2005Annual report.pdf

THIS FILING IS
Item 1: 00 An Initial (Original)
Submission
OR Resubmission No.
Form 2 Approved
OMB No. 1902-0028
(Expires 6/30/2007)
Form 3-0: Approved
OMB No.1902-0205
(Expires 6/30/2007)
."..-~ '. ,..., .; ..,'......
FERC FINANCIAL REPORT
FERC FORM No.2: Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
These reports are mandatory under the Natural Gas Act, Sections 10(a), and 16 and 18
CFR Parts 260.1 and 260.300. Failure to report may result in criminal fines, civil
penalties, and other sanctions as provided by law. The Federal Energy Regulatory
Commission does not consider these reports to be of a confidential nature.
Exact Legal Name of Respondent (Company)
Avista Corporation
Year/Period of Report
End of 2005/04
FERC FORM No. 2I3Q (02-04)
r~'
IDENTIFICATION
01 Exact Legal Name of Respondent 02 Year/Period of Report
A vista Corporation End of 2005/04
03 Previous Name and Date of Change (if name changed during year)
/ /
04 Address of Principal Office at End of Period (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, WA, 99202
05 Name of Contact Person 06 Title of Contact Person
M. K. Malquist Senior VP and CFO
07 Address of Contact Person (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, W A, 99202
08 Telephone of Contact Person,lncluding 09 This Report Is 10 Date of Report
Area Code (1) 00 An Original (2) 0 A Resubmission (Mo, Da, Yr)
[phone] 04/17/2006
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 s~""tu", d-"04 Date Signed
M. K. Malquist
;tz/! 11t1~(Mo, Da, Yr)
02 Title
Senior VP and CFO 04/17/2006
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.
, FERC FORM NO. 2/3-
REPORT OF MAJOR ELECTRIC UTILITIES LICENSEES AND OTHER
FERC FORM No. 2/3-Q (REV. 02-04)Page 1
Name of Respondent This report is:Date of Repor Year Ending
Avista Corp.( XJ An Original (Mo, Da, Yr)
J A Resubmission April 17 200t Dec, 31 2005
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none
" "
not applicable " or "NA" as appropriate, where no information or amounts have been reponed for
certain pages. Omit pages where the responses are "none,
" "
not applicable," or "NA."
Line Title of Schedule Reference Page No.Date Revised Remarks
No.(a)(b)(c)(d)
GENERAL CORPORATE INFORMA nON AND FINANCIAL STATEMENTS
1 General Information 101
2 Control Over Respondent 102 N/A
3 CoTDorations Controlled bv Respondent 103
4 Securitv Holders and Voting Powers 107
5 Important Chancres During the Year 108
6 Comparative Balance Sheet 110-113
7 Statement of Income for the Year 114-116
8 Statement of Accumulated Comprehensive Income and Hedging Activities 117 shown as 122a!b
9 Statement of Retained Earnings for the Year 118-119
Statements of Cash Flows 120-121
Notes to Financial Statements 122
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits)
Summarv of Utilitv Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion 200-20 I
Gas Plant in Service 204-209
Gas Propertv and Capacitv Leased from Others 212 N/A
Gas Propertv and Capacitv Leased to Others 213 N/A
Gas Plant Held for Future Use 214 N/A
Construction Work in Pro!ITess-Gas 216
General Description of Construction Overhead Procedure 218 N/A
Accumulated Provision for Depreciation of Gas Utility Plant 219
Gas Stored 220
Investments 222-223 N/A
Investments in Subsidiary Companies 224-225
Prepayments 230
Extraordinarv Property Losses 230 N/A
Unrecovered Plant and Reaulatorv Studv Costs 230 NlA
Other Regulatorv Assets 232
Miscellaneous Deferred Debits 233
Accumulated Deferred Income Taxes 234-235
BALANCE SHEET SUPPORTING SCHEDULES (Liabilities and Other Credits)
Capital Stock 250-251
Capital Stock Subscribed. Capital Stock Liability for Conversion, Premium on Capital Stock, and
Installments Received on Capital Stock 252 N/A
Other Paid-in Capital 253 N/A
Discount on Capital Stock 254 N/A
Capital Stock Expense 254
Securities issued or Assumed and Securities Refunded or Retired Durina the Year 255 N/A
Lon a-Term Debt 256-257
Unamortized Debt Expense, Premium, and Discount on Lonl!-Term Debt 258-259 N/A
Unamortized Loss and Gain on Reacquired Debt 260 N/A
FERC FORM NO.2 (12-96)Page 2
Name of Respondent This report is:Date of Repor Year Ending
Avista Corp.( X) An Original (Mo, Da, Yr)
) A Resubmission April 17, 200E Dec, 31, 2005
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none,
" "
not applicable " or "NA" as appropriate, where no information or amounts have been reported for
certain pages. Omit pages where the responses are "none
" "
not applicable " or "NA."
Line Title of Schedule Reference Page No,Date Revised Remarks
No.(a)(b)(c)(d)
Reconciliation of Reported Net Income with Taxable Income for Federal Income Taxes 261
Taxes Accrued, Prenaid, and Charcred During Year 262-263
Miscellaneous Current and Accrued Liabilities 268
Other Deferred Credits 269
Accumulated Deferred Income Taxes-Other Propertv 274-275
Accumulated Deferred Income Taxes-Other 276-277
Other Reaulatorv Liabilities 278
INCOME ACCOUNT SUPPORTING SCHEDULES
Gas Operating Revenues 300-301
Revenues from Transportation of Gas of Others Throuah Gathering Facilities 302-303 N/A
Revenues from Transportation of Gas of Others Throuah Transmission Facilities 304-305 N/A
Revenues from Storage Gas of Others 306-307 N/A
Other Gas Revenues 308 N/A
Gas Operation and Maintenance Exnenses 317-325
Exchange and hnbalance Transactions 328 N/A
Gas Used in Utility Operations 331 N/A
Transmission and Compression of Gas bv Others 332 N/A
Other Gas Supply Expenses 334
Miscellaneous General Expenses-Gas 335
DeDTeciation, Depletion, and Amortization of Gas Plant 336-338
Particulars Concerning Certain Income Deduction and Interest Charges Accounts 340
COMMON SECTION
Regulatory Commission Expenses 350-351
Distribution of Salaries and Wages 354-355
Charcres for Outside Professional and Other Consultative Services 357
GAS PLANT STATISTICAL DATA
Compressor Stations 508-509 N/A
Gas Storacre Projects 512-513
Transmission Lines 514
Transmission System Peak Deliveries 518
Auxiliarv Peaking Facilities 519
Gas Account-Natural Gas 520
Svstem Map 522 N/A
Footnote Reference 551
Footnote Text 552 shown as 450
Stockholder s Reports (check aPDTopriate box)
(X) Four copies will be submitted
( ) No annual report to stockholders is prepared
FERC FORM NO, 2 (12-96)Page 3
This Page Intentionally Left Blank
Name of Responoent This Report Is:
(1) 00 An Original(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
04/17/2006
Year/Period of Report
Avista Corporation
End of 2005/04
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 and Chief Financial Officer
1411 E. 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 (sold California
operations to Southwest Gas Corporation in April 2005)
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) 00
FERC FORM NO.2 (ED. 12-87)PAGE 101
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2)D A Resubmission 04/17/2006
C)RPORATIONS CONTROLLED BY R SPONDENT
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, Inc.Parent company to the 100
Company s subsidiaries.
Avista Advantage, Inc.Provider of utility bill 99.Subsidiary of
processing, payment and Avista Capital
information services to multi
site customers in North Amer.
Avista Communications, Inc.Telecommunications 100 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 Inactive subsidiary
company.of Avista Capital.
FERC FORM NO.2 (ED. 12-96)Page 103
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) D A Resubmission 04/17/2006
RPORATIONS 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 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
complete fabrication and
turnkey assembly for arcade
FERC FORM NO.2 (ED. 12-96)Page 103.
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2)D A Resubmission 04/17/2006
C YRPORATIONS 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)
games, kiosks, store fixtures
and displays.
Avista Receivables Corporation Acquires and sells accounts 100
receivable of Avista Corp.
Avista Energy Canada, Ltd.A wholly owned subsidiary of 100 Subsidiary of
Avista Energy, Inc. that Avista Energy
provides natural gas service
to approximately 250
individual customers in
British Columbia, Canada
Rathdrum Power, LLC Developed and owns an
';:"~"
electric generation asset.
Coyote Springs 2, LLC Developed and owns an 100
;);;" , ,.;,
electric generation asset.
WP Funding LP Owned an electric generation Controlled pursuant
asset.to FIN 46. No longer
controlled effective
September 2005.
Spokane Energy, LLC Marketing of energy.100
FERC FORM NO.2 (ED. 12-96)Page 103.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) n A Resubmission 04/17/2006
C )RPORA TIONS CONTROLLED BY R SPONDENT
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 Dissolved in 2005.
formed by the Company.
Issued Pref. Trust Securities
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
FERC FORM NO.2 (ED. 12-96)Page 103.
Name of Respondent This ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Com.(2) A Resubmission 04/17/2006 Dec. 31 2005
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 of trust, 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 carnes 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 detennination of
corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, WaITants, 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, WaITants 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
stock book prior to end of year, and in a meeting prior to the end of year for election of directors of such meeting:
footnote, state the purpose of such closing:the respondent and number of such votes cast by proxy.
November 30, 2005 to pay the Total:43,155 573 May 12 2005
December 15, 2005 dividend.By Proxy:155,573 Spokane, Washington
VOTING SECURITIES
4. Number of votes as of (date):11/30/2005
ine 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 48,473,059 48,473,059
TOTAL number of security holders 15,226 226
TOTAL votes of security holders listed below 297,437 297,437
D&H Properties LP, Coeur d'Alene, ill 646 646
Margaret Anne Brosnan Trust AlC , Akron, OH 55,000 000
Alfred C Glassell, Ir, Houston, TX 028 028
Gladys L Rikerd, Spokane, W A 671 671
Kay Kobayashi, Los Angeles, CA 092 092
Ernest C Gosnay Ir & Marie K Gosnav Trs, Spokane, W A 011 20,011
Robert Eugene Young, Washougal, WA 20,000 20,000
Edmund M Reeck Tr V/ A Dtd 06/16/98, Salem, OR 962 962
Thomas A Lowe & Kathleen B Lowe It Ten 15,027 15,027
Mildred Savage, Kellogg, ill 000 15,000
FERC FORM NO.2 (ED 12-87)Page 107
This Report Is: Date of Report(1) ~ An Original(2) D A Resubmlssion 04/17/2006
IMPORTANT CHANGES DURING THE QUARTER/YEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them
accordance with the inquiries. Each inquiry should be answered. Enter "none," "not applicable," or "NA" where applicable. If
information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears.
1. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the
franchise rights were acquired. 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 of
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.
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2005/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) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
IMPORTANT CHANGES DURING THE QUARTER/YEAR (Continued)1. None.2. None.3. On April 29, 2005, Avista Corporation completed the sale of its South Lake Tahoe natural gas distribution
properties to Southwest Gas Corporation. The total cash proceeds from the sale were approximately $16.6 million. 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 thenns delivered) to approximately
750 South Lake Tahoe customers. The transaction was approved by the California Public Utilities Commission
March 17, 2005 (Decision 05-03-010).4. None.5. See response at #3 above for the sale of Avista Corp.'s South Lake Tahoe natural gas distribution properties
in April 2005.6. Avista Receivables Corporation (ARC) is a wholly owned, bankruptcy-remote subsidiary of Avista Corp.
formed for the purpose of acquiring or purchasing interests in certain accounts receivable, both billed and unbilled, of the
Company. On March 22, 2005, Avista Corp., ARC and a third-party financial institution amended a Receivables
Purchase Agreement. The most significant amendment was to extend the termination date from May 29, 2005 to March
21,2006. Under the Receivables Purchase Agreement, ARC can sell without recourse, on a revolving basis, up to $85.
million of those receivables. As of December 31 2005, $85.0 million in accounts receivables were sold under this
revolving agreement.
During the fourth quarter of 2005, the Company issued $150.0 million of 6.25 percent First Mortgage Bonds
due in 2035. The proceeds from the issuance were used to repay a portion of the borrowings outstanding under the
Company s $350.0 million committed line of credit and for the payment of corporate obligations. This debt issuance was
approved by the respective regulatory commission as follows: WUTC (Docket No. UE-051417 Order No. I and 2);
OPUC (Docke UP 4221 Orders 05-1228 and 05-1081); and IPUC (Case No. A VU-05-1 Orders 29922 and 29896).7. None.8. Average annual wage increases were 2.7% during the first half of 2005 for non-exempt personnel. Average
annual wage increases were 3.4% for exempt employees during the first half of 2005. Average annual wage increases
were 6.3% for officers during the first half of 2005. Bargaining unit employees were granted increases of 3.5%.9. Reference is made to Note 22 of Notes to Financial Statements, page 123 of this Report.10. None.11. Reserved12. See page 123 of this Report.13. On June 21, 2005, Avista Corp. announced the naming of Marian Durkin as senior vice president and
general counsel, effective August 1,2005.
On November 11, 2005, the board of directors elected Karen Feltes as senior vice president and Marian
Durkin as chief compliance officer. Karen Feltes is also corporate secretary and Marian Durkin is also senior vice
president and general counsel.
On January 6, 2006, A vista Corp. announced the appointment of Christy Burmeister-Smith as vice president
and treasurer and Ann Wilson as vice president and controller. Malyn Malquist, who remains senior vice president and
chief fmancial officer of the Company, previously also held the position of treasurer. Christy Burmeister-Smith
previously was vice president and controller of the Company since June 1999. Ann Wilson previously was vice president
and controller of A vista Energy, Inc., a subsidiary of the Company, since January 2000.14. Proprietary capital is not less than 30 percent.
I FERC FORM NO.2 (ED. 12-96) Page 109.
This Page Intentionally Left Blank
Name of Respondent This Report Is:Date of Report Year/Period of Report
Avista Corporation (1)!ZI An Original (Mo, Da, Yr)
(2)A Resubmission 04/17/2006 End of 2005/04
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line
Current Year Prior Year
Ref.End of Ouarter/Year End Balance
No.Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
UTILITY PLANT
Utility Plant (101-106,114)200-201 847 042 774 631 344 033
Construction Work in Progress (107)200-201 55,887 059 49,895 113
TOTAL Utility Plant (Enter Total of lines 2 and 3)902 929,833 681 239,146
(Less) Accum. Provo for Depr. Amort. Depl. (108, 110, 111 , 115)200-201 971 551,338 928,445 545
Net Utility Plant (Enter Total of line 4 less 5)931,378,495 752,793,601
Nuclear Fuel in Process of Ref., Conv.Enrich., and Fab. (120.202-203
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 (120.202-203
Net Nuclear Fuel (Enter Total oflines 7-11 less 12)
Net Utility Plant (Enter Total of lines 6 and 13)931,378,495 752 793,601
Utility Plant Adjustments (116)122
Gas Stored Underground - Noncurrent (117)
OTHER PROPERTY AND INVESTMENTS
Nonutility Property (121)142,727 272,992
(Less) Accum. Provo for Depr. and Amort. (122)858 924 135,292
Investments in Associated Companies (123)903,000 903,000
Investment in Subsidiary Companies (123.224-225 237 737,798 256,786 600
(For Cost of Account 123.1, See Footnote Page 224, line 42)
Noncurrent Portion of Allowances 228-229
Other Investments (124)33,701,281 682,363
Sinking Funds (125)
Depreciation Fund (126)
Amortization Fund - Federal (127)
Other Special Funds (128)049,946 20,246 110
Special Funds (Non Major Only) (129)
Long-Term Portion of Derivative Assets (175)731 530 55,824 772
Long-Term Portion of Derivative Assets - Hedges (176)
TOTAL Other Property and Investments (Lines 18-21 and 23-31)349,407,358 386,580,545
CURRENT AND ACCRUED ASSETS
Cash and Working Funds (Non-major Only) (130)
Cash (131)602 512 239 043
Special Deposits (132-134)408 468 172 613
Working Fund (135)726 275 495 365
Temporary Cash Investments (136)513 042 699,209
Notes Receivable (141)39,569 153,770
Customer Accounts Receivable (142)101,478 486 56,067 151
Other Accounts Receivable (143)041 055 833,112
(Less) Accum. Provo for Uncollectible Acct.-Credit (144)227,916 810 071
Notes Receivable from Associated Companies (145)321,130 42,000,000
Accounts Receivable from Assoc. Companies (146)610,682
Fuel Stock (151)227 773 050 049 604
Fuel Stock Expenses Undistributed (152)227
Residuals (Elec) and Extracted Products (153)227
Plant Materials and Operating Supplies (154)227 006,429 867 767
Merchandise (155)227
Other Materials and Supplies (156)227
Nuclear Materials Held for Sale (157)202-203/227
Allowances (158.1 and 158.228-229
FERC FORM NO.2 (REV. 12-03) Page 110
Name of Respondent YearlPeriod of ReportThis Report Is: Date of Report
(1) I:zI An Original
(Mo, Da, Yr)
(2) 0 A Resubmission 04/17/2006 End of
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)continued)
Avista Corporation 2005/Q4
Line
No.
Current Year Prior Year
Ref.End of QuarterlY ear End Balance
Page No.Balance 12/31
(b)(c)(d)
227 62,610
12,469 887 268,257
006,819,724,434
745,002 899,276
19,493
361 071 391 040
1,449,358 82,082
116 224 963 382,258
731 530 824 772
254 002 646 143,779 617
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, 32, 67, and 84)
~;W;:;g~fgijh~2lil~j:~f&~1
692 385 858,709
230
230
232 225 248 761 231 982 032
988,821 084 058
728,989
233 40,675 589 242 169
352-353
32,829,288 554 021
234 34,647,400 892,673
43,444,010 639 755
403 526,254 428 982,406
938 314,753 712 136 169
FERC FORM NO.2 (REV. 12-03)Page 111
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1)lliJ An Original (mo, da, yr)
(2)A Rresubmission 04/17/2006 end of 2005/04
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line
Current Year Prior Year
No.
Ref.End of Ouarter/Year End Balance
Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
PROPRIETARY CAPITAL
Common Stock Issued (201)250-251 631 083,752 629,055 981
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 10,485,244 10,676,498
Retained Earnings (215, 215., 216)118-119 132 024,036 91 ,642,291
Unappropriated Undistributed Subsidiary Earnings (216.118-119 804,777 211 690
(Less) Reaquired Capital Stock (217)250-251
Noncorporate Proprietorship (Non-major only) (218)
Accumulated Other Comprehensive Income (219)122(a)(b)299,148 157,918
Total Proprietary Capital (lines 2 through 15)771 128,173 753,075,546
LONG-TERM DEBT
Bonds (221)256-257 719 082 687 521 300,000
(Less) Reaquired Bonds (222)256-257
Advances from Associated Companies (223)256-257 115,203,000 114 803,000
Other Long-Term Debt (224)256-257 391 538,636 497,427 068
Unamortized Premium on Long-Term Debt (225)266,500
(Less) Unamortized Discount on Long-Term Debt-Debit (226)879,744 608,182
Total Long-Term Debt (lines 18 through 23)224 211,079 131 921 886
OTHER NONCURRENT LIABILITIES
Obligations Under Capital Leases - Noncurrent (227)983,184 028,272
Accumulated Provision for Property Insurance (228.
Accumulated Provision for Injuries and Damages (228.790,259 188,972
Accumulated Provision for Pensions and Benefits (228.353,587 754 150
Accumulated Miscellaneous Operating Provisions (228.
Accumulated Provision for Rate Refunds (229)
Long-Term Portion of Derivative Instrument Liabilities 272 33,489 633
Long-Term Portion of Derivative Instrument Liabilities - Hedges 956,479 6,482 354
Asset Retirement Obligations (230)528,823 190,714
Total Other Noncurrent Liabilities (lines 26 through 34)700 604 90,134 095
CURRENT AND ACCRUED LIABILITIES
Notes Payable (231)
Accounts Payable (232)139,804 777 66,444 650
Notes Payable to Associated Companies (233)
Accounts Payable to Associated Companies (234)769 180 909,608
Customer Deposits (235)264 115 286 185
Taxes Accrued (236)262-263 112 798 313,430
Interest Accrued (237)18,643 064 18,632,069
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 YearlPeriod of Report
Avista Corporation (1)IX)An Original (mo, da, yr)
(2)A Rresubmission 04/17/2006 end of 2005/04
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDIT~ntinued)
Line
Current Year Prior Year
No.
