2004Annual Report.pdf

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FERC FORM No. 2I3Q (02-04)
INSTRUCTIONS FOR FILING FERC FORMS 2, 2-A and 3-
GENERAL INFORMATION
Purpose
Form 2 is an annual regulatory support requirement under 18 CFR 260.1 for major interstate natural gas companies
subject to the jurisdiction of the Federal Energy Regulatory Commission. Form 2-A is an annual regulatory support
requirement under 18 CFR 260.2 for nonmajor interstate natural gas companies subject to the jurisdiction of the Federal
Energy Regulatory Commission. Form 3-0 is a quarterly regulatory support requirement which supplements Forms 2 and 2A
under 18 CFR 260.300. These reports are also considered to be a non-confidential public use forms.
II.Who Must Submit
Each Major natural gas company which meets the filing requirements of 18 CFR 260.1 must file Form 2. Each
Nonmajor natural gas company must submit Form 2-A as prescribed in 18 CFR Part 260.2. Each Major and Nonmajor
natural gas company must submit Form 3-0 as prescribed in 18 CFR Part 260.300.
Note: Major means having combined gas transported or stored for a fee exceeding 50 million Mcf in each of the three
previous calendar years.
Nonmajor means having total gas sales or volume transactions exceeding 200,000 Mcf in each of the three
previous calendar years.
III. What and Where to Submit
(a) Submit Forms 2, 2-A and 3-electronically through the Form 2/3-0 Submission Software. Retain one copy of
each report for your files.
(b) Respondents may submit the Corporate Officer Certification electronically, or file/mail an original signed Corporate
Officer Certification to:
Chief Accountant
Federal Energy Regulatory Commission
888 FirstStreet, NE
Washington, DC 20426
(c) Submit, immediately upon publication, four (4) copies of the latest annual report to stockholders and any annual
financial or statistical report regularly prepared and distributed to bondholders, security analysts, or industry associations. (Do
not include monthly and quarterly reports. Indicate by checking the appropriate box on Form 2, Page 3, List of Schedules, if
the reports to stockholders will be submitted or if no annual report to stockholders is prepared.) Mail these reports to the
address in III(c) above.
(d) For the Annual CPA certification, submit with the original submission, or within 30 days after the filing date for Form
2 or 2-A, a letter or report (not applicable to respondents classified as Class C or Class 0 prior to January 1, 1984):
(I) Contain a paragraph attesting to the conformity, in all material respects, of the schedules listed below with the
Commission s applicable Uniform Systems of Accounts (including applicable notes relating thereto and the Chief
Accountant's published accounting releases), and
(ii) be signed by independent certified public accountants or an independent
accountant certified or licensed by a regulatory authority of a State
subdivision of the U. S. (See 18 CFR 158.10-158.12 for specific qualifications.
licensed public
or other political
Reference
Comparative Balance Sheet
Statement of Income
Statement of Retained Earnings
Statement of Cash Flows
Notes to Financial Statements
Reference
Schedules Paces
110-113
114-117
118-119
120-121
122-123
Insert the Letter or report immediately following the cover sheet. When submitting after the filing date for this form, send the
letter or report to the Chief Accountant at the address indicated at III (b). Use the following form for the letter or report unless
unusual circumstances or conditions, explained in the letter or report, demand that it be varied. insert parenthetical phrases
only when exceptions are reported.
In connection with our regular examination of the financial statements of for the year ended on which we have
reported separately under date of We have also reviewed schedules of FERC Form No. 2/2A for the
year filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the requirements of the
Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting
releases. our review for this purpose included such tests of the accounting records and such other auditing procedures as
we considered necessary in the circumstances.
Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted
below) conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as
set forth in its applicable Uniform System of Accounts and published accounting releases.
State in the letter or report, which , if any, of the pages above do not conform to the Commission s requirements.
Describe the discrepancies that exist
(e) Federal, State and Local Governments and other authorized users may obtain additional blank copies to meet their
requirements free of charge from: Public Reference and Files Maintenance Branch, Federal Energy Regulatory Commission
888 First Street, NE. Room 2A, Washington, DC 20426 (202).502-8371
IV. When to Submit:
Submit Form 2 according to the filing dates contained in section 18 CFR 260.1 of the Commission s regulations. Submit Form 2-A according
to the filing dates contained in section 18 CPR 260.2 of the Commissions regulations. Submit Form 3-Q according to the filing dates contained
in section 18 CFR 260.300 of the Commission s regulations.
Where to Send Comments on Public Reporting Burden.
The public reporting burden for the Form 2 collection of information is estimated to average 1,570 hours per response,
including the time for reviewing instructions, searching existing data sources , gathering and maintaining the
data-needed, and completing and reviewing the collection of information. The public reporting burden for the Form 2A
collection of information is estimated to average 115 hours per response. The public reporting burden for the Form 3-
collection of information is estimated to average 150 hours per response. Send comments regarding these burden
estimates or any aspect of these collections of information , including suggestions for reducing burden, to the Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Attention: Mr. Michael Miller, ED-30); and
to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503
(Attention: Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if
any collection of information does not display a valid control number (44 U.C. 3512 (a)).
. .
GENERAL INSTRUCTIONS
Prepare all reports in conformity with the Uniform System of Accounts (18 CFR 101) (U.S. of A.). Interpret all
accounting words and phrases in accordance with the U. S. of A.
Enter in whole numbers (dollars or Dth) only, except where otherwise noted. (Enter cents for averages and figures per
unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where
rounding is required.) The amounts shown on all supporting pages must agree with the amounts entered on the
statements that they support. When applying thresholds to determine significance for reporting purposes, use for
balance sheet accounts the balances at the end of the current reporting period, and use for statement of income
accounts the current year s year to date amounts.
II.
III Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word IINone
where it truly and completely states the fact.
IV.For any page(s) that is not applicable to the respondent, omit the page(s) and enter IINA,II IINONE II or IINot Applicable
in column (d) on the List of Schedules, pages 2 and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" included in the
header of each page is to be completed only for resubmissions (see VII. below).
Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be
reported as positive. Numbers having a sign that is different from the expected sign must be reported by enclosing the
numbers in parentheses.
VI.
VII For any resubmissions, submit the electronic filing using the Form 2/3-0 software and send a letter identifying which
pages in the form have been revised. Send the letter to the Office of the Secretary.
VIII.Footnote and further explain accounts or pages as necessary.
IXI.Do not make references to reports of previous periods/years or to other reports in lieu of required entries, except as
specifically authorized.
Wherever (schedule) pages refer to figures from a previous period/year, the figures reported must be based upon
those shown by the report of the previous period/year, or an appropriate explanation given as to why the different
figures were used.
XI.Report all gas volumes in MMBtu and Dth.
DEFINITIONS
Btu oer cubic foot - The total heating value, expressed in Btu, produced by the combustion, at constant
pressure, of the amount of the gas which would occupy a volume of 1 cubic foot at a temperature of 60oF
if saturated with water vapor and under a pressure equivalent to that of 30oF, and under
standard gravitational force (980.665 em. per see) with air of the same temperature and
pressure as the gas, when the products of combustion are cooled to the initial temperature of gas and air
when the water formed by combustion is condensed to the liquid state (called gross heating value or total
heating value.
II. Commission Authorization -- The authorization of the Federal Energy Regulatory Commission, or
any other Commission. Name the commission whose authorization was obtained and give date of the
authorization.
III.Dekatherm - A unit of heating value equivalent to 10 therms or 1,000,000 Btu.
IV. Respondent - The person, corporation, licensee, agency, authority, or other legal entity or
instrumentality on whose behalf the report is made.
111
EXCERPTS FROM THE LA W
(Natural Gas Act, 15 V.C. 717-717w)
Sec. 10(a). Every natural-gas company shall file with the Commission such annual and other periodic or special reports as the Commission
may by rules and regulations or order prescribe as necessary or appropriate to assist the Commission in the proper administration of this act.
The Commission may prescribe the manner and form in which such reports shall be made and require from such natural-gas companies specific
answers to all questions upon which the Commission may need information. The Commission may require that such reports include, among
other things, full information as to assets and liabilities, capitalization, investment and reduction thereof, gross receipts, interest dues and paid,
depreciation, amortization, and other reserves, cost of facilities, costs of maintenance and operation of facilities for the production,
transportation, delivery, use, or sale of natural gas, costs of renewal and replacement of such facilities, transportation, delivery, use and sale of
natural gas...
Section 16. The Commission shall have power to perform all and any acts, and to prescribe, issue, make, amend, and rescind such orders, rules,
and regulations as it may find necessary or appropriate to carry out the provisions of this act. Among other things, such rules and regulations
may define accounting, technical, and trade terms used in this act; and may prescribe the form or forms of all statements declarations,
applications, and reports to be filed with the Commission, the information which they shall contain, and time within they shall be filed...
General Penalties
Sec. 21(b). Any person who willfully and knowingly violates any rule, regulation, restriction, condition, or order made or imposed by the
Commission under authority of this act, shall, in addition to any other penalties provided by law, be punished upon conviction thereof by a fine
of not exceeding $500 for each and every day during which such offense occurs.
FERC FORM NO. 1/3.Q:
REPORT OF MAJOR ELECTRIC UTiliTIES. liCENSEES AND OTHER
IDENTIFICATION
01 Exact Legal Name of Respondent
Avista Corporation
03 Previous Name and Date of Change (if name changed during year)
02 Year/Period of Report
End of 2004/04
/ /
04 Address of Principal Office at End of Period (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, W A, 99202
05 Name of Contact Person
M. K. Malquist
07 Address of Contact Person (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, W A, 99202
08 Telephone of Contact Person,/ncluding 09 This Report Is
Area Code (1) 00 An Original
[phone]
06 Title of Contact Person
Senior VP, CFO and Treasurer
(2) D A Resubmission
1 0 Date of Report
(Mo, Da, Yr)
04/25/2005
ANNUAL CORPORATE OFFICER CERTIFICATION
The undersigned officer certifies that:
I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements
of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material
respects to the Uniform System of Accounts.
01 Name 03 SignatureM. K. Malquist02 Title ///~//~4 Senior VP, CFO and Treasurer f/ V
(,4/(", IF -U 04/25/2005
Title 18, U.C. 1001 makes it a crime for any person to knowingly and willingly to make to any Agency or Department of the United States any
false, fictitious or fraudulent statements as to any matter within its jurisdiction.
04 Date Signed
(Mo, Da, Yr)
FERC FORM NO.. (REV. 02-04)Page
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report Is:
(1 ) IX) An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/25/2005
Year/Period of Report
End of 2004/04
GENERAL INFORMATION.
1 . Provide name and title of officer having custody of the general corporate books of account and address of
office where the general corporate books are kept, and address of office where any other corporate books of account
are kept, if different from that where the general corporate books are kept.
M. K. Malquist, Senior Vice President, Chief Financial Officer and Treasurer
1411 B. Mission Avenue
Spokane, WA 99202
2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation.
If incorporated under a special law, give reference to such law. If not incorporated, state that fact and give the type
of organization and the date organized.
State of Washington, Incorporated March 15, 1889
3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of
receiver or trustee, (b) date such receiver or trustee took possession , (c) the authority by which the receivership or
trusteeship was created, and (d) date when possession by receiver or trustee ceased.
Not Applicable
4. State the classes or utility and other services furnished by respondent during the year in each State in which
the respondent operated.
Electric service in the states of Washington, Idaho and Montana
. Natural gas service in the states of Washington, Idaho, Oregon, and California
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not
the principal accountant for your previous year s certified financial statements?
(1) 0 Yes...Enter the date when such independent accountant was initially engaged:
(2) IX) No
FERC FORM NO.(ED. 12-87)PAGE 101
Name of Respondent This ~rt Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) D A Resubmission 04/25/2005
CI JRPORA TIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote.
2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Definitions
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.
3. Indirect control is that which is exercised by the interposition of an intermediary 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 thevoting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by
mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of
control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owned Ref.(a)(b)(c)(d)
Avista Capital, Inc.Parent company to the 100
Company's subsidiaries.
Avista Advantage, Inc.Provider of utility bill 100 Subsidiary of
processing, payment and Avista Capital
information services to multi
site customers in North Amer.
Avista Communications, Inc.Telecommunications 100 Currently inactive
Subsidiary of
Avista Capital
Avista Development, Inc.Nonoperating company which 100 Subsidiary of
maintains an investment Avista Ventures
portfolio of real estate and
other investments.
Avista Energy, Inc.Wholesale electricity and 99.Subsidiary of
natural gas trading,marketing Avista Capital
and resource management.
Avista Laboratories, Inc.Holds a cost based investment 100
'...... ... .
in a fuel cell technology
company.
FERC FORM NO.2 (ED.12-96)Page 103
Name of Respondent This ~ort Is:Date of ReJ)ort Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/Q4(2) n A Resubmission 04/25/2005
CORPORATIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote.
2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Definitions
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.3. Indirect control is that which is exercised by the interposition of an intermediary which exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by
mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of
control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owned Ref.(a)(b)(c)(d)
Avista Power, LLC Owns non-regulated generation 100 Subsidiary of
assets.Avista Capital
Avista Services, Inc.No longer operating.100 Dissolved in 2/2004
Avista Turbine Power, Inc.Receives assignments of 100 Subsidiary of
purchase power agreements.Avista Power
Avista Rathdrum, LLC Owns 49 percent of Rathdrum 100 Subsidiary of
Power, LLC Avista Power
Avista Ventures, Inc.Invests in emerging business.100 Subsidiary of
Parent of Avista Development Avista Capital
and Pentzer Corporation
Pentzer Corporation Parent company of Advanced 100 Subsidiary of
Manufacturing and Avista Ventures
Development.
Advanced Manufacturing and Development, Inc.Performs custom sheet metal Subsidiary of
manufacturing of electronic Pentzer Corporation
enclosures, parts and systems
for the computer, telecom and
medical industries. AM&D
also has a wood products
division that provides
FERC FORM NO.2 (ED. 12-96)Page 103.
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~ An Original (Mo, Da, Yr)(2) 0 A Resubmission 04/25/2005
CI JRPORA TIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote.
2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Year/Period of Report
End of 2004/04
Definitions
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.3. Indirect control is that which is exercised by the interposition of an intermediary which exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by
mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of
control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line
No.
Name of Company Controlled Kind of Business
(a)(b)
Percent Voting
Stock Owned
(c)
Footnote
Ref.
(d)
complete fabrication and
turnkey assembly for arcade
games, kiosks, store fixtures
and displays.
Avista Receivables Corporation Acquires and sells accounts
receivable of Avista Corp.
100
Avista Energy Canada, Ltd.A wholly owned subsidiary of
Avista Energy, Inc. that
provides natural gas service
100 Subsidiary of
Avista Energy
to approximately 250
individual customers in
British Columbia, Canada
16 Rathdrum Power, LLC Developed and owns an
electric generation asset.
..'..'.\.
..ii.
. .,.
::i
19 Coyote Springs 2, LLC Developed and owns an
electric generation asset.
I .
1;;.
", .
22 WP Funding LP Owns an electric generation
asset.
Controlled pursuant
to FIN 46.
25 Spokane Energy, LLC Marketing of energy.100
FERC FORM NO.2 (ED. 12-96)Page 103.
Name of Respondent This f!Jort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
)RPORA TIONS CONTROLLED BY RESPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent
at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote.
2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
Definitions
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.
3. Indirect control is that which is exercised by the interposition of an intermediary which exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by
mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of
control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owned Ref.(a)(b)(c)(d)
Avista Capital I An affiliated business trust 100 Currently inactive.
formed by the Company.Will be dissolved
Issued Pref. Trust Securities in 2005.
Avista Capital II An affiliated business trust 100
formed by the Company.
Issued Pref. Trust Securities
AVA Capital Trust III An affiliated business trust 100
formed by the Company.
Issued Pref. Trust Securities
Steam Plant Square, LLC Commercial office and retail Subsidiary of
leasing.Avista Development
Courtyard Office Center Commercial office and retail 100 Subsidiary of
leasing.Avista Development
L&S The Highlands, Ltd.Low income housing Subsidiary of
Avista Development
L&S Chewelah Meadows, Ltd.Low income housing Subsidiary of
Avista Development
L&S The Falls, Ltd.Low income housing Subsidiary of
Avista Development
Homestead Limited Partnership Low income housing Subsidiary of
Avista Development
FERC FORM NO.2 (ED. 12-96)Page 103.
Name or Respondent This ort Is:Date or Report Year of Report
(1 ) An Original (Mo, Da, Yr)
A vista C~rp.(2) ~ A Resubmission 04/25/2005 Dec. 31 , 2004
Security Holders and Voting Powers
1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book or
compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent, and state
the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a footnote the known
particulars of the trust (whether voting trust, etc.), duration oftru~t, and principal holders of beneficiary interests in the trust. If the
company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the year, or if since it
compiled the previous list of stockholders, some other class of security has become vested with voting rights, then show such 10 security
holders as of the close of the year. Arrange the names of the security holders in the order of voting power, commencing with the highest.
Show in column (a) the titles of officers and directors included in such list of 10 security holders.
2. If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with voting
rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or contingent; if
contingent, describe the contingency.
3. If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination of
corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of the
respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material information
relating to exercise of the options, warrants or rights. Specify the amount of such securities or assets any officer, director, associated
company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to any
securities substantially all of which are outstanding in the hands of the general public where the options, warrants, or rights were issued
prorata basis.
1. Give date of the latest closing of the 2. State the total number of votes cast at the latest general 3. Give the date and place of such
stock book prior to end of year, and in a meeting prior to the end of year for election of directors of meeting:
footnote, state the purpose of such closing:the respondent and number of such votes cast by proxy.
November 24, 2004 to pay the Total:793,705 May 13, 2004
December 15, 2004 dividend.By Proxy:793 705 Spokane, Washington
VOTING SECURITIES
4. Number of votes as of (date): 11/24/2004
.....me Name (Title) and Address of Security Holder Total Votes Common Stock Preferred Stock Other
No.(a)(b)(c)(d)(e)
TOTAL votes of all voting securities 48,357 871 357,871
TOTAL number of security holders 211 16,211
TOTAL votes of security holders listed below 282 002 282 002
DBH Properties LP - Coeur d'Alene, ill 646 646
Margaret Ann Brosnan TR U/ A - Independence, OH 000 000
Alfred C. Glassell, Jr. - Houston, TX 028 30,028
Gladys L. Rikerd - Spokane, W A 671 26,671
Kay Kobayashi - Los Angeles, CA 092 092
Ernest C. Gosnay Jr. & Marie K. Gosney TRS U/ 011 011
Dated 08/18/1998 - Spokane, W A
Robert Eugene Young - Washougal, W A 000 000
Edmund M. Reeck, TR U/A - Dated 06/16/1998 Salem, OR 15,962 962
Henry P. Savage & Mildred Savage IT TEN - Kellogg, ill 15,000 000
Thomas A Lowe & Kathleen B. Lowe IT TEN 592 592
Satellite Beach, FL
FERC FORM NO.2 (ED 12-87)Page 107
Name of Respondent
Avista Corporation
This Report Is:(1) An Original
(2) 0 A Resubmission
IMPORTANT CHANGES DURING THE QUARTERIYEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in
accordance with the inquiries. Each inquiry should be answered. Enter "none,
" "
not applicable," or "NA" where applicable.
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 thefranchise rights were acquired. If acquired without the payment of consideration, state that fact.
2. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names
companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to
Commission authorization.
3. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto
and reference to Commission authorization, if any was required. Give date journal entries called for by the Uniform System of Accounts
were submitted to the Commission.
4. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give
effective dates, lengths of terms, names of parties, rents, and other condition. State name of Commission authorizing lease and give
reference to such authorization.
5. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations
began or ceased and give reference to Commission authorization, if any was required. State also the approximate number of
customers added or lost and approximate annual revenues of each class of service. Each natural gas company must also state major
new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and
approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc.
6. Obligations incurred as a result of issuance of securities or assumption of liabilities or guarantees including issuance of short-term
debt and commercial paper having a maturity of one year or less. Give reference to FERC or State Commission authorization, as
appropriate, and the amount of obligation or guarantee.
7. Changes in articles of incorporation or amendments to 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, voting trustee, associated company or known associate of any of these persons was a
party or in which any such person had a material interest.
11. (Reserved.
12. If the important changes during the year relating to the respondent company appearing in the annual report to stockholders are
applicable in every respect and furnish the data required by Instructions 1 to 11 above, such notes may be included on this page.
13. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have
occurred during the reporting period.
14. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30
percent please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the
extent to which the respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a
cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.
Date of Report
04/25/2005
Year/Period of Report
End of 2004/Q4
PAGE 108 INTENTIONALLY LEFT BLANK
SEE PAGE 109 FOR REQUIRED INFORMATION.
FERC FORM NO.2 (ED. 12-96)Page 108
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
IMPORTANT CHANGES DURING THE aUARTERlYEAR (Continued)
1 . None2 . None3 . None4 . None5. None6 . In April 2004, the Company issued Junior Subordinated Debt Securities, with a principal amount of $61.9 million toAVA Capital Trust III, a business trust. Concurrently, AVA Capital Trust III issued $60.0 million of Preferred Trust Securities to third
parties and $1.9 million of Common Trust Securities to the Company. The issuance was approved by the following state commission
orders: WUTC (Washington) docket UE-040329 Order No.1; IPUC (Idaho) case A VU-04-01 Order No. 29447; OPUC (Oregon)
UF 4202 Order No. 04 162; CPUC (California) application 00-04-011 decision 00-06-064; and Montana Commission docket 6690
Order No. 4535.
The Company used the proceeds from the Junior Subordinated Debt Securities to redeem $61.9 million of7.875 percent
Junior Subordinated Deferrable Interest Debentures, Series A, originally issued in .1997 to A vista Capital I, a business trust. A vistaCapital I used these proceeds to redeem $60.0 million of Preferred Trust Securities issued to third parties and $1.9 million of Common
Trust Securities issued to the Company. Reference is made to Note 11 of Notes to Financial Statements, page 123 of this Report.
In November 2004, the Company issued $90.0 million of 5.45 percent First Mortgage Bonds due in 2019. TheCompany used the proceeds to repay a portion of the borrowings outstanding under its committed line of credit. This debt was issued
under a registration statement filed on Form S-3 with the Securities and Exchange Commission. The issuance was approved by the
following state commission orders: WUTC (Washington) docket UE-031 031 Order No.1; IPUC (Idaho) case A VU-03-3 Order No.29266; OPUC (Oregon) docket UF-4198 Order No. 03-347; CPUC (California) application 00-04-011 decision 00-06-064; and
Montana Commission docket 6690 Order No. 4535. Reference is made to Note 10 of Notes to Financial Statements, page 123 of thisReport.
On May 6, 2004, the Company amended its committed line of credit with various banks to increase the available amount
to $350.0 million from $245.0 million and extend the expiration date to May 5 2005. On December 17 2004, the Company entered
into a five-year committed line of credit with various banks in the amount of $350.0 million with an expiration date of December 16
2009. This committed line of credit replaced a $350.0 million committed line of credit with a 364-day term that had an expiration date
of May 5 2005. Reference is made to Note 12 of Notes to Financial Statements, page 123 of this Report.
In December 2004, the Company issued $172.6 million of non-transferable First Mortgage Bonds (Collateral Bonds)
under its Mortgage and Deed of Trust, dated as of June 1, 1939, as amended and supplemented (Mortgage), in order to provide the
benefit of the lien of the Mortgage to secure its obligations with respect to previously issued and outstanding unsecured debt securities
including $88.9 million of its Medium Term Notes, Series C and the municipal bond insurance policies insuring $83.7 million of
Pollution Control Revenue Bonds issued for the benefit of the Company by the City ofForsytb, Montana. The Collateral Bonds were
issued in order to suspend certain negative covenants, which had limited the Company s ability to issue additional secured debt. The
issuance was approved by the following state commission orders: WUTC (Washington) dockets UE-971300 and UE-011475 Order
No.2; IPUC (Idaho) case A VU-04-3 Order No. 29643; OPUC (Oregon) dockets UF-4153(1), UF-4185(1) and UF-4079(1) Order
No. 04-689; CPUC (California) application 00-04-011 decision 00-06-064; and Montana Commission docket 6690 Order No. 4535.
Reference is made to Note 10 of Notes to Financial Statements, page 123 of this Report.7. No changes in articles of incorporation or amendments to charter. The Bylaws of Avista Corporation were amended on
August 13 2004. The amendments include the addition of Section 11 of Article II, which provides specific procedures forshareholders to propose business to be brought before the Annual Meeting of Shareholders.
The amendments also include the addition of the following sentences to Section 2 of Article III: No person may be elected or
re-elected as a director if at the time of their election or re-election, such person shall have attained the age of seventy (70) years. Any
director who attains such age while in office shall retire from the Board of Directors effective at the Annual Meeting of Shareholders
held in the year in which their then current term expires, and any such director shall not be nominated or re-elected as a director.
Additionally, Section 15 of Article III was deleted from the Bylaws of A vista Corporation, which previously stated: Directors who are
eventy (70) years of age or more shall retire from the Board effective at the conclusion of the Annual Meeting of Shareholders held in
I FERC FORM NO.2 (ED. 12-96) Page 109.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
IMPORTANT CHANGES DURING THE OUARTERNEAR (Continued)
the year in which their term expires, and any such Director shall not be nominated for election at such Annual Meeting. The foregoing
shall be effective in 1988 and thereafter as to any Director who is seventy (70) years of age or more during the year in which his or her
term expires.8. Average annual wage increases were 2.7% during 2004 for non-exempt personnel. Annual wage increases were 3.4%
for exempt employees (including officers) during 2004. Bargaining unit employees were granted increases of 3.5% during 2004.9. Reference is made to Note 21 of Notes to Financial Statements, page 123 of this Report.10. None11. Reserved12. See Notes to Financial Statements at Page 123 of this Report.13. In February 2004, D.A. Brukardt, Vice President and Treasurer, resigned. M.K. Malquist was named Treasurer in
February 2004. In January 2004, T.L. Syms, Vice President and Assistant to the Chairman, retired. In February 2004, D.J. Meyer was
named Vice President and Chief Counsel for Regulatory and Governmental Affairs. D.J. Meyer was previously Senior Vice President
and General Counsel. Don Kopczynski was named Vice President in May 2004. Michael L. Noel was elected as a director in 2004.14. Proprietary capital is not less than 30 percent.
I FERC FORM NO.(ED. 12-96)Page 109.
This Report Is: Date of Report
(1) (XI An Original (Mo, Da, Yr)
(2) D A Resubmission 04/25/2005
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Current Year
End of QuarterlYear
Balance
(c)
Name of Respondent
Avista Corporation
Line
No.Title of Account
(a)
UTILITY PLANT
Ref.
Page No.
(b)
Year/Period of Report
End of 2004/04
Prior Year
End Balance
12/31
(d)
--'-'--------.. . . .. .. ... ......
200-201 631 344,033 544 618,721
200-201 895,113 49,615,389
681,239,146 594,234 110
200-201 928,445,545 886 846,714
752 793,601 707 387 396
202-203
202-203
752 793,601 707 387 396
122
---... .. . .. . .. ....
272 992
135,292
13,403,000
256,786,600
264 833
118,011
13,403 000
255 904,488
Utility Plant (101-106,114)
Construction Work in Progress (107)
TOTAL Utility Plant (Enter Total of lines 2 and 3)
(Less) Accum. Provo for Depr. Amort. Depl. (108, 110, 111, 115)
Net Utility Plant (Enter Total of line 4 less 5)
Nuclear Fuel in Process of Ref., Conv.,Enrich., and Fab. (120.
Nuclear Fuel Materials and Assemblies-Stock Account (120.
Nuclear Fuel Assemblies in Reactor (120.
Spent Nuclear Fuel (120.
Nuclear Fuel Under Capital Leases (120.
(Less) Accum. Provo for Amort. of Nucl. Fuel Assemblies (120.
Net Nuclear Fuel (Enter Total of lines 7-11 less 12)
Net Utility Plant (Enter Total of lines 6 and 13)
Utility Plant Adjustments (116)
Gas Stored Underground - Noncurrent (117)
OTHER PROPERTY AND INVESTMENTS
Nonutility Property (121)
(Less) Accum. Provo for Depr. and Amort. (122)
Investments in Associated Companies (123)
Investment in Subsidiary Companies (123.
(For Cost of Account 123., See Footnote Page 224, line 42)
Noncurrent Portion of Allowances
Other Investments (124)
Sinking Funds (125)
Depreciation Fund (126)
Amortization Fund - Federal (127)
Other Special Funds (128)
Special Funds (Non Major Only) (129)
Long-Term Portion of Derivative Assets (175)
Long-Term Portion of Derivative Assets - Hedges (176)
TOTAL Other Property and Investments (Lines 18-21 and 23-31)
CURRENT AND ACCRUED ASSETS
Cash and Working Funds (Non-major Only) (130)
Cash (131)
Special Deposits (132-134)
Working Fund (135)
Temporary Cash Investments (136)
Notes Receivable (141)
Customer Accounts Receivable (142)
Other Accounts Receivable (143)
(Less) Accum. Provo for Uncollectible Acct.-Credit (144)
Notes Receivable from Associated Companies (145)
Accounts Receivable from Assoc. Companies (146)
Fuel Stock (151)
Fuel Stock Expenses Undistributed (152)
Residuals (Elec) and Extracted Products (153)
Plant Materials and Operating Supplies (154)
Merchandise (155)
Other Materials and Supplies (156)
Nuclear Materials Held for Sale (157)
Allowances (158.1 and 158.
224-225
228-229
227
227
227
227
227
227
202-203/227
228-229
. ." ..... ... .......... . . .. .. .
182 363
246 110
55,824,772
386,580,545
335,128
16,429,928
516,248
365 735,614
.------ ---.-
239,043
572 613
495,365
699 209
153,770
067 151
4,433,112
810,071
000,000
610 682
049 604
867,767
136,438
577 122
143,327
45,726 942
175,943
281 537
40,018 082
10,855
395,349
522 082
FERC FORM NO.2 (REV. 12-03)Page 110
Name of Respondent
A vista Corporation
This Report Is: Date of Report
(1 ) (ZI An Original (Mo, Da, Yr)
(2) D A Resubmission 04/25/2005 End of
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)Continued)
Current Year
End of QuarterlYear
Balance
(c)
Year/Period of Report
2004/04
Prior Year
End Balance
12/31
(d)
Line
No.Ref.
Page No.
(b)
Title of Account
(a)
(Less) Noncurrent Portion of Allowances
Stores Expense Undistributed (163)
Gas Stored Underground - Current (164.
Liquefied Natural Gas Stored and Held for Processing (164.164.
Prepayments (165)
Advances for Gas (166-167)
Interest and Dividends Receivable (171)
Rents Receivable (172)
Accrued Utility Revenues (173)
Miscellaneous Current and Accrued Assets (174)
Derivative Instrument Assets (175)
(Less) Long-Term Portion of Derivative Instrument Assets (175)
Derivative Instrument Assets - Hedges (176)
(Less) Long-Term Portion of Derivative Instrument Assets - Hedges (176
Total Current and Accrued Assets (Lines 34 through 66)
DEFERRED DEBITS
Unamortized Debt Expenses (181)
Extraordinary Property Losses (182.
Unrecovered Plant and Regulatory Study Costs (182.
Other Regulatory Assets (182.
Prelim. Survey and Investigation Charges (Electric) (183)
Preliminary Natural Gas Survey and Investigation Charges 183.
Other Preliminary Survey and Investigation Charges (183.
Clearing Accounts (184)
Temporary Facilities (185)
Miscellaneous Deferred Debits (186)
Def. Losses from Disposition of Utility PIt. (187)
Research, Devel. and Demonstration Expend. (188)
Unamortized Loss on Reaquired Debt (189)
Accumulated Deferred Income Taxes (190)
Unrecovered Purchased Gas Costs (191)
Total Deferred Debits (lines 69 through 83)
TOTAL ASSETS (lines 14-16,, 67, and 84)
16,858,709 20,113,211
230
230
232 231 982 032 239,863,731
084,058 12,156,159
728,989 510,244
233 242,169 083,253
352-353
554,021 28,712,173
234 50,892,673 34,222 386
28,639,755 15,352 084
428,982,406 438 013,241
709,777 595 645,755,525
62,610
268,257
724 434
899 276
19,493
391 040
82,082
66,023,684
55,824,772
141,421 043
-496,415
176,453
640,745
092,491
961
459,233
610,557
39,499,770
516,248
134 619,274
227
. . .... .......... .... . .. .. ,.. .. .... ....
FERC FORM NO.2 (REV. 12-03)Page 111
Name of Respondent This Report is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (mo, dB, yr)
(2)A Rresubmission 04/25/2005 end of 2004/04
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line Current Year Prior Year
No.Ref.End of OuarterNear End Balance
Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
PROPRIETARY CAPITAL
Common Stock Issued (201)250-251 629,055,981 626,787 347
Preferred Stock Issued (204)250-251
Capital Stock Subscribed (202, 205)252
Stock Liability for Conversion (203, 206)252
Premium on Capital Stock (207)252
Other Paid-In Capital (208-211)253
Installments Received on Capital Stock (212)252
(Less) Discount on Capital Stock (213)254
(Less) Capital Stock Expense (214)254 10,676,498 10,949 795
Retained Earnings (215, 215., 216)118-119 91,642,291 854,919
Unappropriated Undistributed Subsidiary Earnings (216.118-119 211,690 022,832
(Less) Reaquired Capital Stock (217)250-251
Noncorporate Proprietorship (Non-major only) (218)
Accumulated Other Comprehensive Income (219)122(a)(b)21,157 918 355,089
Total Proprietary Capital (lines 2 through 15)753,075,546 752 360,214
LONG-TERM DEBT
Bonds (221)256-257 521 300,000 431,300,000
(Less) Reaquired Bonds (222)256-257
Advances from Associated Companies (223)256-257 114,803,000 114 836,826
Other Long-Term Debt (224)256-257 497,427 068 576,532 661
Unamortized Premium on Long-Term Debt (225)
(Less) Unamortized Discount on Long-Term Debt-Debit (226)608,182 994,486
Total Long-Term Debt (lines 18 through 23)131 921 886 120,675 001
OTHER NONCURRENT LIABILITIES
Obligations Under Capital Leases - Noncurrent (227)028,272 807 168
Accumulated Provision for Property Insurance (228.
Accumulated Provision for Injuries and Damages (228.188,972 299,994
Accumulated Provision for Pensions and Benefits (228.754,150 897 551
Accumulated Miscellaneous Operating Provisions (228.
Accumulated Provision for Rate Refunds (229)
Long-Term Portion of Derivative Instrument Liabilities
Long-Term Portion of Derivative Instrument Liabilities - Hedges 39,971 987 060 110
Asset Retirement Obligations (230)190,714 659 307
Total Other Noncurrent Liabilities (lines 26 through 34)90,134 095 73,724 130
CURRENT AND ACCRUED LIABILITIES
Notes Payable (231)
Accounts Payable (232)444 650 421,782
Notes Payable to Associated Companies (233)
Accounts Payable to Associated Companies (234)909,608 19,845,113
Customer Deposits (235)286,185 4,452,327
Taxes Accrued (236)262-263 313,430 241,055
Interest Accrued (237)18,632,069 18,484,237
Dividends Declared (238)
Matured Long-Term Debt (239)
FERC FORM NO.2 (rev. 12-03)Page 112
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1)An Original (mo, da, yr)
(2)A Rresubmission 04/25/2005 end of 2004/Q4
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDIT~ntinued)
Line Current Year Prior Year
No.Ref.End of QuarterlY ear End Balance
Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
Matured Interest (240)
Tax Collections Payable (241)736
Miscellaneous Current and Accrued Liabilities (242)15,927,496 275 405
Obligations Under Capital Leases-Current (243)946,251 633 401
Derivative Instrument Liabilities (244)
(Less) Long-Term Portion of Derivative Instrument Liabilities
Derivative Instrument Liabilities - Hedges (245)45,684 937 36,057,271
(Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges 39,971,987 33,060 110
Total Current and Accrued Liabilities (lines 37 through 53)133,174,375 132 350,481
DEFERRED CREDITS
Customer Advances for Construction (252)937,286 978,187
Accumulated Deferred Investment Tax Credits (255)266-267 570,960 620,268
Deferred Gains from Disposition of Utility Plant (256)
Other Deferred Credits (253)269 33,121,416 008,549
Other Regulatory Liabilities (254)278 34,700,436 13,027,706
Unamortized Gain on Reaquired Debt (257)225 371 696,571
Accum. Deferred Income Taxes-Accel. Amort.(281)272-277
Accum. Deferred Income Taxes-Other Property (282)293,535,925 265,021,296
Accum. Deferred Income Taxes-Other (283)234 380,299 248,293,122
Total Deferred Credits (lines 56 through 64)601,471,693 566,645,699
TOTAL LIABILITIES AND STOCKHOLDER EQUITY (lines 16,35,54 and 65)709,777 595 645,755,525
FERC FORM NO.2 (rev. 12-03)Page 113
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
STATEMENT OF INCOME
1. Enter in column (e) operations for the reporting quarter and in column (f) the operations for the same three month period for the prior
year.
2. Report in Column (g) year to date amounts for electric utility function; in column (i) the year to date amounts for gas utility, and in (k)
the year to date amounts for the other utility function for the current quarter/year.
3. Report in Column (h) year to date amounts for electric utility function; in column 0) the year to date amounts for gas utility, and in (I)
the year to date amounts for the other utility function for the previous quarter/year.
4. If additional columns are needed place them in a footnote.
Line Total Total Current 3 Months Prior 3 Months
No.Current Year to Prior Year to Ended Ended
(Ref.Date Balance for Date Balance for Quarterly Only Quarterly Only
Title of Account Page No.QuarterlY ear QuarterlY ear No 4th Quarter No 4th Quarter
(a)(b)(c)(d)(e)(ij
UTILITY OPERATING INCOME
Operating Revenues (400)300-301 000,167,839 929,400,226
Operating Expenses
Operation Expenses (401)320-323 706,876,899 628,688.576
Maintenance Expenses (402)320-323 34,361,705 30,395.326
Depreciation Expense (403)336-337 65,095,728 65.752,096
Depreciation Expense for Asset Retirement Costs (403.336-337
Amort. & Depl. of Utility Plant (404-405)336-337 682.080 151.368
Amort. of Utility Plant Acq. Adj. (406)336-337 99,066 99.048
Amort. Property Losses. Unrecov Plant and Regulatory Study Costs (407)733 693
Amort. of Conversion Expenses (407)
Regulatory Debits (407.230,801 218,244
(Less) Regulatory Credits (407.12.638.745 10,449,403
Taxes Other Than Income Taxes (408.262-263 66,293,271 60,791,111
Income Taxes - Federal (409.262-263 019.926 22,613,266
- Other (409.262-263 302.010 282,899
Provision for Deferred Income Taxes (410.234, 272-277 17,792,760 291,061
(Less) Provision for Deferred Income Taxes-Cr. (411.234, 272-277 013,788 678.097
Investment Tax Credit Adj. - Net (411.266 -49,308 -49,308
(Less) Gains from Disp. of Utility Plant (411.
Losses from Disp. of Utility Plant (411.7)
(Less) Gains from Disposition of Allowances (411.
Losses from Disposition of Allowances (411.9)
Accretion Expense (411.10)
TOTAL Utility Operating Expenses (Enter Total of lines 4 thru 24)887.046,672 808,102,494
Net Util Oper Inc (Enter Tot line 2 less 25) Carry to Pg117,line 27 113,121.167 121 297.732
FERC FORM No.(REV. 02-04)Page 114
Name of Respondent This (!)ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) D A Resubmission 04/25/2005
STATEMENT OF INCOME FOR THE YEAR (Continued)
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY
Current Year to Date Previous Year to Date Current Year to Date Previous Year to Date Current Year to Date Previous Year to Date Line
(in dollars)(in dollars)(in dollars)(in dollars)(in dollars)(in dollars)No.
(g)
(h) (i) (k) (I)
447,578,339 406,888 146 259,298,560 221,800,430
28,475,946 25,258,364 885,759 136,962
50,720,406 50,578,273 375,322 15,173,823
708,236 790,075 973,844 361,293
99,066 99,048
733 693
230 801 218,244
12,638,745 10,449,403
46,434,772 43,903,386 19,858 499 16,887 725
13,754,983 25,776,211 735,057 162,945
135,937 972,732 166,073 310,167
664,355 172,553 10,128,405 118,508
939,086 554,927 702 123,170
-49 308 -49,308
584,988,476 546,430,765 302,058,196 261 671,729
94,686,037 105,680,685 18,435,130 15,617 047
FERC FORM No.2 (ED. 12-96)Page 115
Name of Respondent
A vista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
STATEMENT OF INCOME FOR THE YEAR (continued)
TOTALLine
No.
Title of Account
(a)
(Ref.
Page No.
(b)
27 Net Utility Operating Income (Camed forward from page 114)
28 Other Income and Deductions
29 Other Income
30 Nonutilty Operating Income
31 Revenues From Merchandising, Jobbing and Contract Work (415)
32 (Less) Costs and Exp. of Merchandising, Job. & Contract Work (416)
33 Revenues From Nonutility Operations (417)
34 (Less) Expenses of Nonutility Operations (417.
35 Nonoperating Rental Income (418)
36 Equity in Earnings of Subsidiary Companies (418.
37 Interest and Dividend Income (419)
38 Allowance for Other Funds Used During Construction (419.
39 Miscellaneous Nonoperating Income (421)
40 Gain on Disposition of Property (421.1)
41 TOTAL Other Income (Enter Total of lines 31 thru 40)
42 Other Income Deductions
43 Loss on Disposition of Property (421.2)
44 Miscellaneous Amortization (425)
45 Donations (426.
46 Life Insurance (426.
47 Penalties (426.
48 Exp. for Certain Civic, Political & Related Activities (426.4)
49 Other Deductions (426.
50 TOTAL Other Income Deductions (Total of lines 43 thru 49)
51 Taxes Applic. to Other Income and Deductions
52 Taxes Other Than Income Taxes (408.
53 Income Taxes-Federal (409.
54 Income Taxes-Other (409.
55 Provision for Deferred Inc. Taxes (410.
56 (Less) Provision for Deferred Income Taxes-Cr. (411.
57 Investment Tax Credit Adj.Net (411.
58 (Less) Investment Tax Credits (420)
59 TOTAL Taxes on Other Income and Deductions (Total of lines 52-58)
60 Net Other Income and Deductions (Total of lines 41, 50, 59)
61 Interest Charges
62 Interest on Long-Term Debt (427)
63 Amort. of Debt Disc. and Expense (428)
64 Amortization of Loss on Reaquired Debt (428.
65 (Less) Amort of Premium on Debt-Credit (429)
66 (Less) Amortization of Gain on Reaquired Debt-Credit (429.
67 Interest on Debt to Assoc. Companies (430)
68 Other Interest Expense (431)
69 (Less) Allowance for Borrowed Funds Used During Construction-Cr. (432)
70 Net Interest Charges (Total of lines 62 thru 69)
71 Income Before Extraordinary Items (Total of lines 27,60 and 70)
72 Extraordinary Items
73 Extraordinary Income (434)
74 (Less) Extraordinary Deductions (435)
75 Net Extraordinary Items (Total of line 73 less line 74)
76 Income Taxes-Federal and Other (409.
77 Extraordinary Items After Taxes (line 75 less line 76)
78 Net Income (Total of line 71 and 77)
119
340
340
262-263
262-263
262-263
234, 272-277
234, 272-277
340
340
262-263
Current Year
(c)
113,121,167
Previous Year
(d)
121,297,732
Year/Period of Report
End of 2004/04
rior on s
Ended
Quarterly Only
No 4th Quarter
(ij
-----::.:-..;:.:,.::.:;;.::..
.::.:c.::.
,..
C'::::::
::.:::.:;;:,:;;:::'
c:,
:::.:,...~.::
:,;:c:c::::.::::::c::::...;
::::=:::;
~n .:C,C::'
~::;:"::::::::'.
':::::;'C::;;::'
:::'
:C'::':'c;"'::::::::::::,
::;.;;:::=::;'
,c::.
:.::::.::::::;::,.. .. , , .. .. .. .. ... . ... ..
22,042
650
220,086
704
381,428
10,586,797
885,496
424,383
15,024,622
789
17,014
130
609,187
-4,377
156,784
12,050,635
853,013
89,613
20,555,154
---, . .. .. .. .. .... .
276
323,416
512,357
1,426,086
10,038
859,247
224 942
357,362
282 852
323,416
466,094
336,171
29,978
816,842
270,939
5,466,336I .
. .. .. . . .'., .. "..... ..... .... .
41,313
797,319
373,290
040,980
133,706
-627,384
294,644
97,503
129,828
-481,773
968,974
-66,775
326,645
12,762,173
------ ---..-- ------,-- -~---,--. .. .. .. .. .. .
73,356,536
689,417
611,956
782,104
389,246
567,308
86,261,951
35,153,860
81,021,259
907,423
064,380
1,480,337
320,268
238,014
89,555,653
504,252
---. .:. '. .. ... .. .,.
n.
. .. .. .
35,153,860 504,252
FERC FORM NO.Page 117(REV. 02-04)
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
STATEMENT OF RETAINED EARNINGS
1. Do not report Lines 49-53 on the quarterly version.
2. Report all changes in appropriated retained earnings, unappropriated retained earnings, year to date, and unappropriated
undistributed subsidiary earnings for the year.
3. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the contra primary account affected in column (b)
4. State the purpose and amount of each reservation or appropriation of retained earnings.
5. List first account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow
by credit, then debit items in that order.
6. Show dividends for each class and series of capital stock.
7. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Earnings.
8. Explain in a footnote the basis for determining the amount reserved or appropriated. If such reservation or appropriation is to be
recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated.
9. If any notes appearing in the report to stockholders are applicable to this statement, include them on pages 122-123.
Year/Period of Report
End of 2004/04
Line
No.
Item
(a)
UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1 Balance-Beginning of Period
2 Changes
3 Adjustments to Retained Earnings (Account 439)
5 Stock Options Exercised
6 ESOP and other adjustment
7 Dividends received from Subsidiaries
9 TOTAL Credits to Retained Earnings (Acet. 439)
15 TOTAL Debits to Retained Earnings (Acct. 439)
16 Balance Transferred from I ncome (Account 433 less Account 418.1 )
17 Appropriations of Retained Earnings (Acct. 436)
22 TOTAL Appropriations of Retained Earnings (Acct. 436)
23 Dividends Declared-Preferred Stock (Account 437)
29 TOTAL Dividends Declared-Preferred Stock (Acct. 437)
30 Dividends Declared-Common Stock (Account 438)
36 TOTAL Dividends Declared-Common Stock (Acct. 438)
37 Transfers from Acet 216., Unapprop. Undistrib. Subsidiary Earnings
38 Balance - End of Period (Total 1,15,16,22,29,36,37)
APPROPRIATED RETAINED EARNINGS (Account 215)
Contra Primary
ccount Affected
(b)
Current
QuarterN ear
Year to Date
Balance
Previous
QuarterNear
Year to Date
Balance
-- ~.-"',,:'
80,306 7 58,838 O
-408,940
155,137
499 315
144 553)
170,109
990.037
245,512 10,015,593
. ----.--
-- r--
~---- ------
772,432 35.347,468
------- --- . --------'----
155,438)
. ... . '
.1 . .
. .. ... .' ... ....... .. . ... ... .... .. ..... .. ... .. ..
155,438)
923 827 ( 23,633,569)
.............".=...............
923,827
693 255
90,094,170
( 23.633.569)
894,719
80.306,798
FERC FORM NO.(REV. 02-04)Page 118
Name of Respondent
A vista Corporation
This ~ort Is: Date of Report(1) ~ An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
STATEMENT OF RETAINED EARNINGS
1. Do not report Lines 49-53 on the quarterly version.
2. Report all changes in appropriated retained earnings, unappropriated retained earnings, year to date, and unappropriated
undistributed subsidiary earnings for the year.
3. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436
- 439 inclusive). Show the contra primary account affected in column (b)
4. State the purpose and amount of each reservation or appropriation of retained earnings.
5. List first account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow
by credit, then debit items in that order.
6. Show dividends for each class and series of capital stock.
7. Show separately the State and Federal income tax effect of items shown in account 439, Adjustments to Retained Earnings.
8. Explain in a footnote the basis for determining the amount reserved or appropriated. If such reservation or appropriation is to be
recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated.
9. If any notes appearing in the report to stockholders are applicable to this statement, include them on pages 122-123.
Year/Period of Report
End of 2004/Q4
Line
No.
45 TOTAL Appropriated Retained Earnings (Account 215)
APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.
46 TOTAL Approp. Retained Earnings-Amort. Reserve. Federal (Acet. 215.
47 TOTAL Approp. Retained Earnings (Acct. 215. 215.1) (Total 45,46)
48 TOTAL Retained Earnings (Acct. 215, 215.1, 216) (Total 38, 47) (216.
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account
Report only on an Annual Basis, no Quarterly
49 Balance-Beginning of Year (Debit or Credit)
50 Equity in Earnings for Year (Credit) (Account 418.
51 (Less) Dividends Received (Debit)
52 Subsidiary expense in Account 417.
53 Balance-End of Year (Total lines 49 thru 52)
Contra Primary
ccount Affected
(b)
Current
QuarterN ear
Year to Date
Balance
(c)
548,121
Item
(a)
548,121
Previous
QuarterN ear
Year to Date
Balance
(d)
548.121
r--
~ ---------------
548,121
- I----
--~._-----_._-;--..... .'..'............ .
548,121
642 291
022 832
381,428
2,499.315
693,255
211 690
548.121
81,854,919
65,750,804
156.784
990,037
894,719)
022,832
FERC FORM NO.Page 119(REV. 02-04)
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
STATEMENT OF CASH FLOWS
Year/Period of Report
End of 2004/04
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-tenn debt; (c) Include commercial paper, and (d) Identify separately such items asinvestments, fixed assets, intangibles, etc.
(2) Infonnation about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between "Cash and CashEquivalents at End of Period" with related amounts on the Balance Sheet.
(3) Operating Activities - Other. Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported
in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid.
(4) Investing Activities: Include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to
the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the
dollar amount of leases capitalized with the plant cost.
Line
No.
Description (See Instruction No.1 for Explanation of Codes)Current Year to Date
QuarterlY ear
(b)
Previous Year to Date
QuarterlYear
(c)(a)
1 Net Cash Flow from Operating Activities:
2 Net Income (Line 78(c) on page 117)
3 Noncash Charges (Credits) to Income:
Depreciation and Depletion
5 Power and natural gas deferrals
6 Amortization of debt expense
7 Amortization of investment in exchange power
8 Deferred Income Taxes (Net)
9 Investment Tax Credit Adjustment (Net)
10 Net (Increase) Decrease in Receivables
11 Net (Increase) Decrease in Inventory
12 Net (Increase) Decrease in Allowances Inventory
13 Net Increase (Decrease) in Payables and Accrued Expenses
14 Net (Increase) Decrease in Other Regulatory Assets
15 Net Increase (Decrease) in Other Regulatory Liabilities
16 (Less) Allowance for Other Funds Used During Construction
17 (Less) Undistributed Earnings from Subsidiary Companies
18 Other (provide details in footnote):
19 ESOP dividends
20 Allowance for uncollectible receivables
21 Other non-current assets and liabilities
22 Net Cash Provided by (Used in) Operating Activities (Total 2 thru 21)
24 Cash Flows from Investment Activities:
25 Construction and Acquisition of Plant (including land):
26 Gross Additions to Utility Plant (less nuclear fuel)
27 Gross Additions to Nuclear Fuel
28 Gross Additions to Common Utility Plant
29 Gross Additions to Nonutility Plant
30 (Less) Allowance for Other Funds Used During Construction
31 Other (provide details in footnote):
32 Deposits for utility plant acquisition
34 Cash Outflows for Plant (Total of lines 26 thru 33)
36 Acquisition of Other Noncurrent Assets (d)
37 Proceeds from Disposal of Noncurrent Assets (d)
39 Investments in and Advances to Assoc. and Subsidiary Companies
40 Contributions and Advances from Assoc. and Subsidiary Companies
41 Disposition of Investments in (and Advances to)
42 Associated and Subsidiary Companies
44 Purchase of Investment Securities (a)
45 Proceeds from Sales of Investment Securities (a)
871,141
037,057
301 374
2,450 004
917 518
-49,308
751 148
609,238
73,998 819
535 312
971,803
450,004
38,791 463
-49,308
650,796
433
204,745
008,005
2,401 353
452 804
381,428
11,615,102
143,775
528,534
640,532
124 535,814
167 229
630,827
334 617
192 697
156,784
803,240
167 506
-407 128
849,925
144 510,439
116,391 951 105,617 593
581 511
000 000
121 391,951 106,199 104m .mmmm.mmmommmmommo.mmmmmmmmmmm .mmmm . 0 mmmo mommmmommm
477 634 482 872
615 571
499,315
344 568
990,036-. .mmmm mOmmm.... mmmmmmm.o. m. .m. .mm
rm mmm mmm.mmmmmm
mmm .m
FERC FORM NO.2 (ED.12-96)Page 120
Name of Respondent
Avista Corporation
This ~ort Is:(1) ~An Original(2) A Resubmission
STATEMENT OF CASH FLOWS
Date of Report
(Mo, Da, Yr)
04/25/2005
Year/Period of Report
End of 2004/Q4
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-tenn debt; (c) Include commercial paper, and (d) Identify separately such items as
investments, fixed assets, intangibles, etc.
