels exceed Idaho and federal water quality standards downsteam of the Cabinet Gorge Hydroelectric Generating
Project (Cabinet Gorge) during periods when excess river flows must be diverted over the spillway. Mitigation of the dissolved gas
levels continues to be studied as agreed to in the Clark Fork Settlernent Agreernent. To date, intensive biological studies in the lower
Clark Fork River and Lake Pend Oreille have docunrcnted no significant biological effects of high dissolved gas levels on free ranging
fish. Under the terms of the Clark Fork Settlenrcnt Agreernent the Conpany developed an abatement and mitigation strategJ with the
other sigmatories to the agreernent and submitted the plan in Decerrber 2002 for review and approval to the Idaho Department of
Environmental Quality and the U.S. Fish and Wildlife Service. In December 2003, the Idaho Departnent of Environrnenal Quality
provided modifications to the plan that have been reviewed by the Corrpany. The modifications did not result in any sipificant
changes to the Conpany's plau. The stuctural alternative proposed by the Conpany provides for the modification of the two existing
diversion tunnels built when Cabinet Gorge was originally constnrcted. The costs of modifications to the first tunnel are currently
estimated to be $37 million (including AFLIDC and inflation) and would be incurred between 2004 and 2009. The second tunnel
would be modified only after evaluation of the performance of the fust tunnel and such modifications would comrncnce no later than
l0 years foltowing the conpletion of the first tunnel. It is currently estimated that the costs to modiS the second tunnel would be $23
million (including AFLJDC and inflation). As part of the plan, the Corryany will also provide $0.5 million aonually conmencing as
early as 2(XX, as mitigation for aquatic resources tbat might be adversely affected by high dissolved gas levcls. Mitigation flrnds will
continue until the modification of the second tunnel comrncnces or if the second tunnel is not modified to an agreed upon point in time
cornneDsurate with the biological cffects ofhigh dissolved gas levels. The Conpany will seek regulatory recovery ofthe costs for the
modification of Cabinet Gorge and the mitigation payments.
The operating license for the Clark Fork Project describes the approach to restore bull hout populations in the project areas. Using the
concept of adaptive rtanagerrctrt and working closely with the U.S. Fish and Wildlife Service, the Corrpany is evaluating the
feasibility of fish passage. The results of these studies will help the Coupany and other parties determine the best use of funds toward
continuing fish passage efforts or other population enhancenrnt rrcasures.
Other Contingencies
ln the normal course of business, the Conpany has various other legal claims and contingent rnatters ou8tanding. The Corrpany
believes that any ultimate liability arising from these actions will not have a material adverse inpact on the Conpany's financial
condition, results ofoperations or cash flows.
The Conpany routinely assesses, based on in-depth studies, expert analyses and legal reviews, its contingencies, obligations and
commitnents for remediation of contaminated sites, including assessrpnts of ranges and probabilities of recoveries from other
responsible parties who have and have not agreed to a settlernent and recoveries from insurance carriers. The Corrpany's policy is to
accrue and charge to current expense identified exposures related to environmental remediation sites based on estirnates of
lnysgtigation, cleanup and rmnitoring costs to be incurred.
The Conpany bas potential liabilities under the Federal Endangered Species Act 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, rneasures adopted and inplemented
have had minirnal inpact on the Conpany.
Under the federal licenses for its hydroelectric projects, the Conpany is obligated to protect its propcrty rights, including water rights.
The State of Montana is examining the status of all water right claims within state boundaries. Clairns within the Clark Fork River
basin could potentially adversely affect the energy production of the Cornpany's Cabinet Gorge and Noxon Rapids hydroelectric
facilities. The Company is participating in rhis extercive adjudication process, which is rurlikely to be concluded in the foreseeable
future.
The Conpany must be in conpliance with requirements under the Clean Air Act Anrndments at the Colstrip thermal generating plant,
in which the Corrpany nraintains an ownership interest. The anticipated share of costs at Colstrip is not expected to have a major
economic inpact on the Conpany.
FERC FORM NO.2 1 't23.31
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale) A Resubmission
Date of Report
(Mo, Da, Yr)
0/,/3onoo/-
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
As of December 31, 2UJ.3, the Conpany's collective bargaining agre€ment with the International Brotherhood of Electrical Workers
represented approxirnately 48 percent of all Avisa Utilities enployees. The current agreernent with the local union representing the
majority of the bargaining unit euployees expires on March 25,2005, A local agreernent in the South Lake Tahoe area, which
r€presents 5 enployees, also e:rpires on March 25,2005. A local agreerrrcnt in Medford, Oregon, which covers ap,proxinrately 40
erryloyees, will cxpire on March 31, 2005. Negotiations are currently ongoing with respect to two other labor agreements in Oregon
covering approximately I 5 erryloyees.
NOTE 24. SELECTED QUARIERLY FINAIYCIAL DATA (Uneudited)
The Conpany's energy operations are significantly affected by weathcr conditions. Consequently, there can be large variances in
revenues, expeDses and net income between quarters based on seasonal factors such as terrperatrues and streamflow conditions.
During the second quarter of 2003, Avista Corp. reported Avista Labs as discontinued operations (see Note 3). Accordingly, periods
prior to the second quarter of2003 have beeu restated to reflect Avisa Labs as discontinued operations. Several accounting standards
have been issued and rescinded, which have changed the accounting and reporting for derivative commodity instruments. This has
resulted in the restatement ofoperating revenues and resource costs (operating expenses) for periods prior to the issuance or rescission
of the respective accounting standards. Such restatements have not had any inpact on income from operations, income from
continuing operations, net inconre or income available for common stock. A surunary of quarterly operations (in thousands, except
per share amormts) for 2fi)3 and2002 follows:
Three Months Ended
March
3l
Jrme
30
September December30 3l
2003
Operating revenues
Operating expetres:
Resource costs
Operations and maintenance
Administrative and general
Depreciation and amortization
Taxes other than income taxes
Toal operating exp€ruies
Income from operations
Incorne from continuing operations
Loss from discontinued operations
Net incorne before cunulative effect
ofaccounting change
Cumulative effect of accounting change
Net income
Income available for common stock
Outstanding conrnon stock:
Weighted average
End ofperiod
Eamings per share, diluted:
Earnings per share fiomcontimring operations
Loss per share from discontinued operations
Earnings per sharc before curuulative effect
of accormting change
Curnrlative effect of accounting shange
Total earnings per share, diluted
Dividends paid per comrnon share
Trading price range per corunon share:
Hrgh
Low
$338,892
185,916
33,323
27,863
18,942
17.858
283.902
54.990
18,442
o.uq)
17,322
GJ!I)
16,132
$15,554
48,100
48,182
$0.37
(0.02)
0.35
(0.03)
$ot2
$0.12
$12.65
$9.80
s236,735
102,309
33,459
22,684
18,9(X
15.270
t92.626
-44.t0912,713
G.744)
8,969
J
8,969
$8,422
48,224
47,830
$0.25
(0.08)
0.17
J
$0.t2
$0.12
$14.80
$10.49
$238,750
122,591
3t,722
22,780
20,114
13.424
210.631
28.1 l9
4,396
_-(60)
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$309,008
165,676
39,554
24,t67
19,851
15.275
2il.523
44.485
15,102
(l9)
4,320 15,083
J _-i4,320 15,083$4,320 $15,083
48,281 48,31948,311 48,344
$0.09 $0.31
0.09 0.31
jj
$0-09 $03r$0.125 $0.12s
$16.s3 $18.70$13.91 $15.55
FERC FORM NO.2 123.32
Name of Respondent
Avista Coro.
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Y0
0/.t30t200/
Year of Report
Dec 31. 2003
NOTES TO FIMNCIAL STATEMENTS (Continued)
Three Months Ended
March
3l
September
30
December
3l
June
30
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2002
Operating revenues
Operating erpenses:
Resource costs
Operations and maintenance
Administrative and general
Depreciation and amortization
Taxes other than inconre taxes
ToAl operating ereenses
Incorne from operations
Income from continuing operations
Loss from discontinued operations
Net incornc (loss) before currulative effect
ofaccounting change
Cumulative effect of accounting change
Net income (loss)
Income (loss) available for connnon stock
Outsanding common stock:
Weighted avemge
End ofperiod
Eamings (loss) per share, diluted:
Eamings per share from continuing operations
Loss per share from discontinued operations
Eamings (loss) per share before cumulative effect
ofaccounting shange
Curmrlative effect of accounting change
Total eamings (loss) per share, diluted
Dividends paid per cornnon share
Trading price range per cornnxrn share:
HiCh
Low
ST]PPLEMENTAL C.A,SH FLOW INFORMATION:
(dollars in thousands)
$337,6t7
196,734
31,691
22,310
17,753
t9.917
288.405
49-2t2
16,976
fi.7281
15,248
(4.148)
I 1,100
$10,492
47,671
47,737
$0.3s
(0.04)
0.31
(0.0e)
$L22
$0.12
$16.47
$13.00
$231,082
91,(x0
30,236
33,879
17,737
16.290
189.182
4r.900
12,292
(.1.9471
10,345
-J10,345
$9,737
47,774
47,830
$0.24
(0.04)
0.20
J
$020
$0.12
$16.60
sI1.00
$206,821 5287,396
97,944 150,99631,799 32,20421,795 27,66317,440 19,93713.991 15.418182.969 245.21823.852 42.178864 t2,M2(2.47e) (56s)
(1,615) 1t,477
-i-(1,615) 11,477
$(2,223) $10,899
47,866 47,97947,930 48,U4
$0.00 $0.24(0.0s) (0.01)
(0.05) 0.23
J.j$(0.0fl $o23$0.12 $0.12
$13.89
$10.16
$12.10
$8.7s
2002 2001
Cashpaid for intercst
Cash paid for incorre taxes
Non-cash financing and investing activities
Transfer ofCoyote Springs 2 from subsidiary
Property and equipment acquired under capital leases
Intangible asset related to pension plan
Unftnded accumulated benefit obligation
$84,645
11,476
106,766
3,106
(6s4)
l5,lgg
$31,307 $12,1567,428 (35,874)
6,366
(34,1&)(1,139)
FERC FORM NO.2 1 123.33
Name ot K6ponoenr
AvisE Corp.
This Reood ls:(1) SAn Original(2) nA Resubmission
uale or Kepon(Mo, Da, Yr)
ut30t200d.
Year or Kepon
Dec.31, 2003
UIAItsMtsNIU (JF AUUUMUU\I EU UUMTHEHENSIVE INU(JME, UUMIJI{EFIENT,IVE INUUME, ANU HEU(,INL, AUI IVI I IEs
1. Report in @lumns (b) (c) and (e) the amounts of accumulated other comprohensive income items, on a net-of-tax basis, where appropriate.
2. Report in @lumns (0 and (S) the amounts of other categories of other cash flo, hedg6s.
3. For eacfi category of hedg€s that have been accounted for as 'fair value hedges', report the accounts affected and the related amounts in a footnote.
Jne
No.
It€m
(a)
Unrealized Gains and
Losses on Available-
for-Sale Securities
(b)
Minimum Pension
Liability adjustment
(net amount)
(c)
Foreign Cunency
Heclges
(d)
Other
Adjustments
(e)
I Balance of Account 219 at Beginning of
Preceedlng Year
Preceding yr. Redassification ftorn Account
2'19 Net lncome
Preceding Year Changes in Fair Value ( 18,809,177)
A Total (lines 2 and 3)( 18,809,177)
Balance of Account 2'19 at End of
Preceding Yr/Beginning of Cunent Yr ( 18,809,1r/)
6 Cunent Year Redassification From Accounl
219 to N6t lncome
Curent Year Changes in Fair Value 9,454,088
I Total (lines 6 and 7)9.454.088
s Balance of Account 219 at End of Cunent
Year ( 9,355,089)
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FERC FORM NO.2 (NEW 06-02)Paga 122a
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Name or Kesponoent
Avista Corp.
I nts F(eDO]I tS:(1) EItu Original
(21 nA Resubmission
uate oI KeDon(Mo, Da, Yi)
ut30t200d
Year or Kepon
Dec.31, 2003
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
ine
No.
Other Cash Flor
Hedges
tSpeafvl
lfl
Other Cash Flow
Hedges
tSpedfyl
(o)
Totals for eactr
category of items
ecoded in
Account 219
(h)
Net lncome (Canied
Forward ftom
Page 1'l7,Une72l
(i)
Total
Comprehensive
lncome
0)
( 18,809,177)
( 18,809,177)31,306,753 't2,497,576
( 18,809,177)
9,454,06E
9.454.086 u,fi4,252 53,958,340( 9,3ss,089)
FERC FORil NO.2 (NEW 06.02)Page l22b
Name ot Hesponoent
Avista Corp.
This Reoort ls:(1) [An Original(2t -A Resubmission
uate ot Heoon(Mo, Da, Yi)
0/,t30l20u
Year ot Repon
Dec.3i, 2003
UUMMAI(Y 9F U I ILI I Y PI.AN I ANU ASUUMUI-A I EU PII9VII'I9N!i
FOR DEPRECIATION. AMORTIZATION AND DEPLETION
ine
No.
Classification
(a)
Total
(b)
Elecbic
(c)
1 Utility Plant
2 ln Service
3 Plant in S6Mce (Classified)2,514,133,202 1.956,750.36
4 Property Under CapiEl Leases 3,905,,146
5 Plant Purcfiased or Sold
6 Cornpleted Consfuction not Classified
f Experimental Plant Unclassifi ed
8 Total (3 thru 7)2,518,03E,648 1,956,750,361
9 Leased to Others
10 Held for Future Use
11 Consbuc'tion Work in Progress 49,615,3ES 44,310,631
12 Acquisifon Adjustnenb 26,5E0,073
t3 Total Utility Plant (E thru 12)2,59/-,2U,11(2,001,060,99i
14 Acorm Prov for Depr, Amort, & Depl 886,846.714 651,1 32,50t
15 Net Utility Plant (13less '14)1,707,387.39€1.349.928.4&
16 DeEil of Accum Prov for Depr, Amott & Depl
17 ln Service:
16 Depreciation 826,175,77t 644,62't,40{
19 Amort & Depl of Producing Nat Gas Land/Land Right
20 Amort of Underground Storage Land/Land Rights
21 Amort of Other Utility Plant 8.490.24!6,511,10t
22 Total ln SeMce (18 thru 21)834,666,027 651.132,50t
23 Leas€d to Others
24 Depreciation 35,E57,05i
23 Amortization and Depletion
26 Totial Leased to Others (24 &251 35,857,05i
27 Held br Fuhrre Use
28 Deprecialion
29 Amoruzation
30 Iotal Held for Future Use (28 & 29)
31 ,rbandonment of Leases (Nat ral Gas)
32 Amort of Plant Acquisition Adj 16,323,63C
33 Total Accum Prov (equals 141(22,26,30,31,321 886,846,71,{6s1.132.50t
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FERC FORM NO.2 (ED. l2{9)Page 200
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Name of Respondent
Avlsta Corp.
This Reoorl ls:(1) fiAnOriginal(21 f.lA Resubmission
Lrate ol f{eoon
(Mo, Da, Yi)
0/,l30t200/
Year or F(eport
Dec.31, 2003
DUMMAF(Y L'T U I ILI I Y TLAN I ANU AUUUMULA I EU TKUVIUIUNS
FOR DEPRECIATION. AMORTIZATION AND DEPLETION
Gas
(d)
Other (Specify)
(e)
Other (Spedfy)
(n
Other (Specify)
{o)
Common
(h)
Line
No.
4U,721,2'ta 72.ffi1.62t
3,905,44(4
4U,721,21i 76,*7,074 I
I
10
2,0E2,56r 3,U.19i 11
26,580,07:12
513,38it,8s1 79,7E9,26:13
199,E57,14!35,857,057 14
313,526,70i 43,932,21('t5
17
161,554,37t
1.979.141 21
18:!.533,51(Zt
35,857,05i 21
.E
35,857,057 26
28
29
30
16,323,63(32
199,E57,14!35,857,057 33
FERC FORil NO.2 (ED. {2€9}Pege 201
Name of Respondent
Avista Corp.
This report is:
I X] An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Y)
April30,2004
Year Ending
Dec. 31, 2003
GAS PLANT IN SERVICE (ACCOUNTS 101. 102. 103. AND 106)
1. Report below the original cost of gas plant in service according to
the prescribed accounts.
2. ln addition to Account 101 , Gas Planl in Seruice (Classffrbdl, this
page and the next include Account 1O2, Gas Plant Purchased or
So/d, Account 10f, Expeimontal Gas Plant Unclassilied, and
Account 106, Completed Construction Not Classifte&Gas.
3. lnclude in column (c) and (d), as appropriate, corrections of
additions and retirements for the current or preceding year.
4. Enclose in parenthesis credit adiustments of plant accounts to
indicate the negative effect of such acrounts.
5. Classify Acrount 106 according to prescribed accounts, on an
estimated basis if necessary, and include the entries in column (c).
Also to be included in column (c) are entries for reversals ol tentative
distributions ol prior year reported in column (b). Likewise, if the
respondent has a signilicanl amount of plant retirements which have
not been classified to primary accounts at the end of the year, include ir
column (d) a tentative distribution of such retirements, on an estimated
basis, with appropriate contra entry to the account for accumulated
depreciation provision. lnclude also in column (d) reversals of tentative
distributions ol prior year's unclassified retirements. Attach
supplementral stratement showing the account distributions of lhese
tentative classifications in columns (c) and (d).
Line
No.
Account
Ial
Balance at
Beginning of Year
lbl
Additions
(c)
1
2
3
4
5
6
7
8
9
10
11
12
13
't4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
INTANGIBLE PLANT
301 Oroanization 0.00 0.00
S)2 Franchises and Consents 1.592.55 0.00
303 Miscellaneous lntanoible Plant 3.062.204.67 z',t4.206.84
TOTAL lntanoible Planl Enler Total of lines 2 lhru 4)3.063.797.22 214,206.84
PBODUCTION PLANT
Nalural Gas Produclion and Gatherinq Plant
325.1 Producino Lands 0.00 0.00
325.2 Producino Leaseholds 0.00 o.o0
325.3 Gas Riohts 0.00 0.00
325.4 Riqhlsof-Wav 0.00 0.00
325.5 Olher Land and Land Riqhts 0.00 0.00
326 Gas Well Structures 0.00 0.00
327 FieH Comoressor Stalion Structures 0.00 0.00
328 Field Measudno and Reoulatino Slation Eouioment 0.00 o.o0
329 Other Slruc'lures 0.00 0.00
3il0 Producino Gas Wells-Well Construction 0.00 0.00
&]1 Producino Gas Wells-Well Eouioment 0.00 0.00
3i!2 Field Unes 0.00 0.00
33il Field Compressor Stalion Equipmenl 0.00 0.00
334 Field Measurino and Beoulatino Station Eouiomenl 0.00 0.00
335 Ddllino and Cleanino EouiDment 0.00 0.00
336 PurilicationEouiomenl 0.00 0.00
3i]7 Oher Equipmenl 0.00 0.00
338 Unsuccessful Exploation and Development Costs 0.00 0.00
TOTAL Produc'tion and Gaherino Plant Enter Total of lines 8 thru 251 0.00 0.00
PRODUCTS EXTRACTION PTANT
340 Land and land Riqhts 0.00 0.00
341 Structures and lmDrovements 0.00 0.00
342 Extraction and Refinino Eouiomenl 0.00 0.00
343 Pipe Lines 0.00 o.oo
344 Extrac'ted Prcducts Sloraoe Eouioment 0.00 0.00
345 ComoressorEouiomenl 0.00 0.00
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FERC FORM NO.2 (ED. 12-96)Page 2O4
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Name of Respondent
Avistia Gorp.
lhis report is:
. XlAn Original
' I A Resubmission
Date of Report
(Mo, Da, Yf
April30,2004
Year Ending
Dec. 31, 2003
cAS PLANT lN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
including the reversals o, the prior years teniativs account
distributions of these amounts. Carelul observance of the
above instructions and the te)ds ol Account 1 01 and 1 06 will
avoid serious omissions ol respondenfs reported amount for
phnt actually in service at end of year.
6. Show in column (0 reclassilications or translers within ulility
plant accounts. include also in column (0 the additions or
reductions of primary account classifications arising lrom
Cistribution of amounts initially recorded in Account 102. ln
showing the clearance of Account 102, include in column (e)
he amounts with respect to accumulated provision tor
l€prociation, acquisition adjustnents, etc.,
and show in column (l) only the ofisst to the debits or crgdits to
primary account classilications.
7. For Acrount 399, stat6 the nature and use ol plant included in this
account and il substantial in amount submit a suplementary
statement showing subaccount classilication of such plant
conlorming to lhe rsquirements of these pages.
8. For each amount comprising the reported balance and changes in
Account 102, state the propgrty purchased or sold, name of vendor
or purchaser, and date ol transaction. ll proposed journal entries
have besn liled with the Commission as required by the Unilorm
System of Accounts, giv€ dat€ of such liling.
Retirements
(dl
Adjustments
/al
Transfers
TN
Balance at End of Year
{nl
Une
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
0.00 0.00 0.00 0.00
0.00 0.00 0.00 1.592.55
92.045.79 0.00 0.00 3.184.36s.72
92,0/,5.79 0.00 0.00 3.'t85.958.27
0.00 0.00 0.00 o.m
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 o.m 0.00 0.00
0.00 0.00 0.00 0.00
o.m 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 o.m 0.00 0.oo 17
18
19
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.m 0.00 0.m 20
21
22
23
24
25
26
27
28
29
30
31
32
33
0.00 0.oo 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.oo
o.m 0.00 0.00 0.00
0.00 0.00 0.00 0.00
o.oo 0.00 0.00 0.00
0.00 0.00 0.00 0.00
o.oo 0.m 0.m 0.m
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.(x)0.00 0.00
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent
Avista Corp.
this repoil is:
'XlAn Ofiginal
' lA Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2004
Year Ending
Dec. 31, 2003
GAS PLANT lN SERVICE (ACCOUNTS 101. 102, 103, AND 106) (Continued)
Line
No.