Ref.End of Ouarter/Year End Balance
Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
Matured Interest (240)
Tax Collections Payable (241)893 736
Miscellaneous Current and Accrued Liabilities (242)35,225 169 15,927,496
Obligations Under Capital Leases-Current (243)050 181 946,251
Derivative Instrument Liabilities (244)534 971 561 157
(Less) Long-Term Portion of Derivative Instrument Liabilities 88,272 33,489,633
Derivative Instrument Liabilities - Hedges (245)956,479 482 354
(Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges 956,479 6,482 354
Total Current and Accrued Liabilities (lines 37 through 53)203 093,280 135 532,949
DEFERRED CREDITS
Customer Advances for Construction (252)820 898 937 286
Accumulated Deferred Investment Tax Credits (255)266-267 521 652 570,960
Deferred Gains from Disposition of Utility Plant (256)
Other Deferred Credits (253)269 36,304,164 33,121 416
Other Regulatory Liabilities (254)278 116 251 545 700,436
Unamortized Gain on Reaquired Debt (257)754 170 225,371
Accum. Deferred Income Taxes-Accel. Amort.(281)272-277
Accum. Deferred Income Taxes-Other Property (282)289,242 025 293 535,925
Accum. Deferred Income Taxes-Other (283)228,287,163 234 380,299
Total Deferred Credits (lines 56 through 64)675,181,617 601,471 693
TOTAL LIABILITIES AND STOCKHOLDER EOUITY (lines 16, 24, 35, 54 and 65)938 314 753 712 136,169
FERC FORM NO.2 (rev. 12-03)Page 113
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) Fi A Resubmission 04/17/2006
STATEMENT OF INCOME
Quarterly
1. Enter in column (d) the balance for the reporting quarter and in column (e) the balance for the same three month period for the prior year.
2. Report in column (f) the quarter to date amounts for electric utility function; in column (h) the quarter to date amounts for gas utility, and in OJ the
quarter to date amounts for other utility function for the current year quarter.
3. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in (k) the
quarter to date amounts for other utility function for the prior year quarter.
4. If additional columns are needed place them in a footnote.
Annual or Quarterly if applicable
5. Do not report fourth quarter data in columns (e) and (f)
6. Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to
a utility department. Spread the amount(s) over lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals.
7. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above.
8. Report data for lines 8, 10 and 11 for Natural Gas companies using accounts 404., 404., 404.3, 407.1 and 407.
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.QuarterNear QuarterNear No 4th Quarter No 4th Quarter
(a)(b)(c)(d)(e)
UTILITY OPERATING INCOME
2 OperaUng Revenues (400)300-301 237 767,426 000,167 839
3 Operating Expenses
Operation Expenses (401)320-323 905,198,240 706,876,899
Maintenance Expenses (402)320-323 138,187 361,705
6 DepreciaUon Expense (403)336-337 73,085,675 65,095,728
Depreciation Expense for Asset Retirement Costs (403,336-337
8 Amort. & DepL of Utility Plant (404-405)336-337 502 043 682 080
9 Amort. of UUlity Plant Acq. Adj. (406)336-337 047 99,066
Amort. Property Losses, Unrecov Plant and Regulatory Study Costs (407)733
Amort. of Conversion Expenses (407)
Regulatory Debits (407.184 236 230,801
(Less) Regulatory Credits (407.785,763 12,638,745
Taxes Other Than Income Taxes (408.262-263 044 198 66,293,271
Income Taxes. Federal (409.262-263 778,732 019 926
- Other (409.262-263 017 492 302 010
Provision for Deferred Income Taxes (410.234 272-277 077 269 792,760
(Less) Provision for Deferred Income Taxes-Cr. (411.234, 272-277 4,425 562 013,788
Investment Tax Credit Adj. - Net (411.4)266 49,308 308
(Less) Gains from Disp. of Utility Plant (411.
Losses from Disp. of Utility Plant (411.
(Less) Gains from DisposiUon of Allowances (411.
Losses from Disposition of Allowances (411.
Accretion Expense (411.10)
TOTAL Utility Operating Expenses (Enter Total of lines 4 thru 24)101 864,486 887 046 672
Net Util Oper Inc (Enter Tot line 2 less 25) Carry to Pg117,Iine 27 135,902 940 113,121 167
FERC FORM NO. 2/3-0 (REV. 02-04)Page 114
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) 0 A Resubmission 04/17/2006
STATEMENT OF INCOME FOR THE YEAR (Continued)
9. Use page 122 for important notes regarding the statement of income for any account thereof.
10. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be
made to the utility's customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected
the gross revenues or costs to which the contingency relates and the tax effects together with an explanation of the major factors which affect the rights
of the utility to retain such revenues or recover amounts paid with respect to power or gas purchases.
11 Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate
proceeding affecting revenues received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income,
and expense accounts.
12. If any notes appearing in the report to stokholders are applicable to the Statement of Income, such notes may be included at page 122.
13. Enter on page 122 a concise explanation of only those changes in accounting methods made during the year which had an effect on net income,
including the basis of allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes.
14. Explain in a footnote if the previous years/quarter s figures are different from that reported in prior reports.
15. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to
this schedule.
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) 0) (k) (I)
535,268 030 447 578 339 369 930,210 259,298,560
30,159 167 28,475 946 979,020 885,759
57,591 752 50,720 406 493,923 375 322
285 954 708 236 216,089 973,844
99,047 066
733
184 236 230,801
16,785,763 638,745
46,205,269 434,772 838,929 19,858,499
28,567 999 13,754 983 789,267 735,057
101 948 135 937 915 544 166,073
917 531 664 355 994 800 128 405
566 602 939 086 141,040 74,702
308 308
683,193,506 584 988,476 418,670 980 302 058 196
111,357 723 686,037 545 217 18,435 130
FERC FORM NO.2 (ED. 12-96)Page 115
This ~ort Is: Date of Report
(1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2006
STA EMENT OF INCOME FOR THE YEAR (continued)
TOTAL
Name of Respondent
Avista Corporation
Line
No.
Title of Account
(a)
(Ref.
Page No.
(b)
27 Net Utility Operating Income (Carried forward from page 114)
28 Other Income and Deductions
29 Other Income
30 Nonulilty 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.
41 TOTAL Other Income (Enter Total of lines 31 thru 40)
42 Other Income Deductions
43 Loss on Disposition of Property (421.
44 Miscellaneous Amortization (425)
45 Donations (426.
46 Life Insurance (426.
47 Penalties (426.
48 Exp. for Certain Civic, Political & Related Activities (426.
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 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 62thru 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)
Previous Year
(d)
Year/Period of Report
End of 2005/04
Prior 3 Months
Ended
Quarterly Only
No 4th Quarter
~ ~J.1~U.~~~Jc,rif~:'
,)/
f3:
: ;:~
~:~::'t,;~
ti.i :~,-t:,i.;L,8.JLl~,~0,:, i:;,;J: !:i,~i ,iN. L:
;;;;.
C?!.!:~\!;i, iit,g-~K';r iif:~i
FERC FORM NO. 2/3-0 (REV. 02-04)Page 117
135,902 940 113 121 167
22,D42
20,984 650
052 579 220,086
-5,625 704
-6,611 524 381,428
11,041 049 10,586,797
388,777 885,496
398,103 424,383
179,185 15,024 622
160 276
182,975 323,416
874 169 512 357
686,972 1,426 086
15,530 10,038
893,627 859,247
537 552 224 942
159 925 357,362
878 313
853,876 797 319
376 668 373 290
853 172 040,980
761 854 133 706
641,404 627 384
622 144 294 644
268,237 73,356,536
509 307 689,417
252 219 611 956
202 703 782 104
569,331 389,246
689,303 567 308
87,112,494 86,261,951
45,168,302 35,153,860
168 302 153 860
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
YearlPeriod of Report
End of 2005/Q4This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)
(2) DA Resubmission 04/17/2006
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.
Line
No.
Item
(a)
UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1 Balance-Beginning of Period
2 Changes
3 Adjustments to Retained Earnings (Account 439)
6 ESOP and other adjustment
7 Dividends received from Subsidiaries
9 TOTAL Credits to Retained Earnings (Acct. 439)
12 Stock Options Exercised
15 TOTAL Debits to Retained Earnings (Acct. 439)
16 Balance Transferred from Income (Account 433 less Account 418.
17 Appropriations of Retained Earnings (Acet. 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 Acct 216., Unapprop. Undistrib. Subsidiary Earnings
38 Balance - End of Period (Total 1,15, 16 22,36,37)
Current Previous
QuarterlY ear QuarterlY ear
Contra Primary Year to Date Year to Date
Account Affected Balance Balance
(b)(c)(d)
~~~lLTh-
790 155 137
15,095 863 2,499,315
133 653 654452
788 018 408,940)
788,018 408,940)
779,826 772,432
443 242 ( 24 923,827)
443,242
699,526
130,475,915
( 24 923,827)
693,255
90,094 170
FERC FORM NO. 2/3-0 (REV. 02-04)Page 118
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2005/Q4This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)(2) DA Resubmission 04/17/2006
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.
Line
No.
Item
(a)
APPROPRIATED RETAINED EARNINGS (Account 215)
45 TOTAL Appropriated Retained Earnings (Account 215)
APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.