(2) Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between .Cash and Cash
Equivalents at End of Period. with related amounts on the Balance Sheet.
(3) Operating Activities - Other. Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported
in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid.
(4) Investing Activities: Include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to
the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the
dollar amount of leases capitalized with the plant cost.
Line
No.
Description (See Instruction No.1 for Explanation of Codes)
(a)
Current Year to Date
QuarterN ear
(b)
Previous Year to Date
QuarterN ear
(c)
46 Loans Made or Purchased
47 Collections on Loans
49 Net (Increase) Decrease in Receivables
50 Net (Increase) Decrease in Inventory
51 Net (Increase) Decrease in Allowances Held for Speculation
52 Net Increase (Decrease) in Payables and Accrued Expenses
53 Other (provide details in footnote):
54 Changes in other property and investments
55 Gain on disposition of property
56 Net Cash Provided by (Used in) Investing Activities
57 Total of lines 34 thru 55)
59 Cash Flows.from Financing Activities:
60 Proceeds from Issuance of:
61 Long-Term Debt (b)
62 Preferred Stock
63 Common Stock
64 Other (provide details in footnote):
65 Long-term debt to affiliated trusts
66 Net Increase in Short-Term Debt (c)
67 Other (provide details in footnote):
68 Cash received in interest rate swap agreement
70 Cash Provided by Outside Sources (Total 61 thru 69)
72 Payments for Retirement of:
73 Long-term Debt (b)
74 Preferred Stock
75 Common Stock
76 Long-term debt to affiliated trusts
77 Premiums paid for the repurchase of long-term debt
78 Net Decrease in Short-Term Debt (c)
79 Long-term debt and short-term borrowing issuance costs
80 Dividends on Preferred Stock
81 Dividends on Common Stock
82 Net Cash Provided by (Used in) Financing Activities
83 (Total of lines 70 thru 81)
85 Net Increase (Decrease) in Cash and Cash Equivalents
86 (Total of lines 22,57 and 83)
88 Cash and Cash Equivalents at Beginning of Period
90 Cash and Cash Equivalents at End of period
616,550
73,000
775
1,435,673
-424 383
848,976
89,760,600 795,250
061 241 775 591
856,000
50,000,000
125,000
155 802,841 98,570,841
. .'. '... ..
r--~--~-~
66,186 722 124 033,279
750,000 574,266
61,856,000
710,409 709,769
12,000,000
148,807 2,429,756
155,438
912,464 23,633,569n..........
............................ ....................... .......
.n....
.,.............
.nn
....... ........
...........n......... ..................
........... .................
23,761,561 55,965,236
955,531 584 011
FERC FORM NO.2 (ED. 12-96)Page 121
Name of Respondent
Avista Corporation
This Report Is:(1) An Original(2) 0 A Resubmission
NOTES TO FINANCIAL STATEMENTS
1. Use the space below for important notes regarding the Balance Sheet, Statement of Income for the year, Statement of Retained
Earnings for the year, and Statement of Cash Flows, or any account thereof. Classify the notes according to each basic statement
providing a subheading for each statement except where a note is applicable to more than one statement.
2. Furnish particulars (details) as to any significant contingent assets or liabilities existing at end of year, including a brief explanation of
any action initiated by the Internal Revenue Service involving possible assessment of additional income taxes of material amount, or of
a claim for refund of income taxes of a material amount initiated by the utility. Give also a brief explanation of any dividends in arrears
on cumulative preferred stock.
3. For Account 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 Instruction 17 of the Uniform System of Accounts.
5. Give a concise explanation of any retained earnings restrictions and state the amount of retained earnings affected by such
restrictions.
6. If the notes to financial statements relating to the respondent company appearing in the annual report to the stockholders are
applicable and furnish the data required by instructions above and on pages 114-121 , such notes may be included herein.
7. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not
misleading. Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be
omitted.
8. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred
which have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently
completed year in such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements;
status of long-term contracts; capitalization including significant new borrowings or modifications of existing financing agreements; and
changes resulting from business combinations or dispositions. However were material contingencies exist, the disclosure of such
matters shall be provided even though a significant change since year end may not have occurred.
9. Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are
applicable and furnish the data required by the above instructions, such notes may be included herein.
Date of Report
04/25/2005
Year/Period of Report
End of 2004/Q4
PAGE 122 INTENTIONALLY LEFT BLANK
SEE PAGE 123 FOR REQUIRED INFORMATION.
FERC FORM NO.2 (ED. 12-96)Page 122
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corporation (Avista Corp. or the Company) is an energy company engaged in the generation, transmission and distribution of
energy. Avista Corp. generates, transmits and distributes electricity in parts of eastern Washington and northern Idaho. In addition
A vista Corp. has electric generating facilities in western Montana and northern Oregon. A vista Corp. also provides natural gas
distribution service in parts of eastern Washington, northern Idaho, northeast and southwest Oregon and in the South Lake Tahoe
region of California. In July 2004, the Company entered into an agreement to sell its South Lake Tahoe natural gas distribution
properties (see Note 23 for further information), which is subject to regulatory approval. Avista Capital, a wholly owned subsidiary of
A vista Corp., is the parent company of the subsidiary companies in the non-utility business segments.
The Company s operations are exposed to risks including, but not limited to, the price and supply of purchased power, fuel and natural
gas, regulatory recovery of power and natural gas costs and capital investments, streamflow and weather conditions, the effects of
changes in legislative and governmental regulations, changes in regulatory requirements, availability of generation facilities
competition, technology and availability of funding. Also, like other utilities, the Company s facilities and operations may be exposed
to terrorism risks or other malicious acts. In addition, the energy business exposes the Company to the fInancial, liquidity, credit and
commodity price risks associated with wholesale purchases and sales.
Basis of Reporting
The fInancial statements include the assets, liabilities, revenues and expenses of the Company. As required by the Federal Energy
Regulatory Connnission (FERC), the Company accounts for its investment in majority-owned subsidiaries on the equity method rather
than consolidating the assets, liabilities, revenues, and expenses of these subsidiaries, as required by accounting principles generally
accepted in the United States of America. The accompanying fInancial statements include the Company s proportionate share of utility
plant and related operations resulting from its interests in jointly owned plants (See Note 6). In addition, under the requirements of the
FERC, there are differences from accounting principles generally accepted in the United States of America in the presentation of (I)
current portions of long-term debt, short-term borrowings, and preferred stock, (2) assets and liabilities for cost of removal of assets
(3) assets held for sale, and (4) regulatory assets and liabilities.
Use of Estimates
The preparation of the fmancial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect amounts reported in the fmancial statements. Significant
estimates include determining unbilled revenues, the market value of derivative assets and liabilities, pension and other postretirement
benefit plan obligations, contingent liabilities and recoverability of regulatory assets. Changes in these estimates and assumptions are
considered reasonably possible and may have a material effect on the fInancial statements and thus actual results could differ from the
amounts reported and disclosed herein.
System of Accounts
The accounting records of the Companys utility operations are maintained in accordance with the uniform system of accounts
prescribed by the FERC and adopted by the appropriate state regulatory connnissions.
Regulation
The Company is subject to state regulation in Washington, Idaho, Montana, Oregon and California. The Company is also subject to
federal regulation by the FERC.
Operating Revenues
Operating revenues for A vista Corp. related to the sale of energy are generally recorded when service is rendered or energy is
delivered to customers. The determination of the energy sales to individual customers is based on the reading of their meters, which
occurs on a systematic basis throughout the month. At the end of each calendar month, the amount of energy delivered to customers
since the date of the last meter reading is estimated and the corresponding unbilled revenue is estimated and recorded. Accounts
receivable includes unbilled energy revenues of$13.0 million (net of $48.9 million ofunbilledreceivables sold) and $9.0 million (net
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
of $47.0 million of unbilled receivables sold) as of December 31, 2004 and 2003, respectively. See Note 3 for information withrespect to the sale of accounts receivable.
Advertising Expenses
The Company expenses advertising costs as incurred. Advertising expenses totaled $1.7 million, $1.3 million and $1.2 million in
2004, 2003 and 2002, respectively.
Taxes other than income taxes
Taxes other than income taxes include state excise taxes, city occupational and franchise taxes, real and personal property taxes and
certain other taxes not based on net income. These taxes are generally based on revenues or the value of property. Utility related taxes
collected from customers are recorded as both operating revenue and expense and totaled $35.0 million, $31.7 million and $33.
million in 2004, 2003 and 2002, respectively.
Income Taxes
The Company and its eligible subsidiaries file consolidated federal income tax returns. Subsidiaries are charged or credited with the
tax effects of their operations on a stand-alone basis. The Company s federal income tax returns were examined with all issues
resolved, and all payments made, through the 2000 return. The Internal Revenue Service is currently examining the Company s 2001
2002 and 2003 federal income tax returns.
The Company accounts for income taxes under Statement of Financial Accounting Standards (SFAS) No. 109
, "
Accounting for
Income Taxes." Under SFAS No. 109, a deferred tax asset or liability is determined based on the enacted tax rates that will be in
effect when the differences between the fInancial statement carrying amounts and tax basis of existing assets and liabilities are
expected to be reported in the Company s consolidated income tax returns. The deferred tax expense for the period is equal to the net
change in the deferred tax asset and liability accounts from the beginning to the end of the period. The effect on deferred taxes of a
change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax liabilities and regulatory assets
have been established for tax benefits flowed through to customers as prescribed by the respective regulatory conunissions.
Stock-Based Compensation
The Company follows the disclosure only provisions of SFAS No. 123
, "
Accounting for Stock-Based Compensation.Accordingly,
employee stock options are accounted for under Accounting Principle Board Opinion (APB) No. 25
, "
Accounting for Stock Issued to
Employees." Stock options are granted at exercise prices not less than the fair value of common stock on the date of grant. UnderAPB No. 25, no compensation expense is recognized pursuant to the Company s stock option plans. See Note 2 with respect to the
revision of SF AS No. 123, which will result in the recognition of compensation expense beginning in the third quarter of 2005.
If compensation expense for the Company s stock option plans were determined consistent with SF AS No. 123, net income and
earnings per common share would have been the following pro forma amounts for the years ended December 31
2004 2003 2002
$35 154 $44 504 $31 307
033 186 051lliJl!
$0.$0.$0.
$0.$0.$0.54
$0.$0.$0.
$0.$0.$0.
Net income (dollars in thousands):
As reported
Deduct: Total stock-based employee compensation expense
determined under the fair value method for all awards, net of tax
Pro forma
Basic earnings per common share:
As reported
Pro forma
Diluted earnings per common share:
As reported
Pro forma
Earnings Per Common Share
Basic earnings per conunon share is computed by dividing income available for common stock by the weighted average number of
common shares outstanding for the period. Diluted earnings per common share is calculated by dividing income available for common
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
stock by diluted weighted average common shares outstanding during the period, including common stock equivalent shares
outstanding using the treasury stock method, unless such shares are anti-dilutive. Common stock equivalent shares include shares
issuable upon exercise of stock options, contingently issuable shares and restricted stock. See Note 19 for earnings per common share
calculations.
Cash and Cash Equivalents
For the purposes of the Statements of Cash Flows, the Company considers all temporary investments with a maturity when purchased
of three months or less to be cash equivalents. Cash and cash equivalents include cash deposits from counterparties.
Special Deposits
Special deposits represent $0.6 million of restricted cash related to Avista Corp.'s interest rate swap agreements. See Note 13 for
further information with respect to Avista Corp.s interest rate swap agreements.
Accumulated Provision for Uncollectible Accounts
The Company maintains an accumulated provision for uncollectible accounts to provide for estimated and potential losses on accounts
receivable. The Company detennines the allowance for customer accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues. Additionally, the Company establishes specific allowances for certain individual
accounts. The following table documents the activity in the accumulated provision for uncollectible accounts during the years ended
December 31 (dollars in thousands):
Accumulated provision as of the beginning of the year
Additions expensed during the year
Net deductions
Accumulated provision as of the end of the year
2004
281
195
(2.666)
2003
689
762
(2.J70)
2002
950
392
(3.653
Materials and supplies, fuel stock and natural gas stored
Inventories of materials and supplies, fuel stock and natural gas stored are recorded at the lower of cost or market, primarily using the
average cost method.
Utility Plant
The cost of additions to utility plant, including an allowance for funds used during construction and replacements of units of property
and improvements, is capitalized. Costs of depreciable units of property retired plus costs of removal less salvage are charged to
accumulated depreciation.
Allowance for Funds Used During Construction
The Allowance for Funds Used During Construction (AFUDC) represents the cost of both the debt and equity funds used to fmance
utility plant additions during the construction period. In accordance with the uniform system of accounts prescribed by regulatory
authorities, AFUDC is capitalized as a part of the cost of utility plant and the debt related portion is credited currently as a non-cash
item in the Statements of Income. The Company generally is permitted, under established regulatory rate practices, to recover the
capitalized AFUDC, and a fair return thereon, through its inclusion in rate base and the provision for depreciation after the related
utility plant is placed in service. Cash inflow related to AFUDC generally does not occur until the related utility plant is placed in
service and included in rate base.
The effective AFUDC rate was 9.72 percent for 2004, 2003 and the second half of 2002 and 9.03 percent for the fIrst half of 2002.
The Companys AFUDC rates do not exceed the maximum allowable rates as detennined in accordance with the requirements of
regulatory authorities.
Depreciation
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing unit rates for generation
plants and composite rates for other utility plant. Such rates are designed to provide for retirements of properties at the expiration of
their service lives. The rates for hydroelectric plants include annuity and interest components, in which the interest component is 9
percent. For utility operations, the ratio of depreciation provisions to average depreciable property was 2.92 percent in 2004, 2.
I FERC FORM NO.2 _ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
percent in 2003 and 2.92 percent in 2002.
The average service lives for the following broad categories of utility property are: electric thermal production - 30 years;
hydroelectric production - 77 years; electric transmission - 43 years; electric distribution - 47 years; and natural gas distribution
property - 35 years.
The Company recovers certain asset retirement costs through rates charged to customers as a portion of its depreciation expense.
These costs do not represent legal or contractual obligations.
Regulatory Deferred Charges and Credits
The Company prepares its fmancial statements in accordance with the provisions of SF AS No. 71
, "
Accounting for the Effects of
Certain Types of Regulation." The Company prepares its fmancial statements in accordance with SF AS No. 71 because (i) the
Company s rates for regulated services are established by or subject to approval by an independent third-party regulator; (ii) theregulated rates are designed to recover the Company s cost of providing the regulated services; and (iii) in view of demand for the
regulated services and the level of competition, it is reasonable to assume that rates can be charged to and collected from customers at
levels that will recover the Company s costs. SF AS No. 71 requires the Company to reflect the impact of regulatory decisions in its
fmancial statements. SFAS No. 71 requires that certain costs and/or obligations (such as incurred power and natural gas costs not
currently recovered through rates, but expected to be recovered in the future) are reflected as deferred charges on the Balance Sheets.
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 Company determines that it no longer meets the criteria for continued application of
SFAS No. 71 with respect to all or a portion of the Company s regulated operations, the Company could be required to write-off its
regulatory assets. The Company could also be precluded from the future deferral of costs not recovered through rates at the time such
costs are incurred, even if the Company expected to recover such costs in the future.
The Company s primary regulatory assets include power and natural gas deferrals (see "Power Cost Deferrals and Recovery
Mechanisms" and "Natural Gas Cost Deferrals and Recovery Mechanisms" below for further information), investment in exchange
power, regulatory asset for deferred income taxes, unamortized debt expense, demand side management programs, conservation
programs and the provision for postretirement benefits. Regulatory assets that are not currently included in rate base, being recovered
in current rates or earning a return (accruing interest), totaled $3.2 million as of December 31 2004.
Regulatory liabilities include utility plant retirement costs. Deferred credits include, among other items, regulatory liabilities created
when the Centralia Power Plant was sold, regulatory liabilities offsetting net energy commodity derivative assets (see Note 4 for
further information) and the gain on the general office building sale/leaseback, which is being amortized over the life of the lease.
Investment in Exchange Power-Net
The investment in exchange power represents the Company s previous investment in Washington Public Power Supply System Project
3 (WNP-3), a nuclear project that was terminated prior to completion. Under a settlement agreement with the Bonneville Power
Administration in 1985, Avista Corp. began receiving power in 1987, for a 32.year period, related to its investment in WNP-
Through a settlement agreement with the Washington Utilities and Transportation Commission (WUTC) in the Washington
jurisdiction, A vista Corp. is amortizing the recoverable portion of its investment in WNP-3 (recorded as investment in exchange
power) over a 32.5 year period beginning in 1987. For the Idaho jurisdiction, Avista Corp. has fully amortized the recoverable portion
of its investment in exchange power. Investment in Exchange Power-Net is included in Other Investments on the Balance Sheets.
Unamortized Debt Expense and Unamortized Loss on Reacquired Debt
Unamortized debt expense and Unamortized loss on reacquired debt includes debt issuance costs that are amortized over the life of the
related debt, as well as premiums paid to repurchase debt, which are amortized over the average remaining maturity of outstanding
debt in accordance with regulatory accounting practices under SFAS No. 71. These costs are recovered through retail rates as a
component of interest expense.
Natural Gas Benchmark Mechanism
The Idaho Public Utilities Commission (IPUC), WUTC and Oregon Public Utility Commission (OPUC) approved Avista Corp.
Natural Gas Benchmark Mechanism in 1999. The mechanism eliminated the majority of natural gas procurement operations within
Avista Corp. and placed responsibility for natural gas procurement operations with Avista Energy, Inc. (A vista Energy), the
I FERC FORM NO.(ED. 12-88)Page 123.
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(1) An Original (Mo, Da, Yr)
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NOTES TO FINANCIAL STATEMENTS (Continued)
Company s non-regulated subsidiary. The ownership of the natural gas assets remains with Avista Corp.; however, the assets have
been managed by A vista Energy through an Agency Agreement. A vista Corp. has continued to manage natural gas procurement for its
California operations, which the Company has entered into an agreement to sell (see Note 23).
In the fIrst quarter of 2002, the IPUC and the OPUC approved the continuation of the Natural Gas Benchmark Mechanism and related
Agency Agreement through March 31 2005. In February 2004, the WUTC ordered that the Natural Gas Benchmark Mechanism and
related Agency Agreement be terminated for Washington customers and ordered A vista Corp. to file a transition plan to move
management of these functions back into Avista Corp. In April 2004, the WUTC approved Avista Corp.s transition plan, which
provides for the movement of these functions back into Avista Corp. to be completed by March 31 2005. Effective April 1, 2005, the
Company will also be moving these functions from A vista Energy to A vista Corp. for Idaho and Oregon natural gas customers with
the expiration of the current agreements.
Power Cost Deferrals and Recovery Mechanisms
A vista Corp. defers the recognition in the income statement of certain power supply costs as approved by the WUTC. Deferred power
supply costs are recorded as a deferred charge on the Balance Sheets 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 A vista Corp. and the
costs included in base retail rates. This difference in power supply costs primarily results from changes in short-term wholesale market
prices, changes in the level of hydroelectric generation and changes in the level of thermal generation (including changes in fuel
prices). A vista Corp. accrues interest on deferred power costs in the Washington jurisdiction at a rate, which is adjusted semi-annually,
of 8.4 percent as of December 31 2004. Total deferred power costs for Washington customers were $113.2 million and $125.
million as of December 31 2004 and 2003, respectively.
In Washington, the Energy Recovery Mechanism (ERM) allows A vista Corp. to increase or decrease electric rates periodically with
WUTC approval to reflect changes in power supply costs. The ERM provides for A vista Corp. to incur the cost of, or receive the
benefit from, the first $9.0 million in annual power supply costs above or below the amount included in base retail rates. Under the
ERM, 90 percent of annual power supply costs exceeding or below the initial $9 .0 million are deferred for future surcharge or rebate to
A vista Corp.s customers. The remaining 10 percent of power supply costs are an expense of, or benefit to, the Company.
Under the ERM, A vista Corp. 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 transactions for the prior calendar year. The ERM provides for a 90-day
review period for the filing; however, the period may be extended by agreement of the parties or by WUTC order. In August 2004, the
WUTC issued an order, which approved the recovery of$22.8 million of deferred power costs incurred in 2003.
A vista Corp. has a power cost adjustment (PCA) mechanism in Idaho that allows it to modify electric rates periodically with IPUC
approval. Under the PCA mechanism, A vista Corp. defers 90 percent of the difference between certain actual net power supply
expenses and the authorized level of net power supply expense approved in the last Idaho general rate case. A vista Corp. accrues
interest on deferred power costs in the Idaho jurisdiction at a rate, which is adjusted annually, of 1.0 percent on current year deferrals
and 3.0 percent on carryover balances as of December 31 , 2004. In October 2004, the IPUC issued its fmal order with respect to
general electric and natural gas rate cases filed by A vista Corp. in Idaho. The fmal order required A vista Corp. to write off a total of
$12.0 million (recorded as operation expenses in the Statements of Income) of certain deferred power costs, including associated
accrued interest, related to natural gas contracts entered into by A vista Corp. to provide fuel for its generating facilities. The IPUC
authorized the recovery of the remaining deferred power costs over a two-year period through a PCA rate surcharge to customers.
Total deferred power costs for Idaho customers were $9.5 million and $30.3 millionas of December 31 2004 and 2003, respectively.
Natural Gas Cost Deferrals and Recovery Mechanisms
Under established regulatory practices in each respective state, A vista Corp. is allowed to adjust its natural gas rates periodically (with
regulatory approval) to reflect increases or decreases in the cost of natural gas purchased. Differences between actual natural gas costs
and the natural gas costs already included in retail rates are deferred and charged or credited to expense when regulators approve
inclusion of the cost changes in rates. Total deferred natural gas costs were $28.6 million and $15.4 million as of December 31 2004
and 2003, respectively.
Reclassifications
Certain prior period amounts were reclassified to conform to current statement format. These reclassifications were made for
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
comparative purposes and to conform to changes in accounting standards and have not affected previously reported total net income or
stockholders' equity.
NOTE 2. NEW ACCOUNTING STANDARDS
In May 2003, the Financial Accounting Standards Board (FASB) issued SF AS No. 150
, "
Accounting for Certain Financial Instruments
with Characteristics of Both Liabilities and Equity." This statement requires the Company to classify certain fInancial instruments as
liabilities that have historically been classified as equity. This statement requires the Company to classify as a liability financial
instruments that are subject to mandatory redemption at a specified or determinable date or upon an event that is certain to occur. This
statement was effective for fInancial instruments 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 fmancial statements for prior periods was not
permitted. The adoption of this statement required the Company to classify preferred stock subject to mandatory redemption as a
liability (included in long-term debt) on the Balance Sheets. The adoption of this statement also required the Company to classify
preferred stock dividends subsequent to July 1, 2003 as interest expense in the Statements of Income.
In January 2003 , the FASB issued Interpretation No. 46
, "
Consolidation of Variable Interest Entities " which was revised in December
2003 (collectively referred to as FIN 46). In general, a variable interest entity does not have equity investors with voting rights or it
has equity investors that do not provide sufficient fmancial resources for the entity to support its activities. Variable interest entities
are commonly referred to as special purpose entities or off-balance sheet structures; however, FIN 46 applies to a broader group ofentities. FIN 46 requires a variable interest entity to be consolidated by the primary beneficiary of that entity. The primary beneficiary
is subject to a majority of the risk of loss from the variable interest entity's activities or it is entitled to receive a majority of the entity'
residual returns. FIN 46 also requires disclosure of variable interest entities that a company is not required to consolidate but in which
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 the fIrst fiscal year or interim period ending after
December 15, 2003. Application for all other types of entities was required for periods ending after March 15, 2004.
FIN 46 resulted in the Company no longer including the capital trusts formed for the purpose of issuing preferred trust securities in its
fmancial statements for the period ended December 31 , 2003 and thereafter. The capital trusts are considered variable interest entities
under the provisions of FIN 46. As Avista Corp. is not the primary beneficiary, these entities are no longer included in Avista Corp.'s
fInancial statements. The sole assets of the capital trusts are $113.4 million of junior subordinated deferrable interest debentures of
A vista Corp. and the deconsolidation of these entities resulted in these debentures being reflected on the Balance Sheets as advances
from associated companies. Interest on debt to associated companies in the Statements of Income represents interest expense on these
debentures.
See Note 7 for a discussion of a F ASB Staff Position with respect to postretirement medical benefit obligations.
In December 2004, the FASB issued SFAS No. 123R, "Accounting for Stock-Based Compensation " which supersedes APB No. 25
and its related implementation guidance. This statement establishes standards for the accounting for transactions in which the
Company exchanges its equity instruments for goods or services with a primary focus on transactions in which the Company obtains
employee services in share-based payment transactions. The statement requires that the compensation cost relating to share-based
payment transactions be recognized in fInancial statements based on the fair value of the equity or liability instruments issued. The
Company will be required to implement the provisions of this statement beginning in the third quarter of 2005. The Company expects
to record compensation expense (net of tax) of approximately $0.5 million in 2005 and $0.3 million in 2006 related to the periodic
vesting of stock options granted to employees in prior years. As the Company is not currently granting stock options to employees, the
prospective provisions of this statement are not expected to have a material effect on the Company s future fmancial condition, results
of operations or cash flows.
NOTE 3. ACCOUNTS RECEIVABLE SALE
A vista Receivables Corp. (ARC) is a wholly owned, bankruptcy-remote subsidiary of the Company formed for the purpose ofacquiring or purchasing interests in certain accounts receivable, both billed and unbilled, of the Company. On May 29, 2002, ARC
the Company and a third-party fmancial institution entered into a three-year agreement whereby ARC can sell without recourse, on a
revolving basis, up to $100.0 million of those receivables. In April 2004, the revolving amount available for sale was reduced to
I FERC FORM NO.2 JED. 12-Page 123.
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(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
$85.0 million. ARC is obligated to pay fees that approximate the purchasers cost of issuing commercial paper equal in value to the
interests in receivables sold. The amount of such fees is included in operating expenses of the Company. As of December 31 , 2004
and 2003, $72.0 million in accounts receivables were sold under this revolving agreement.
NOTE 4. UTILITY ENERGY COMMODITY DERIVATIVE ASSETS AND LIABILITIES
SF AS No. 133
, "
Accounting for Derivative Instruments and Hedging Activities " as amended by SF AS No. 138 and SF AS No. 149
establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities. It requires the recording of all derivatives as either assets or liabilities on the balance sheet
measured at estimated fair value and the recognition of the unrealized gains and losses. In certain dermed conditions, a derivative may
be specifically designated as a hedge for a particular exposure. The accounting for derivatives depends on the intended use of the
derivatives and the resulting designation.
A vista Corp. enters into forward contracts to purchase or sell energy. Under these forward contracts, A vista Corp. commits to
purchase or sell a specified amount of energy at a specified time, or during a specified period, in the future. Certain of these forward
contracts are considered derivative instruments. A vista Corp. also records derivative commodity assets and liabilities for
over-the-counter and exchange-traded derivative instruments as well as certain long-term contracts. These contracts are entered into as
part of Avista Corp.s management of its loads and resources as discussed in Note 5. In conjunction with the issuance of SFAS No.
133, the WUTC and the IPUC issued accounting orders authorizing Avista Corp. to offset any derivative assets or liabilities with a
regulatory asset or liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on
energy commodity transactions until the period of settlement. The order provides for A vista Corp. to not recognize the unrealized gain
or loss on utility derivative commodity instruments in the Statements of Income. Realized gains or losses are recognized in the period
of settlement, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in
adjustments to retail rates through purchased gas cost adjustments, the ERM and the PCA mechanism.
Prior to the adoption of SFAS No. 149 on July 1, 2003, Avista Corp. elected the normal purchases and sales exception for
substantially all of its contracts for both capacity and energy under SFAS No. 133. As such, Avista Corp. was not required to record
these contracts as derivative commodity assets and liabilities. Under SFAS No. 149, substantially all new forward contracts to
purchase or sell power and natural gas used for generation, which were entered into on or after July 1 2003, are recorded as assets or
liabilities at market value with an offsetting regulatory asset or liability. Contracts that are not considered derivatives under SF AS No.
133 are generally accounted for at cost until they are settled or realized, unless there is a decline in the fair value of the contract that is
determined to be other than temporary. Utility energy commodity derivatives consisted of the following as of December 31 (dollars in
thousands) :
Current utility energy commodity derivative asset
Current utility energy commodity derivative liability
Non-current utility energy commodity derivative asset
Non-current utility energy commodity derivative liability
Net regulatory liability
2004
$10 199
713
55,825
33,490
821
2003
983
997
517
060
443
The offsetting net regulatory liability is included in other regulatory liabilities on the Balance Sheets.
NOTE S. ENERGY COMMODITY TRADING
The Company s is exposed to risks relating to, but not limited to, changes in certain commodity prices, interest rates and counterparty
performance. In order to manage the various risks relating to these exposures, A vista Corp. utilizes derivative instruments, such as
forwards, futures, swaps and options. A vista Corp. uses a variety of techniques to manage risks for their energy resources and
wholesale energy market activities. The Company has risk management policies and procedures to manage these risks, both qualitative
and quantitative. The Company s Risk Management Committee establishes the Company s risk management policies and procedures
and monitors compliance. The Risk Management Committee is comprised of certain Company officers and other individuals and is
overseen by the Audit Committee of the Company s Board of Directors.
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FI NANCIAL STATEMENTS (Continued)
A vista Corp. 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. A vista Corp. sells and purchases wholesale electric
capacity and energy to and from utilities and other entities as part of the process of acquiring resources to serve its retail and wholesale
load obligations. These transactions range from a term as short as one hour up to long-term contracts that extend beyond one year.
Avista Corp. makes continuing projections of (I) future retail and wholesale loads based on, among other things, forward estimates of
factors such as customer usage and weather as well as historical data and contract terms and (2) resource availability based on, among
other things, estimates of streamflows, generating unit availability, historic and forward market information and experience. On the
basis of these continuing projections, Avista Corp. 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 electric wholesale market purchases for the
operation of Avista Corp.s own resources, as well as other wholesale transactions to capture the value of available generation and
transmission resources. This optimization process includes entering into fInancial and physical hedging transactions as a means of
managing risks.
A vista Corp. manages the impact of fluctuations in electric energy prices by measuring and controlling the volume of energy imbalance
between projected loads and resources and through the use of derivative commodity instruments for hedging purposes. Load/resource
imbalances within a rolling 18-month planning horizon are compared against established volumetric guidelines and management
determines the timing and specific actions to manage the imbalances. Management also assesses available resource decisions and
actions that are appropriate for longer-term planning periods. A vista Energy is responsible for the daily management of natural gas
supplies to meet the requirements of Avista Corp.s customers in the states of Washington, Idaho and Oregon. In February 2004, the
WUTC ordered that these functions be moved back to A vista Corp. for Washington customers, and in April 2004, the WUTC
approved Avista Corp.'s transition plan to move these functions back into Avista Corp. by March 31 2005. Effective April I, 2005
the Company will also be moving these functions back to A vista Corp. for Idaho and Oregon customers with the expiration of current
agreements. As part of the transition plan, Avista Corp. has begun procuring natural gas for load service. This procurement process
includes entering into fInancial and physical hedging transactions as a means of managing risks. See description of Natural Gas
Benchmark Mechanism in Note I for further information. Avista Corp. has continued to manage natural gas procurement for its
California operations, which the Company has entered into an agreement to sell (see Note 23 for further information).
Market Risk
Market risk is, in general, the risk of fluctuation in the market price of the commodity being traded and is influenced primarily by
supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instruments. Market
risk is influenced to the extent that the performance or nonperformance by market participants of their contractual obligations and
commitments affect the supply of, or demand for, the commodity. The Company manages the market risks inherent in its activities
according to risk policies established by the Company s Risk Management Committee.
Credit Risk
Credit risk relates to the risk of loss that A vista Corp. would incur as a result of non-performance by counterparties of their contractual
obligations to deliver energy or make fmancial settlements. A vista Corp. often extends credit to counterparties and customers. 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.
Should a counterparty, customer or supplier fail to perfonn, Avista Corp. may be required to replace existing contracts with contracts
at then-current market prices or to honor the underlying commitment. A vista Corp. seeks to mitigate credit risk by applying specific
eligibility criteria to existing and prospective counterparties and by actively monitoring current credit exposures. These policies
include an evaluation of the fmancial condition and credit ratings of counterparties, collateral requirements or other credit
enhancements, such as letters of credit or parent company guarantees, and the use of standardized agreements that allow for the netting
or offsetting of positive and negative exposures associated with a single counterparty.
Credit risk also involves the exposure that counterparties perceive related to the ability of A vista Corp. to perform deliveries and
settlement under physical and fmancial energy contracts. These counterparties may seek assurances of performance in the form of
letters of credit, prepayment or cash deposits. In periods of price volatility, the level of exposure can change significantly, with the
result that sudden and significant demands may be made against the Company s capital resource reserves (credit facilities and cash).
A vista Corp. actively monitors the exposure to possible collateral calls and take steps to minimize capital requirements.
I FERC FORM NO.. (ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Oa, Yr)
Avista Corporation (2)A Resubmlssion 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Other Operating Risks
In addition to conunodity price risk, Avista Corp.s conunodity positions are subject to operational and event risks including, among
others, increases in load demand, transmission or transport disruptions, fuel quality specifications, changes in regulatory requirements
forced outages at generating plants and disruptions to information systems and other administrative tools required for normal
operations. A vista Corp. also has exposure to weather conditions and natural disasters that can cause physical damage to property,
requiring repairs to restore utility service. The emergence of terrorism threats, both domestic and foreign, is a risk to the entire utility
industry, including A vista Corp. Potential disruptions to operations or destruction of facilities from terrorism or other malicious acts
are not readily determinable. The Company has taken various steps to mitigate terrorism risks and to prepare contingency plans in the
event that its facilities are targeted.
NOTE 6. JOINTLY OWNED ELECTRIC FACILITIES
As of December 31 , 2004, the Company had a 50 percent ownership interest in a combined cycle natural gas-fIred turbine power plant
the Coyote Springs 2 Generation Plant (Coyote Springs 2) located in north-central Oregon, which was placed into operation in 2003.
The Companys share of related fuel costs as well as operating and maintenance expenses for plant in service are included in the
corresponding accounts in the Statements of Income. The Company s share of utility plant for Coyote Springs 2 was $108.8 million
and accumulated depreciation was $6.7 million as of December 31 , 2004. In January 2005, the Company acquired the remaining 50
percent ownership interest in Coyote Springs 2 at a price of $62.5 million. See Note 24 for further information.
The Company has a 15 percent ownership interest in a twin-unit coal-fired generating facility, the Colstrip Generating Project
(Colstrip) located in southeastern Montana, and provides fmancing for its ownership interest in the project. The Company s share of
related fuel costs as well as operating and maintenance expenses for plant in service are included in the corresponding accounts in the
Statements of Income. The Company s share of utility plant for Colstrip was $320.2 million and accumulated depreciation was $172.4
million as of December 31 2004.
NOTE 7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The Company has a deemed benefit pension plan covering substantially all of its regular full-time employees at Avista Corp. and
Avista Energy. Individual benefits under this plan are based upon the employee s years of service and average compensation as
specified in the plan. The Company s funding policy is to contribute at least the minimum amounts that are required to be funded
under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income
tax purposes. The Company made $15 million in cash contributions to the pension plan in 2004 and $12 million in each of 2003 and
2002. The Company expects to contribute approximately $15 million to the pension plan in 2005.
The Finance Committee of the Company s Board of Directors establishes investment policies, objectives and strategies to seek
optimum return for the pension plan, while also keeping with the assumption of prudent risk and the Finance Committee s composite
return objectives. The Finance Committee reviews and approves changes to the investment policy. The Company has contracted with
an investment manager who is responsible for managing the individual investment managers. The investment managers performance
and related individual fund performance is periodically reviewed by the Finance Committee to ensure compliance with investment
policy objectives and strategies. Pension plan assets are invested primarily in marketable debt and equity securities. Pension plan
assets may also be invested in real estate and other investments, including hedge funds and venture capital funds. In seeking to obtain
the desired return to fund the pension plan, the Finance Committee has established investment allocation percentages by asset classes
as indicated in the table below.
The assumed long-term rate of return on plan assets is based on past performance and economic forecasts for the types of investments
held by the plan. The fair value of pension plan assets invested in debt and equity securities was based primarily on market prices.
The fair value of pension plan assets invested in real estate was determined based on three basic approaches: (1) current cost of
reproducing a property less deterioration and functional economic obsolescence (2) capitalization of the property's net earnings power;
and (3) value indicated by recent sales of comparable properties in the market. The fair value of plan assets was determined as of
December 31, 2004 and 2003.
As of December 31 , 2004 and 2003, the pension plan had assets with a fair value that was less than the present value of the
accumulated benefit obligation under the plan. In 2004, the pension plan funding deficit increased as compared to the end of 2003 and
I FERC FORM NO.ED. 12-Page 123.
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(1) An Original (Mo, Da, Yr)
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NOTES TO FINANCIAL STATEMENTS (Continued)
as such the Company increased the additional minimum liability for the unfunded accumulated benefit obligation by $9.2 million and
reduced the intangible asset by $0.7 million (representing the amount of unrecognized prior service cost) related to the pension plan.
This resulted in a charge to other comprehensive income of $6.4 million, net of taxes of $3.5 million for 2004. In 2003, the pension
plan funding deficit decreased as compared to the end of 2002 and as such the Company reduced the additional minimum liability for
the unfunded accumulated benefit obligation by $15.5 million and the intangible asset by $0.6 million (representing the amount of
unrecognized prior service cost) related to the pension plan. This resulted in an increase to other comprehensive income of $9.
million, net of taxes of $5.2 million for 2003. In 2002, the Company recorded an additional minimum liability for the unfunded
accumulated benefit obligation of $33.4 million and an intangible asset of $6.4 million (representing the amount of unrecognized prior
service cost) related to the pension plan. This resulted in a charge to other comprehensive income of $17.6 million, net of taxes of
$9.4 million for 2002.
The Company also has a Supplemental Executive Retirement Plan (SERP) that provides additional pension benefits to executive
officers of the Company. The SERP is intended to provide benefits to executive officers whose benefits under the pension plan are
reduced due to the application of Section 415 of the Internal Revenue Code of 1986 and the deferral of salary under deferred
compensation plans. The Company recorded an additional minimum liability for the unfunded accumulated benefit obligation of $1.
million, $0.3 million and $0.7 million related to the SERP for 2004 2003 and 2002, respectively. This resulted in a charge to other
comprehensive income of$I.2 million, $0.2 million and $0.5 million, net of tax, for 2004 2003 and 2002, respectively.
The Company expects that benefit payments under the pension plan and the SERP will total $14.1 million, $14.0 million, $15.
million, $15.5 million and $16.2 million in 2005 2006 2007 2008 and 2009, respectively. For the ensuing five years (2010 through
2014), the Company expects that benefit payments under the pension plan and the SERP will total $102.4 million.
The Company provides certain health care and life insurance benefits for substantially all of its retired employees. The Company
accrues the estimated cost of postretirement benefit obligations during the years that employees provide services. The Company
elected to amortize the transition obligation of$34.5 million over a period of twenty years, beginning in 1993. In 2004, the Company
recognized the effect of an amendment to the cost-sharing policy, which limits the employer portion of the premium for all retirees.
This amendment reduced the accumulated benefit obligation by $4.3 million. The Company expects that benefit payments under the
postretirement benefit plan will be $3.1 million, $3.1 million, $3.1 million, $3.0 million and $3.0 million in 2005, 2006, 2007, 2008
and 2009, respectively. For the ensuing five years (2010 through 2014), the Company expects that benefit payments under the
postretirement benefit plan will total $14.5 million.
The Company uses a December 31 measurement date for its pension and postretirement plans. The following table sets forth the
pension and postretirement plan disclosures as of December 31 , 2004 and 2003 and the components of net periodic benefit costs for
the years ended December 31 2004 2003 and 2002 (dollars in thousands):
Pension Benefits Other Benefits
2004 2003 2004 2003
Change in benefit obligation:
Benefit obligation as of beginning of year $265 790 $238,385 $39 185 $29 062
Service cost 914 806 480 482
Interest cost 406 705 019 477
Plan amendment 263)
Actuarial loss (gain)737 18,046 464)973
Benefits paid (13,309)(13 226)(3,042)741)
Expenses paid (800)(926)----ill)(6~
Benefit obligation as of end of year 5. 79Q
Change in plan assets:
Fair value of plan assets as of beginning of year $167 962 $136 125 $14 587 $11 301
Actual return on plan assets 816 129 882 282
Employer contributions 15,000 000 964 785
Benefits paid (12 399)(12 366)524)713)
Expenses paid (926)-ID)----1QID
Fair value of plan assets as of end of year ~ 67.
I FERC FORM NO.ED. 12-Page 123.
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(1) An Original (Mo, Da, Yr)
A vista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Pension Benefits2004 2003
$(99 159) $(97 828)
73,604 71 695058 5 712-ill2) ..lLlli)
(20 996) (22 006)
Q.l.J..ill (2 0 . 0 81)
Funded status
Unrecognized net actuarial loss
Unrecognized prior service cost
Unrecognized net transition obligation/( asset)
Accrued benefit cost
Additional minimum liability
Accrued benefit liability
Accumulated pension benefit obligation
Accumulated postretirement benefit obligation:
For retirees
For fully eligible employees
For other participants
Weighted-average asset allocations as of December Equity securities 63 %Debt securities 26%Real estate Other
Target asset allocations as of December
Equity securities
Debt securities
Real estate
Other
Weighted Average Assumptions as of December 31
Discount rate for benefit obligation
Discount rate for annual expense
Expected long-tenn return on plan assets
Rate of compensation increase (1)
Medical cost trend pre-age 65 - initial
Medical cost trend pre-age 65 - ultimate
Ultimate medical cost trend year pre-age 65
Medical cost trend post-age 65 - initial
Medical cost trend post-age 65 - ultimate
Ultimate medical cost trend year post-age 65
54-68%
22-28%
13%
75%
25%
00%
84%
64%
25%
54-68%
22-28%
13%
25%
75%
00%
00%
Other Benefits2004 2003
$(15,006) $(24 598)009 9 455
041
956
809
334
$18 914 $26 073
672 $5,427
282 685
64%59%
36%41%
52- 72%
28-48%
75%25%
25%75%
00%00%
00%00%
00%00%
2009 2007
00%00%
00%00%
2008 2007
(1) In 2004, changed to an age-based scale ranging from 2.50 percent to 8.00 percent.
2004 2003 2002 2004 2003 2002
Components of net periodic benefit cost:
Service cost $ 8,914 $ 7 806 $ 6,734 $ 480 $ 482 $ 304
Interest cost 16,406 15,705 15,119 019 2,4 77 184
Expected return on plan assets (13,436)(10,862)(12 311)106)(842)064)
Transition (asset)/obligation recognition 086)086)(1,086)505 979 256
Amortization of prior service cost 654 653 831
~et loss recognition 3.447 896 1.021 245 405
Net periodic benefit cost 1LUll
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A
one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement
benefit obligation as of December 31, 2004 by $2.3 million and the service and interest cost by $0.2 million. A one-percentage-point
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
of December 31 2004 by $2.0 million and the service and interest cost by $0.2 million.
In December 2003 , the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (2003 Medicare Act) was signed
into law. The 2003 Medicare Act expanded Medicare to include, for the first time, coverage for prescription drugs. In May 2004, the
FASB issued Staff Position No. 106-
, "
Accounting and Disclosure Requirements Related to the Medicare Prescription Drug,
Improvement and Modernization Act of 2003." The Company implemented the 2003 Medicare Act and the related F ASB Staff
Position in 2004, which reduced the accumulated benefit obligation by $2.7 million as of December 31, 2004 and the 2004
postretirement benefit expense by less than $0.1 million.
The Company has a salary deferral 401 (k) plan (Employee Investment Plan) that is a defined contribution plan and covers
substantially all employees. Employees can make contributions to their respective accounts in the Employee Investment Plan on a
pre-tax basis up to the maximum amount permitted by law. The Company matches a portion of the salary deferred by each participant
according to the schedule in the Employee Investment Plan. Employer matching contributions of $3.9 million, $3.6 million and $3.4
million were expensed in 2004, 2003 and 2002, respectively.
The Company has an Executive Deferral Plan. This plan allows executive officers and other key employees the opportunity to defer
until the earlier of their retirement, termination, disability or death, up to 75 percent of their base salary and/or up to 100 percent of
their incentive cash payments. Deferred compensation funds are held by the Company in a Rabbi Trust. As of December 31, 2004
and 2003, there were deferred compensation assets of $11.5 million included in other special funds and corresponding deferred
compensation liabilities of $11.5 million included in other deferred credits on the Balance Sheets.
NOTE 8. ACCOUNTING FOR INCOME TAXES
As of December 31 2004 and 2003, the Company had net regulatory assets of$123.2 million and $131.8 million, respectively, related
to the probable recovery of certain deferred tax liabilities from customers through future rates.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
fmancial reporting purposes and the amounts used for income tax purposes and tax credit carryforwards.
The realization of deferred tax assets is dependent upon the ability to generate taxable income in future periods. The Company
evaluated available evidence supporting the realization of its deferred tax assets and determined it is more likely than not that deferred
tax assets will be realized.
NOTE 9. ENERGY PURCHASE CONTRACTS
Avista Corp. has contracts related to the purchase of fuel for thermal generation, natural gas and hydroelectric power. The termination
dates of the contracts range from one month to the year 2044. A vista Corp. also has various agreements for the purchase, sale or
exchange of electric energy with other utilities, cogenerators, small power producers and government agencies. Total expenses for
power purchased, natural gas purchased, fuel for generation and other fuel costs, which are included in operation expenses in the
Statements of Income, were $482.2 million, $464.1 million and $382.4 million in 2004 2003 and 2002, respectively.
The following table details Avista Corp.s future contractual commitments for power resources (including transmission contracts) and
natural gas resources (including transportation contracts) (dollars in thousands):
2005
Power resources $142 656
Natural gas resources 127.108
Total ~269.764
2006
$92 507
50.073
2007
$95 523
55.457
2008
$95 981
45.173
2009
$96 542
39.808
Thereafter Total
$353 128 $876 337
396.403 714.022
All of the energy purchase contracts were entered into as part of Avista Corp.s obligation to serve its retail natural gas and electric
customers' energy requirements. As a result, these costs are generally recovered either through base retail rates or adjustments to retail
rates as part of the power and natural gas cost deferral and recovery mechanisms.
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
In addition, A vista Corp. has operational agreements, settlements and other contractual obligations with respect to its generation,
transmission and distribution facilities. The expenses associated with these agreements are reflected as operation expenses and
maintenance expenses in the Statements of Income. The following table details future contractual commitments with respect to these
agreements (dollars in thousands):
Contractual obligations
A vista Corp. has fIXed contracts with certain Public Utility Districts (PUD) to purchase portions of the output of certain generatingfacilities. Although A vista Corp. has no investment in the PUD generating facilities, the fIXed contracts obligate A vista Corp. to pay
certain minimum amounts (based in part on the debt service requirements of the PUD) whether or not the facility is operating. The
cost of power obtained under the contracts, including payments made when a facility is not operating, is included in operation expenses
in the Statements of Income. Expenses under these PUD contracts were $7.3 million, $8.5 million and $7.8 million in 2004, 2003 and
2002, respectively. Information as of December 31, 2004, pertaining to these PUD contracts is summarized in the following table
(dollars in thousands):
anv s Current Share of
Debt Expira-
Kilowatt Annual Service Bonds tion
1;ill Costs Costs (J)Outstanqing ate
Chelan County PUD:
Rocky Reach Project 000 848 $990 $ 2 952 2011
Douglas County PUD:
Wells Project 000 079 528 015 2018
Grant County PUD:
Priest Rapids Project 000 868 795 961 2040
Wanapum Project 75.000 522 056 888 2040
Totals !2LQQQ Wl1
(1) The annual costs will change in proportion to the percentage of output allocated to Avista Corp. in a particular year. Amounts
represent the operating costs for the year 2004. Debt service costs are included in annual costs.
The estimated aggregate amounts of required minimum payments (A vista Corp. ' s share of existing debt service costs) under these PUD
contracts are as follows (dollars in thousands):
Minimum payments
2005 2006
$2.957
2007
255
2008
$:UJ 5
2009 Thereafter Total
$)6.665
In addition, Avista Corp. will be required to pay its proportionate share of the variable operating expenses of these projects.
I FERC FORM NO.2 _ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 10. BONDS AND OTHER LONG-TERM DEBT
The following details the interest rate and maturity dates of bonds and other long-term debt outstanding as of December 31 (dollars in
thousands) :
MaturityYear Description2005 Secured Medium-Term Notes2006 Secured Medium-Term Notes2007 First Mortgage Bonds2007 Secured Medium-Term Notes (1)2008 Secured Medium-Term Notes (1)2010 Secured Medium-Term Notes (1)2012 Secured Medium-Term Notes2013 First Mortgage Bonds
2018 Secured Medium-Term Notes
2019 First Mortgage Bonds (2)
2023 Secured Medium-Term Notes2028 Secured Medium-Term Notes (1)2032 Pollution Control Bonds (1)2034 Pollution Control Bonds (1)
Total secured debt
2004 Unsecured Medium-Term Notes
2006 Unsecured Medium-Term Notes2007 Unsecured Mediwn- Term Notes (1)
2008 Unsecured Senior Notes2008 Unsecured Mediwn-TermNotes (1)2010 Unsecured Medium-Term Notes (1)2022 Unsecured Medium-Term Notes2023 Unsecured Medium-Term Notes2023 Pollution Control Bonds
2028 Unsecured Medium-Term Notes (1)2032 Pollution Control Bonds (1)
2034 Pollution Control Bonds (1)
Total unsecured debt
Committed line of credit
Preferred stock
Total bonds and other long-term debt
Interest
Rate
6.39%-68%
89%-90%
75%
99%
06%-95%
67%-02%
7.37%
13%
26%-7.45%
5.45%
18%-54%
6.37%
00%
13%
7.42%
14%
99%-94%
75%
06%
02%
15%
99%
00%
6.37%
00%
13%
2004
$ 29 500
000
150 000
13,850
45,000
000
000
000
500
000
500
000
700
17.000
606.050
000
000
280 827
000
000
100
314.927
68.000
29.750
2003
$ 29 500
000
150 000
000
000
000
000
500
500
343.500
500
000
850
317 683
000
000
000
000
100
000
700
17.000
552.833
80.000
31.500
(1) In December 2004, the Company issued $172.6 million of non-transferable First Mortgage Bonds (Collateral Bonds) under its
Mortgage and Deed of Trust, dated as of June 1 , 1939, as amended and supplemented (Mortgage), in order to provide the benefit
of the lien of the Mortgage to secure its obligations with respect to previously issued and outstanding unsecured debt securities
including $88.9 million of its Medium Term Notes, Series C and the municipal bond insurance policies insuring $83.7 million of
Pollution Control Revenue Bonds issued for the benefit of the Company by the City of Forsyth, Montana. The Collateral Bonds
were issued in order to suspend certain negative covenants, which had limited the Company s ability to issue additional secured
debt.(2) In November 2004, the Company issued $90.0 million of 5.45 percent First Mortgage Bonds due in 2019. The Company used
the proceeds to repay a portion of the borrowings outstanding under its committed line of credit.
I FERC FORM NO.Page 123.ED. 12-
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
The following table details future long-term debt maturities, not including the committed line of credit or preferred stock (dollars in
thousands) :
Year
Debt maturities
In September 1999, $83.7 million of Pollution Control Revenue Refunding Bonds (Avista Corporation Colstrip Project), Series 1999A
due 2032 and Series 1999B due 2034 were issued by the City of Forsyth, Montana. The proceeds of the bonds were utilized to refund
the $66.7 million of 7.13 percent First Mortgage Bonds due 2013 and the $17.0 million of 7.40 percent First Mortgage Bonds due
2016. The Series 1999A and Series 1999B Bonds are backed by an insurance policy issued by AMBAC Assurance Corporation. In
January 2002, the interest rate on the bonds was fixed for a period of seven years at a rate of 5.00 percent for Series 1999A and 5.
percent for Series 1999B. As described above, in December 2004, the Company secured these .obligations through the issuance of
First Mortgage Bonds.
During 2004, the Company repurchased $36.6 million of9.75 percent Senior Notes scheduled to mature in 2008. In accordance with
regulatory accounting practices, the total net premiwn on the repurchase of debt of $6.7 million will be amortized over the average
remaining maturity of outstanding debt.
In January and February 2005, the Company repurchased the following debt securities: $5.0 million of Secured Mediwn-Term Notes
scheduled to mature in 2018; $11.0 million of Secured Mediwn-Term Notes scheduled to mature in 2023; $5.0 million Unsecured
Mediwn-Term Notes scheduled to mature in 2022; and $5.0 million of Unsecured Mediwn-Term Notes scheduled to mature in 2023.
In April 2004, the Company filed an amended registration statement on Form S-3 with the Securities and Exchange Connnission,
which would allow for the issuance of up to $349.6 million of securities (either debt or common stock). This filing amended and
combined three previous registration statements filed by the Company. As of December 31, 2004, the Company had remaining
availability of$259.6 million under this registration statement.