Account
(a)
Balance at
Beginning ol Year
(b)
Additions
lcl
34
35
36
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 Measurino and Beoulatino Eouiomenl 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
Manufaclured Gas Production Plant (Submit Suoolemental Statement)34.502.99 38.470.64
TOTAL Production Plant (Enter Totalof lines 37 and 38)34.s02.99 38.470.64
NATURAL GAS STORAGE AND PROCESSING PLANT
Underoround Storaoe Plant
350.1 Land 412.61 1 .39 0.00
350.2 Riohts-of-Wav 23.874.O3 0.00
351 Structures and lmorovements 1.061.767.12 1,932.64
352 Wells 5.565.37l.04 192,322.58
352-'l Storaoe Leaseholds and Riohts 254,354.23 0.00
352.2 Reservoirs 203.330.47 0.00
352.3 Non-recoverable Natural Gas 6.121.926.03 0.00
353 Lines 823.422.59 0.00
3il Comoressor Station Equipment 1.882.541.20 5't.544.13
355 Measurinq and Reoulatinq EouiDment 153.964.74 0.00
356 Purification Eouiomenl 403.712.62 0.00
357 Other Eouioment 1.632.459.05 12,O3/..23
TOTAL Underoround Sloraoe Plant (Enter Total of lines 42 lhru 53)18.539.340.51 257,833.58
Other Storaoe Planl
360 Land and Land Biqhts 0.00 0.00
361 Structures and lmprovements o.oo 0.00
362 Gas Holders 0.00 0.00363 PurificationEouiDmenl 0.00 0.00
363.1 Liouelaclion EouiDmenl 0.00 0.00
363.2 Vaoorizino Equioment 0.00 0.m
363.3 Compressor Equipment 0.00 0.00
363.4 Measurino and Beoulatino Eouiomenl 0.00 0.m
363.5 Other Eouioment 0.00 0.00
TOTAL Other Storaqe Plant (Enter Total of lines 56 thru 64)0.00 0.00
Base Load Liouefied Natural Gas Terminalino and Processino Plant
364.1 Land and Land Riohts 0.00 O.Otr
364.2 Structures and lmprovements 0.00 0.00
364.3 LNG Processino Terminal Eouioment 0.00 0.00
364.4 LNG Transooration Eouioment 0.00 0.00
364.5 Measurino and Reoulatino Eouioment 0.00 0.00
364.6 Compressor Station Equipmenl 0.00 0.m
364.7 Communicatons Eouionrenl 0.00 0.00
364.8 Other Eouiomenl 0.00 0.00
TOTAL Base Load Uo Nafl Gas. Terminal and Processino Plant (lines 67-74 0.00 0.00
TOTAL Nafl Gas Storaoe and Processinq Plant fiotal of lines 54. 65 and 751 18.539.340.51 257.833.58
TRANSMISSION P]-ANT
365.1 Land and Land Riohts 0.00 0.00
365.2 Riohls-ot-Wav 0.00 0.00
366 Structures and lmprovemenls 0.00 0.00
olololol
ololololololol
OIol
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FERC FORM NO.2 (ED. 12-96)Page 206
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trlame of Respondent
{vista Corp.
l'his report is:
XlAn Original
lA Resubmission
)ale ol Report
lMo, Da, Yr)
Apdl 30,2004
Year Ending
Dec. 31, 2003
Retirements
(d)
Adjustmenls
(el
Transfers
(fl
Balance at End of Year
lo)
Une
No.
0.00 0.00 0.00 0.00 34
35
36
37
38
39
/t0
4'.1
42
434
45
46
47
0.00 0.00 0.00 0.oo
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 72,973.63
0.00 0.00 0.00 72,973.63
0.00 0.00 0.00 412.611.39
0.00 0.00 0.00 23,874.O3
0.00 0.m 0.m 1.063.699-76
0.00 0.00 o.m 5.757.699.62
o.00 0.00 0.00 zil.35/.23
0.00 0.00 0.00 203.330.47
0.00 0.00 0.00 6.121.926.03 48
49
50
5'l
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
T7
0.00 0.00 0.00 823.422.59
0.00 0.00 0.00 1.934.085.3{t
0.00 0.00 0.00 153.964.74
0.00 0.00 0.00 403,712.62
0.00 0.00 0.00 1.6'44-493-28
0.00 0.00 0.00 18.797.174.09
0.00 0.00 0.00 0.00
0.00 0.00 0.00 o.m
0.00 0.00 0.00 o.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 o.oo
0.00 0.00 0.00 o.00
0.00 0.00 0.00 0.00
0.00 o.m 0.00 0.00
0.00 0.00 o.m 0.00
0.00 0.00 0.00 0.00
0.00 o.m 0.00 0.00
0.00 0.00 o.00 0.00
0.00 0.00 0.00 o.oo
0.00 0.00 0.00 0.00
0.00 0.00 o.00 o.oo
0.00 0.00 0.00 o.00
o.oo o.oo 0.00 o.00
o.00 0.00 0.00 o.oo
0.00 0.00 0.00 18.797-174.O9
o.00 0.00 o.m o.00 78
79
80
0.00 0.00 0.00 0.00
o.oo 0.00 0.00 0.00
FERC FORU NO.2 (ED. 12-96)Page2OT
Name of Respondent
Avista Corp.
Ihis report is:
'XlAn Original
' lA Resubmission
Date of Report
(Mo, Da, Yr)
April30,2004
Yeat Ending
Dec. 31, 2003
GAS PLANT lN SERVICE (ACCOUNTS 101. 102. 103. AND 1OO) (Continued)
Line
No,
Accounl
(a)
Balance at
Beginning of Year
(b)
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
'r06
107
108
109
110
111
112
113
114
115
116
1'.17
118
119
120
12'.1
367 Mains 0.00 0.00
368 Compressor Station Equipment 0.00 0.@
369 Measurino and Reoulatino Eouioment 0.00 0.00
370 CommunicationsEouioment 0.00 0.00
371 Other Eouioment 0.00 0.00
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0.00 0.00
DISTRIBUTION PLANT
374 Land and Land Riohts 113.916.51 eo.87\
375 Structuresaqg!lmprovgpents 6'.t4.OO2.O7 18.086.08
376 Mains 216.541.259.41 9.470.021-52
377 Comoressrir Station Equiornent o.m 0.m
378 Measurinq and Requlatinq Equioment-General 4.272.328.O8 131.819.82
379 Measurino and Reoulatino Eouioment-Citv Gate 1.726.021.37 125p47.94
380 Services 155.622.620.54 7.431.902.02
381 Meters 49.000-315.97 2.680.535.96
82 Meterlnstiallations 0.00 0.00
383 House Reoulators 0.00 0.00
384 House Reoulator lnstallations 0.00 0.00
385 lndustrial Measurino and Reoulatino Station Eouioment 2.382.O3/..37 206-204-25
386 Other Prooertv on Customers' Premises 0.m 0.00
386 Other Eouioment 539.29 0.00
TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)430-273.037.61 20.oil.496.72
GENERAL PLANT
389 Land and Land Riohts 330.820.93 0.00
390 Structures and lmorovemenls 2.377.83/..4 15.101.'t 2
391 Office Fumiture and Eouioment 9.685.00 0.00
392 TransDortation Equipment 3.171.47.68 (88.803.571
393 Stores Eouioment 83.972.22 0.00
394 Tools. Shoo. and Garaoe Eouiornent 2.O14.74€,.62 377,726.83
395 I r'lboratory EquiPment 873,972.50 45.311.'t4
396 wer Operaled Equipment 2.519.588.35 0.00397 lmu4rca'lio1Equipment 1.589.216.62 85,415.46
398 ir: *cellaneous Eouiornent u,471.93 0.00
Subtotal (Enter Totals ol lines 104 thru 1 13)13.005.758.29 434.750.98
399 Other Tanqible ProDerW 0.00 0.00
TOTAL General Plant (Enter Totals of lines 1 14 and 'l 1 5)13.005.758.29 434.750.98
TOTAL (Accounts 101 and 106)464.916.436.62 21.009.758.76
Gas Plant Purchased (SEe lnstruction 8)0.00 0.00
/Less) Gas Plant Sold (See lnstruction 8)0.00
Exoerimental Gas Plant Unclassified 0.00 0.00
TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)464.916.436.62 21.009.758.76
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FERC FORM NO.2 (ED. 12-e6)Page 208
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O FERc FoRrrt No. 2 (ED. 12-96) page 209
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Name of Respondent
{vista Corp.
lhis repoil is:'XlAn Odginal
' I A Resubmission
Date ol Reporl
(Mo, Da, Yr)
Apdl 30,200+
(eat Ending
)ec. 31, 2003
Retirements
ldl
Adjustments
{e)
Translers
(fl
Balance at End of Year
(ol
Line
No.
0.00 0.00 0.00 0.00 81
82
83u
85
0.00 0.00 0.00 0.oo
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.m 86
87
88
89
90
91
92
93
94
0.00 0.00 0.00 113.895-64
3.963.31 0.00 (0.65)628,124.19
194,538.68 o.m 0.00 225.B'.t6.742.25
0.00 0.00 0.00 0.00
2s.974.11 0.m G76.28',4.377.497.5'l
15.384.59 0.00 (5.O/til.81 1.831.4rc.91
237.926.U 0.00 0.00 162.816,596.12
3s3.759.10 0.00 337.43 s'.t.327.430.26 95
96
97
98
99
100
101
't02
103
104
105
106
107
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
8/.1.45 0.00 915.07 2.s88.3'.12.24
0.00 0.00 0.00 0.00
0.00 0.00 0.00 539.29
832.387.68 0.00 u.468.24)449.500.678.41
0.00 0.m 0.00 3it0.820.93
11.275.48 0.00 11.968.07)2.309.692.01
0.00 0.00 0.00 9.685.00
228,638.38 0.00 134,665.47 2.988.671.20
0.00 0.00 0.00 83.972.22 108
109
110
111
112
113
114
115
116
117
118
119
120
't21
5.900.19 0.00 0.00 2.386.575.26
12.683.30 0.00 0.oo 906,600.34
26,785.25 0.00 0.00 2.492.803.10
9.009.82 0.00 (4.485.251 1.621.137.01
0.00 0.00 0.00 34.471.93
294,N2.42 0.00 18,212.15 13.164.429.00
0.00 o.m 0.00 0.00
n4.292-42 0.00 18.2'.t2.'.t5 13.164.429.00
1.218.725.89 0.00 13.743.91 484.721.2',t3.40
0.00 o.oo o.oo
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1.218.725-89 0.00 13.743.91 484.721.213.40
Name of Bespondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30, 2004
Year Ending
Dec. 31, 200i
CONSTRUCTION WORK IN PHOGRESS-GAS (ACCOUNT 107)
1. Reporl below descriptions and balances at end ol year ol and O€monstration (see Account 107 ol the Unilorm System ol
projects in process of construc{ion (Account 107). Accounts).
2. Show items relating to 'r6search, dev€lopment, and 3. Minor prolects (less than $1,000,000) may be grouped.
demonstralion'projec'ts last, undor a capiion Research,
Une
No.
Description ol Prolecl
(a)
Construction Work in Progress-Gas
(Account 1 07)
{b)
Estimated Additional
Cost of Proiect
(c)
1
2
3
4
5
6
7II
10
11
12
13
't4
't5
16
't7
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
IiIAIE(JFWASHINLiIL,N
Minor Proiects (34) Under $1,000,000
STATE OF IDAHO
Minor Projects (18) Under $1 ,000,000
STATE OF OREGON
Minor Projects (221 Undu S1,000,000
STATE OF CALIFORNIA
Minor Projects (0) under $1 ,000,000
COMMON.OF/CA/WMD
Minor Projects (2) under $1,000,000
904,694.14
348,858.01
423,741.56
0.00
405,271.28
607,486.30
1s,622.05
308,708.44
0.00
45 rOTAL 2.082.564.9S 931 ,816.7S
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FERC FORM NO.2 (ED. 12-96)Page 216
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Name of Respondent
Avista Corporation
Ihis Report Is:(1)E Anorisiml
(2)E AResubmission
Date of Report
'Mo, Da, Yr)
April 28, 2004
Year ofRepod
Dec. 31, 2003
ACCUMITLATED PROVISION FOR DEPRECTATION oF GAS UTILITY PLANT (Account I 19)
l. Explain in a footnote any importaot adjustments
luring year.
2. Explain i1 a footnote any difference between the amount
:"or book costofplaotretired, line 11, column(c), andthat
:eported for gas plant in seryice, pages 20L209, column (d),
:xcluding retirenrcnts of nor-depreciable property.
3. The provisions of Account 108 io the Uniform System
rf Accounts require that retirements of depreciable plant
re recorded when such plant is retnoved fromservice. If
the respondent has a significant arrount of plant retired at
year end which has not been recorded and/or classffied to
the various reserve fimctional classifications, make
preliminary closing enties to tentatively fimctionalize the
book cost of the plant retired. In addition, include all costs
included in retirenpnt work in progress at year etrd in the
appropriate fimctional classifications.
4. Show sepaxately htercst s€dits ua6g1 a sinking fund
or similar method of depreciation accormting.
Section A. Balances and Chanses Durins Year
Liae
No.
Item
lal
Total
(c+d+e)
(hl
Gas Plant in
Service
lcl
Gas Plant Held
for Fuhre Use
tit
Gas Plant Leased
to Others
(e)
Balaace Bepinnins of Year t68.634.257 168.634.257
2 Depreciation hovisions for Year.
Charged to
3 /4O3) f)enreciation Exnense 13.692.663 13.692.663
4 (413) Exp. of Gas Plt. Iras. to Others
5 Trausportation Expenses-Clearinq 196.332 t96.332
6 Other Clearine Accounts
7 Other Accounts (Soecifv):
8 Transfer to cofilmon (transponrtion clear)0
9 TOTAL Deprec. hov. for Ycar
(Enter Total of lioes 3 thru 8)
13.888.995 13,888,995
0 Net Charges for Plant Retired:
I Book Cost of Plant Retired 1.126.680'(1.126.680'
2 Cost ofRemoval (234.397\,Q34.397',,
3 Salvaee (Credit)7 92,6 7.926
t4
t5
TOTAL Net Chrgs. for Plant ReL
@nter Total of lines I I Ouu l3)
)ther Debit or Credit Items (Describe)
(1,3s3,1s1
0
(r,353, l5 l)
0
t6
17 Balance End of Year @nter
Totaloflines 1.9-14. l5.and l6)181 170.101 1 81.170.101
Section B. Balances at End of Year Accordins to Functional Cla.ssifications
l8 hoduction-Manufactured Gas 170.585)(70-585)
l9 Prod. and Gatherins-Natural Gas
20 hoducts Extraction-Nah.ral Gas
21 Undereround Gas Storase 9.032.338 9.032.338
22 )ther Storase Plant
23 Base Load LNG Termand hoc. Plt.u Iransmission (34.t43'84.t43
25 Distribution 165_837.260 165.837.260
26 feneral 6.405.23t 6.405.231
27 TOTAL (F"ter Total of lines 18
thm 26)
181,170,101 181.170.10r C
FERC FORM NO.2 (BD. 12.87)Page2l9
{ame of Bespoftbnt
Avista Corporation
s neP9It rc.
[l nn originat
E A Resubmission
Jatg qa nEPu[
'Mo, Da, Y0
\pril 30, 2004 )ec.3'1,2003
GAS STORED (ACCOUNT 117.1.1',t7.2. 117.3. 117.4. 164. 1, 164.2. AND 154.3)
ll durdr€ lhs year ad,Btmsnts were mado to lhe slorod gas inventory
roporled in columns (d), (f), (g), and (h) (such as to conect cumulallve
inac€uracios ol gas moasurements), e)ehin in a lootnole tlE rsason lor
th6 adiustmer{s, lha Olh and.lrlla, amour( ol adiustmenl, and account
charyed or creclted.
2 Bepod in column (e) all encroachments durirE ttl3 yoar upon lt|e volumes
designatod aB base gas, column (b), and syslem balancirE gas, column
( c ), and gas prcperly recordable in th6 planl accounis.
Slale in a lootnote th6 basis ol segregalion ol inventory between
cunenl and rEncunent protiors. Also state in a looinote the
method usad to roport storage (1.e. lD(ed asset method or
inventory method).
,irx
{o
Description
[Aq@utr
117.11
lht
lAq@utr
117.2')lAccount 1 17.3'
lA@unr
t17.4)
uurtefi
(Accouil iAt.l)
Lt\u
(Accounl 164.2
LI\9
(Account 164.3)Total
til
meal Bmtmm ol Ys 127
re DelrenEd lo sloraoe 419 I 329 1 l2
N wilhdrawn lrom s]lome I 1.806,40'r 2,060,038
llEr D.bils ard 0
rlarEa at End ol Y6ar 8. t 76.40(639,34:8.8't5.783
ih 't.690.@i 270,W r.960.909
hount Per Dekalh€rm ti4. tja,6 t $2.3602 $4 4958
8 5rale oasE or segragatlon ot rweflory oelween cureil ano norEuram Ponpns:
Cunent portion is gas slg€cled to b6 sold wiihin a 24 month period. All oltlgr gas is consi(hred noFcuneril.
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FERC FORM NO. 2 (ED. 12-s6)Page22o
This Page Intentionally Left Blank
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Name ol Kesponoent
Avista Corp.
This Reoort ls:(1) SAn Original
(21 nA Resubmission
UAIE OI KAil'II
(Mo, Da, Yi)
(x/30/2004
Year or Kepon
p66. gl, 2003
INVESTMENTS lN SUBSIDIARY COMPANIES (Account 123.1
1. Report belo,v invesEnonts in Accounts '123,1, investments in Subsidiary Compani6s.
2. Povide a subheading tor each company and Ust there under lhe information called for below. Sub - TOTAL by company and give a TOTAL in
columns (e),(0,(g) and (h)
(a) lnvestnent in Seqrdties - List and describe each security owned. For bonds give also principal amount, date of issue, mafurity and interest rate.
(b) lnvestnent Advanoes - Report separately the amounts of loans or innestnent advances wirich are subject to repayrnent, but wtricfr are not subject to
cunent setuement. With rospect to eacfi advance shm whether the advanoe is a note or open ac@unt. List each note giving date of issuance, mahrrity
date, and spedrying wheher note is a renewal.
3. Report soparately the equity in undistibuted subsidiary eamings since acquisition. The TOTAL in column (e) should equal the amount entered for
Account 418.1.
-I tE
No.
l.,escnpuon or tnvesrnenl
(a)
Date Acquir€d
(b)
Date of
'"Ert,Beginning of Year
1
2 AvisE Capital - Common Stock 1997 184,2s1,609
3 Avista Capital - Equity in Eamings 72,486,131
4 Dividends from Subsidiary (Avista Capital)
5
6
7
E
s
10
11
12
13
14
't5
16
17
18
19
20
21
22
23
24
25
26
27
2A
29
30
31
32
33
34
35
36
37
38
ac
4C
41
42 l'otal CostofAccount 123.1 $ 0l TOTAL 256,737,740
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FERC FORM NO.2 (ED. {2{9)Page 224
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Name or Kesponoent
Avista Corp.
I nts l(eDon ts:(1) EiAn Odsinar(21 nA Resubmission
uato or Kepon(Mo, Da, Yr)
ut30a0/y-
Year or Kepon
Dec.3i, 2003
INVESTMENTS lN SUBSIOIARY COMPANIES (Account 123.1) (Continued)
4. For any securities, notes, or accounb that were pledged designate such securities, notes, or aooounts in a footnote, and stiate lhe name of pledgee
and purpose of the pledge.
5. lf Commission approval was requirsd for any advance made or security acquired, designate such fact in a foohote and give name of Commission,
dato of authorization, and case or docket number.
6. Report column (f) interest and dividend revenues form investnents, including such revenues form securities disposed of during the year.
7. ln column (h) report for each investment disposed of during fte year, the gain or loss represented by the difference behiveen cost of the investment (or
the olher amount at whicfr canied in he books of account if difierence from cost) and the selling price thereof, not including interest adjustnent indudible
in column (f).
8. Report on Line 42, column (a) the TOTAL cost of Account 't23.1
Equrry rn Duoslqlary
Eaminqsrof Year
Kevenues ror Year
(0 End
fl)Y€ar
Garn or Loss ron lnveslmentois06go ot Line
No.
1
184,251,609 2
9,156,784 81,642.9r5 3
-9,990,036 -9,990,036 4
5
6
7
I
I
10
1'l
't2
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
41
9,156,7E4 -9,9SA,036 255,9(N,488 42
FERC FORrrr NO.2 (ED. r2{9)Pago 2Zs
Name of Respondent
Avista Corp.
lhis report is:'XlAn Original
' I A Resubmission
Date of Heport
(Mo, Da, Yr)
April30,2004
Year Ending
Dec. 31, 2003
PHEPAYMENTS (ACCOUNT 165)
1. Reoort belo$, the oarticulars (details) on each oreoavment.
Lrne
No.
Nature of Prepayment
(a)
E atance aI trnq oI
Year(in dollars)
(b)
aid lnsurance 939,497
2 aid Renb
3 aE taxss
4 aid lnter69
5 Miscellaneous Prepayments 1.977.109
tr TOTAL 2.916.606
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FERC FORM NO.2 (ED.12-96)Page 230
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O FERc FoRm No.2 (Eo. l2€4) Pase 232
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Name ofRespondent
Avista Corp.