46 TOTAL Approp. Retained Earnings-Amort. Reserve, Federal (Acct. 215.
47 TOTAL Approp. Retained Earnings (Acct. 215, 215.1) (Total 45,46)
48 TOTAL Retained Earnings (Acct. 215, 215., 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 (Account 417.20)
53 Balance-End of Year (Total lines 49 thru 52)
Contra Primary
Account Affected
(b)
Current
Quarter/Year
Year to Date
Balance
(c)
Previous
Quarter/Year
Year to Date
Balance
(d)
548,121 548,121
548,121 548,121
211 690
611 524
095,863
699 526
804 777
022 832
381,428
499 315
693 255)
64,211 690
FERC FORM NO. 2/3-Q (REV. 02-04)Page 119
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) Ei A Resubmission 04/17/2006
STATEMENT OF CASH FLOWS
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term 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 Description (See Instruction No.1 for Explanation of Codes)Current Year to Date Previous Year to Date
No.Ouarter/Year Ouarter/Year
(a)(b)(c)
Net Cash Flow from Operating Activities:
2 Net Income (Line 78(c) on page 117)168,302 35,153 860
3 Noncash Charges (Credits) to Income:
4 Depreciation and Depletion 79,158,362 871 141
5 Amortization of deferred power and natural gas costs 629,580 11,086,920
6 Amortization of debt expense 761 526 301,374
7 Amortization of investment in exchange power 450,031 2,450,004
8 Deferred Income Taxes (Net)594 223 917,518
9 Investment Tax Credit Adjustment (Net)49,308 308
Net (Increase) Decrease in Receivables 565,111 10,751 148
Net (Increase) Decrease in Inventory 674 661 609,238
Net (Increase) Decrease in Allowances Inventory
Net Increase (Decrease) in Payables and Accrued Expenses 75,447 322 204 745
Net (Increase) Decrease in Other Regulatory Assets 8,426,825 008,005
Net Increase (Decrease) in Other Regulatory Liabilities 618,782 401,353
(Less) Allowance for Other Funds Used During Construction 078,080 3,452 804
(Less) Undistributed Earnings from Subsidiary Companies 611 523 381,428
Other (provide details in footnote):042,907 819,348
Loss from IPUC related write-off of deferred power costs 959,115
Loss from IPUC related write-off of utility plant 457 249
Gain on sale of property 398 103 424 383
Net Cash Provided by (Used in) Operating Activities (Total 2 thru 21)154 967,092 124 111,431
Cash Flows from Investment Activities:
Construction and Acquisition of Plant (including land):
Gross Additions to Utility Plant (less nuclear fuel)259,675 718 116,391 951
Gross Additions to Nuclear Fuel
Gross Additions to Common Utility Plant
Gross Additions to Nonutility Plant
(Less) Allowance for Other Funds Used During Construction
Other (provide details in footnote):
Deposits for utility plant acquisition 000,000
Cash Outflows for Plant (Total of lines 26 thru 33)259,675,718 121 391 951
Acquisition of Other Noncurrent Assets (d)
Proceeds from Disposal of Noncurrent Assets (d)014 769 1,477,634
Investments in and Advances to Assoc. and Subsidiary Companies 615,571
Contributions and Advances from Assoc. and Subsidiary Companies 18,785,415 499,315
Disposition of Investments in (and Advances to)
Associated and Subsidiary Companies
Purchase of Investment Securities (a)
Proceeds from Sales of Investment Securities (a)
FERC FORM NO.2 (ED. 12-96)Page 120
Name of Respondent This 0ort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) n A Resubmission 04/17/2006
STATEMENT OF CASH FLOWS
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term 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 Description (See Instruction No.1 for Explanation of Codes)Current Year to Date Previous Year to Date
No.OuarterNear OuarterNear
(a)(b)(c)
Loans Made or Purchased
Collections on Loans 678 616 550
Net (Increase) Decrease in Receivables
Net (Increase) Decrease in Inventory
Net (Increase) Decrease in Allowances Held for Speculation
Net Increase (Decrease) in Payables and Accrued Expenses
Changes in other property and investments 540,127 1,435 673
Net Cash Provided by (Used in) h'westing Activities
Total of lines 34 thru 55)222 320 729 117,978,350
Cash Flows from Financing Activities:
Proceeds from Issuance of:
Long-Term Debt (b)149 632 500 760 600
Preferred Stock
Common Stock 570,795 061 241
Other (provide details in footnote):
Long-term debt to affiliated trusts 856,000
Net Increase in Short-Term Debt (c)
Other (provide details in footnote):
Cash received in interest rate swap agreement 4,445 000 125 000
Cash Provided by Outside Sources (Total 61 thru 69)155,648 295 155,802 841
Payments for Retirement of:
Long-term Debt (b)56,440,903 66,186 722
Preferred Stock 750 000 750 000
Common Stock
Premiums paid for the repurchase of long-term debt 826,430 710,409
Long-term debt and short-term borrowing issuance costs 152 802 148,807
Net Decrease in Short-Term Debt (c)000,000 000,000
Long-term debt to affiliated trusts 856,000
Dividends on Preferred Stock
Dividends on Common Stock 26,443 249 -24,912,464
Net Cash Provided by (Used in) Financing Activities
(Total of lines 70 thru 81)
Net Increase (Decrease) in Cash and Cash Equivalents
(Total of lines 22 57 and 83)318,726 628,480
Cash and Cash Equivalents at Beginning of Period 955 531 584,011
Cash and Cash Equivalents at End of period 363,195 955,531
FERC FORM NO.2 (ED. 12-96)Page 121
Name of Respondent
Avista Corporation
Date of Report
04/17/2006
Year/Period of Report
End of 2005/04
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.
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 Resubmisslon 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corporation (A vista Corp. or the Company) is an energy company engaged in the generation, transmission and distribution of
energy as well as other energy-related businesses. Avista Corp. is an operating division of Avista Corp., comprising the regulated
utility operations. A vista Corp. generates, transmits and distributes electricity in parts of eastern Washington and northern Idaho. In
addition, Avista Corp. has electric generating facilities in western Montana and northern Oregon. Avista Corp. also provides natural
gas distribution service in parts of eastern Washington and northern Idaho, as well as parts of northeast and southwest Oregon. In
April 2005, the Company completed the sale of its South Lake Tahoe, California natural gas distribution properties (see Note 24 for
further information). This was the Company s only regulated utility operation in California. Avista Capital, a wholly owned
subsidiary of A vista Corp., is the parent company of all 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 fmancial, liquidity, credit and
price risks associated with wholesale purchases and sales of energy commodities.
Basis of Reporting
The fmancial statements include the assets, liabilities, revenues and expenses of the Company. As required by the Federal Energy
Regulatory Commission (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 fmancial 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 (1)
current portions of long-tenD debt, short-tenD 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 confonnity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect amounts reported in the financial statements. Significant
estimates include determining the market value of energy commodity derivative assets and liabilities, pension and other postretirement
benefit plan obligations, contingent liabilities, recoverability of regulatory assets and unbilled revenues. 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 Company s utility operations are maintained in accordance with the unifonn system of accounts
prescribed by the Federal Energy Regulatory Commission and adopted by the appropriate state regulatory commissions.
Regulation
The Company is subject to state regulation in Washington, Idaho, Montana and Oregon. The Company is also subject to federal
regulation by the FERC.
Operating Revenues
Operating revenues 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 $13.1 million (net of$57.1 million ofunbilled receivables sold) and $13.0 million (net of$48.9 million ofunbilled
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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
receivables sold) as of December 31 , 2005 and 2004, respectively. See Note 3 for information with respect to the sale of accounts
receivable.
Advertising Expenses
The Company expenses advertising costs as incurred. Advertising expenses were not a material portion of the Company s operating
expenses in 2005, 2004 and 2003.
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 (primarily state excise taxes and city utility taxes) are recorded as both operating revenue and expense and
totaled $43.1 million, $35.0 million and $31.7 million in 2005 2004 and 2003, 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 SF AS No. 109, a deferred tax asset or liability is detennined 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 commissions.
Stock-Based Compensation
Prior to January 1 , 2006, the Company followed the disclosure only provisions of SFAS No. 123
, "
Accounting for Stock-Based
Compensation." Accordingly, employee stock options were 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. Under APB No. 25, no compensation expense was recognized pursuant to the Company s stock option plans.
However, the Company recognized compensation expense related to the initial grant (2003) of performance-based share awards. See
Note 2 with respect to the revision of SFAS No. 123 , which will result in changes to stock compensation recognition beginning in
2006.
If compensation expense for the Company s stock-based employee compensation plans were deternrined consistent with SFAS No.
123, net income and earnings per common share would have been the following pro forma amounts for the years ended December 31:
2005 2004 2003
Net income (dollars in thousands):
As reported
Add: Total stock-based employee compensation
expense included in net income, net of tax
Deduct: Total stock-based employee
compensation expense deternrined under the
fair value method for all awards, net of tax
Pro forma
Basic and diluted earnings per common share:
Basic as reported
Diluted as reported
Basic pro forma
Diluted pro forma
I FERC FORM NO.(ED. 12-88)
$45 168 $35 154 $44 504
211
(2,911 )
$44.468
(2.033)
$33.121
if..llil
$42.318
$0.
$0.
$0.
$0.
$0.
$0.
$0.
$0.
$0.
$0.
$0.
$0.
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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Earnings Per Common Share
Basic earnings per common share is computed by dividing income available for common stock by the weighted average number of
common shares outstanding for the period. Diluted earnillgs per common share is calculated by dividing income available for common
stock by diluted weighted average common shares outstanding during the period, including common stock equivalent shares
outstanding using the treasury stock method, unless such shares are anti-dilutive. Common stock equivalent shares include shares
issuable upon exercise of stock options and contingent stock awards. See Note 20 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 of three months or
less when purchased to be cash equivalents. Cash and cash equivalents include cash deposits from counterparties.
Special Deposits
Special deposits includes $3.8 million and $0.6 million of deposits related to Avista Corp.'s interest rate swap agreements as of
December 31, 2005 and 2004, respectively. See Note 14 for further infonnation with respect to Avista Corp.'s interest rate swap
agreements.
Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable. The
Company determines the allowance for utility and other customer accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues. Additionally, the Company establishes specific allowances for certain individual
accounts. The following table documents the activity in the allowance for doubtful accounts during the years ended December 31
(dollars in thousands):
Allowance as of the beginning of the year
Additions expensed during the year
Net deductions
Allowance as of the end of the year
2005
810
752
(2.334
$3.228
2004
281
195
(2.666
$2.810
2003
689
762
(2.170)
$2.281
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 in service, including an allowance for funds used during construction and replacements of units of
property and improvements, is capitalized. Costs of depreciable units of property retired plus costs of removal less salvage are charged
to accumulated depreciation.
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 in the line item capitalized interest. The Company generally is pennitted, 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 2005 2004 and 2003. The Company s AFUDC rates do not exceed the maximum
allowable rates as determined in accordance with the requirements of regulatory authorities.
Depreciation
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing unit rates for generation
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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
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 2.93 percent in 2005 , 2.
percent in 2004 and 2.98 percent in 2003.