Substantially all utility properties owned by the Company are subject to the lien of the Company s various mortgage indentures. The
Mortgage and Deed of Trust securing the Company s First Mortgage Bonds (including Secured Mediwn-Term Notes) contains
limitations on the amount of First Mortgage Bonds, which may be issued based on, among other things, a 70 percent debt-to-collateral
ratio, and/or retired First Mortgage Bonds, and a 2 to 1 net eanrings to First Mortgage Bond interest ratio. As of December 31, 2004
the Company could issue $400.0 million of additional First Mortgage Bonds under the Mortgage and Deed of Trust. See Note 12 for
information regarding First Mortgage Bonds issued to secure the Company s obligations under a $350.0 million committed line of
credit.
NOTE 11. AnV ANCES FROM ASSOCIATED COMPANIES
In April 2004, the Company issued Junior Subordinated Debt Securities, with a. principal amount of $61.9 million to AVA Capital
Trust III, an affiliated business trust formed by the Company. Concurrently, AVA Capital Trust III issued $60.0 million of Preferred
Trust Securities to third parties and $1.9 million of Common Trust Securities to the Company. All of these securities have a fixed
interest rate of 6.50 percent for five years (through March 31 2009). Subsequent to the initial five-year fixed rate period, the securities
will either have a new fIXed rate or an adjustable rate. These debt securities may be redeemed by the Company on or after March 31
2009 and will mature on April 1 , 2034.
The Company used the proceeds from the Junior Subordinated Debt Securities to redeem $61.9 million of 7.875 percent Junior
Subordinated Deferrable Interest Debentures, Series A, originally issued in 1997 to A vista Capital I, an affiliated business trust formed
by the Company. Avista Capital I used these proceeds to redeem $60.0 million of Preferred Trust Securities issued to third parties and
$1.9 million of Common Trust Securities issued to the Company.
In 1997, the Company issued Floating Rate Junior Subordinated Deferrable Interest Debentures, Series B, with a principal amount of
$51.5 million to A vista Capital II, an affiliated business trust formed by the Company. A vista Capital II issued $50.0 million of
Preferred Trust Securities with a floating distribution rate of LffiOR plus 0.875 percent, calculated and reset quarterly. The annual
distribution rate paid during 2004 ranged from 1.995 percent to 3.275 percent. As of December 31 2004, the annual distribution rate
I FERC FORM NO.2 JED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
was 3.275 percent. Concurrent with the issuance of the Preferred Trust Securities, A vista Capital II issued $1.5 million of Common
Trust Securities to the Company. These debt securities may be redeemed at the option of A vista Capital II on or after June 1 , 2007 and
mature on June 1 2037; however, this is limited by an agreement under the Company s 9.75 percent Senior Notes that mature in 2008.
In December 2000, the Company purchased $10.0 million of these Preferred Trust Securities.
The Company has guaranteed the payment of distributions on, and redemption price and liquidation amount with respect to, the
Preferred Trust Securities to the extent that AVA Capital Trust III and A vista Capital II have funds available for such payments from
the respective debt securities. Upon maturity or prior redemption of such debt securities, the Preferred Trust Securities will be
mandatorily redeemed. As discussed in Note 2, FIN 46 results in the Company no longer including these capital trusts in its fmancial
statements as of December 31 , 2003 and thereafter.
NOTE 12. COMMITTED LINE OF CREDIT
On December 17, 2004, the Company entered into a five-year committed line of credit with various banks in the amount of $350.
million with an expiration date of December 16, 2009. This committed line of credit replaced a $350.0 million committed line of
credit with a 364-day term that had an expiration date of May 5 2005. The Company can request the issuance of up to $150.0 million
in letters of credit under the committed line of credit. As of December 31 2004 and 2003, there were $32.8 million and $10.7 million
in letters of credit outstanding, respectively. The committed line of credit is secured by $350.0 million of non-transferable First
Mortgage Bonds of the Company issued to the agent bank. Such First Mortgage Bonds would only become due and payable in the
event, and then only to the extent, that the Company defaults on its obligations under the conunitted line of credit.
The committed line of credit agreement contains customary covenants and default provisions, including covenants not to permit the
ratio of "consolidated total debt" to "consolidated total capitalization" of A vista Corp. to be greater than 70 percent at the end of anyfiscal quarter. As of December 31, 2004, the Company was in compliance with this covenant with a ratio of 59.9 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 A vista Corp. for the twelve-month period ending December 31, 2004 to be greater than 1.6 to 1. As of December
2004, the Company was in compliance with this covenant with a ratio of2.27 to 1.
Balances and interest rates of bank borrowings under the Company s revolving committed lines of credit were as follows as of and for
the years ended December 31 (dollars in thousands):
Balance outstanding at end of period
Maximum balance outstanding during the period
Average balance outstanding during the period
Average interest rate during the period
Average interest rate at end of period
2004
$68 000
170 000
858
14%
2003
$80 000
000
034
99%
2002
$30 000
000
027
59%
3.39
NOTE 13. INTEREST RATE SWAP AGREEMENTS
In July, August and December 2004, A vista Corp. entered into three forward-starting interest rate swap agreements, totaling $200.
million, to manage the risk that changes in interest rates may affect the amount of future interest payments. These interest rate swap
agreements relate to the anticipated issuances of debt to fund debt that matures in 2007 and 2008. Under the terms of these
agreements, the value of the interest rate swaps are detennined based upon A vista Corp. paying a fIXed rate and receiving a variable
rate based on LffiOR for a tenn of seven years beginning in 2007 and a tenn of ten years beginning in 2008. The interest rate swap
agreements provide for mandatory cash settlement of these contracts in 2008 and 2009. These interest rate swap agreements are
considered hedges against fluctuations in future cash flows associated with changes in interest rates in accordance with SF AS No. 133.
As of December 31 , 2004, A vista Corp. had a derivative liability of $6.5 million. An unrealized loss of $4.2 million (net of taxes of
$2.million) was recorded in other comprehensive loss for 2004, which is reflected as component of accumulated other
comprehensive loss on the Balance Sheets. The Company may request regulatory accounting orders to defer the impact of unrealized
gains and losses. If such accounting orders were obtained, the Company would record a regulatory asset or liability, which would
eliminate the effect of any unrealized gains and losses on these interest rate swap agreements in other comprehensive income (loss). If
regulatory accounting orders are not obtained prior to the mandatory cash settlements in 2008 and 2009, the amount included in
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
accumulated other comprehensive income or loss at the cash settlement date will be reclassified to unamortized debt expense in
accordance with regulatory accounting practices under SFAS No. 71. This gain or loss will be amortized over the remaining life of the
forecasted debt issued.
NOTE 14. LEASES
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from one to forty-five years. The
Company s most significant leased asset is the corporate office building. Certain lease arrangements require the Company, upon the
occurrence of specified events, to purchase the leased assets. The Company s management believes the likelihood of the occurrence of
the specified events under which the Company could be required to purchase the leased assets is remote. Rental expense under
operating leases for 2004 2003 and 2002 was $12.0 million, $13.4 million and $18.4 million, respectively.
Future minimum lease payments required under operating leases having initial or remaining noncancelable lease terms in excess of one
year as of December 31 2004 were as follows (dollars in thousands):
Year ending December 31:
Minimum payments required
The payments under capital leases are $1.1 million in each of 2005 and 2006, $1.0 million in each of 2007 and 2008, and $0.1 million
in 2009.
Equipment under capital leases totaled $5.3 million and $3.9 million as of December 31 2004 and 2003, respectively. The associated
accumulated depreciation totaled $0.5 million and $0.2 million as of December 31, 2004 and 2003, respectively.
NOTE 15. GUARANTEES
The Company has guaranteed the payment of distributions on, and redemption price and liquidation amount with respect to, the
Preferred Trust Securities issued by its affiliates, A VA Capital Trust III and A vista Capital II, to the extent that these entities have
funds available for such payments from the respective debt securities.
Avista Power, LLC (Avista Power), a subsidiary of Avista Capital, through its equity investment in Rathdrum Power LLC, is a 49
percent owner of the Lancaster Project, which commenced commercial operation in September 2001. Commencing with commercial
operations, all of the output from the Lancaster Project is contracted to Avista Energy, a subsidiary of Avista Capital, through 2026
under a power purchase agreement. A vista Corp. has guaranteed the power purchase agreement with respect to the performance of
Avista Energy.
NOTE 16. PREFERRED STOCK-CUMULATIVE (SUBJECT TO MANDATORY REDEMPTION)
In September 2004, the Company made a mandatory redemption of 17 500 shares of preferred stock for $1.75 million. In March 2003
the Company repurchased 17 500 shares of preferred stock for $1.6 million, satisfying its redemption requirement for 2003.
September 2002, the Company made a mandatory redemption of 17 500 shares of preferred stock for $1.75 million. On September 15
2005 and 2006, the Company must redeem 17 500 shares at $100 per share plus accumulated dividends through a mandatory sinking
fund. As such, redemption requirements are $1.75 million in each of the years 2005 and 2006. The remaining shares must be
redeemed on September 15, 2007. The Company has the right to redeem an additional 17 500 shares on each September 15
redemption date; however, this right is limited by an agreement under the Company s 9.75 percent Senior Notes that mature in 2008.
Upon involuntary liquidation, all preferred stock will be entitled to $100 per share plus accrued dividends.
As discussed in Note 2, the Company adopted SFAS No. 150 effective July 1, 2003. The adoption of this statement requires the
Company to classify preferred stock subject to mandatory redemption as liabilities and preferred stock dividends as interest expense.
The restatement of prior periods was not permitted.
I FERC FORM NO.JED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 17. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying values of cash, special deposits, working funds, temporary cash investments, accounts and notes receivable, accounts
payable, capital leases and the committed line of credit are reasonable estimates of their fair values. Derivative assets and liabilities
are reported at estimated fair value on the Balance Sheets.
The fair value of the Companys secured and unsecured debt as of December 31 2004 and 2003 was estimated to be $998.7 million, or
108 percent of the carrying value of $921.0 million, and $1 012.7 million, or 112 percent of the carrying value of $896.3 million
respectively. The fair value of the Companys mandatorily redeemable preferred stock as of December 31, 2004 and 2003 was
estimated to be $32.0 million, or 107 percent of the carrying value of $29.8 million, and $29.9 million, or 95 percent of the carrying
value of $31.5 million, respectively. The fair value of the Company s long-term debt to affiliated trusts (included in advances to
associated companies) as of December 31 2004 and 2003 was estimated to be $108.3 million, or 98 percent of the carrying value of
$110.0 million, and $99.5 million, or 90 percent of the carrying value of $110.0 million, respectively. The carrying value as of
December 31, 2004 and 2003 does not include $3.4 million of debt that is considered common equity by the affiliated trusts. These
estimates were primarily based on available market information.
NOTE 18. COMMON STOCK
In April 1990, the Company sold 1 000 000 shares of its common stock to the Trustee of the Investment and Employee Stock
Ownership Plan for Employees of the Company (Plan) for the benefit of the participants and beneficiaries of the Plan. In payment for
the shares of common stock, the Trustee issued a promissory note payable to the Company in the amount of $14.1 million. Dividends
paid on the stock held by the Trustee, plus Company contributions to the Plan, if any, are used by the Trustee to make interest and
principal payments on the promissory note. The balance of the promissory note receivable from the Trustee was $0.5 million as of
December 31, 2004. The shares of common stock are allocated to the accounts of participants in the Plan as the note is repaid. During
2004, 2003 and 2002, the cost recorded for the Plan was $6.2 million, $6.9 million and $6.0 million, respectively. Interest on the note
payable to the Company, cash and stock contributions to the Plan and dividends on the shares held by the Trustee was $0.2 million
$1.7 million and less than $0.1 million, respectively during 2004. Interest on the note payable to the Company, 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. Interest on the note payable to the Company, cash and stock contributions to the Plan and dividends on the shares held
by the Trustee was $0.5 million, $1.6 million and $0.1 million, respectively during2002.
In November 1999, the Company adopted a shareholder rights plan pursuant to which holders of common stock outstanding on
February 15, 1999, or issued thereafter, were granted one preferred share purchase right (Right) on each outstanding share of common
stock. Each Right, initially evidenced by and traded with the shares of common stock, entitles the registered holder to purchase one
one-hundredth of a share of preferred stock of the Company, without par value, at a purchase price of $70, subject to certain
adjustments, regulatory approval and other specified conditions. The Rights will be exercisable only if a person or group acquires 10
percent or more of the outstanding shares of common stock or commences a tender or exchange offer, the consummation of which
would result in the beneficial ownership by a person or group of 10 percent or more of the outstanding shares of common stock. Upon
any such acquisition, each Right will entitle its holder to purchase, at the purchase price, that number of shares of common stock or
preferred stock of the Company (or, in the case of a merger of the Company into another person or group, common stock of the
acquiring person or group) that has a market value at that time equal to twice the purchase price. In no event will the Rights be
exercisable by a person that has acquired 10 percent or more of the Company s common stock. The Rights may be redeemed, at a
redemption price of$O.Ol per Right, by the Board of Directors of the Company at any time until any person or group has acquired 10
percent or more of the common stock. The Rights expire on March 31 2009. This plan replaced a similar shareholder rights plan that
expired in February 2000.
The Company has a Dividend Reinvestment and Stock Purchase Plan under which the Company s shareholders may automatically
reinvest their dividends and make optional cash payments for the purchase of the Company s common stock at current market value.
From March 2000 through May 2003, the Company issued shares of its common stock to the Employee Investment Plan rather than
having the Plan purchase shares of common stock on the open market. In the fourth quarter of 2000, the Company also began issuing
new shares of common stock for the Dividend Reinvestment and Stock Purchase Plan.
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
The payment of dividends on common stock is restricted by provisions of certain covenants applicable to preferred stock and
long-term debt contained in the Company s Articles of Incorporation and various mortgage indentures. Covenants under the
Company s 9.75 percent Senior Notes that mature in 2008 limit the Company s ability to increase its common stock cash dividend to
no more than 5 percent over the previous quarter.
NOTE 19. EARNINGS PER COMMON SHARE
The following table presents the computation of basic and diluted earnings per common share for the years ended December 31 (in
thousands, except per share amounts):
Numerator:
Income from continuing operations
Loss from discontinued operations
Net income before cumulative effect of accounting change
Cumulative effect of accounting change
Net income
Deduct: Preferred stock dividend requirements
Income available for common stock
Denominator:
Weighted-average number of common shares
outstanding-basic
Effect of dilutive securities:
Restricted stock
Contingent stock
Stock options
Weighted-average number of common shares
outstanding-diluted
Earnings per common share, basic:
Earnings per common share from continuing operations
Loss per common share from discontinued operations
Earnings per common share before cumulative effect
of accounting change
Loss per common share from cumulative effect
of accounting change
Total earnings per common share, basic
Earnings per common share, diluted:
Earnings per common share from continuing operations
Loss per common share from discontinued operations
Earnings per common share before cumulative effect
of accounting change
Loss per common share from cumulative effect
of accounting change
Total earnings per common share, diluted
2004 2003 2002
$35 614 $50 643 $42 174
!Q,ll2l
614 694 455
Q..J.2ID HJm
154 504 307
125 2.402
400 232 823
$0.
(!lli1
(0.09)
$0.
$0.
(!lli1
(0.09)
$0.
Total stock options outstanding that were not included in the calculation of diluted earnings per common share were 730 100
306 200 and 1 445 890 for 2004 2003 and 2002, respectively. These stock options were excluded from the calculation because they
were antidilutive based on the fact that the exercise price of the stock options was higher than the average market price of A vista Corp.
common stock during the respective period.
I FERC FORM NO.2 JED.12-
209 244
277 154
$0.$1.03
!Q.JID
(O.Oil (0.03)
$0.$0.
$0.$1.02
!Q.JID
(O.Oil (0.03)
$0.$0.
Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Oat Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 20. STOCK COMPENSATION PLANS
In 1998, the Company adopted and shareholders approved an incentive compensation plan, the Long-Term Incentive Plan (1998
Plan). Under the 1998 Plan, certain key employees, directors and officers of the Company and its subsidiaries may be granted stock
options, stock appreciation rights, stock awards (including restricted stock) and other stock-based awards and dividend equivalent
rights. The Company has available a maximum of 2.5 million shares of its common stock for grant under the 1998 Plan. Beginning in
2000, non-employee directors began receiving options under this plan. The Company is requesting shareholder approval of an
additional 1.0 million shares under the 1998 Plan at the May 2005 Annual Meeting of Shareholders.
In 2000, the Company adopted a Non-Officer Employee 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 Company. The Company has available a maximum of 2.5 million shares of its
common stock for grant under the 2000 Plan.
The Board of Directors has determined that it is no longer in the Company s best interest to issue stock options under the 1998 Plan
and the 2000 Plan. Other forms of compensation are in place including the issuance of performance shares to certain officers and other
key employees.
The Company has accounted for stock based compensation using APB No. 25, which requires the recognition of compensation
expense on the excess, if any, of the market price of the stock at the date of grant over the exercise price of the option. As the exercise
price for options granted under the 1998 Plan and the 2000 Plan was equal to the market price at the date of grant, there was no
compensation expense recorded by the Company. Currently, SPAS No. 123 requires the disclosure of pro forma net income and
earnings per common share had the Company adopted the fair value method of accounting for stock options. Under this statement, the
fair value of stock-based awards is calculated with option pricing models. These models require the use of subjective assumptions
including stock price volatility, dividend yield, risk-free interest rate and expected time to exercise. The fair value of options is
estimated on the date of grant using the Black-Scholes option-pricing model. See Note 1 for disclosure of pro forma net income and
earnings per common share. In December 2004, the FASB issued SPAS No. 123R , which supersedes APB No. 25 and its related
implementation guidance. The statement requires that the compensation cost relating to share-based payment transactions be
recognized in fmancial statements based on the fair value of the equity or liability instruments issued effective beginning in the third
quarter of2005. See Note 2 for further information.
In 2004, the Company granted 152 700 performance shares, all of which are still outstanding as of December 31, 2004, to certain
officers and other key employees under the 1998 Plan and the 2000 Plan. In 2003, the Company granted 162 600 performance shares
(153 914 outstanding as of December 31 , 2004) to certain officers and other key employees under the 1998 Plan and the 2000 Plan.
The performance shares will be payable at the Company s option in either cash or common. stock three years from the date of grant.
The amount of cash paid or common stock issued will range from 0 to 150 percent of the performance shares granted depending on the
change in the value of the Company s common stock relative to an external benchmark.
Shares of common stock issued from the exercise of stock options under the 1998 Plan and the 2000 Plan are acquired on the open
market. As of December 31 , 2004, there were 1.9 million shares available for future stock grants under the 1998 Plan and the 2000
Plan.
The following summarizes stock options activity under the 1998 Plan and the 2000 Plan for the years ended December 31:2004 2003 2002
Number of shares under stock options:
Options outstanding at beginning of year
Options granted
Options exercised
Options canceled
Options outstanding at end of year
481 886 684 350 440 475
000 569 800
(99,138)(37,439)
550)(325.925)
!J 9 775
Page 123.
Options exercisable at end of year
I FERC FORM NO.2 _(ED. 12-88)
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmisslon 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
2004 2003 2002
$12.41 $10.
$13.$11.43
$18.46 $17.$19.
$15.58 $15.$15.
$16.$17.$18.
$ -
$ 4.30 $ 3.43
17%25%-4.96%
37.10%47.13%
87%61%
Weighted average exercise price:
Options granted
Options exercised
Options canceled
Options outstanding at end of year
Options exercisable at end of year
Weighted average fair value of options granted during the year
Principal assumptions used in applying the Black-Scholes model:
Risk-free interest rate
Expected life, in years
Expected volatility
Expected dividend yield
Information with respect to options outstanding and options exercisable as of December 31, 2004 was as follows:
Range of
Exercise Prices
$10.17-$11.68
$11.69-$14.
$14.62-$17.
$17.54-$20.45
$20.46-$23.38
$26.30-$28.4 7
Total
Number
of Shares
494 623
616 875
490 600
271 100
432 800
26.200
Non-Employee Director Stock Plan
Options OutstandingWeighted WeightedAverage AverageExercise Remainingprice Lif in ears
$10.26 7.
11.82 6.
17.15 4.
18.73 3.
22.56 5.27.39 5.
$15.58 5.
Options :axercisaQI
Weighted
Average
Exercise
price
$10.
11.
17.
18.
22.
27.39
$16.
Number
ffihares
238 073
450 625
478 100
270 850
432 800
26.200
In 1996, the Company adopted and shareholders approved the Non-Employee Director Stock Plan (1996 Director Plan). Under the
1996 Director Plan, directors who are not employees of the Company receive two-thirds of their annual retainer in A vista Corp.
common stock. The common stock is acquired on the open market. The Company has available a maximum of 150 000 shares of its
common stock under the 1996 Director Plan and there were 65 553 shares available for future compensation to non-employee directors
as of December 31 2004. In February 2005, the Board of Directors elected to tenninate the 1996 Director Plan. With the tennination
of the 1996 Director Plan, directors may elect each year to receive their annual retainer in cash, in common stock, or in a combination
of both cash and common stock.
NOTE 21. COMMITMENTS AND CONTINGENCIES
In the course of its business the Company becomes involved in various claims, controversies, disputes and other contingent matters
including the items described in this Note. Some of these claims, controversies, disputes and other contingent matters involve
litigation or other contested proceedings. With respect to these proceedings, the Company intends to vigorously protect and defend its
interests and pursue its rights. However, no assurance can be given as to the ultimate outcome of any particular matter. In addition to
issues specifically identified in this Note and with respect to matters that affect the regulated utility operations, the Company intends to
seek, to the extent appropriate, regulatory approval of recovery of incurred costs through the ratemaking process.
Federal Energy Regulatory Commission Inquiry
On April 19, 2004, the FERC issued an order approving the contested Agreement in Resolution of Section 206 Proceeding (Agreement
in Resolution) reached by Avista Corp., Avista Energy and the FERC's Trial Staff with respect to an investigation into the activities of
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Avista Corp. and Avista Energy in western energy markets during 2000 and 2001. In the Agreement in Resolution, the FERC Trial
Staff stated that its investigation found: (1) no evidence that any executives or employees of A vista Corp. or A vista Energy knowingly
engaged in or facilitated any improper trading strategy; (2) no evidence that Avista Corp. or Avista Energy engaged in any efforts to
manipulate the western energy markets during 2000 and 2001; and (3) that Avista Corp. and Avista Energy did not withhold relevant
information from the FERC's inquiry into the western energy markets for 2000 and 2001. As part of the Agreement in Resolution,
A vista Corp. agreed to improve its system of taping energy trading conversations and its account settlement process. A vista Corp. and
A vista Energy agreed to maintain an annual training program on the applicable FERC Code of Conduct for all employees engaged in
the trading of electric energy and capacity. The Agreement in Resolution provides no remedial measures against Avista Corp. or
Avista Energy and imposes no monetary remedies or penalties, and does not relinquish or modify Avista Energy s or Avista Corp.
market-based rate authority. On May 19, 2004, the City of Tacoma and California Parties (the Office of the Attorney General, the
California Public Utilities Commission (CPUC), and the California Electricity Oversight Board, filing jointly) filed requests for
rehearing with respect to the FERC's April 19, 2004 order. On September 28 2004, the State of Montana filed a motion to intervene
in these proceedings citing evidence of alleged market manipulation by Avista Corp. and Avista Energy. The FERC's rulings on the
rehearing requests and the State of Montana s motion to intervene are still pending. Based on the FERC's order approving the
Agreement in Resolution, the Company does not expect that this proceeding will have any material effect on its fmancial condition
results of operations or cash flows.
Class Action Securities Litigation
On September 27 2002, Ronald R. Wambolt filed a class action lawsuit in the United States District Court for the Eastern District of
Washington against A vista Corp., Thomas M. Matthews, the former Chairman of the Board, President and Chief Executive Officer of
the Company, Gary G. Ely, the current Chairman of the Board, President and Chief Executive Officer of the Company, and Jon E.
Eliassen, the former Senior Vice President and Chief Financial Officer of the Company. In October and November 2002, Gail West
Michael Atlas and Peter Arnone filed similar class action lawsuits in the same court against the same parties. On February 3, 2003, the
court issued an order consolidating the complaints under the name "In re Avista Corp. Securities Litigation," and on February 7, 2003
appointed the lead plaintiff and co-lead counsel. On August 19, 2003, the plaintiffs filed their consolidated amended class action
complaint in the same court against the same parties. In their complaint, the plaintiffs continue to assert violations of the federal
securities laws in connection with alleged misstatements and omissions of material fact pursuant to Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934. The plaintiffs allege that the Company did not have adequate risk management processes
procedures and controls. The plaintiffs further allege that the Company engaged in unlawful energy trading practices and allegedly
manipulated western power markets. The plaintiffs assert that alleged misstatements and omissions regarding these matters were made
in the Company s filings with the Securities and Exchange Commission and other information made publicly available by the
Company, including press releases. The class action complaint asserts claims on behalf of all persons who purchased, converted
exchanged or otherwise acquired the Company s common stock during the period between November 23, 1999 and August 13, 2002.
The Company filed a motion to dismiss this complaint in October 2003 and the plaintiffs filed an answer to this motion in January
2004. Arguments before the Court on the motion were held on March 19, 2004. On Apri115, 2004, the Court called for additional
briefmg on what effect, if any, the FERC proceedings (see "Federal Energy Regulatory Commission Inquiry" above) have on this case.
On July 30, 2004, the Court denied the Companys motion to dismiss this complaint, holding, among other things, that the FERC
proceedings may ultimately have some evidentiary value relevant to the disclosure issues raised in this case, but they do not preclude
the resolution of those issues by the Court. In November 2004, the Company filed its answer to the complaint denying the plaintiffs
allegations. Because the resolution of this lawsuit remains uncertain, legal counsel cannot express an opinion on the extent, if any, of
the Company s liability. However, based on information currently known to the Company s management, the Company does not
expect that this lawsuit will have a material adverse effect on its fmancial condition, results of operations or cash flows. It is possible
that a change could occur in the Company s estimates of the probability or amount of a liability being incurred. Such a change, should
it occur, could be significant.
California Refund Proceeding
In July 2001, the FERC initiated a proceeding to determine if refunds should be owed and, if so, the amounts of such refunds for sales
during the period from October 2, 2000 to June 20, 2001 in the California power market. The order provides that any refunds owed
could be offset against unpaid energy debts due to the same party. Interested parties have contested pricing determinants and other
matters since the proceeding started. The CanSO and the CaIPX prepared revised values for the affected power transactions and they
are preparing additional iterations of revised prices and terms as directed by the FERC. The results of these calculations are likely to
be appealed to the FERC and federal courts. In March 2003, the FERC issued an order that addressed issues related to the California
refund proceedings, setting forth proposed retroactive pricing standards. The CanSO has estimated that it will fmalize the initial
I FERC FORM NO.2 JED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Oa, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
calculation of the respective receivable/payable balances by the end of the fIrst quarter of 2005, unless a further extension is granted.
Many of the numerous orders that FERC has issued in the California refund proceedings are now on appeal before the United States
Court of Appeals for the Ninth Circuit. In March 2004, the Ninth Circuit consolidated most of these appeals. The now consolidated
appeals remain in abeyance pursuant to an August 2002 Ninth Circuit order directing the FERC to allow parties to file additional
evidence on market manipulation. Because the resolution of the California refund proceeding remains uncertain, legal counsel cannot
express an opinion on the extent, if any, of the Company s liability. However, based on information currently known to the Company
management, the Company does not expect that the California refund proceeding will have a material adverse effect on its fmancial
condition, results of operations or cash flows. It is possible that a change could occur in the Company s estimates. of the probability or
amount of a liability being incurred. Such a change, should it occur, could be significant.
Pacific Northwest Refund Proceeding
In July 2001 , the FERC initiated a preliminary evidentiary hearing to develop a factual record as to whether prices for spot market
sales in the Pacific Northwest between December 25, 2000 to June 20, 2001 were just and reasonable. During the hearing, Avista
Corp. and Avista Energy vigorously opposed claims that Pacific Northwest markets were dysfunctional, that rates for spot market sales
were unjust and unreasonable and that the imposition of refunds would be appropriate. In September 2001, the FERC's Administrative
Law Judge presiding over the evidentiary hearing issued a decision favorable to the Company s position and reconunended that the
FERC not order refunds and instead dismiss the entire proceeding. In June 2003, the FERC tenninated the Pacific Northwest refund
proceedings, after fmding that the equities do not justify the imposition of refunds. In November 2003, the FERC affmned its order.
Seven petitions for review, including one flied by Puget Sound Energy, Inc. (Puget), are now pending before the United States Court of
Appeals for the Ninth Circuit. Opening briefs were filed on January 14 2005. Puget's brief is directed to the procedural flaws in the
underlying docket. Puget argues that because its complaint was withdrawn as a matter of law in July 2001 , the FERC erred in relying
on it to serve as the basis to initiate the preliminary investigation into whether refunds for individually negotiated bilateral transactions
in the Pacific Northwest were appropriate. On February 14, 2005, intervening parties, including Avista Energy and Avista Utilities
filed in support of Puget. Briefmg is expected to be completed in the fIrst half of 2005. Because the resolution of the Pacific
Northwest refund proceeding remains uncertain, legal counsel cannot express an opinion on the extent, if any, of the Company
liability. However, based on information currently known to the Company s management, the Company does not expect that the
Pacific Northwest refund proceeding will have a material adverse effect on its fInancial condition, results of operations or cash flows.
It is possible that a change could occur in the Company s estimates of the probability or amount of a liability being incurred. Such a
change, should it occur, could be significant.
California Attorney General Complaint
In March 2002, the Attorney General of the State of California (California AG) filed a complaint with the FERC against certain
specific companies (not including Avista Corp. or its subsidiaries) and "all other public utility sellers" in California. The complaint
alleges that sellers with market-based rates have violated their tariffs by not filing with the FERC transaction-specific information
about all of their sales and purchases at market-based rates. As a result, the California AG contends that all past sales should be
subject to refund if found to be above just and reasonable levels. In May 2002, the FERC issued an order denying the claim to issue
refunds. In July 2002, the California AG requested a rehearing on the FERC order, which request was denied in September 2002.
Subsequently, the California AG filed a Petition for Review of the FERC's decision with the United States Court of Appeals for the
Ninth Circuit. In September 2004, the United States Court of Appeals for the Ninth Circuit upheld the FERC's market-based rate
authority, but remanded the case back to the FERC in order to determine whether transactional reporting under this authority was
adequate, and what remedies would be appropriate for those not in compliance. In October 2004, A vista Energy joined with others in
seeking rehearing of the Court's decision to remand the case back to the FERC for further proceedings. The Ninth Circuit has yet to
rule on the request for rehearing. Based on information currently known to the Company s management, the Company does not expect
that this matter will have a material adverse effect on its fmancial condition, results of operations or cash flows. It is possible that a
change could occur in the Company s estimates of the probability or amount of a liability being incurred. Such a change, should
occur, could be significant.
Port of Seattle Complaint
In May 2003, a complaint was originally filed by the Port of Seattle in the United States District Court for the Western District of
Washington against numerous companies, including A vista Corp., A vista Energy and A vista Power (collectively the A vista
defendants), seeking compensatory and treble damages for alleged violations of the Sherman Act and the Racketeer Influenced and
Corrupt Organization Act by transmitting, via wire conununications, false information intended to increase the price of power
knowing that others would rely upon. such information. The complaint alleged that the defendants and others knowingly devised and
I FERC FORM NO.2 JED.12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
attempted to devise a scheme to defraud and to obtain money and property from electricity customers throughout the Western
Electricity Coordinating Council (WECC), by means of false and fraudulent pretenses, representations and promises. The alleged
purpose of the 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 throughout the WECC. In August 2003,
the A vista defendants filed a motion to dismiss this complaint. A transfer order was granted, which moved this case to the United
States District Court for the Southern District of California to consolidate it with other pending actions. Arguments with respect to the
motions to dismiss filed by the Avista defendants and other defendants were heard on March 26,2004. On May 12, 2004, the United
States District Court for the Southern District of California granted motions to dismiss filed by the A vista defendants, as well as other
defendants, with respect to this complaint. The Court dismissed the complaint because it determined that it was without jurisdiction to
hear the plaintiffs claims, based on, among other things, the exclusive jurisdiction of the FERC and the flied-rate doctrine. On May
, 2004, the Port of Seattle filed an appeal with the United States Court of Appeals for the Ninth Circuit. Because the resolution
this lawsuit remains uncertain, legal counsel cannot express an opinion on the extent, if any, of the Company s liability. However
based on information currently known to the Company s management, the Company does not expect that this lawsuit will have a
material adverse effect on its fmancial condition, results of operations or cash flows. It is possible that a change could occur in the
Company s estimates of the probability or amount ofa liability being incurred. Such a change, should it occur, could be significant.
Wah Chang Complaint
On May 5, 2004, Wah Chang, a division of TDY Industries, Inc. (a subsidiary of Allegheny Technologies, Inc.), filed a complaint in
the United States District Court for the District of Oregon against numerous companies, including A vista Corp., A vista Energy and
A vista Power. The complaint seeks compensatory and treble damages for alleged violations of the Sherman Act, the Racketeer
Influenced and Corrupt Organization Act, as well as violations of Oregon state law. According to the complaint, from September 1997
to September 2002, the plaintiff purchased electricity from PacifiCorp pursuant to a contract that was indexed to the spot wholesale
market price of electricity. The plaintiff alleges that the defendants, acting in concert among themselves and/or with Emon
Corporation and certain affiliates thereof (collectively, Emon) and others, engaged in a scheme to defraud electricity customers by
transmitting false market information in interstate commerce in order to artificially increase the price of electricity provided by them,
to receive payment for services not provided by them and to otherwise manipulate the market price of electricity, and by executing
wash trades and other forms of market manipulation techniques and sham transactions. The plaintiff also alleges that the defendants
acting in concert among themselves and/or with Emon and others, engaged in numerous practices involving the generation, purchase
sale, exchange, scheduling and/or transmission of electricity with the purpose and effect of causing a shortage (or the appearance of a
shortage) in the generation of electricity and congestion (or the appearance of congestion) in the transmission of electricity, with the
ultimate purpose and effect of artificially and illegally fIXing and raising the price of electricity in California and throughout the Pacific
Northwest. As a result of the defendants' alleged conduct , the plaintiff allegedly suffered damages of not less than $30 million through
the payment of higher electricity prices. In September 2004, this case was transferred to the United States District Court for the
Southern District of California for consolidation with other pending actions. In October 2004, the A vista defendants joined with other
defendants in filing a joint motion to dismiss the complaint. In February 2005, the Court dismissed the complaint because it
determined that it was without jurisdiction to hear the plaintiffs complaint, based on, among other things, the exclusive jurisdiction of
the FERC and the filed-rate doctrine. The Court's decision is subject to appeal. Because the resolution of this lawsuit remains
uncertain, legal counsel cannot express an opinion on the extent, if any, of the Company s liability. However, based on information
currently known to the Company s management, the Company does not expect that this lawsuit will have a material adverse effect on
its fmancial condition, results of operations or cash flows. It is possible that a change could occur in the Company s estimates of the
probability or amount of a liability being incurred. Such a change, should it occur, could be significant.
City of Tacoma Complaint
On June 7, 2004, the City of Tacoma, Department of Public Utilities, Light Division, a Washington municipal corporation (Tacoma
Power), filed a complaint in the United States District Court for the Western District of Washington against over fifty companies
including Avista Corp., Avista Energy and Avista Power. According to the complaint, Tacoma Power distributes electricity to
customers in Tacoma, and Pierce County, Washington, generates electricity at several facilities in western Washington and purchases
power under supply contracts and in the Northwest spot market. Tacoma Power s complaint seeks compensatory and treble damages
from alleged violations of the Sherman Act. Tacoma Power alleges that the defendants, acting in concert, engaged in a pattern of
activities that had the purpose and effect of creating the impressions that the demand for power was higher, the supply of power was
lower, or both, than was in fact the case. This allegedly resulted in an artificial increase of the prices paid for power sold in California
and elsewhere in the western United States during the period from May 2000 through the end of 2001. Due to the alleged unlawful
conduct of the defendants, Tacoma Power allegedly paid an amount estimated to be $175.0 million in excess of what it would have
I FERC FORM NO.(ED. 12-88)Page 123.
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(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmlssion 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
paid in the absence of such alleged conduct. In September 2004, this case was transferred to the United States District Court for the
Southern District of California for consolidation with other pending actions. In February 2005, the Court granted the defendants
motion to dismiss this complaint for similar reasons to those expressed by the Court in the Wah Chang complaint described above.
The Court's decision is subject to appeal. Because the resolution of this lawsuit remains uncertain, legal counsel cannot express an
opinion on the extent, if any, of the Company s liability. However, based on information currently known to the Company
management, the Company does not expect that this lawsuit will have a material adverse effect on its fmancial condition, results of
operations or cash flows. It is possible that a change could occur in the Company s estimates of the probability or amount ofa liability
being incurred. Such a change, should it occur, could be significant.
Public Utility District No.1 of Snohomish County
On November 5, 2004, Public Utility District No.1 of Snohomish County flied a Petition For a Writ of Certiorari with the United
States Supreme Court, requesting the Court to consider whether the flied rate doctrine applies for market-based rates so as to preempt
state law antitrust and consumer fraud actions based upon alleged fraud and manipulation of electricity markets operated under
market-based rate tariffs. This petition seeks review of the decision of the United States Court of Appeals for the Ninth Circuit on
September 10, 2004, which held that the filed rate doctrine and field and conflict preemptions bar such actions. Seventeen states have
urged the United States Supreme Court to grant the petition. On February 22, 2005, the Court invited the Solicitor General to provide
the Court with the views of the United States. Although, this case does not directly involve A vista Corp. and its subsidiaries, the
outcome could have a bearing on pending litigation and regulatory proceedings affecting A vista Corp. and its subsidiaries discussed
above.
State of Montana Proceedings
On June 30, 2003, the Attorney General of the State of Montana (Montana AG) filed a complaint in the Montana District Court on
behalf of the people of Montana and the Flathead Electric Cooperative, Inc. against numerous companies, including A vista Corp. The
complaint alleges that the companies illegally manipulated western electric and natural gas markets in 2000 and 2001. This case was
subsequently moved to the United States District Court for the District of Montana; however, it has since been remanded back to the
Montana District Court. No further action has been made with respect to this complaint.
The Montana AG also petitioned the Montana Public Service Commission (MPSC) to fme public utilities $1 000 a day for each day it
fmds they engaged in alleged "deceptive, fraudulent, anticompetitive or abusive practices" and order refunds when consumers were
forced to pay more than just and reasonable rates. On February 12, 2004, the MPSC issued an order initiating investigation of the
Montana retail eJectricity market for the purpose of determining whether there is evidence of unlawful manipulation of that market.
The Montana AG has requested specific information from A vista Energy and A vista Corp. regarding their transactions within the State
of Montana during the period from January 1, 2000 through December 31 , 2001.
Because the resolution of these proceedings remains uncertain, legal counsel cannot express an opinion on the extent, if any, of the
Company s liability. However, based on information currently known to the Company s management, the Company does not expect
that these proceedings will have a material adverse effect on its fmancial condition, results of operations or cash flows. It is possible
that a change could occur in the Company s estimates of the probability or amount of a liability being incurred. Such a change, should
it occur, could be significant.
Montana Public School Trust Fund Lawsuit
In October 2003, a lawsuit was filed by Richard Dolan and Denise Hayman in the United States District Court for the District of
Montana against all private owners of hydroelectric dams in Montana, including A vista Corp. The lawsuit alleges that the
hydroelectric facilities are located on state-owned riverbeds and the owners have never paid compensation to the state s public school
trust fund. The lawsuit requests lease payments dating back to the construction of the respective dams and also requests damages for
trespassing and unjust enrichment. An Amended Complaint adding Great Falls Elementary School District No.1 and Great Falls High
School District lA was filed on January 16, 2004. On February 2, 2004, the Company filed its motion to dismiss this lawsuit;
PacifiCorp and PPL Montana, as the other named defendants also filed a motion to dismiss, or joined therein. On May 10, 2004, the
Montana AG filed a complaint on behalf of the state to join in this lawsuit to allegedly protect and preserve state lands/school trust
lands from use without compensation. On July 19, 2004, the defendants (including Avista Corp.) flied a motion to dismiss the
Montana AG's complaint. On September 29, 2004, the Court granted the motion to dismiss filed with respect to plaintiffs Richard
Dolan, Denise Hayman and the school districts. However, the motion to dismiss the Montana AG's complaint was denied, citing,
among other things, that the FERC does not have exclusive jurisdiction over this matter. On November 12, 2004, the defendants
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Oat Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
(including A vista Corp.) filed a petition for declaratory relief in Montana State Court requesting the resolution of the controversy that
the plaintiffs raised in federal court. On November 24 2004, the Montana AG flied an answer, counterclaim and motion for summary
judgment. The defendants have filed responses to the Montana AG's motion for summary judgment. The Montana State Court has not
scheduled a hearing on the motions. Subsequently, in response to the motions of the defendants, the federal magistrate judge on
January 19, 2005, filed recommendations that the federal court order on the merits be vacated based on lack of jurisdiction of the
Court. Because the resolution of this lawsuit remains uncertain, legal counsel cannot express an opinion on the extent, if any, of the
Company s liability. However, based on information currently known to the Company s management, the Company does not expect
that this lawsuit will have a material adverse effect on its fInancial condition, results of operations or cash flows. It is possible that a
change could occur in the Company s estimates of the probability or amount of a liability being incurred. Such a change, should it
occur, could be significant.
Colstrip Generating Project Complaint
In May 2003, various parties (all of which are residents or businesses of Co Is trip, Montana) filed a consolidated complaint against the
owners of the Colstrip Generating Project (Colstrip) in Montana District Court. Avista Corp. owns a 15 percent interest in Units 3 & 4
of Colstrip. 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 the lakes
and ponds and the forfeiture of all profits earned from the generation of Colstrip. The Company intends to work with the other owners
of Colstrip in defense of this complaint. Because the resolution of this lawsuit remains uncertain, legal counsel cannot express an
opinion on the extent, if any, of the Company s liability. However, based on information currently known to the Company
management, the Company does not expect that this lawsuit will have a material adverse effect on its fmancial condition, results of
operations or cash flows. It is possible that a change could occur in the Company s estimates of the probability or amount of a liability
being incurred. Such a change, should it occur, could be significant.
Environmental Protection Agency Administrative Compliance Order
In December 2003, PPL Montana, LLC, as operator of Colstrip, received an Administrative Compliance Order (ACO) from the
Environmental Protection Agency (EP A) pursuant to the Clean Air Act (CAA). The ACO alleges that Colstrip Units 3 & 4 have been
in violation of the CAA permit at Colstrip since 1980. The permit required Colstrip to submit for review and approval by the EP A an
analysis and proposal for reducing emissions of nitrogen oxides to address visibility concerns if, and when, EP A promulgates Best
Available Retrofit Technology requirements for nitrogen oxide emissions. The EPA is asserting that regulations. it promulgated in
1980 triggered this requirement. A vista Corp. and PPL Montana, LLC believe that the ACO is unfounded and PPL Montana, LLC is
discussing the matter with the EP A. The ACO does not expressly seek penalties, and it is unclear at this time what, if any, additional
control technology the EP A may consider to be required. Accordingly, the costs to install any additional controls for nitrogen oxides
if required, cannot be estimated at this time. In addition, the Montana Department of Environmental Quality (Montana DEQ) is
questioning whether the permit limits for sulfur dioxide emissions from Colstrip Units 3 & 4 are too high under provisions of the CAA
that limit allowable emissions from sources built after 1978. The owners of Colstrip are engaged in settlement negotiations on these
matters with the EP A, the Montana DEQ and the Northern Cheyenne Tribe. Because the resolution of this issue remains uncertain
legal counsel cannot express an opinion on the extent, if any, of the Company s liability. However, based on information currently
known to the Company s management, the Company does not expect that this issue will have a material adverse effect on its fInancial
condition, results of operations or cash flows. It is possible that a change could occur in the Company s estimates of the probability or
amount of a liability being incurred. Such a change, should it occur, could be significant.
Colstrip Royalty Claim
The Western Energy Company (WECO) supplies coal to the owners of Colstrip Units 3 & 4 under a Coal Supply Agreement and a
Transportation Agreement. The Minerals Management Service (MMS) of the United States Department of the Interior issued an order
to WECO to pay additional royalties concerning coal delivered to Colstrip Units 3 & 4 via the conveyor belt (approximately 4.46 miles
long) that is subject to reimbursement for certain costs under the Transportation Agreement. The owners of Co Is trip Units 3 & 4 take
delivery of the coal at the western end (beginning) of the conveyor belt. The order asserts that additional royalties are owed MMS as a
result of WECO not paying royalties in connection with revenue received by WECO from the owners of Colstrip Units 3 & 4 under the
Transportation Agreement during the period October 1 , 1991 through December 31 , 2001. WECO has appealed the order and the
appeal process could take up to five years to resolve. The owners of Colstrip Units 3 & 4 are monitoring the appeal process between
WECO and MMS.
WECO has indicated to the owners of Colstrip Units 3 & 4 that if WECO is unsuccessful in the appeal process, WECO will seek
I FERC FORM NO.
. (
ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
reimbursement of any royalty payments by passing these costs through the Coal Supply Agreement. The owners of Colstrip Units 3 &
4 advised WECO that their position would be that these claims are not allowable costs per the Coal Supply Agreement nor the
Transportation Agreement in the event the owners of Colstrip Units 3 & 4 were invoiced for these claims. Because the resolution of
this issue remains uncertain, legal counsel cannot express an opinion on the extent; if any, of the Company s liability. However, basedon information currently known to the Company s management, the Company does not expect that this issue will have a material
adverse effect on its fmancial condition, results of operations or cash flows. It is possible that a change could occur in the Company
estimates of the probability or amount of a liability being incurred. Such a change, should it occur, could be significant.
Hamilton Street Bridge Site
A portion of the Hamilton Street Bridge Site in Spokane, Washington (including a former coal gasification plant site that operated for
approximately 60 years until 1948) was acquired by the Company through a merger in 1958. The Company no longer owns the
property. In January 1999, the Company received notice from the State of Washington s Department of Ecology (DOE) that it had
been designated as a potentially liable party (PLP) with respect to any hazardous substances located on this site, stemming from the
Company s past ownership of the former gas plant site. In its notice, the DOE stated that it intended to complete an on-going remedial
investigation of this site, complete a feasibility study to determine the most effective means of halting or controlling future releases of
substances from the site, and to implement appropriate remedial measures. The Company responded to the DOE acknowledging its
listing as a PLP, but requested that additional parties also be listed as PLPs. In the spring of 1999, the DOE named two other parties
as additional PLPs.
The DOE, the Company and another PLP, Burlington Northern & Santa Fe Railway Co. (BNSF) signed an Agreed Order in March
2000 that provided for the completion of a remedial investigation and a feasibility study. The work to be performed under the Agreed
Order includes three major technical parts: completion of the remedial investigation; performance of a focused feasibility study; and
implementation of an interim groundwater monitoring plan. During the second quarter of 2000, the Company received comments
from the DOE on its initial remedial investigation, and then submitted another draft of the remedial investigation, which was accepted
as fmal by the DOE. After responding to comments from the DOE, the feasibility study was accepted by the DOE during the fourth
quarter of 2000. After receiving input from the Company and the other PLPs, the fmal Cleanup Action Plan (CAP) was issued by the
DOE in August 2001. In September 2001, the DOE issued an initial draft Consent Decree for the PLPs to review. During the fIrst
quarter of 2002, the Company and BNSF signed a cost sharing agreement. In September 2002, the Company, BNSF and the DOE
fmalized the Consent Decree to implement the CAP. The third PLP has indicated it will not sign the Consent Decree. It is currently
estimated that the Company s share 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. In September 2004, a Site Preparation Agreement was reached with the third PLP with respect to the logistics of the
CAP. Under this agreement, the third PLP will have the site preparation completed by mid-2005 and work under the CAP will be
completed by late 2005.
Lake Coeur d'Alene
In July 1998, the United States District Court for the District of Idaho issued its rIDding that the Coeur d'Alene Tribe of Idaho (Tribe)
owns, among other things, portions of the bed and banks of Lake Coeur d' Alene (Lake) lying within the current boundaries of the
Coeur d'Alene Reservation. This action had been brought by the United States on behalf of the Tribe against the state of Idaho. The
Company was not a party to this action. The United States District Court decision was affIrmed by the United States Court of Appeals
for the Ninth Circuit. The United States Supreme Court affmned this decision in June 2001. This will result in, among other things
the Company being liable to the Tribe for compensation for the use of reservation lands under Section 10(e) of the Federal Power Act.
The Company s Post Falls Hydroelectric Generating Station (Post Falls), a facility constructed in 1906 with a present capability of 18
, utilizes a dam on the Spokane River downstream of the Lake which controls the water level in the Lake for portions of the year
(including portions of the lakebed owned by the Tribe). The Company has other hydroelectric facilities on the Spokane River
downstream of Post Falls, but these facilities do not affect the water level in the Lake. The Company and the Tribe are engaged in
discussions with respect to past and future compensation (which may include interest) for use of the portions of the bed and banks of
the Lake, which are owned by the Tribe. If the parties cannot agree on the amount of compensation, the matter could result in
litigation. The Company cannot predict the amount of compensation that it will ultimately payor the tenns of such payment.
However, the Company intends to seek recovery of any amounts paid through the rate making process.
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Spokane River Relicensing
The Company 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 Congressional authority and is not licensed by the FERC. The license for the Spokane River Project expires
in August 2007; the Company filed a Notice of Intent to Relicense in July 2002. The formal consultation process involving planning
and information gathering with stakeholder groups has been underway since that time. The Company s goal is to develop with the
stakeholders a comprehensive and cost-effective settlement agreement to be filed as part of the Company s license application to the
FERC in July 2005. The Company provided a Draft License Application for public comment in February 2005. The Company intends
to seek recovery of relicensing costs through the rate making process.
Clark Fork Settlement Agreement
Dissolved atmospheric gas levels exceed state of Idaho and federal water quality standards downstream of the Cabinet Gorge
Hydroelectric Generating Project (Cabinet Gorge) during periods when excess river flows must be diverted over the spillway. Under
the terms of the Clark Fork Settlement Agreement, the Company developed an abatement and mitigation strategy with the other
signatories to the agreement and submitted the Gas Supersaturation Control Program (GSCP) in December 2002 for review and
approval to the Idaho Department of Environmental Quality (DEQ) and the u.S. Fish and Wildlife Service. In February 2004, the
Idaho DEQ and the u.S. Fish and Wildlife Service approved the GSCP. In January 2005, the FERC issued an order approving the
GSCP. The GSCP provides for the opening and modification of one and, potentially, both of the two existing diversion tunnels built
when Cabinet Gorge was originally constructed. Streamflows would be diverted to the tunnels when these flows are in excess of
turbine capacity. The cost of modifying the fITst tunnel is currently preliminarily estimated to be $38 million (including AFUDC and
inflation) and would be incurred between 2004 and 2010, with the majority of these costs being incurred in 2007 through 2009. The
second tunnel would be modified only after evaluation of the performance of the fITst tunnel and such modifications would commence
no later than 10 years following the completion of the fITst tunnel. It is currently preliminarily estimated that the costs to modify the
second tunnel would be $26 million (including AFUDC and inflation). As part of the GSCP, the Company provides $0.5 million
annually as mitigation for aquatic resources that might be adversely affected by high dissolved gas levels. Mitigation funds will
continue until the modification of the second tunnel commences or if the second tunnel is not modified to an agreed upon point in time
commensurate with the biological effects of high dissolved gas levels. The Company intends to seek recovery of the costs for the
modification of Cabinet Gorge and the mitigation payments through the rate making process.
The operating license for the Clark Fork Project describes the approach to restore bull trout populations in the project areas. Using the
concept of adaptive management and working closely with the U.S. Fish and Wildlife Service, the Company is evaluating the
feasibility of fish passage. The results of these studies will help the Company and other parties determine the best use of funds toward
continuing fish passage efforts or other fish population enhancement measures.
Other Contingencies
In the normal course of business, the Company has various other legal claims and contingent matters outstanding. The Company
believes that any ultimate liability arising from these actions will not have a material adverse impact on the Company s fmancial
condition, results of operations or cash flows. It is possible that a change could occur in the Company s estimates of the probability or
amount of a liability being incurred. Such a change, should it occur, could be significant.
The Company routinely assesses, based on in-depth studies, expert analyses and legal reviews, its contingencies, obligations and
commitments for remediation of contaminated sites, including assessments of ranges and probabilities of recoveries from other
responsible parties who have and have not agreed to a settlement and recoveries from insurance carriers. The Companys policy is to
accrue and charge to current expense identified exposures related to environmental remediation sites based on estimates of
investigation, cleanup and monitoring costs to be incurred.
The Company has 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, measures adopted and implemented
have had minimal impact on the Company.
Under the federal licenses for its hydroelectric projects, the Company is obligated to protect its property rights, including water rights.
The State of Montana is examining the status of all water right claims within state boundaries. Claims within the Clark Fork River
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
basin could potentially adversely affect the energy production of the Company s Cabinet Gorge and Noxon Rapids hydroelectric
facilities. The Company is participating in this extensive adjudication process, which is unlikely to be concluded in the foreseeable
future.
The Company must be in compliance with requirements under the Clean Air Act Amendments at the Colstrip thermal generating plant
in which the Company maintains an ownership interest. The anticipated share of costs at Colstrip is not expected to have a major
economic impact on the Company.
As of December 31 , 2004, the Company s collective bargaining agreement with the International Brotherhood of Electrical Workers
represented approximately 50 percent of all A vista Corp. employees. The current agreement with the local union representing the
majority (approximately 90 percent) of the bargaining unit employees expires on March 25 , 2005. A local agreement in the South
Lake Tahoe area, which represents 5 employees, also expires on March 25, 2005. Two local agreements in Oregon, which cover
approximately 50 employees, will expire on March 31 , 2005. Another local agreement in Oregon is not up for negotiations until 2007.