This(1)
(2)
Reoort ls:
E]An Original
nA Resubmlssion
Date of Reoort(Mo, Da, Yi)
ut30t20u
Year of Report
Dec.31, 2oog
(J I HEF(RESUI-A IUttY ASSETS (Acoount 1 62.3)
1. Rsport below the particulars (details) called for conceming 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 ilems (5olo of the Balance at End of Year for Account 182.3 or amounts less than $50,000, whichever is less) may be grouped
by classes.
Line
No.
Description and Purpee of
Other Regulatory Assets
(a'l
Debits
(b)
CREDITS Balance at
End of Year
(e)
ACCOUnI
Gharged
(c)
ilgut lt
(d)
'l FAS 106 - Accounting for Post Retirement 926.65 472.752 4.2il.768
2 Benefib, other than Pensions (182.30)
3 182.30 Arno.t p€riod 199S2012
4 FAS 109 - Acchg for lncome Taxes Util Prop 283.17,18 7,401,737 132,097,287
5 (182.31 & 182.32)
6 More Options Polrer Supply (MOPS) - WA (182.34 )407.44 190,944
7 More Options Porcr Supply (MOPS) - lD (1E2.34)407.44 29,592
8 WA ERM Defenal Balance (182.35)186.28 4,391,600 99,774,940
a WA &nortization (182.36)974,7il 557.16 974,7U
10 182.36 Amort period 2004-2006
tl Hamilton Sbeet Bridge - WA (182.39, 028)407.39 263,712 125,676
12 Hamilton Sreet Bridge - lD (182.39 038)407.39 107,052 105,300
13 BPA RES Exchange (182.45,02E)195,192 2v.45 195,192
14 BPA RES Exchange A/R (182.45,098)1,679,,145 2U.45 1,679,445
15 BPA RES Exchange - lnt Rec (1E2.46, 028)30,267 419.00 30,267
16 BPA RES Excfiange - lnt Rec (182.46, 03E)6,278 4't9.00 6,278
17 FAS 133 Reg Asset (182.74)
18 FAS 143-ARO Reg Asset (182.761 230.10, 10 436,329 -436,329
19 Oregon DSM Long-Tem Reg Asset (182.E0)\radous 164,307 -632,736
20 Workers Comp (182.83)1,688,889 242.83 1.688.889
2'.1
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
11
42
43
u TOTAL 4,574,825 13,4s8,025 239,863,73'l
Name of Respondent
AMsta Corp.
This ReDort ls:(1) [An Original(21 ;-1A Resubmission
UAIB OI F(€IX'fI
(Mo, Da, Yi)
0/,i3onory
Year or F(epon
Dec.31, 2003
MISCELI.TNEOUS DEFFERED DEItlTS (Account 166)
1.R
2.F
3.U
class
eport below the particulars (details) called for conceming miscellaneous defered debits.
rr any defened debit being amortized, show period of amortization in column (a)
inor item (1 % of the Balance at End of Year for Account 186 or amounts less than $50,000, whichever is less) may be grouped by
ies,
Line
No.
Desoiption of Miscellaneous
Defened Deblts
(al
Balance at
Beginning of Year
(h)
Oebits
(c)
CREDITS Balance at
End of Year
(f)erflilr Amount
(e)
1 Reoulatorv Debnals - WA
2 Colstio Common Fac.603.060 406 3'.t,74(571.320
3 WAAccrued Power Def 1.164.331 1.974.67(3.139.007
1 WA Defered Poner Costs 18.418.548 4372.421 2..791.372
5 WA ERM YTD Comoanv Band 4.5(n.m0 4.500.00(9,m0.m0
6 WA ERM YTD Confa Account .f.500.000 4,500,fix .9.000.000
7
8 Reoulatory Defenals - lD
I lD Defened New Generation 921.1U 18/..24(736,944
t0 Colstrip Common Fac.1.274 452 406 67.30t 1.211.il4
11 ldaho Accrued PCA Def 592.090 1.fiX.16r 't.596.258
1 lD Elefened Porer 57.960.050 24.378.03:var 82.338.083
1 lD Acarmulatecl Surcfiaroe Am -27.034.339 557 26.615.142 -53.649.481
14
1 Pawoll Accrual 1.597.42a 311.75:var 1.909.178
1€
't7 PPP Surcfiaroe 34t,92€89.42:454.349
1
19 Misc Eror SusD€nse -2,206,324 2.559.34(lrar 353.016
2C
21 Joint Proiects
22 Cenfalia Ooeratino Pavments
23
24 WPI-ID Terminated Elec Pur.783.98S 555 391.99i 39't.997
25
26 Unamortized A,/R Sale 357,123 116,271 241,146
27
28 lntanoible Pension Asset 6.365-810 't5 228.32 65:t,81(5.712.151
29
30 Bank Reon Suspense -192 191
31 Mark to Martet Defened Debit 2il
32 lnterest Rate Swap t -368 87d 1.368.E74
33v Nez P€rce Setflement 212,E69 557 5.21(207.659
35
36 Cenfalia Mine Env Balanca 567.s(x 4.811 572.324
37
36 DES Confact Amortization 47.232 556 61.E6t 25.372
3S
40 lleboSunset 1 151(\/ TE 68.651 45.93(1t4.581
41
42 UPRR Pemit Conv 184.0s1 147.31(331.370
43u CPRR Permit Conv 72,371 72.371
45
46 Ortho Business Actvitv 85,027 51.02i 136.054
17 Mittc. Work in ProgrBss
48 uE[rf tlrq nl,gulatrry lJolnm.
Ercensos (See oaoes 350 - 3511
49 TOTAL 81,406,921 86,083,253
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FERC FORM NO.2 (ED. t2€4)Page 233
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Name ol Kesponoenr
Avista Crorp.
INts FI(1) t(2t t
ilII IS:
lAn Original
IA Resubmission
UAIE OI F(EDON(Mo, Da, Yi)
0/,BU2OM
Year or Kepo[
Dec.31, 2003
MISCELISNEOUS DEFFERED DEBITS (Account 1EO)
1. Report below the particulars (details) called for conceming miscellansous defered debits.
2. For any defened debit being amortized, show period of amortization in column (a)
3. Minor item (106 of the Balance at End of Year for Account 186 or amounts less than $50,000, whichever is less) may be grouped by
classes.
Line
No.
Desoiption of Miscollaneous
Defened Debits
,el
Balance at
Beginning of Year
Ib)
Debits
(cl
CREDITS Balance at
End of Year
{ftaffisAmount
lel
1 Canadian GST Tax 95.4(N var 82.287 1 3.1 17
2
3 Nez Perce Forest 91,876 91.87€
4
5 ElecMc Network
6
7 MiscWork frers <$50.000 2fi.78 11.321 292,109
I Subsidiary Billinos 2.222.73t var 255,95,(1,966,783
I
10 Conservation
't1 Enhanced Low lncome Wzn 62.505 59.90!2.600
12 Orgoon Gas Comm Consvt 150.867 26.80{'177.675
13 Oreoon Shourcr Head 147.726 908 40.59i 107ju
14 Oreson Common Gas Eff 1't8.681 45.29.i 163.978
't5 WPNG HE Wf Hfs€reson 2ffi.737 17.751 286.496
't6 WPNG HE Fumaces 1.726.742 301.56i 2.028.309
17 WPNG CA RES UI.P -360.736 304.67(var -56.066
t8 WPNG OR Res Lor r'l 185.190 908 13.Ul 171,746
't9 Reoulatorv-Scfied 67 230.417 908 33,06i 197,350
20 Reo-Water Heat Conv 1.1E5.e[5 908 152.35t 1.033,287
2'.1 Reo-SoaceMater Con 4.766.'.t74 908 704,561 4.061.613
22 Reo-Elec Comrn/lnd 779,792 908 1 16.37:663.417
23 Reo-Gas Wzn Res 1.185_869 908 153.14I 1.032.724
24 Re+Ul Elec/Gas 398,209 908 49.73t v8.471
25 Reo-Elec Manuf Home 333,77€908 48.9&2U.7%
26 Reo-Comm/lnd Gas 135,82C 908 19.60('t16.220
27 Reo-Gas Res ADol Ef 't.610.614 908 204.17t 1.402.436
28 Reo-Gas Res Shorcrhead 137.611 908 55.(xi 82.564
29 Reo Elec,t Res Wzn 58.877 908 8.64:fi.2U
30 Reo Ul ElecWzn 95.94C 908 14.09(8'1.841
31 Res Elec Res Shwr s8.739 908 37.93:20.802
32 Reo Ci/l Elec Fuel 229,435 90E u,22i 't95,213
33 Reo GasA.E. Wtr 185,284 908 74.13(11.'t54uReo Low lncorne Gas Wzn 394,201 908 56,63 337.567
35 Care - Califomia 36,008 19,19(55.207
36 Consv. & Renemble Disoo 'r99,78(199.786
37 Sandooint DSR - PPL 853,74C 908 113.387 740.353
3E Gas Plant
39 Flamilbn Sfeet Bridoe Site -152.524 206.21i vat 53.693
40
41 Elecfic Plant
42 Post Falls No Channel Shrdv 50,991 50,991
43
44 Easy Pay Billino CS -303.425 165.53(-137.88S
45 Lake CDA lssues 321.992 28't.11i 603.105
46 Shareholder Larrsuit 2002 39.790 171.39(211j86
17 Misc. Work in Progrcss
48 rlelIEq N(,gulattrry IJ(,trlIIl.
Exoenses (See Daoes 350 - 351)
49 TOTAL E1,406,921 86,083,253
FERC FORM NO.2 (ED. l2€.f)Pago 233.1
Name ofRespondent
Avista Corp
Ihis Reoort Is:+(l) EI An original
(2) ! A Resubmission
Date of Report
(M, D, Y)
April30,20Ol
Year ofReport
Dec.31.2003
ACCUMULATED DEFERRED INCOME TAXES (A )COUNT 190)
l. Report the information called for below conceming 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 DI^]RING YEAR
Amounts
Debited to
Account 410.1
(c)
Amounts
Credited to
Account 4l l. I
(dt
I Account 190
2 Electric I1.862.009 2.6U.236 3.596.298
3 Gas t.907.787 3.3t2.557 (27.288
3.01
4 )ther (Define)
4.01
4.02
5 Iotal (Total of lines 2 thru 4)r3.769.796 5.9r6.793 3569.0r0
6 Other (Snecifv)23.825.508 t9t-682 685,608
6.0r Common
6.02
7 IOTAL Account 190 (Total of lines 5 thru 6)37,595J04 6,108,475 4,254,61E
8 3lassification of TOTAL
I Federal Income Tax 37.s9s304 6,108,475 4254,618
l0 State Income Tax
ll Local Income Tax
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FERC FORM NO.2 (12-98)Page234
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\lame of Respondent
Avista Corp
Ihis Reoort Is:
:rlftlen original
12)DA Resubmission
Date of Report
(Mo, Da, Yr)
April 30,2004
Year ofReport
Dec. 31,2003
ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT r90) (Continued)
$. Ifmore space is needed, use separate pages
r required.
5. In the space provided below, identify by amount
and classification, significant items for which
defened taxes are being provided. Indicate
insignificant amounts listed under "Other."
CHANGES DURING YEAR ADruSTMENTS
Balance at
End of Year
(kt
Line
No.
Amounts
Debircd to
Account 410.2
(e)
Amounts
Crcdited to
Account 411.2
(f)
Debits to 190 Credis to 190
Acct. No.
lol
Amount
thl
Acct. No
(i)
Amount
tit
tt9.203 0 236.U t.404.1 16 r1330.7s2 2
63,426 0 236.U 310.956 (1.8ffi.4401 J
254.tt 26,556 (26.ss61 3.01
0 4
0 4.01
0 4.02
182.629 0 0 1.741.628 9.497.7 56 5
(66-775 t3l.tc 5-562.634 29.8r5.293 6
219.0c 1,833,120 l.833,r20 6.01
2 r9.0c (6.923.783 (6,923,783)6.02
182,629 (6,775'47\nt LJ4t,628 34222386 7
t82.629 (6.715'47Lnt 1341.628 34222386 9
l0
I
FERC FORM NO.2 (12-98)Page235
Name of Respondent
Avista Corp.
This Reoort ls:(1) [An Original(21 f-lA Resubmission
uate or Keoon(Mo, Da, Yi)
od,t30t200/
Year oI Kepon
Dec.31, 2003
GAPITAL STOCKS (Account 201 and 2(N)
1. Report below the particulars (details) called for conoeming oommon and prefened stock at end of year, distinguishing separate
series of any general class. Show separate totals for common and prefened 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 referenoe to report form (i.e., year and
company title) may be reported in column (a) prcvided the fiscal years for both the 10-K report and this report are compatible.2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year.
Ltne
No.
Class and Series of Stock and
Name of Stock Series
(a)
NUmOer oI snares
Authorized by Chartet
(b)
Yaf OI UIilTEO
Value per share
(c)
Call Price at
End of Year
(d)
1 Account 201 - Common Stock lssued
2 No Par Value 200,000,000
3
4 TOTAL-COM 200,000,000
5
b
7 Account 2(X - Prefen€d Stock lssued 10,000,000
8
I
10 Cumulative
11
't2
13 TOTAL PRE 10,m0,000
't4
1
1€
17
18
tg
2A
21
22
23
24
.E
2e
27
28
23
3C
31
32
33
u
35
36
37
38
39
40
41
42
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FERC FORM NO.2 (ED. r2€r)Page 250
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Name ol t{esponoent
Avista Corp.
I nrs Herx)n ts:(1) EAn Origlnal(2) f-'lA Resubmission
Date of Reoort(Mo, Da, Yi)
ut30t2004
Year of Report
Dec.31, 2003
CAPITAL STOCKS (Account 20'l and 204) (Continued)
3. Give particulars (details) conoeming shares of any class and series of stock authoilzed to be issued by a regulatory commission
which have not yet been issued.
4. The identification of each class of prefened 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 of pledge.
OUTSTANDING PER BALANCE SHEET HELD BY RESPONDENT Line
No.r gtttwr Ir vuEEt tv[tg wtu rvu
for amounts held by respondent)AS REACOUIRED STOCK (Account 217)IN SINKING AND OTHER FUNDS
Dnares(e)Amount(0 SnarBs(q);ost(h)snares(i)Amount
0)
1
48,3,14,009 626.787,000 2
3
48,344.009 626,787,000 4
5
6
7
I
I
10
11
12
13
14
15
16
17
18
19
20
2'.1
22
23
24
25
26
27
28
29
30
31
32
33v
35
36
37
3E
39
40
41
42
FERC FoRfrl NO.2 (ED. r2{8)Page 25t
Name of Respondent
Avista Corp.
This ReDort ls:(1) fiAn Originat(21 f-'lA Resubmission
UAIB OI F(EIX''I(Mo, Da, Yi)
0/,t30t2004
Year oI Kepofl
Dec.31, 2003
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. lf any change occuned during the year in the balance in respect to any class or series of stock, attach a statement giving particulars
(details) of the change. State the reason for any charge-off of capital stock expense and speciry the account charged.
UIIE
No.
urass anq nenes (,I DKrcK
(a)
ElalancB ar Eno or Yeat
(b)
1 Sommon Stock - Public lssue 8,096,02S
2 Shares issued under provisions of Respondanfs Dividend Reinvestnent and Sbck Purchase Plan u2,145
3 Shares issued under provisions of Respondants Employee Stock Purchase Plan 74,839
4 lommon Stock -,+01k 215,137
5 bmmon Stock - Pedodic Offering Program (POP)599,758
6 86.95 Prefened Stod<. Series K 1,334,005
7 lommon Stock Split 187,872
6
9
10
11
't2
13
14
15
16
't7
18
19
20
21
22 TOTAL 10,949,795
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FERC FOR ll NO.2 aEO. l2{7}Paoa 2!i4h
This Page Intentionally Left Blank
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Name oI Kesponoent
Avista Corp.
I nls KeDOn tS:(1) EAn Orlginal(2', nA Resubmission
uate ot Kelxxr(Mo, Da, Yi)
ul30Doo+
Year or Kepon
Dec.31, 2003
L(,N(j- I Ef(M UEt I (AC@Unt 'ZZ"t, -ZZZ, -ZZ5 ano -ZZ4)
1. Report by balance sheet ac@unt the particulars (details) conceming long-term debt included in Accounts 221, iltnds,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 of the bonds.
4. For advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate
demand notes as such. lnclude in column (a) names of associated companies from which advances were received.
5. For receivers, cefficates, show in column (a) the name of the court -and date of court order under which such certificates were
issued.
6. ln column (b) show the principal amount of bonds or other long-term debt originally issued.
7. ln column (c) show the expense, premium or discount with respect to the amount of bonds or other long-term debt originally issued.
8. For column (c) the total expenses should be listed first for each issuance, then the amount of premium (in parentheses) or discount.
lndicate the premium or discount with a notation, such as (P) or (D). The expenses, premium or discount should not be nefted.
9. Fumish 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.
une
No.
uEss ano uenes or uolgaoon, uoupon t(iate
(For new issu6, give commission Authorization numb€rs and dates)
(a)
Principal Amount
Of Debt issued
(b)
Total expense,
Premium or Discount
(c)
1 Aicr,'221 - Bonds:
2 Secured lledium Term Notes $E00,000,000 695,000,00c 5,785,erc
3 (Premium)fi,220
4
Pollution Control Revenue Bonds:
6 6% Series due 2023 4,1fi),00c 345,385
Colstip 1999A due 2032 66,700,00c 2,182,462
(Premium)1,334,000
Colstrip 19998 tlue 2034 17,000,00c 565.288
1C (Pr€mium)340,000
11
1 SUBTOTAL 782,8m,00(10,602,995
1
14 A@f.222 - Reacquired Bonds
1
1€Acct. 223 - Mvances frorn Associated Companies 1,434,151
11
1 Acd.224 - Olher Longterm Debt
,|Series K Prefened Stock 35,000,00(2,0E9,391
2C Notes Payable - Banks (local) $225,000,000 2,U4,5W
21
22 Commercial Paper
23
24 Unsecured Senior Notes 400,000,00(9,128,000
2!(Oiscount)2,716,000
2e
27 [iedium Term Notes $1,(X)0,000,000 683,000,00c 6,197.873
28 (Premium)70.000
4 Lono Term Curent
30 Notes Payable to Various Parties
31 Prefened Trust SeqJrites 61.855,675 5,960,160
32 Prefered Trust Seorrities 51,547,000 3,633,783
33 TOTAL 2.015.636.82(43,242,702
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FERC FORM NO.2 (ED. 12€6) Page 2s5
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Name o' Respondent
Avista CoD.
This Reoort ls:(1) [lAn orisinal
(21 f-'lA Resubmlssion
Date of Report(iio, Da, Yr)
0/,t30t200d
Year ot Kepon
Dec.31, 2003
LONG-TEtIM L,EBt (Ac@unt iA1,ZZZ,-223 and ZZ4) (GonunueO)
10. ldentiff separate undisposed amountrs applicable to issues which were redeemed in prior years.
11. Explain any debits and credits othor than debited to Account 428, Amortization and Expense, or credited to Account 429, Premium
on Debt - Credit.
12. ln a foohote, give explanatory (details) for Accounts 223 and 224 ol nel changes during the year. With respect to long-term
advane€s, show for each company: (a) principal advanced during year, (b) interest added to principal amount, and (c) principle repaid
during year. Give Commission authorization numbers and dates.
13. lf the respondent has pledged any of its long-term debt securities give particulars (details) in a footnote 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). Erylain in a fuotnote any difference between the total of column (i) and the total of Account427, interest on
Long-Term Debt and Account 430, lnterest on Debt to Associated Companies.
16. Give particulars (details) conceming any long-term debt authorized by a regulatory commission but not yet issued.
Nominal Date
of lssue
(d)
Date of
Matlrity
(e)
AMORTIZA]ION PERIOD vuEEItutItg(Total amount outstanilins without
reduc{ion for amounts held byresp?flfent)
lnterest for Year
Amount(i)
Jne
No.Date From
(o
Date To
(o)
,|
343,500,00(23,245.43e 2
3
4
5
12t18t1984 1!O1nO14 'tz1u'tgu 1?,01t2014 4,100,00(246,00(6
9/01/1999 10101t2032 9/01/'t999 10to112032 66,700,00(3.335.00C 7
8
9/01/'r9$)3lo'v203/.9/01/1999 3to1l20u 17,000,00(871,25C 9
10
11
431,300,00(27,697,68€12
13
14
15
1,434,151 16
17
1
9/1y1992 9t15r'20o7 9t15r2 9115t2007 31,500,(xx 926,14t 19
80,m0,00(1,875,425 20
2'l
22
23
u0312001 d0'il2008 4t03t2001 6/01/2008 317,682,66'32,278,fi3 24
25
26
147,350,00(14,0E6,472 27
28
29
30
x1t23t1997 o'v't5t2037 01131t1997 12t31t2036 61,855,67t 4,871,1U 31
)6/0u1997 06101t2037 06/30/1997 o5t31t2037 51,547,00(1,120,911 32
1,122,ffi9,4E7 82,856,279 33
FERC FORM NO.2 (ED. 12€6)Page 257
Name or Kesponoent
Avista Corp.