The average service lives for the following broad categories of utility property are: electric thermal production - 29 years;
hydroelectric production - 77 years; electric transmission - 43 years; electric distribution - 47 years; and natural gas distribution
property - 36 years.
The Company recovers certain asset retirement costs through rates charged to customers as a portion of its depreciation expense for
which the Company has not recorded asset retirement obligations (see Note 7). 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 SFAS No. 71
, "
Accounting for the Effects of
Certain Types of Regulation." The Company prepares its financial 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) the
regulated rates are designed to recover the Company s cost of providing the regulated services; and (iii) in view of demand for the
regulated services and the level of competition, it is reasonable to assume that rates can be charged to and collected from customers at
levels that will recover the Company s costs. SFAS 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 or credits 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 detennines that it no longer meets the criteria for continued
application of SF AS 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, regulatory asset for consolidation of variable interest
entity, 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 $5.6 million
as of December 31 2005.
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 utility energy commodity derivative assets (see Note 4 for
further infonnation) and the gain on the general office building sale/leaseback.
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 tenninated prior to completion. Under a settlement agreement with the Bonneville Power
Administration in 1985, Avista Corp. began receiving power in 1987, for a 32.5-year period, related to its investment in WNP-
Through a settlement agreement with the Washington Utilities and Transportation Commission (WUTC) in the Washington
jurisdiction, Avista 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.
Unamortized Debt Expense and Unamortized Loss on Reacquired Debt
Unamortized debt expense includes debt issuance costs that are amortized over the life of the related debt, as well as premiums paid to
repurchase debt, which are amortized over the average remaining maturity of outstanding debt in accordance with regulatory
accounting practices under SFAS No. 71. These costs are recovered through retail rates as a component of interest expense.
I FERC FORM NO.(ED. 12-88) Page 123.4
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Natural Gas Benchmark Mechanism
The Idaho Public Utilities Commission (IPUC), WUTC and Oregon Public Utility Commission (OPUC) approved Avista Corp.'s
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, the Company s non-regulated
subsidiary. The ownership of the natural gas assets remained with A vista Corp.; however, the assets were managed by A vista Energy
through an Agency Agreement. Avista Corp. always managed natural gas procurement for its California operations, which the
Company sold in April 2005 (see Note 24).
Effective April 1 , 2005 , the Natural Gas Benchmark Mechanism and related Agency Agreement were terminated and the management
of natural gas procurement functions was moved from A vista Energy back to A vista Corp. This was required for Washington
customers by WUTC orders issued in February 2004, and Avista Corp.'s resulting transition plan approved by the WUTC in April
2004. The Company also elected to move these functions back to A vista Corp. for Idaho and Oregon natural gas customers.
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). Avista Corp. accrues interest on deferred power costs in the Washington jurisdiction at a rate, which is adjusted semi-alIDually,
of 8.1 percent as of December 31 2005. Total deferred power costs for Washington customers were $96.2 million and $113.2 million
as of December 31 2005 and 2004, respectively.
In Washington, the Energy Recovery Mechanism (ERM) allows Avista Corp. to increase or decrease electric rates periodically with
WUTC approval to reflect changes in power supply costs. The ERM provides for Avista Corp. to incur the cost of, or receive the
benefit from, the fIrst $9.0 million in alIDual power supply costs above or below the amount included in base retail rates. Under the
ERM, 90 percent of alIDual 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 alIDual 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 June 2005, the
WUTC issued an order, which approved the recovery of the $10.8 million of deferred power costs incurred for 2004.
Avista 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, Avista Corp. defers 90 percent of the difference between certain actual net power supply
expenses and the authorized level of net power supply expense. A vista Corp. accrues interest on deferred power costs in the Idaho
jurisdiction at a rate, which is adjusted alIDually, of 2.0 percent on current year deferrals and 4.0 percent on carryover balances as of
December 31 2005. Total deferred power costs for Idaho customers were $8.0 million and $9.5 million as of December 31 2005 and
2004, respectively.
Natural Gas Cost Deferrals and Recovery Mechanisms
Under established regulatory practices in each respective state, Avista 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 $43.4 million and $28.6 million as of December 31 , 2005
and 2004, respectively.
Reclassifications
Certain prior period amounts were reclassified to conform to current statement format. These reclassifications were made for
comparative purposes and have not affected previously reported total net income or stockholders ' equity.
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 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 2. NEW ACCOUNTING STANDARDS
In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123R
, "
Share-Based Payment " which
supersedes APB No. 25 and SFAS No. 123 and their related implementation guidance. This statement establishes revised 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 fmancial statements based on the fair value of the
equity or liability instruments issued. The provisions of this statement are effective beginning in the fIrSt quarter of 2006. The
Company expects to record compensation expense (net of tax) of approximately $0.4 million in 2006 related to the periodic vesting of
stock options granted to employees prior to 2005. The Company also expects to record compensation expense (net of tax)
approximately $1.7 million, $1.1 million and $0.5 million in 2006 2007 and 2008, respectively, for performance share awards granted
to employees in 2004, 2005 and the fIrSt quarter of 2006.
In March 2005, the FASB issued Interpretation No. 47
, "
Accounting for Conditional Asset Retirement Obligations, an interpretation of
F ASB Statement No. 143" (FIN 47). FIN 47 clarifies that the term "conditional asset retirement obligation" refers to a legal obligation
to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that mayor
may not be within the control of the Company. Under FIN 47, the Company is required to recognize a liability for the fair value of a
conditional asset retirement obligation if the fair value of the liability can be reasonably estimated. FIN 47 also clarifies when the
Company would have sufficient information to reasonably estimate the fair value of an asset retirement obligation. The Company
adopted FIN 47 as of December 31 2005, the effects of which are disclosed in Note 7.
NOTE 3. ACCOUNTS RECEIVABLE SALE
Avista Receivables Corporation (ARC) is a wholly owned, bankruptcy-remote subsidiary of Avista Corp. formed for the purpose of
acquiring or purchasing interests in certain accounts receivable, both billed and unbilled, of the Company. On March 22 2005, Avista
Corp., ARC and a third-party fmancial institution amended a Receivables Purchase Agreement. The most significant amendment was
to extend the termination date from May 29 2005 to March 21 , 2006. Under the Receivables Purchase Agreement, ARC can sell
without recourse, on a revolving basis, up to $85.0 million of those receivables. ARC is obligated to pay fees that approximate the
purchaser s cost of issuing commercial paper equal in value to the interests in receivables sold. The amount of such fees is included in
operation expenses of Avista Corp. As of December 31 2005 and 2004, $85.0 million and $72.0 million in accounts receivables were
sold, respectively, under this revolving agreement.
NOTE 4. UTILITY ENERGY COMMODITY DERIVATIVE ASSETS AND LIABILITIES
SFAS No. 133
, "
Accounting for Derivative Instruments and Hedging Activities " as amended, 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 derIDed conditions, a derivative may be specifically designated as a hedge for
a particular exposure. The accounting for derivatives depends on the intended use of the derivatives and the resulting designation.
Avista Corp. enters into forward contracts to purchase or sell energy. Under these forward contracts, Avista 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 orders provide 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 nonnal 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
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
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
detennined 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
Net current regulatory liability
Non-current utility energy commodity derivative asset
Non-current utility energy commodity derivative liability
Net non-current regulatory liability
2005
$69 494
447
047
731
643
2004
$12 557
071
486
825
490
335
NOTE 5. ENERGY COMMODITY TRADING
The Company is exposed to risks relating to, but not limited to, changes in certain commodity prices, interest rates, foreign currency
and counterparty perfonnance. Avista Corp. utilizes derivative instruments, such as forwards, futures, swaps and options in order to
manage the various risks relating to these exposures. A vista Corp. uses a variety of techniques to manage risks for its 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.
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 (1) future retail and wholesale loads based on, among other things, forward estimates of
factors such as customer usage and weather as well as historical data and contract terms and (2) resource availability based on, among
other things, estimates of streamflows, generating unit availability, historic and forward market information and experience. On the
basis of these continuing projections, A vista Corp. makes purchases and sales of energy on an annual, quarterly, montWy, 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.
As part of its resource optimization process described above, 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 detennines 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. Avista
Energy was 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. Effective April 1, 2005, the management of natural gas procurement functions was moved
from Avista Energy back to Avista Corp. This was required for Washington customers by WUTC orders issued in February 2004, and
Avista Corp.'s resulting transition plan approved by the WUTC in April 2004. The Company also elected to move these functions
back to A vista Corp. for Idaho and Oregon natural gas customers. The natural gas procurement process includes entering into fmancial
and physical hedging transactions as a means of managing risks. A vista Corp. always managed natural gas procurement for its
California operations, which the Company sold in April 2005 (see Note 24).
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
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 perfonnance or nonperfonnance by market participants of their contractual obligations and
commitments affect the supply of, or demand for, the commodity. A vista Corp. 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. Avista Corp. often extends credit to counterparties and customers and is
exposed to the risk that it may not be able to collect amounts owed. Changes in market prices may dramatically alter the size of credit
risk with counterparties, even when conservative credit limits have been established. 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 perform, Avista Corp. may be required to replace existing contracts with contracts at then-current market prices or to honor the
underlying commitment. Avista 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 financial 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 takes steps to minimize capital requirements.
Other Operating Risks
In addition to market and credit risk, A vista Corp.' s commodity positions are subject to operational and event risks including, among
others, increases or decreases in load demand, blackouts or disruptions to transmission or transportation systems, fuel quality, 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. Terrorism threats, both domestic and foreign. is a risk to the entire utility industry, including Avista
Corp. Potential disruptions to operations or destruction of facilities from terrorism or other malicious acts are not readily
detenninable. 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
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 fInancing for its ownership interest in the project. The Company s share of
related fuel costs as well as operating expenses for plant in service are included in the corresponding accounts in the Statements of
Income. The Company s share of utility plant in service for Colstrip was $323.9 million and accumulated depreciation was $183.
million as of December 31, 2005.