Negotiations are currently ongoing with respect to the labor agreements that expire in March 2005.
NOTE 22. INFORMATION SERVICES CONTRACTS
The Company has information services contracts that expire between 2006 and 2012. Total payments under these contracts were $12.
million, $12.0 million and $9.7 million in 2004, 2003 and 2002, respectively. The majority of these costs are included in
administrative and general expenses in the Statements of Income. Minimmn contractual obligations under the Company s information
services contracts are approximately $12.4 million in 2005, $12.1 million in 2006 and $10.8 million per year from 2007 through 2012.
The most significant of these contracts provides for increases due to changes in the cost of living index and further provides flexibility
in the annual obligation from year-to-year subject to a three-year true-up cycle.
NOTE 23. DISPOSITION OF SOUTH LAKE TAHOE PROPERTIES
In July 2004, A vista Corp. reached an agreement to sell its South Lake Tahoe natural gas distribution properties to Southwest Gas
Corporation as part of Avista Corp.s strategy to focus on its business in the northwestern United States. The agreed upon cash
purchase price for the properties is approximately $15 million, subject to closing adjustments. In February 2005, a CPUC
Administrative Law Judge issued a draft order, subject to comment, that authorizes the proposed purchase and sale agreement under
the terms of a settlement agreement among the parties to the CPUC proceedings. The agreement is subject to customary closing
conditions, as well as regulatory review and approval by the CPUC. Final approval of the transaction has been placed on the CPUC'
meeting agenda for possible action on March 17, 2005. The Company expects the sale to be completed in the rust half of 2005.
As of December 31 2004, Avista Corp. serviced approximately 18 750 customers (or 6 percent of total natural gas customers) in the
South Lake Tahoe region. Total revenues for 2004 from the South Lake Tahoe region were approximately $20.3 million (or 6 percent
of total natural gas revenues) and approximately 22.1 million therms were delivered (or 4 percent of total therms delivered) to South
Lake Tahoe customers.
NOTE 24. ACQUISITION OF REMAINING INTEREST IN COYOTE SPRINGS 2
In January 2005, Avista Corp. completed the acquisition of Mirant OregonLLC's 50 percent ownership interest in Coyote Springs 2 at
a price of $62.5 million. Mirant Oregon LLC acquired an indirect 50 percent ownership interest in Coyote Springs 2 from the
Company during construction in 2001.
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 25. SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest
Cash paid for income taxes
2004
$79 380 054
320 684
2003
$84 644 701
475 767
Non-cash fInancing and investing activities:
Tranfer of Coyote Springs 2 from subsidiary
Equipment acquired under capital leases
Unfunded accumulated benefit obligation
Intangible asset related to pension plan
Unrealized loss on interest rate swap
365 083
(11 022 184)
(653 660)
(6,482 354)
106 766 034
106 109
198,410
(653 659)
Other Cash Flows from Operating Activities:
Loss from IPUC order deferred power costs
Loss from IPUC order utility plant
Increase in special deposits
Change in other current assets
959 115
457 249
(572 613)
228 649)803 240
I FERC FORM NO.(ED. 12-88)Page 123.
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) n A Resubmission 04/25/2005
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
1. Report in columns (b),(c),(d) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate.
Year/Period of Report
End of 2004/Q4
2. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges.
3. For each category of hedges that have been accounted for as "fair value hedges , report the accounts affected and the related amounts in a footnote.
Line
No.
Item Unrealized Gains and
Losses on Available-
for-Sale Securities
(b)
Minimum Pension
Liability adjustment
(net amount)
(c)
Foreign Currency
Hedges
Other
Adjustments
(a)
1 Balance of Account 219 at Beginning of
Preceding QuarterNear
2 Preceding QuarterNear Reclassification
from Account 219 to Net Income
3 Preceding QuarterNear Changes in Fair
Value
4 Total (lines 2 and 3)
5 Balance of Account 219 at End of
Preceding QuarterNear / Beginning of
6 Current QuarterNear Reclassifications from
Account 219 to Net Income
7 Current QuarterNear Changes in Fair Value
8 Total (Jines 6 and 7)
9 Balance of Account 219 at End of Current
QuarterNear
(d)(e)
18,809 177)
9,454 088
9,454,088
355 089)
589 299)
589,299)
16,944 388)
FERC FORM NO.2 (NEW 06-02)Page 122a
Name of Respondent This ~ort Is: Date of Report Year/Period of ReportAvista Corporation (1) ~An Original (Mo, Da, Yr) End of 2004/04(2) A Resubmission 04/25/2005
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
Other Cash Flow
Line Hedges
No.Interest Rate Swaps
(f)
213 530)
213 530)
213 530)
Other Cash Flow
Hedges
(Specify)
Totals for each
category of items
recorded in
Account 219
(h)
( 18 809,177)
(g)
9,454 088
9,454,088
355,089)
802 829)
11,802 829)
157 918)
FERC FORM NO.2 (NEW 06-02)Page 122b
Net Income (Carried
Forward from
Page 117, Line 72)
Total
Comprehensive
Income
(i)
(j)
Name of Respondent This Report Is:Date or Report Year of Report
(1)~An Original (Mo Yr)
A vista Corporation (2) DA Resubmission April 2005 Dec.2004
SUMMARY UTILITY PLANT AND ACCUMULATED PR OVISI ONS
FOR EPRECIA TI ON,AMORTIZATION AND EPLETI 0 N
Line Item Total Electric
No.
(a)(b)(c)
UTILITY PLAM
Service
Plant in Service (Classified)599 493 023 032 356 785
Property Under Capital Leases 270 937
Plant Purchased Sold
Completed Construction not Classified
Experimental Plant Unclassified
TOTAL (Enter Total of lines tbru 604 763 960 032 356 785
Leased Others
Held for Future Use
Construction Work in Progress 895 113 456 293
Acquisition Adiustments 580 073
TOTAL Utility Plant (Enter Total of lines tbru 12 681 239 146 070 813 078
Accum.Prov.for DePT.Amort.Depl.928 445 545 692 153 884
Net Utility Plant (Enter total of line less 14)752 793 601 378 659 194
DETAIL ACCUMULATED PROVISIONS FOR
EPRECIA TI ON AMORTIZATION AND DEPLETION
Service:
Depreciation 899,493 717 681 488 277
Amort.and Depl.of Producing N at.Gas Land and Land Rights mmmmlll!llllllllilllllllllilllllllllllllllllllllllllllIIIIIIII!IIII!IIIII
Amort.Other Utility Plant 304 781 665 607
TOTAL Service (Enter Total of lines tbru 21)910 798 498 692 153 884
Leased Others illll!IIIIIIII!IIIIIIII!lllllllllilllllllllllllllllll!Illilllllllllllll:lmllllllllllllllllll!III!11111111111111111!11!11!11111!lllllillllllllllllllllllllllllllll:1
Depreciation
Amortization and Depletion
TOTAL Leased Others (Enter Total of lines and 25)
Held for Future Use IIIIIIIIIIIIIIIIIIIIIIIIII!IIIIIIIIIIIIIIIIIIIIIIIII!I1IIIilllllllllmllllllllllllmll!IIIIIIIIIII!IIIIIIIII!1!IIIII!IIII:III!IIII!IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Depreciation
Amortization
TOTAL Held for Future Use (En t.Tot.of lines and 29)
Abandonment of Leases (Natural Gas)111111111111111111111111111111!lllllIlllllllillll!lllm!IIIIIIIIIIIIIIIIIIIIII!I
Amort.of Plant Acquisition Adiustment 647 047
TOTAL Accumulated Provisions (Should agree with line above)
(Enter Total of lines and 32)928 445 545 692 153 884
FERC FORM NO.2 (ED. 12-89)Page 200
Name of Respondent
A vista Corporation
This R~rt Is: Date 0 Report(1) 129 An Original
(2) A Resubmission April 25, 2005
Year 0 Report
Dec. 31 2004
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)
Gas Other (Specify)Other (Specify)Other (Specify)Common Line
No.
503 773,459
365,491
362 779
905 446
268 225
818 804
087 029
509,449
577 580
505 138 950
620 016
580 073
537 339 039
212 782 212
324 556 827
647 047
212 782 212 509 449
FERC FORM NO.2 (ED. 12-89)Page 201
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Ds, Yr)
Year Ending
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106
1. Report below the original cost of gas plant in service according estimated basis if necessary, and include the entries in column (c).to the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 101, Gas Plant in Service (Classified), distributions of prior year reported in column (b). Likewise, if the
this page and the next include Account 102, Gas Plant Purchased respondent has a significant amount of plant retirements which have
or Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the account for
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year s unclassified
indicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Line
No.
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 Or anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
592.
184 365.
TOTAL Manufactured Gas Production Plant Entertotal of lines 8-
PRODUCTS EXTRACTION PLANT
628.
65,344.945.
72,973.944.
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.) A Resubmission April 25,2005 Dec. 31, 2004
GAS PLANT IN SERVICE ACCOUNTS 101,102,103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (f) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in
avoid serious omissions of respondent's reported amount for this account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (f) reclassifications or transfers within conforming to the requirements of these pages.
utility plant accounts. include also in column (f) the additions 8. For each amount comprising the reported balance and changes
or reductions of primary account classifications arising from in Account 102, state the property purchased or sold, name of
distribution of amounts initially recorded in Account 102. In vendor or purchaser, and date of transaction. If proposed journal
showing the clearance of Account 102, include in column (e) entries have been filed with the Commission as required by the
the amounts with respect to accumulated provision for Uniform System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.
Retirements Adjustments Transfers Balance at End of Year Line
No.
592.
587 852.96,640.862,506.48
Page 205
628.34 00 00 00 00 00
00
289.65 00 00 00 00 00 00 00 00 00
74,917.99
00 00 00 00 00 00
FERC FORM NO.2 (ED. 12-96)
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
346 Gas Measuring and Regulating Equipment
347 Other Equipment
TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)
TOTAL Natural Gas Production Plant (Enter Total of lines 36)
Manufactured Gas Production Plant (Submit Supplementary Statement)72,973.944.
TOTAL Production Plant (Enter Total of lines 37 and 38)72,973.944.
NATURAL GAS STORAGE AND PROCESSING PLANT
Underground Storage Plant
350.1 Land 412,611.
350.2 Rights-of-Way 23,874.
351 Structures and Improvements 063,699.
352 Wells 757,699.947.
352.1 Storage Leaseholds and Rights 254 354.
352.2 Reservoirs 203 330.47
352.3 Non-recoverable Natural Gas 121 926.
353 Lines 823,422.
354 Compressor Station EQuipment 934,085.82,836.
355 MeasurinQ and ReQulatinQ EQuipment 153,964.
356 Purification EQuipment 403,712.
357 Other Equipment 644,493.173.
TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)18,797,174.90,957.
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification EQuipment
363.1 liQuefaction EQuipment
363.2 VaporizinQ EQuipment
363.3 Compressor EQuipment
363.4 Measuring and ReQulatinQ EQuipment
363.5 Other Equipment
TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)
Base Load Liquefied Natural Gas Terminaling and Processing Plant
364.1 Land and Land Rights
364.2 Structures and Improvements
364.3 LNG ProcessinQ Terminal EQuipment
364.4 LNG Transporation EQuipment
364.5 Measuring and Regulating Equipment
364.6 Compressor Station Equipment
364.7 Communications Equipment
364.8 Other EQuipment
TOTAL Base Load LiQ Nat'l Gas, Terminal and Processing Plant (lines 67-7
TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54 65 and 7~18,797,174.90,957.
TRANSMISSION PLANT
365.1 Land and Land RiQhts
365.2 Rights-of-Way
366 Structures and Improvements
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:Date of Report Year Ending
( X1 An Original (Mo, DB, Yr)
Avista Corp.) A Resubmission April 25,2005 Dec. 31, 2004
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)
(g)
No.
74,917.
74,917.
412 611.
23,874.
063,699.
747.713,899.
254,354.
203,330.47
121,926.
823,422.
23,123.993,799.
153,964.
00 403,712.
651,666.
67,870.18,820,261.
870.18,820,261.
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Ds, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101 , 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
367 Mains
368 Compressor Station Equipment
369 Measuring and Regulating Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land Rights 113,895.(484.51)
375 Structures and Improvements 628,124.172.
376 Mains 225,816,742.763,902.
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General 377,497.206,151.
379 Measuring and Regulating Equipment-City Gate 831,540.98,883.
380 Services 162,816,596.040,822.
381 Meters 327,430.494,929.
382 Meter Installations 00
383 House Regulators
384 House Regulator Installations
385 Industrial Measuring and Regulating Station Equipment 588,312.366,812.
100 386 Other Property on Customers' Premises
101 386 Other Equipment 539.
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)449 500,678.41 20,977,190.
103 GENERAL PLANT
104 389 Land and Land Rights 330,820.
105 390 Structures and Improvements 309,692.73,685.
106 391 Office Furniture and Equipment 685.
107 392 Transportation Equipment 988,671 .125,847.
108 393 Stores Equipment 83,972.20,449.
109 394 Tools, Shop, and Garage Equipment.386,575.119,555.
110 395 Laboratory Equipment 906,600.272.40
111 396 Power Operated Equipment 492 803.803,070.
112 397 Communication Equipment 621,137.45,993.
113 398 Miscellaneous Equipment 34,471.
114 Subtotal (Enter Totals of lines 104 thru 113)13,164,429.193,874.47
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)13,164,429.193,874.47
117 TOTAL (Accounts 101 and 106)484,721,213.40 23,433,319.
118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction 8)
120 Experimental Gas Plant Unclassified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)484,721,213.433,319.
FERC FORM NO.2 (ED. 12-96)Page 208
Name of Respondent This report is:Date of Report Year Ending
( X1 An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25,2005 Dec. 31, 2004
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)
(g)
No.
113,411 .
221.248.640,323.
163,695.43 621.234 417 570.
115.(255,544.88)313,989.
224.146,801.43 058,001.
407,879.171,449,538.
346,383.(9,554.99)53,466,421.
860.747.955,012.
100
539.101.102
103
330,820.104
951.14 381,426.105
685.106
70,773.043,745.107
526.100 895.108
257 164.248,966.109
847.909,025.110
295,873.111
54,853.(491.27)611,785.112
831.32,640.113
392,947.(491.27)14,964 865.114
115
392,947.(491.14,964 865.116
005,050.(10,533.505,138,949.117
118
119
120
005,050.(10,533.25)505,138,949.121
FERC FORM NO.2 (ED. 12-96)Page 209
Name of Respondent This report is: Date of Report Year Ending
( X) An Original (Mo, Ds, Yr)
) A Resubmission April 25, 2005 Dec. 31, 2004
CONSTRUCTION WORK IN PROGRESS-GAS (ACCOUNT 107)
1. Report below descriptions and balances at end of year of and Demonstration (see Account 107 of the Uniform System of
projects in process of construction (Account 107). Accounts).
2. Show items relating to "research, development, and 3. Minor projects (less than $1,000,000) may be grouped.
demonstration" projects last, under a caption Research
Avista Corp.
Line Description of ProjectNo.
STATE OF WASHINGTON
Minor Projects (27) Under $1,000,000
STATE OF IDAHO
12 Minor Projects (15) Under $1,000,000
21 STATE OF CALIFORNIA
23 Minor Projects (0) under $1 000,000
26 COMMON-OR/CA/W A/ID
28 Minor Projects (4) under $1,000,000
45 TOTAL
Construction Work in Progress-Gas
(Account 1 07)
(b)
Estimated Additional
Cost of Project
(c)
753,278.343,421.
271,687.69,537.
STATE OF OREGON
Install AMR in Oregon
Minor Projects (28) Under $1 000,000
175,273.
1 ,905,609.
348,726.
369,717.
514,167.406,552.47
620,017.537 954.
FERC FORM NO.2 (ED. 12-96)Page 216
Name of Respondent This Report Is:Date of Report Year of Report
( 1 ) An Original (Mo Da, Yr)
Avista Corporation
(2)0 A Resubffilssion Apri125, 2005 Dec. 31, 2004
ACCUMULATED PROVISION FOR DEPRECIATION OF GAS UTILITY PLANT (Account 119)
1. Explain in footnote any important adjustments the respondent has a significant amount of plant retired at
during year.year end which has not been recorded andlor classified to
2. Explain in a footnote any difference between the amount the various reserve functional classifications, make
for book cost of plant retired, line 11, column (c), and that preliminary closing entries to tentatively functionalize the
reported for gas plant in service, pages 204-209, column (d),book cost of the plant retired. In addition, include all costs
excluding retirements of non-depreciable property.included in retirement work in progress at year end in the
3. The provisions of Account 108 in the Unifonn System appropriate functional classifications.
of Accounts require that retirements of depreciable plant 4. Show separately mterest credits under a sinking fund
be recorded when such plant is removed from service. If or similar method of depreciation accounting.
Section A. Balances and Chane:es Durine: Year
Line Item Total Gas Plant in Gas Plant Held Gas Plant Leased
No.(c+d+e)Service for Future Use to Others
(a)(b)(c)(d)(e)
Billance Be~mnm~ of Year 181,170,101 181,170,101
Depreciation Provisions for Year,
Char~ed to
(403) Depreciation Expense 14,264 210 264 210
(413) Exp. of Gas PIt. Leas. to Others
Transportation Expenses-Clearin~216 636 216 636
Other Clearin~ Accounts
Other Accounts (Specify):
Transfer to common (transporation clear)
TOTAL Depree. Prov. for Year 14,480 846 480 846
(Enter Total of lines 3 thru 8)
Net Char~es for Plant Retired:
Book Cost of Plant Retired 417 198)(1,417 198)
Cost of Removal (222 967)(222 967)
Salvae:e (Credit)951 951
TOTAL Net Chrgs. for Plant Ret.634 214)(1,634 214)
(Enter Total oflines 11 thru 13)
Other Debit or Credit Items (Describe)
Balance End of Year (Enter
Total oflines 1 , 14, 15, and 16)194 016 733 194 016,733
Section B. Billances at End of Year Accordme: to Functional Classifications
Production-Manufactured Gas (69,041)(69,041)
Prod. and Gatherin~-Natura1 Gas
Products Extraction-Natural Gas
Underground Gas Stora~e 394,257 394 257
Other Stora~e Plant
Base Load LNG Tenn and Proc. PIt.
Transmission
Distribution 177,996 005 177 996 005
General 695 512 695 512
TOTAL (Enter Total of lines 18 194 016 733 194 016 733
thru 26)
FERC FORM NO.2 (ED. 12-87)Page 219
Name of Respondent This Report Is:Date of Report Year of Report
181 An Original (Mo, Da, Yr)
Avista Corporation D A Resubmission April 25, 2005 Dec. 31 , 2004
GAS STORED (ACCOUNT 117., 117., 117., 117.164.164., AND 164.
If durring the year adjustments were made to the stored gas inventory State in a footnote the basis of segregation of inventory between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions. Also state in a footnote the
inaccuracies of gas measurements), explain in a footnote the reason for method used to report storage (I.e. fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method).
charged or credited.
2 Report in column (e) all encroachments during the year upon the volumes
designated as base gas, column (b), and system balancing gas, column
( c ), and gas property recordable in the plant accounts.
(Account (Account Noncurrent (Account Current LNG LNG
Line Description 117.117.(Account 117.117.(Account 164.(Account 164.(Account 164.Total
No.(a)(b)(e)(d)(e)
(q)
(h)(i)
Balance at Beoinnino of Year 176 476 633 667 810,143
Gas Delivered to Storage 597,183 338 195 935,378
Gas Withdrawn from Storaoe 12,505,403 237,996 12,743,399
Other Debits and Credits 433 433)
Balance at End of Year 268 255 724 433 992,688
Dth 750,097 277,054 027 151
Amount Per Dekatherm $5.2959 $2.6148 $4.9294
State basis of segregation of inventory between current and noncurrent portions:
Current portion is gas expected to be sold within a 24 month period. All other gas is considered non-current.
FERC FORM NO.(ED. 12-96)Page 220
This Page Intentionally Left Blank
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.
1. Report below investments in Accounts 123.1, investments in Subsidiary Companies.
2. Provide a subheading for each company and List there under the information called for below. Sub - TOTAL by company and give a TOTAL in
columns (e),(f),(g) and (h)
(a) Investment in Securities - List and describe each security owned. For bonds give also principal amount, date of issue, maturity and interest rate.
(b) Investment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to
current settlement. With respect to each advance show whether the advance isa note or open account. List each note giving date of issuance, maturity
date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary earnings since acquisition. The TOTAL in column (e) should equal the amount entered for
Account 418.
Description of Investment Date Acquired Date Of Amount of Investment at
No.(b)l~rity
Beginning of Year
(a)(d)
Avista Capital - Common Stock 1997 184 251,609
Avista Capital- Equity in Earnings 71,652 879
Dividends from Subsidiary (Avista Capital)
ITotal Cost of Account 123.1 $TOTAL 255,904,488
FERC FORM NO.(ED. 12-89)Page 224
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.1) (Continued)
4. For any securities, notes, or accounts that were pledged designate such securities, notes, or accounts in a footnote, and state the name of pledgee
and purpose of the pledge.
5. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission,
date of authorization, and case or docket number.
6. Report column (f) interest and dividend revenues form investments, including such revenues form securities disposed of during the year.
7. In column (h) report for each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or
the other amount at which carried in the books of account if difference from cost) and the selling price thereof, not including interest adjustment includible
in column (f).
8. Report on Line 42, column (a) the TOTAL cost of Account 123.
Equity In Subsidiary Revenues for Year Amount of InvesbTIent at Gain or Loss from Investment LineEarnin~s of Year End rJ)Year DiSP~~fd of No.(f)
184,251,609
381,428 75,034 306
2,499,315 2,499,315
381,428 499 315 256,786,600
FERC FORM NO.2 (ED. 12-89)Page 225
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 2004
PREP A YMENTS (ACCOUNT 165)
1. Report below the particulars (details) on each prepayment.
Line Nature of Prepayment Balance at End of
No.Year(in dollars)
(a)(b)
Prepaid Insurance 720,995
Prepaid Rents
Prepaid Taxes
Prepaid Interest
Miscellaneous Prepayments 246,430
TOTAL 967,425
FERC FORM NO.2 (ED. 12-96)Page 230
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
OTHER REGULATORY ASSETS (Account 182.
1. Report below the particulars (details) called for concE!rning other regulatory assets, including rate order docket number, if applicable.2. Minor items (5% of the Balance in Account 182.3 at end of period, or amounts less than $50,000 which ever is less), may be grouped
by classes.
3. For Regulatory Assets being amortized, show period of amortization.
Line Description and Purpose of Balance at Debits CREDITS Balance at end ofNo.Other Regulatory Assets Beginning of Written oft Dunng Wntten oft Dunng CUITent QuarterlYear
CUITent the QuarterlYear the Period
QuarterlY ear Account Charged Amount
(a)(b)(c)(d)(e)(f)
FAS 106 - Accounting for Post Retirement 254,768 926.472,752 782,016
Benefits, other than Pensions (182.30)
182.30 Amort period 1996-2012
FAS 109 - Acctng for Income Taxes Util Prop 132097,287 283.17,630,630 123,466,657
(182.31 & 182.32)
WA ERM Deferral Balance (182.35)Power Supp 99,774,940 655,027 186.102,429,967
WA Amortization (182.36)974,754 557.307,296 667,458
182.36 Amort period 2004-2006
Hamilton Street Bridge - WA (182.39,028)125.676 407.125,676
Hamilton Street Bridge -ID (182.39 038)105,300 407.105,300
BPA RES Exchange (182.45, 028)195.192 254.195,192
BPA RES Exchange AIR (182.45. 098)679,445 254.45 679,445
BPA RES Exchange o int Rec (182.46,028)30,267 419.30,267
BPA RES Exchange o int Rec (182.46,038)278 419.078 200
FAS 143-ARO Reg Asset (182.76)436,329)549,979 230.113,650
Oregon DSM Long-Term Reg Asset (182.80)632,736)various 208,065 -840,801
Workers Comp (182.83)688,889 671,996 242.360,885
TOTAL 239,863,731 877 002 11,758,701 231.982 032
FERC FORM NO.(REV. 02-04)Page 232
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
MISCELLANEOUS DEFFERED DEBITS (Account 186)
1. Report below the particulars (details) called for conc~rning miscellaneous deferred debits.
2. For any deferred debit being amortized, show period of amortization in column (a)
3. Minor item (1 % of the Balance at End of Year for Account 186 or amounts less than $50,000, whichever is less) may be grouped byclasses.
Line Description of Miscellaneous Balance at Debits CREDITS Balance at
No.Deferred Debits Beginning of Year ~(:count Amount End of YearChar~ed(a)(b)(c)(e)(f)Regulatory Deferrals - W A
Colstrip Common Fac.571 320 539 679 406 110,999
WA Accrued Power Def 139 007 139 007
WA Deferred Power Costs 791 372 013 674 10,777 698WA ERM YTD Company Band 000 000 000,000WA ERM YTD Contra Account 000 000 000,000
Regulatory Deferrals - ID
ID Deferred New Generation 736,944 184 236 552 708
Colstrip Common Fac.211 544 144 098 406 355,642Idaho Accrued PCA Def 596,258 596 258
I D Deferred Power 338,083 850,010 var.86,188 093
ID Accumulated Surcharge Am 649,481 557 23,040 185 76,689 666
CS2 Levelized Return 161 747 161 747
Payroll Accrual 909,178 var.919 898 989,280
Payroll Loading Clearing 677 798 677 798
PPP Surcharge 454,349 454 349
Misc Error Suspense 353 016 var.328,028 988
WPI-ID Terminated Elec Pur.391 997 555 391 997
Unamortized AIR Sale 241 146 144 336 96,810
Intangible Pension Asset 712 151 228.653 660 058,491
Nez Perce Settlement 207,659 557 214 202 445
Centralia Mine Env Balance 572 324 021 578,345
DES Contract Amortization 25,372 556 25,372
Metro-Sunset 115KV TE 114 581 159,108 273,689CS2 Purchase 101 095 101 095
UPRR Permit Con v 331 370 258 331 628
Ortho Business Activity 136 054 137 719 665
Canadian GST Tax 13,117 039,727 var.052 844
Nez Perce Forest
Nez Perce Permit Conversion 38,983 503 53,486
Electric Network
Misc Work Orders 0::$50,000 278 541 101 353 379,894
Subsidiary Billings 894 860 441 254 var.336,114
Misc. Work in Progress
Deferred Regt.ifatory -C-omm.
Expenses (See pages 350 - 351)
TOTAL 083,253 242,169
FERC FORM NO.2 (ED. 12-94)Page 233
Name of Respondent This (!)ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
MISCELLANEOUS DEFFERED DEBITS (Account 186)
1. Report below the particulars (details) called for conc~rning miscellaneous deferred debits.
2. For any deferred debit being amortized, show period of amortization in column (a)
3. Minor 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
classes.
Line Description of Miscellaneous Balance at Debits CREDITS Balance at
No.Deferred Debits Beginning of Year ~~count Amount End of YearChar~ed(a)(b)(c)(e)(f)
Conservation
Enhanced Low Income Wzn 600 600
Oregon Gas Comm Consvt 177 675 184,707 032
Oregon Shower Head 107 134 777 908 174,911
Oregon Common Gas Eft 163,978 590 188 568
WPNG HE Wtr Htrs-Oregon 286,496 837 276 659
WPNG HE Furnaces 028,309 298,337 326,646
WPNG CA RES UI-56,066 724 var.658
WPNG OR Res Low 171 746 173 105 908 344 851
Regulatory-Sched 67 197 350 908 33,066 164 284
Reg-Water Heat Conv 033 287 908 152 358 880 929
Reg-SpacelWater Con 061 613 908 704 560 357 053
Reg-Elec Commllnd 663,417 908 116,375 547 042
Reg-Gas Wzn Res 032 724 908 153,145 879,579
Reg-UI EleclGas 348 471 908 738 298,733
Reg-Elec Manuf Home 284 794 908 48,984 235,810
Reg-Comm/lnd Gas 116,220 908 19,599 96,621
Reg-Gas Res Appl Ef 1 ,402 436 908 208,179 194 257
Reg-Gas Res Showerhead 564 908 047 517
Reg Elect Res Wzn 234 908 643 41,591
Reg UI Elec Wzn 81,841 908 099 742
Reg Elec Res Shwr 20,802 908 802
Reg C/I Elec Fuel 195 213 908 221 160,992
Reg Gas AE. Wtr 111,154 908 130 024
Reg Low Income Gas Wzn 337 567 908 56,634 280,933
Care - California 55,207 940 733
Consv. & Renewable Disco 199,787 336 332 536,119
Sand point DSR - PPL 740,353 908 113,387 626 966
Gas Plant
Hamilton Street Bridge Site 693 var.53,693
Electric Plant
Post Falls No Channel Study
Port Of Seattle 507 243 750
Easy Pay Billing CS 137 889 357 532
Lake CDA Issues 603 105 262 408 865 513
Shareholder Lawsuit 2002 211 186 755 069 966 255
Misc. Work in Progress
I Deferred Regulatory Comm.
Expenses (See pages 350 - 351)
TOTAL 86,083 253 51,242,169
FERC FORM NO.2 (ED. 12-94)Page 233.
A vista Corp
This R~rt Is:(1) ~ An Original
(2) A Resubmission
Date of Report
(M, D,
April 25, 2004
Year of ReportName of Respondent
Dec. 31, 2004
ACCUMULA TED DEFERRED INCOME TAXES (ACCOUNT 190)
(a)
2. At Other (Specify), include deferrals relating to
other income and deductions.
3. At lines 4 and 6, add rows as necessary to report
all data.. Number the additional rows in sequence
01,02, etc. and 6.01, 6.02, etc.
Balance at CHANGES DURING YEAR
gjnnin Amounts Amountsill ~ar D~~ ro C~~
Account 410.Account 411.1(c) (d)
1. Report the information called for below concerning the
respondent s accounting for deferred income taxes.
Line
No.
Account Subdivisions
Account 190
Electric
Gas
11,330,752
832,996)
658,136
203,870
301,697
(229,448)
Other (Define)
497,756
24,724 630
862,006
(241,052)
072,249
831,982
Total (Total of lines 2 thru 4)
Other (S ec
' )
TOTAL Account 190 (Total of lines 5 thru 6)
Classification of TOTAL
Federal Income Tax
10 State Income Tax
11 Local Income Tax
Common
34,222,386 620,954
34,222,386 620,954 2,904,231
FERC FORM NO.2 (12-98)Page 234
A vista Corp
This Report Is:
(1)~An Original
(2)DA Resubmission
Date of Report
(Mo, Da, Yr)
April 25, 2004
Year of ReportName of Respondent
Dec. 31, 2004
ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT 190) (Continued)
4. If more space is needed, use separate pages
as required.
5. In the space provided below, identify by amount
and classification, significant items for which
deferred taxes are being provided. Indicate
insignificant amounts listed under "Other.
CHANGES DURING YEARAmounts Amounts
Debited to Credited to
Account 410.Account 411.2
(e)
ADJUSTMENTS
Debits to 190 Credits to 190 Balance at
End of Year
Line
No.
Amount Amount
26,556
11,818,604
(3,580,092) 3
0 3.
0 4.
0 4.
8,238,512
31,165,316 6
410,035
086,545 6.
1,992,265 6.
50,892,673
50,892,673
254.26,556
(892,145)
83,038
680,714 186.268,824
236.410,035
219.086,545
various 992,265
763,752 11,765,404
763,752 11,765,404
26,556(474,031)
(418,114)
(892,145)26,556
FERC FORM NO.2 (12-98)Page 235
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
CAPITAL STOCKS (Account 201 and 204)
1. Report below the particulars (details) called for concerning common and preferred stock at end of year, distinguishing separate
series of any general class. Show separate totals for common and preferred stock. If information to meet the stock exchange reporting
requirement outlined in column (a) is available from the SEC 10-K Report Form filing, a specific reference to report form (Le., year and
company title) may be reported in column (a) provided the fiscal years for both the 10-K report and this report are compatible.
2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year.
Line Class and Series of Stock and Number of shares Par or Stated Call Price at
No.Name of Stock Series Authorized by Charter Value per share End of Year
(a)(b)(c)(d)
Account 201 - Common Stock Issued
No Par Value 200 000 000
TOTAL COM 200,000 000
Account 204 - Preferred Stock Issued 000,000
Cumulative
TOTAL PRE 10,000,000
FERC FORM NO.(ED. 12-91)Page 250
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/Q4(2) n A Resubmission 04/25/2005
CAPITAL STOCKS (Account 201 and 204) (Continued)
3. Give particulars (details) concerning shares of any class and series of stock authorized to be issued by a regulatory commission
which have not yet been issued.
4. The identification of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or
non-cumulative.
5. State in a footnote if any capital stock which has been nominally issued is nominally outstanding at end of year.
Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which
is pledged, stating name of pledgee and purposes of pledge.
OUTSTANDING PER BALANCE SHEET HELD BY RESPONDENT Line(Total amount outstanding without reduction
AS REACQUIRED STOCK (Account 217)IN SINKING AND OTHER FUNDS No.for amounts held by respondent)
Shares Amount Shares ~pst Shares Amount(e)(f)
(g)
(h)(i)
(j)
471 511 629,055,981
48,4 71 511 629,055 981
FERC FORM NO.2 (ED. 12-88)Page 251
Name of Respondent This (!)ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
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. If any change occurred 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 specify the account charged.
Une Class and Senes of Stock Balance at End or year
No.(a)(b)
Common Stock - Public Issue 822 732
Shares issued under provisions of Respondant's Dividend Reinvestment and Stock Purchase Plan 442,145
Shares issued under provisions of Respondant's Employee Stock Purchase Plan 839
Common Stock - 401 215,137
Common Stock - Periodic Offering Program (POP)599,768
$6.95 Preferred Stock, Series K 334 005
Common Stock Split 187 872
22 TOTAL 10,676,498
FERC FORM NO.2 (ED. 12-87)Page 254b
This Page Intentionally Left Blank
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
LONG-TERM DEBT (Account 221 222 223 and 224)
1. Report by balance sheet account the particulars (details) concerning long-term debt included in Accounts 221 , Bonds, 222
Reacquired Bonds, 223, Advances from Associated Companies, and 224, Other long-Term Debt.
2. In 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. Include in column (a) names of associated companies from which advances were received.
5. For receivers, certificates, show in column (a) the name of the court -and date of court order under which such certificates were
issued.
6. In column (b) show the principal amount of bonds or other long-term debt originally issued.
7. In 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.
Indicate the premium or discount with a notation, such as (P) or (D). The expenses, premium or discount should not be netted.
9. Furnish in a footnote particulars (details) regarding the treatment of unamortized debt expense , premium or discount associated with
issues redeemed during the year. Also, give in a footnote the date of the Commission s authorization of treatment other than as
specified by the Uniform System of Accounts.
Line Class and Series of Obligation, Coupon Rate Principal Amount Total expense,
No.(For new issue, give commission Authorization numbers and dates)Of Debt issued Premium or Discount
(a)(b)(c)
Acet. 221 - Bonds:
Secured Medium Term Notes $1 062,550,000 873,850,000 937 218
(Premium)50,220
Pollution Control Revenue Bonds:
6% Series due 2023 100,000 345 385
Colstrip 1999A due 2032 66,700,000 182 462
(Premium)334 000
Colstrip 1999B due 2034 000,000 565,288
(Premium)340,000
SUBTOTAL 961 650,000 306 133
Acct. 222 - Reacquired Bonds
Acct. 223 - Advances from Associated Companies-A. Advantage $800k; A. Energy $600k 1,400,000
Long Term Debt to Affiliated Trusts-AVA Capital Trust III 856,000 518 278
Long Term Debt to Affiliated Trusts-Avista Capital I 547 000 633,783
Acct. 224 - Other Long-term Debt
Series K Preferred Stock 000,000 089,391
Notes Payable - Banks (local) $350,000,000 578,000
Commercial Paper
Unsecured Senior Notes 400,000,000 128,000
(Discount)716 000
Medium Term Notes $1 000,000,000 683,000,000 071 295
(Premium)70,000
Long Term Curent
Notes Payable to Various Parties
TOTAL 194,453,000 40,970,880
FERC FORM NO.2 (ED. 12-96)Page 256
Name of Respondent This (!Jort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
LONG-TERM DEBT (Account 221 222 223 and 224) (Continued)
10. Identify separate undisposed amounts applicable to issues which were redeemed in prior years.
11. Explain any debits and credits other than debited to Account 428, Amortization and Expense, or credited to Account 429, Premium
on Debt - Credit.
12. In a footnote, give explanatory (details) for Accounts 223 and 224 of net changes during the year. With respect to long-termadvances, 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. If 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. If 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. If interest expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest
expense in column (i). Explain in a footnote any difference between the total of column (i) and the total of Account 427, interest on
Long-Term Debt and Account 430, Interest on Debt to Associated Companies.
16. Give particulars (details) concerning any long-term debt authorized by a regulatory commission but not yet issued.
AMORTIZATION PERIOD U4tSlandm LineNominal Date Date of (Total amount outstan ing without Interest for Year No.of Issue Maturity Date From Date To reduction for amounts held by Amount
(d)(e)(f)
(g)
reSP?~dent)
(i)
522,350 000 25,034,806
12/18/1984 12/01/2014 12/18/1984 12/01/2023 100,000 246,000
9/01/1999 10/01/2032 9/01/1999 10/01/2032 700,000 335,000
9/01/1999 3/01/2034 9/01/1999 3/01/2034 000 000 871 250
610,150,000 29,487,056
1,400,000
4/5/2004 4/1/2034 4/30/2004 3/31/2034 856,000 565,447
06/03/1997 06/01/2037 06/30/1997 5/31/2037 51,547,000 156,745
9/15/1992 9/15/2007 9/15/1992 9/15/2007 29,750,000 158,844
12/17/2004 12/16/2009 12/13/2004 12/16/2009 000,000 100,138
4/03/2001 6/01/2008 4/03/2001 6/01/2008 280,827,068 29,218,173
30,000 000 10,511 208
133 530,068 79,197,611
FERC FORM NO.2 (ED. 12-96)Page 257
Name of Respondent This (!Jort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
RECONCILIATION OF REP( RTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal income tax accruals and show
computation of such tax accruals. Include in the reconciliation, as far as practicable, the same detail as furnished on Schedule M-1 of the tax return for
the year. Submit a reconciliation even though there is no taxable income for the year. Indicate clearly the nature of each reconciling amount.2. If the utility is a member of a group which files a consolidated Federal tax return, reconcile reported net income with taxable net income as if a
separate return were to be field, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State names of groupmember, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members.
3. A substitute page, designed to meet a particular need of a company, may be used as Long as the data is consistent and meets the requirements of
the above instructions. For electronic reporting purposes complete Line 27 and provide the substitute Page in the context of a footnote.
Line Particulars (uetalls)AmountNo.(a)(b)
Net Income for the Year (Page 117)
Taxable Income Not Reported on Books
775,591
Deductions Recorded on Books Not Deducted for Return
73,032 236
Federal Income Tax 443,955
Deferred Income Tax 11,686,245
Investment Tax Credit -49,308
Income Recorded on Books Not Included in Return
26,298,516
Equity in Sub Earnings (income) / Loss 381,428
Deductions on Return Not Charged Against Book Income
91,161 094
Federal Tax Net Income 63,798,573
Show Computation of Tax:
63,798,573 x .35 = 22 329 501 329,501
Settlement of prior year tax returns and adjustment of tax reserves
affecting deferred taxes 13,522 764
Settlement of prior year tax returns and adjustment of tax reserves
affecting current taxes 362 782
Tax 5,443,955
FERC FORM NO.2 (ED. 12-96)Page 261
This Page Intentionally Left Blank
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) n A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during
the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
L..me Kind of Tax BALANCE AT BEGINNING OF YEAR C1axes
~~~
Adjust-argeNo.(See instruction 5). axes Accru~9 prepal~ Taxes
~~g ~~g
ments(Account 236)(Include In Account 165)(a)(b)(c)(d)(e)(f)
1 FEDERAL:
2 Income Tax (1989-1996)587,439 587 439
3 Income Tax (1998)912 37,912
Income Tax (1999)19,890 973,468 953,578
5 Income Tax (2000)120 811 120,811
6 Income Tax (2001)53,215,684 290,816 506,500
7 Income Tax (2002)49,041 157 253,144 -47 788 014
8 Income Tax (2003)664,448 051 662 000 000 21,716,110
9 Income Tax (2004)20,701 721 079,974 082,044
Unemployment Ins 2003
FICA (2003)601 601
FICA (2004)813,066 813,066
Retained Earnings-ESOP 147 005 147,005
Retained Earnings-ESOP -419,065 419,065
Retained Eamings-ESOP 141,026 141 026
Retained 139 205 139 205
Retained 221 742 221,742
Retained 395,319 068,043
Total Federal 430,847 16,523,245 13,919,572 096,486
STATE OF WASHINGTON:
Property Tax (2000 & Prior)466,176 96,474 562,650
Property Tax (2001)614 305 259 362,872
Property Tax (2002)143 282 425
Property Tax (2003)948,000 935 655 008,694
Property Tax (2004)10,319,313 313
Excise Tax (2001)329,416 329,416
Excise Tax (2002)645 877 400,680 097 172
Excise Tax (2003)171 529 424 485 693,186 097 172
Excise Tax (2004)141 427 968,502
Gas Surcharge 697 114 29,043
Motor Vehicle (2004)807 807
Total Washington 12,496 830 26,866,252 26,703,545 201,203
STATE OF IDAHO:
Income Tax (1997-2000)981,138
Income Tax (2001)085,967
Income Tax (2002)749,501 593,571
Income Tax (2003)277 503 269,842
Income Tax (2004)752,406 318,000 515,383
TOTAL 241 055 84,514 505 76,881 762 560,368
FERC FORM NO.2 (ED. 12-96)Page 262
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/Q4(2) n A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. If any tax (exclude Federal and State income taxes)- covers more then one year, show the required information separately for each tax year,
identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a foot- note. Designate debit adjustments
by parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending
transmittal of such taxes to the taxing authority.
8. Report in columns (i) through (I) how the taxes were distributed. Report in column (I) only the amounts charged to Accounts 408.1 and 409.pertaining to electric operations. Report in column (I) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments and
amounts charged to Accounts 408.2 and 409.2. Also shown in column (I) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAR DISTRIBUTION OF TAXES CHARGED Line(Taxes accrued Prepaid Taxes Electric Extraordinary Items Adjustments to Ket.Other No.Acco~nt 236)(Inc!. in Account 165)(Account 408., 409.(Account 409.Earnings (Account 439)(h)(i)
(j)
(k)(I)
290,816
253 144
223,675 827 987
460 297 10,113,885 10,587 836
601
813,066
1,463,362 395 319
923,659 890,210 633,035
723 250
364,409 59,151
127 845
651 672 210 263,445
319,000 047 310 272 002
349,255 19,839
50,614 400,680
69,869 494 355
172,926 747 417 394 010
13,373 49,114
807
458,336 840,514 025,738
981 138
085,967
343,072
547,345
80,977 292 643 459,763
313,430 029,969 29,528,594
FERC FORM NO.2 (ED. 12-96)Page 263
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during
the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
...me Kind of Tax BALANCE AT BEGINNING OF YEAR c1~xes d
~~~
Adjust-argeNo.(See instruction 5)1 axes Accru~~~repatd Taxes
~~?g
~ring ments(Account 236)(Include In Account 165)ear(a)(b)(c)(d)(e)(f)
Property Tax (2000 & Prior)251 556 129,180 122 377
Property Tax (2001)106,786 106,739
Property Tax (2002)067 848 781
Property Tax (2003)703,492 701 088
Property Tax (2004)397 952 707 555
Excise Tax (2000)056 057
Excise Tax (2001)54,473 36,092 381
Excise Tax (2002)751 751
Excise Tax (2003)863 875 140,428 131,441
Excise Tax (2004)655 27,401 11,009
Motor Vehicle Ins. (2004)744 744
Irrigation Credits (2002)730 311
Irrigation Credits (2003)160
KWH Tax (2003)66,004 104 -44 900
KWH Tax (2004)280,457 302 477 900
Franchise Tax (2002)82,585 82,585
Franchise Tax (2003)730,394 691,460 692,408
Franchise Tax (2004) 072,235 125 248 549,245
Totalldaho 013,757 600,716 168 182 149
STATE OF MONTANA:
Income Tax (1996-2000)615,757
Income Tax (2001)186,912
Income Tax (2002)988
Income Tax (2003)316
Income Tax (2004)410,403 239,000
Property Tax (1999)086 086
Property Tax (2000)-46,114 35,270
Property Tax (2001)454 165,534
Property Tax (2002)514 -41 ,356
Property Tax (2003)064 468 528 064,424
Property Tax (2004)858 000 3,432 987
Unemployment Ins (2004)
KWH Tax (2003)235 173 235 204
KWH Tax (2004)011,003 829,590
Motor Vehicle (2004)869 869
Consumer Council Tax 1,452 400 954
Public Commission Tax
Total Montana 757 100 294 243 812 055 994
TOTAL 241,055 84,514 505 76,881,762 560,368
FERC FORM NO.2 (ED. 12-96)Page 262.
Name of Respondent This (!Jort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. If any tax (exclude Federal and State income taxes)-covers more then one year, show the required information separately for each tax year
identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a foot- note. Designate debit adjustments
by parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending
transmittal of such taxes to the taxing authority.
8. Report in columns (i) through (I) how the taxes were distributed. Report in column (I) only the amounts charged to Accounts 408.1 and 409.pertaining to electric operations. Report in column (I) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments andamounts charged to Accounts 408.2 and 409.2. Also shown in column (I) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAR DISTRIBUTION OF TAXES CHARGED Line
(Taxes accrued Prepaid Taxes Electric Extraordinary Items AaJustments to Ket.Other No.Acco~nt 236)(Inc!. in Account 165)(Account 408., 409.(Account 409.Earnings (Account 439)(h)(i)(k)(I)
062 111,118
-435 106,350
143 706
2,404
690,396 591,451 806,501
057
33,676 416
751
334 210
737 815 840
744
041
160
22,881 280,457
268,657
397 741 972 155 100,080
527,438 193,301 407,416
615,757
186,912
69,988
316
171,403 390 603 19,800
384
166,988
35,843
572 528
425,014 864 817 817
181 383 011 003
869
994 400
335,283 276,391 17 ,852
313,430 55,029,969.29,528,594
FERC FORM NO.2, (ED. 12-96)Page 263.
Name of Respondent This (!)ort Is:Date of Report Year/Periodof Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during
the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
L..lne Kind of Tax BALANCE AT BEGINNING OF YEAR
c1axes d
~~~
Adjust-argeNo.(See instruction 5)""(axes Accru~~~repai.d Taxes
~~g
~ring ments(Account 236)(Include In Account 165)ear(a)(b)(c)(d)(e)(f)
STATE OF OREGON:
Income Tax (1999 & Older)214 635 578
Income Tax (2000)158,916
Income Tax (2001)854,485 740
Income Tax (2002)216,117 131,680
Income Tax (2003)20,153 137 989 72,851
Income Tax (2004)171 001 85,000 59,006
Property Tax (1999-2000)55,143 55,144
Property Tax (2001)20,499 20,499
Proprty Tax (2002)60,055 60,055
Property Tax (2003)254 350 428,762 15,588
Property Tax (2004)697 517 277,044
Motor Vehicle (2004)
Busn Energy Tax Credit -414 235 16,786
Busn Energy Tax Credit 34,244
Busn Energy Tax Credit 55,790
Busn Energy Tax Credit 63,885 851
Busn Energy Tax Credit -44 059
Franchise Tax (2002)115 964 115,964
Franchise Tax (2003)214 906 597 121 382 216
Franchise Tax (2004)329,162 028,445 507,402
Total Oregon 270,471 583,124 717,363 85,014
STATE OF CALIFORNIA:
Income Tax (1996-2000)158,423
Income Tax (2001)142,429
Income Tax 2002 26,863
Income Tax 2003 058
Income Tax 2004 34,200 59,983 15,158
Property Tax (1999)128,479 128,479
Property Tax (2000-2001)1,452 906 358
Property Tax (2002)350 354
Property Tax (2003)265 57,270
Property Tax (2004)60,766 112,064
Excise Tax (1999-2000)163
Excise Tax (2001)
Excise Tax (2004)343
Franchise Tax (2002)557 747 557,747
Franchise Tax (2003)847 336 922 557,747
TOTAL 241,055 84,514 505 76,881 762 560 368
FERC FORM NO.2 (ED. 12-96)Page 262.
Name of Respondent This f!Jort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. If any tax (exclude Federal and State income taxes)- covers more then one year, show the required information separately for each tax yearidentifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a foot- note. Designate debit adjustments
by parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending
transmittal of such taxes to the taxing authority.
8. Report in columns (i) through (I) how the taxes were distributed. Report in column (I) only the amounts charged to Accounts 408.1 and 409.pertaining to electric operations. Report in column (I) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments andamounts charged to Accounts 408.2 and 409.2. Also shown in column (I) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAR DISTRIBUTION OF TAXES CHARGED Line(Taxes accrued Prepaid Taxes Electric Extraordinary Items AdjUstments to Ke!.Other No.Acco~nt 236)(Inc!. in Account 165)(Account 408.1, 409.(Account 409.Earnings (Account 439)(h)(i)(k)(I)
215,213
158,916
853 745 740
347,797
291
995 21,740 149 261
190 000 835,496 593,266
579 527 60,321 637 195
-431,020
244
790
966
-44 059
793,315 329,162
-489 724 917 557 709 625
158,423
142,429
26,863
17,058
-40,941 200
906
354
57,270
51,297 60,766
163
343 343
159,977
313,430 55,029,969 29,528,594
FERC FORM NO.2 (ED. 12-96)Page 263.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/Q4(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
1. Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during
the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the
actual, or estimated amounts of such taxes are know, show the amounts in a footnote and designate whether estimated or actual amounts.
2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.
Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued,
(b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accounts.
4. list the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
...
Kind of Tax BALANCE AT BEGINNING OF YEAR ~~xes
~~~
Adjust-C argedNo.(See instruction 5)1: axes Accru~~~repatC1 1 axes
~~g ~~g
ments(Account 236)(Include In Account 165)(a)(b)(c)(d)(e)(f)
1 Franchise Tax (2004)406,036 720
California PUC Tax 137
California Use Tax 309 241
Total California 596 751 549 664 509 930 138 279
STATE OF ARIZONA:
7 Income Tax (2001)127 700 650
Total Arizona 127 700 650
COUNTY & MUNICIPAL
Occupation 192,123 17,091,937 16,051 010 216 527
Forrest Fire Protection
Greenacres Irrigation
City of Spokane PBIA 858 612
W A Dept of Natural
Spokane Utility Tax 205 767
Columbia Irrigation 136
Misc.104,408 736
Total County 087 062 17,097 961 16,051 765 216 527
TOTAL 241,055 84,514,505 881,762 560 368
FERC FORM NO.2 (ED. 12-96)Page 262.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)
5. If any tax (exclude Federal and State income taxes)- covers more then one year, show the required information separately for each tax year,
identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a foot- note. Designate debit adjustmentsby parentheses.
7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending
transmittal of such taxes to the taxing authority.
8. Report in columns (i) through (I) how the taxes were distributed. Report in column (I) only the amounts charged to Accounts 408.1 and 409.pertaining to electric operations. Report in column (I) the amounts charged to Accounts 408.1 and 109.1 pertaining to other utility departments andamounts charged to Accounts 408.2 and 409.2. Also shown in column (I) the taxes charged to utility plant or other balance sheet accounts.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
BALANCE AT END OF YEAR DISTRIBUTION OF TAXES CHARGED Line(Taxes accrued Prepaid Taxes Electric Extraordinary Items Adjustments to Ke!.Other No.Acco~nt 236)(Inc!. in Account 165)(Account 408., 409.(Account 409.Earnings (Account 439)(h)(i)(k)(I)
405,316 406 036
137
068 309
498 205 309 548,355
179 700
179 700
016,522 891 757 200 179
470
972 767
136
105,144 18,930 666
916,730 910,687 187 273
11,313,430 55,029,969 29,528,594
FERC FORM NO.2 (ED. 12-96)Page 263.
Name of Respondent This (!Jort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
ACCUMULA ED DEFERRED INVESTMENT TAX REDITS (Account 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utility and
non utility operations. Explain by footnote any correction adjustments to the account balance shown in column (g).lnclude in column (i)
the average period over which the tax credits are amortized.
ILine Account Balance at Beginning Deferred for Year AllocatiOns to
AdjustmentsNo.SUbd
lx~sions
of Year Current Year's Income(c) (d) (e) (f)
1 Electric Utility
23%
34%
47%
510%
8 TOTAL
9 Other (List separately
and show 3%,4%,7%,
10% and TOTAL)
Gas Propertry (10%)620,268 1411.30a
TOTAL PROPERTY 620 268 49,30S
FERC FORM NO.2 (ED. 12-89)Page 266
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) 0 A Resubmission 04/25/2005
ACCUMULATED 0~FERRED INVESTMENT TAX CRED TS (Account 255) (continued)
Balance at End Avera~e Period ADJUSTMENT EXPLANATION Lineof Year of AI ocation
No.to Income
570 960
570,960
FERC FORM NO.2 (ED. 12-89)Page 267
Name of Respondent This Report Is:Date of Report Year of Report
(1 ) (2g An on gin (Mo, Da, Yr)
A vista Corp.(2)0 A Resubmission April 25, 2005 Dec. 31, 2004
MISCELLANEOUS CURRENT AND ACCRUED LIABll..ITIES (Account 242)
1. Describe and report the amount of other current and 2. Minor items (less than $100,000) may be groupedaccrued liabilities at the end of year.under approprate title.