This Reoort ls:(1) E]An Orisinal
(21 nAResubmission
uar3 (,T F(eIx)[
(Mo, Da, Yi)
0/,Bonoo/
Year or Kepon
Dec.31, 2003
RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
1. Report the reconciliation of reported net income for lhe lrear with taxable income used in computing Federal income tax accruals and shor
computation of such tiax accruals. lndude in the r€conciliaton, as far as pracffcable, the same detail as fumished on Schedule M-1 of the tax retum tor
the year. Submit a reconciliaiion even though there is no taxable income for the year. lndicate clearly the nahrre of each reconciling amount-
2. lf the utillty is a member of a grory whicfi files a consolidated Federal tiax retum, reconcile reportBd net lncome with taxable net income as if a
separato rot m u,€rB to be field, indicating, horever, inlercompany amounts to be eliminated in such a consolidated refum. State names of grorp
member, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated trax among the group memberc.
3. A substfute page, designed to meet a particular need of a company, may be used as Long as the data is consistent and meets the requir€monts of
the above instructions. For electronic reporting purposes complete Line 27 and provide the substitute Page in the context of a footnote.
-trtENo.
Particulars (Details)
(a)ruIlgunt(b)
1 {et lncome for the Year (Pag€ 117)u.5u.252
2
3
4 laxable lncome Not Reporied on Books
5 4,%8,277
6
7
8
9 )educlions Recorded on Books Not Deducted for Refum
10 81,079,648
11 ;ederal lncome Tax 22,001,665
't2 )efened lncome Tax 3,648,713
13 nvestnent Tax Credit 49.30E
11 ncom6 Recorded on Books Not lncluded in Retum
15
16 :quity in Sub Eamings (lncome) / Loss -9,156,784
't7
18
19 )educlions on Refum Not Charged Against Book lncome
20 {8,791,6et
21
2
23
24
25
26
27 :ederal Tax Net lncome 62,861,898
2A thow Computation of Tax:22,001,665
29 i2,861,E98 x .35 = 22,001,664.30
30
31
32
33u
35
36
37
38
39
40
41
42
43
4
4.677.099
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Name of Respondent
Avista @rp.
This Reoort ls:(1) [An Orisinal(21 nA Resubmission
Date of Report(Mo, Da, Yr)
06,t30t200/
Year of Report
Dec.3.t, 2003
TAXES AGCRUED, PREPAID AND CHARGED DURING YEAR
1. Give pardqrlars (details) of the combined pnpald and accrued tiax accounts and show the total taxes ctrarged to operations and other accounts during
the year. Do not indude gasoline and other sales bxes wtricfr have been charged to the accounts to vifiich the traxed material was charged. lf the
actual, or ostimated amounts of sucfi taxes are knor, show the amounts in a foohote and designate whether estimated or actJal amounts.
2. lndude on this pagp, taxes paid during the lrear and charged direct to fnal ac@unts, (not cfia.ged to pr€paid or accrued traxes.)
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes.
3. lnclude in @lumn (d) tax€s charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts credited to ptoportions of prepald taxes cfiargeable to cunent ),ear, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prcpaid tax accounts.
4. List the aggregate of eacfi kind of tax in sucfi manner that the total tax for each State and suMivision can readily be ascertrained.
-tItg
No.
KInd of Tax
(See lrctruction 5)
(a)
BATANCE AT BEGINNING OF YEAR I axesCharoedql#ls
(d)
'F5rf,
vJ}ls(e)
Adjust-
ments
(f)
raxeE AQcru€o(Account 236)o)
rtBoalo taxes(lnclude ln Account 1651
1 FEDEML:
lnconre Tax (19891996)-587,439
lncome Tax (1997)
lncome Tax (1998)-37,912
lncome Tax (1999)-938,867 -1,657,038 -738,061
lncorneTax (2flD)7.097.90r 2.977.090
lncome Tax (2001)-53,215,6E4
lncome Tax (2002)il.*3,426 5.902,269
lncome Tax (2003)22,001,66(-13,036,920 -{0,703,033
1(Unemployrnent lns 2003
11 FrcA (2002)2,594 -2.594
12 FrcA (2003)9,165,37(9,167,363 2,5U
't:Retained Eamings-ESOP
14 Retained Eamings-ESOP
I Retained Eamings-ESOP €E5,066 738,061
1€Retained Eamings-ESOP 419.065
17 Retained Eamings-ESOP -141,026
1€Retained -'t39,205
1!Retained -221,742
2(Total Federal 5,679,657 30,915,29,(3.352.7il 40,703,033
21
Z/STATE OF WASHINGTON:
zl Propeily Tax (2{D0 & Prior)485,66C -19,48,{
24 Property Tax (2fi)l)-57,614
2t Poporty Tax (2002)9,964,632 -1.247,131 E,717,350
21 Property Tax (2003)9,94E,00(
21 Excrse Tax (2@1)329,41€
2t Excise Tax (2002)1,645,677
,<Excise Tax (2003)'t7,021,4U 16,849,875
3(Gas Surchargo 1,731 8,434
31 Unemployrnent lns. (2001 )
3i Unomployment lns. (2002)
3:MobrVehide (2002)
u Motor Vehlde (2003)1,671 't,671l
3t Total Washington 12,367,Ct1 25,706,191 25,577,330
3(
3i STATE OF IDAHO:
3t lncqne Tax (1997-2000)855,431 -125,707
3S lncome Tax (2001)-3,085,967
4C Income Tax (2002)749,501
4'.1 TOTAL 22,522JE;,93.152.43 65.7il.731 40,678,82t
FERC FORil NO.2 (ED. 12€6)Page 262
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Name of Respondent
Avista Corp.
I nts F(eoon ts:(1) [An Original
l2l f-'lA Resubmission
uare or t(eoon
(Mo, Da, Yi)
0/,t30t2004
Year or Kepon
Dec.31, 2003
TA)GS ACCRUED, PREPAID ANt CHARGED DURING YI aAR (Continued)
5. lf any bx (exclude Federal and State income taxes| covers more then one year, sho,v the required information separately for each tax year,
identiffing the year in column (a).
6. Enter all adjusEnents of the accrued and prepaid tax acrounts in column (f) and explain each adjustnent in a foot- note. Designate debit adjustments
by parentheses,
7. Do not indude on this page enkies with respect to defened income traxes or taxes @llected through payroll deduc.tions or othenvise pending
transmittal of sucfi tiaxes to the taxing authority.
8. Report in olumns (i) thro€h (l) how the taxes were distributed. Report in column (l) only the amounts cfiarged to Accounts 408.1 and 409.1
pertaining to electric operations. Report in cdumn (l) lhe amounts charged to Accounts 408.1 and 109.1 p€rtaining to other utility departments and
amounE charged to Accounts 408.2and 409.2. Also shorvn in column (l) the taxes charged to utility plant or other balance sheet acoounts.
9. For any tax apportionetl to more than one utility department or account, state in a foohote the basis (necessity) of apportioning such tax.
BALANCE AT r)F YEAR IJItiIT(ItiuTI()N (.)F CHARGED Line
No.(Iaxes acoued
Accoynl 236)
i'repalo raxes
(lncl. in lf,iount 16s)(Account 408.1, 409.1)Exraoroinary ltems(Accoufit 40e.3)
rututuIEItE t9 nEl.iamlngs (Account 439:(k)
Other
fl)
I
-587,439 2
3
-37,912 4
-19,890 E
4j20,811 6
-53,215,684 7
49.81.157 I
-5,681,,148 23.2U.W -1,282,898 9
10
11
601 9,165,370 '12
13
14
-r47,005 15
-419,065 't6
-141.02Q 17
-139,205 18
-221,742 -221,742 1S
-7,430,U7 23.28/,W 7.660,730 20
21
2
466,176 128,213 -147,697 23
-57,614 24
143 -1,142,637 -104.500 25
9,948,0m 7,778,ON 2,170,000 26
329,/+16 27
1,ets,E77 28
171,529 11,659.421 5,361,9E3 29
6.697 1.737 30
31
32
33
1,671 u
12,496.830 't8.422.997 7.2&t.194 35
36
37
981,1 38 3E
-3,085,967 3S
749,501 40
9,241.05s 67.187,95t)25,ger,461 41
FERG FORM NO.2 (ED. 12-95)Page 263
Name or Kesponoenr
Avlsta Corp.
I nrs(1)
(21
(eoon Is:
EIAn Original
-A Resubmission
uate oI KeDofr(Mo, Da, Yi)
0/,tS0no04
Year or Keporl
Dec.31, 2003
TA)GS ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and acdued tax accounE and shoi/ tho total tiaxes charged to operations and other accounts during
the year. Do not include gasoline and other sales taxes wtricfr have been charged to the accounb to wtrich the taxed material was charged. l, the
actral, or estimated amounb of sucfi taxes are knoy, shw the amounts in a foohote and designate whether estimated or actual amounts.
2. lndude on this page, taxes paid during the year and cfiaryed direct to final accounE, (not chargp<l to prepaid or accrued taxes.)
Enter the amounts in both columns (d) and (e). The balancing of thls page is not affected by the inclusion of these taxes.
3. lndude in column (d) taxes charged during the year, taxes cfiarged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts qedited to prcportions of prepaid taxes chargeable to cunent y6ar, and (c) taxes paid and cfiarged direc't b operations or ac@unts other
than accru€d and prepaid tax acoounts.
4. List the aggregate of eacfi kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
JtN'
No.
Kind of Tax
(S€e insfudion 5)
(a)
BAIINGE AT BEGINNING OF YEAR tilesCharoed
qrJns
(d)
'ffi
?'d]ls(e)
Adjust-
ments
(0
I axes Aocruoo(Account 236)(b)
PreDaio I axes
llndude in Account 165)
I lncorne Tax (2003)705,59:428,090
2 PropedyTax (2m0 & Prior)-383 -251,173
Property Tax (200'l)47
4 Property Tax (2002)2.565,970 2,574,037
Property Tax (2003)5,427,4*2,724,0U
6 Exclse Tax (2fiX))€,056
Excise Tax (2001)-5/.,473
8 Excise Tax (2002)-7,135 616
o Excise Tax (2fl)3)86,20:76,340
1(Unemployment lns. (2003)
11 irobr Vehicle lns. (2003)2.Ut 2,U8
1i lrigEtion Credits (2002)21 5,751
1:lO/t/H Tax (2002)41,fl2 -14,954 26,il7
14 KWH Tax (2003)398,79:332,78S
't!Francfiis€ Tax (2002)632.882 426,254 1,141,72'.l
1t Franchise Tax (2003)2,3/.5.44(1,615.(N€
't1 Total ldaho 1,689,31S 9,'t25,724 8,801,282
IT
't(STATE OF MONTANA:
2(lncome Tax (19962000)615,757
21 lncome Tax (2001)1.186.912
z lncome Tax (2002)69,98€
2l lncome Tax (2003)384,870 378,554
24 Properly Tax (1999)-93,65i 86,571
2l PropertyTax (2000)-46.1 14
2t PoperVTax (2@1)1,454
21 Pope.ty Tax (2002)2,984,50C 2,978,986
2t Property Tax (2003)6.139,7(N 3,075,236
4 Unemployment lns (2002)
3(KWHTax(2(X)2)20/,574 1,428 206,0O2
31 KWH Tax (2003)1.072.53e 837,363
5l lrrotor Vehicle (2003)1,461 1,461
33 Consumer Council Tax 64!2,101
3{Public Cornmission Tax 86S 875
ea Total illontana 2,549,590 7.688.0Et 7,480,578
3€
3i STATE OF OREGON:
3t lncome Tax (1995)-24,207 24,207
3t lnorne Tax (1999)214,635
4C lncorn€ Tax (2(rc0)-15E,9r6
41 TOTAL 22.522.181 93,152,431 65,7il,731 40.678.82e
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FERC FORM NO.2 (ED. 12€6)Page 262.1
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Name ol Respondent
Avista Corp.
Tnis Reoon ls:(1) EAn Original(2) nA Resubmission
Date ol Reoon(Mo, Da, Yi)
0/,ISODO04
Yoar ol Repon
Dec.31, 2003
IAXEU AUUTTUEU, PTTEPAIL' AND (;FIAfT(,ED L'URING YI:Aft (gontnued)
5. lf any tax (exclude Federal and State income taxes! covens more then one year, shor the required information separately for eacfi tiax year,
identlfylng the year in column (a).
6. Enter all adjustnents of th6 accrued and prepaid tax accounts in column (0 and explain each adjustment in a foot- note. Designate debit adjusbnenb
by parentheses.
7. Elo not include on this page entrles with respect to defened income tiaxes or taxes collected through payroll deductions or othenrise pending
fansmittal of sucfi taxes to the taxing authority.
8. Report in columns (i) through (l) how the taxes rvere distributed. Report in column (l) only the amounts cfiarged to Accounts 408.1 and 409.1
pertaining to elecfic operations. Report in column (l) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments and
amounts ctrarged to Accounts 4O8.2 and 409.2. Also shom in column (l) hs 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 foohote the basis (necessity) of apportioning such tax.
I,ALANCE AT ) OF YEAR DISTRIBUTION OF (]HARGFD Line
No.(r:ues accrueo
Accofl23)G)
Pnaparo raxes
(lncl. in Account 165)
Electic(Account 408.1, 409.1)
Exhaordinary ltems
(Account 409.3)
AOtUSUTtent,S tO F(eL
iamings (Account 439)(k)
Other
fl)
277,fi3 705,593 1
-251,556 -18,155 -233,018 2
47 3
{,067 4
2.703.492 4.558.200 869,296
€,05€
-il,473
-7,751
9,863 4,118 E2,085
1
2,048 11
-5,730 21 1
-1.1,955 13
66,004 398,793 14
€2,585 299,306 126.948 15
730,394 1.54r,806 780,634 16
2,013,757 6,792,1U 2.333.586 't7
18
19
615,757 20
1,186,912 21
69,988 22
6,316 384,870 23
-7,086 E6,571 24
-46,1 14 25
1,4il 26
5,514 27
3,064,468 6,139,704 28
29
't,428 30
235,173 1,072,536 31
't.461 32
-'t,452 e$9 33
€E69 34
2,757J00 7,30't,757 386,331 35
36
37
38
214,635 20
-158,916 40
9,241,055 67,1E7,95{)25.9e1,48'l 41
FERC FORM NO.2 (ED.12€6)Page 263.1
Name ol ltospondent
Avista Corp.
This Reoort ls:(1) E]An Orlginal(2't f-'lA Resubmission
Date ol Remrt(Mo, Da, Yi)
0/,t30i200/.
Year or Kepon
Dec.31, 2003
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Gi\re particr.llars (details) of the combined prepaid and aocrued tax accounts and sho^, th6 total taxes cfiaryed to operations and other accounts during
the year. Do not include gasoline and other sales taxes wtrich have been clrarged to th€ accounts to wtich the taxed material was charged. lf the
achJal, or estimated amounts of sucfi taxes are kno,v, sho,v the amounts in a footnote and designate whether estimated or aclual 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 amountrs in both columns (d) and (e). The balancing of this page is not affected by the lnclusion of these traxes.
3. lnclude in oolumn (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accn ed,
(b)amounts credited to proportions of prepaid taxes chargeable to qrnent year, and (c) taxes paid and ctrarged clirecl to operations or ac@unE other
than accrued and prepaid tax accounE.
4. List the aggregate of each kind of tax in sucft manner that the total trax for eacfi State and subdivision can readily be ascertained.
-u rE
No.
Kind of Tax
(See instudion 5)
(a)
BALANCE AT BEGINNING OF YEAR I4ESCharo€d
v#ls(d)
,F5fiF
q8tls
(e)
Adjust-
ments
(fl
Iaxelt Aocrued(Account 236)(b)
rtEgatq I aIEU'lndude in Account 165)(c)
lncome Tax (2001)-854,485
lncome Tax (2002)216,117
lncome Tax (2003)160,362 140,209
Property Tax (1 99$2000)55,143
P]opery Tax (2001)20,499
Proprty Tax (2002)471,442 411,38i
Prcperty Tax (2003)1,26E,3{!2,il2,695
Unemployment lns. (2003)
Motor Vehide (2003)1,277 1,277
1(Busn Energy Tax Credit 414,235
t'l Busn Energy Tax Crcdit -34,243
12 Busn Energy Tax Crodit -55,790
't:Busn En€rgy Tax Credit 63,E8t
't4 Fran€hise Tax (2002)221,428 277,2X 614,682
1!Francfiise Tax (2003)1,793,43C 1,578,524
1t Total Oregon -1,285,496 3,868,20€4,877.387 24,207
,|
1 STATE OF CAUFORNIA
1 lncome Tax (199G2000)1*,423
2e lncome Tax (2001)-'t42,429
21 lncorne Tax 2002 26,863
22 lncorne Tax 2003 32,074 49,132
23 Property Tax (1999)124,479 -1 -l
24 Propedy Tax (200G2001)3,90€-5,35€
25 Property Tax (2002)-s3,sff 60,336
26 Property Tax (2003)57,2d 114,533
21 Exdse Tax (199s,2000)-2,16:r
2t Excise Tax (2001 )-u
2l Frandrise Tax (2ffi2)557,747
3(Francfiise Tax (2003)329,87t 390,726
31 Calibmia PUC Tax -137
C/Calibmia Gas Surcfiarge
3i Calibmia Use Tax 516 516
3,(Total Caliiomia 676,806 474,713 554,769
3!
3t STATE OF ARIZONA:
3i lncom€ Tax (2001)4,226 4,901
3r Total Arizona 4,226 4,901
2C
4C
41 TOTAL 22.s22.183 93,152,431 65.7il.73i 40.678.821
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FERC FORM NO.2 (ED. 12€6)Page 262.2
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Name or Kesponoent
Avista Com.
I nls ](eO(Xr tS:(1) E]An orisinal
l2t f-'lA Resubmission
uale or Keoon(Mo, Da, Yi)
ut30t200/
Year or Hepon
Dec.31, 2003
TA)GS ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued}
5. lf any tax (exclude Federal and State income taxes)- covers more lhen one year, show the required information separately tor each tax year,
identifying the y€ar in column (a).
6. Enter all adjustn€nb of the accruod and prepaid tax accounts ln column (0 and explain each adjusbnent in a foot- note. Designate debit adjustments
by parenthes€s.
7. Do not indude on this page entries with respect to debned in@me traxes or taxes collected through payroll deduc-tions or otheruise ponding
fansmittal of sudr tiaxes to the taxing auhority.
8. Report in columns (i) through (l) ho , the bxes were disfibuted. Report ln column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to eleclric operations. Report in column (l) the amounts cfiarged to Accounts 408.1 and 109.1 pertaining to other utility departments and
amounts charged to Accounts 408.2and 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 (necassity) of apportioning such tax.
BALANCE AT r)F YEAR DISTRIBUTION OF TAXES CHARGED Une
No.(faxes accn ed
Accolnf 236)
t lBparo r axes
(lncl. in lf,funt 165)
EtBCmC(Account 406.1, 409.1 )fl)
Ext aorlinary ltems
(Account 409.3)
rutusullgltE u [tst.
iamings (Account 4391(k)
Other
(l)
-854,485 1
216,117 2
20,153 160,362 3
55,143 4
20,499
60,05s 411,387 €
-1,254,350 695,082 593,263
1,277
4'.t4,235 1
-v,24 11
-55,790 1
63.E85 -63,EEs 't3
-1 15,964 277,290 14
214,906 1,793,430 1
-2,270,471 695,082 3,173,124 16
17
18
158,423 1g
-'t42,429 2A
26,86it 2'.|,
-17,056 32,074 a
128,479 1 23
-1,452 -5,358 24
6,3s0 60,336 qE
-57,265 57,268 2C
-2,163 21
-34 2t
557,747 2e
60,647 329,878 3C
137 31
5t
516 33
596.751 474,7'.t3 a
.E
3f
-9,127 37
-9,127 3t
2C
4C
9,241.055 67,187,950 25,941,481 41
FERC FORM NO.2 (ED. 12€6)Page 263.2
Name or KesPonosnl
Avista Corp.
tnE(1)
(2t
(€oon ts:
E]An Originat
nA Resubmission
Date of Report(Mo, Da, Yr)
0/,t30t200d
Yoar of Reportp66.31, 2003
TA)(ES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give parti@lars (details) of the combined pr9paid and accnred tax ac@unE and show the total taxes chargpd to operations and olher accounts during
the year. Do not indude gasoline and other sales taxes whidr have been cfiarged to tfie accounts to wfilch the taxed material was charged. lf the
ac{ual, or estimated amqrnb of sucfi taxes are kno,v, show the amounts in a foohote and designate whether eslimated or acfual amounts.
2. lndude on this page, taxes paid during the year and cfiarged direct to final accounts, (not charged to prepaid or accrued taxes.)
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the indusion of these tax6s.
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)amounb credited to proportions of prepaid taxes chargeable to cunent year, and (c) taxes paid and cfiarged direct to operations or ac@unts other
than accrued and prepaid tiax accounts.
4. List the aggregate of eacfi kind of trax in such manner that the total tax for each State and subdivision can r€adily be ascertiained.
-lnc,
No.
Kind ofTax
(See lnstsuc{ion 5)
(a)
BALANCE AT BEGINNING OF YEAR I aIESCllarged
v#le(d)
'FTffi
v#ls(e)
Adjust-
ments
(0
Ia(es Accrueo(Account 236)o)
rreDarc taxes
llndude in Account'165)
1 STATE OF TEXAS
Unemployment lns (2003)
Total Texas
4 STATE OF KENTUCKY
Unemployrnent lns (2003)
€Total Kenfud<y
STATE OFVIRGINIA
€Unemployment lns (2003)
c Total Virginia
10 STATE OF WYOMING
11 Unemployment lns (2003)
12 ToEl Wyoming
13 STATE OF FLORIDA
14 Unemployrnent lns (2003)
15 Tobl Florida
16 STATE OF NEW YORK
'ti Unemploynent lns (2003)
1t Total New Yorfi
'tt
4 COUNTY & MUNICIPAL
21 Ocanpaton 848,569 15,414,21t 15,070,666
zt Fonest Fire Protection
z:Grsenacres lnlgatlon
24 Clty of Spokane PBIA 858
2!WA Dept of Natural
2t Spokane Utility Tax 17,97(17,765
27 Misc.-7 €7,96('t6,432
2t,Total County E4E,562 15,U4,219 15,105,721
2S
3(STATE OF ILLINOIS
31 Unemployment lns.2fl)3
5Z Total lllinois
33 STATE OF UTAH
34 Unomployment |ns.2003
2!Tobl Utah
3€
37
3€
3g
4C
41 TOTAL 22,5221A4 93,152,431 65,7il,732 -40,678,82(
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FERC FORM NO.2 (ED. t2{6}Page 252.3
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Name of Respondent
Avistra Corp.