NOTE 7. ASSET RETIREMENT OBLIGATIONS
The Company follows SFAS No. 143
, "
Accounting for Asset Retirement Obligations" which requires the recording of the fair value of
a liability for an asset retirement obligation in the period in which it is incurred. When the liability is initially recorded, the associated
costs of the asset retirement obligation are capitalized as part of the carrying amount of the related long-lived asset. The liability is
accreted to its present value each period and the related capitalized costs are depreciated over the useful life of the related asset. Upon
retirement of the asset, the Company either settles the retirement obligation for its recorded amount or incurs a gain or loss. As asset
retirement costs are recovered through rates charged to customers, the Company records regulatory assets and liabilities for the
I FERC FORM NO.(ED. 12-Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
difference between asset retirement costs currently recovered in rates and asset retirement obligations recorded under SF AS 143. The
regulatory assets do not earn a return. The adoption of SFAS No. 143 on January 1 , 2003 did not have a material effect on the
Company s fmancial condition, results of operations or cash flows.
As described in Note 2, the Company adopted FIN 47 as of December 31 2005 , which has resulted in the recording of additional asset
retirement obligations under SFAS No. 143. Specifically, the Company has recorded liabilities for future asset retirement obligations
to (1) restore ponds at Colstrip (2) remove plant and restore the land at the Coyote Springs 2 site at the tennination of the land lease (3)
remove asbestos at the corporate office building and (4) dispose of PCBs in certain transfonners. With the adoption of FIN 47, the
Company recorded an asset retirement obligation of $3.2 million, a regulatory asset of $2.7 million, capitalized asset retirement costs
of $1.0 million and related accumulated depreciation of $0.5 million. Due to an inability to estimate a range of settlement dates, the
Company cannot estimate a liability for removal and disposal of certain transmission and distribution assets, as well as abandonment
and decommissioning of certain hydroelectric generation and natural gas storage facilities.
The following table documents the changes in the Company s asset retirement obligation during the years ended December 31 (dollars
in thousands):
Asset retirement obligation at beginning of year
Asset retirement obligation recognized
Asset retirement obligation settled
Asset retirement obligation accretion expense
Asset retirement obligation at end of year
2005
191
243
(28)
--.ill
$4.529
2004
$ 660
483
(20)
--.Maill
The pro forma asset retirement obligation liability balances as if FIN 47 had been adopted on January 1 2004 (rather than December
2005) are as follows (dollars in thousands):
Pro forma asset retirement obligation as of January 1 , 2004
Pro forma asset retirement obligation as of December 31 2004
538
246
NOTE 8. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The Company has a defined benefit pension plan covering substantially all of its regular full-time employees at A vista 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 each of 2005 and 2004, and $12 million in
2003. The Company expects to contribute $15 million to the pension plan in 2006.
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 manager s 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 in this Note.
The assumed long-tenD 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 detennined 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 detennined as of
December 31 2005 and 2004.
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 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
As of December 31 , 2005 and 2004, 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 2005 , the pension plan funding deficit increased as compared to the end of 2004 and
as such the Company increased the additional minimum liability for the unfunded accumulated benefit obligation by $2.8 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 $2.3 million, net of taxes of $1.2 million for 2005. In 2004, the pension
plan funding deficit increased as compared to the end of 2003 and 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$9.7 million, net of taxes of$5.2 million for 2003.
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 $0.
million, $1.8 million and $0.3 million related to the SERP for 2005 2004 and 2003, respectively. This resulted in a charge to other
comprehensive income of $0.4 million, $1.2 million and $0.2 million, net of tax, for 2005, 2004 and 2003, respectively.
The Company expects that benefit payments under the pension plan and the SERP will total $14.7 million, $15.6 million, $15.
million, $16.4 million and $18.0 million in 2006 2007 2008 2009 and 2010, respectively. For the ensuing five years (2011 through
2015), the Company expects that benefit payments under the pension plan and the SERP will total $109.6 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 $2.7 million, $2.6 million, $2.5 million, $2.3 million and $2.2 million in 2006, 2007, 2008, 2009
and 2010, respectively. For the ensuing five years (2011 through 2015), the Company expects that benefit payments under the
postretirement benefit plan will total $9.6 million. The Company expects to contribute $2.7 million to the postretirement benefit plan
in 2006, representing expected benefit payments to be paid during the year.
The Company established a Health Reimbursement Arrangement to provide employees with tax-advantaged funds to pay for allowable
medical expenses upon retirement. The amount earned by the employee is fIXed on the retirement date based on employees' years of
service and the ending salary. The liability and expense of this plan are included as post-retirement benefits.
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, 2005 and 2004 and the components of net periodic benefit costs for
the years ended December 31, 2005, 2004 and 2003 (dollars in thousands):
Pension Benefits2005 2004
Post -retirement Benefits2005 2004
Change in benefit obligation:
Benefit obligation as of beginning of year $285 738 $265 790 $31 868 $39 185
Service cost 480 914 566 480
Interest cost 228 406 652 019
Plan amendment 263)
Actuarial loss (gain)049 737 800)464)
Benefits paid (14 932)(13 309)293)042)
Expenses paid 817 (800)--LJQ) -1ffi
Benefit obligation as of end of year $301.746 $285.738 $28.963 $31.868
FERC FORM NO.ED. 12-Page 123.10
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da , Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Pension Benefits Post -retirement Benefits
2005 2004 2005 2004
Change in plan assets:
Fair value of plan assets as of beginning of year $186 579 $167 962 $16 862 $14 587
Actual return on plan assets 460 816 236 882
Employer contributions 000 000 183 964
Benefits paid (14 059)(12 399)(873)(1,524)
Expenses paid (817)800)-ill)-H11
Fair value of plan assets as of end of year $199.163 $186.579 $18.378 $16.862
Funded status $(102 583)$(99 159)$(10 585)$(15 006)
Unrecognized net actuarial loss 667 604 973 009
Unrecognized prior service cost 405 058
Unrecognized net transition obligation/(asset)536 041
Accrued benefit cost (18 511)(20 996)076)956)
Additional minimmn liability 1.1
Accrued benefit liability $(53.106)$( 52.108)$(6.076)$(4.956)
Accumulated pension benefit obligation $252.269 $238.687
Accumulated postretirement benefit obligation:
Forretirees $14 662 $18 914
For fully eligible employees 980 672
For other participants 321 282
Weighted-average asset allocations as of December 31:
Equity securities 63%63%62%64%
Debt securities 27%26%36%36%
Real estate
Other
Target asset allocations as of December 31:
Equity securities 54-68%54-68%52-72%52-72%
Debt securities 22-28%22-28%28-48%28-48%
Real estate
Other 13%13%
Weighted Average Assumptions as of December 31:
Discount rate for benefit obligation 75%75%75%75%
Discount rate for annual expense 75%6.25%75%25%
Expected long-term return on plan assets 50%00%50%00%
Rate of compensation increase (1)84%84%
Medical cost trend pre-age 65 - initial 00%00%
Medical cost trend pre-age 65 - ultimate 00%00%
Ultimate medical cost trend year pre-age 65 2010 2009
Medical cost trend post-age 65 - initial 00%00%
Medical cost trend post-age 65 - ultimate 00%00%
Ultimate medical cost trend year post-age 65 2009 2008
(1) In 2004, changed to an age-based scale ranging fiom 2.50 percent to 8.00 percent.
I FERC FORM NO.2 (ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmlssion 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
2005 2004 2003 2005 2004 2003
Components of net periodic benefit cost:
Service cost $ 9 480 $ 8 914 $ 7 806 566 $ 480 $ 482
Interest cost 228 406 705 652 019 477
Expected return on plan assets (15 917)(13 436)(10 862)368)106)(842)
Transition (asset)/ob1igation recognition (499)(1,086)086)505 505 979
Amortization of prior service cost 654 654 653
Net loss recognition 3,442 3,447 896 245 405
Net periodic benefit cost $13.388 $14.899 $16.112 iLill $2.143 $3.501
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 , 2005 by $1.4 million and the service and interest cost by $0.1 million. A one-percentage-point
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
of December 31, 2005 by $1.2 million and the service and interest cost by $0.1 million.
The Company has a salary deferraI401(k) plan that is a derIDed contribution plan and covers substantially all employees. Employees
can make contributions to their respective accounts in the 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 plan. Employer matching
contributions of$4.1 million, $3.9 million and $3.6 million were expensed in 2005 , 2004 and 2003, 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 payments. Deferred compensation funds are held by the Company in a Rabbi Trust. At each of December 31 2005 and
2004, there were deferred compensation assets of $11.3 million included in other special funds and corresponding deferred
compensation liabilities of $11.3 million included in other deferred credits on the Balance Sheets.
NOTE 9. ACCOUNTING FOR INCOME TAXES
As of December 31 , 2005 and 2004, the Company had net regulatory assets of$114.1 million and $123.2 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.
In August 2005, the Internal Revenue Service (IRS) and Treasury Department issued a revenue ruling, and related regulations that
affect the tax treatment by Avista Corp. of certain indirect overhead expenses. Avista Corp. had previously made a tax election to
deduct certain indirect overhead costs on the 2002 tax return that were capitalized for fmancial accounting purposes. This election
allowed A vista Corp. to accelerate tax deductions resulting in a reduction of approximately $40 million in current tax liabilities. This
current tax benefit was deferred on the balance sheet in accordance with provisions of SF AS No. 109
, "
Accounting for Income Taxes
and did not have an effect on net income.
A vista Corp. believes that the revenue ruling and related regulations requires the Company to repay the original tax deductions over a
two-year period (in 2005 and 2006) and that the tax deductions claimed on the Company s tax returns were appropriate based on the
applicable statutes and regulations in effect at the time. There can be no assurance that the Company s position will prevail. However
it is not expected to have a significant effect on the Company s net income.
I FERC FORM NO.2 (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 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 10. ENERGY PURCHASE CONTRACTS
A vista Corp. has contracts related to the purchase of fuel for thennal generation, natural gas and various agreements for the purchase
sale or exchange of electric energy with other entities. The ternrination dates of the contracts range from one month to the year 2055.
Total expenses for power purchased, natural gas purchased, fuel for generation and other fuel costs, which are included in operation
expenses in Statements of Income, were $652.2 million, $482.2 million and $464.1 million in 2005 2004 and 2003, respectively. The
following table details Avista Corp.'s future contractual conunitments for power resources (including transmission contracts) and
natural gas resources (including transportation contracts) (dollars in thousands):
Power resources
~atural gas resources
Total
2006
$104 684
259.100
$363.784
2007
$103 869
58.133
$162.002
2008
$103 546
44.067
$147.613
2009
$104 641
39.711
$144.352
2010
$104 674
39.460
$144.134
Thereafter Total
$375 282 $ 896 696
352,155 792,626
$727.437 $1.689.322
All of the energy purchase contracts were entered into as part of A vista 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.