Balance atLineItemEnd of YearNo.
(a)(b)
Forest Use Permits 242.182 081
R. Hanson Settlement 242.550
Hamilton St. Bridge (Gas Plant) Accrual 242.756,591
Audit Expense Accrual 242.64,650
FERC Administrative Fee Accrual 242.30,242.582 000
Non-monetary Power Exchange 242.75,450
Payroll Equalization 242.10,773,355
Demand Side Mgmt Tariff Rider 242.72,73,(1,566,560)
ESOP 401-K Plan 242.297
Low Income Energy Assistance 242.76 & 242.503,700
California Commission Fee 242.900
OR Gas Limited Income (LIRAP) 242.597
Workers Compensation Reg Liab 242.360,885
TOTAL 15,927,496
FERC FORM NO.2 (ED. 12-86)Page 268
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) n A Resubmission 04/25/2005
OTHER DEFFERED CREDITS (Account 253)
1. Report below the particulars (details) called for concerning ~ther deferred credits.
2. For any deferred credit being amortized, show the period of amortization.
3. Minor items (5% of the Balance End of Year for Account 253 or amounts less than $10,000, whichever is greater) may be grouped by classes.Line Description and Other Balance at DEBITS Balance atNo. Deferred Credits Beginning of Year Contra Amount Credits End of Year
Account(c)
Year/Period of Report
End of 2004/04
(a)
Unearned Interest - Customer
wiring & conversions 253.
CIT Oper Lease 253.09, 9/2006
10 BPA C&RD Receipts 253.
12 Trust Fund - Centralia 253.
14 Rathdrum Refund 253.
15 Amort =25 years, through 1/2020
17 Supplemental Executive
18 Retirement Plan 253.
24 ID Clark Fork Relicensing 253.
26 Deferred Compo 253.91,
28 FAS5 Mark to Market 253.
30 Amort Unbilled Revenue Add-ons
31 253.
(b)(f)(d)(e)
352 419 352 664 664
Deferred Revenue Prepayment -
Pacific Walla Walla/Enterprise
Amort = 19 yrs 253.
546 456 372 42,174
108 011 931 39,277 734
65,880 various 427,950850 460,980
893,089 287 621 896,423
543,976 822 510,154
13,201 395 903,761 145 634 15,443,268
Gain on Sale and leaseback
of Building (Amortization period
is 25 years) 253.85 & 253.
091 648 261,456 830,192
-417 543 516,424 513,261 -420,706
206,789 366 951 286,412 126,250
261 406 688 590 427 184
918 048 079,331 161 283
47 TOTAL 008 549 39,775,190 38,888 057 33,121,416
FERC FORM NO.2-. (ED. 12-94)Page 269
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
ACCUMULATED DEFFERED INCOME TAXES - OTHER PROPERTY (Account 282)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes rating to property not
subject to accelerated amortization
2. For other (Specify),include deferrals relating to other income and deductions.
Year/Period of Report
End of 2004/04
Line
No.
CHANGES DURING YEARAccountBalance at
Beginning of Year
(a)(b)
Amounts Debited
to Account 410.
(c)
Amounts Credited
to Account 411.
(d)
1 Account 282
2 Electric
3 Gas
4 General Common
198 857 057
903,080
865,985
262 626,122
395,174
624,230
103,878
874 409
602,5175 TOTAL (Enter Total of lines 2 thru 4)
6 Non-operating
9 TOTAL Account 282 (Enter Total of lines 5 thru
10 Classification of TOTAL
11 Federal Income Tax
265 021,296 602 517
12 State Income Tax
13 Local Income Tax
257 655,753
365,543
720,325
882,192
NOTES
:ERC FORM NO.2 (ED. 12-96)Page 274
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~ An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282) (Continued)
3. Use footnotes as required.
Year/Period of Report
End of 2004/04
CHANGES DURING YEAR
Amounts Debited Amounts Credited
to Account 410.to Account 411.
ADJUSTMENTS
(h)
Credits
Account
Debited
(i)
Amount
Balance at
End of Year
Line
No.
Debits
(e)(f)
Account
Credited
(g)
Amount
(k)
217,481,
55,006
16,740,
289,228,
315,
876,
884
293,535,
NOTES (Continued)
, FERC FORM NO.2 (ED. 12-96)Page 275
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~ An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
ACCUMULATED DEFFERED INCOME TAXES - OTHER (Account 283)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts
recorded in Account 283.
2. For other (Specify),include deferrals relating to other income and deductions.
Year/Period of Report
End of 2004/04
(a)
Balance at
Beginning of Year
(b)
Line
No.
Account
1 Account 283
2 Electric
Electric 117,437,849 55,256,109
9 TOTAL Electric (Total of lines 3 thru 8)
10 Gas
11 Gas 490,222 484,383
17 TOTAL Gas (Total of lines 11 thru 16)
18 Other
490,222
127 365,050
248,293,121
2,484,383
49,003,485
768,24119 TOTAL (Acct 283)(Enter Total of lines 9, 17 and 18)
20 Classification of TOTAL
21 Federal Income Tax
22 State Income Tax
23 Local Income Tax
NOTES
FERC FORM NO.2 (ED. 12-96)Page 276
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283) (Continued)
3. Provide in the space below explanations for Page 276 and 277. Include amounts relating to insignificant items listed under Other.
4. Use footnotes as required.
Year/Period of Report
End of 2004/04
CHANGES DURING YEAR
Amounts Debited Amounts Credited
to Account 410.to Account 411.
ADJ USTMENTS
Debits Balance at
End of Year
(k)
425 292 182.899,835 707 197
2,425,292 899,835 707 197
499 016,104
499
2,466,791 244,746
10,144 581
016,104
164,656,998
234,380 299
182.31,
NOTES (Continued)
FERC FORM NO.2 (ED. 12-96)Page 277
Line
No.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2004/04(2) DA Resubmission 04/25/2005
OTHER REGULATORY LIABILITIES (Account 254)
1. Report below the particulars (details) called for conc~rning other regulatory liabilities, including rate order docket number, if
applicable.
2. Minor items (5% of the Balance in Account 254 at end of period, or amounts less than $50,000 which ever is less),may be grouped
by classes.
3. For Regulatory Liabilities being amortized, show period of amortization.
Balance at Begining DEBITS Balance at End
Line Description and Purpose of of Current of Current
No.Other Regulatory Liabilities OuarterlYear Account Amount Credits QuarterlY earCredited
(a)(b)(c)(d)(e)(f)
Centralia Sale 254.11, 028 & 038 674.973 407.163,222 237,252 749,003
FAS109-Acctg for Income Taxes 254.334,020 190.26,556 307,464
Nez Perce - Regulatory Liability 254.880,436 186.80,557.22,008 858,428
BPA Residential Exchange 254.45, 028 407.566,823 808.024 241,201
BPA Residential Exchange 254.45, 038 16,333 407.274,436 977,788 719,685
BPA Residential Exchange 254.45, 098 679,445 182.679,445
BPA Residential Exchange 254.46, 028 431.10 554 554
Mark to Mid FAS133 - Reg Liab 254.442,499 176.74,245.325,341,924 348,720,526 26,821,101
TOTAL 13,027 706 340,074,414 361,747,144 700,436
FERC FORM NO.(REV 02-04)Page 278
This Page Intentionally Left Blank
Name of Respondent This R~ort Is:
(1) l29 An Original
Date of Report
(Mo, Da, Yr)
A vista Corporation (2) D A Resubmission April 25, 2005
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each
prescribed account, and manufactured gas revenues in total.
2. Natural gas means either natural gas unmixed or any
mixture of natural and manufactured gas.
3. Report number of customers, columns (f) and (g), on
the basis of meter, in addition to the number of flat rate ac-
counts; except that where separate meter readings are
added for billing purposes, one customer should be counted
Year of Report
Dec. 31, 2004
for each group of meters added. The average number of
customers means the average of twelve figures at the close
of each month.
4. Report quantities of natural gas sold in Mcf (14.73 psia
at 60 degrees F). If billings are on a therm basis, give the Btu con-
tents of the gas sold and the sales converted to Mct.
5. If increases or decreases from previous year (col-
umns (c), (e) and (g), are not derived from previously
Line
No.
Title of Account
OPERATING REVENUES
Amount for
Amount for Year Previous Year
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial and Industrial Sales
Small or Comm. See Instr. 6
Lar e or Ind. See Instr. 6
(482 Other Sales to Public Authorities
484 Interde artmental Sales
TOTAL Sales to Ultimate Consumers
483 Sales for Resale10 TOTAL Nat. Gas Service Revenues11 Revenues from Manufactured Gas12 TOTAL Gas Service Revenues13 OTHER OPERATING REVENUES14 485 Intracom an Transfers15 487 Forfeited Discounts16 488 Misc. Service Revenues17 489 Rev. from Trans. of Gas of Others
18 490 Sales of Prod. Ext. from Nat. Gas19 491 Rev.from Nat. Gas Proc. b Others20 492 Incidental Gasoline and Oil Sales21 493 Rent from Gas Pro ert22 494 Interde artmental Rents23 495 Other Gas Revenues24 TOTAL Other 0 eratin Revenues25 TOTAL Gas 0 eratin Revenues26 Less 496 Provision for Rate Refunds27 TOTAL Gas Operating Revenues Net of
Provision for Refunds
28 Dis. Type Sales by States (Incl. Main Line
Sales to Resid. and Comm. Custrs.
29 Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authorities
30 Sales for Resale
31 Other Sales to Pub. Auth. Local Dist. Onl
32 Interde artmental Sales
33 TOTAL Same as Line 10, Columns b and d
362 706
309,009,894
152 110
309,162 004
280,063
187 511
15,060
848,688
331 322
320,493,326
320,493,326
299,224,467
9,422 721
152 110
362 706
309,162 004
FERC FORM NO.2 (ED. 12-86)Page 300
348,901
265,271 339
279,638
265,550,977
223,829
539,920
974 051
11,737 800
277 288,777
Name of Respondent This ~ort Is:
(1) l29 An Original
Date of Report
(Mo, Da, Yr)
Year of Report
Avista Corporation (2) D A Resubmission April 25, 2005 Dec. 31, 2004
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Account 481 , may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mcf per year or approximately 800 Mcf
per day of normal requirements. (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.
7. See page 108, Important Changes During Year,
for important new territory added and important rate increases
or decreases.
Quantity for Year
THERMS OF NATURAL GAS SOLD
Quantity for
Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
479,230
338,301 092 2
305,000
338,606,092
517,438
333,840,139
675,000
334,515,139
300,805
300,805
37
292 722
292 723
NOTES
Quantities of natural gas expressed in therms:
to convert thermsto MCF, divide therms by a
BTU factor of 10.
(1) Includes $4 627 958 unbilled revenues.
(2) Includes(361 ,680) therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
DISTRIBUTION TYPE SALES BY STATES
1. Report in total for each State, sales by classes of serv- line sales to industrial consumers; these should be reported
ice. Report main line sales to residential and commercial on page 306, Field and Main Line Industrial Sales of
consumers in total by States. Do not include field and main Natural Gas.
Total Residential, Commerical and IndustrialOperating Revenues Therms
(Total of (d), (ij and (h)) (Total of (e), (g) and (i))
(b) (c)
145,687 195 164,587,612
58,755,770 67 066,720
83,757 885 84,177,703
20,446,338 21 989,827
Name of Respondent This Report Is: Date of Report
(1)~ An Original (Mo, Da, Yr)
(2) 0 A Resubmission April 25, 2005Avista Corp.
Line
No.
Names of State
(a)
State of Washington
State of Idaho
State of Oregon
State of California
308,647,188 337 821,862Totals
FERC FORM NO.2 (ED 12-88)Page 302
Year of Report
Dec. 31,2004
Residential
Operating Revenues
(d)
91,341 542
273,915
206,457
14,648,203
194,470,117
Name of Respondent This Report Is:Date of Report Year of Report
(1)~ An Original (Mo, Os, Yr)
Avista Corp.(2) D A Resubmission April 25, 2005 Dec. 31 , 2004
DISTRIBUTION TYPE SALES BY STATES (Continued)
2. Provide totals for sales within each State.the components of mixed gas, Le., whether natural and oil
3. Natural gas means either natural gas unmixed, or any refinery gases, natural and coke oven gases, etc., and specify
mixture of natural and manufactured gas. State in a footnote the appproximate percentage of natural gas in the mixture.
Residential (Continued)Commerical Industrial
Therms Operating Revenues Therms Operating Revenues Therms Line
No.
(e)(f)(0)(h)(i)
98,040,965 060,026 62,146,078 285,627 4,400,569
40,813,093 19,895,903 149,097 585,952 104 530
129,971 28,000,286 30,278,920 551,142 768,812
15,712,234 798,135 277 593
201 696,263 104 754 350 122 851 688 9,422 721 13,273,911
FERC FORM NO.2 (ED 12-88)Page 303
Name of Respondent This R
iIDort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubnussion April 25. 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previous Iv reported furores, explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
1. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
. .
B. Natural Gas Production
B I. Natural Gas Production and Gatherin~
Operation
750 Operation Supervision and En~ineerin~
751 Production Maps and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Expenses
755 Field Compressor Station Fuel and Power
756 Field Measurin~ and Regulatin~ Station Expenses
757 Purification Expenses
758 Gas Well Royalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
. .
d ,:..
,..
761 Maintenance Supervision and En~ineerin~
762 Maintenance of Structures and Improvements
763 Maintenance of Producing Gas Wells
764 Maintenance of Field Lines
765 Maintenance of Field Compressor Station EQuipment
766 Maintenance of Field Meas. and Re~. Sta. EQuipment
767 Maintenance of Purification Eauipment
768 Maintenance of Drilling and Cleaning Eauipment
769 Maintenance of Other Eauipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gatherin~ (Total of lines 18 and 29)
B2. Products Extraction
!:'::.. .
Operation
770 Operation Supervision and Engineering
771 Operation Labor
772 Gas Shrinkage
773 Fuel
774 Power
775 Materials
776 Operation Supplies and Expenses
777 Gas Processed by Others
778 Royalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used by the Utility-Credit
783 Rents
TOTAL Operation (Enter Total of Lines 33 thru 46)
FERC FORM NO.2 (ED 12-88)Page 320
Name of Respondent This R
l&jort Is:
Date of Report Year of Report(1) X An Original (Mo. Va. Yr)
A vista Corp.(2)A Resubmission April 25, 2005 December 3 I. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount CulTent Year Previous Year
No.(a)(b)(c)
B2. Products Extraction (Continued)I..
Maintenance
784 Maintenance Supervision and Ene:ineerine:
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refinine: Equipment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storae:e Equipment
789 Maintenance of Compressor Equipment
790 Maintenance of Gas Measuring and Reg. Equipment
791 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C. Exploration and Development
Operation
,..' .
795 Delay Rentals
796 Nonproductive Well Drilling
797 Abandoned Leases
798 Other Exploration
TOTAL Exploration and Development (Enter Total of lines 61 thru 64)
D. Other Gas Supply Expenses
Operation :C/.
' :. .:..
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases, Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Transmission Line Purchases
804 Natural Gas City Gate Purchases 217.925,718 189,992,110
804.1 LiQuefied Natural Gas Purchases
805 Other Gas Purchases (4,070,037)(9.237,733)
(Less) 805.1 Purchased Gas Cost Adjustments
.:.
. c
TOTAL Purchased Gas (Enter Total of lines 67 to 76)213,855,681 180,754,377
806 Exchange Gas
Purchased Gas Expenses
.,:.:.,
c.,.
'... .. :.
807.1 Well Expenses-Purchased Gas
807.2 Operation of Purchased Gas Measurine: Stations
807.3 Maintenance of Purchased Gas Measurine: Stations
807.4 Purchased Gas Calculations Expenses 328,577 318,297
807.5 Other Purchased Gas Expenses
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)328,577 318,297
808.1 Gas Withdrawn from Storae:e-Debit
(Less) 808.2 Gas Delivered to Storae:e-Credit (83,689)(76,888)
809.1 Withdrawals of LiQuefied Natural Gas for Processine:-Debit
(Less) 809.2 Deliveries of Natural Gas for Processine:-Credit
Gas Used in Utility Operations-Credit
....:':.. ...
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
8 I 2 Gas used for Other Utility Operations-Credit
TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)
813 Other Gas Supply Expenses 404,814 319.069
TOTAL Other Gas Supply Exp (Total of lines 77,78,85,86 thru 89,95)214,505,383 181,314,855
TOTAL Production Expenses (Enter Total of lines 3,30,58,65, and 96)214,505,383 181,314,855
FERC FORM NO.2 (ED 12-88)Page 321
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25. 2005 December 3 I. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
2. NATURAL GAS STORAGE. TERMINALING AND V;,:
,.....' '...... .
PROCESSING EXPENSES
A. Underground Storae:e Exoenses
100 Operation
. ,. .,.... ."" ,..
101 814 Ooeration Supervision and Ene:ineerine:15.828 15.153
102 815 Maps and Records
103 816 Wells Expenses
104 817 Lines Expense
105 818 Compressor Station Exoenses
106 819 Compressor Station Fuel and Power
107 820 Measurine: and Ree:ulatine: Station Exoenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses 334.655 228.242
112 825 Storage Well Royalties
113 826 Rents
114 TOTALOoeration (Enter Total of lines 101 thru 113)350,483 243.395
115 Maintenance
'..:. .
116 830 Maintenance Supervision and Ene:ineerine:
117 831 Maintenance of Structures and Improvements
118 832 Maintenance of Reservoirs and Wells
119 833 Maintenance of Lines
120 834 Maintenance of Compressor Station Eauipment
121 835 Maintenance of Measurine: and Ree:ulatine: Station EQuipment
122 836 Maintenance of Purification Eauipment
123 837 Maintenance of Other Equipment 171.691 220.501
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)171,691 220.50 I
125 TOTAL Undere:round Storae:e Expenses (Total of lines 114 and 124)522.174 463.896
126 B. Other Storae:e Expenses
.,.,,'. .. '
. d
127 Operation
. .
128 840 Operation Supervision and Ene:ineering
129 841 Operation Labor and Expenses
130 842 Rents
131 842.1 Fuel
132 842.2 Power
133 842.3 Gas Losses
134 TOTAL Operation (Enter Total of lines 128 thru 133)
135 Maintenance
136 843.1 Maintenance Supervision and Ene:ineerine:
137 843.2 Maintenance of Structures and Improvements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification Eauipment
140 843.5 Maintenance of LiQuefaction Equipment
141 843.6 Maintenance of Vaporizing Equipment
142 843.7 Maintenance of Compressor Eauipment
143 843.8 Maintenance of Measurine: and Ree:ulatine: EQuipment
144 843.9 Maintenance of Other Eauipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Storae:e Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
Name of Respondent This R
iIDort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubnussion April 25, 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
147 C. Liauefied Natural Gas Tenninaling and Processing Expenses
148 Operation
149 844.1 Operation Supervision and Engineering
150 844.2 LNG Processine: Tenninal Labor and Expenses
151 844.3 Liauefaction Processine: Labor and Expenses
152 844.4 Liauefaction Transportation Labor and Expenses
153 844.5 Measuring and Regulating Labor and Expenses
154 844.6 Compressor Station Labor and Expenses
155 844.7 Communication Svstem Expenses
156 844.8 Svstem Control and Load Dispatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demumu~e Chare:es
161 (Less) 845.5 Wharfae:e ReceiPts-Credit
162 845.6 Processing Liauefied or Vaporized Gas by Others
163 846.1 Gas Losses
164 846.2 Other Exoenses
165 TOTAL Operation (Enter Total of lines 149 thru 164)
166 Maintenance
:..
167 847.1 Maintenance Supervision and Engineering
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processing Terminal EQuipment
170 847.4 Maintenance of LNG Transportation EQuipment
171 847.5 Maintenance of Measuring and Regulating Eauipment
172 847.6 Miantenance of Compressor Station EQuipment
173 847.7 Maintenance of Communication EQuipment
174 847.8 Maintenance of Other Eauinment
175 TOTAL Maintenance (Enter Total oflines 167 thru 174)
176 TOTAL Liauefied Nat Gas Terminaling and Processing Exp (Lines 165 & 175)
177 TOTAL Natural Gas storae:e (Enter Total of lines 125, 146, and 176)522,174 463.896
178 3. TRANSMISSION EXPENSES I.:
. .:,.. : ,. :/:'::". .
179 Operation H:;,
. .. "
180 850 Operation Supervision and Engineering
181 851 System Control and Load Dispatching
182 852 Communication Svstem Exnenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for Compressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measuring and Re2Ulatine: Station Expenses
188 858 Transmission and Compression of Gas by Others
189 859 Other Expenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)
FERC FORM NO.2 (ED 12-88)Page 323
Name of Respondent This R
lIDort Is:
Date of Report Year of Report
(1 ) An Original (Mo. Da. Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
3. TRANSMISSION EXPENSES (Continued)
'.."..."...' '
:'r
192 Maintenance I:i"
:. .
I .
. .. ,
193 861 Maintenance Supervision and Engineering
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Equipment
197 865 Maintenance of Measurin~ and Re~. Station Equipment
198 866 Maintenance of Communication Equipment
199 867 Maintenance of Other Equipment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)
201 TOTAL Transmission Expenses (Enter Total of lines 191 and 200)
202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and Engineering 928,100 913,244
205 871 Distribution Load Dispatching 226 3,413
206 872 Compressor Station Labor and Expenses
207 873 Compressor Station Fuel and Power
208 874 Mains and Services Expenses 993,801 945,577
209 875 Measurin~ and Regulatin~ Station Expenses-General 87,741 66,970
210 876 Measurin~ and Regulatin~ Station Expenses-Industrial 973 638
211 877 Measuring and Regulating Station Expenses-City Gate Check Station 112,188 102,072
212 878 Meter and House Regulator Expenses 592,238 1,491,133
213 879 Customer Installations Expenses 951,323 777,084
214 880 Other Expenses 713,864 536,942
215 881 Rents 161 19,500
216 TOTAL Operation (Enter Total of lines 204 thru 215)9,404,163 856,573
217 Maintenance
."':... :..::), '.,:.. ,,:
218 885 Maintenance Supervision and EQ1~ineerine:113,811 57,543
219 886 Maintenance of Structures and Improvements 776 695
220 887 Maintenance of Mains 640,131 028,496
221 888 Maintenance of Compressor Station Equipment
222 889 Maintenance of Meas. and Reg. Sta. I quip.General 395,207 446,691
223 890 Maintenance of Meas. and Reg. Sta. I quip.Industrial 215,084 176,714
224 891 Maintenance of Meas. and Reg. Sta. I quip.City Gate Check Station 52,473 41,310
225 892 Maintenance of Services 320,696 532,764
226 893 Maintenance of Meters and House Regulators 711,130 557,024
227 894 Maintenance of Other Equipment 68,916 19,619
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)520,224 861,856
229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)13,924,387 12,718,429
230 5. CUSTOMER ACCOUNTS EXPENSES
::, .. .
231 Operation
232 901 Supervision 81,506 72,694
233 902 Meter Reading Expenses 076,492 000,754
234 903 Customer Records and Collection Expenses 247,929 821,781
235 904 Uncollectible Accounts 440,131 753,587
236 905 Miscellaneous Customer Accounts Expenses 417,106 429,906
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)10,263,164 078,722
FERC FORM NO.2 (ED 12-88)Page 324
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmisslon April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnotes.
Amount for Amount for
Line Amount Cucrent Year Previous Year
No.fa)(b)(c)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
...
239 Operation I..
240 907 Supervision
241 908 Customer Assistance Exoenses 293,430 718,098
242 909 Infonnational and Instructional Exoenses 168,574 104,533
243 910 Miscellaneous Customer Service and Infonnational Expenses 55, 101 47,014
244 TOTAL Customer Service and Infonnation Exoenses (Lines 240thru 243)517,105 869,645
245 7. SALES EXPENSES
246 Operation
247 911 Supervision 23,836
248 912 Demonstratine: and Selline: Expenses 695,836 654,164
249 913 Advertisine: Exoenses 106,417 190,041
250 9 I 6 Miscellaneous Sales Exoenses 517 52,253
251 TOTAL Sales Exoenses (Enter Total of lines 247 thru 250)811,770 920,294
252 8. ADMINISTRATIVE AND GENERAL EXPENSES ,c; ""
253 Ooeration
:;.:.::, ." ,. ::,. ',. '
254 920 Administrative and General Salaries 143,730 840,466
255 921 Office Supplies and Expenses 333,303 267,359
256 (Less) (922) Administrative Exoenses Transfecred-Cr.597 (5,727)
257 923 Outside Services Emoloved 250,858 986,197
258 924 Property Insurance 290,984 367,023
259 925 Injuries and Damages 1,469,382 968,396
260 926 Emoloyee Pensions and Benefits 666,794 615,880
261 927 Franchise Reauirements
262 928 Regulartorv Commission Exoenses 294 935 365,580
263 (Less) (929) Duplicate Charges-Cr.
264 930.1 General Advertising Expenses
265 930.2 Miscellaneous General Expenses 258,529 936,072
266 931 Rents 743,385 175,701
267 TOTAL Operation (Enter Total of lines 254 thru 266)18,446,303 17,516,947
268 Maintenance
.: ... ..,'. ... .,.:. .. ...
269 935 Maintenance of General Plant 193,844 054,604
270 TOTAL Administrative and General Exo (Total of lines 267 and 269)19,640,147 18,571,55 I
271 TOTAL Gas O. and M. Exo (Lines 97,177,201,229,237.244 251,and 270)265,184,130 226,937,392
NUMBER OF GAS DEPARTMENT EMPLOYEES
1. The data on number of employees should be reported construction employees in a foonote.
for the payroll period ending nearest to October 31, or 3. The number of employees assignable to the gas
any payroll period ending 60 days before or after Octo-department from joint function of combination utilities
ber 31.may be detennined by estimate, on the basis of employee
2. If the respondent's payroll for the reporting period equivalents.Show the estimated number of equivalent
includes any special constrction personnel, include such employees attributed to the gas department from joint
employees on line 3, and show the number of such special functions.
Payroll Period Ended (Date)December 31, 2004
Total Regular Full-Time Emoloyees 332
Total Part-Time and Temporary Employees allocation of General Emoloyees
Total Emoloyees 368
FERC FORM NO.2 (ED 12-88)Page 325
Name of Respondent
A vista Corporation
This ~ort Is:
An Original
A Resubmission
Date of Report
(Mo, Da, Yr)
April 25, 2005
Year of Report
Dec. 31 , 2004
Other Gas Supply Expenses (Account 813)
1 Report other gas supply expenses by descriptive titles that and losses on settlements of imbalances and gas lossesclearly indicate the nature of such expenses. Show not associated with storage separately. Indicate the
maintenance expenses, revaluation of functional classification and purpose of property to which
monthly encroachments recorded in Account 117.4 any expenses relate. List separately items of $250,000
or more.
Line
No.
Description
(a)
Amount
(in Dollars)
(b)
1 Gas Resource Management
Labor
Transportation
Misc. Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Etc.
174,894
804
22,713
Canadian Regulatory Affairs
Labor
Misc. Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Etc.
49,632
24,112
Send Out Modeling
Maintenance Fees
8 FERC Gas Case
Labor
Misc. Other Expenses (Phone Bills, Professional Services, Postage, Etc.
52,624
79,051
10 Departmental Administration
20 TOTAL 404,814
FERC FORM NO.2 (ED 12-96)Page 334
Name of Respondent This report is:
(1) (X)An Original
Avista Corp.
Date of Report
(Mo, Oa, Yr)
(2) ( ) A Resubmiss April 25, 2005
Year of Report
Dec. 31, 2004
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
1. Provide the information requested below on miscellaneous 2. For Other Expenses, show the (a) purpose, (b) recipient and (c) amount of suchgeneral expenses. items. List separately amounts of $250,000 or more however, amounts less than
$250,000 may be grouped if the number of items of so grouped is shown.
Publishing and Distributing Information and Reports to Stockholders; Trustee, Registrar and Transfer
Acent Fees and Expenses, and Other Expenses of Servicing Outstandina Securities of the ResDondent
Other Expenses
47 Other Miscellaneous General Labor (0930.26-28)48 93027
52 TOTAL
Line
No.
Industry Association Dues (0930.25)
Experimental and General Research Expenses
a. Gas Research Institute (GRI)
b. Other
Description
(a)
Directors Fees and Expenses (0930.27)
R. JOHN TAYLOR
DAVID A CLACK
JOHN F KELLY
JESSIE J KNIGHT JR
ERIK J ANDERSON
ROY LEWIS EIGUREN
LURA J POWELL
MICHAEL L NOEL
KRISTIANNE BLAKE
JACK W GUST A VEL
WAllO Rei
336
9,470
764
822
441
366
140
170
11,720
157
Total
Miscellaneous General Expenses (0930.20)
Labor
5 Items Under $5000
Cash Book Journal Transfers
Total
Community Relations (0930.22)
Labor
172 Items Under $5000
Total
Educational - Informational (0930.23)
Labor
4 Items Under $5000
Other Miscellaneous General Expenses (0930.29)
Labor
9 Items Under $5000
Total
FERC FORM NO.2 (ED. 12-96)Page 335
WAllO Exp
760
011
153
499
471
75,386
ORICA Rei
098
656
325
371
658
621
510
508
762
552
ORICA Exp
374
497
245
232
112 37,061 530
117 089
261 746
140,057
24,685
073
33,795
Amount
(b)
256,079
399,764
12,527
14,257
11 ,223
701
11 ,200
11,215
11 ,394
14,381
17,482
709
224 715
37,057
122,394
663
23,991
694
024
33,795
234 288
:1/
Name of Respondent This R
iRJrt Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corporation (2)A Resubmission Apri125, 2005 Dec. 31, 2004
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403, 404.1, 404., 404.404.405)
(Except Amortization of ACQuisition Adiustments)
Report in Section A the. amounts of depreciation between the report years (1971, 1974 and every fifth year
expense depletion and amortization for the accounts in-thereafter).
dicated and classified according to the plant functional Report column (b) all depreciable plant balances to
groups shown.which rates are applied and show a composite total.(If
Report all available infonnation called for in Sec-more desirable report by plant account,subaccount or
tion B for the report year 1971, 1974 and every fifth year functional classifications other than those pre-pnnted in
thereafter.Report only annual changes m the intervals column (a).Indicate at the bottom Section the
Section A. S of Depreciation, Depletion, and Amortization Charges
Amortization and Deple-Amortization of Under-
Line Depreciation tion of Producing Natural ground Storage, Land
No.Functional Classification Expense Gas Land and Land Land Rights and Misc.
(Account 403)Rights (Account 404.Intang (Account 404.
(a)(b)(c)(d)
Intangible plant 958
Prodution plant, manufactured gas 543
Production and gathering plant
natural gas
Products extraction plant
Undergound gas storage plant 429 790
Other storage plant
Base load LNG tenninating and
processing plant
TransITIlssion plant
Distribution plant 382,219
General plant 469,276
Common General plant-Allocated 92,493 :Ii!:!
j~!:! j:!:!~!
m m m m j:!:!:!:!~!~! m:!:: Wi ji! ~i ~i iijj j ii Hi!:i:1 j :ij:!:I~!~!:!:! ji! Hi:! W!:!
j j j
i! i! ~i:!:j ii i! im!:i i!
j:!
Hi~!
j:!
j i!
j::
i!:!~! j :i:m:!~!:!:!):! j j:!:!:1 i!
j j:!:!:!
TOTAL 375 321 958
FERC FORM NO.2 (ED. 12-86)Page 336
Name of Respondent This R
~rrt
Is:Date of Report Year of Report
(1 ) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubnussion April 25, 2005 Dec. 31,2004
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403, 404.1, 404.2, 404.3, 404., 405)
(Except Amortization of Acquistion Adjustments) (Continued)
manner in which column (b) balances are obtained.depreciation charges, show at the bottom of Section B
average balances, state the method of averaging used.any revisions made to estimated gas reserves.
For column (c) report available infonnation for each plant If provisions for deprciation were made during the
functional classification listed in column (a). If composite year in addition to depreciation provided by application
depreciation accounting is used.Report available infor-of reported rates, state at the bottom of Section B the
mati on called for in columns (b) and (c) on this basis.amounts and nature of the provisions and the plant items
Where the unit-of-production method is used to detennine to which related.
Section A.
. y
of Depreciation, Depletion, and Amortization Charges
Amortization of Amortization of
Other Limited-tenn Leasehold Amortization of Total Line
Gas Plant Improvements Other Gas Plant (b to g)Functional Classification No.
(Account 404.(Account 404.(Account 405)
and 404.75)
(e)(/l)(h)(a)
269,641 275 599 Intan~ible plant
543 Prodution plant, manufactured gas
Production and gathering plant
natural gas
Products extraction plant
429 790 Under~ound ~as storage plant
Other stora~e plant
Base load LNG tenninating and
processing plant
TransmIssion plant
382 219 Distribution plant
210 522,486 General plant
327 643 317 390
!:!
~!~i~ij~i .i:i:!:!:i:l:i:Wi:i~i :!:!:!~j~1 ~i:i:i:! ~i.j :i:ij~!~i~!:!~!:i:I:!:!737 526 Common general plant-Allocated
597 284 370 600 349,163 TOTAL
FERC FORM NO.2 (ED. 12-86)Page 337
Name of Respondent This
ptlrt
Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
complete
Avista Corporation (2)A Resubmission April 25, 2005 Dec. 31, 2004
Depreciable Applied
Line Functional Classification:Plant Base Depr. Rate(s)
No.(Thousands)(percent)
((;
(b) (1)(c)
JJnd rgr nd...Qas Stora Ejant: (2)
350 05%
351 064 1.75%
352 731 12%
352.209 20%
352.1 (Leasehold Improvements)254 22%
352.122 2.43%
353 823 1.97%
354 964 61%
355 154 76%
356 404 04%
357 648 74%
Total 396
Production - Manufactured Gas:
2305 80%
2311 1.80%
Total
Distribution Plant:
375.634 24%
376 230 117 33%
378 346 1.90%
379 945 2.46%
380 167 133 78%
381 397 1.97%
385 772 51%
387 5.40%
Total 459 344
524 00%
eral Plant:
390.329 30%
390.00%
391.1 30%
392 516
393 2.43%
394 318 72%
395 908 07%
396 894
397 616 11%
398 15%
Total 734
Total Depreciable Gas Plant 494 064
FERC FORM NO.2 (ED. 12-86)Page 338-
This Page Intentionally Left Blank
Name of Respondent This report is:Date of Report Year of Report
(1) (X)An Origin (Mo, DB, Yr)
Avista Corp.(2) ( ) A Resubn April 25, 2005 Dec. 31 , 2004
Particulars Concerning Certain Income Deduction and Interest Charges Accounts
Report the information specified below, in the order given, for the respective income deduction and interest charges accounts.(a) Miscellaneous Amortization
(Account 425) - Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the period of
amortization. (b) Miscellaneous Income Deductions-Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.
Donations; 426., Life Insurance; 426.3, Penalties; 426., Expenditures for Certain Civic, Political and Related Activities; and 426., Other Deductions, of the
Uniform System of Accounts. Amounts of less the $250,000 may be grouped by classes within the above accounts. (c) Interest on Debt to Associated Companies
(Account 430)-For each associated company that incurred interest on debt during the year, indicate the amount and interest rate respectively for (a) advances on
notes, (b) advances on open account, (c) notes payable, (d) accounts payable and (e) other debt, and total interest. Explain the nature of other debt on which
interest was incurred during the year.
Line Description Amount
No.(a)(b)
Acct. 425.00 - MISCELLANEOUS AMORTIZATIONS
Gas plant acquisition adj. Applicable to purchase of CP National
OreQon & California distribution system. Contra account 115.00.323,416
Total - 425.
Acct. 426.10 - DONATIONS
EI Dorado County (Project Share)15,000
Donation of Microturbine to Oregon Institute of Technology 1 08,856
Spokane Neighborhood Action (Project Share)200,000
Valley Vision 15,000
Items Under $15,000 173,501
Total 426.512 357
Acct. 426.20 - LIFE INSURANCE
Officers Life 126,078
SERP 300,008
Total 426.1 ,426,086
Acct. 426.30 - PENALTIES
All Items Under $10,000 10,038
Total 426.10,038
Acct. 426.40 - EXPENDITURES FOR CERTAIN CIVIC, POLITICAL
AND RELATED ACTIVITIES
Legal Services 389
Items Under $50,000 761,858
Total 426.40 859,247
Acct. 426.50 - OTHER DEDUCTIONS
Other 215
Write-off of utility plant pursuant to IPUC order 2,457 249
Kettle Falls Reserve Amortization (228,480
Executive Deferred Compensation 788,973
Cash Reduction for PG E Monetization 88,125
Accelerated vesting of stock options 117 860
Total 426.224 942
FERC FORM NO.2 (ED. 12-87)Page 340
Name of Respondent This report is:Date of Report Year of Report
(1) (X)An Origin (Mo, Da, Yr)
Avista Corp.(2) ( ) A Resubn April 25, 2005 Dec. 31 , 2004
Particulars Concerning Certain Income Deduction and Interest Charges Accounts
Report the information specified below, in the order given, for the respective income deduction and interest charges accounts.(a) Miscellaneous Amortization
(Account 425) - Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the period of
amortization. (b) Miscellaneous Income Deductions-Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.
Donations; 426., Life Insurance; 426.3, Penalties; 426., Expenditures for Certain Civic, Political and Related Activities; and 426.5, Other Deductions, of the
Uniform System of Accounts. Amounts of less the $250,000 may be grouped by classes within the above accounts. (c) Interest on Debt to Associated Companies
(Account 430)-For each associated company that incurred interest on debt during the year, indicate the amount and interest rate respectively for (a) advances on
notes, (b) advances on open account, (c) notes payable, (d) accounts payable and (e) other debt, and total interest. Explain the nature of other debt on which
interest was incurred during the year.
Line Description Amount
No.(a)(b)
Acct. 430.00 - INTEREST ON DEBT TO ASSOC. COMPANIES
Avista Capital I (long-term debt) (interest rate of 7.875) (redeemed in April 2004)596,650
Avista Capital II (long-term debt) (variable rate ranged from 1.995 to 3.275 percent)214 648
AVA Capital Trust III (interest rate of 6.5 percent)970,806
Total 430.782 104
Acct. 431.00 - OTHER INTEREST EXPENSE
Customer Deposits (47,790
Interest, Purchased Gas Adjustments (109,294)
Interest on BPA residential exchange program 48,168
Capital lease interest 205,523
Interest on DSM Program Liability 217 293
Misc. Interest 20,375
Executive Deferred Compensation 54,971
Total 431.00 389,246
. FERC FORM NO.2 (ED. 12-87)Page 340.
Name of Respondent This (!Jort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2004/Q4(2) n A Resubmission 04/25/2005
REGULATORY COMMISSION EXPEN
1. Report particulars (details) of regulatory commission expenses incurred during the current year (or incurred in previous years, if
being amortized) relating to format cases before a regulatory body, or cases in which such a body was a party.
2. Report in columns (b) and (c), only the current year's expenses that are not deferred and the current year s amortization of amounts
deferred in previous years.
Line Description Assessed by Expenses Total . u~terreC1
No.(Furnish name of regulatory commission or body the Regulatory Expense for In Account
Commission Current Year 18;2.docket or case number and a description of the case)Utility (b) + (c)Beginning 0 Year(a)(b)(c)(d)(e)
FEDERAL ENERGY REGULATORY COMMISSION
Charges include annual fee and license fees
the Spokane River Project, and the Cabinet
Gorge Project and Noxon Rapids Project.267 927 958 295,885
WASHINGTON UTILITIES & TRANSPORTATION
Includes annual fee and Electric Dockets #s:
42179,42095,42084,42072 42074 41876,41795,
41792 41785 41770,41712,41675,41355,41264
41222 41203,41083,41067 41020,40995,40868,
40845,40843,40786,40785,40663,40611,40594,
40587,40583,40472,40416,40379,40338,40329,
40252,40035,31905,30751,30598,31303 615,831 345,596 961,427
Gas - Docket #s:42252,42198,42180,421 03,42070,
41877,41865 41791,41786,41784,41771,41676,
41599,41515,41514 41488,41375,41356,41265,
41,223,41202,41021,41019,40869 40844,40803,
40787,40595,40588,40482,40482,40473,40417,
40380 40156,40036,32148 31361,30829 30599 258,236 273,489 531,725
IDAHO PUBLIC UTILITIES COMMISSION
Includes annual fee & Electric Dockets#s:AVU-
04-04-04-04-04-05,04-06,03-
Advice #s:ADV 04-01-E through 04-06-
General Electric Docket # GNR-04-406,600 378,011 784,611
Gas - Docket #s: AVU-G 04-01, 04-02 & 03-
Advice #s:ADV 04-01-G through 04-05-G
RU L-04-0 1 , AVU-04-01,04-02,04-125,850 177 746 303,596
OREGON PUBLIC UTILITIES COMMISSION
Docket #s: LC 35, UF 4185
Misc Advice #s: 04-03-G, UG-159, UM1162,UM1165
UF4202,UF4207,UF4209,UM1115 202,045 127,977 330,022
CALIFORNIA PUBLIC UTILITIES COMMISSION
Rulemaking:98-026,047 10-001 04-01-006
Resolutions:M-4813, E-3254
Decisions: 01-05-033,01-07-026,01-08-065
02-10-040,02-12-011 04-08-010
Advice #s: UG907G1: C-59-60-61-
62-G, C-63-G, C-64-G, C-65-G, C-66-15,343 114,249 129,592
TOTAL 891 832 1 ,445,026 336,858
FERC FORM NO.2 (ED. 12-96)Page 350
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2004/Q4
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) A Resubmission 04/25/2005
REGULATORY COMMISSION EXPENSES (Continued)
3. Show in column (k) any expenses incurred in prior years which are being amortized. List in column (a) the period of amortization.4. List in column (f), (g), and (h) expenses incurred during year which were charged currently to income, plant, or other accounts.
5. Minor items (less than $25 000) may be grouped.
EXPENSES INCURRED DURING YEAR
CURRENTLY CHARGED TOepartment f'Jo(f)
(g)
(h)
AMORTIZED DURING YEAR
Deferred to
Account 182.
(i)
Contra
Account Amount
(k)
Deferred inAccount 182.
End of Year
(I)
Line
No.
Electric 0928 961,427
Electric 0928 295,885
Gas 1928 531,725
Electric 0928 784 611
Gas 1928 303,596
Gas 2928 330 022
Gas 2928 129,592
-----.---- ----------.
336 858
-----------
FERC FORM NO.2 (ED. 12-96)Page 351
Name of Respondent This R
lKJrt Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmlssion April 25, 2005 Dec. 31, 2004
DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages appropriate lines and columns provided. In determining this
for the year.Segregate amounts originally charged to clear-segregation of salaries and wages originally charged to clear-
ing accounts to Utility Departments, Construction, Plant ing accounts, a method of approximation giving substantially
Removals, and Other Accounts, and enter such amounts in the correct results may be used.
Allocation of
Line Direct Payroll Payroll Charged
No.Classification Distribution for Clearing Total
Accounts
(a)(b)(c)(d)
Electric
, .
Operation
.....
i lIiln", 'itProduction030,689
" '
TransmissIOn 950,369
Distribution 073,062
Customer Accounts 225,363
Customer Service and Informational 96,243
Sales 677,811
Administrative and General 10,727,392
TOTAL Operation (Enter Total of lines 3 tbeu 9)780 929
Maintenance ii;:i:;
Production 185,117
Transmission 1 ,033,429
il,
: ,
Distribution 176,837 II,li!;!Administrative and General 836,990
TOTAL Maintenance (Enter Total of lines 12 tbeu 15)232 373
Total Operation and Maintenance
: ,
Production (Enter Total of lines 3 and 12)215,806
Transmission (Enter Total of lines 4 and 13)983,798 \i'
Distribution (Enter Total of lines 5 and 14)10,249 899
Customer Accounts (Transcribe from line 6)225,363
Customer Service and Information (Transcribe from line 7)96,243
Sales (Transcribe from line 8)677,811
illW
" ".,
Administrative and General (Enter Total of lines 9 and 15)564,382
" ,
TOTAL Oper. and Maint. (Total of lines 18 thru 24)43,013,302 523,089 536,391
Gas
ill!j ill Iii. ;i,'iilll ',Operation i' " i:;,
Production - Manufactured Gas
, "
ii'
Production - Natural Gas (Including Expl. and Dev.
. ill! "
"",., ,
Other Gas Supply 416,719
" ,'
Storage, LNG Terminaling and Processing
TransmIssion
i,ii, ,','Distribution 705,855
' "
Customer Accounts 4,434,307
Customer Service and Informational 166,729
Sales 443,391
,';'"
Administrative and General 4,470,031 T' ii"
TOT AL Operation (Enter Total of lines 28 tbeu 37)15,637 032
ill;
; "'
::i,Maintenance
" 'j;, ,. '
Production - Manufactured Gas
Production - Natural Gas
Other Gas Supply
it:
,j'
Storage, LNG Terminaling and Processing
TransmIssion
Distribution 243,553 Ill! Administrative and General 309,646 i,.. ' ..TOTAL Maintenance (Enter Total of lines 40 tbeu 46)553,199
"" " ,
FERC FORM NO.(ED 12-88)Page 354
Name of Respondent This R~rt Is:(1) An Original
Date of Report
(Mo, Da, Yr)
Year of Report
A vista Corp.Dec. 31, 2004(2)A Resubmission April 25, 2005
Line
No.
DISTRIBUTION OF SALARIES AND WAGES (Continued)
A llocation of
Payroll Charged
for Clearing
Accounts
(e)
Total
Direct Payroll
DistributionClassification
(a)
Gas (Continued)48 Total 0 eration and Maintenance49 Production - Manufactured Gas (Enter Total of lines 28 and 40)50 Production - Natural Gas (Including Expl. and Dev.) (Total
of lines 29 and 41)51 Other Gas Su I (Enter Total of lines 30 and 42)52 Storage, LNG, Terminaling and Processing (Total of lines
31 and 43)53 Transmission (Enter Total of lines 32 and 44)54 Distribution (Enter Total of lines 33 and 45)55 Customer Accounts (Transcribe from line 34)56 Customer Service and Informational (Transcribe from line 35)57 Sales (Transcribe from line 36)58 Administrative and General (Enter Total of lines 37 and 46)59 TOTAL 0 eration and Maint. (Total of lines 49 thru 58)60 Other Utilit De artments
61 0 eration and Maintenance62 TOTAL All Utilit De t. (Total of lines 25,59, and 61)63 Utilit Plant64 Construction (B Utilit De artments)65 Electric Plant66 Gas Plant67 Other68 TOTAL Construction (Enter Total of lines 65 thru 67)
69 Plant Removal (B Utilit De artment)70 Electric Plant71 Gas Plant72 Other73 TOTAL Plant Removal (Enter Total of lines 70 thru 72)74 Other Accounts (Specify):75 Stores Expense (163)76 Unamortized debt expense (181)77 Preliminary Survey and Investigation (183)78 Small Tool Expense (184)79 Miscellaneous Defen-ed Debits (186)80 Capital Stock Expense (214)
81 Merchandising Expenses (416)
82 Non-operating Expenses (417)
83 Expenditures of Certain Civic, Political and Related84 Activities (426)
85 Purchase and Stores Expense (980)86 Transportation Expense (981)87 Cafeteria Expense - Labor (984)88 Spokane Central Operating Facility Expense (985)89 Clark Fork Relicensing (987)
96 TOTAL Other Accounts
97 TOTAL SALARIES AND WAGES
949,408
4,434 307
166 729
443,391
779,677
18,190,231
103,393
936,445
790,627 (15,500)775,127
243 243
27,597 27,597
757 134 52,891
24,886,682 19,364 24,906,046
725,454 12,589 738,043
208,513 281 209,794
614,699 (1,581 195)33,504
530,429 ( I ,506,588)23,841
764 901 (759 770)131
385,697 (385,696)
155 729
121 063,693
154 637)26,001,092
121,063,693
FERC FORM NO.2 (ED 12-88)Page 355
Name of Respondent This report is:
( X) An Original
Date of Report Year Ending
(Mo, Oa, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 , 2004
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
1. Report the information specified below for all charges made during the year any kind, or individual (other than for services as an employee or for
included in any account (including plant accounts) for outside consultative and payments made for medical and related services) amounting to
other professional services. These services include rate, management more than $250,000, including payments for legislative services,
construction, engineering, research, financial, valuation, legal , accounting, except those which should be reported in Account 426.4
purchasing, advertising, labor relations, and public relations, rendered for the Expenditures for Certain Civic, Political and Related Activities.
respondent under written or oral arrangement, for which aggregate payments were (a) Name of person or organization rendering services.
made during the year to any corporation partnership, organization of (b) Total charges for the year.
2. Designate associated companies with an asterisk in column (b).
Line
No.
Delinea Corporation
Deloitte & Touche LLP
Dewey Ballantine LLP
Dorsey & Whitney LLP
Entrix Inc
Golder Associates Inc
Heller Ehrman White &...
Marsh
Oracle Corporation10 Paine Hamblen Coffin Brooke
11 Van Ness Feldman
Description
(a)
Amount
(in dollars)
(c)(b)
238,371
869,133
160,743
692,5a3
542,442
847 259
072 382
557 212
489,431
129,020
348,561
FERC FORM NO.2 (ED. 12-96)Page 358 (Next page is 512)
This Page Intentionally Left Blank
Name of Respondent
A vista Corporation
This ~ort Is:(1) ~ An Original
(2) D A Resubmission
Date of Report
(Mo, Oa, Yr)
Year of Report
April 25, 2005 Dec. 31 , 2004
GAS STORAGE PROJECTS
1. Report injections and withdrawals of gas for all storage projects used by respondent.
STORAGE OPERATIONS in Dth
1 Gas Delivered to Stora e
Janua
Februa
March
5 A ril
6 Ma
June
Jul
Au ust
1 0 Se tember
11 October
12 November
13 December
14 TOTAL Enter Total of Lines 2 Thru 13
15 Gas Withdrawn from Stora e
16 Janua
17 Februa
18 March
19 A ril
20 Ma
21 June
22 Jul
23 Au ust
24 Se tember
25 October
26 November
27 December
28 TOTAL Enter Total of Lines 16 Thru 27
31 Note:
33 Injections and withdrawals are based on Agency Agreement and State Benchmark Filings.
34 Agent manages storage facility and uses it as needed to meet Company requirements.
35 Scheduled injections/withdrawals are used to determine payment arrangements only.
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
Total
Amount
(Dth)
Item
Lin
No.
19,502
400,422
626,574
640,000
640,000
300,000
626,498
19,502
400,422
626,574
640,000
640,000
300,000
626,498
983,214
702 598
125
996
735
069
119
031
551
257 512
572,349
556,299
983,214
702,598
125
996
735
069
119
031
551
257 512
572,349
556,299
FERC FORM NO.2 (ED 12-96)Page 512
Name of Respondent This ~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
Year of Report
A vista Corporation (2) D A Resubmission April 25, 2005 Dec. 31. 2004
GAS STORAGE PROJECTS Continued
1. On Line 4. enter the total storage capacity certificated by FERC.
2. Report total amount in Dth or other unit as applicable on lines 2.. 7.
If uantit is converted from Mcf to Dth. rovide conversion factor in a footnote.
Item Total
Amount
Lin
No.
690,097
035,107
725,204
51.742,663
286,719
Janua 5, 2004
FERC FORM NO.2 (ED 12-96)Page 513
Name of Respondent
A vista Corp.
line
No.
Kind of Material
This ~ort Is:(1) An Original
(2) D A Resubmission
TRANSMISSION MAINS
Date of Report
(Mo, Da, Yr)
Year of Report
(a)
Steel Coated
Steel Coated
April 25, 2005 Dec. 31,2004
723,360
26,400
TOTALS
* Show separately and identify lines held under a title other than full ownership.
Diameter
Pipe, Inches
(b)
Show particulars Called for Concerning Transmission Mains
Total Length in
Use Beginning
Year, Feet
(c)
Laid During
Year, Feet
(d)
Taken up or Total Length
Abandoned During in Use EndYear, Feet of Year. Feet
(e) (f)
Over 4" through 1
4" or Less
FERC FORM NO.2 (ED 12-87)Page 514
723.360
21, 1205280
744,480
Avista Corp.
This ~ort Is:(1) An Original
(2) D A Resubmission
Date of Report
(Mo, Da, Yr)
Year of ReportName of Respondent
April25,2005 Dec. 31 2004
DISTRIBUTION MAINS
Show articulars Called for Concernin Distribution Mains
Total Length in Taken up or Total Length
ine Kind of Material Diameter of Use" Beginning of Laid During Abandoned Durin in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
The Washin ton Water Power S stem
Steel Wrapped Less than 21\013,920 280 008,640
Steel Wrapped 2" to 41\874,400 874,400
Steel Wrapped 411 to 81\145,760 145,760
Steel Wrapped 8" to 12"163,680 163,680
Steel Wrapped Over 12"800 800
The WP Natural Gas S stem
Steel Wrapped Less than 2"120,480 280 115,200
Steel Wrapped 2" to 411 897,600 897,600
10 Steel Wrapped 41\ to 81\612,480 280 617 760
11 Steel Wrapped 8'1 to 12'1 15,840 15,840
12 Steel Wrapped Over 12"
13 The Washinaton Water Power System
Plastic Less than 2"968,640 427,680 10,396,320
Plastic 211 to 4'1 038,080 100,320 138,400
Plastic 41\ to 81\448,800 15,840 464,640
17 Plastic 8" to 12"
18 Plastic Over 1211
19 The WP Natural Gas S stem
20 Plastic Less than 2"920,960 242 880 163,840
Plastic 21\ to 797,280 26,400 823,680
22 Plastic 41\ to 58,080 58,080
23 Plastic 811 to 12'1
24 Plastic Over 12"
TOTALS 128,800 818,400 10,560 936,640
Note: WP Natural Gas laid pipe is net of retirements.