This Reoort ls:(1) EAn Orisinal
(21 nA Resubmission
uale oI Kepon(Mo, Da, Yr)
ut30t2004
Year or xepon
Dec.31,2003
IAXtsU AgUKUEU, PItEPAIU ANU UHATtSEIJ UUITING YTnR (uonunueo)
5. lf any tax (exclude Federal and State income tiaxes! @vers more then one year, sho,v the required lnformation separately for each tax year,
dentifying the year in column (a).
5. Enter all adjustrnents of the accflred and prepaid tax accounts in column (0 and explain each adjustment in a foot- note. Designate debit adjustments
)y parentheses.
7. Do not indude on this page entries with respect to defened income taxes or taxes collected through payroll deductions or otherwise pending
hansmittal of sucfi taxes to the taxing authority.
3. Report in columns (i) through (l) horr the tia:<es were distributed. Report in column (l) only the amounts charged to Accounts 408.1 and 409.1
pertaining to electric oporations. Report in column (l) the amounts charyed to Accounts 408.1 and 109.1 pertaining to other utility deparfrnents and
lmounts cfiarged b Accounts 408.2 and 409.2. Also shown in column (l) the taxes charged to uUllty plant or other balance sheet accounts.
9. For any bx apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
BAI-ANCE AT END OF YEAR DISTRIBUTION OF T CHARGED Line
No.Cfaxes accnied
Accotnl 236)
Prepaid Taxes
(lncl. in Account'165)Electic(Account 408.'1, 409. 1 )
Extraordinary ltems
(Account 409.3)
AOtUSUrenr,S t(' rr(et.
iamings (Account 439)(kt
Other
fl)
1
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
1
1
2C
1,192,123 10.712Affi 4,701,78 21
22
z:
-8s8 24
25
205 17,970 26
-1U,408 -39,014 .48,955 27
1,0E7,062 10,691,416 4,6s2,803 28
29
30
31
32
33
34
35
36
37
3E
20
40
9,241,055 67,187,950 25,964,4E1 4',|,
FERC FORM NO.2r (ED. {2{6)Page 263.3
Name of Respondent
Avista Corp.
I nis rteff)n ls:(1) EAn Original(21 l-'lA Resubmission
Date ot Repon(Mo, Da, Yr)
04t30t2004
Year of tteport
Dec.31, 2003
ACGUMULATEI' DEFERRED INVESTMENT TAX CREDITS (ACCOUNI 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utility and
nonutility operations. Explain by footnote any corection adjustments to the account balance shown in column (g).lnclude in column (i)
the average period over which the tax credits are amortized.
lne
No.subdi;fions
Earan?v l'egrnnrng
(b)
Defened for Year AtrUEUUTIS UCurrent Yea/s lncome Adjustments
(s)A@UII t\O.(c)Alt(,uItl(d)AUUUUIIT T\9.(e)Atnount(fl
So/o
tYo
7o/o
1Oo/o
rOTAL
1 3as Propertry (10%)669,57€141'.1.40 49,30r
I
1 rOTAL PROPERW 669,576 49,301
1
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21
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24
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FERCFORM NO.2 (ED. l2€9) Page 266
Name or Kesponoenl
Avista Corp.
I nts K€Ixrn ts:(1) EAn Original(2) f-'lA Resubmission
uate ot ReDon(Mo, Da, Yi)
u/30/20M
Y6ar or Kepon
Dec.31, 2003
ACCUMULATED DEFERREO INVESTMENT TAX CREDTTS (Account 255) (conunu
Balance at Endof Year
{ht
Averao€ Fenooof All-ocation
to lncom€fi)
ADJUSTMENT EXPI-ANATION Ltne
No.
1
2
3
4
6
7
I
620,268 10
't'l
620,26 12
13
14
't5
16
'17
18
19
20
21
22
23
24
25
26
27
2A
29
30
31
32
33u
35
36
37
38
39
40
41
42
43
44
45
46
17
48
FERC FORM NO.2 (ED. l2{9)Page 267
Name ot Respondent
Avista Corp.
t nls Kelx)n ls::l)B An Original
:2)f] A Resubmission
Lrate oI Kepon
'Mo, Da, Yr)
April 30, 2004
Y ear oI Kepon
Dec. 31,2003
MISCELLANEOUS CT RRENT AND ACCRLJED LIABILITIES (Account 242)
l. Describe and report the amount of other current and 2. Minor items (less than $100,000) may be grouped
accrued liabilities at the end ofyear. under approprate title.
Line
No.
Item
(nl
Iralance at
End of Year
(b)
2
3
4
5
6
7
8
9
l0ll
t2
r3
l4
l5
l6
t7
l8
l9
20
2t
22
23
24
25
26
27
28
29
30
3l
32
33
34
35
36
37
38
39
40
4t
42
Mrsc. LraD -- Mar$n uau ueposl[ z4z.u)
Hamilton St. Bridge (Gas Plant) Accrual 242.10
Audit Expense Accrual 242.20
FERC Administrative Fee Accrual 242.30,242.31
WIITC Fee Accrual 242.40
Non-monetary Power Exchan ge 242.50
Misc. Liab -- Transmission Deposis 242.51
Payroll Equalization 242.70
Demand Side Mgmt TariffRider 242.71,72,73,74
ESOP40l-KPlan 242.75
low Income Energy Assistancc 242.76 &242.77
Califomia Commission Fee 242.78
OR Gas Limited [ncome (LIRAP) 242.79
Workers Compcnsation Reg Liab 242.83
IY,UUU,UUU
985,909
25,000
t,o24,554
0
t76,Ot9
937,000
8,447,772
(5,967,478)
72,824
r,803,220
t4,537
67,t68
1,688,889
43 rOTAL 28-275-414
FERC FORM NO.2 (ED. 12-86)Page 268
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O FERc FoRM No.2 (ED. i2-e4) Pase 269
oo
Name of Respondent
Avista Corp.
I nls KeOOn tS:(1) E]An Original(2t nA Resubmission
UAte OI KEDON(Mo, Da, Yi)
ul30t2004
YOar oI t(epon
Dec.31, 2003
OTHER DEFFERED CREDITS (Account 253)
l. Report below the particulars (details) called for conceming other defened credits.
2. For any defened credit being amortized, sho| the p€riod of amortization.
l. Minor items (5% of the Balance End of Year for Account 253 or amounts less than S10,000, whicfiever is greater) may be grouped by classes.
-ine Description and other
Defened Credits
(a)
Balance at
Beginning of Year
(b)
DEBITS
Credits
Ie)
Balance at
End ofYear
(fl
No.Conba
Account(c)
Amount
(d)
1 Uneamed lnterest - Customer
2 wiring & conversions 253.00 8,05!419 't4,938 9,231 2,352
3
4 Defened revenue prepayment -
5 Pacifi c Walla Walla/Enterprise
6 Amort = 19yrs 253.08 60,91t 456 9,372 5'1,546
7
8 CIT Oper Lease 253.09, 9/2006 931 19,63t 127.ilt 108,011
I
10 BPA C&RD Receipts 253.10 65,70C 394,20(394,38t 65,880
11
12 Trust Fund - CenFalia 253.11 E90,41t 1E6 1,553 4,224 893,089
13
't/l Rathdrum Retund 253.12 577,79t 550 33,821 543,976
1 Amort =25 years, though 112020
1€
17 Supplemental Exeqrtive 12,541,39€426,228 1.363.36i 2,023,35t 't3,201,395
t€Retirement Plan 253.29
1€
2C Gain on Sal6 and leaseback 2,353,1fi 985 261,451 2,091,e$
21 of Building (Amortization periocl
22 is 25 years) 253.85 & 253.86
23
24 lD Clark Fork Relicensing 253.89 -391.34(419 538,01{511.824 417,il3
25
26 Defered Comp. 2a?.90,91,92 11.il7.78(131.930 1.322.4*1,661,50t 12.206,789
27
28 FASS Mark to Market 253.95 1.951.57S 186.557 34.975,34t 38.2E5.172 5.261.406
29
30
31
32
33u
3s
36
37
38
39
40
41
42
43
44
45
46
47 TOTAL 29,705,406 38,934,20i 43.237,U6 34,008,549
Name or Kesponoenr
Avista Corp.
r nls Keoon Is:(1) []An Odsinal(21 f-'lA Resubmission
Date of Report(Mo, Da, Yr)
ut30t20o4
Year of Report
Dec.31, 2003
AI.^'UMUU\ I EU UEFFEXEU INUUME I A'(EU . (J I HtsH PI((JIJET{ I Y IACCOUNT ZUZ}
l. Report the information called for below conceming the respondent's accounting for defened income taxes rating to property not
iubject to accelerated amortization
l. For other (Specify),include defenals relating to other income and deductions.
ine
No.
Account
(a)
Balanco at
Beginning of Year
(b)
CHANGES DURING YEAR
Amounts Debited
to Account 410.1
(c)
Amounts Credited
to Account 411.1
(d)
Elecfic 166,886,421 5,7E6,34t
Gas 36,997,49f 3,097,793
General Common 11,713,914 -819,604
TOTAL (Enter Total of lines 2 thru 4)215.597,83[8,041,537
Non-operating 2,391,67!3,29S
TOTAL Account 282 (Entor Total of lines 5 thru 217,9E9,70t 6.067.E3r
11 Federal lncome Tax 211,443,45a 7.248,*(
1 State lncome Tax 6,546.24t 819,29?
1 Local lncome Tax
NOTES
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FERC FORM NO.2 (ED.12-96)Page 274
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a
Name ot Hesponoent
Avista Corp.
tnls Keoon ts:(1) fiAn Original(21 f-lA Resubmission
Date of Reoort(Mo, Da, Yi)
0/,t30n004
Year of Report
Oec.31, 2003
AUUUMULA I EU UEFEKKEU INUUME I AAEIi . (J I HEI{ PR(JPts1{ I Y (ACCOUNT 2E2I (C;ONIiNUEdI
3. Use footnotes as required.
CHANGES DURING YEAR ADJUSTMENTS
Balance at
End ofYear
(k)
Line
No.
Amounts Debited
to Account410.2
(e)
Amounts Credited
to Account 411.2
(f)
Debits Credits
ACCOUnT
Credited(s)
AmounI
(h)
Ac@unt
Debited
fi)
AmounI
0)
t36.00 26,1U,24 198.857.05'2
:36.00 7.807.79:47,903,081 3
136.00 4,971,67.15,865,98i 4
38,963,751 262,626,'.tt 5
2,395,',17 6
7
I
38,963,75t 26E,021,29 9
21E,691,991 1'.|
7,365,54:12
13
NOTES (Continued)
FERC FORM NO.2 (ED. 12{6)Page 275
Name or Kesponoenl
Avista Corp.
This Reoort ls: I Date of Reoort(1) [An Orisinal | (tvlo, Da, Yi)
(21 nA Resubmission I Ml3Ot2O0/.
Year of Report
D6c.31, 2003
AUUUMULA I LU L'EFFEf(EI] IN(;()ME TAXES . ()THET< (ACOOUNI 283}
1. Report the information called for below conceming the respondent's ac@unting for defened income taxes relating to amounts
recorded in Account 283.
2. For other (Specify),include deferrals relating to other income and deductions.
-lne
No.
Account
(a)
Balance at
Beginning of Year(b)
CHANGES DURING YEAR
Amoun[s Lreotteoto Account 410.1(c)
Amounut ureolleoto Account 41't.1(d)
Elecbic 123,350,947 6,650,79i 508,35(
TOTAL Elecbic Ootal of lines 3 thru E)123,350,947 €.6s0.79i 508,35€
11 Gas 5,507,17E -2,096,821
It
1
14
't:
17 TOTAL Gas (Iotal of lines 11 thru 16)5,507,17E -2,096,82!
1 Other 13:1,359,117 -49,45:
1€TOTAL (Acct 283) (Enter Total of lines 9, 17 and 18)262,2'.t7,212 -8,797,07/508,35€
21 Foderal lncome Tax
4 State lncome Tax
z;Local lncorne Tax
NOTES
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FERC FORIU NO.2 (ED. {2{6)Page 276
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O FERc FoRlt No.2 (ED. 12€6)
o
o
Name of Respondent
Avista Corp.
This Reoort ls:(1) [An Original(21 nA Resubmission
Dale !,r R€porr I Year or Repon(Mo, Da, Yr) I )ec.3t, 2OO3c!}t30t2004 I '
At t-UMiJLr\ I ELT LTEFEF(F(EL, INUI,JME l A,\EJ - (J l FlEt( IACCOUnI Z6Jl ttrOnUnue0 l
3. Provide in the space below explanations for Page 276 and 277. lnclude amounts relating to insignificant items listed under Other.
4. Use footnotes as required.
CHANGFS DIIRING YFAFI ADJUSTMENTS
Balance at
End of Year
(k)
Line
No.
Atnq.lnEi LreDtleo Am(runE (.;rBolleo
to Account 41 1.2
(n
Oebits Credits
to Account 4'10.2
Iel ctglted AINOUNI
(h)
ACCOUnTDebited(i)
Amount
fi)
2,703,177 182.32 719.E6t 1't8,175,103 3
182.32 737,254 -737,254 4
5
6
7
I
2,703,177 1,457,122 117,437,U9 9
79,E69 3.4W.222 1t
12
13
14
15
16
79,869 3,4W.222 17
182.31 6,681,E69 182.32 737.zil 127,365,050 18
2,78rit,046 8,138,991 737,zil 248.293.121 't9
21
22
23
NOTES (Continued)
Page 277
Name of Respondent
Avista Corp.
tnts Keoon ts:(1) flinn orisinat(21 l-.lA Resubmission
uate ot }(emn(Mo, Da, Yi)
0/,l30t200d
Year of Report
Dec.31, 2003
OTHER REGUI,-ATORY LIABILITIES (Account 254)
1. Reporting below the particulars (Details) called for @nceming 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 (5olo of the Balance at End of Year for Account 254 or amounts less than $50,000, whichever is Less) may be grouped
by classes.
Jne
No.
DescripUon and Purpose of
Other Regulatory Liabilities
(a)
DEBITS
Credits
(d)
Balance at
End of Year
(e)
ACC(runtCr€dited
thl
Amounr
(c)
1 Centralia Sale 254.11,028 & 038 407.41 1.763.806 6,674.i::r:
2
3 FAS 109 - Accounting for lncome Taxes 254.18 190.18 26,5s6 334.02C
4
5 Nez Perce - Regulatory Liabnily 2il.22 1E6.80/557.2 22,O08 880,43€
6
7 BPA Residential Exchange 2il.45, 028 407.45 145,930
I BPA Residential Exchange 254.45, 038 407.45 45,E35 16,333
9 BPA Residential Exchange 254.45, 098 1E2.45 1,679,,f44 1.679.445
't0
11 tdark to Market FAS133 - Reg Liab 2t[.74 176.711245.7 83,976,277 Tf ,1il,171 3,U2,495
12
13
14
15
16
17
18
19
2C
2'.1
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
11 TOTAL 85,980,412 78,8it3,616 13,027,706
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FERC FORM NO.2 (ED. 12-9,0)Page 278
This Page Intentionally Left Blank
This Reoort ls:J(1) lE An orisinat
(2) ! A Besubmission
Date of Report
(Mo, Da, Yr)
April30, 2004
GAS OPERATING BEVENUES (Account 400)
1. Report below natural gas operating revenues lor each lor each group ol meters addsd. The average numb€r ol
customers means the average ol tw€lve ligures at the close
ol each month.
4. Report quanlitios ol nalural gas sold in Mcl (14.73psia
at 60 degrees F). It billings are on a therm basis, give the Btu con-
tentrs ol the gas sold and the sales @nvened to Mc'|.
5. ll increases or decreases lrom ptevious year (col-
umns (c), (e) and (g), are nol derived ,rom previously
ac@unt, and manufactured gas revenues in total.
2. Natural gas means either natural gas unmixed or any
ol natural and manufactured gas.
3. Report numb€r ol customers, columns (l) and (g), on
basis ol aneter, in addition to the number of llal rate ac-
exc€pt that where separale meter readings are
lor billing purposes, on6 customershould be counted
Sales to Flesid. and Comm.
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FERC FORMNO.2 (ED. 12-86)Page 300
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Name of Respondent
Avista Corporation
This Fleoort ls:
(1) E An originat
(2) E A Resubmission
Date of Beport
(Mo, Da, Yr)
Aprll30, 2004
Year of Report
Dec. 31, 2003
GAS OPERATING HEVENUES (Account 400) (Continued)
reporled tigures, explain any inconsislencies in a foot- per day ot normal requirements. (See Account 481 olthe
note. Unilorm System of Accounts. Explain basis ol classilication
6. CommercialandlndustrialSales,Accounl4Sl,maybe inalootnole.)
rlassitied accoding to the basisotclassilication(Smallot 7. See page 108, lmportant Changes During Year,
oommercial, and Large or lndustrial) regularly used by the lor importanl new territory added and important rate increases
respondent i, such basis ol classification is notgen€rally ordecreases.
Jreater than 200,0OO Mcf per year or approximately 800 Mc'f
THEBMS OF NATURAL GAS SOLD AVG. NO. OF NA GAS CUSTRS. PER ulO.
Quantity lor Year
ru)
Quantity for
Previous Year
bt
Number for Year
tft
Number for
Previous Year
lol
Line
No.
1
198,471,049 I 199.686.485 261.063 254,700 2
'122,115,272 126.219.715 31,312 30,823 4
12,73634O 1.242.261 310 315 5
6
511,434 631.864 37 36 7
333,840,139 337.78,O325 292.722 2E'5.616.E
675,OOO 2.306.160 I
334,515,139 340.086.485 292.723 2A5.Alt 'to
NOTES
Ouantilies of natural gas expressed in therms:
to convert therms to MCF, divide therms by a
BTU tactor o, 10.20
(1 ) lncludes $ 4,83 t ,879 unbill€d revenues.
(2) lncludes 2,720,1 44 therms relatlng lo unbilled revenues.
11
't2
't3
14
'15
i6
17
18
19
20
21
22
23
24
2b
26
zt
z8
N
30
31
32
33
FERC FORM NO.2 (ED. 12-86)Page 301
Name oT KesPonoenr
Avistra Corp.
r nts }{epoft ts:(1)El An Original
(2)E A Resubmission
Jate oT Kepon
(Mo, Da, Yr)
April30,2004
rgar (,r raePgrr
Dec.31,2003
DISTRIBUTION TYPE SALES BY STATES
1. t(epon m tottil lor eacn utale, saEs Dy dasses ot serv-
ce. Repoil main line sales to residential and commercial
rnsumers in total by States. Do not indude field and main
lne saEs to lndustnal oonsumeE; these should De reported
on page 306, FieH and Main Line lndusbialSales of
NaturalGas.
No.
Names of State
b)
lotal KesEenual, uommencd ano lnousmal Kesroenual
vpera[ng Kevenues
(Total of (d), (0 and (h))
tbt
I nerms
(Total of (e), (g) and (i))
lcl
uperamg Hevenues
H)
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
3s
36
37
38
39
40
41
42
434
45
46
Drare or YYasntnglorl
State of ldaho
State of Oregon
State of Califomia
Totals
tJz,uc't rco/
51,225,091
64,547,45C
17,098,53C
264,922,438
too,, tc, l il
64,057,935
81,506,529
21,043,060
333,322,701
aztt to,I't'l
32,545,995
39,788,372
11,874,038
166,925,006
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FERG FORM NO.2 (ED 12-88)Page 302
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FERC FORM NO.2 (ED 12-88)Page 303
Name or Kesponoent
Avista Corp.
r nrs Kepon ts:(1)[| An Original
(2)E A Resubmission
uare oT Kepon
(Mo, Da, Yr)
April30,2004
Year ol Heport
Dec.31,2003
DISTRIBUTION TYPE SALES BY STATES (Continued)
z. rlouoe lotaE lor saES wmtn eacn DIaIe.
3. Nafural gas meanseihernafural gas unmixed, orany
nixture of natural and manufactured qas. State in a foohote
me oomponeils or mlxeo gas, r.e., wnemer narurar ano ol
refinery gases, natural and coke oven gases, etc., and specify
the aoooroimate Dercentaoe of natural qas in the mixture.
Resdentd (uontnued)uommencal ln0usmal
_tn€
No.
Therms
(e)
uperatng t{evenues
fi
I herms
b)
operatng t{evenues
h)
lherms
fi)
vo,or++, /oc
39,099,380
46,079,738
14,647J66
198,471.049
+o,zvztota
17,432,929
21,662,420
5,224,492
90,522,719
oJ,zu4,c L
23,16s,338
29,3/.9,523
6,395,894
122,115,272
J,tol,rro
1,246,277
3,096,658
0
7,474,713
+,oocrovc
1,793,217
6,077,268
0
12,736,380
2
3
4
5
6
7Io
10
11
't2
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
3o
31
32
33u
35
36
37
38
39
40
4'.|
42
43
M
45
46
Name of Respondent
Avista Corp.