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 conunitments with respect to these agreements (dollars in thousands):
Contractual obligations
2006
$14.265
2007
289
2008
314
2009 2010 Thereafter
194 889
Total
266 708
Avista Corp. has fixed contracts with certain Public Utility Districts (PUD) to purchase portions of the output of certain generating
facilities. Although Avista Corp. has no investment in the PUD generating facilities, the fixed contracts obligate Avista 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 ofIncome. Expenses under these PUD contracts were $9.0 million, $7.3 million and $8.5 million in 2005 2004 and
2003, respectively. Infonnation as of December 31, 2005 pertaining to these PUD contracts is summarized in the following table
(dollars in thousands):
Companv s Current Share of
Debt Expira-
Kilowatt Annual Service Bonds tion
abili Costs (1)Costs (1)Outstandin Date
Chelan County PUD:
Rocky Reach Project 000 984 987 637 2011
Douglas County PUD:
Wells Project 000 090 640 635 2018
Grant County PUD:
Priest Rapids Project 000 643 773 892 2055
WanapumProject 75,000 3.257 1.795 23,821 2055
Totals 197.000 $45.985
(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 2005. Debt service costs are included in arumal costs.
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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
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
2006
587
2007
938
2008
966
2009
986
2010
605
Thereafter Total
$83.043
In addition, Avista Corp. will be required to pay its proportionate share of the variable operating expenses of these projects.
NOTE 11. LONG-TERM DEBT
The following details the interest rate and maturity dates of bonds and other long-tenn debt outstanding as of December 31 (dollars in
thousands):
Maturity Interest
Year Description Rate 2005 2004
2005 Secured Medium- Tenn Notes 6.39%-68%$ 29 500
2006 Secured Medium- Tenn Notes 89%-90%000 000
2007 First Mortgage Bonds 75%150 000 150 000
2007 Secured Medium- Tenn Notes 99%850 850
2008 Secured Medium-Tenn Notes 06%-95%000 000
2010 Secured Medium-Tenn Notes 67%-02%000 000
2012 Secured Medium- Tenn Notes 37%000 000
2013 First Mortgage Bonds 13%000 000
2018 Secured Medium-Tenn Notes 26%-7.45%500 500
2019 First Mortgage Bonds 5.45%000 000
2023 Secured Medium-Tenn Notes 7.18%-7.54%500 500
2028 Secured Medium- T enn Notes 6.37%000 000
2032 Pollution Control Bonds 00%700 700
2034 Pollution Control Bonds 13%000 000
2035 First Mortgage Bonds (1)25%150.000
Total secured long-tenn debt 710.550 606.050
2006 Unsecured Medium-Tenn Notes 8.14%000 000
2007 Unsecured Medium-Tenn Notes 90%-94%000 000
2008 Unsecured Senior Notes 75%279 735 279 735
2022 Unsecured Medium- Tenn Notes 8.15%000
2023 Unsecured Medium- Tenn Notes 99%000
2023 Pollution Control Bonds 00%4.100 100
Total unsecured 10ng-tenn debt 303.835 313.835
Interest rate swaps 236 1.092
Committed line of credit 63,000 68,000
Preferred stock 28.000 29,750
Totallong-tenn debt $1.110.621 $1.018.727
(1) During the fourth quarter of 2005, the Company issued $150.0 million of 6.25 percent First Mortgage Bonds due in 2035. The
proceeds from the issuance were used to repay a portion of the borrowings outstanding under the Company s $350.0 million committed
line of credit and for the payment of corporate obligations.
The following table details future 10ng-tenn debt maturities, not including interest rate swaps, the committed line of credit or preferred
stock (dollars in thousands):
Year
Debt maturities
2006
000
2007
175 850
2008
324 735
2009 2010
000
Thereafter Total
$440.800 $1.014.385
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmisslon 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
In April 2004, the Company filed an amended registration statement on Fonn S-3 with the Securities and Exchange Conmrission
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, 2005, the Company had remaining
availability of $1 09.6 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 Medium-Tenn 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 earnings to First Mortgage Bond interest ratio. As of December 31 2005
the Company could issue $285.5 million of additional First Mortgage Bonds under the Mortgage and Deed of Trust. See Note 13 for
information regarding First Mortgage Bonds issued to secure the Company s obligations under its $350.0 million conmritted line of
credit.
NOTE 12. ADVANCES 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 fonned by the Company. Concurrently, A VA 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 fonned
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 Avista Capital II, an affiliated business trust fonned by the Company. Avista Capital II issued $50.0 million of
Preferred Trust Securities with a floating distribution rate of LIBOR plus 0.875 percent, calculated and reset quarterly. The annual
distribution rate paid during 2005 ranged from 3.275 percent to 5.285 percent. As of December 31, 2005, the annual distribution rate
was 5.285 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 Avista 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 A VA 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.
NOTE 13. COMMITTED LINE OF CREDIT
On December 17, 2004, the Company entered into a conmritted line of credit agreement with various banks in the amount of $350.
million with an expiration date of December 16, 2009. This conmritted line of credit replaced a $350.0 million conmritted line of
credit with a 364-day tenn 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, 2005 and 2004, there were $44.1 million and $32.8 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 committed line of credit.
The conmritted 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 any
I FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
fiscal quarter. As of December 31, 2005, the Company was in compliance with this covenant with a ratio of 60.2 percent. The
committed line of credit also has a covenant requiring the ratio of "earnings before interest, taxes, depreciation and amortization" to
interest expense" of Avista Corp. for the twelve-month period ending December 31, 2005 to be greater than 1.6 to 1. As of December
2005, the Company was in compliance with this covenant with a ratio of2.46 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
2005
$63 000
167 000
181
4.45%
5.48
2004
$68 000
170 000
858
14%
2003
$80 000
000
034
99%
NOTE 14. INTEREST RATE SWAP AGREEMENTS
In 2004, Avista Corp. entered into three forward-starting interest rate swap agreements, totaling $200.0 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 detemrined based upon Avista Corp. paying a fIXed rate and receiving a variable rate.based on LIB OR for a
term of seven years beginning in 2007 and a term of ten years beginning in 2008. The interest rate swap agreements entered in 2004
provide for mandatory cash settlement of these contracts in 2008 and 2009. In June 2005, Avista Corp. entered into a forward-starting
interest rate swap agreement in the amount of $50.0 million related to the anticipated issuance of debt to fund debt that matured during
the second half of 2005. This interest rate swap agreement was cash settled in 2005 and the Company received $4.4 million, which has
been deferred as a regulatory liability (part of long-term debt) and will be amortized over the 30-year life of the new debt issued in
accordance with regulatory accounting practices.
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 , 2005, Avista Corp. had a long-term derivative liability of$10.0 million.
As of December 31, 2005, there was an unrealized loss of $6.5 million recorded as 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 the Statements of Accumulated Comprehensive Income and
Hedging Activities. If regulatory accounting orders are not obtained prior to the mandatory cash settlements, the amount included in
accumulated other comprehensive income or loss at the cash settlement date will be reclassified to a regulatory liability (part of
long-term debt) in accordance with regulatory accounting practices under SF AS No. 71. This gain or loss will be amortized over the
remaining life of the forecasted debt issued.
NOTE 15. LEASES
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from one to forty-five years.
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 2005, 2004 and 2003 was $8.0 million, $12.
million and $13.4 million, respectively.
In November 2005, the Company temrinated its lease agreement related to its corporate headquarters and central operating facility.
Lease payments were approximately $2.3 million per year. In conjunction with the temrination of the lease agreement, the Company
purchased its corporate headquarters and central operating facility.
WP Funding LP was formed in 1993 for the purpose of acquiring the natural gas-fIred combustion turbine generating facility in
Rathdrum, Idaho (Rathdrum CT). WP Funding LP purchased the Rathdrum CT from A vista Corp. with funds provided by unrelated
I FERC FORM NO.ED. 12-Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
investors of which 97 percent represented debt and 3 percent represented equity. Avista Corp. operated the Rathdrum CT and leased it
from WP Funding LP until September 2005. In September 2005, A vista Corp. tenninated (by exercise of a purchase option) the lease
agreement with, and acquired the Rathdrum CT from, WP Funding LP. Lease payments were approximately $4.7 million per year.
Future minimwn lease payments required under operating leases having initial or remaining noncancelable lease tenns in excess of one
year as of December 31 2005 were as follows (dollars in thousands):
Year endin December 31
Minimwn payments required
2006 2007
$1.866 $1.3
2008 2009
$1.222 $1.085
2010
223
Thereafter Total
$8.113
The payments under capita11eases are $1.1 million in 2006, $1.0 million in each of2007 and 2008, and $0.1 million in 2009.
Equipment under capita11eases totaled $5.6 million and $5.3 million as of December 31 2005 and 2004, respectively. The associated
accwnulated depreciation totaled $1.1 million and $0.5 million as of December 31, 2005 and 2004, respectively.
NOTE 16. 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, AVA 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 perfonnance of
Avista Energy.
NOTE 17. PREFERRED STOCK-CUMULATIVE (SUBJECT TO MANDATORY REDEMPTION)
In September 2005, the Company made a mandatory redemption of 17 500 shares of preferred stock for $1.75 million. 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. On September 15
2006, the Company must redeem 17 500 shares at $100 per share plus accwnulated dividends through a mandatory sinking fund. As
such, redemption requirements are $1.75 million for 2006. The remaining shares must be redeemed on September 15, 2007 for $26.
million. 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.
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.
NOTE 18. 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 Company s secured and unsecured long-term debt as of December 31 , 2005 and 2004 was estimated to be
063.0 million, or 105 percent of the carrying value of$1 014.4 million, and $998.7 million, or 108 percent of the carrying value of
$921.0 million, respectively. The fair value of the Companys mandatorily redeemable preferred stock as of December 31 2005 and
2004 was estimated to be $28.6 million, or 102 percent of the carrying value of$28.0 million, and $32.0 million, or 107 percent of the
carrying value of $29.8 million, respectively. The fair value of the Company s long-term debt to affiliated trusts (included in advances
I FERC FORM NO.2 (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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
to associated companies) as of December 31 2005 and 2004 was estimated to be $104.6 million, or 95 percent of the carrying value of
$110.0 million, and $108.3 million, or 98 percent of the carrying value of $110.0 million, respectively. The carrying value as of
December 31, 2005 and 2004 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 19. 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, were 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 repaid during 2005.