FERC FORM NO.Page 514-
Name of Respondent This Report Is:Date of Report Year of Report
(1) (K) An Original (Mo, Da, Yr)
Avista Corp.(2) A Resubmission April 25, 2005 Dec. 31, 2004
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the respondent at the close of the year.
Number at Number ~umber Remove Number Average
Line Type Diameter Beginning Added or Abandoned at Close Length
No.in Inches of Year During Year During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Washington Water Power System
Steel Wrapped l' or Less 60,132 198 59,934 Not
Steel Wrapped 1 II thru 2"122 110 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
WP Natural Gas System
Steel Wrapped l' or Less 39,889 39,924
Steel Wrapped 111 thru 2"583 500
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 811
Steel Wrapped Over 8"
Washington Water Power System
Plastic l' or Less 122,534 765 128,299
Plastic 1" thru 211 774 839
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
WP Natural Gas System
Plastic 11 or Less 70,263 107 73,370
Plastic 1'1 thru 2"1 ,437 401 838
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
TOTALS 297 001 385 307 306,079
FERC FORM NO.Page 514-
Name of Respondent This R
rKIort Is:
Date of R~port Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 Dec. 31,2004
CUSTOMER'S METERS
Owned
Line Size Type Make Capacity Beginning Added Retired Owned
No.of Year During Year During Year End of Year
(a)(b)(e)(d)(e)(f)
(g)
(h)
Detailed information not available.
TOTAL 316,060 15,655 911 327,804
FERC FORM NO.Page 514-
Name of Respondent
A vista Corporation
This ~ort Is:(1) ~ An Original
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
April 25, 2005
Year of Report
Dec. 31 2004
AUXILIARY PEAKING FACILITIES
1. Report below auxiliary facilities of the respondent for meeting seasonal peak demands on the respondent's system,
such as underground storage projects, liquefied petroleum installations, gas liquefaction plants, oil gas sets, etc.
2. For column (c), for underground storage projects, report the delivery capacity on February 1 of the heating
season overlapping the year-end for which this report is submitted. For other facilities, report the rated maximum
daily delivery capacities.
3. For column (d), include or exclude (as appropriate) the cost of any plant used jointly with another facility on the basis
of predominant use, unless the auxiliary peaking facility is a separate plant as contemplated by general instruction
12 of the Uniform System of Accounts.
Location of
Facility
Type of Facility
Maximum Daily
Delivery Capacity
of Facility.
Dth
Was Facility OperatedCost on Day of Highestof Transmission PeakFacility Delivery?
(In dollars)Line
No.
(a)(b)(c)(d)
Yes
(e)(f)
Chehalis, Washington
Chehalis, Washington
10 Plymouth, Washington
14 Plymouth, Washington
18 Lovelock, Nevada
23 Notes:
Undergound Natural Gas
Storage Field
Washington & Idaho Supply
126,670 18,820,261
Undergound Natural Gas
Storage Field
Oregon Supply
26,540 '
'..
"i,\d,.
Liquified Natural Gas
Storage Tanks
Washington & Idaho Supply
220,000 ~4~(;~~~(tI~~*':Wi~
Liquified Natural Gas
Storage Tanks
Oregon Supply
192,000
Liquified Natural Gas
Storage Tanks
California Supply
65,350
~:,
;(~)i"
(1) The full cost of the facility is reported on line 2.
(2) Respondent is a participant in the facilities, not an owner and is charged a fee for demand deliverability and capacity.
FERC FORM NO.2 (ED 12-96)Page 519
Name of Respondent This Report Is:Date of Report Year of Report
An Original (Mo, Da, Yr)
A vista Corporation A Resubmlssion April 25, 2005 Dec. 31 , 2004
GAS ACCOUNT - NATURAL GAS
The purpose of this schedule is to account for the quality or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilities. but not through any
Natural gas means either natural gas unmixed or any of the interstate portion of the reporting pipeline, and (3) the gathering
mixture of natural and manufactured gas.line quanities that were not destined for interstate market or that were
Enter in column ( c ) the Dth as reported in the not transported through any interstate portion of the reporting
schedules indicated for the items of receipts and pipeline.
deliveries.7 Also indicate in a footnote (1) the system supply quanitities of gas
Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeline, during the reporting year and
and transportation gas and specify the line on which also reported as sales, transportation, and compression volumes by
such quantities are listed.the reporting pipeline during the same reporting year, (2) the system
If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline during
are not interconnected, submit separate pages for this the reporting year which the reporting pipeline intends to sell or
purpose. Use copies of pages 520.transport in a future reporting year, and (3) contract storage
Also indicate by footnote the quantities of gas not subject quanitities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the company s total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14.02, etc.
pipeline (2) the quanties the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
Line Ref.
No.Item Page No.Amount of Dth (1)
(a)(b)(c)
GAS RECEIVED
Gas Purchases (Accounts 800-805)34,331,608
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305 15,697,754
Gas of Others Received for Distribution (Account 489.301
Gas of Others Received for Contract Storaae (Account 489.4)307
Exchanaed Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts pf Respondent's Gas Transported by Others (Account 858)332
Other Gas Withdrawn from Storaae (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (Specify):
Total Receipts (Total lines 3 thru 14.50,029,362
GAS DELIVERED
Gas Sales (Accounts 480 - 484)33,830,110
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305 15,697 754
Deliveries of Gas Distributed for Others (Account 489.301
Deliveries of Contract Storage Gas (Account 489.4)307
Exchange Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328
Deliveries of Gas to Others for Transportation (Account 858)332
Other Gas Delivered to Storage (Explain
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale 30,500
Total Deliveries (Total lines 17 thru 27.49,558,364
GAS UNACCOUNTED FOR
Production System Losses
Gathering System Losses
Transmission System Losses
Distribution System Losses 470,998
Storage System Losses
Other Losses (Specify)
Total Unaccounted For (Total lines 30 thru 35)470,998
Total Deliveries & Unaccounted For (Total lines 28 thru 36)50,029,362
FERC FORM NO.2 (ED. 12-96)Page 520
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
FOOTNOTE DATA
'Schedule Page: 103 Line No.25 Column: d
Subsidiary of Avista Capital. In 2003, assets previously held by Avista Laboratories, Inc.
were aquired by ReliOn, Inc. (formerly AVLB, Inc.Avista Labs investment in ReliOn, Inc.
is accounted for under the cost method.
ISchedule Page: 103.Line No.16 Column: d
51% owned by Cogentrix Energy, Inc., which is owned by the Goldman Sach Group, Inc.Avista Corp. 's interest is owned by Avista Rathdrum, LLC.
ISchedule Page: 103.Line No.19 Column: d
50% owned by Mirant Americas Development, Inc.
ownership interest in January 2005.
Avista Corp. purchased Mirant' s 50%
I FERC FORM NO.(ED. 12-87) Page 450.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Me, Da, Yr)
Avista Corporation (2)A Resubm ission 04/25/2005 2004/04
FOOTNOTE DATA
Schedule Pa e: 261 Line No.Column: b
Schedule M - Worksheet for Input / Allocations / Calculations
ADFIT = 190.
BP A C&RD Receipts
Contributions in aid of Construction (DJ710) Utility Code 0
Contributions in aid of Construction (DJ710) Utility Code
Contributions in Aid of Construction -- OR (DJ710)
Contributions in Aid of Construction -- CA (DJ710)
Customer Uncollectibles -- Sales for Resale (144.61)
Customer Uncollectibles (all 144 accts not included in WPNG or Electric direct)
Customer Uncollectibles (144.98)
BETC Interest 419.68 Perm Diff
Transportation Tax Depreciation capitalized (45%)
Transportation Tax Depreciation Capitalized
Taxable income (capital) not on books
YTD Form 1 Code
14,945,253
395 100
300 000
500 000
000
000
619 900
(91 364)
715
997 200
040
775,591
351
117 860
396 250
427 905
925 970)
077 708
634 238
714 929
(33 828)
391 997
450 004
250 572
788
560
194,424
187 711
566 736
113 388
440 000
360 638
(238 028)
269 825
178 617
646 010
112 100
365 569
(39 276)
491 756)
507 472)
288 000
618 085
320
168 984
Hamilton Street Bridge
Severance / Stock Options - Accelerated Vesting
SERP-Supplemental Exec Retire Plan - 9253.
Non-monetary Purchased Power - 9242., 9174.
Amortization of Centralia Gain
Book Depr-Electric (Utility Code 0, 7 & 9)
Book Depr-Gas (Utility Code 1 & 8)
Book Deprec (Utility Code 2)
Rathdrum Turbine Sales Tax Refund -- Check by 9/2005 if principal sib addition
Wood Power Inc. Buyout (186.85 FIN)
Investment Exchange Power - WNP 3
F ASB 1 06-Def Amort-Postretirement Benefits - W A EL See Worksheet
F ASB 1 06-Def Amort-Postretirement Benefits - ill EL See Worksheet
F ASB 1 06-Def Amort-Postretirement Benefits - W A Gas See Worksheet
Redemption Expense Amortization - PCB'(Paul Kimball)
DSM -- Electric Program Amortization RJ300
DSM -- Gas Program Amortization RJ300
DSM -- Electric Program Amortization Sandpoint RJ300
Political Contributions
Paid Time Off Equalization
Sale/Lease General Office Bldg (9005 9985.00 )
Airplane Lease Payments
CSS Hardware Lease - Principal Only
CSS Software Lease - Principal Only
EGMA Hardware & Software Lease - Principal Only
WMS Software Lease - Principal Only
CIT Operating Lease
FASI06 Current Retiree Med accrual (30387926.20 B02) * (67% O&M) non-op DJ285
Redemption Expense Amortization - 189.86 & 257.00 except PCB's are directly assigned
Meal Disallowances
Trans Book Depreciation (57.61% --0 & M) GCT SCH M 12
Transportation Book Depreciation (90.63%)
Preferred Dividend Requirement
I FERC FORM NO.2 JED. 12-
DJKJl thru 2004
A88
Page 450.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
FOOTNOTE DATA
Expenses recorded on books not allowed for tax return
Injury & Damages - 9228., 21 (2841092521) - Elec DJ262
Injury & Damages - 9228., 22 (2841192521) - Gas DJ262
Injury & Damages (228.20/228.28/2841292521)
Kettle Falls Nonoperating 426.53 RJKFR 11/18
Gain on General Office Bldg - Elec 09800051 931900 ED AN RJBLD
12/2011
Gain on General Office Bldg - Elec 09800051 931900 GD AN
12/2011
Clark Fork PME'DJPME
Nez Perce Settlement 925422 -- WA RJ213
Nez Perce settlement 918680 -- ill RJ213
FASB 87 - 9228.32 (9291 7926.20 B02) * (67% O&M) DJ285 (Includes Retirement Pay)
Deferred Compensation Accrual- 9253.
W A & ill Unbilled Revenue Add-ons -- Electric
W A & ill Unbilled Revenue Add-ons -- Gas
Boulder Disallowance
PCA Write down (IPUC Order Oct 2004)
WA Deferred Power Costs - change in 182.35, 186., 186., GLMO18 & DJ702
W A Deferred Power Costs - Interest DJ702
Idaho PCA - change in 182.37, 186.38, 186.39, GLM 019 & DJ050
Idaho PCA - Interest DJ050
Deferred Gas - W A DJ266
W A Deferred Gas Costs - Interest DJ266
Deferred Gas - ill DJ266
ill Deferred Gas Costs - Interest DJ266
Deferred Gas - OR Resource Accounting
OR Deferred Gas - Interest
Deferred Gas - CA Resource Accounting
CA Deferred Gas - Interest
WPNG DSM - OR
OR DSM - Interest
PGE Monetization (Contract + Contract Amort from Spokane Energy, LLC Income StInt)
AFUDC Elec ~1-(8%/9.72%)
AFUDC Gas ~1-(8%/9.72%)
AFUDC -- GCT, SCH M 02 (1-(8%/9.72%))
Officers' Life Insurance (27899426.2X) Perm Diff
Income recorded on books not required for tax return
RJBLD
9191
9191
BP A Residential Exchange -- W A & ill
W A & ill DSM Tariff Rider -- Electric
W A & ill DSM Tariff Rider -- Gas
Removal/Salvage - Electric
Removal/Salvage - W AfID Gas
Removal/Salvage - OR/CA Gas
Basic American Foods-Non-Utility 9122.
***Tax Depreciation - Basic American Foods -- Non-Utility
Engineering Overheads - Electric
***Tax Depreciation - Electric
***Tax Depreciation - Rathdrum Turbine
Engineering Overheads - Gas
***Tax Depreciation - Gas
73,032,239
(822)
744
(123 945)
(227 265)
(196 092)
(65 364)
163)
(22 008)
212
319 397
330 644
970 392
190 892
338 249
906 056
675,699
358 534)
758 089
(520 155)
356 154)
(83,429)
(3,496 169)
(85 740)
050 629)
(770 815)
825
(49 834)
(223 413)
612
537 852
(517 563)
(10 886)
(8,653)
(630 513)
26,298,517
174 090
248 376
152 543
204 388
(79 154)
(162 632)
788
(12 786)
906 904)
(64 397,456)
486,895)
095 240)
(12 639 934)
I FERC FORM NO.Page 450.ED. 12-
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
FOOTNOTE DATA
***Tax Depreciation - Sandpoint Acquisition Adjustment
Engineering Overheads - OR
*** Tax Depreciation - Common
*** Tax Depreciation - OR
*** Tax Depreciation - CA
***Tax Amortization: WPNG Acquisition - OR
***Tax Amortization: WPNG Acquisition - CA
WPNG Acquisition OR - Book (425.68)
WPNG Acquisition CA - Book (425.78)
(458 114)
(794 280)
(621 792)
069 022)
(643,510)
(768 683)
(135 297)
117 260
206 160
(91,161,094)
I FERC FORM NO.ED. 12-Page 450.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
FOOTNOTE DATA
ISchedule Page: 274 Line No.Column: k
A 2004 Bonus Depreciation Adjustment is being reflected in the 2004 10-K. This adjustment
will be recorded in the General Ledger 3/31/05. Pages 274 and 275 have been revised to
inc 1 ude thi s adj us tmen t .
I FERC FORM NO.(ED. 12-87)Page 450.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/25/2005 2004/04
FOOTNOTE DATA
'Schedule Page: 276 Line No.Column:
PGE Monetization has been reclassed from Electric 410 to Non-operating 410 in the amount
of $41,724,683.
I FERC FORM NO.2 JED.12-87)Page 450.
2004 Form
State Supplements
This Page Intentionally Left Blank
Name of Respondent This R~ort Is:
(1) l29 An Original
Date of Report
(Mo, Da, Yr)
State of Wash in ton
Year of Report
A vista Corp (2) D A Resubmission Dec. 31, 2004April 25, 2005
STATEMENT OF INCOME 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,o) in a similar manner to a utility depart-
ment. Spread the amount(s) over lines 01 thru 20 as ap-
propriate. Include these amounts in columns (c) and (d)
totals.
2. Report amounts in account 414, Other Utility Operating
Income, in the same manner as accounts 412 and413 above.
3. Report data for lines 7,9, and 10 for Natural Gas com-
panies using accounts 404.1, 404.2, 404.3, 407., and
407.
4. Use page 122 for important notes regarding the state-
ment of income or an account thereof.
Line
No.
Account
(a)
(Ref.
Page
No.
(b)
300-301
320-325
320-325
336-338
336-338
336-338
262.,263
262-263
262-263
234 272-277
234,272-277
266
5. Give concise explanations concerning unsettled rate
proceedings where a contingency exists such that refunds
of a material amount may need to be made to the utility'
customers or which may result in a material refund to the
utility with respect to power or gas purchases. State for each
year affected the gross revenues or costs to which the con-
tingency relates. and the tax effects together with an expIa-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amounts paid with respect
to power and gas purchases.
6. Give concise explanations concerning significant
amounts of any refunds made or received during the year
TOTAL
Current Year Previous Year
$367,871,095 $390,472,489 (1)
16,257,718 $13,471,205 (1)
$37 716,369 $39,116,652
$5,599,495 $5,734 887
$31,691 $31 740
($3,736)($2,418)
168,551 $159,376
$7,459,555 $6,148,479
$49,416,932 $46,743,095 (2)
$8,004,703 $15,001,845
$5,807,668 ($2 029,717)
$30,624 $30,624
483,380,307 502 520,051
$85,224,415 $34,902,191
(1) Revised information to be conistent with data reported on State of Washington referenced pages
(2) Previous year balances did not include Washington State B&O and Excise taxes. Prior year balances have been revised.
FERC FORM NO.2 (REVISED 12-96)Page 114
tate 0 as me:ton
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp (2)A Resubmisslon April 25, 2005 Dec. 31, 2004
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting had an effect on net income, including the basis of allocations
revenues received or costs incurred for power or gas pur-and apportionments from those used in the preceding year.
chases, and a summary of the adjustments made to balance Also give the approximate dollar effect of such changes.
sheet, income, and expense accounts.9. Explain in a foonoteif the previous year's figures are
If any notes appearing in the report to stockholders are different from that reported in prior reports.
applicable to this Statement of Income, such notes may be at-10. If the columns are insufficient for reporting additional
tached at page 122.utility departments, supply the appropriate account titles, lines
Enter on page 122 a consise explanation of only those 1 to 19, and report the information in the blank space on page
changes in accounting methods made during the year which 122 or in a supplemental statement.
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY
Current Year Previous Year Current Year Previous Year Current Year Previous Year Line
No.
(e)(f)
( )
(h)(i)
$416,053,278 $398,534,451 $152,551,444 $138 887,791 ...L
..1...
244,444,072 262 744,416 123,427,023 127,728,073
13,514,339 11,232,097 743,379 239,108
32,273,958 33,118,653 5,442,411 997,999
214,442 291,883 385,053 443,004
31,691 31,740
(3,736)(2,418)
168,551 159,376
7,459,555 148,479
36,569,590 35,112,078 12,847,342 11,631,017
11,863,378 15,858,298 (3,858,675)(856,453)
008,276 (2,422 952)799,392 393,235
30,624 30,624
338,456,455 354 815,316 144,923,852 147,704,735
$77,596,823 $43,719,135 $7,627,592 ($8,816,944)
fW
FERC FORM NO.2 (REVISED 12-96)Page 115
Avista Corp.
State of Washin ton
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 25,2005 Dec. 31, 2004
Name of Respondent
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106
1. Report below the original cost of gas plant in service according to estimated basis if necessary, and include the entries in column (c).the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 101, Gas Plant in Service (Classified), this distributions of prior year reported in column (b). Likewise, if the
page and the next include Account 102, Gas Plant Purchased or respondent has a significant amount of plant retirements which have
Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the account for
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year's unclassified
indicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 Or anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
TOTAL Intan ible Plant Enter Total of lines 2 thru 4
PRODUCTION PLANT
218,724.
218,724.
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
State of Washin ton
Year Ending
Avista Corp.) A Resubmission April 25,2005 Dec. 31 , 2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (1) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (1) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (1) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Line
No.
218,724.
218,724.
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent This report is:
( X) An Original
Avista Corp.) A Resubmission
State of Washinaton
Date of Report Year Ending
(Mo, Da, Yr)
April 25,2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)Line AccountNo. (a)34 346 Gas Measuring and Reaulating EQuipment35 347 Other EQuipment36 TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)38 Manufactured Gas Production Plant (Submit Supplementary Statement)39 TOTAL Production Plant (Enter Total of lines 37 and 38)40 NATURAL GAS STORAGE AND PROCESSING PlANT41 Underground Storage Plant
42 350.1 land
43 350.2 Rights-of-Way44 351 Structures and Improvements45 352 Wells
46 352.1 Storage leaseholds and Rights
47 352.2 Reservoirs
48 352.3 Non-recoverable Natural Gas49 353 lines50 354 Compressor Station EQuipment51 355 Measuring and Regulating EQuipment52 356 Purification Eauipment53 357 Other Eauipment54 TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)55 Other Storage Plant56 360 land and land Rights57 361 Structures and Improvements58 362 Gas Holders59 363 Purification EQuipment
60 363.1 liQuefaction EQuipment
61 363.2 Vaporizing EQuipment
62 363.3 Compressor Eauipment
63 363.4 Measuring and Regulating EQuipment
64 363.5 Other Eauipment65 TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)66 Base load liQuefied Natural Gas Terminaling and Processing Plant
67 364.1 land and land Rights
68 364.2 Structures and Improvements
69 364.3 lNG Processing Terminal EQuipment
70 364.4 lNG TransPOration EQuipment
71 364.5 Measuring and Regulating EQuipment
72 364.6 Compressor Station Eauipment
73 364.7 Communications EQuipment
74 364.8 Other Eauipment75 TOTAl Base load liq Nat'l Gas, Terminal and Processing Plant (lines 67-74)76 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54,65 and 75)77 TRANSMISSION PLANT
78 365.1 land and land Rights
79 365.2 Rights-of-Way80 366 Structures and Improvements
FERC FORM NO.2 (ED. 12-96)Page 206
Balance at
Beginning of Year
(b)
412,611.
23,874.
063,699.
757,699.
254,354.
203,330.
121,926.
823,422.
934,085.
153,964.
403,712.
644,493.
18,797 174.
18,797 174.
Dec. 31, 2004
Additions
(c)
947.
836.
173.
90,957.45
90,957.
tate 0 as In010n
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
A vista Corp.) A Resubmission April 25,2005 Dec. 31 , 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(0)No.
412,611.
23,874.
063,699.
747.713,899.
254,354.
203,330.
121,926.
823,422.
23,123.993,799.
153,964.
403,712.
651,666.
67,870.18,820,261.
67,870.18,820,261.
fW h' t
FERC FORM NO.2 (ED. 12-96)Page 207
a eo as Ing1 on
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25,2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
367 Mains
368 Compressor Station EQuipment
369 Measuring and Regulating Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land Rights 60,812.(484.51)
375 Structures and Improvements 340,589.740.
376 Mains 96,830,859.463,695.
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General 147,387.109 206.41
379 Measuring and Regulating EQuipment-City Gate 674,899.53,653.
380 Services 73,967,703.185,850.
381 Meters 22,130,931.022,027.
382 Meter . Installations
383 House Regulators
384 House Regulator Installations
385 Industrial Measuring and Regulating Station Equipment 490,198.212,800.
100 386 Other Property on Customers' Premises
101 386 Other EQuipment
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)197,643,381.052,491.
103 GENERAL PLANT
104 389 Land and Land Rights
105 390 Structures and Improvements 384,166.59,637.
106 391 Office Furniture and Equipment
107 392 Transportation Equipment 031,485.736,092.
108 393 Stores Equipment 23,687.20,449.
109 394 Tools, Shop, and Garage Equipment 733,421.871.
110 395 Laboratory Equipment 181,920.
111 396 Power Operated EQuipment 659,396.606,750.
112 397 Communication EQuipment 491,366.11,453.
113 398 Miscellaneous Equipment
114 Subtotal (Enter Totals of lines 104 thru 113)505,445.444,254.
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)505,445.444,254.
117 TOTAL (Accounts 101 and 106)221,164,725.587,703.
118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction 8)
120 Experimental Gas Plant Unclassified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)221,164,725.587,703.
St t f W h' t
FERC FORM NO.2 (ED. 12-96)Page 208
aeo as Ing1 on
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25,2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
Cd)(e)(f)
(g)
No.
60,327.
221.(988.91)341,119.
22,094.40,875.100,313,336.
040.(26,868.00)221,684.
12,145.716,408.
87,979.77,065,574.
147,886.(3,236.53)23,001,836.
860.702,139.
100
101
283,227.782.205,422,427.102
103
104
443,803.105
106
970.755,607.107
44,137.108
15,028.728,264.109
743.181,177.110
266,147.111
(6,389.60)496,430.112
113
27,742.(6,389.60)915,567.114
115
742.(6,389.60)915,567.116
378,840.392.230,376,980.117
118
119
120
378,840.392.230,376,980.121
St t f W h' t
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
ate 0 ashington
Name of Respondent This Report Is:Date of Report Year of Report
lEI An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 25, 2005 Dec. 31, 2004
GAS STORED (ACCOUNT 117.117.117,117.4.164,164., AND 164.
If durring the year adjustments were made to the stored gas inventory State in a footnote the basis of segregation of inventory between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions. Also state in a footnote the
inaccuracies of gas measurements), explain in a footnote the reason for method used to report storage (I.e. fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method).
charged or credited.
Report in column (e) all encroachments during the year upon the volumes
designated as base gas, column (b), and system balancing gas, column
( c ), and gas property recordable in the plant accounts.
(Account (Account Noncurrent (Account Current LNG LNG
Line Description 117.117.(Account 117.117.4)(Account 164.(Account 164.(Account 164.Total
No.'b)(c)fd)Ie)(f)(aJ
Balance at Beginning of Year 807,527 129,522 937 049
Gas Delivered to StoraCle 553,358 553,358Gas Withdrawn from Storage 675,240 675,240
Other Debits and Credits
Balance at End of Year 685 645 129 522 815,167
Dth 268,976 72,561 341 537
Amount Per Dekatherm $5.2685 $1.7850 $5.0801
State basis of segregation of inventory between current and noncurrent portions:
Current portion is gas expected to be sold within a 24 month period. All other gas is considered non-current.
FERC FORM NO.2 (ED. 12-96)Page 220
Name of Respondent This R~ort Is:
(1) l29 An Original
Date of Report
(Mo. Da. Yr)
State of Washington
Year of Report
A vista Corporation (2) D A Resubmission April 25, 2005 Dec. 31 , 2004
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added. The average number of
prescribed account, and manufactured gas revenues in tota customers means the average of twelve figures at the close
2. Natural gas means either natural gas unmixed or any of each month.
mixture of natural and manufactured gas. 4. Report quantities of natural gas sold in Mcf (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F). If billings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate ac- tents of the gas sold and the sales converted to Mcf.
counts; except that where separate meter readings a 5. If increases or decreases from previous year (col-
added for billing purposes, one customer should be countel umns (c), (e) and (g), are not derived from previously
Line
No.
Title of Account
OPERATING REVENUES
Amount for
Amount for Year Previous Year(b (a)
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial and Industrial Sales
Small or Comm.) (See Instr. 6)
LarJe or Ind.) (See Instr. 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
1(483 Sales for Resale10 TOTAL Nat. Gas Service Revenues11 Revenues from Manufactured Gas12 TOTAL Gas Service Revenues13 OTHt:H U, "'" l~ IINlj REVEI'"I~"14 485 Intracompany Transfers15 487 Forfeited Discounts16 488 Misc. Service Revenues17 489 Rev. from Trans. of Gas of Others18 490 Sales of Prod. Ext. from Nat. Gas19 491 Rev. from Nat. Gas Proc. by Others20 492 Incidental Gasoline and Oil Sales21 493 Rent from Gas Property22 494 Interdepartmental Rents23 495 Other Gas Revenues24 TOTAL Other OperatinQ Revenues25 TOTAL Gas Operating Revenues26 (Less) (496) Provision for Rate Refunds27 TOTAL Gas Operating Revenues Net of
Provision for Refunds28 Dis. Type Sales by States (Incl. Main Line
Sales to Resid. and Comm. Custrs.
29 Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authorities)
30 Sales for Resale
31 Other Sales to Pub. Auth. (Local Dist. Only)32 Interdepartmental Sales
33 TOTAL Same as Line 10, Columns (b and (d))
.::'
341 542
060,026
285,627
716,711
46,202 878
131 778
334 126
146,021 321 (1)
326,180
132 377,547
132 377 547146,021 321
146,021 321 132 377 547
12,239
561 997 (1'
154
550,505
955 887
530,123
152 551 ,444
152 551,444
950,585
510,244
138,887 791
142,401,568
285,627
' ".': .
,t .
. ." :., .." ., .: .,.,
334 126
146,021 321
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This R~ort Is:
(1) l!9 An Original
Date of Report
(Mo, Da, Yr)
State of Washin ton
Year of Report
Avista Corporation (2) D A Resubmission April 25, 2005 Dec. 31 t 2004
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Account 481 t may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mcf per year or approximately 800 Mcf
per day of normal requirements, (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.
7, See page 108, Important Changes During Year
for important new territory added and important rate increases
or decreases.
THERMS OF NATURAL GAS SOLD
Quantity forQuantity for Year Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
443,156
165,030,768 2
165,030,768
486,680
167 201 857
167 201 ,857
131 971
131 971
30
128,964
128,964
NOTES
(1) Includes $1 813,022 unbilled revenues.
(2) Includes (520,958) therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of Washington
Name of Respondent This R~on Is:(l) ~ An Original
Date of Report
(Mo. Da. Yr)
Year of Report
A vista Coil'.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not deri ved from oreviouslv reponed furores. explain in footnotes,
Amount forLine Amount Current Year
1. PRODUCTION. EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natural Gas Production
B I. Natural Gas Production and Gatherin2
Operation
750 Operation Supervision and Ene:ineerine:
751 Production Maps and Records
752 Gas Wells Expenses10 753 Field Lines ExpensesII 754 Field Compressor Station Exoenses12 755 Field Compressor Station Fuel and Power13 756 Field Measurinl't and Re2Ulatine: Station Exoenses14 757 Purification Exoenses15 758 Gas Well Rovalties16 759 Other Expenses17 760 Rents18 TOTAL Operation (Enter Total of lines 7 thru 17)
19 Maintenance20 761 Maintenance Supervision and Ene:ineerine:21 762 Maintenance of Structures and Improvements22 763 Maintenance of ProduCin2 Gas Wells23 764 Maintenance of Field Lines24 765 Maintenance of Field Compressor Station Eauipment25 766 Maintenance of Field Meas. and Ree:. Sta, Eauipment26 767 Maintenance of Purification EQuioment27 768 Maintenance of Drilling and Cleanin2 Eauipment28 769 Maintenance of Other Eauipment29 TOTAL Maintenance (Enter Total of lines 20 thru 28)30 TOTAL Naturc1l Gas Production and Gatherin2 Total of lines 18 and 29)31 B2. Products Extraction32 Operation33 770 Ooeration Supervision and Ene:ineerine:34 771 Operation Labor35 772 Gas Shrinkal'te36 773 Fuel37 774 Power38 775 Materials39 776 Operation Supplies and Expenses40 777 Gas Processed bv Others41 778 Rovalties on Products Extracted42 779 Marketine: Expenses43 780 Products Purchased for Resale44 781 Variation in Products Inventorv45 (Less) 782 Extracted Products Used bv the Utilitv-Credit46 783 Rents47 TOTAL Operation (Enter Total of Lines 33 thru 46)
Amount for
Previous Year
(c)
),~/
i;.
'" .'.'\\.,," ."".. .",.' ;' .. .' . ."."""""
I,.
;;;,., ''..
I.,
.. .. .. ;.".'...'. .:. ,
I.'.
....,.,..., ,':.::.
FERC FORM NO.2 (ED 12-88)Page 320
State of Washington
Name of Respondent This R
rIDort Is:
Date of Report Year of Report(l) X An Original (Mo. Da, Yr)
Avista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)
B2. Products Extraction (Continued)
...,' .").,,..
Maintenance
. . ,,
784 Maintenance Supervision and Engineering
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refining Equipment
787 Maintenance of Pioe Lines
788 Maintenance of Extracted Products Storage EQuipment
789 Maintenance of Compressor EQuipment
790 Maintenance of Gas Measuring and Reg. Equipment
791 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C, Exploration and Development iic'.c"
Operation
.,.':'.
x."
,,\.. '. .
795 Delay Rentals
796 Nonoroductive Well Drilling
797 Abandoned Leases
798 Other Exploration
TOTAL Exploration and Development (Enter Total of lines 61 thru 64)
D. Other Gas Supply Expenses
:,..
i.;:'
' ..'..
Operation
;,.
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases, Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Transmission Line Purchases
804 Natural Gas City Gate Purchases 100,951,201 84,881,056
804.1 Liquefied Natural Gas Purchases
805 Other Gas Purchases
(Less) 805.1 Purchased Gas Cost Adjustments 24,376,80 I
Ie;,..
TOTAL Purchased Gas (Enter Total of lines 67 to 76)100,951.201 109.257,856
806 Exchange Gas
Purchased Gas Expenses
::. .. ., ,.
807.1 Well Expenses-Purchased Gas
807.2 Ooeration of Purchased Gas Measuring Stations
807.3 Maintenance of Purchased Gas Measuring Stations
807.4 Purchased Gas Calculations Expenses 147.609 91,854
807;5 Other Purchased Gas Expenses 39,390
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)147,609 131,244
808.1 Gas Withdrawn from Storage-Debit
(Less) 808.2 Gas Delivered to Storage-Credit
809.1 Withdrawals of Liauefied Natural Gas for Processing-Debit
(Less) 809.2 Deliveries of Natural Gas for Processing-Credit
Gas Used in Utility Operations-Credit
". :..:,....,
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utility Operations-Credit
TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)
813 Other Gas Supply Expenses 181,026 127,420
TOTAL Other Gas Supply Exp (Total of lines 77,78,85,86 thru 89,94,95)101.279,836 109.516,520
TOTAL Production Expenses (Enter Total of lines 3.30,58,65, and 96)101,279,836 109,516.520
FERC FORM NO.2 (ED 12-88)Page 321
State of Washington
Name of Respondent This R~rt Is:Date of Report Year of Report(1) X An Original (Mo, Da. Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount forLineAmountCurrent Year Previous Year
No,fa)(b)fc)
2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A. Underground Storage Expenses
100 Operation
;;'.:... .
101 814 Ooeration Supervision and Enl!ineering 11,542 (4,013
102 815 Maos and Records
103 816 Wells Exoenses 984104817 Lines Exoense
105 818 Compressor Station Expenses 58,007106819 Compressor Station Fuel and Power 706107820 Measuring and Regulating Station Expenses 041
108 821 Purification Expenses
109 822 Exoloration and Development
110 823 Gas Losses
III 824 Other Exoenses 244,030 63,344
112 825 Storage Well Rovalties 29,6071I3826 Rents (1 , 146)1I4 TOTAL Operation (Enter Total of lines 10 I thru 113)255,572 166,536lISMaintenance
.. .. .
II6 830 Maintenance Supervision and Enl!ineering 31,270II7831Maintenance of Structures and Imorovements 9721I8832 Maintenance of Reservoirs and Wells 30,8721I9833 Maintenance of Lines 507120834 Maintenance of Compressor Station EQuipment 66,968
121 835 Maintenance of Measuring and Rel!ulating Station EQuipment
122 836 Maintenance of Purification Eauioment 1.735123837 Maintenance of Other EQuipment 125,197 55,268124TOTAL Maintenance (Enter Total of lines 116 thru 123)125,197 190,592
125 TOTAL Underground Storage Expenses (Total of lines 114 and 124)380,769 357,128
126 B. Other Storage Expenses
". ',,' .".,..,
127 Operation
. ,. .:, . "
I: .
.,.
128 840 Ooeration Supervision and Engineering
129 841 Oneration Labor and Expenses
130 842 Rents
131 842.1 Fuel
132 842.2 Power
133 842.3 Gas Losses
134 TOTAL Oneration (Enter Total of lines 128 thru 133)
135 Maintenance
136 843.1 Maintenance Supervision and Ene:ineering
137 843.2 Maintenance of Structures and Imorovements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification EQuipment
140 843.5 Maintenance of Liauefaction EQuipment
141 843.6 Maintenance of Vaporizinl! Eauioment
142 843.7 Maintenance of Compressor Eauioment
143 843.8 Maintenance of Measuring and Rel!ulating Eauipment
144 843.9 Maintenance of Other EQuipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Storage Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
State of Washington
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo. Du. Yr)
A vista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.fa)(b) (c)
147 C. LiQuefied Natural Gas Terminaling and Processinjt Expenses
..,
148 Operation
.""
149 844.1 Operation Suoervision and Ene:ineerine:
150 844.2 LNG Processing Terminal Labor and Exoenses
151 844.3 LiQuefaction Processine: Labor and Exoenses
152 844.4 LiQuefaction Transoortation Labor and Exoenses
153 844.5 Measuring and Regulating Labor and Expenses
154 844.6 Compressor Station Labor and Exoenses
155 844.7 Communication Svstem Exoenses
156 844.8 System Control and Load Disoatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurrae:e Chare:es
161 (Less) 845.5 Wharfae:e Receiots-Credit
162 845.6 Processine: LiQuefied or Vaporized Gas bv Others
163 846,1 Gas Losses
164 846,2 Other Exoenses
165 TOTAL Operation (Enter Total of lines 149 thru 164)
166 Maintenance
167 847.1 Maintenance Suoervision and Engineering
168 847.2 Maintenance of Structures and Imorovements
169 847.3 Maintenance of LNG Processinjt Tenninal EQuioment
170 847.4 Maintenance of LNG Transportation EQuipment
171 847.5 Maintenance of Measuring and Re~lating EQuipment
172 847.6 Miantenance of Compressor Station EQuipment
173 847.7 Maintenance of Communication EQuioment
174 847.8 Maintenance of Other EQuioment
175 TOTAL Maintenance (Enter Total oflines 167 thru 174)
176 TOTAL LiQuefied Nat Gas Tenninaling and Processing Exo (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125, 146, and 176)380.769 357.128
178 3. TRANSMISSION EXPENSES I..
...:. ,.."'.
179 Operation I.. .
180 850 Ooeration Suoervision and Engineerine:
181 851 System Control and Load Dispatching
182 852 Communication System Expenses
183 853 Compressor Station Labor and ExDenses
184 854 Gas for ComDressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measurine: and Re~lating Station Expenses
188 858 Transmission and Compression of Gas by Others
189 859 Other Exoenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)
FERC FORM NO.2 (ED 12-88)Page 323
State of Washington
Name of Respondent This R
lIDort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
3. TRANSMISSION EXPENSES (Continued)
~':"".'
192 Maintenance h.;.
.;' '.",.. ..::... ..... :. ..
193 861 Maintenance Supervision and Engineering
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Equipment
197 865 Maintenance of Measuring and Reg. Station Equipment
198 866 Maintenance of Communication Equipment
199 867 Maintenance of Other EQuipment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)
201 TOTAL Transmission Expenses (Enter Total of lines 191 and 200)
202 4, DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and Engineering 405,243 66,511
205 871 Distribution Load Dispatching 226
206 872 Compressor Station Labor and Expenses
207 873 Compressor Station Fuel and Power
208 874 Mains and Services Expenses 1,422,873 398,678
209 875 Measuring and Regulating Station Expenses-General 52,835 32,822
210 876 Measuring and Regulating Station Expenses-Industrial
211 877 Measuring and Regulating Station Expenses-City Gate Check Station 65,476 41,327
212 878 Meter and House Regulator Expenses 724,571 632,687
213 879 Customer Installations Expenses 561,901 586,872
214 880 Other Expenses 925,678 825,498
215 881 Rents 335 35.472
216 TOTAL Operation (Enter Total of lines 204 thru 215)165,686 619,867
217 Maintenance
, "..".,'.
218 885 Maintenance Supervision and Engineering 108
219 886 Maintenance of Structures and Improvements 776 109
220 887 Maintenance of Mains 224,476 863,353
221 888 Maintenance of Compressor Station Equipment
222 889 Maintenance of Meas. and Reg. Sta. ~uip.General 170,603 165.533
223 890 Maintenance of Meas. and Reg. Sta.~uip.Industrial 127,207 93,791
224 891 Maintenance of Meas. and Reg. Sta,~uip,City Gate Check Station 35,849 30,877
225 892 Maintenance of Services 53,298 143,752
226 893 Maintenance of Meters and House Regulators 336,170 234,476
227 894 Maintenance of Other EQuipment
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)950,379 534 999
229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)116,065 154,866
230 5. CUSTOMER ACCOUNTS EXPENSES
' ,... ..;... ... .. ;..;.;. .. .
231 Operation
::.;,;..,.. ..... .
232 901 Supervision 35,536 45,017
233 902 Meter Reading Expenses 008,161 907,643
234 903 Customer Records and Collection Expenses 740,346 366,493
235 904 Uncollectible Accounts 701 ,549 651,640
236 905 Miscellaneous Customer Accounts Expenses 228,564 330,494
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)714,156 30 I ,287
FERC FORM NO.2 (ED 12-88)Page 324
Name of Respondent This R~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
Avista Corp,A Resubmission April 25, 2005(2)
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for ear is not derived from
State of Washington
Year of Report
December 31,2004
Amount
(a)
6, CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
Amount for
Previous Year
082,180
79,610
37,198
198,988
143,937
35,965
71,920
251,822
Operations. Expense
Maintenance Expense
366,342
65,737
374
436,453
828,248
042,254
847
1,462,026
137,385
648,917
306,111
531,725
616,166
807,347
376,332
667,803
044 135
126,170,402
123,427,023
743,379
126,170,402
513,517
016,636
129,967,181
127,728,073
239,107
129,967,181
NUMBER OF GAS DEPARTMENT EMPLOYEES
l. The data on number of employees should be reported construction employees in a foonote.
for the payroll period ending nearest to October 31, or 3, The number of employees assignable to the gas
any payroll period ending 60 days before or after Octo-department from joint function of combination utilities
ber 31.may be determined by estimate, on the basis of employee
2, If the respondent's payroll for the reporting period equivalents.Show the estimated number of equivalent
includes any special conslrction persolmel, include such employees attributed to the gas department from joint
employees on line 3, and show the number of such special functions.
Payroll Period Ended (Date)December 31, 2004
Total Regular Full-Time Employees 153
Total Part-Time and Temporary Employees allocation of General Employees
Total Employees 166
FERC FORM NO.2 (ED 12-88)Page 325
State of Washington
Name of Respondent This ;OTt Is:Date of Report Year of Report
(1) X An Original (Mo, Da, fr)
A vista Corp.(2)A Resubmission April 25, 2005 Dec. 31, 2004
TRANSMISSION MAINS
Show particulars Called for Concerning Transmission Mains*
Total Length in Taken up or Total Length
Line Kind of Material Diameter of Use Beginning of Laid During Abandoned During in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
(a)(b)(c)(d)(e)(fJ
Steel 4" or Less
Steel 4" to 10"390,720 390,720
TOTALS 390,720
* Show separately and identify lines held under a title other than full ownership.
FERC FORM NO.2 (ED 12-87)Page 514
Name of Respondent
Avista Corp.
....
ine Kind of Material
No.
fa)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Plastic
Plastic
1 0 Plastic
11 Plastic
12 Plastic
TOTALS
FERC FORM NO.
This ~ort Is:(1) 129 An Original
(2) D A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo, Da, Yr)
April 25, 2005
Show particulars Called for Concerning Distribution Mains
Total Length in I Taken up
Use Beginning of Laid During Abandoned Durinc
Year, Feet Year, Feet Year, Feet(c) (d) (e)382,400 5,280
1 ,272,480
813,120
158,400
52,800
Diameter
Pipe, Inches
fb)
Less than 2"
2" to 4"
4" to 8"
811 to 12"
Over 12"
Less than 2"
2" to 4"
4" to 8"
811 to 12"
Over 12"
961,120
939,840
195,360
13,775,520
. Page 514-
232 320
800
280
290,400 280
State of Washington
Year of Report
Dec. 31 2004
Total Length
in Use End
of Year, Feet
(f)
377,120
1 ,272 480
813,120
158,400
52,800
193,440
992,640
200,640
060,640
aeo as InQ10n
Name of Respondent This Report Is:Date of Report Year of Report
(1) (g) An Original (Mo, Da, Yr)
Avista Corp.(2) AResubmission April 25, 2005 Dec. 31,2004
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the respondent at the close of
Number at Number Jumber Remove Number Average
Line Type Diameter Beginning Added or Abandoned at Close Length
No.in Inches of Year During Yeal During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Steel Wrapped 11 or Less 43,940 121 43,81 9 Not
Steel Wrapped 111 thru 2"087 076 Available
Steel Wrapped 2" thru 411
Steel Wrapped 411 thru 811
Steel Wrapped Over 811
Plastic or Less 78,776 213 989
Plastic 111 thru 211 618 679
Plastic 211 thru 411
Plastic 411 thru 811
Plastic Over 811
TOTALS 124 575 279 132 127,722
In 1996 40,000 111 services were dropped from the report.
St t f W h' t
FERC FORM NO.Page 514-
.,.....
Name of Respondent This R
lRIort Is:
Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp. (2)A Resubmission April 25, 2005 Dec. 31,2004
CUSTOMER'S METERS
Owned
Line Size Type Make Capacity Beginning .Added Retired Owned
No.of Year During Year During Year End of Year
(a)(b)(c)(d)(e)(f)(R)(h)
Detailed information not available.
TOTAL 137,739 921 654 141,006
State of Washinoton
FERC FORM NO.Page 514-
State of WashinatonName of Respondent This Report Is:Date of Report Year of Report
(2S) An Original (Mo, Os, Yr)
Avista Corporation A Resubmission April 25, 2005 Dec. 31, 2004
GAS ACCOUNT - NA rURAL GAS
The purpose of this schedule is to account for the quality or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilities, but not through any
Natural gas means either natural gas unmixed or any of the interstate portion of the reporting pipeline, and (3) the gathering
mixture of natural and manufactured gas.line quanities that were not destined for interstate market or that were
Enter in column ( c ) the Dth as reported in the not transported through any interstate portion of the reporting
schedules indicated for the items of receipts and pipeline.
deliveries,7 Also indicate in a footnote (1) the system supply quanitities of gas
Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeline, during the reporting year and
and transportation gas and specify the line on which also reported as sales, transportation, and compression volumes by
such quantities are listed.the reporting pipeline during the same reporting year, (2) the system
If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline during
are not interconnected, submit separate pages for this the reporting year which the reporting pipeline intends to sell or
purpose. Use copies of pages 520.transport in a future reporting year, and (3) contract storage
Also indicate by footnote the quantities of gas not subject quanitities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the companys total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14., 14,02. etc.
pipeline (2) the quanties the reporting pipeline
transported or sold throuah its local distribution facilities
01 NAME OF SYSTEM
Line Ref.
No.Item Page No.Amount of Dth (1)
(a)(b)(c)
GAS RECEIVED
Gas Purchases (Accounts 800-805)17,253,656Gas of Others Received for Gatherina (Account 489.303Gas of Others Received for Transmission (489.305 562 675Gas of Others Received for Distribution (Account 489.301
Gas of Others Received for Contract Storace (Account 489.4)307
Exchanaed Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts of Resoondent's Gas Transported by Others (Account 858)332Other Gas Withdrawn from Storace (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (SpeciN):
Total Receipts (Total lines 3 thru 14.816,331GAS UEDV t:ril::U
Gas Sales (Accounts 480 - 484)16,503,077Deliveries of Gas Gathered for Others (Account 489.303Deliveries of Gas Transported for Others (Account 489.305 562,675Deliveries of Gas Distributed for Others Account 489.301
Deliveries of Contract StoraQe Gas (Account 489.4)307
Exchanae Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328Deliveries of Gas to Others for Transportation (Account 858)332
Other Gas Delivered to StoraQe (Explain)
Gas Used for Comoressor Station Fuel 509
Other Deliveries (SoeciN): Sales for Resale
Total Deliveries (Total lines 17 thru 27.22,065,752GAS 1II\Il1(~(Ylll"'III::U FOR
Production System Losses
GatherinQ System Losses
Transmission System Losses
Distribution System Losses 750,579Storage Svstem Losses
Other Losses lSpeciN)
Total Unaccounted ForlTotallines 30 thru 35)750,579
Total Deliveries & Unaccounted For (Total lines 28 thru 36)22,816,331
FERC FORM NO.2 (ED. 12-96)Page 520
Data Request for Statistics Report - 2004
Line No
GAS SERVICE REVENUES
13 THERMS OF GAS SOLD-TRANSPORTED
22 TOTAL THERMS OF GAS SOLD-TRANSPORTED
24 AVERAGE NUMBER OF GAS CUSTOMERS PER MONTH
urre-n e-rJo.r e-r urre-n a-a. rJo.r e-
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
OTHER OPERATING REVENUES
TOTAL GAS SERVICE REVENUES
194470117
104754350
9422721
362706
152110
8187511
3143811
166925006
90522719
7474713
348901
279638
8539920
3197880
91341542
51060026
3285627
334126
3561997
2968126
82716711
46202878
3131778
326180
3550505
2959739
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
201696263
122851688
13273911
479230
305000
156977535
198471049
122115272
12736380
517438
675000
155958628
98040965
62146078
4400569
443156
55626751
98644765
63204517
4865895
486680
49926204
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
268571
31886
311
261063
31312
310
118972
12811
160
116188
12583
163
33681120
327804
1027
32878560
316060
1020
14166240
141006
1027
14166240
137739
1020
GAS Data.xls
Name of Respondent This R~rt Is:
(1 ) l29 An Original
Date of Report
(Mo Da, Yr)
State of Idaho
Year of Report
A vista Corp (2) A Resubmission Dec. 31 2004Apri125, 2005
ST A TEJvlENT OF INCOJvIE 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 t() a utility depart-
ment Spread the amount(s) over lines 01 thm 20 as ap-
propriate. Include these amounts in columns (c) and (d)
totals.
2. Report amounts in account 414, OtherUtility Operating
Income, in the same manner as accounts 412 and413 above.
3. Report data for lines 7 , and 10 for Natural Gas com-
panies using accounts 404.1, 404.2, 404., 407.1, and
407.
4. Use page 122 for important notes regarding the state-
ment of income or an account thereof.
Line
No.
Account
(a)
FERC FORM NO.2 (REVISED 12-96)
(Ref.
Page
No.
(b)
300-301
320-325
320-325
336-338
336-338
336-338
262-263
262-263
262-263
234 272-277
234 272-277
266
Page 114
5. Give concise explanations concemingunsettled rate
proceedings where a contingency exists such that refunds
of a material amount may need to be made to the utility
customers or which may result in a material refund to the
utility with respect to power or gas purchases. State for each
year affected the gross revenues or costs to which the con-
tingency relates and the tax effects together with an expIa-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amounts paid with respect
to power and gas purchases.
6. Give concise explanations concerning significant
amounts of any refunds made or received during the year
TOT AL
Current Year Previous Year
i:i:i:i:!:i:i):!'!:i :!:i:i:!:!:!:Wi ::1:i :1:1:1 :i:i:!:!:i :!:imi :I:m:i:!'!:i :m:i:i:!:! j:i:i:11:i:: :!:!wj:j:!:!:i Hti:!:mmn:m:m:imi';i:!:!jIi'j:!'i:i:imi:!:!:i:JiH!:iI!:!miW! jH:m1:!:!
$251 031 104 $229 561 337
Name of Respondent This R~ort Is:
(1) (2g An Original
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
A vista Corp (2) A Resubmission Apri125 2005 Dec. 31 2004
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs incuIred for power or gas pur-
chases, and a summary of the adjustments made to balance
sheet, income, and expense accounts.
7. If any notes appearing in the report to stockholders are
applicable to this Statement of Income, such notes may be at-
tached at page 122.
8. Enter on page 122 a consise explanation of only those
changes in accounting methods made during the year which
ELECTRIC UTILITY
Current Year Previous Year
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 foonote if the previous year's figures are
different from that reported in prior reports.
10. If the columns are insufficient for reporting additional
utility departments, supply the appropriate account titles, lines
1 to 19, and report the infonnation in the blank space on page
122 or in a supplemental statement.
GAS UTILITYCurrent Year Previous Year Line
No.
OTHER UTILITY
Current Year Previous Year
$191 336 472 $177 232 917 $59 694 632
FERC FORM NO.2 (REVISED 12-96)
$52 328 420
Page 115
Name of Respondent This Report Is:
(1) I!I An Original
A vista Corporation (2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
April 25, 2005 Dec. 31,2004
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION
Line
No.
Item
(a)
UTILITY PLANT
In Service
Plant in Service (Classified)
Pro ert Under Ca ital Leases
Plant Purchased or Sold
Com leted Construction not Classified
Investment in Kettle Falls
TOTAL (Enter Total of lines 3 thru 7)
Leased to Others
10 Held for Future Use
11 Construction Work in Pro ress
12 Ac uisition Ad'ustments13 TOTAL Utilit Plant (Enter Total of lines 8 thru 12)
14 Accum. Prov. for De r., Amort., & De 1. 15 Net Utili Plant (Enter total of line 13 less 14)
DETAIL OF ACCUMULATED PROVISIONS FOR16 DEPRECIATION, AMORTIZATION AND DEPLETION
17 In Service:18 De reciation19 Amort. and De 1. of Producin N at. Gas Land and Land Ri hts20 Accumulated De reciation - Kettle Falls21 Amort. of Other Utilit Plant22 TOTAL in Service (Enter Total of lines 18 thru 21)
23 Leased to Others24 De reciation25 Amortization and De letion26 TOTAL Leased to Others (Enter Total of lines 24 and 25)
27 Held for Future Use28 De reciation29 Amortization30 TOTAL Held for Future Use (Ent. Tot. of lines 28 and 29)31 Abandonment of Leases (Natural Gas)32 Amort. of Plant Ac uisition Ad'ustment
TOTAL Accumulated Provisions (Should agree with line 14 above)
(Enter Total of lines 22, 26, 30, 31, and 32)
FERC FORM NO.2 (ED. 12-89)Page 200
Total Electric
627,558,748
665,704
524,688,555
629,224,452 524,688,555
961,688
638,186,140
638,186,140
668,138
533,356,693
533,356,693
Name of Respondent
State of Idaho
Year of ReportThis R~ort Is:
(1) 129 An Original
Date of Report
A vista Corporation (2) A Resubmission April 25,2005 Dec. 31,2004
SUMMAR Y OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)
Gas Other (Specify)Other (Specify)Other (Specify)Common
97,920,249
403,189
949,944
262,515 4
212,459
212,459
212,459
98,323,438
293,550
98,616,988
98,616,988
FERC FORM NO.2 (ED. 12-89)Page 201
Line
No.