Ihis Reoon ls::l) fi nn o.iginot
'.2t I A Resubmission
Date of Repon
(Mo, Da. Yr)
April 30,2004
Year of Repon
December 31, 2003
CAS OPERATION AND MAINTENANCE EXPENSES
If rhe for nrevious veu is not dqived from orcviouslv rcmned fimes- exnlain in footnoics-
Lile
No.
Amouot
lnl
Amount for
Current Year
tht
Amount for
Previous Year
lel
I I. PRODUCTION EXPENSES
vlmufetured Gf,s Pmduction (Submit SuDDlmminl Strtemnt'l
4 B, Natuml Grs Pmduction
5 B I . Natural Gas Production and Golhcrinc
6
7 ?5O Omtion Srrmruision md EnsinerinE
751 Production Maos and Records
9 752 Gas Wells Exocnses
0 753 Field Lines Exoenscs
?5y' Field Cnmnac<nr Stetion F
z 755 Field C-omorcisor Station Fuel and Power
3 756 Field Me$urinr and Resulatine Sudon ExDenses
t4 757 Purification ExEnrcs
I5 758 Gr Well Rovaltis
lr5 759 otlrcr Erocnscs
t7 760 RentstlTOTAL Ooeration (Enter Total of lines 7 thru 17)0
9 Vlaiatenance
zo 761 Maiotenmce Sumrvision and Ensineerinp
2t 762
22 763 Maintenmcc of Prcducins G8 Wells
23 764 Maintenmce of Field Lin6
24 765 Mainienuce of Field ComDffisor Starion EouiDmcil
L5 /6tr Marntcmce ol l-reld Mea. md Res- Sta. h.ourDmcnl
26 767 Maintenmce of Purificarion Eouioment
27 768 Maintenence of Drillinp and Clanins Fauiomenl
2A 769 Maintenanceof OtherEouipment
29 TOTAI - Mcinrenan.e fEntcr Tohl of litr6 20 thil 2Rt 0
30 TOTAL Nrtuml Gas Production and Gatherins (Toul of lincs 18 and 29)0
82. fuucts Extraction
32 oemtion
33 77(]OmratioD SuDepision and EnEineerins
t4 771 Omation labor
35 772 C6 Shrinkrce
36 773 Fuel
37 Tl4 Powet
38 775 Matsials
l9 776 Omtion SuDDlies and ExDenses
4{'777 GE Prmdsed bv Olhers
4t 77t RovaltiB on Productr Extmcted
42 779 Milkctinp Exensa
78O Pmducts hrrchased for Resale
44 781 Vriation in Products lnventory
45 (kss) 782 Extnrcted Products Used by the Utility-Credit
46 783 RentsoTOTAI - Ommrion fEnrd Total of l-ines il rhnr dfr)0
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FERC FORM NO.2 (ED 12.88)Page 320
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{amc of RespondeDt
Avista Corp.
fhis Reoon Is:r; f, rnoigioar
2) [ A Resubmissiou
Date ofReport
(Mo, Da, Yr)
April 30,2004
Iear ot Kepon
)ecember 31.2003
GAS OPERATION AND MAINTENANCE EXPENSES
ljne Amount
lal
Amount fbr
Currcnt Yeu
tht
Amount for
Previous Year
R, Pm.tn.r( Frtadion lCmtinued)
48lMaintmce
41 1t4 Mrinrmrnra Qrmaicinn cn.l Enqi
5(785 Maintenance of Structurcs and Improvements
786 Mainranmce of Exrr&tion ud Rennins Eouiomenl
5,.,e, M.inr-aan^. ^fPi* I in..
788 Mainranenrc of Errmcrcd Pmducts Stompe Eouiomenl
5/789 Maintenance of ComDrcssor Equipmmt
5r 790 Maintenance of Gas Mc.tsurins and Reg. Equipment
5(?9t Mainrananca 6f Other Fluinrenl
51 TOTAL Maintenance (Enter Total of lines 49 thfl 56)o
5t Tr)TAI Prrvhrctc Frrm.tion fEnter Total of lines 47 md 57)o
5!C. Exolorataon and DeveloDmenl
6(manron
6l 795 flelev Renrals
61 T9li Nonroduaive Well Drillins
61 797 Abandoncd Leases
6t 79E OtherEroloration
6(TOTAL ExDloration and Developrnent (Enter Totill of linqs 6l thru 64)o
D. Other Giu Suoolv Eroenses
6(mmtion
61 8(X) Naruml Gas Well Had Purchases
6'8(X)- I Natual Cias Wcll Had hrrchases. IotrncomDanv Tra$fers
6!8Ol Naruml Gas Field Line hrrchses
7(8O2 Narual Gas Gasoline Plmt Outlet Pruchas
7 8Oi Naruml Gar Tansmission Line hrrchnscs
7a 8(X Nuural Cas City Gale hrrchascs It9.992.1 t0 t70.443.2'19
7:E(X. I Liouelied Natural Gas Purchases
7A 805 C)therGx Purchases (9.217.171'150.7
7t (Less) 805.1 Rrrchased Gas Cost Adiustments 42.229 251
7(
T1 TOTAL Purchxed Gas (Enter Total of lines 67 to 76)r 80 ?5d 17i 2t2.823.24s
M)6 Exchmpe Gu
T9lPurchased Gx Ermsm
8(
I Qn? " l,.kr;^n ^f D[ahrcad Grc Mpr.!!ri.d St.ri
I 8O7-3 Mainrpnene of hrrchrced Gu Me[urins Stations
8 807.4 Purchucd Gas Calcuhtions Expcnss 3 I E-29:212.46t
R/807.5 Otber Purchased Gas Erpqses 9l.l t4
8r TOTAL Purchascd Gas Expeases (Enter Total of lines 80 thru 84)3t4.297 303-5
R'ROR I Grc Wirhdawu fmm Siomse-Debil I I I 3.552'
Ri (l-ess) 808.2 Gas Delivcrcd to Stoace-Cr€dir (76.888 181.476
8'809. I Wilhdrawals of Liquefied Narural Gas for Processing-Debit
t!(tJss) 809.2 Delivenes of Narural Gas for Processing-Crcdit
9(fu Used in Uriliiv ODerations-Credit
9 RIO Grc t lcrd fnr Cnmnn<snr Slalinn Frrel-Credit
9i 8 I I Gm Used for Products Extnrction-Credit
9:812 Gas usd for Other Utilitv Ooerations-Crcdil
9,{AL Gre Used in Utilitv ODeratioos-Credit (Total of lines 9 I thru 93)
95 813 Clher Gm Suoolv Exrenscs 3 19,06!1fl) ORr
x TOTAL Othcr Gas SuDDlv ErD (Tolal of lin6 77,7u,u5.8o lhru 89,94.95)! 8l -1t 4-R5!
Yt TOTAL Pmduaion ExDcmca (Ent6 Total of lines 3.30.58.65. and 96)t8t.il4 R5t 2l:1.4s4 832
FERC FORM NO.2 (ED l2-E8)
Name of Respondent
Avisra Corp.
fhis Reoon ls::l) El eoorigina
'.2) ! A Resubmission
Date of Repon
(Mo, Da, Yr)
April 30.2004
Year of Reporr
December 3 l, 2fi)3
GAS OPERATION AND MAINTENANCE EXPENSES
Lite Amounl
Amount for
Current Year
tbt
Amount for
Previous Year
9E 2. NATI.JRAL CAS STORACE, TERMINALING AND
PP'lr'FS(IN'': FYPFNSFS
9S A. Undereround Storase ExDenses
r0c )peration
lol 814 Omtion Suoetrision and Ensineerinp 5. t53 G
t02 815 MaDs md Rftords
101 816 Wells Ermnss 9-98r
1()4 ct?Evr
r05 EIE Comorcssor Sutioo Expenses 58-tni
106 819 ComorcssorStatioo Fuel and Power 7 7(X
107 820 Measurine and Resulatins Siation Exoenses 3,04t
t08 821 Purilication Exoenses
109 822 Exotoration and DeveloDrnent
llo 823 Gr hssesult24 Other Exmes 224.242 61-34/.
tt2 85 Sronse Well Rova-lti6 29.6
u3 826 Renrs ( 1.t46
IL TOTAI - Ommrion fEntd Toral of lin6 I O I rhn I l3)247.19:t6lt-s1.
t5il6 830 Mainten:urce Suoervision and Encineerine 31.27(
831 Maintenance of Structurcs atrd lmDrovements t,97'
llE 832 Maintenancc of Reservoirs and Wells 30.87'
ll9 t33 Mainrcnilce of Lines 2-50',
t20 t34 MainteMce of Comorcssor Station EouiDment 66.96I
l2t E35 Maintenance of Measurine xnd ReeulatinE Station EouiDment
836 Mrinrenmcc of Purification EouiDment r.7lt
123 837 Maintenuce of Other EouiDmmt 220.501 55-26t
IA TOTAL Mainrenanc. (Enttr Tot l of lin8 I I 6 rhru 123)220.sfj1 I 90.59'
t25 TOTAL Undeprcund Stomse Exm6 (Toral of lines t l4 md t24)463.89(!s7.t2l
t26 B- Other Stomle Exmss
127 )peration
r2R 8d0 Omrion -Srrmruision md Ensingine
t29 84t Omrion I rtnr end Ermnes
130 842 Rents
t3l t42.1 Fuel
t32 U2.2Powq
133 t42.3 Gm l,oss
l14 TOTAL ODeration (Eilef Totd of lines t 2E thnt l3l)
135 ,lainremce
t36 t43.1 Maintcnile SuDfivision and EnEinecrins
137 843.2 Mainrcoance of Smrctures and lrnDrovements
l3t t43.3 Maintanancc of Gas tlolders
139 t43.4 Maintcnane of Purincation EouiDmut
Irlo t43.5 Maintmme of Liouefaclion EouiDmdt
l4l 43.6 Maintmce of VaDorizins EouiDment
t42 43-7 Mainrmce of ComDBsor EouiDment
l4l 843-8 Mainrcme of M6urins md Resulilins Eouiomenl
t4L t43.9 Mahtenance of Other Equipment
t45 TOTAI - Maintenmcc (Ents Toral of lines I 36 rhru I 44)
146.TOTAL Other Stonse ExDenses (Enter Total of lines I 34 and I 45)
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FERC FORM NO. 2 (ED I2.8E)
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Narne of Respondent
Avista Corp.
lhis ReDon Is:l) f, eo origioa
.2) [ A Resubmission
Date of Repon
(Mo, Da, fr)
April 30,20Ol
Year of Repon
December 3 1, 2003
GAS OPERATION AND MAINTENANCE E)(PENSES
JtrE
{o.
Arlrourt
lal
Amount for
Currcnt Year
thl
Amount for
Previous Year
lcl
t4'1 C I inrrafipd Nerrrml Gas Tminalins md Procssinp Exmnses
l4tlOmmtion
l4l t4.d. I r)merinn (rrrwirion end F.npineaine
t5t 8.14.2 LNG Processine Terminal l.abor and ExDenses
844.3 Liouefrction Processing l.abor and ExDenses
l5i 844.4 Liouefrction TmsDonation l-abor and ExDenses
l5:844.5 Mqrsurinc and Resulatinq Labor utd Expenses
l5t 844.6 Comoressor Statiotr Labor and Erpenses
155 E44.7 Communication Svstem Expenses
156 844.8 Svsrem Control and Load Dispatcilng
t57 t45. I Fuel
l5E 845.2 Power
159 845.3 Rats
I60 845.4 Dcmumee Charees
l6t css) 845.5 Whdarc RecciDts-Cr€dil
162 45.6 Pmssinp Liouefied or Vaoorized Gas bv Othen
163 846. I Gas l-ossc
lil 8C6.2 Orhs Ermnsa
t65 TOTAI. Omnrion fEnrtr Tot!il of lines I49 thIu 164)
r66 Maintenance
t67 M7.I Maintcnancc Suoervision and Engineering
l6t 847.2 Maintenonce of Strucures and Impmvemcnts
t69 n/', 1 Mlrintrnrn.. .f I NG Prr.(inc Tminal Fruioment
170 847.4 Mainrmmce of LNG Trusoonuroo Equior}e{lt
l7t 847-5 Mainrmance of Masunne md Resulatine Eouromat
172 847-6 Mimrmancc of Commmr Station Eouromcnt
171 84?.7 Mainrenane of Comuniotion EouionEnr
l7a el1 I Mrinrmanar af flrh* FnI
175 TOTAI - M:rinrenance (Enta Total of lines 167 lhm 174)
t76 TOTAL Liouefied Nat Cu Tcrrrundrng and Pmccssing Exp (Lines 165 & 175)
t77 Tr)TAI Nrnrml Gnr (tompe lEnt.r Total of lines 125- 146- ud 176).t63.89a 157- l 28
l7E 3. TRANSMISSION EXPENSES
t79 Emuon
It0 850 Ommtion Surcrvision rnd Enernccnne
I 851 Svstem Control and t ad DrsDatclune
I 852 Comunicrtion Svstem Exocnscs
183 853 ComorcssorStrtion Labor ud ErDcnses
184 854 Gas for Comorossor Station Fucl
185 855 Orher Fuel md Power for ComDressor Sutlons
186 856 Mains Ermnses
lR7 e(? Maor;na an/ p.r'rlnrino Slarinn F
188 fl(t Tnnrnirtinh {6d a^mhaccinn ^f Gr( hv ()rhtsr
l8s 859 Othcr Exmnses
lgo 860 Rants
t9l TOTAI - Ommtion fEnter Totrl of lines I tO thru 190)
FERC FORM NO. 2 (ED I2.tE)
Yame of Respondent
Avista Corp,
fhis Remn Is:.l) B e, origin"t
.2) [ A Resubmission
)ate of Report
'Mo, Da, Yr)
{pril 30,20(X
Yecr of Repon
December 31. 2003
OAS OPERATION AND MAINTENANCE E)(PENSES
LJle
{n
Ammni
Amount for
Curreot Year
(b)
Amounl for
Previous Yeur
l.l
3. TRANSMISSION EXPENSES (Continued)
192 vlaintena[ce
t93 861 Maintenmce Suoervision and Enrineerine
t94 462
l!t63 Mrintenmce of Mains
854 Maintcnmca of ComDGsor Station EouiDment
lq]865 Maintemce of Mmurins ild Rap. Sution EouiDmnt
t9,l# Mainl.na-.- nf rlnmnrrnidriaa Farrinaant
l9t R67 Meintenance of Other FauiDmml
2U TOTAL Maintenancc (Enter Toul of liocs I 93 ihru I 99)t,77'
zo)TOTAL Transmission Exoenses (Enter Total of lines l9l and 200)I -71
20.t 4. DISI-RIBUTION EXPENSES
2(J1 Enrlion
2U t7O Ommtion Surcrvision and EnEineerins 913-2&,55 l.O2(
m5 t7l DistributioD lrad DisDdchins 3.41:
2rx 872 Comorcssor Strtion hbor md Exmnses
m7
20E
209
R73 Cnmnessor Station Fuel and Powr 0
874 Mains and Scruies Exrenses 2945 57 2_920121
R75 Mercrrrino and Remlaline Station Ermnse-Gmeml 6,n1 59,44t
210 E76 Measurine and Resulatine Station Exocoses-lndustrial 63t t.95t
It t77 Mtrurins md Resulatms Shtion ErDenses-Cilv Gate Check Station toz.o71 6 /.vut
878 Merer md House Resulator Ermns6 1.49 t. I 1.53't.&1
879 Customer lmrallrtions Exmscs t.777 .OBt r.663.39!
214 880 C)ther Ermnses t.576.941 r.487-75!
215 881 Renrs l9 sff I 1.16q
2t6 TOTAI - Onemtion f Enrer Total of linB 204 thru 2 I R5rr 57 8,423,231
2t7 vtaintenance
218 RR5 Mrinrenence Sureruision and F 57.543 35.33:
219 886 t.69i 4,57'
72rl 887 Mainlenance of Mains 2,O28,4X 1.317.91:
221 88R Maintenence of Comnrcssor Station
222 RRO M:rintenance of Mers and Res -Sta Fnrrin -Genaml u6.691 159.6
223 890 Maintenance of Meas. and Ree. Sta. EouiD.-lnduslrial t76.7 t4 t5 1.47t
2U E9l Muinrenance of Meas. and Res. Sta, EouiD.-City Grte Check Staiioo 4l.l l(46.E5:
225 892 MaintenanceofServices 3?..7@ 273.33t
226 893 Maintenmce of MeteB and House Resulatos 557.O21 539-77(
277 t94 Maintenmce of Other FruiDment 19.6t!30-08l
224 TOTAL Mrintenmce (Enter Total of lin6 2lt thru 227)3-t61.8 2.75t.98:
229 TOTAL Distriburion Erffi (EnEr Totd of tin8 216 ild 228)12.7 t4.4 I t.142.221
5. CUSTOMER ACCOUNTS EXPENSES
2lt mtion
232 9Ol Sumision 72.691 88-55(
9O2 Mertr Radins Exm6 2.f)OO.75t l -896-4tr
234 9O3 Cusromr Rtrords md Collmtion Exmnses 5-821.78 5.425_74',
9(X Uncollmtible Accounts 753-58'1.746.961
216 905 Miscellaneous Customer Accounts ExDcoses 425.gil 6 r 6,85i
211 TOTAL Customer Accounts Expenses (Enter Toral of lines 232 ttrru 236)I O78 72"I774_6{Y
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FERC FORM NO. 2 (ED I2.tE)
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Yame of Respondent
Avi$aCory.
I ms KeDon ls::r) E tuo'igioa
'.2) [ A Resubmission
)ate of Repon
'Mo, Da, Yr)
{pril 30,2fiM
fear of Report
)ecember 31, 2003
GAS OPERATION AND MAINTENANCE EXPENSES
If the emornt for nrcvims vE is not dtrived from nrcviouslv remied fimrcs ernlain in footnotes-
Linr
No-
Amou8t
lal
AmouBt for
CurreDt Year
Amount for
Previous Year
218 6. CUSTOMER SMVICE AND INFORMATIONAL E)GENSES
239z4 907 Suocrvisionul90E Grstomcr Assislmce ExD€nses 3.71t 3.1 I
242 909 Infomtional md InsEuctioDal ExD€nses l04 ti
2/3 9I0 47-Ot l05
24/TOTAL Customr Sflice and Information ExDenses (Lhes 240 thru 243)3.t69.i 3-
24:7. SALES EXPENSES
2At Jmmtion
24',9l I Sumi<ion 23.E3(t.521
)at 9 I 2 Dernonsrarins atrd SelliDs ExDcos€s 654.t&507.681
u1
25(
913 Advcrtisins ExDcnses 190.04 t06.461
916 Misccllancous Salcs Exocnses 52.7t
25t TOTAL Sales Errcs (Entd Total of li[€s 247 lhnt 25Ol 920-6!16.901
25t t. ADMINISTRATIVE AND GENERAL EXPENSES
mtion
254 920 5-840-46r 5_ I 1R-78a
921 Office Suonlies md Exmmc 2.261-154 2.ta\791xt(Lessl {9221 A(hnrnrstmtrve trmns I mstered-cr-512',(6.61I
LS1 O11 flrrciia (aruirac Earlawd 2.986 rSi 1 112 1{X
x8 924 Promnv Immce 367.Ozi 239,O1i
25gl 925 lniuria rnd D ,968.39(477.941
7A 926 Emolovcc Pensions aod Bcaefits 6 I 5.EE(437.U3
261 927 FraochiseReouircrnents
262 928 Reculanoru Cimission Eroenses 1.365.5tt t-2t3-921
263 (Ljss) (929) DuDlicare Charses-Cr.
2@ 930.1 Genml Adveatisitr! Ermses ri4l,
916.Cfti 1.001-572
26 931 Rena 2.175.7rl1 2.19fl 241
26it TflTAI Aruarian Gnr* Tarql nf linx 1(d rhar ?66\t7 \t6.9li 16.611 521
268 lMaintmmce
269 935 Maintenance of Gmml Plmr I O5a 60r %0,33
270 TATAI A#ini.rariua an/ a:6ael Evn /Tarrl af linac 1(? anrl 1(O\l E.571.55 t t7.577.8d
27t TOTAI- Gas O. and M. Ern d-ina 9-177-2Ill-229-217-7A4,-251-md210\226.931.39:,256.390.t2:
for thc payroll period ending nearcst tofuober3l,or
any payroll period endiag 60 daysbeforcorafterOcto-
ber 3l.
2. If the rcspondent's payroll for the reportitrg period
includes any special constraion personnel, include such
construction €rnployees in a foonote.
3. The number of employees asigublc to the gas
depattmenr fmm joitrt furclion of combiDation utilities
may be deterrnined by estimate, otr the basis of employea
equivaletrts. Show the estimated numberofequivalent
employees attributed to the gas depanmeotfromjoim
FERC FORM NO. 2 (ED l2-88)Page3?5
r\ame or Hesponoenl
Avistia Corporation
nts Heoofi ts:E An originat
tr A Resubmission
uare or Hepon
(Mo, Da, Y)
April30, 2004
Year or Hepon
Dec. 31, 2003
Other Gas Supolv Expenses (Account 813)r Hepon omer gas suppry expenses oy oescnpuve ures mar
clearly indicate the nature ol such expenses. Show
maintenance expenses, revaluation of
monthly encroachments recorded in Account 117.4
ano rosses on semgmenls o, tmDatances and gas losses
not associated with storage separately. lndicate the
functional classification and purpose of property to which
any expenses relate. List separately items of $250,000
or more.
No
Description
(a)
Amount
(in Dollars)
lb)
I
2
3
4
5
6
7
8
9
10
11
12
13
14
t5
16
'17
't8
19
t.,as Hesource Managemenr
Labor
Transportation
Misc. Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Etc.)
Canadian Begulatory Aflairs
Labor
Misc. Other Expenses (Phone Bills, Prolessional Services, Gas Reports, Travel, Etc.)
Send Out Modeling
Maintenance Fees
FERC Gas Case
Labor
Misc. Other Expenses (Phone Bills, Professional Services, Postage, Etc.)
Departmental Administration
114,062
571
13,590
46,714
3,985
0
51,091
87,511
22
20 TOTAL 3't7.s45
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Page 334FERC FORM NO.2 (ED 12-s6)
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\ane ol Respondent
Avista Corp.
lhis report is:
il) (X)An Original
12) O A Resubmiss
Date ol Report
(Mo, Da, Y)
April30,20O4
Year ol Report
Dec. 3'l , 2003
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
t. ftork € tho inrormation requesied below on miscellaneous
lonoral orgenses.
2. Fu Other Expenses, show he (a) puDoso, (b) r€cipient and (c) armunt ol such
items. List ssparatoly amounb ol $250,000 u more however, amounts less than
$250,000 may be grouped il h€ number ol items of so grouped is shown.
Lin€
No.
Description
h)
Amount
tht
1 ndusirv Association Oues (0930.25)90.57!
2 irgedmental and General Ressarch Expensos
a. Gas Research lnstitute (GRl)
h (1thar
3
Publishing and Distributing lnformation and Reports to Stockholders; Trustee, Registrar and Transler
Aoent Fees and ExDenses. and Other Expenses of Servicinq Outstandino S€curities of the Respondenl 349.76€
4
5
6
7
I
9
10
'l 1
12
13
14
15
16
17
18
19
20
2'.1
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
s7
38
39N
41
42
43
44
45
46
47I
49
Olher Elgenses
DlrGctori Fees and Expenses (0930.27)
Erik J. Anderson
Kristianne Blake
David A. Clack
Sarah M. R. Jewell
Jessie Knight
John F. Kelly
Lura J. Powell
Row Lewis Eiguren
R. John Taylor
Total
Misceltaneous General Expenses (0930.20)
Labor
2 ltems Under 115000
WA,/ID R6r W^'/lD EIp
6,687 155
9,608 43
7,604 266
1,714 91
5,126 1,007
5,99S 394
6,382 283
6,152 325
7,088 75
OR/CAR8I OR/CAE)Q
3,356 78
4,823 21
3,817 r33
861 46
2,573 505
3,01 1 198
3,203 142
3,088 163
3.558 37
2,639 28,290 1.323
88,61
Total 188,732
Communlty Relatlons (0930.22)
Labor
161 ltems Under$5000
Total
Educrtlonal - lnrormataonal (0930.23)
Labor
6 ltems Under $5000
Other Mlscetlaneour Genera! Expen3e. (0930.29)
Labor
10 ltems Under $5O0O
Othor MiscGllaneoui General Labor (0930.26-28)
93027
150,918
30,441
Total
1,090
29.934
10,276
14,495
11,820
2,712
9,211
9,602
't0,010
9,728
10.7s8
191,317
-2,585
132,964
17,954
29,853
588
35
1,O55
29,934
50 rOTAL 930.068
FERC FORM NO.2 (ED. 12-96)Page 335
FERC FORM NO.2 (ED. t2-86)Page336
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(1) [U AnOrisinal
DEPRFCLdIION, DEPLE'IION, AND AIUORTIZATION OF GAS PLA].IT (Accounts 403, &.1, M.2,40/'.3, e.6, 405)
l. Report inScction A the arnounts of depreciation
expense, depletion and amortization for the accormh in-
dicated aad classified according to the plant fuoctional
groups shown.
2. Report all available inforrnation called for in Sec-
tion B for the rcport yeat 1971,1974 and evcry fiflh ycar
between the report yers (197 l, 1974 aod every fifth year
thereafter).
Report in colurnn (b) all depreciable plant balances to
which rates areappliedandshowacornposite total. (If
more desirable, rcport byplantaccormt subaccouotor
fimctional classifrcations 61ft'6 than ft6se pre-printed in
cohnrm (a). Indicatc at the bottun of Section B the
Rmctional Clsssifi cation
Depreciation
Expease
(Account 403)
Arnortization and Deple-
tion of h,oducing Natuml
Gas bnd aad Iand
Rigbts (Accomt404.1)
Amortizatioo of Under-
groud Storage, knd,
Iand Rights and Misc.
Intaog (Account 404.2)
l3
14
l5
l6
t7
l8
l9
20
2t
22
23u
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FERC FORM NO.2 (ED. n-Ai)Page337
:{ane ot Kespoodent
Avista Corporatiolr
lhrs RteDort ls:ll) B Anorisirul
i2) tr ARezubrsission
L'a[c ot KcPofl
'Mo, Da, Yr)
{pil30,2004
fear ofReport
Dec.31,2003 I
DEPRECIA'.ITON, DEPLEIION, AND AMORTIZAIION OF GAS PLANT (Accouots 40,3, 40/..1, 4M.2, 4M.3, M.6,40/5)
(Bxceot Annrtization of Acouistion Adimhnents) (Continued'l
mamcr in which cohurm @) balaoces arc obtained. [f
aver4ge balanccs, state the nrcthod of avcraging uscd.
For colurm (c) rcput available iafornratim for cach plaot
frmctional classificatio listed in colurn (a). U co,nposite
depreciation accormting is used. Report available infor-
mation called fo in colurms (b) and (c) on this basis.
Whcrc the rmit-of-omduction mcthod is uscd to dctcrmine
dspreciatiotr charges, show at thebottomof ScctionB
any rcvisions made to estimated gas leseraes.
3. If provisions for deprciatim were rnade during the
year ia addition to deprcciationprovidedbyapplication
of reported rates, stiate at the bottom of Section B thc
amouots aod mftrc of the provisioos and the plant items
to whichrclated.
on A- Surnrnaru of Demcciation Deolction and Arrrntization Ctrarpas
Amortizatiotr of
Other Limitcd-tcrrr
Gas Plaot
(Account 404.3)
lol
Afixrrtrzauon ot
Leasehold
Iryroverrcnts
(Accout404.6)
tn
Anrortization of
Othcr Gas Plant
(Accout405)
lol
Total
(b tog)
thl
Fmctional Classifi cation
/a'l
Line
No.
580.782 583.287 lntancible olant
14.179 hrdution olanl rnanufachrred sas
hoduction aod gathering plant,
nafiml oas
3
hoducts extraction olant 4
42r.357 Undersoud sas storase Dlaot 5
f,thcr storaec olaot 6
Base load I.I.IG terminating and
mrccino nlanl
7
o on Dlanl 8
12.7v2.499 stibution Dlent 9
4r,5.628 ieneral olant l0
557.585 220.421 2-259.166 lornrnon sencral olant-Alocated
z
l3
t4
l5
t6
17
l8
l9
20
2t
22
23
24
-138-36',220.421 o r6-535-1 l5 TOTAL 25
Narne oI Kesponoent
Avista Corporation
rrus KeDort, Is:(l) lXl An original
(2) f| A Resubmission
uarc oI r(epon
(Mo, Da, Yr)
April 28, 2004
Year oI r(eport
corrplete
Dec. 31, 20O3
Line
No.
F\mctional Classificatiou
(c
uepreqaDle
Plant Base
Clhousands)(b) u)
Applied
Depr. Rate(s)
@ercent)
(c)
I
2
3
4
5
6
7
8
9
10
11
t2
l3
t4
t5
l6
17
t8
l9
20
2t,,)
23
24
25
26
27
28
29
30
3t
32
33
34
35
36
37
38
39
40
4t
42
43
44
456
47
48
49
350
351
352
352.2
352. I (Leasehold Improvements)
352.3
353
354
355
356
357
Total
lProduction - Manufactured Gas:
2305
23tt
Total
Transmission Plant:
2366
2367
2369
2370
Total
Distribution 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
Iotal Gas Plant
24
1,063
5,656
209
254
6,122
823
1,908
154
4U
1.638
2.O5%
l.75Vo
2.$OVo
2.53%
2.22%
2.547o
2.06Vo
2.327o
2.66Vo
2.97%
2.77%
2.80%
1.80%
2.6OVo
2.607o
3.45%
7.lOVo
2.19%
2.38Vo
2.t3%
2.24%
2.67%
1.94%
2.O7%
2.27%
2.53%
2.43%
5.40Vo
2.OO%
2.14%
2.OOVo
6.30%
2.40%
4.96%
4.48%
8.7670
2.597o
t6,z)o
0
46
{o
0
0
0
0
U
621
22t,t79
4,325
1,779
159,220
50,164
0
0
0
2,485
I
+5v,t tJ
3,t23
2,332
t2
l0
84
2,201
890
1,605
34
/, l()6
468.366
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FERC FORM NO.2 (ED. 12-86)Page 338-4
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the intormation specified below, in lhe order given, lor the respective income deduclion and interest charges accounts.(a) Miscellaneous Amorlization
425) - Describe lhe nalure ol items included in this account, lhe contra account charged, the total ol amortization charges lor the year, and the period ol
(b) Miscellaneous lncome Deductions-Repod the nature, payee, and amount ol other income deduclions for 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, Other Deductions, ol the
System ot Accounts. Arnounls ol less the $250,000 may be grouped by classes within the above accounts. (c) lnterest on Debt to Associated Companies
430)-For each associaled company that incuned interest on debl during the yeal indicate the amounl and inleresl rate respectively lor (a) advances on
(b) advances on open account, (c) noles payable, (d) accounts payable and (e) other debl, and total interest. Explain the nature of other debl on which
was incuned during lhe year.
(1) (x)An
Year of Report
Dec. 31, 2003
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
distribution svstem. Contra account 1 15.00.
Items Under $15,000
Total426.10
1 12.8'13
426.40. EXPENDITURES FOR CERTAIN
FERC FORM NO.2 (ED. 12-87)Page 340
Name of Respondent
Avista Corp.
This report is:
(1) (x)An Origin
(2) ( )A Resubr
Date of Report
(Mo, Da, Yr)
April30,2004
Year of Report
Dec. 31, 2003
Particulars Concernlno Certain lncome Deductlon and lnterest Charoes Accounts
Lrne
No.
Description
(a)
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
30
31
32
33
34
35
36
37
38
39
40
Acct. 431.00 - OTHER INTEREST EXPENSE
Customer Deoosits 67,923
Misc. Oreoon Delerrals and Amortizations 34.715
lnterest. WA PGA (109.144)
lnterest, lD PGA 656
Capitallease interest 88,945
lnterest on DSM Proqram Liability 123,O17
Misc. lnterest 53,956
Executive Def erred Compensation 60,200
Total431.0O 320.268
41
the inlormation specilied below, in the order given, lor the respective income deduction and inlerest charges accounts.(a) Miscellaneous Amortization
425) - Descdbe the nature of ilems included in lhis account, the contra account charged, the total ol amortizalion charges lor the year, and lhe period ol
(b) Miscellaneous lncome Deductions-Beport the nature, payee, and amount ol other income deductions lor the year as required by Accounts 426.1 ,
4fti.Z,Ule lnsurance; 426.3, Penalties; 426.4, Expenditures lor Cedain Civic, Political and Belaled Activities; and 426.5, Other Deductions, ol the
System ol Accounts. Amounts ol less th€ $250,000 may be grouped by classes within lhe above accounts. (c) lnterest on Debt to Associated Companies
430)-For each associated company that incuned interest on debt during lho year, indicate the amount and interest rale respectively for (a) advances on
(b) advances on op€n account, (c) notes payable, (d) accounts payable and (e) otherdebt, and total interest. Explain the nalure ol other debt on which
was incuned during the year.
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FERC FORM NO.2 (ED. 12-87)Page 340.1
This Page Intentionally Left Blank
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Xl An Original
lA Resubmission
year (or in previous year, if being arnortized) relating to ronnal cases bolore
2. ln column (b) and (c), indicale wnether the expenses were
assessed by a regulatory body or were otheMise incurred by
regulatory body, or cases in which such a body was a party.
OescriPtion
(Fumish name of rcgulatory commission or bdy, the
cloc\et number, and a descriplion of the casa.)
Erq3enses
ol
Ulility
,l
2
3
4
5
6
7
I
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
92
38
34
35
36
37
ENERGY HEGUI.ATORY COMMISSION
Cases Doc ls:CP0t-141 & 438,CPm-4,CP0&31 & 32,
1,8P9951 8,RPo(H1 4,RP02-362&455,8P03-7,4 1,70,95
,403,404.436,483,501,556,573,574,5Z/,597 & 600, HP 04-r5
Electrh-MeHs: 3'r9r4,3r905,31797,3r734,31619,3r553
408,31247,3r l76,3t096,3 t095,31031,30938,30937,30762,
,30608,30598,30596,30583,30449,3043 r,
Gas - Mct ts: 32148.31798.31735,31620.3t590.31551.
r 63r.3 r 303.3,t 253.3r 252.30829.30763.30672.30632.30609.
. Eleclric- m(et *S:AVU-E{3-7,AVU-E{2-8.AVU-E{3-l
.E-03-2,AVU-E-03-{,AVU.E{3.5.AVU.E.03.6, I & 9
{s: 03{l-E, & 0}02-E
Gas - Dod(et ts:AVU4{$l & AvU€-o}?
*s: UM-734,UM-903,UM-1099,UM-l I 1s,UG151/154
,AR-452,AR-427,AR-428,UF-41 98,UF-4079, 1C.35
Advic8 ts: 0&1€,0$2€ (s,ppl) & 03-4-G
02. 1 0.01,01.08.@7,01.05.047,03.03.01 7,.03.(x).006
G.3342,G-&329,G-St03
02.01.040,02.07.033,01.06.01 0,01.08.065
f s: C-51 C,C-52G,C-53-G,C-54-G,C-55-G,C-56-G
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FERC FORM NO. 2 (ED.12.96)Page 35()
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Narne of Respondenl
Avista Corp.
this report is:
XI An Odginal
lA Resubmission
)ale of Report
lMo, Da, Yl
April 30,2004
(eat Ending
)ec. 31, 2003
REGULATORY COMMTSSTO!!Q(PENEE9..(4c99!n',!_g?!
rEtrowln cotumn (k) any e)Qenses incuned in prior )lears
hat are being arnorlized. List in column (a) th€ period ot
lrnortization.
l. ldenlity separately all annual chaoe adiuslments (ACA).
5. List in column (l), (g), and (h) a,eenses incutred duting year
which were charges cunenuy to income, plant, or other accounts.
6. Minor iterns (le8s than $250,000) rnay b€ grouped.
EXPENSES INCURRED DUE!!q YEAB AMORTIZED DUBING YEAB
Detered in
Account 182.3
End o, Year
,ll
Line
No.
CHAFIGED CIJRRENTLY TO
D€lered to
Account 182.!
rit
Contla Accounl
til
Arnount
Departrnenl
,ll
Account No.
aol
Arnounl
,h'l
Electric
Eleclric
Gas
Electric
Gas
Gas
Gas
0928
0928
1928
0928
1 928
2924
2928
2.157,633
910,043
516,'t02
632,846
242,796
479,778
126,904
1
2
3
4
5
b
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
n
30
31
32
33
34
35
36
37
m
ffiFfffiffi 39
FERC FORM NO.2 (ED. 12-96)Page 351
Name ol Respondent
Avista Corp.
tnts F(elrofi ts:(1) fiAn Original(2) f-'lA Resubmission
Date ot f(eport(Mo, Da, Yr)
0/,t30t2004
Year of Report
996.31, 2003
DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages for the year. Segregate amounts originally charged to clearing accounts to
Utility Departments, Construction, Plant Removals, and Other Accounts, and enter such amounts in the appropriate lines and columns
provided. ln determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation
giving substantially conect results may be used.
Jne
No.
Classification
(al
Direct PawollDiskibution
(bl
,ttl(J(itu(Jlt 9IPavroll charoed forCl6aringAcEounts
Total
{d)
3 Prcduc,tion 7,873,17C
4 Transmission 1.756.69S
5 Disbibution 5,240,48!
o Custom€r Accounb 4.614.17t
7 Customer SeMce and lnformalional 65,54(
I Sales 637.43:
I Administrative and G€neral 10,u2,36(
10 TOTAL Ooeration (Enter Total of lines 3 thru 9)30,229,86(
12 Production 2.785.465
13 Transmission 693,991
14 Distribution 4.049.693
15 Adminiskative and General 767,388
16 TOTAL Maint. fTotal of lines '12 thru 15)8,296,557
r8 Pro<luction (Enter Total of lines 3 end 121 10.65E.65:
19 Transmission (Enter Totial of lines 4 and 13)2.450.69(
20 Distribution (Enter Total of lines 5 and 14)9,290,17r
21 Customer Accounts (Transcribe from line 6)4,614,17t
22 Customer SeMce and lnformatoflal Oranscrlbe from line 7)65.54t
23 Sales (Transcribe lrom line 8)637,43:
24 Administrative and General (Enter Total of lines 9 and 15)10,809,74t
25 TOTAL Oper. and Maint. Ctotal of lines 1E thru 24)38.526.4261 1,473,556 39,gtxr,9E2
28 Prod uc,tion-Manuiac-fu red Gas
29 Prcduction-Nat. Gas (lnduding Expl. and Dev.)
30 Other Gas Supply 362,661
31 Storaoe. LNG Terminalino and Processino
32 Transmission
33 Distsibutlon 5,278,$evCustomer Accounts 3,916.965
35 Customer SeMce and lnfomational 113,621
36 Sales 426,769
37 Adminisbative and General 4,211,sil
38 TOTAL Operation (Enter Total of lines 28 thru 37)14,309,82€
40 Production-Manufacfu red Gas
41 Production-Nafural Gas
42 Other Gas Suoolv
43 Storaoe. LNG Terminalino and ProcessinouTransmission
45 Disfibuton 1.760.86C
46 Adminishatlve and General 209,317
47 TOTAL Maint. (Enter Total of lines 40 thru 46)1,970,177
a
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FERC FORM NO.2 (ED. r2€8)Page 354
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Name ot Respondent
Avista Com.
This Remrt ls:(1) E]An Orisinal
(21 f-lA Resubmisslon
Date of Repod(i,lo, Da, Yr)
0/,t30Doo/.
Year ot Report
Dec.31,2003
DISTRIBUTION OF SALARIES AND WAGES (Confnued)
Line
No.
Classiftcation
Ia)
Direct PauollDisbibufon
Ib)
p"6&?B1o&?ro'
Cl6adnqAcEounts
Total
,.ll
49 Production-Manuhctured Gas (Enter Total of lines 28 and 40)
50 Producton-Natural Gas (lncluding Expl. and Dev.) Ootal lines 29,
51 Other Gas Supply (Ent6r Total of lin€s 30 and 42)362,661
52 Sbraoe. LNG Terminalins and Procossing (Total of lines 31 thru
53 Transmission (Lines 32 and '04)il Distrlbution (Lines 33 and 45)7.039.29€
55 Customer Accor.rnts (Une 34)3,916,985
56 Cusbmer SeMce and lnformational Gine 35)113,621
57 Sales (Une 36)426,76S
5E Adminishatiw and G€neral (Unes 37 and 46)4,420.dt'.|
59 TOTAL Operation and Maint. (fotal ol lines 49 thru 58)16.280.003 522,36(16,802,36t
60 Othor Utillty Departnonts
61 Operaton and Maintenance
62 TOTAL All Utility Dept (Total of lines 25, 59, and 61)54.806.42S 1,995,91(56,E02,34:
65 Electic Plant 19,329.103 1,414,36t 20,743,471
66 Gas Plant 5,884,317 402,35:6,2E6,670
67 Other (povide detiails in foohote):
68 TOTAL Consruclion Clotal of lines 65 thru 67)25.213.42C 1,816.721 27.030j41
69 Plant Removal (Bv Utilitv Departrnents)
70 Elefiic Plant 770,751,-20,467 750,286
7'l Gas Plant 61.43(%t 62.374
72 Other (Drovide details in foohote):
73 TOTAL Plant Remoral (Total of lines 70 thru 72)8i12,183 -19.523 612,660
74 Other Accounb (Specify, provide details ln bohote):
75 Stores ExDense (163)I
76 Preliminarv Survev and lnvesliqation (1E3)2,194 2.194
77 Small Tool Exoense (l&{)62,9!r -1 1,0!12 51,898
78 Miscellaneous Dehred Debite (186)29,320,07t 32,2U N,352,32
79 Mercfiandasing Epensas (41 6)-1.57'1 .1.57'.1
80 Nonoperating expense (41 7)700,514 11.112 741,662
81 Expenditures for Certaln Civic. Political and Related Activit 185,aff 571 186,223
82 Purcfias€ and Stores Expense (960)1,311,92(-1.294.532 17.388
E:}Transportation expens€ (981 )1.37,0.834 -1.355.1 5C 19,684
84 Sookane C€ntal ODeratino Factlity Epense (985)76E,951 -764.03C 4,921
85 Clark Fork Relicensino (987)u2.zSN 442.2&'t2
86
a7
88
89
90
91
92
93
94
95 TOTAL OtherAccounts 34.167.85(-3.793.1't4 30,374,742
96 TOTAL SAI-ARIES AND WAGES 115.019.88I 115,019,888
FERC FORM NO.2 (ED.12{8)Page 355
Name of Respondent
Avista Corp.