Avista Corp.
State of Idaho
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 25, 2005 Dec. 31 , 2004
Name of Respondent
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106
1. Report below the original cost of gas plant in service according to estimated basis if necessary, and include the entries in column (c).the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 1 01, Gas Plant in Service (Classified), this distributions of prior year reported in column (b). Likewise, if the
page and the next include Account 102, Gas Plant Purchased or respondent has a significant amount of plant retirements which have
Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the accountfor
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year's unclassifiedindicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 Or anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
TOTAL Intan ible Plant Enter Total of lines 2 thru 4
PRODUCTION PLANT
722.
722.
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
FERC FORM NO.2 (ED. 12-96)Page 204
State of Idaho
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.) A Resubmission April 25, 2005 Dec. 31,2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (1) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399. state the nature and use of plant included in this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (1) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (1) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed journal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Line
No.
96.640.103,362;07
96,640.103,362.
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
346 Gas Measuring and Reaulating EQuipment
347 Other EQuipment
TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)
TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)
Manufactured Gas Production Plant (Submit Supplementary Statement)
TOTAL Production Plant (Enter Total of lines 37 and 38)
NATURAL GAS STORAGE AND PROCESSING PLANT
Underground Storage Plant
350.1 Land
350.2 Rights-of-Way
351 Structures and Improvements
352 Wells
352.1 Storage Leaseholds and Riahts
352.2 Reservoirs
352.3 Non-recoverable Natural Gas
353 Lines
354 Compressor Station EQuipment
355 Measuring and Regulating EQuipment
356 Purification EQuipment
357 Other EQuipment
TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification EQuipment
363.1 liQuefaction EQuipment
363.2 Vaporizing EQuipment
363.3 Compressor EQuipment
363.4 Measuring and Regulating EQuipment
363.5 Other EQuipment
TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)
Base Load liQuefied Natural Gas Terminaling and Processing Plant
364.1 Land and Land Rights
364.2 Structures and Improvements
364.3 LNG Processing Terminal EQuipment
364.4 LNG Transporation EQuipment
364.5 Measuring and Regulating EQuipment
364.6 Compressor Station EQuipment
364.7 Communications EQuipment
364.8 Other EQuipment
TOTAL Base Load Liq Nat'l Gas, Terminal and Processing Plant (lines 67-74)
TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54,65 and 75)
TRANSMISSION PLANT
365.1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 206
State of Idaho
Name of Respondent This report is:Date of Report Year Endin
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmlssion April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)if)(0)No.
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent
Avista Corp.
This report is:
( X) An Original
) A Resubmission
Date of Report
(Mo, Da, Yr)
April25,2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Line
No.81 367 Mains82 368 Compressor Station EQuipment83 369 Measuring and Regulating Equipment84 370 Communications EQuipment85 371 Other Equipment86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)87 DISTRIBUTION PLANT88 374 Land and Land Rights89 375 Structures and Improvements90 376 Mains91 377 Compressor Station EQuipment92 378 Measuring and Regulating Equipment-General93 379 Measuring and Regulating Equipment-City Gate94 380 Services95 381 Meters96 382 Meter Installations97 383 House Regulators98 384 House Regulator Installations99 385 Industrial Measuring and Regulating Station EQuipment
1 00 386 Other Prooertv on Customers' Premises
101 386 Other EQuiDment102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)103 GENERAL PLANT
1 04 389 Land and Land Rights
1 05 390 Structures and ImDrovements
391 Office Furniture and EQuipment
1 07 392 Transportation EQuipment
1 08 393 Stores EQuipment
109 394 Tools, ShOD, and Garage Equipment
110 395 Laboratorv EQuiDment
111 396 Power Ooerated EauiDment
112 397 Communication EQuipment
113 398 Miscellaneous EQuipment114 Subtotal (Enter Totals of lines 104 thru 113)
115 399 Other Tangible Property116 TOTAL General PlantlEnter Totals of lines 114 and 115)117 TOTAL (Accounts 101 and 106)118 Gas Plant Purchased (See Instruction 8)119 (Less) Gas Plant Sold (See Instruction 8)120 . Experimental Gas Plant Unclassified121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)
Account
(a)
FERC FORM NO.2 (ED. 12-96)Page 208
Balance at
Beginning of Year
(b)
29,391.
109,876.
48,322,407.
298,067.
562,923.
34,151 812.
723,557.
413,026.
91,611,063.
306,363.
326,174.
59,330.
404,054.
261,664.
357,587.
357,587.
92,975,373.
92,975,373.
State of Idaho
Year Ending
Dec. 31,2004
Additions
(c)
771,863.
20,956.
816,441.
203,972.
67,940.
881,174.
267,523.
147.
196,320.
096.
479,087.
479,087.
360,261.
360,261.
State of Idaho
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 ,2004
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)
(g)
No.
29,391.
11,236.121,113.
37,295.46,780.50,103,756.
074.49 (228,676.88)084,272.
079.146,801.702,645.
33,915.36,934,337.
927,530.
747.481,714.
100
101.102
103
104
105
106
573,886.107
108
683.326,638.109
242.59,087.110
600,374.111
332.898.275,326.112
113
259.898.835,314.114
115
259.898.835,314.116
624.79,427.98,323,437.117
118
119
120
91,624.79,427.98,323,437.121
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
Name of Respondent This Report Is:Date of Report Year of Report
(81 An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 25, 2005 Dec. 31, 2004
GAS STORED (ACCOUNT 117.117.117.117.164,164.2, AND 164.
If durring the year adjustments were made to the stored gas inventory State in a footnote the basis of segregation of inventory between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions. Also state in a footnote the
inaccuracies of gas measurements), explain in a footnote the reason for method used to report storage (I.e. fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method).
charged or credited.
2 Report in column (e) all encroachments during the year upon the volumes
designated as base gas, column (b), and system balancing gas, column
( c ), and gas property recordable in the plant accounts.
(Account (Account Noncurrent (Account Current LNG LNG
ine Description 117.117.(Account 117.117.(Account 164.(Account 164.(Account 164.Total
No.(a)(b)(c)(d) (e)If)(a) (h)(i)
Balance at BeQinninQ of Year 085,371 100 133,471
Gas Delivered to Storaae 613.395 613,395
Gas Withdrawn from Storaae 3,438,977 438 977
Other Debits and Credits
Balance at End of Year 259,790 48,100 307,890
Dth 421,121 946 448,067
Amount Per Dekatherm $5.3661 $1.7850 $5.1508
State basis of segregation of inventory between current and noncurrent portions:
Current portion is gas expected to be sold within a 24 month period. All other gas is considered non-current.
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 220
Name of Respondent This
wort
Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission April 25, 2005 Dec. 31 2004
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added.The average number of
prescribed account, and manufactured gas revenues in total.customers means the average of twelve figures at the close
2. Natural gas means either natural gas unmixed or any of each month.
mixture of natural and manufactured gas.4. Report quantities of natural gas sold in Mcf (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F). If billings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate ac-tents of the gas sold and the sales converted to Mcf.
counts; except that where separate meter readings are 5. If increases decreases from previous year (col-
added for billing purposes, one customer should be counted umns (c),(e)and (g), are not derived from previously
OPERATING REVENUES
Line Title of. Account Amount for
No.Amount for Year Previous Year
(a)
GAS SERVICE REVENUES
480 Residential Sales 273,915 32 545,885
481 Commercial and Industrial Sales
Small or Comm.) (See Instr. 6)19,895,903 17,432,929
Large or Ind.) (See Instr. 6)585,952 1 ,246,277
482 Other Sales to Public Authorities
484 Interdepartmental Sales 28,580 721TOTAL Sales to Ultimate Consumers 784 350 1(1 247,812(483 Sales for Resale
TOTAL Nat. Gas Service Revenues 58,784 350 247 812
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 58,784 350 51 247,812
u I H~H U ....'.r 111\I\.j , ..... y...., ~.Jt::~
485 Intracompany Transfers
487 Forfeited Discounts
488 Misc. Service Revenues 348 579489Rev. from Trans. of Gas of Others 902 934 (1)074 029490Sales of Prod. Ext. from Nat. Gas
491 Rev. from Nat. Gas Proc. by Others
492 Incidental Gasoline and Oil Sales
493 Rent from Gas Property
494 Interdepartmental Rents
495 Other (jas Revenues
TOTAL Other Operating Revenues 910,282 080,608
TOTAL Gas Operating Revenues 59,694 632 52,328,420
(Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 59,694 632
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line 169,818
Sales to Resid.and Comm. Custrs.
Main Line Industrial Sales (Incl. Main 585,952
Line Sales to Pub. Authorities)
Sales for Resale
Other Sales to Pub. Auth. (Local Dist. Only)
."..
Interdepartmental Sales 28,580
TOTAL (Same as Line 10, Columns (b) and (d))58,784 350
State of Idaho
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This ~ort Is:
(1) 129 An Original
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
Avista Corporation (2) D A Resubmission April 25, 2005 Dec. 31, 2004
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note,
6. Commercial and Industrial Sales, Account 481 , may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mcf per year or approximately 800 Met
per day of normal requirements, (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.
7. See page 108, Important Changes During Year
tor important new territory added and important rate increases
or decreases.
THERMS OF NATURAL GAS SOLD
Quantity forQuantity for Year Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
36,074
67,102 794 2
67,102 794
30,758
088,693
088,693
809
809
60,459
60,459
NOTES
(1) Includes $893.742 unbilled revenues.
(2) Includes (253 010) therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of Idaho
Name of Respondent This R~rt Is:Date of Report Year of Report(1) X An Original (Mo, Da. Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not deri ved from previously reported fi2Ures, explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
1. PRODUCTION EXPENSES I....
...
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)I'.
B. Natural Gas Production
B 1. Natural Gas Production and Gatherin2
Operation
750 Operation Supervision and En2ineerin2
751 Production Maos and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Expenses
755 Field Compressor Station Fuel and Power
756 Field Measurin2 and ReJZUlatin2 Station Expenses
757 Purification Expenses
758. Gas Well Rovalties
759 Other Exoenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
('......".. ., .
761 Maintenance Supervision and En2ineerin2
762 Maintenance of Structures and Improvements
763 Maintenance of Producin2 Gas Wells
764 Maintenance of Field Lines
765 Maintenance of Field Compressor Station EQuipment
766 Maintenance of Field Meas. and Re2. Sta. EQuipment
767 Maintenance of Purification EQuipment
768 Maintenance of Drillin2 and Cleanin2 EQuipment
769 Maintenance of Other EQuioment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gatherin2 (Total of lines 18 and 29)
B2. Products Extraction
. ,.",....,
Operation i.,.
770 Operation Supervision and En2ineerin2
771 Operation Labor
772 Gas Shrinka2e
773 Fuel
774 Power
775 Materials
776 Operation Supplies and Expenses
777 Gas Processed bv Others
778 Royalties on Products Extracted
779 Marketin2 Exoenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used by the Utility-Credit
783 Rents
TOTAL Operation (Enter Total of Lines 33 thru 46)
FERC FORM NO.2 (ED 12-88)Page 320
State of Idaho
Name of Respondent This R
lIDort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount CulTent Year Previous Year
No,(a)(b)(c)
B2. Products Extraction (Continued)
..,......
Maintenance
784 Maintenance Supervision and Ene:ineerine:
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refmine: EQuipment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storae:e EQuipment
789 Maintenance of Compressor Equipment
790 Maintenance of Gas Measuring and Reg. Equipment
791 Maintenance of Other EQuipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C. Exploration and Development
,"!.. .
Operation
,\\. ,:::
i..
!::.
795 Delay Rentals
796 Nonproductive Well Drilling
797 Abandoned Leases
798 Other Exploration
TOTAL Exploration and Development (Enter Total of lines 61 thru 64)
D. Other Gas Supply Expenses 1""
(,:'. '" ," .,' : '
Operation
: ., ... ,:'
8oo Natural Gas Well Head Purchases
8oo.1 Natural Gas Well Head Purchases, Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Transmission Line Purchases
804 Natural Gas City Gate Purchases 41,178,093 30,823,195
804.1 LiQuefied Natural Gas Purchases
805 Other Gas Purchases
(Less) 805.1 Purchased Gas Cost Adjustments 11,778,200
TOTAL Purchased Gas (Enter Total of lines 67 to 76)41,178,093 42,60 1,394
806 Exchange Gas
Purchased Gas Expenses
. ..
807.1 Well Expenses-Purchased Gas
807.2 Operation of Purchased Gas Measurine: Stations
807.3 Maintenance of Purchased Gas Measuring Stations
807.4 Purchased Gas Calculations Expenses 76,372 48,600
807.5 Other Purchased Gas Expenses 20,841
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)76,372 69,441
808.1 Gas Withdrawn from StoraJ:!;e-Debit
(Less) 808.2 Gas Delivered to Storage-Credit
809.1 Withdrawals of Liquefied Natural Gas for ProcessinJ:!;-Debit
(Less) 809.2 Deliveries of Natural Gas for Processing-Credit
Gas Used in Utility Operations-Credit
:.,.::.
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utility Operations-Credit
TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)
813 Other Gas Supply Expenses 94,924 70,954
TOTAL Other Gas Supply Exp (Total of lines 77,78,85,86 thru 89,94,95)41,349 389 42,741,789
TOTAL Production Expenses (Enter Total of lines 3,30,58,65, and 96)41,349,389 42,741,789
FERC FORM NO.1 (ED 11-88)Page 321
State of Idaho
Name of Respondent This R~rt Is:Date of Report Year of Report(1) X An Original (Mo.. Yr)
A vista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
2. NATURAL GAS STORAGE, TERMINALING AND Ii;, ..
.. .. .... " .. .
PROCESSING EXPENSES
~~~~,.. ,,' '.
A. Undenzround Stora2e Exoenses
:.,.. '.
. . :r':':.
:'.. .;::"
100 Operation
.".'. :.., . .
101 814 Operation Supervision and En2ineerin2 286 505
102 815 MaDs and Records
103 816 Wells ExDenses 745
104 817 Lines Expense
105 818 Compressor Station Expenses 21.761
106 819 ComDressor Station Fuel and Power 891
107 820 Measurinl! and Re2Ulatin2 Station Expenses 141
108 821 Purification ExDenses
109 822 ExDloration and DeveloDment
110 823 Gas Losses
III 824 Other Expenses 90,625 23,763
112 825 Stora2e Well Royalties II,
113 826 Rents (430)
114 TOTAL Operation (Enter Total of lines 101 thru 113)62,475
115 Maintenance
' ',. ,'.. ,..:'.
116 830 Maintenance SuDervision and Engineering 11,730
117 831 Maintenance of Structures and Improvements 740
118 832 Maintenance of Reservoirs and Wells 11,581
119 833 Maintenance of Lines 941
120 834 Maintenance of Compressor Station EQuipment 25,122
121 835 Maintenance of Measuring and Regulating Station EQuipment
122 836 Maintenance of Purification Eauipment 651
123 837 Maintenance of Other EauiDment 46,494 20,733
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)46,494 71,498
125 TOTAL Under2round Stora2e Expenses (Total of lines 114 and 124)141 ,405 133.973
126 B. Other Stora2e Expenses Ii.,.. .
,'.. .
127 ODeration Iii:
; .:\.. .
128 840 Operation SuDervision and Enl!ineering
129 841 Operation Labor and ExDenses
130 842 Rents
131 842.1 Fuel
132 842.2 Power
133 842.3 Gas Losses
134 TOTAL Operation (Enter Total of lines 128 thru 133)
135 Maintenance
136 843.1 Maintenance Supervision and En2ineerin2
137 843.2 Maintenance of Structures and Improvements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification I\auiDment
140 843.5 Maintenance of Liauefaction Eauipment
141 843.6 Maintenance of VaDorizinl! Eauipment
142 843,7 Maintenance of ComDressor ~uipment
143 843,8 Maintenance of Measurinl! and Re2ulatin2 Eauipment
144 843,9 Maintenance of Other Eauipment
145 TOTAL Maintenance (EIiterTotal oflines 136 thru 144)
146 TOTAL Other Storal!e Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
State of Idaho
Name of Respondent This R
lIDort Is:
Date of Report Year of Report(1) X An Original (Mo. Da. Yr)
Avista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No,fa)(b)(c)
147 C. liQuefied Natural Gas Terminaling and Processing Exoenses
148 Operation
149 844.1 Ooeration Suoervision and Engineering
150 844.2 LNG Processine Terminal Labor and Exoenses
151 844.3 liQuefaction Processine Labor and Exoenses
152 844.4 liQuefaction Transoortation Labor and Exoenses
153 844,5 Measuring and Regulating Labor and Expenses
154 844.6 Compressor Station Labor and Expenses
155 844.7 Communication Svstem Exoenses
156 844.8 Svstem Control and Load Dispatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurraee Charees
161 (Less) 845.5 Wharfaee Receipts-Credit
162 845.6 Processing liQuefied or Vaporized Gas by Others
163 846.1 Gas Losses
164 846.2 Other Exoenses
165 TOTAL ODeration renter Total oflines 149 thru 164)
166 Maintenance
"".,...':,..."::.. ....
167 847.1 Maintenance Suoervision and Engineering
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processing Terminal Eauioment
170 847.4 Maintenance of LNG Transportation Eauipment
171 847.5 Maintenance of Measuring and Reeulating Eauipment
172 847.6 Miantenance of Comoressor Station EQuipment
173 847,7 Maintenance of Communication EQuipment
174 847.8 Maintenance of Other Eauioment
175 TOTAL Maintenance (Enter Total of lines 167 thru 174)
176 TOTAL liQuefied Nat Gas Terminaline and Processine Exp (Lines 165 & 175)
177 TOTAL Natural Gas storaee (Enter Total of lines 125. 146. and 176)141,405 133.973
178 3. TRANSMISSION EXPENSES
"..;:,:;. ,.. \
179 Operation
;?". ,.
180 850 Ooeration Suoervision and Engineering
181 851 Svstem Control and Load Dispatching
182 852 Communication System Exoenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for Comoressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Exoenses
187 857 Measurine and Resrulatine Station Expenses
188 858 Transmission and Compression of Gas bv Others
189 859 Other Expenses
190 860 Rents
191 TOTAL ODeration (Enter Total of lines 180 thru 190)
FERC FORM NO.1 (ED 11-88)Page 323
State of Idaho
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
3, TRANSMISSION EXPENSES (Continued)
"... .", .'.'.'',.. ... , .
192 Maintenance
";''".. .", .;..
193 861 Maintenance Supervision and Enl!:ineerinl!:
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Eauipment
197 865 Maintenance of Measurinl!: and ReI!, Station Eauipment
198 866 Maintenance of Communication Eauipment
199 867 Maintenance of Other EQuipment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)
201 TOTAL Transmission Expenses (Enter Total of lines 191 and 200)
202 4. DISTRIBUTION EXPENSES
.'..".
203 Operation
' ."... '/,,,'.. .. ..
204 870 Operation Supervision and Enl!ineerinl!154,937 10 1 .939
205 871 Distribution Load Dispatching
206 872 Compressor Station Labor and Expenses
207 873 Compressor Station Fuel and Power
208 874 Mains and Services Expenses 671,483 520.993
209 875 Measurinl! and Rel!ulatinl! Station Expenses-General 317 18.236
210 876 Measurinl!: and Re2\llatinl!: Station Expenses-Industrial 973 884
211 877 Measurinl!: and Re2\llatinl!: Station Expenses-Citv Gate Check Station 45,249 42,279
212 878 Meter and House Re2\llator Expenses 287,903 319,343
213 879 Customer Installations Expenses 315,521 300.896
214 880 Other Expenses 351,019 275,753
215 881 Rents 844 11,885
216 TOTAL Operation (Enter Total of lines 204 thru 215)846,246 593,207
217 Maintenance
.;;.. ,.
218 885 Maintenance Supervision and En2ineerin2 424
219 886 Maintenance of Structures and Improvements 1,468
220 887 Maintenance of Mains 246,437 97,677
221 888 Maintenance of Compressor Station EQuipment
222 889 Maintenance of Meas, and ReI!, Sta.:Ouip.General 61,026 761
223 890 Maintenance of Meas. and ReI!. Sta,:Ouip.lndustrial 49,373 31,249
224 891 Maintenance of Meas. and ReI!. Sta.Quip.Citv Gate Check Station 12,767 12,808
225 892 Maintenance of Services 57,220 38,736
226 893 Maintenance of Meters and House Re2\llators 171,210 159,260
227 894 Maintenance of Other Eauipment
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)598,033 394,382
229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)2,444,279 987.589
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
. " .
232 901 Supervision 17,104 21,071
233 902 Meter Reading Expenses 491,325 440,476
234 903 Customer Records and Collection Expenses 354 541 136,726
235 904 Uncollectible Accounts 337,660 305,022
236 905 Miscellaneous Customer Accounts Expenses 108,298 153,405
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)308,928 056.700
FERC FORM NO.2 (ED 12-88)Page 324
State of Idaho
Name of Respondent This R~ort Is:
(1) l29 An Original
Date of Report
(Mo. Da. Yr)
Year of Report
A vista Corp,(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Line
No.
238
239 Operation
240 907 Supervision
241 908 Customer Assistance Expenses
242 909 Informational and Instructional Expenses
243 910 Miscellaneous Customer Service and Infonnational Expenses
244 TOTAL Customer Service and Infonnation Expenses (Lines 240 thru 243)245 7. SALES EXPENSES
246 Operation
247 911 Supervision
248 912 Demonstratine: and Selline: Expenses
249 913 Advertisine: Expenses
250 916 Miscellaneous Sales Expenses
251 TOTAL Sales Expenses CEnter Total of lines 247 thru 250)252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries
255 921 Office Supplies and Expenses
256 (Less) (922) Administrative Expenses Transferred-Cr,
257 923 Outside Services Emploved
258 924 Property Insurance
259 925 Injuries and Damae:es
260 926 Emolovee Pensions and Benefits
261 927 Franchise Requirements
262 928 Regulartorv Commission Expenses
263 (Less) (929) Duplicate Chare:es-Cr,
264 930.1 General Advertisine: Expenses
265 930.2 Miscellaneous General Exoenses
266 931 Rents
267 TOTAL Ooeration CEnter Total of lines 254 thru 266)
268 Maintenance
269 935 Maintenance of General Plant
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)
271 TOTAL Gas O. and M. Exp (Lines 97,177,20 I ,229,237,244,251 ,and 270)
If the amount for Previous vear is not derived from previously reported fi~ures, explain in footnotes,Amount for Amount forCurrent Year Previous Year(b) (c)
,i,;::.i:"
' ,.. .: .. .. .:..
514,541 479,545
38,139 16,834
17,903 33,665
570,583 530,044
:i,
,' ..".. .. .:,:..
, d
. "'\ .. .
0 3,676
229,423 159,425
31,388 34 946105 16,672
262,916 214,718
Ji.
. .:..
. I
':' ., .
!H:""'
!;,!:, ..... ,. ." .
263,147 1,008,409
473,022 430,291750 . (2 036)
665,630 678,94062,492 49,441
295,168 188,383141,458 83,750
303,596 241,411
538
281,788 230,404
368,226 443,968
852,777 3,353,500
, .
Amount
(a)
6, CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
I .
291,628
144,405
51,221,905
218,654
572,154
51,236.967
NUMBER OF GAS DEPARTMENT EMPLOYEES
1. The data on number of employees should be reported construction employees in a foonote.
for the payroll period ending nearest to October 31, or 3. The number of employees assignable to the gas
any payroll period ending 60 days before or after Octo- department from joint function of combination utilitiesber 31, may be determined by estimate, on the basis of employee
2. If the respondent's payroll for the reporting period equivalents, Show the estimated number of equivalent
includes any special constrction personnel, include such employees attributed to the gas department from joint
em 10 ees on line 3, and show the number of such s ecial functions,
I. Pa roll Period Ended ate) December 31,2004
2. Total Re lar Full-Time Em 10 ees
3. Total Part-Time and Tem 0 Em 10 ees allocation of General Em 10 ees
4. Total Em 10 ees
FERC FORM NO.2 (ED 12-88)Page 325
State of Idaho
Name of Respondent This rKtort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25, 2005 Dec. 31, 2004
TRANSMISSION MAINS
Show particulars Called for Concernin~ Transmission Mains
Total Length in Taken up or Total Length
....
ine Kind of Material Diameter of Use Beginning of Laid During Abandoned During in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
(a)(b)(e)(d)(e)(f)
None
TOTALS
* Show separately and identify lines held under a title other than full ownership.
FERC FORM NO.2 (ED 12-87)Page 514
Name of Respondent
Line
No.
Avista Corp.
Kind of Material
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Plastic
Plastic
1 0 Plastic
11 Plastic
12 Plastic
TOTALS
FERC FORM NO.
This Report Is:
(1) An Original
(2) A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo Da, Yr)
April 25, 2005
Diameter of
Pipe, Inches
(b)
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
Show Particulars Called for Concerning Distribution Mains
Total Length in
Use Beginning of
Year, Feet
(e)
631,520
601,920
332,640
280
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
007,520
098,240
253,440
930,560
Page 514-
Laid During
Year, Feet
(d)
195,360
47,520
10,560
253,440
Taken up or
Abandoned Durin~
Year, Feet
(e)
State of Idaho
Year of Report
Dec. 31,2004
Total Length
in Use End
of Year, Feet
(f)
631,520
601,920
332,640
280
202,880
145,760
264,000
184,000
State of Idaho
Name of Respondent This Report Is:Date of Report Year of Report
(1)(8) An Original (Mo, Da, Yr)
Avista Corp.(2) A Resubmission April 25, 2005 Dec. 31,2004
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the respondent at the close of
Number at Number ~umber Remove Number Average
Line Type Diameter Beginning Added or Abandoned at Close Length
No.in Inches of Year During Year During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Steel Wrapped 11 or Less 16,192 16,115 Not
Steel Wrapped 111 thru 211 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 411 thru 8'1
Steel Wrapped Over 811
Plastic l' or Less 43,758 552 46,310
Plastic 111 thru 211 156 160
Plastic 211 thru 4"
Plastic 411 thru 811
Plastic Over 8"
TOTALS 60,149 556 62,621
FERC FORM NO.Page 514~B
Name of Respondent This
ril
rt Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25,2005 Dec. 31,2004
CUSTOMER'S METERS
Owned
Line Size Type Make Capacity Beginning Added Retired Owned
No.of Year During Year During Year End of Year
(a)(b)(c)(d)(e)(I)
(g)
(Iz)
Detailed information not available.
TOTAL 62,541 721 65,262
State of Idaho
FERC FORM NO.Page 514-
Name of Respondent This Report Is:Date of Report Year of Report
An Original (Mo, Da, Yr)
Avista Corporation A Resubmisslon April 25, 2005 Dec. 31, 2004
GAS ACCOUNT - NATURAL GAS
The purpose of this schedule is to account for the quality or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilities, but not through any
Natural gas means either natural gas unmixed or any of the interstate portion of the reporting pipeline, and (3) the gathering
mixture of natural and manufactured gas.line quanities that were not destined for interstate market or that were
Enter in column ( c ) the Dth as reported in the not transported through any interstate portion of the reporting
schedules indicated for the items of receipts and pipeline.
deliveries.7 Also indicate in a footnote (1) the system supply quanitities of gas
Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeline, during the reporting year and
and transportation gas and specify the line on which also reported as sales, transportation, and compression volumes by
such quantities are listed.the reporting pipeline during the same reporting year, (2) the system
If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline during
are not interconnected, submit separate pages for this the reporting year which the reporting pipeline intends to sell or
purpose. Use copies of pages 520.transport in a future reporting year, and (3) contract storage
Also indicate by footnote the quantities of gas not subject quanitities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the companys total sales figure and the company
volumes another jurisdictional pipeline delivered to the total transportation figure, Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14.02, etc.
pipeline (2) the quanties the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
Line Ref.
No.Item Page No.Amount of Dth (1)
(a)(b)(c)
GAS RECEIVED
Gas Purchases (Accounts 800-805)6,407,419
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305 028,087
Gas of Others Received for Distribution Account 489.301
Gas of Others Received for Contract Storage (Account 489.4)307
Exchanged Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts pf Respondent's Gas Transported bv Others (Account 858)332
Other Gas Withdrawn from Storace (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (Specify):
Total Receipts (Total lines 3 thru 14.11 ,435,506
GAS DELI'v L..' H::U
Gas Sales (Accounts 480 - 484)710,280
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305 028,087
Deliveries of Gas Distributed for Others Account 489.301
Deliveries of Contract Storage Gas (Account 489.4)307
Exchange Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328
Deliveries of Gas to Others for Transportation (Account 858)332
Other Gas Delivered to Storage (Explain
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale
Total Deliveries (Total lines 17 thru 27.11,738,367
GAS UI\I~r ~rnIII\JTED FOR
Production System Losses
Gathering System Losses
Transmission System Losses
Distribution System Losses (302 861
Storage System Losses
Other Losses (SpeciN)
Total Unaccounted For (Total lines 30 thru 35)(302,861
Total Deliveries & Unaccounted For (Total lines 28 thru 36)11 ,435,506
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 520
This Page Intentionally Left Blank
Name of Respondent This R~rt Is:
(1 ) I!J An on ginal
Date of Report
(Mo Da, Yr)
State of Ore on
Year of Report
A vista Corp (2) D A Resubmission Apri125 2005 December 31, 2004
ST ATEMENT OF INCOME FOR THE YEAR
1. Report amoWlts for accoWlts 412 and 413, Revenue
and Expenses from Utility Plant Leased to Others, in another
utility colunm (i,k.m,o) in a similar manner to a utility depart-
ment. Spread the amount(s) over lines 01 t1nu 20 as ap-
propriate. Include these amoWlts in colunms (c) and (d)
totals.
2. Report amoWlts in accoWlt 414, Other Utility Operating
Income, in the same manner as accOWlts 412 and413 above.
3. Report data for1ines 7 , and 10 for Natural Gas com-
panies using accoWlts 404., 404., 404,, 407., and
407.
4. Use page 122 for important notes regarding the stat~
ment of income or an accoWlt thereof.
Line
No.
Account
TOTAL Utility Operating Expenses
(Enter Total of lines 4 thru 18)
Net Utility Operating Income (Enter Total of
line 21ess 19) (CatTY forward to page 117
line 21)
(Ref.
Page
No.
300-301
320-325
320-325
336-338
336-338
336-338
262-263
262-263
262-263
234 272-277
234 272-277
266
Note: (1) Infonnation other than operating revenue not available by state.
FERC FORM NO.2 (REVISED 12-96)Page 114
5. Give concise explanations concerning unsettled rate
proceedings where a contingency exists such that refunds
of a material amoWlt may need to be made to the utility
customers or which may result in a material refund to the
utility with respect to power or gas purchases. State for each
year affected the gross revenues or costs to which the con-
tingency relates and the tax effects together with an expia-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amoWlts paid with respect
to power and gas purchases.
6. Give concise explanations concerning significant
amoWlts of any refunds made or received during the year
TOTAL
Current Year Previous Year
$87,412 761 $68 218,847
N arne of Respondent This R.9;ort Is:
(1 ) (2g An Original
Date of Report
(Mo Da, Yr)
State of Ore on
Year of Report
A vista Corp (2) D A Resubmission April 25, 2005 December 31, 2004
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs incurred for power or gas pur-
chases, and a summary of the adjustments made to balance
sheet, income, and expense accoWlts.
7. If any notes appearing in the report to stockholders are
applicable to this Statement of Income, such notes may be at-
tached at page 122.
8. Enter on page 122 a consise explanation of only those
changes in accOlmting methods made during the year which
had an effect on net income, including the basis of allocations
and apportiomnents from those used in the preceding. year,
Also give the approximate dollar effect of such changes,
9. Explain in a foonote if the previous year's figures are
different from that reported in prior reports.
10. If the columns are insufficient for reporting additional
utility departments, supply the appropriate account titles, lines
1 to 19, and report the infonnation in the blank. space on page
122 or in a supplemental statement.
ELECTRIC UTILITY
Cucrem Y e~ ft~IDUS Year
GAS UTILITY
Cucrent Y e~ ftevious Y e~
OTHER UTILITY
Cucrent Y e~ ftevious Y e~Line
No.
$87,412 761 $68 218 847
FERC FORM NO.2 (REVISED 12-96)Page 115
Avista Corp.
State of Ore on
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 25, 2005 Dec. 31, 2004
Name of Respondent
GAS PLANT IN SERVICE ACCOUNTS 101,102,103, AND 106
1. Report below the original cost of gas plant in service according to estimated basis if necessary, and include the entries in column (c).the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 101, Gas Plant in Service (Classified), this distributions of prior year reported in column (b). Likewise, if the
page and the next include Account 102 Gas Plant Purchased or respondent has a significant amount of plant retirements which have
Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the account for
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year's unclassifiedindicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 O~ anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
TOTAL Intan ible Plant Enter Total of lines 2 thru 4
PRODUCTION PLANT
735,152.
735,152.
628.
65,344.945.
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
72,973.944.
FERC FORM NO.2 (ED. 12-96)Page 204
State of Ore on
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Year Ending
A vista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (1) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (1) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (1) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Line
No.
000.730,152.
000.730,152.
628.
67,289.
74,917.
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent This report is:
( X) An Original
Avista Corp.) A Resubmission
Date of Report
(Mo, Da, Yr)
April 25, 2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)Line AccountNo. (a)34 346 Gas Measuring and Regulating Equipment35 347 Other Equipment36 TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)38 Manufactured Gas Production Plant (Submit Supplementary Statement)39 TOTAL Production Plant (Enter Total of lines 37 and 38)40 NATURAL GAS STORAGE AND PROCESSING PLANT41 Underground Storage Plant
42 350.1 Land
43 350.2 Rights-of-Way44 351 Structures and Improvements45 352 Wells
46 352.1 Storage Leaseholds and Rights
47 352.2 Reservoirs
48 352.3 Non-recoverable Natural Gas49 353 Unes50 354 Compressor Station EQuipment51 355 Measuring and Regulating EQuipment52 356 Purification Equipment53 357 Other Equipment54 TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)55 Other Storage Plant56 360 Land and Land Rights57 361 Structures and Improvements58 362 Gas Holders59 363 Purification Equipment
60 363.1 liquefaction Equipment
61 363.2 Vaporizing Equipment
62 363.3 Compressor Equipment
63 363.4 Measuring and Regulating EQuipment
64 363.5 Other Equipment65 TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)66 Base Load Liquefied Natural Gas Terminaling and Processing Plant
67 364.1 Land and Land Rights
68 364.2 Structures and Improvements
69 364.3 LNG Processing Terminal EQuipment
70 364.4 LNG Transporation Equipment
71 364.5 Measuring and Regulating Equipment
72 364.6 Compressor Station Equipment
73 364.7 Communications Equipment
74 364.8 Other Equipment75 TOTAL Base Load Liq Nat'l Gas, Terminal and Processing Plant (lines 67-74)76 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54,65 and 75)77 TRANSMISSION PLANT
78 365.1 Land and Land Rights
79 365.2 Rights-of-Way80 366 Structures.and Improvements
FERC FORM NO.2 (ED. 12-96)Page 206
Balance at
Beginning of Year
(b)
973.
72,973.
State of Oregon
Year Ending
Dec. 31, 2004
Additions
(c)
. 0.
944.
944.
aeo regon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)
(g)
No.
74,917.
917.
St t
FERC FORM NO.2 (ED. 12-96)Page 207
aeo regon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April25,2005 Dec. 31,2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
367 Mains
368 Compressor Station EQuipment
369 Measuring and Regulating EQuipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 land and Land Rights 23,531.
375 Structures and Improvements 177,658.431.
376 Mains 70,477,854.500,094.
377 Compressor Station EQuipment
378 Measuring and Regulatina EQuipment-General 901,292.41 75,989.
379 Measuring and Regulatina EQuipment-City Gate 538,679.45,229.
380 Services 47,505,303.742,398.
381 Meters 19,965,205.235,644.
382 Meter Installations
383 House Regulators
384 House Regulator Installations
385 Industrial Measuring and Reaulatina Station EQuipment 667,050.86,071.
100 386 Other Property on Customers' Premises
101 387 Other Equipment 539.
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)140,257,114.685,860.
103 GENERAL PLANT
104 389 Land and land Rights 952.44
105 390 Structures and Improvements 373,646.700.
106 391 Office Furniture and EQuipment 685.
107 392 Transportation Equipment 126,744.78,699.
108 393 Stores Equipment 59,673.
109 394 Tools, Shop, and Garaae EQuipment 734,878.
110 395 Laboratory EQuipment 289,357.
111 396 Power Operated Equipment 315.
112 397 Communication Equipment 116,215.
113 398 Miscellaneous Equipment
114 Subtotal (Enter Totals of lines 104 thru 113)723,468.87,399.
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)723,468.87,399.
117 TOTAl (Accounts 101 and 106)143,788,709.775,204.
118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction 8)
120 Experimental Gas Plant Unclassified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)143,788,709.775,204.
St t
FERC FORM NO.2 (ED. 12-96)Page 208
ta e 0 regon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 , 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)
(g)
No.
23,531.
178,090.
104 305.73,873,643.
977,281.
583,908.
285,984.49,961,717.
198,497.(6,318.46)20,996,034.
753,121.44
100
539.101.102
103
952.104
382,346.105
685.106
58,803.146,641.107
526.56,147.108
507.659,371.109
289,357.110
315.111
116,215.112
113
137 836.673,031.114
115
137 836.673,031.116
731,623.48 (6,318.46)150,825,971.117
118
119
120
731 623.48.(6,318.46)150,825,971.121
S t fO
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
aeo regonName of Respondent This Report Is:Date of Report Year of Report
f8I An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 25, 2005 Dec. 31 , 2004
GAS STORED (ACCOUNT 117,, 117.2, 117., 117.4. 164., 164.2, AND 164.
If durring the year adjustments were made to the stored gas inventory State in a footnote the basis of segregation of inventory between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions. Also state in a footnote the
inaccuracies of gas measurements), explain in a footnote the reason for method used to report storage (I.e. fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method).
charged or credited.
2 Report in column (e) all encroachments during the year upon the volumes
designated as base gas, column (b), and system balancing gas, column
( c ), and gas property recordable in the plant accounts.
(Account (Account Noncurrent (Account Current LNG LNG
ine Description 117.117.(Account 117.117.4)(Account 164.(Account 164.(Account 164.Total
No.(a)(b)(el (d)(e)(f)
(g)
(h)(i)Balance at Beqinninq of Year 283,577 204 357 487 934
Gas Delivered to Storage 430 430 430,430
Gas Withdrawn from Storage 391 186 391,186
Other Debits and Credits
Balance at End of Year 322,821 204 357 527 178
Dth 60,000 107 608 167,608
Amount Per Dekatherm $5.3804 $1.8991 $3.1453
State basis of segrega1ion of inventory between current and noncurrent portions:
Current portion is gas expected to be sold within a 24 month period. All other gas is considered non-current.
St t f 0
FERC FORM NO.2 (ED. 12-96)Page 220
a e 0 regon
Name of Respondent This R
rMort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission April 25, 2005 Dec. 31 2004
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added.The average number of
prescribed account, and manufactured gas revenues in tot~ customers means the average of twelve figures at the close
2. Natural gas means either natural gas unmixed or any of each month.
mixture of natural and manufactured gas.4. Report quantities of natural gas sold in Mcf (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F). If billings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate ac tents of the gas sold and the sales converted to Mcf.
counts;except that where separate meter readings 5. If increases decreases from previous year (col-
added for billing purposes, one customer should be counte umns (c),(e)and (g), are not derived from previously
OPERATING REVENUES
Line Title of Account Amount for
No.Amount for Year Previous Year
(a)(b)(e)
:: '::. ..'..:. .... .
GAS SERVICE REVENUES
(480) Residential Sales 51 ,206,457 39,788,372
(481) Commercial and Industrial Sales
Small (or Comm.) (See Instr. 6)28,000,286 662,420
Lar;;Je (or Ind.) (See Instr. 6)551 142 096,658
(482 Other Sales to Public Authorities
/484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers 83,757 885 547,450
\ 483) Sales for Resale
TOTAL Nat. Gas Service Revenues 83,757 885 547,450
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 83,757 885 547,450OTHER U, "-.." IIN~ Ht=Vt=I\jUE:::~
485 Intracompany Transfers
487 Forfeited Discounts
488 Misc. Service Revenues 104 716 69,845
489 Rev. from Trans. of Gas of Others 574 389 791 933
490 Sales of Prod. Ext. from Nat. Gas
491 Rev. from Nat. Gas Proc. by Others
492 Incidental Gasoline and Oil Sales
493 Rent from Gas Property 060
494 Interdepartmental Rents
495 Other Gas Revenues (39,289)(190,381)
TOTAL Other Operating Revenues 654 876 I 671 ,397
TOTAL Gas Operating Revenues 87,412 761 68,218,847
I(Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 87,412,761
::.::::: .::::::::
Provision for Refunds
. .,
Dis. Type Sales by States (lncl. Main Line 79,206,743
Sales to Resid. and Comm. Custrs.
Main Line Industrial Sales (Incl. Main 551,142
Line Sales to Pub. Authorities)
Sales for Resale
Other Sales to Pub. Auth. (Local Dist. Only)
Interdepartmental Sales
TOTAL (Same as Line 10, Columns (b and (d))83,757,885
St t f 0
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This ~ort Is:
(1) l2SJ An Original
Date of Report
(Mo, Da, Yr)
State of Ore on
Year of Report
Avista Corporation (2) D A Resubmission Dec. 31, 2004April 25, 2005
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6, Commercial and Industrial Sales, Account 481 , may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Met per year or approximately 800 Mcf
per day of normal requirements. (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote,
7. See page 108, Important Changes During Year,
for important new territory added and important rate increases
or decreases,
THERMS OF NATURAL GAS SOLD
Quantity forQuantity for Year Previous Year
177 703 2
177 703
FERC FORM NO.2 (ED. 12-86)
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
506,529
506 529
87,447
87,447
892 8
892
NOTES
(1) Includes $1,495 740 unbilled revenues,
(2) Includes (191 235) therms relating to unbilled revenues,
Page 301
State of Oregon
Name of Respondent This R~ort Is:Date of Report Year of Report(l ) An Original (Mo, Da. Yr)
A vista Corp.(2)A Resubffilssion April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous vear is not derived from previously reported fi~res, explain in footnotes,
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
1. PRODUCTION EXPENSES
A, Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
8. Natural Gas Production
81, Natural Gas Production and Gathering
. ,.;.,.:".::: .
Operation
750 Operation Supervision and Eni!ineerini!
751 Production Maps and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Expenses
755 Field Compressor Station Fuel and Power
756 Field Measurini! and Re!!Ulating Station Expenses
757 Purification Expenses
758 Gas Well Royalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance Y:.T ~CC~
,:: .,.. ,.
761 Maintenance Supervision and Eni!ineerini!
762 Maintenance of Structures and Improvements
763 Maintenance of Producini! Gas Wells
764 Maintenance of Field Lines
765 Maintenance of Field Compressor Station Equipment
766 Maintenance of Field Meas, and Reg, Sta. Equipment
767 Maintenance of Purification Eauipment
768 Maintenance of Drillini! and Cleanini! Eauipment
769 Maintenance of Other Eauipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gatherini! (Total of lines 18 and 29)
82. Products Extraction
-,-
Operation
. . :. . '
770 Operation Supervision and Eni!ineerini!
771 Operation Labor
772 Gas Shrinkai!e
773 Fuel
774 Power
775 Materials
776 Operation Supplies and Expenses
777 Gas Processed by Others
778 Royalties on Products Extracted
779 Marketini! Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used by the Utility-Credit
783 Rents
TOTAL Operation (Enter Total of Lines 33 thru 46)
FERC FORM NO.2 (ED 12-88)Page 320
State of Oregon
Name of Respondent This R~rt Is:Date of Report Year of Report(1) X An Original (Mo. Da. Yr)
Avista Corp.(2)A Resubmission April 25. 2005 December 31,2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
B2. Products Extraction (Continued)r:(i .
/ ...'.,.....,.,
Maintenance
". .. ., .,..
784 Maintenance Supervision and Engineering
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refining EQuipment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storage Eauioment
789 Maintenance of Compressor Eauioment
790 Maintenance of Gas Measuring and Reg, EQuipment
791 Maintenance of Other EQuipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C. Exploration and Develooment
Operation
. .
795 Delay Rentals
796 Nonproductive Well Drilling
797 Abandoned Leases
798 Other Exoloration
TOTAL Exploration and Development (Enter Total of lines 61 thru 64)
D. Other Gas Suoolv Exoenses
( .
Operation I, .
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases. Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Transmission Line Purchases
804 Natural Gas City Gate Purchases 59,463,988 40,098,422
804.1 Liquefied Natural Gas Purchases
805 Other Gas Purchases (4,062.980)150,713
(Less) 805.1 Purchased Gas Cost Adjustments 694,448
../..''. ....'. .
TOTAL Purchased Gas (Enter Total of lines 67 to 76)55,401,008 45,943,583
806 Exchange Gas
Purchased Gas Expenses
.'... ,. .
807.1 Well Expenses-Purchased Gas
807.2 Operation of Purchased Gas Measuring Stations
807.3 Maintenance of Purchased Gas Measuring Stations
807.4 Purchased Gas Calculations Expenses 88,839 60.917
807.5 Other Purchased Gas Expenses 26.123
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)88,839 87,040
808.1 Gas Withdrawn from Storage-Debit
(Less) 808.2 Gas Delivered to Storage-Credit
809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit
(Less) 809.2 Deliveries of Natural Gas for Processing-Credit
Gas Used in Utility Operations-Credit
. '. .
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utility Operations-Credit
TOTAL Gas Used in Utility Ooerations-Credit (Total of lines 91 thru 93)
813 Other Gas Supply Expenses 110,063 87,146
TOTAL Other Gas Supply Exp (Total of lines 77.78.85,86 thru 89,94.95)55,599.910 46,117.769
TOTAL Production Expenses (Enter Total of lines 3,30,58,65, and 96)55.599,910 46,117,769
FERC FORM NO.2 (ED 12-88)Page 321
State of Oregon
Name of Respondent This R
iIDort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25, 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A. Under~round Storage Exoenses
100 Operation
814 Operation Supervision and Engineering
102 815 Maps and Records
103 816 Wells Expenses
104 817 Lines Expense
105 818 Compressor Station Expenses
106 819 Compressor Station Fuel and Power
107 820 Measurin~ and Re,gulatin~ Station Exoenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
111 824 Other Expenses
112 825 Storage Well Royalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 101 thm 113)
115 Maintenance
:".\\...".,. .,..
116 830 Maintenance Supervision and Engineering
117 831 Maintenance of Structures and Imorovements
118 832 Maintenance of Reservoirs and Wells
119 833 Maintenance of Lines
120 834 Maintenance of Compressor Station Eauioment
121 835 Maintenance of Measuring and Regulating Station Eauipment
122 836 Maintenance of Purification Eauioment
123 837 Maintenance of Other Equioment
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)
125 TOTAL Under.ground Storage Expenses (Total of lines 114 and 124)
126 B. Other Storage Exoenses
127 Operation
128 840 Operation Supervision and Engineering
129 841 Operation Labor and Expenses
130 842 Rents
131 842.1 Fuel
132 842.2 Power
133 842.3 Gas Losses
134 TOTAL Operation (Enter Total of lines 128 thm 133)
135 Maintenance
.. .' ..".'..,.,:::....
136 843.1 Maintenance Supervision and Engineering
137 843,2 Maintenance of Structures and Improvements
138 843.3 Maintenance of Gas Holders
139 843,4 Maintenance of Purification I~uipment
140 843.5 Maintenance of liquefaction Eauioment
141 843.6 Maintenance of Vaporizing EQuioment
142 843.7 Maintenance of Compressor ~uioment
143 843.8 Maintenance of Measuring and Regulating EQuioment
144 843.9 Maintenance of Other Equioment
145 TOTAL Maintenance (Enter Total oflines 136 thru 144)
146 TOTAL Other Storage Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
State of Oregon
Name of Respondent This R~rt Is:Date of Report Year of Report(l) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
147 C. Liquefied Natural Gas Terminaling and Processing Expenses
,:..".,..: .::,,'".": ., ., ..
148 Operation I .
. .
149 844.1 Operation Supervision and Engineering
150 844.2 LNG Processing Tenninal Labor and Expenses
151 844.3 Liquefaction Processing Labor and Expenses
152 844.4 Liquefaction Transportation Labor and Expenses
153 844.5 Measuring and Regulating Labor and Expenses
154 844.6 Compressor Station Labor and Expenses
155 844.7 Communication System Expenses
156 844.8 System Control and Load Dispatching
157 845,1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurrage Charges
161 (Less) 845,5 Wharfage Receipts-Credit
162 845,6 Processing Liquefied or Vaporized Gas by Others
163 846.1 Gas Losses
164 846.2 Other Expenses
165 TOTAL Operation (Enter Total of lines 149 thru 164)
166 Maintenance
.". .. '.. .
167 847.1 Maintenance Supervision and Engineering
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processing Tenninal EQuipment
170 847,4 Maintenance of LNG Transportation EQuipment
171 847.5 Maintenance of Measuring and Regulating EQuipment
172 847.6 Miantenance of Compressor Station EQuipment
173 847.7 Maintenance of Communication EQuipment
174 847.8 Maintenance of Other EQuipment
175 TOTAL Maintenance (Enter Total oflines 167 thru 174)
176 TOTAL Liquefied Nat Gas Tenninaling and Processing Exp (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125, 146, and 176)
178 3. TRANSMISSION EXPENSES o;:;'
;:':. ., : .:' .'..
179 Operation
:'.. ,. .
180 850 Operation Supervision and Engineering
181 851 System Control and Load Dispatching
182 852 Communication System Expenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for Compressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measuring and Regulating Station Expenses
188 858 Transmission and Compression of Gas by Others
189 859 Other Expenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)
FERC FORM NO.2 (ED 12-88)Page 323
State of Oregon
Name of Respondent This R
iIDort Is:
Date of Report Year of Report(I) X An Original (Mo, Oa, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
3, TRANSMISSION EXPENSES (Continued)
192 Maintenance
...; ..'.
193 861 Maintenance Supervision and Em~ineerine:
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station EQuipment
197 865 Maintenance of Measurin~ and Re~. Station EQuipment
198 866 Maintenance of Communication EQuipment 777
199 867 Maintenance of Other Eauioment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)777
201 TOTAL Transmission Expenses (Enter Total of lines 191 and 200)777
202 4, DISTRIBUTION EXPENSES
.,.
203 Operation
204 870 Operation Supervision and En~ineerin~307,024 136,047
205 871 Distribution Load Dispatching
206 872 Compressor Station Labor and Expenses
207 873 Compressor Station Fuel and Power
208 874 Mains and Services Exoenses 807,426 916,874
209 875 Measurin~ and Ree:ulatine: Station Expenses-General 17,589 348
210 876 Measurin~ and Ree:ulatine: Station Expenses-Industrial
211 877 Measurine: and Ree:ulatin~ Station Expenses-Citv Gate Check Station 986 238
212 878 Meter and House Ree:ulator Expenses 473,370 447,096
213 879 Customer Installations Exoenses 994 232 72\,700
214 880 Other Expenses 406,986 347,980
215 881 Rents 13,432 61,294
216 TOTAL Operation (Enter Total of lines 204 thru 215)0\7,073 639,652
217 Maintenance
, ,..
218 885 Maintenance Supervision and En~ineerin~106,058 33,94\
219 886 Maintenance of Structures and Improvements
220 887 Maintenance of Mains 160,270 340,165
221 888 Maintenance of Compressor Station EJuioment
222 889 Maintenance of Meas. and Re~. Sta. ECluio.General 155,135 133,65\
223 890 Maintenance of Meas, and Re~. Sta. ECluip.Industrial 38,500 25,874
224 891 Maintenance of Meas, and Re~. Sta. E~uip.City Gate Check Station 857 884
225 892 Maintenance of Services \98,113 92,96\
226 893 Maintenance of Meters and House Ree:u1ators 19\,655 123,943
227 894 Maintenance of Other Eauioment 65,339 29,44\
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)918,927 782,859
229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)936,000 3,422,511
230 5, CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 23,798 18,437
233 902 Meter Readine: Exoenses 491,161 466,423
234 903 Customer Records and Collection Exoenses 816,144 617,268
235 904 Uncollectible Accounts 320,880 632,452
236 905 Miscellaneous Customer Accounts Expenses 66,360 109,287
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)718,343 843,867
FERC FORM NO.2 (ED 12-88)Page 324
State of Oregon
Name of Respondent This R
ooort Is:
Date of Report Year of Report
(1 ) An Original (Mo. Da. Yr)
Avista Corp.(2)A Resubnussion April 25, 2005 December 3 I. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported fi,gures, explain in footnotes,
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)(b)(c)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
..'