This report is:
IX]An Original
[ ]A Resubmission
Date of Report
(Mo, Da, Yr)
April30,2004
Year Ending
Dec.31,2003
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
1. Report the inlormation specified below lor all charges made during the year
included in any account (including plant accounts) for outside consultative and
other prolessional servicss. These services include rate, management,
construction, engineering, research, financial, valualion, legal , accounting,
purchasing, advertising, labor relalions, and public relations, rendered lor the
respondent under written or oral arrangemont, ,or which aggregate payments wee
made during the year to any corporation partnership, organizaiion ol
any kind, or individual (olher than lor services as an employee or for
payments made for medical and related services) amounting to
more lhan $250,000, including payments lor legislative services,
except those which should be reporled in Account 426.4
Expenditures tor Certain Civic, Political and Related Activities.
(a) Name of Wtson or organization rendeing seruices.
(b) Total chaees for the year.
2. Designate associated @mpanies with an asteisk in column (b).
Line
No.
Description
{a}lb)
Amount
(in dollars)
{c)
1
2
3
4
5
6
7II
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
uu zregter & uo.
Bain & Company lnc.
Deloitte & Touche, LLP
Dewey Ballantine, LLP
Dorsey & Whitney, LLP
Electrical Consultanls, lnc.
Evolving Solutions, lnc.
Golder Associates, lnc.
Heller Ehrman White &...
Marsh
Paine Hamblen Coflin Brooke
Van Ness Feldman
1,575,000
392,718
1,072,667
310,977
252,679
289,914
266,715
s52,330
627,285
2,634,081
1,341.401
890,510
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FERC FORM NO.2 (ED. 12-96)Page 358 [Next page is 512]
Name ot Hesponoent
Avista Corporation
tnrs tteoon ts:1(1) E An Original
(21 tr A Resubmission
uale oI rrepon
(Mo, Da, Yr)
April30,2004
Year ot Hepon
Dec. 31, 2003
GAS STORAGE PROJECTS
Storaoe Ooerations (ln Dth) (Note: lniections and withdrawals are based on Aoencv
Aoreement and state HencnmarK Ftltnos. Aoent manaoes storaoe tacilltv and uses it as
needecl to meet Company requirements. Scheduled iniections/withdrawals are usecl)
to dstermrne oavmenl arranoements onlv.l
I ias Deliverecl to storaqe
2 January o
3 Februarv 0
4 March o
5 Aoril u
6 May 346,673
June 600.000
July 6IAuousl620.000
10 september 300.ooo
1 October o
'12 November 0
l3 December o
14 TOTAL (Enter Total of Lines 15 Thru 26)2.486.673
I5 ias withdrawn lrom slorage
16 January 775.000
1t February /u).oo0
18 March 155.OO3
't9 April 0
20 MaV o
2'l June 0
22 JUIV o
23 Auoust U
24 Septomb€r o
25 Ociober o
26 November 236,fjtO
27 December )oo
2A TOTAL (Enter Total of Lines 29 Thru 40)2.486.673
FERC FORM NO.2 (ED 12-88)Page 512
Name oI Hesponoenr
Avista Corporation
I nls Heoon ts:(1) tr An Original
(2) tr A Resubmission
Jare oT Hepon
(Mo, Da, Yr)
{pril30,2004
Year ot Heport
Dec. 31, 2003
GAS STORAGE PROJECTS (Continued)
No.
Item
h)
I Orat
Amount
llrl
Storaoe Operations (ln Dekatherms)
42 Ioo or Workino Gas End of Year (Note)1.630.003
43 Oushion Gas (lncludino Native Gas)6.586.667
44 fotal Gas in Fleservoir (Enter Total of Line 42 and Line 43)8.216.670
45 Certificated Storage Capacity 51,742,663
46 Number ol lniection - WithdrawalWells 45
47 Number of Observation Wells 48
48 Maximum Dav's Withrawal from Storaoe
49 Date of Maximum Days'Withdrawal
50 -NG TerminalCompanies (ln Mcf)
51 \umber of Tanks
52 ]apacitv of Tanks
53 -NG Volumes
54 r) Received at'Ship Rail'
55 b) Transferred to Tanks
56 c) Withdrawn from Tanks
57 il'Boil Off' Vaoorization Loss
58 e) Converted to Mcf at Tailoate of Terminal
Note: The above information represents the company's one-third share of Jackson Prairie Storal
Note: Working Gas at Year End represents the amount of gas available to the Company under th
'Benchmark lnjectionMithdrawal Schedules for JP Storage" according to the Benchmark Filings
and ldaho.
p Project.
I
e synthetic
with Washington
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FERC FORM NO.2 (ED 12-88)Page 513
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Name ot l(esPondent
Avista Corp.
lnts r(eDorl ls:(l) tr An Original
(2) tr A Resubmission
uale 01 KePort
lMo, Da, Yr)
April 30,2004
Year or KePon
Dec. 31,2003
TRANSMSSION MAINS
Show oarticulars Called for Concernins Transmission Mains*
No.
Kind of Material
(a)
Diameter of
Pipe, Inchesh)
rotar rJngm rn
Use Beginning of
Year, Feet
lc)
Laid During
Year, Feeta)
'lal(en up or
Abandoned During
Year, Feet
k)
r olar Lengrn
in Use End
of Year, Feet
/t)
I
2
3
4
5
6
7
8
9
t0ll
t2
l3
t4
l5
t6
t7
l8
l9
20
21
1.,
23
24
25
26
27
28
29
30
3l
32
33
34
35
36
37
38
39
40
4t
42
43
44
45
Steel Coated
Steel Coated
Over4"through 10"
4" or Less
723,360
26,400 ;723,360
26,40(
46 1O'IALS U t49,t6U
v a
FERC FORM NO.2 (ED 12-87)Page 514
Name or Kesponoenr
Avista Corp.
r nrs Kepon ts:(1) tr An Original
(21 n A Resubmission
Date ol Repon
(Mo, Da, Yr)
April 30,2004
Year ot Report
Dec.31,2003
DISTRIBUTION MAINS
Show particulars Called for Concemins Distribution Mains
.ine
No.
Kind of Material
lal
Diameter of
Pipe, lnches
(bt
lolill Lengm rn
Use Beginning of
Year, Feet
lcl
Laid During
Year, Feet
HI
lal(en up or
\bandoned Durin
Year, Feet(el
lorar Lengm
in Use End
ofYear, Feet(fl
1
2
3
4
5
6
7II
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
fhe Washinoton Water Power Svstem
6,048,276
1,879,143
1,148,160
1s3,610
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
s00
5,057
599
10,073
178
11,600
0
0
50
0
394,890
55,157
18,958
0
0
179,520
31,680
0
0
0
34,856
9,800
2,999
3
0
1,040
5,280
0
50
0
34,100
2,918
2,208
0
0
0
0
0
0
0
6,013,920
1,874,400
1,145,760
163,680
52,800
3,120,480
897,600
612,480
15,840
0
9,968,640
2.038,080
448,800
0
0
4,920,960
797,280
58,080
0
0
steer wrappeo
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
SteelWrapped
The Washinoton W
Less man z"2lo4'
4'to 8'
8" to 12'
Over 12'
s Svstem
Less than 2*
2" lo 4"
4" to 8'
8" to 12'
Over 12'
rter Power SvstemPlastic IPlastic IPlastic IPlastic IPlastic I
The WP Natural GarPlastic IPlastic IPlastic IPlastic IPlastic I
Less than 2'
2'lo 4'
4'to 8'
8'to 12"
Over 12'
r Svstem
Less than 2"
2'lo 4'
4" to 8'
8'to 12'
Over 12'
TOTALSI 31.513.792 704,262 93,254 32,126,8O0
Note: WP Natural Gas laid pipe is net of retirements.
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FERC FORM NO.2 Page 514-A
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Name ot Kesponoenl
Avista Corp.
r nts Kepon rs:(t)fl nn Original
(2)E A Resubmission
Date ol f{epon
(Mo, Da, Yr)
April30, 2004
r€ar ot Hepon
Dec. 31,2003
SERVICE PIPES GAS
Show the oarticulars called for conceminq the line service DiDe in possession of the respondent at the close of the year.
Line
No.
Type
la)
Diameter
in lnches
(b)
NUmDer aI
Beginning
of Year
lal
NUmOer
Added
During Yea
tdl
tumoer }<emove
or Abandoned
During Year
lel
Number
at Close
of Year
tft
AveIage
Length
in Feetht
2
3
4
5
6
7I
9
10
11
12
13
14
15
16
17
18
19
20
2'.1
22
23
24
25
26
27
water Power
1' or Less
1" thru 2"
2" 1hru4"
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" ttru4'
4" thru 8"
Over 8"
60.341't,1u
80
0
0
39,949
583
22
2
0
117,998
752
86
0
0
67,146
1,417
77
5
0
14
2
0
0
0
76
4
0
0
0
4,79t)
33
3
0
0
3,272
26
0
0
0
223
14
4
0
0
136
4
0
0
0
2il
't1
3
0
0
155
6
,|
0
0
60,132
1,122
76
0
0
39,889
583
22
2
0
122,5U
774
86
0
0
70,263
1,437
76
5
0
Not
AvailableSteel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
WP Natural Gas
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Washinoton Water Power
Plastic
Plastic
Plastic
Plastic
WP Natural Gas
Plastic
Plastic
Plastic
Plastic
TOTALS 289.592 4.220 a1 1 29t.Og1
FERC FORM NO.2 Page 514-8
Name oI l(esPondent
Avista Corp.
I NIS KCDOII IS:(l) tr An Original
(2) tr A Resubmission
uale ot KeporT
(Mo, Da, Yr)
April 30,2004
r ear oI Keport
Dec. 31,2003
CUSTOMERIS METERS
-tn€
No.
Size
la)
Twe
lh)
Make
lel
Capacity
(d)
Ov'med
Beginning
of Year
h)
Added
During Year
ln
Retired
During Year
b)
Owned
End ofYear
th)
I
2
3
4
5
6
7
8
9
l0ll
l2
l3
l4
l5
l6
Detailed inform ation not availab le.
TOTALS 305.328 t4.244 3.512 316.060
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FERC FORM NO.2 (ED 12-87)Page 514 - C
Page 519FERC FORM NO.2 (ED 12-86)
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Name or Fresponoenl
Avistia Corporation
rnts Heoon ts:(1) E An Original
(2) tr A Resubmission
uare or Hepon
(Mo, Da, Yd
April30,2004
Year or Hepon
Dec. 31, 2003
AUXILIARY PEAKING FACILITIES
r. Hepon below auxilrary lacllllles oI me responOenl lor mmed. For Oher lacilrtres, report the rated maximum daily
meeting seasonal peak demands on the respondent's delivery capacities.
iystem, such as underground storage projects, liquefied 3. For column (d), include or exclude (as appropriate) the
)etroleum gas installation, gas liquelaction plants, oil gas costofanyplantusedjointlywithanotherlacilityonthebasis
rets, etc.of predominant use, unless the auxiliary peaking lacility is
2. For column (c), for underground storage projects, a separate plant as contemplated by general instruction 12
€port the delivery capacity on February 1 of the heating of the Uniform Sptem of Accounts.
;eason overlaoDino the vear-end lor which this report is sub-
Linr
No.
Location ot
Facility
/al
Type of Facility
/b)
Maximum Daily
Delivery Capacit
of Facility.
Therms
lnl
Cost
of
Facility
(ln dollars)
Itil
was Facilry uperareo
on Day ol Highest
Transmission Peak
I)elivarv?
Yeslal No
tf)
2
3
4
5
6
7II
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
3ri!
34
35
36
37
Chehalis, Washington
Chehalis, Washington
Plymouth, Washington
Plymouth, Washington
Lovelock, Nevada
(1) Respondent is only a panicl
Repondent is charged a fer
Undergound Natural Gas
Storage Field
Undergound Natural Gas
Storage Field
Liquified Natural Gas
Storage Tanks
Liquified Natural Gas
Storage Tanks
Liquified Natural Gas
pant in the facilities, not an ow
: for demand deliverability and
1,126,670
26,540
220,000
192,000
65,350
ner.
capacity.
18,797,174
(1)
(1)
(1)
(1)
x
x
x
x
x
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
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Th6 purpose ol lhi6 schedul6 is to account for the quality
ot natural gas rec6iv€d end dglavered by th6 rBspondenl.
Natural gas rneans eiltr€r natural ga8 unmixed or any
mixturE ol natural and rnanuiaclurod gas.
Enier in column ( c ) th€ Oth as reporled in lhe
sch€dul€s indicaled lor tho ilems o, ,sceipts and
deliwiies.
lndicated in e tootrot6 the quanlitbs ot bundled sales
end lransportalion gas and sp€city tl€ line on wftktr
sudr quanlilie3 are lbt€d.
lf the respond€nl operet€s two or mor€ s),sie.lls rtii.rr
ars nol inl€rroflnoclod, submil Separate pag63 bf this
purpose. Use copios ol pages 520.
Ako indi:ate by lootroto lh€ quanliiies ot g6s not subi€ct
to Commiss|on regulaLon whi,| dk not incur FEBC
r€gulatory cosb by showing (1 ) th€ local distribution
\,olumes another iurisdiclional pip€liE deliv€red to lhe
local dislribution company po.tion ol lhe reporting
pipoline (2) lhe quan0e3lhe 'oporrine
pip€line
or intrastale tacilili€s and which the reporling pipoline received
through galh€ring tacilities or intrastiat€ lacilities, but not through any
o, th€ interstale porlion ol lhe reporling pipelin€, and (3) tr6 gEihering
line quanitiB thal wer€ not d€slin€d tor inteGtato ma,tet or thal lvere
nol transportod through any intoBtate porlbn ot th€ ropo.ling
pipeline.
7 Also indicale in a loohote (1) lho s),stem supply quanititios o, gas
that ar6 slored by fle reponing pip€lin€, during lho r€poning year and
al8o r€porled a3 sales, lrensportalbn, and compression volumes by
t l€ r€porting pip€line during lhe sarne reponiu )rear, (2) the s)rst€m
supply quanlities o, gai lhat ar€ 3torsd by $s r€porling pip€line dudng
lhe reporting ),6ar rti$ he reporling pip€line intgnds to s6ll or
lramport in a ,uture reporting )rear, and (3) contract storage
quanitilies.
8 Also indi.:ate the volurnos ol pipeline productirn fiold sabs lhal are
ancluded in both th€ companys tourl sales figure and the companys
total iransportation tilJure. Add additional rows as necesaary lo
reporl all dala, numbered 14,01, 14.02, elc.
Amount ot Dth (1)
FERC FORM NO.2 (ED.12-96)Page 520
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In 2003,aa8et,a prev ly held by Aviet,a Labe AVIJB, Inc. Av Etaowns 17.5 of Inc.
Indirect.Iy controll Pentzer Corporation, a wholly ownedlistsings on pageAvista caPital subsidiary.
103.
See Avieta Capital and Pent,zer Corporation
No.:21 Column: d50t owned by rants Americas Development,, Inc.
FERC FORM NO.2 1 450.1
Name of Respondent
Avista CorD.
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
04t30t2004
Year of Report
Dec 31. 2003
FOOTNOTE DATA
Llne No.: 23 Column: d
Name of Respondent
Avista Corp.
This Report is:
(1) X An Originale) A Resubmission
Date of Report
(Mo, Da, Yr)
0d,t30t2004
Year of Report
Dec 31.2003
FOOTNOTE DATA
,MiEc. Work Order < $50,000 - Beginning balance for 2003 is $75,798 IesB than endingbaLance tor 2002, due to the addiEion of line 35 (Care - California for $36,008) and line46 (Shareholder LawsuiE 2OO2 for $39,790.) When line 35 and ]ine 45 are added together,they equal S75 ,798.
FERC FORM NO.2 1 450.'t
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Name of Respondent
Avista Corp.
This Report is:
(1)XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
0/,l301200/-
Year of Report
Dec 31.2003
FOOTNOTE DATA
I
BPA C&RD Receipts
Contributions in Aid of Construction - Electric
Contributions in Aid of Construction - Gas
Contributions in Aid of Constnrction - OR
Contributious in Aid of Constnrction -- CA
Custonrer Uncollectibles - WA,{D
Custorner Uncollectibles - OR/CA
BETC Interest
TraDsportation Tax Depreciation Capitalized - WA/ID
Transportation Tax Depreciation Capitalized - OR/CA
Terable income Not Reported on Books
Hamilton Steet Bridge
Severance / Stock Options - Accelerated Vesting
Supplemenal Executive Retirement Plan
Non-rnonetary Purchased Power
Amortization of Centralia Gain
Book Depr-Electic (Utility Code 0, 7 & 9)
Book Depr-Gas (Utility Code I & 8)
Book Deprec (Utility Code 2)
RathdrumTu6ine Sales Tax Refund
Wood Power Inc. Buyout
Investn€nt Exchange Power - WNP 3
FASB 106-Def Amort-Postretirernent Benefis - WA Electic
FASB 106-Def Amort-Postretirenrcnt Benefits - ID Electric
FASB l06D€f Amort-Postretirenrent Benefits - WA Gas
Redenption Expense Amortization - PCBs
DSM - Electric Program Amortization
DSM -- Gas ProgramAmortization
DSM - Electric Program Amortization Sandpoint
Political Contributions
Paid Tfune Off Equalization
Sale/Lease General Office Bldg
Airplane Lease Payments
CSS Hardware kase - Principal Only
CSS Softuare kase - Principal Only
EGMA Hardware & Software Lease - Principal Only
WMS Software kase - Principal Only
Offrce Fumiture Lcase Series A - Principal only
Office Furniture Lease Series B - Principal only
Officc Funriture Lease Series C - Principal only
Offrce Fumiture kase Series D - Principal only
CIT Operating Lease
FASI06 Current Retiree Medical accnral
Rederytion Expense Amortization
Meal Disallowances
Transporadon Book Depreciation
Preferred Dividend Requirement
Deductions Recorded on Books Not Deducted for Return
180
3,978,929
3r5446
26,224
4,142
(286,005)
(121,t25)
10,246
997,200
23,040
4,948277
164,551
(526,473)
335,692
(181,376)
(1,763,806)
55,017,391
9,297,459
7,237,654
(33,828)
391,992
2,450,004
250,572
88,788
55,560
194,424
l,206,ggo
566,736
I13,388
l,44o,ooo
(100,136)
(238,028)
269,825
220,624
2,032,992
138,238
455,636
80,351
32,889
E0,057
29,027
(39,276)
(1,13 1,553)
877,910
288,000
682,946
1,094,628
81,079,648
FERC FORM NO.2 1 450.1
Name of Respondent
Avista Corp.
This Report is:
(1)XAn OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30t200/
Year of Report
Dec 3'1. 2003
FOOTNOTE OATA
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Injury & Drmages - Electric
Injury&Parnages-Gas
Injury&Damages-OR/CA
Kettle Falls Nonoperating
Gain on General Office Bldg - Elec
Gain on General Office Bldg - Gas
Clark Fork PMEs
Nez Perce settlernent - WA
Nez Perce settlernent - ID
FASB 87
Deferred Corryensation Accrual
WA Deferred Power Costs
WA Deferred Power Costs - Interest
Idaho PCA
Idaho PCA - Interest
Deferred Gas - WA
WA Deferred Gas Costs - Interest
Deferred Gas - ID
ID Deferred Gas Costs - Interest
Deferred Gas - OR
OR Deferred Gas - Interest
Deferred Gas - CA
CA Deferred Gas - Interest
WPNG DSM. OR
OR DSM - Interest
PGE Monetization
AFUDC Elec
AFUDC Gas
AFUDC - OR/CA
Officers'Life Insurance
Income Recorded on Books Not Included in Return
150,459
(39,260)
(257,555)
(228,480)
(196,092)
(65,36/.)
(26,194)
(22,008)
5,212
(67,130)
2,262,927
6,137,329
(6,873,898)
3,519,073
(9E5,150)
2,220,126
(252,t68\
3,844,023
(66,021)
(8,780,887)
(150,057)
(621,450)
(3 r,163)
(249,716)
89,993
6,2t9,439
(273,847)
(18,333)
(5,722)
(559,987)
4,677,099
26, Line No.:20 Column: b
BpA Residential Exchange -- WA & ID
WA & ID DSM TariffRider -- Elecric
WA & ID DSM TariffRider - Gas
RernovaVSalvage - Electric (Utilrty Code 0, 7 & 9)
RemovaVSalvage - Gas (Utilrty Code I & 8)
RerrovaUSalvage - OR/CA
Basic American Foods-Non-Utility
Tax Depreciation - Basic American Foods - Non-Utility
Engineering Overheads - Electric
Tax Depreciation - Electric
Tax Depreciation - Rathdrum Turbine
Engineering Overheads - Gas
Tax Depreciation - Gas
Tax Depreciation - Sandpoint Acquisition Adjustnent
Engineering Overheads - OR
Tax Depreciation - Connnon
Tax Depreciation - OR
Tax Depreciation - CA
Tax Amortization: WPNG Acquisition - OR
(423,500)
3,363,144
(616,884)
(183,243)
(36,884)
(189,586)
7,788
(16,259)
(6,000,000)
(58,754,699)
(3,518,376)
(2,000,000)
(t2,2t0,606)
(458, I 14)
(2,000,000)
(721,1t3\
(4,861,909)
(590,863)
(768,683)
FERC FORM NO.2 Pase 450.2
trooo
- TaxAmortization: WPNGAcquisition-CAIt w?NjG Acquisirion oR - Book
O WPNG AcquisitionCA - Book
O Deducfions on Return Not Cherged Ageinst Book Income
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(135,297)
l,ll'7,260
206,160
(88,791,664)
Name of Respondent
Avista Com.
This Report is:
(1)XAn OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t30no0/.
Year of Report
Dec 31,2003
FOOTNOTE DATA