239 Operation
:.. ..,.
240 907 Supervision
241 908 Customer Assistance Expenses 691,389 486,756
242 909 Infonnational and Instructional Expenses 49,003 34,353
243 910 Miscellaneous Customer Service and Infonnational Expenses
244 TOTAL Customer Service and Infonnation Expenses (Lines 240 thru 243)740,392 521,109
245 7. SALES EXPENSES
,. :::. .
246 Operation
......:;.:..:.'
247 911 Supervision
248 912 Demonstratin~ and Selling Expenses 100,071 94,327
249 913 Advertisin~ Expenses 657
250 916 Miscellaneous Sales Expenses 503 15,540
251 TOTAL Sales Expenses (Enter Total of lines 247 thru 250)110,231 109,867
252 8, ADMINISTRATIVE AND GENERAL EXPENSES
. .. .: .
253 Operation
,:.. :......;:.
I:.
254 920 Administrative and Genercll Salaries 803,385 566,722
255 921 Office Supplies and Expenses 717,726 681.184
256 (Less) (922) Administrative Expenses Transferred-Cr,
257 923 Outside Services Employed 944 572 984,296
258 924 Property Insurance 80,064 68,155
259 925 Injuries and Damages 461,626 232,245
260 926 Employee Pensions and Benefits 185,749 122,037
261 927 Franchise ReQuirements
262 928 Regulartorv Commission Expenses 330,022 405,783
263 (Less) (929) Duplicate Charges-Cr,
264 930.1 General Advertising Expenses
265 930.2 Miscellaneous General ExDenses 317,568 245,864
266 931 Rents 498,988 658,461
267 TOTAL Operation (Enter Total of lines 254 thru 266)339,700 964,746
268 Maintenance
. .:;....: .,:.... .
269 935 Maintenance of General Plant 201,222 197,748
270 TOTAL Administrative and General EXD (Total of lines 267 and 269)540,922 162,494
271 TOTAL Gas O. and M. Exp (Lines 97,177,201,229,237,244 251,and 270)69,645,798 58,175,839
NUMBER OF GAS DEPARTMENT EMPLOYEES
I, The data on number of employees should be reported construction employees in a foonote.
for the payroll period ending nearest to October 31, or 3. The number of employees assignable to the gas
any payroll period ending 60 days before or after Octo- department from joint function of combination utilitiesher 31. may be detennined by estimate, on the basis of employee
2, If the respondent's payroll for the reporting period equivalents. Show the estimated number of equivalent
includes any special constrction personnel, include such employees attributed to the gas department from joint
em 10 ees on line 3, and show the number of such s ecial functions.
I, Pa roll Period Ended ate December 31, 2004
2. Total Re lar Full-Time Em 10 ees
3. Total Part-Time and Tem 0 Em 10 res allocation of Genercll Em 10 ees
4. Total Em 10 ees
129
152
FERC FORM NO.2 (ED 12-88)Page 325
tate of ree:on
Name of Respondent This ~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubnussion April 25, 2005 Dec. 31, 2004
TRANSMISSION MAINS
Show particulars Called for Concerning Transmission Mains*
Total Length in Taken up or Total Length
dne Kind of Material Diameter of Use Beginning of Laid During Abandoned During in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
(a)(b)(c)(d)(e)
Steel Coated Over 4" through 1 332,640 332,640
Steel Coated 4" or Less 26,400 5280 21, 120
TOTALS 359,040 353,760
* Show separately and identify lines held under a title other than full ownership.
FERC FORM NO.2 (ED 12-87)Page 514
Name of Respondent
Avista Corp.
L..ine Kind of Material
No.
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
This Report Is:(1) An Original
(2) A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo, Da, Yr)
April 25, 2005
State of Oregon
Year of Report
Dec. 31, 2004
Show Particulars Called for Concerning Distribution MainsTotal Length in I Taken up or
Use Beginning of Laid During Abandoned Durin(Year, Feet Year, Feet Year, Feet(c) (d) (e)724,480 5,280
828,960
422,400
15,840
Diameter of
Pipe, Inches
(b)
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
Plastic
Plastic
1 0 Plastic
11 Plastic
12 Plastic
19 Change in footage relects additions net of retirements.
TOT ALS
FERC FORM NO.
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
4,408,800
733,920
58,080
192,480
Page 514-
280
242,880
21 ,120
269,280 280
Total Length
in Use End
of Year, Feet
(f)
719,200
828,960
427,680
15,840
651 680
755,040
58,080
9,456,480
aeo regon
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 25, 2005 Dec. 31, 2004
SERVICE PI PES GAS
Show the particulars called for concernin~ the line service pipe in possession of the respondent at the close of the
Number at Number umber Removed Number Average
Line Type Diameter Beginning Added or Abandoned at Close length
No.in Inches of Year During Year During Year of Year in Feet
(a)fb)fe)(d)(e)(f)
(g)
Steel Wrapped 11 or Less . 32,082 32,123 Not
Steel Wrapped 111 thru 2"556 473 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic l' or less 62,022 915 64,937
Plastic 111 thru 2"1,419 401 820
Plastic 2" thru 411
Plastic 4" thru 8"
Plastic Over 8"
Number added is net of retirements
TOTALS 96,179 358 99,452
St t f 0
FERC FORM NO.Page 514-
State of Oreoon~F"
Name of Respondent This R
rRJOTt Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25, 2005 Dec. 31, 2004
CUSTOMER'S METERS
Owned
Line Size Type Make Capacity Begmning Added Retired Owned
No.of Year During Year During Year End of Year
(a)(b)(c)(d)(e)(f)(J!)(h)
Detailed information not available.
TOTAL 96,940 845 257 102,528
FERC FORM NO.Page 514-
aeo recon
Name of Respondent This Report Is:Date of Report Year of Report
An Original (Mo, Da, Yr)
Avista Corporation A Resubmisslon April 25, 2005 Dec. 31, 2004
GAS ACCOUNT - NATURAL GAS
The purpose of this schedule is to account for the quality or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilities, but not through any
Natural gas means either natural gas unmixed or any of the interstate portion of the reporting pipeline, and (3) the gathering
mixture of natural and manufactured gas.line quanities that were not destined for interstate market or that were
Enter in column ( c) the Dth as reported in the not transported through any interstate portion of the reporting
schedules indicated for the items of receipts and pipeline.
deliveries.7 Also indicate in a footnote (1) the system supply quanitities of gas
Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeline, during the reporting year and
and transportation gas and specify the line on which also reported as sales, transportation, and compression volumes by
such quantities are listed.the reporting pipeline during the same reporting year, (2) the system
If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline during
are not interconnected, submit separate pages for this the reporting year which the reporting pipeline intends to sell or
purpose. Use copies of pages 520,transport in a future reporting year, and (3) contract storage
Also indicate by footnote the quantities of gas not subject quanitities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the company's total sales figure and the company
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14,02, etc.
pipeline (2) the quanties the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
Line Ref.
No.Item Page No.Amount of Dth (1)
(a)(b)(c)
GAS RECEIVED
Gas Purchases (Accounts 800-805)8,415,310
Gas of Others Received for Gatherinc (Account 489.303
Gas of Others Received for Transmission (489.305 017,422
Gas of Others Received for Distribution (Account 489.301
Gas of Others Received for Contract Storace (Account 489.307
Exchanced Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts pf Respondent's Gas Transported bv Others (Account 858)332
Other Gas Withdrawn from Storace (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (Specify):
Total Receipts (Total lines 3 thru 14.13,432 732
GAS DEL. Y '-lieU
Gas Sales (Accounts 480 - 484)8,417,770
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305 017,422
Deliveries of Gas Distributed for Others (Account 489.301
Deliveries of Contract Storage Gas (Account 489.307
Exchange Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328
Deliveries of Gas to Others for Transportation (Account 858)332
Other Gas Delivered to Storage (Explain)
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale
Total Deliveries (Total lines 17 thru 27.13,435,192
GAS UNAr:r:r 11 IN I eU FOR
Production System Losses
Gathering System Losses
Transmission System Losses
Distribution System Losses (2,460
Storace System Losses
Other Losses (Specify)
Total Unaccounted For (Total lines 30 thru 35)(2,460
Total Deliveries & Unaccounted For (Total lines 28 thru 36)13,432 732
St t
FERC FORM NO.2 (ED. 12-96)Page 520
This Page Intentionally Left Blank
Name of Respondent This R~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of California
Year of Report
A vista Corp (2) D A Resubmission Apri125, 2005 Dec. 31 2004
ST ATEl\1ENT OF INCOl\1E 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 depart-
ment. Spread the amount(s) over lines 01 thru 20 as ap-
propriate. Include these amounts in columns (c) and (d)
totals.
2. Report amounts in account 414, Other Utility Operating
Income, in the same manner as accounts 412 and413 above,
3. Report data for lines 7 , and 10 for Natural Gas com-
panies using accounts 404., 404.2, 404., 407., and
407.
4. Use page 122 for important notes regarding the state-
ment of income or an account thereof,
line
No.
Account
TOTAL Utility Operating Expenses
(Enter Total of lines 4 tbru 18)
Net Utility Operating Income (Enter Total of
line 21ess 19) (Carry forward to page 117
line 21)
(Ref.
Page
No.
5. Give concise explanations concerning unsettled rate
proceedings where a contingency exists such that refunds
of a. material amount may need to be made to the utility
customers or which may result in a material refund to the
utility with respect to power or gas purchases, State for each
year affected the gross revenues or costs to which the con-
tingency relates and the tax effects together with an expIa-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amounts paid with respect
to power and gas purchases,
6, Give concise explanations concerning significant
amounts of any refunds made or received during the year
TOT AL
Current Year Previous Year
Page 114
! :i:!:!IiIi:i:i:!:i:! ;i:i:i:: :Wi li:!:!:i:!Ii Ii;!:!:!:!:!:::!:!:!:i:i:!:!:i:i:!:!:!:i:i :!:!:j:i1:!:J:H:!:i:!:!:i:m:iVIHi:Wj:Wi:!:itj:j:jI! :::!:i :i:j:j:j:ii:!Ii:!:!:!:!:W!:!:i:J:i:i:!:i:!IiIW!:;1
$20 682 299 $17 571 796
300-301
320-325
320-325
336-338
336-338
336-338
262-263
262-263
262-263
234 272-277
234 272-277
266
Note: (1) Infotmation other than operating revenue not available by state.
FERC FORM NO.2 (REVISED 12-96)
Name of Respondent This R~ort Is:
(1 ) l29 An Original
Date of Report
(Mo, Da, Yr)
State of California
Year of Report
A vista Corp (2)A Resubmission Dec. 31, 2004April 25, 2005
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs. incuJTed for power or gas pur-
chases, and a summary of the adjustments made to balance
sheet, income, and expense accounts.
7. If any notes appearing in the report to stockholders are
applicable to this Statement of Income, such notes may be at-
tached at page 122.
8. Enter on page 122 a consise explanation of only those
changes in accounting methods made during the year which
ELECTRIC UTILITYCurrent Year Previous Year
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 foonote if the previous years figures are
different from that reported in prior reports.
10. If the columns are insufficient for reporting additional
utility departments, supply the appropriate account titles, lines
1 to 19, and report the information in the blank space on page
122 or in a supplemental statement.
GAS UTILITYCurrent Year Previous Year Line
No.
OTHER UTll..ITY
Current Year Previous Year
$20 682 299
FERC FORM NO.2 (REVISED 12-96)
$17 571 796
Page 115
Avista Corp.
State of California
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 25, 2005 Dec. 31, 2004
Name of Respondent
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106
1. Report below the original cost of gas plant in service according to estimated basis if necessary, and include the entries in column (c).the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 101, Gas Plant in Service (Classified), this distributions of prior year reported in column (b). likewise, if the
page and the next include Account 102 Gas Plant Purchased or respondent has a significant amount of plant retirements which have
Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the account for
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year's unclassifiedindicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 Or anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
TOTAL Intan ible Plant Enter Total of lines 2 thru 4
PRODUCTION PLANT
592.
592.
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
FERC FORM NO.2 (ED. 12-96)Page 204
State of California
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 , 2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (1) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions of respondentis reported amount for account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (1) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (1) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 192, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed journal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Line
No.
592.
592.
Page 205FERC FORM NO.2 (ED. 12-96)
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31 , 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
346 Gas Measuring and Regulating EQuipment
347 Other EQuipment
TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)
TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)
Manufactured Gas Production Plant (Submit Supplementary Statement)
TOTAL Production Plant (Enter Total of lines 37 and 38)
NATURAL GAS STORAGE AND PROCESSING PLANT
Underground Storage Plant
350.1 Land
350,2 Rights-of-Way
351 Structures and Improvements
352 Wells
352.1 Storage Leaseholds and Rights
352.2 Reservoirs
352.3 Non-recoverable Natural Gas
353 Lines
354 Compressor Station EQuipment
355 Measuring and Regulating EQuipment
356 Purification EQuipment
357 Other EQuipment
TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification EQuipment
363.1 liQuefaction EQuipment
363.2 Vaporizing EQuipment
363.3 Compressor EQuipment
363.4 Measuring and Regulating EQuipment
363.5 Other EQuipment
TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)
Base Load liQuefied Natural Gas Terminaling and Processing Plant
364.1 Land and Land Rights
364.2 Structures and Improvements
364.3 LNG Processing Terminal EQuipment
364.4 LNG Transporation EQuipment
364.5 Measuring and Regulating EQuipment
364.6 Compressor Station EQuipment
364.7 Communications EQuipment
364.8 Other EQuipment
TOTAL Base Load Liq Nat'l Gas, Terminal and Processing Plant (lines 67-74)
TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54,65 and 75)
TRANSMISSION PLANT
365.1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
State of California
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101 , 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)
(g)
No.
State of California
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent
Avista Corp.
This report is:
( X) An Original
) A Resubmission
Date of Report
(Mo, Da, Yr)
April 25, 2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Line
No.81 367 Mains82 368 Compressor Station Equipment83 369 Measuring and Regulating Equipment84 370 Communications Equipment85 371 Other Equipment86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)87 DISTRIBUTION PLANT88 374 Land and Land Rights89 375 Structures and Improvements90 376 Mains91 377 Compressor Station Equipment92 378 Measuring and Regulating Equipment-General93 379 Measuring and Regulating Equipment-City Gate94 380 Services95 381 Meters96 382 Meter Installations97 383 House Regulators98 384 House Regulator Installations99 385 Industrial Measuring and Regulating Station Equipment
1 00 386 Other Property on Customers' Premises
101 386 Other Equipment102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)103 GENERAL PLANT
104 389 Land and Land Rights
105 390 Structures and Improvements
106 391 Office Furniture and Equipment
1 07 392 Transportation Equipment
1 08 393 Stores Equipment
109 394 Tools, Shop, and Garage Equipment
110 395 Laboratory Equipment
111 396 Power Operated Equipment
112 397 Communication Equipment
113 398 Miscellaneous Equipment114 Subtotal (Enter Totals of lines 104 thru 113)
115 399 Other Tangible Property 116 TOTAL General Plant (Enter Totals of lines 114 and 115)117 TOTAL (Accounts 101 and 106)118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction 8)120 Experimental Gas Plant Unclassified121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120
Account
(a)
FERC FORM NO.2 (ED. 12-96)Page 208
Balance at
Beginning of Year
(b)
160.
10,098,586.
30,750.
55,039.
191,777.
507,735.
18,036.
19,902,084.
69,136.
189,942.
115,775.
611.
209,137.
33,109.
55,892.
21 ,548.
139.
698,292.
698,292.
20,601 ,969.
20,601,969.
State of California
Year Ending
Dec. 31, 2004
Additions
(c)
28,248.
296,131.
33,284.
357,663.
357,663.
357,663.
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)No.
160.
10,126,834.
30,750.
55,039.
7,487,908.
541,019.
18,036.
100
101
20,259,748.102
103
69,136.104
189,942.105
106
115,775.107
611.108
153,640.55,496.109
561.32,547.110
55,892.111
21,548.112
831.308.113
156,033.542 258.114
115
156 033.542,258.116
156,033.20,803,599.117
118
119
120
156,033.20,803,599.121
State of California
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
Name of Respondent This Report Is:Date of Report Year of Report
181 An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 25, 2005 Dec. 31, 2004
GAS STORED (ACCOUNT 117., 117., 117.3. 117.4, 164,1, 164.2, AND 164.
If durring the year adjustments were made to the stored gas inventory State in a footnote the basis of segregation of inventory between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions. Also state in a footnote the
inaccuracies of gas measurements), explain in a footnote the reason for method used to report storage (I.e. fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method).
charged or credited.
2 Report in column (e) all encroachments during the year upon the volumes
designated as base gas, column (b), and system balancing gas, column
( c ), and gas property recordable in the plant accounts.
(Account (Account Noncurrent (Account Current LNG LNG
jt-ine Description 117.117.(Account 117.117.(Account 164.(Account 164.(Account 164.Total
No.(a)(b)(e)(d)(e)(f)fa)fh)(i)
Balance at BeClinninQ of Year 251 688 251,688
Gas Delivered to Storaae 338,195 338,195
Gas Withdrawn from Storage 237,996 237 996
Other Debits and Credits 433 433)
Balance at End of Year 342,454 342,454
Dth 939 939
Amount Per Dekatherm $4.8965 $4.8965
State basis of segregation of inventory between current and noncurrent portions:
Current portion IS gas expected to be sold within a 24 month period.All other gas is considered non-current.
State of California
FERC FORM NO.2 (ED. 12-96)Page 220
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission April 25, 2005 Dec. 31, 2004
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added.The average number of
prescribed account, and manufactured gas revenues in total.customers means the average of twelve figures at the close
2. Natural gas means either natural gas unmixed or any of each month.
mixture of natural and manufactured gas.4, Report quantities of natural gas sold in Mcf (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F), If billings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate ac-tents of the gas sold and the sales converted to Mcf.
counts; except that where separate meter readings are 5. If increases decreases from previous year (col-
added for billing purposes, one customer should be counted umns (c),(e)and (g), are not derived from previously
OPERATING REVENUES
Line Title of Account Amount for
No.Amount for Year Previous Year
(a)(b)(e)
GAS SERVICE REVENUES I:.
. .. .::'...:::. .
(480) Residential Sales 648,203 874 038(481) Commercial and Industrial Sales
: .
Small (or Comm.) (See Instr. 6)798,135 224,492
Lar~e (or Ind.) (See Instr. 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers 20,446,338 17,098,530
1(483 Sales for Resale
TOTAL Nat. Gas Service Revenues 20,446,338 098,530Revenues from Manufactured Gas
TOTAL Gas Service Revenues 20,446,338 098,530U I Ht:.H U ~"" IIN~ Ht:.Vt:.NUt:.~
485 Intracompany Transfers
487 Forfeited Discounts
488 Misc. Service Revenues 155,760 138,251489Rev. from Trans. of Gas of Others 148,191 123,453490Sales of Prod. Ext. from Nat. Gas
491 Rev. from Nat. Gas Proc. by Others
492 Incidental Gasoline and Oil Sales
493 Rent from Gas Property
494 Interdepartmental Rents
495 Other Gas Revenues (67,990)211,562TOTAL Other Operating Revenues 235,961 473,266TOTAL Gas Operating Revenues 682 299 571 796(Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 20,682,299
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line 20,446,338
: :
Sales to Resid. and Comm. Custrs.
: .::'
Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authorities)
Sales for Resale
Other Sales to Pub. Auth. (Local Dist. Only)
Interdepartmental Sales
:::.
TOTAL (Same as Line 10, Columns (b) and (d))20,446,338
':. .. :...... .. .
State of California
FERC FORM NO.2 (ED. 12-86)Page 300
State of California
Year of ReportName of Respondent This ~ort Is:
(1) l!9 An Original
Date of Report
(Mo, Da, Yr)
(2) D A ResubmissionAvista Corporation April 25, 2005 Dec. 31 , 2004
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Account 481 , may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mcf per year or approximately 800 Mcf
per day of normal requirements, (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.
7. See page 108, Important Changes During Year,
for important new territory added and important rate increases
or decreases.
THERMS OF NATURAL GAS SOLD
Quantity forQuantity for Year Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
989 827 2
989 827
21,043,060
043,060
18,575
18,575
18,406
18,406
NOTES
(1) Includes $425,454 unbilled revenues.
(2) Includes 603 523 therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of California
Name of Respondent This R
l8iort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp,(2)A Resubmission April 25. 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures. explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
1. PRODUCTION EXPENSES
...
. d
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natural Gas Production
B 1. Natural Gas Production and Gatherine:
Operation
750 Operation Supervision and En.e:ineerin.e:
751 Production Maps and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Expenses
755 Field Compressor Station Fuel and Power
756 Field Measuring and Regulatine: Station Expenses
757 Purification Expenses
758 Gas Well Royalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance i,.
' .' ... . .
761 Maintenance Supervision and En.e:ineerin.e:
762 Maintenance of Structures and Improvements
763 Maintenance of Producin.e: Gas Wells
764 Maintenance of Field Lines
765 Maintenance of Field Compressor Station Eauipment
766 Maintenance of Field Meas. and Re.e:o Sta. Eauipment767 Maintenance of Purification EQuipment
768 Maintenance of Drillin.e: and Cleanin.e: EQuipment
769 Maintenance of Other EQuipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gatherinl! (Total of lines 18 and 29)
B2. Products Extraction
Operation
770 Operation Supervision and Ene:ineerin.e:
771 Operation Labor
772 Gas Shrinkage
773 Fuel
774 Power
775 Materials
776 Operation Supplies and Exnenses
777 Gas Processed by Others
778 Royalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used by the Utility-Credit
783 Rents
TOTAL Operation (Enter Total of Lines 33 thru 46)
FERC FORM NO.2 (ED 12-88)Page 320
State of California
Name of Respondent This R~On Is:Date of Repon Year of Repot1(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(e)
B2. Products Extraction (Continued)~c,- n :c-:
. "
Maintenance
784 Maintenance Supervision and En~ineerin~
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refinin~ EQuipment
787 Maintenance of Pine Lines
788 Maintenance of Extracted Products Storage Eauipment
789 Maintenance of Compressor EQuipment
790 Maintenance of Gas Measurin~ and ReI!:. EQuipment
791 Maintenance of Other EQuipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C, Exploration and Development '3",.
"., .". .':"",.
3'.
::::
Operation
. .. ., .. .,..' "::
795 Delav Rentals
796 Nonproductive Well DriIlinl!:
797 Abandoned Leases
798 Other Exploration
TOTAL Exploration and Development (Enter Total of lines 61 thru 64)
D. Other Gas Supply Exoenses
\~.::..::., :.
'OPeration
...'.:.. :.. .. .
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases, Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Trmsmission Line Purchases
804 Natural Gas City Gate Purchases 16,332,436 14,640,607
804.1 LiQuefied Natural Gas Purchases
805 Other Gas Purchases - 7 ,057
(Less) 805.1 Purchased Gas Cost Adjustments 379.804
TOTAL Purchased Gas (Enter Total of lines 67 to 76)16,325,379 15,020,411
806 Exchanl!:e Gas
Purchased Gas Expenses
,':.. . . ':. .., ....':: ,.
807.1 Well Exoenses-Purchased Gas
807.2 Operation of Purchased Gas Measuring Stations
807.3 Maintenance of Purchased Gas Measuring Stations
807.4 Purchased Gas Calculations Exoenses 15,757 II ,096
807.5 Other Purchased Gas Exoenses 759
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)15,757 15,855
808.1 Gas Withdrawn from Stora~e-Debit (113,552)
(Less) 808,2 Gas Delivered to Storage-Credit 83,689 181,476
809.1 Withdrawals of LiQuefied Natural Gas for Processing-Debit
(Less) 809.2 Deliveries of Natural Gas for Processinl!:-Credit
Gas Used in Utility Operations-Credit
. ,
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utili tv Ooerations-Credit
TOTAL Gas Used in Utilitv OPerations-Credit (Total of lines 91 thru 93)
813 Other Gas Supply Exoenses 18,801 14,564
TOTAL Other Gas Supply Exp (Total of lines 77,78,85,86 thru 89,94,95)16,276,248 15,1l8,754
TOTAL Production Exoenses (Enter Total of lines 3,30,58,65, and 96)16,276,248 15,118,754
FERC FORM NO.2 (ED 12-88)Page 321
State of California
Name of Respondent This R
ooort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.fa)(b)(c)
2. NATURAL GAS STORAGE, TERMINALING AND
; .,. ,' .'.".
PROCESSING EXPENSES
A. Undere:round Storage Expenses
, .::,;.,:.',...'
100 Operation
,..
101 814 Operation Supervision and Engineerine:
102 815 Maps and Records
103 816 Wells Expenses
104 817 Lines Expense
105 818 Compressor Station Expenses
106 819 Compressor Station Fuel and Power
107 820 Measurine: and Ree:ulatine: Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
111 824 Other Expenses
112 825 Storage Well Rovalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 101 thru 113)
115 Maintenance
.,.. .
116 830 Maintenance Supervision and Ene:ineerine:
117 831 Maintenance of Structures and Improvements
118 832 Maintenance of Reservoirs and Wells
119 833 Maintenance of Lines
120 834 Maintenance of Compressor Station Equipment
121 835 Maintenance of Measurine: and Regulatine: Station Equipment
122 836 Maintenance of Purification EQuipment
123 837 Maintenance of Other Equipment
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)
125 TOTAL Underground Storae:e Expenses (Total of lines 114 and 124)
126 B, Other Storage Expenses
"..... '.'..,....:. ... .'..."..:.;':'.',.',.
127 Operation
128 840 Operation Supervision and Engineerine:
129 841 Operation Labor and Expenses
130 842 Rents
131 842.1 Fuel
132 842.2 Power
133 842.3 Gas Losses
134 TOTAL Operation renter Total of lines 128 thru 133)
135 Maintenance
:... ,. .. ..
136 843.1 Maintenance Sunervision and Engineering
137 843,2 Maintenance of Structures and Improvements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification Equipment
140 843.5 Maintenance of liQuefaction Equipment
141 843,6 Maintenance of Vaporizing EQuipment
142 843.7 Maintenance of Compressor EQuipment
143 843.8 Maintenance of Measurine: and Regulating EQuipment
144 843.9 Maintenance of Other EQuipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Storae:e Exoenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
State of California
Name of Respondent This R
ooort Is:
Date of Report Year of Report(1) X An Original (Mo. Da. Yr)
A vista Corp.(2)A Resubmission April 25. 2005 December 31. 2004
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
147 C. liquefied Natural Gas Terminaling and Processing Expenses
148 Operation
149 844,1 Operation Supervision and Engineering
150 844,2 LNG Processing Terminal Labor and Expenses
151 844,3 Liquefaction Processing Labor and Expenses
152 844.4 Liquefaction Transportation Labor and Expenses
153 844.5 Measuring and Regulating Labor and Expenses
154 844,6 Compressor Station Labor and Expenses
155 844,7 Communication System Expenses
156 844,8 System Control and Load Dispatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurrage Charges
161 (Less) 845.5 Wharfage Receipts-Credit
162 845.6 Processing liquefied or Vaporized Gas by Others
163 846.1 Gas Losses
164 846.2 Other Expenses
165 TOTAL Operation (Enter Total of lines 149 thru 164)
166 Maintenance
. .. ... ,
167 847.1 Maintenance Supervision and Engineering
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processing Terminal Equipment
170 847.4 Maintenance of LNG Transportation Equipment
171 847.5 Maintenance of Measuring and Regulating Equipment
172 847.6 Miantenance of Compressor Station Equipment
173 847.7 Maintenance of Communication Equipment
174 847.8 Maintenance of Other Equipment
175 TOTAL Maintenance (Enter Total of lines 167 thru 174)
176 TOTAL Liquefied Nat Gas Terminaling and Processing Exp (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125. 146, and 176)
178 3. TRANSMISSION EXPENSES
;'.' "'.....'."'.'.... .. .,,"
179 Operation
:",; .'....... .
180 850 Operation Supervision and Engineering
181 851 System Control and Load Dispatching
182 852 Communication System Expenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for Compressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measuring and Regulating Station Expenses
188 858 Transmission and Compression of Gas by Others
189 859 Other Expenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)
FERC FORM NO.2 (ED 12-88)Page 323
Name of Respondent Date of Report
(Mo, Va, Yr)
This R~rt Is:(1) i29 An Original
A vista Corp.A Resubmission April 25, 2005(2)
GAS OPERATION AND MAINTENANCE EXPENSES
Year of Report
December 31. 2004
State of California
Line
No.
Amount for Amount forCurrent Year Previous Year(b) (c)
. :.":,,,:,.;,..,. ..,':' ..:..:" .:., ,., '. ':.: .. .. ". '
Amount
(a)
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenance Supervision and En2ineerin2
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Equipment
197 865 Maintenance of Measurinl! and ReI!. Station EQuipment
198 866 Maintenance of Communication EQuipment
199 867 Maintenance of Other EQuipment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)
20 I TOTAL TransmissIOn Expenses (Enter Total of lines 191 and 200)202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and ED.I~ineerinl!
205 871 Distribution Load Dispatching
206 872 Compressor Station Labor and Expenses
207 873 Compressor Station Fuel and Power208 874 Mains and Services Expenses209 875 Measuring and Re2Ulatinl! Station ExDenses-General
210 876 Measurinl! and Re2Ulatinl! Station Expenses-Industrial
211 877 Measurinl! and Re2Ulatin2 Station Expenses-City Gate Check Station
212 878 Meter and House Re2ulator Expenses213 879 Customer Installations Expenses
214 880 Other Expenses
215 881 Rents216 TOTAL ODeration (Enter Total of lines 204 thru 215)
217 Maintenance
218 885 Maintenance Supervision and Enl!ineerin2
219 886 Maintenance of Structures and Improvements
220 887 Maintenance of Mains
221 888 Maintenance of Compressor Station
222 889 Maintenance of Meas. and ReI!. Sta.
223 890 Maintenance of Meas. and ReI!. Sta.
224 891 Maintenance of Meas, and Re2. Sta.
225 892 Maintenance of Services
226 893 Maintenance of Meters and House Regulators
227 894 Maintenance of Other EQuipment
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)230 5, CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision233 902 Meter Reading Expenses
234 903 Customer Records and Collection Expenses
235 904 Uncollectible Accounts
236 905 Miscellaneous Customer Accounts Expenses
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)
;. . ::,. '. , .. .,. .' :.. ,
60.896
92.019
4.449
106.394
79.669
30.181
550
375.158
:.::' ., ,.,.:;.
753
948
443
12.065
12.095
577
52.885
428.043
:. ,:,. .' .: .' .,:"
068
85.845
336.898
80.042
13.884
521.737
quipment
:CuiD.General
:Cuip.Industrial
:Cuip.City Gate Check Station
FERC FORM NO.2 (ED 12-88)Page 324
.",
34,034
84.181
063
138.536
53,927
38.524
719
358.026
859
16.720
688
565
284
110
22.097
640
46.743
404.769
. .
034
81.892
305.300
157.849
23.671
572.746
State of California
Name of Respondent This R~ort Is:Date of Report Year of Report(1) X An Original (Mo. Va, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 December 31, 2004
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(c)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
...'
239 Operation
240 907 Supervision
241 908 Customer Assistance Expenses 320 196
242 909 Informational and Instructional Expenses 822 179
243 910 Miscellaneous Customer Service and Intormational Expenses
244 TOTAL Customer Service and Information Expenses (Lines 240 thru 243)142 375
245 7. SALES EXPENSES
246 Operation I,.
,. .
247 911 Supervision
248 912 Demonstratin~ and Sellin~ Expenses
249 913 Advertisin~ Expenses 635
250 916 Miscellaneous Sales Expenses 535 3,400
251 TOTAL Sales ExDenses (Enter Total of lines 247 thru 250)170 3,400
252 8, ADMINISTRATIVE AND GENERAL EXPENSES I .
. .: ...........
L::253 ODeration r,y .
. .....': ... .. .
254 920 Administrative and General Salaries 248,950 236,148
255 921 Office Supplies and Expenses 100,301 102,266
256 (Less) (922) Administrative Expenses Transferred-Cr,
257 923 Outside Services EmDloved 178,630 149,247
258 924 Property Insurance 11,043 10,352
259 925 Injuries and Damae:es 63,671 35,275
260 926 Employee Pensions and Benefits 33,476 20,766
261 927 Franchise Requirements
262 928 Re~lartory Commission Expenses 129,592 105,491
263 (Less) (929) DuDlicate Char~es-Cr.
264 930.1 General Advertisine: Exoenses
265 930.2 Miscellaneous General Expenses 43,007 36,604
266 931 Rents 68,824 100,012
267 TOTAL Operation (Enter Total of lines 254 thru 266)877,494 796,161
268 Maintenance
:/ ....,,; :" .. " . ",....
269 935 Maintenance of General Plant 33,191 30,416
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)910,685 826,5771
271 TOTAL Gas O. and M. Exp (Lines 97,177,201 ,229.237,244,25 I,and 270)18,146,025 16,931.620
NUMBER OF GAS DEPARTMENT EMPLOYEES
I. The data on number of employees should be reported construction employees in a foonote.
for the payroll period ending nearest to October 31, or 3. The number of employees assignable to the gas
any payroll period ending 60 days before or after Octo-department from joint function of combination utilities
ber 31.may be determined by estimate, on the basis of employee
2. If the respondents payroll for the reporting period equivalents. Show the estimated number of equivalent
includes any special constrction personnel, include such employees attributed to the gas department from joint
emolovees on line 3, and show the number of such special functions.
Pavroll Period Ended (Date)December 31,2004
2. Total Regular Full-Time Employees
3. Total Part-Time and Temporary Employees allocation of General Employees
4. Total EmDlovees
FERC FORM NO.2 (ED 12-88)Page 325
State of California
Name of Respondent This ~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 25, 2005 Dec. 31, 2004
TRANSMISSION MAINS
Show Particulars Called for Concerning Transmission Mains
Total Length in Taken up or Total Length
L...ine Kind of Material Diameter of Use Beginning of Laid During Abandoned During in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year. Feet
(a)(b)(c)(d)(e)
None
TOTALS
* Show separately and identify lines held under a title other than full ownership.
FERC FORM NO.2 (ED 12-87)Page 514
Name of Respondent
A vista Corp.
....
ine Kind of Material
No.
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
This Report Is:(1) ~ An Original
(2) D A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo, Da, Yr)
April25,2005
Show Particulars Called for Concerning Distribution Mains
Total Length in I Taken up
Use Beginning of Laid During Abandoned DurinYear, Feet Year, Feet Year, Feet(e) (d) (e)
Diameter of
Pipe,lnches
(b)
Less than 2"
2'1 to
4" to 8"
8" to 12'1
Over 12"
Plastic
Plastic
1 0 Plastic
11 Plastic
12 Plastic
19 Change in footage reflects additions net of retirements.
TOTALS
FERC FORM NO.
Less than 2'1
2" to 4"
4" to 8"
8" to 12"
Over 12"
396,000
68,640
190,080
512 160
63,360
1 ,230,240
Page 514-
280
280
State of California
Year of Report
Dec. 31 , 2004
Total Length
in Use End
of Year, Feet
(f)
396,000
68,640
190,080
512 160
68,640
235,520
Name of Respondent This Report Is:Date of Report Year of Report
(1)~ An Original (Mo, Da, Yr)
A vista Corp.(2) D A Resubmission April25,2005 Dec. 31, 2004
SERVICE PIPES GAS
Show the particulars called for concernin~ the line service pipe in possession of the respondent at the close of
Number at Number umber Remove Number Average
Line Type Diameter Beginning Added or Abandoned at Close Length
No.in Inches of Year During Yeal During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Steel Wrapped 11 or Less 807 801 Not
Steel Wrapped 1" thru 2"Available
Steel Wrapped 2'1 thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic 11 or Less 241 192 8,433
Plastic 1" thru 2"
Plastic 2" thru 4"
. 11 Plastic 4" thru 8"
Plastic Over 8"
Number added is net of retirements.
TOTALS 16,098 192 16,284
State of California
FERC FORM NO.Page 514-
Name of Respondent This R
rKtort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 25, 2005 Dec. 31. 2004
CUSTOMER'S METERS
Owned
Line Size Type Make Capacity Beginmng Added Retired Owned
No.of Year During Year During Year End of Year
(a)(b)(c)(d)(e)efJ (.f!)(It)
Detailed information not available.
TOTAL 18,840 168 19,008
State of California
FERC FORM NO.Page 514-
Name of Respondent This Report Is:Date of Report Year of Report
(2g An Original (Mo, Oa, Yr)
Avista Corporation A Resubmission April 25, 2005 Dec. 31, 2004
GAS ACCOUNT - NATURAL GAS
The purpose of this schedule is to account for the quality or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilities, but not through any
Natural gas means either natural gas unmixed or any of the interstate portion of the reporting pipeline, and (3) the gathering
mixture of natural and manufactured gas.line quanities that were not destined for interstate market or that were
Enter in column ( c ) the Dth as reported in the not transported through any interstate portion of the reporting
schedules indicated for the items of receipts and pipeline.
deliveries.7 Also indicate in a footnote (1) the system supply quanitities of gas
Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeline, during the reporting year and
and transportation gas and specify the line on which also reported as sales, transportation, and compression volumes by
such quantities are listed.the reporting pipeline during the same reporting year, (2) the system
If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline during
are not interconnected, submit separate pages for this the reporting year which the reporting pipeline intends to sell or
purpose. Use copies of pages 520,transport in a future reporting year, and (3) contract storage
Also indicate by footnote the quantities of gas not subject quanitities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the companys total sales figure and the company
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14.02, etc.
pipeline (2) the quanties the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
Line Ref.
No.Item Page No.Amount of Dth (1)
fa)fb)fc)
GAS RECEIVED
Gas Purchases (Accounts 800-805)255,223
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305 89,570
Gas of Others Received for Distribution (Account 489.301
Gas of Others Received for Contract Storace (Account 489.4)307
Exchanged Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts pf Respondent's Gas Transported bv Others (Account 858)332
Other Gas Withdrawn from Storace (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (Specify):
Total Receipts (Total lines 3 thru 14.344,793
GAS DELI'y a;;;;,rlt:U
Gas SalesTAccounts 480 - 484)198,983
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305 89,570
Deliveries of Gas Distributed for Others (Account 489.301
Deliveries of Contract Storace Gas (Account 489.4)307
Exchance Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328
Deliveries of Gas to Others for Transportation (Account 858)332
Other Gas Delivered to Storage (Explain)
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale 30,500
Total Deliveries (Total lines 17 thru 27.319,053
GAS 11"'lar :r :r 11 1"-11 t:u FOR
Production System Losses
Gatherinc System Losses
Transmission System Losses
Distribution System Losses 25,740
Storace System Losses
Other Losses (Specify)
Total Unaccounted For (Total lines 30 thru 35)25,740
Total Deliveries & Unaccounted For (Total lines 28 thru 36)344,793
State of California
FERC FORM NO.2 (ED. 12-96)Page 520
This Page Intentionally Left Blank
Not Direct! Assi ed to States
This R~ort Is:Date of Report Year of Report(1) X An Original (Mo Da, Yr)
(2)A Resubmission Apri125, 2005 Dec. 31 2004
Name of Respondent
A vista Corp
STATEMENT OF INCOME 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 depart-
ment. Spread the amount(s) over lines 01 thru 20 as ap-
propriate. Include these amounts in columns (c) and (d)
totals.
2. Report amounts in account 414, Other Utility Operating
Income, in the same manner as accounts 412 and413 above.
3. Report data for lines 7 and 10 for Natural Gas com-
parnes using accounts 404.1, 404.2, 404., 407.1, and
407.
4. Use page 122 for important notes regarding the state-
ment of income or an account thereof.
Une
No.
Account
(a)
FERC FORM NO.2 (REVISED 12-96)
(Ref.
Page
No.
(b)
300-301
320-325
320-325
336-338
336-338
336-338
262-263
262-263
262-263
234 272-277
234 272-277
266
Page 114
5. Give concise explanations concemingunsettled rate
proceedings where a contingency exists such that refunds
of a material amount may need to be made to the utility
customers or which may result in a material refund to the
utility with respect to power or gas purchases. State for each
year affected the gross revenues or costs to which the con-
tingency relates and the tax effects together with an expIa-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amounts paid with respect
to power and gas purchases.
6. Give concise explanations concerning significant
amounts of any refunds made or received during the year
TOTAL
Current Year Previous Year
i:i:imi:m:!I!'imi'!:!:i:! :i:!:j :i:!:!:i:!'i:i:I:!:!:i'!:imi:j :Wi:i:j:!:!mW!:i:ii! :m:i :i:i :i:!:JI'j:!t!mj'l:i:i :I:!:I'I:II II Ii:!:! :::Wi:i'! :i:::!:!t!I!:Wi:i:ii'!'
/:j:
if'j mwm:rn:::j :i'l
$64 745 777 $72 075 587
SSU tates
Name of Respondent This ~ort Is:Date of Report Year of Report
(1)An Original (Mo Yr)
A vista Corp (2)A Resubmission April 2005 Dec.2004
STATEMENT INCOME FOR THE YEAR
resulting from settlement any rate proceeding affecting had an effect on net income including the basis of allocations
revenues received costs incuJred for power gas pur-and apportionments from those used the preceding year,
chases and summary the adjustments made to balance Also give the approximate dollar effect such changes.
sheet, income,and expense accounts.Explain a foonote if the previous years figures are
If any notes appearing in the report to stockholders are different from that reported in prior reports.
applicable this Statement of Income such notes may be at-10.If the columns are insufficIent for reporting additional
tached at page 122.utility departments supply the appropriate account titles, lines
Enter on page 122 a consise explanation of only those 19,and report the infonnation in the blank space on page
changes accounting methods made during the year which 122 or in a supplemental statement
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY
Current Year Previous Year Current Year Previous Year Current Year Previous Year line
No.
$64,593,587 $71,795 949 $152,190 ~79 638
j:!:i:::iH:W:i:J:i:j:i:::j:i :i:i:i1:i:i:i:i:i:i1:i:::i:i:i:j:i:j:iH1:i:i:i:i :i:i:j1:Ji'i:i:i:i:i1:ti:::i:ii:i :1:i:i :j:i:i1:i:!'i:j:i:i:i:i:Ji:j:i:j:::i:iHi'i:i:i:i:::i:i:i:i:j'j:i:j :i:I:I:i:::i:i::1'1:;:I'i:::i:: :i:i:j'Ji'i:i:j:i:i :i:: :jIi:i'i:j:j Ii:j :j:j:i:i:Wj:i:i:: :i:i:i'i:: :i:i:i:i:i:id:itj :i:::i1:i:i'i:i:j'i:i:i'j:i:i:i:iJ::j :i:i:1Hi:i:i:i:j:i'i:i:i::1:mi:i:i:j :i1:i:jmj:i:i :imj 'i:j:i:i'!:iH:i :i:i:Hi :iHHi:i :J::1:i:j:i::mi Wi :i'i:i:::i:imi1:i:i:i:j,i:j'i:i :::::::I:j:::l:::i::
$64 593 587 $71 795 949 $152 190 $279 638
N Dir ' ed
FERC FORM NO.2 (REVISED 12-96)Page 115
Name of Respondent This report is:
( X) An Original
Not Directl
Date of Report
(Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE ACCOUNTS 101, 102, 103, AND 106
1. Report below the original cost of gas plant in service according to estimated basis if necessary, and include the entries in column (c).the prescribed accounts. Also to be included in column (c) are entries for reversals of tentative
2. In addition to Account 1 01, Gas Plant in Service (Classified), this distributions of prior year reported in column (b). Likewise, if the
page and the next include Account 102, Gas Plant Purchased or respondent has a significant amount of plant retirements which have
Sold, Account 103, Experimental Gas Plant Unclassified, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Construction Not Classified-Gas. in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, corrections of estimated basis, with appropriate contra entry to the account for
additions and retirements for the current or preceding year. accumulated depreciation provision. Include also in column (d)
4. Enclose in parenthesis credit adjustments of plant accounts to reversals of tentative distributions of prior year's unclassifiedindicate the negative effect of such accounts. retirements. Attach supplemental statement showing the account
5. Classify Account 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
301 O~ anization
302 Franchises and Consents
303 Miscellaneous Intan ible Plant
TOTAL Intan ible Plant Enter Total of lines 2 thru 4
PRODUCTION PLANT
223,765.
223,765.
169,353.
169,353.
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Not Directl Assi ned to States
Year Ending
Avista Corp.) A Resubmission April25,2005 Dec. 31, 2004
GAS PLANT IN SERVICE ACCOUNTS 101,102,103, AND 106 Continued
including the reversals of the prior years tentative account and show in column (1) only the offset to the debits or credits to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementaryplant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (1) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (1) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Line
No.
582,852.810,266.
582 852.810,266.
FERC FORM NO.2 (ED. 12-96)Page 205
Irec IY ssigne aes
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25,2005 Dec. 31 , 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
346 Gas Measuring and Regulating Equipment
347 Other Equipment
TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)
TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)
Manufactured Gas Production Plant (Submit Supplementary Statement)
TOTAL Production Plant (Enter Total of lines 37 and 38)
NATURAL GAS STORAGE AND PROCESSING PLANT
Underground Storage Plant
350.1 Land
350.2 Rights-of-Way
351 Structures and Improvements
352 Wells
352.1 Storage Leaseholds and Rights
352.2 Reservoirs
352.3 Non-recoverable Natural Gas
353 Unes
354 Compressor Station Equipment
355 Measuring and Regulating Equipment
356 Purification Equipment
357 Other Equipment
TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification Equipment
363.1 liquefaction Equipment
363.2 Vaporizing Equipment
363.3 Compressor Equipment
363.4 Measuring and Regulating Equipment
363.5 Other Equipment
TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)
Base Load liquefied Natural Gas Terminaling and Processing Plant
364.1 Land and Land Rights
364.2 Structures and Improvements
364.3 LNG Processing Terminal Equipment
364.4 LNG Transporation Equipment
364.5 Measuring and Regulating Equipment
364.6 Compressor Station Equipment
364.7 Communications Equipment
364.8 Other Equipment
TOTAL Base Load Uq Nat'l Gas, Terminal and Processing Plant (lines 67-74)
TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54, 65 and 75)
TRANSMISSION PLANT
365.1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
N t D'tl A d t St t
FERC FORM NO.2 (ED. 12-96)Page 206
Not Directly Assianed to tates
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
A vista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(a)No.
FERC FORM NO.2 (ED. 12-96)Page 207
Not DirectlY SSigne to tates
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
367 Mains
368 Comcressor Station Equipment
369 Measuring and Regulating Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land Rights
375 Structures and Improvements
376 Mains 87,034.
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General
379 Measuring and Regulatina Equipment-City Gate
380 Services
381 Meters
382 Meter Installations
383 House Regulators
384 House Regulator Installations
385 Industrial Measurina and Reaulatina Station Equipment
100 386 Other Property on Customers' Premises
101 386 Other Equipment
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)87,034.
103 GENERAL PLANT
104 389 Land and Land Rights 253,731.
105 390 Structures and Improvements 361,937.348.
106 391 Office Furniture and Equipment
107 392 Transportation Equipment 408,301.43,532.
108 393 Stores Equipment
109 394 Tools, Shop, and Garage Equipment 382,963.102,536.
110 395 Laboratory Equipment 342,881.272.
111 396 Power Operated Equipment 368,144.
112 397 Communication Equipment 730,342.26,443.
113 398 Miscellaneous Equipment 31,332.
114 Subtotal (Enter Totals of lines 104 thru 113)879,635.183,133.
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)879,635.183,133.
117 TOTAL (Accounts 101 and 106)190,435.352,486.
118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction "
120 Exoerimental Gas Plant Unclassified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120 190,435.352,486.
I A
FERC FORM NO.2 (ED. 12-96)Page 208
"'"
IrectlY sslone tates
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
A vista Corp.) A Resubmission April 25, 2005 Dec. 31, 2004
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
Cd)(e)(f)(0)No.
(87,034.63)
100
101.102
103
253,731.89 104
951.365,333.105
106
451,834.107
108
303.479,197.109
299.346,854.110
368,144.111
521.702,264.112
31,332.113
075.998,693.114
115
64,075.998,693.116
646,927.(87,034.63)808,959.117
118
119
120
646,927.(87 034.63)808,959.121
I A dt S
FERC FORM NO.2 (ED. 12-96)Page 209
Irec IV sslQne a es
Name of Respondent This ~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission April 25, 2005 Dec. 31 , 2004
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added.The average number of
prescribed account, and manufactured gas revenues in total.customers means the average of twelve figures at the close
2. Natural gas means either natural gas unmixed or any of each month,
mixture of natural and manufactured gas,4, Report quantities of natural gas sold in Mcf (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F), If billings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate ac-tents of the gas sold and the sales converted to Mcf.
counts; except that where separate meter readings are 5, If increases decreases from previous year (col-
added for billing purposes, one customer should be counted umns (c),(e)and (g), are not derived from previously
OPERATING REVENUES
Line Title of Account Amount for
No.Amount for Year Previous Year
(a)
GAS SERVICE REVENUES
1(480) Residential Sales
1(481) Commercial and Industrial Sales
Small (or Comm.) (See Instr. 6)
Lar~e (or Ind.) (See Instr. 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
1(483 Sales for Resale 152 110 279,638
TOTAL. Nat. Gas Service Revenues 152 110 279,638
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 152 110 279,638U I Ht::H U
...., ".
IIN(j nt::
y ...., "
Jt::t)
485 Intracompany Transfers
487 Forfeited Discounts
488 Misc. Service Revenues
489 Rev. from Trans. of Gas of Others
490 Sales of Prod. Ext. from Nat. Gas
491 Rev. from Nat. Gas Proc. by Others
492 Incidental Gasoline and Oil Sales
493 Rent from Gas Property
494 Interdepartmental Rents
495 Other Gas Revenues 285
TOTAL Other Operating Revenues
TOTAL Gas Operating Revenues 152 190 279,638
I(Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 152,190
:.::...
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line
Sales to Resid. and Comm. Custrs.
:.......
Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authorities)
..'
Sales for Resale 152,110
Other Sales to Pub. Auth. (Local Dist. Only)
Interdepartmental Sales
TOTAL (Same as Line 10, Columns (b) and (d))152 110
N t tl A d t St t
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent
Not Directl Assi ned to States
This (gfort Is:Date of Report Year of Report(1) X An Original (Mo, Oa, Yr)
(2)A Resubmission April 25, 2005 Dec. 31 , 2004Avista Corporation
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Account 481, may be
classified according to the basis of classification (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Met per year or approximately 800 Mcf
per day of normal requirements. (See Account 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.
7. See page 108, Important Changes During Year
for important new territory added and important rate increases
or decreases,
THERMS OF NATURAL GAS SOLD
Quantity forQuantity for Year Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
305,000
305,000
675,000
675,000
FERC FORM NO.2 (ED. 12-86)Page 301
Name of Respondent This R~rt Is:
(1) t29 An Original
Date of Report
(Mo, Da, Yr)
State of Montana
Year of Report
A vista Corp (2)A Resubmission April 25, 2005 Dec. 31,2004
STATEMENT OF INCOME 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 depart-
ment Spread the amount(s) over lines 01 thru 20 as ap-
propriate. Include these amounts in columns (c) and (d)
totals.
2. Report amounts in account 414, Other Utility Operating
Income, in the same manner as accounts 412 and413 above.
3. Report data for lines 7,, and 10 for Natural Gas com-
panies using accounts 404., 404,, 404., 407,1, and
407.
4. Use page 122 for important notes regarding the state-
ment of income or an account thereof.
Line
No.
Account
(a)
FERC FORM NO.2 (REVISED 12-96)
(Ref.
Page
No.
5. Give concise explanations concemingunsettled rate
proceedings where a contingency exists such that refunds
of a material amount may need to be made to the utility
customers or which may result in a material refund to the
utility with respect to power or gas purchases. State for each
year affected the gross revenues or costs to which the con-
tingency relates and the tax effects together with an expIa-
tion of the major factors which affect the rights of the utility
to retain such revenues or recover amounts paid with respect
to power and gas purchases.
6. Give concise explanations concerning significant
amounts of any refunds made or received during the year
TOTAL
Current Year Previous Year
300-301
320-325
320-325
336-338
336-338
336-338
262-263
262-263
262-263
234 272-277
234 272-277
266
Page 114
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691 177 $4,548 133
Name of Respondent This R~ort Is:
(1 ) I!I An on gina1
Date of Report
(Mo, Da, Yr)
State of Montana
Year of Report
Avista Corp (2)A Resubmission Apri125, 2005 Dec. 31 2004
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs incuITed for power or gas pur-
chases, and a summary of the adjustments made to balance
sheet, income, and expense accounts.
7. If any notes appearing in the report to stockholders are
applicable to this Statement of Income, such notes may be at-
tached at page 122.
8. Enter on page 122 a consise 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 foonote if the previous year's figures are
different from that reported in prior reports.
10. If the columns are insufficient for reporting additional
utility departments, supply the appropriate account titles, lines
1 to 19, and report the information in the blank space on page
122 or in a supplemental statement.
ELECTRIC UTILITYCurrent Year Previous Year
GAS UTILITYCun-ent Year Previous Year
OTHER UTILITY
Current Year Previous Year Une
No.
691 177 $4,548 133
FERC FORM NO.2 (REVISED 12-96)Page 115