The shares of common stock were allocated to the accounts of participants in the Plan as the note was repaid. During 2005 , 2004 and
2003, the cost recorded for the Plan was $1.7 million, $6.2 million and $6.9 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 less than $0.1 million, $0.4
million and less than $0.1 million, respectively, during 2005. 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.
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 $0.01 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.
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.
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.
I FERC FORM NO.2 (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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 20. 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):
2005 2004 2003
Numerator:
Income from continuing operations $45 168 $35 614 $50 643
Loss from discontinued operations (4.949)
Net income before cumulative effect of accounting change 168 614 694
Cumulative effect of accounting change -HQill .Q...l2ID
Net income 168 154 504
Preferred stock dividend requirements 1Lill1
Income available for common stock $45.168 154 $43.379
Denominator:
Weighted-average number of common shares
outstanding-basic 523 400 232
Effect of dilutive securities:
Contingent stock awards 198 209 244
Stock options ----1:l1 ----121
Weighted-average number of common shares
outstanding-diluted 48.979 48.886 48.630
Earnings per common share, basic:
Earnings from continuing operations $0.$0.$1.03
Loss from discontinued operations (0.10)
Earnings before cumulative effect of accounting change
Loss from cumulative effect of accounting change (o.(0.03)
Total earnings per common share, basic $0.$0.$0.
Earnings per common share, diluted:
Earnings from continuing operations $0.$0.$1.02
Loss from discontinued operations (0.10)
Earnings before cumulative effect of accounting change
Loss from cumulative effect of accounting change illJill (0.03)
Total earnings per common share, diluted $0.$0.$0.
Total stock options outstanding that were not included in the calculation of diluted earnings per common share were 695 500, 730 100
and 1 306 200 for 2005, 2004 and 2003, 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 Avista Corp.
common stock during the respective period. In addition, contingent stock awards of 318 900 and 156 800 were outstanding as of
December 31, 2005 and 2004, respectively, which were not included in basic or diluted shares because the perfonnance conditions
were not satisfied.
NOTE 21. STOCK COMPENSATION PLANS
In 1998, the Company adopted and shareholders approved an incentive compensation plan, the Long-Tenn 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 3.5 million shares of its common stock for grant under the 1998 Plan, including 1.
million shares approved by shareholders in 2005. Beginning in 2000, non-employee directors began receiving options under this plan.
In 2000, the Company adopted a Non-Officer Employee Long-Tenn 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
I FERC FORM NO.2 (ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
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 Company currently does not plan to issue any further options or securities under
this plan.
The Board of Directors has detennined 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.
Prior to January 1 , 2006, the Company 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. However, the Company has recognized compensation expense related
to the initial grant (2003) of performance share awards that vested on December 31 , 2005. SFAS 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 SF AS No. 123R, which supersedes APB No.
25 and SFAS No. 123 and their 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 beginning in 2006. See Note 2 for further information.
In 2005, the Company granted 163 600 performance shares to certain officers and other key employees under the 1998 Plan, of which
163 100 awards were outstanding as of December 31 , 2005. In 2004, the Company granted 156 800 performance shares to certain
officers and other key employees under the 1998 Plan and the 2000 Plan, of which 155 800 awards were outstanding as of December
, 2005. In 2003 , the Company granted 162 600 performance shares to certain officers and other key employees under the 1998 Plan
and the 2000 Plan, of which 152 914 awards were outstanding as of December 31, 2005. The performance shares are 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
cornmon stock relative to an external benchmark. Based on the change in value of the Company s common stock relative to an
external benchmark during the 3-year performance cycle, the Company issued 183 497 shares of common stock in early 2006 related
to the performance shares granted in 2003. This resulted in compensation expense of $3.6 million recorded during 2005. In February
2006, the Company granted 132 266 performance shares and 34 660 restricted shares to certain officers and other key employees under
the 1998 Plan.
Shares of cornmon stock issued from the exercise of stock options under the 1998 Plan and the 2000 Plan were acquired on the open
market prior to 2006. Beginning in 2006, the Company will issue new shares for the exercise of stock options. As of December 31
2005, there were 2.7 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:
2005 2004 2003
Number of shares under stock options:
Options outstanding at beginning of year 332 198 481 886 684 350
Options granted 000
Options exercised (192 377)(99 138)(37,439)
Options canceled 610 (50.550)(189.025)
Options outstanding at end of year 095 211 2.332.198 2.481.886
Options exercisable at end of year 968 629 1.896.648 1.614.455
I FERC FORM NO.2 (ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
2005 2004 2003
$12.41
$13 .$13.$11.43
$20.42 $18.46 $17.
$15.$15.$15.57
$16.$16.$17.18
$ -$ -
$ 4.
17%
37.10%
87%
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-tree interest rate
Expected life, in years
Expected volatility
Expected dividend yield
Information with respect to options outstanding and options exercisable as of December 31 2005 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
459 411
523 500
416 800
266 000
403 300
26.200
095.211
Non-Employee Director Stock Plan
Options Outstanding
Weighted WeightedAverage Average
Exercise RemainingPrice Life (in years)$10.26 6.11.83 5.17.12 4.
18.73 2.2
22.56 4.27.39 4.
$15.68 5.
Options Exercisable
Weighted
Average
Exercise
Price
$10.
11.
17.12
18.
22.
27.
$16.
Number
of Shares
332 828
523 500
416 800
266 000
403 300
26.200
1.968.628
In February 2005 , the Board of Directors elected to terminate the 1996 Director Plan. With the termination 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 22. 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 because
litigation and other contested proceedings are inherently subject to numerous uncertainties. 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 rate making process.
Federal Energy Regulatory Commission Inquiry
On April 19, 2004, the Federal Energy Regulatory Commission (FERC) issued an order approving the contested Agreement in
Resolution of Section 206 Proceeding (Agreement in Resolution) reached by Avista Corp. doing business as Avista Corp., Avista
Energy and the FERC's Trial Staff with respect to an investigation into the activities of 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 Avista Corp. or Avista Energy lmowingly engaged in or facilitated any improper trading
strategy; (2) no evidence that A vista Corp. or A vista Energy engaged in any efforts to manipulate the western energy markets during
I FERC FORM NO.2 (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 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
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, Avista Corp. agreed to continue to record
conversations of energy traders for two years and to improve 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 imposes no monetary remedies or penalties against A vista Corp. or A vista Energy.
In April 2005 and June 2005, the California Parties and the City of Tacoma, respectively, filed petitions for review of the FERC'
decisions approving the Agreement in Resolution with the United States Court of Appeals for the Ninth Circuit. Based on the FERC'
order approving the Agreement in Resolution and the FERC's denial of rehearing requests, the Company does not expect that this
proceeding will have any material adverse effect on its fmancial condition, results of operations or cash flows.
Class Action Securities Litigation
On November 10, 2005, an amended class action complaint was filed in the United States District Court for the Eastern District of
Washington against A vista Corp., Thomas M. Matthews, the former Chainnan of the Board, President and Chief Executive Officer of
Avista Corp., Gary G. Ely, the CUITent Chainnan of the Board, President and Chief Executive Officer of Avista Corp., and Jon E.
Eliassen, the former Senior Vice President and Chief Financial Officer of A vista Corp. Several class action complaints were originally
filed in September through November 2002 in the same court against the same parties. In February 2003, the court issued an order
which consolidated the complaints and in August 2003, the plaintiffs filed a consolidated amended class action complaint. On June 13
2005, the Company filed a motion for reconsideration of its earlier motion to dismiss this complaint, based, in part, on a recent United
States Supreme Court decision with respect to the pleading requirements sUITounding a sufficient showing of loss causation. On
October 19, 2005, the Court granted the Company s motion to dismiss this complaint. The order to dismiss was issued without
prejudice, which allowed the plaintiffs to amend their complaint. The amended complaint filed on November 10, 2005 alleges
damages due to the decrease in the total market value of the Company s common stock during the class period, which was
approximately $2.6 billion. These alleged losses stemmed from violations offederal securities laws through alleged misstatements and
omissions of material facts with respect to the Company s energy trading practices in 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. On January 6, 2006, the Company filed a motion to dismiss the
November 10, 2005 complaint. The Company s motion to dismiss has been set for hearing in March 2006. The Company continues to
assert that, among other deficiencies in the complaint, the plaintiff has failed to show sufficient loss causation. 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 cUITently 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 incUITed. Such a change, should it occur, could be significant.
California Refund Proceeding
In July 2001 , the FERC ordered an evidentiary hearing to determine the amount of refunds due to California energy buyers for
purchases made in the spot markets operated by the California Independent System Operator (CanSO) and the California Power
Exchange (CaIPX) during the period from October 2 2000 to June 20 2001 (Refund Period) in the California spot power market. The
fmdings of the FERC administrative law judge were largely adopted in March 2003 by the FERC. The refunds ordered are based on
the development of a mitigated market clearing price methodology. If the refunds required by the formula would cause a seller to
recover less than its actual costs for the refund period, the FERC has held that the seller would be allowed to document these costs and
limit its refund liability commensurately. In September 2005, Avista Energy submitted its cost filing claim pursuant to the FERC'
August 2005 order and demonstrated an overall revenue shortfall for sales into the California spot markets during the Refund Period
after the mitigated market clearing price methodology is applied to its transactions. In January 2006, the FERC issued its Order On
Cost Filings accepting A vista Energy s cost filing claim, subject to a compliance filing and the utilization of fmal CalISO, CaIPX and
Automated Power Exchange Corporation data. Once the CaliSO receives updated cost offset filings from A vista Energy and other
sellers, it will continue its efforts to prepare revised settlement statements for spot market sales to California during the refund period.
In 2001 , Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) defaulted on payment obligations to the CaIPX and the
CaliSO. As a result, the CaIPX and the CanSO failed to pay various energy sellers, including Avista Energy. Both PG&E and the
CaIPX declared bankruptcy in 2001. In March 2002, SCE paid its defaulted obligations to the CaIPX. In April 2004, PG&E paid its
I FERC FORM NO.(ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmisslon 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
defaulted obligations into an escrow fund in accordance with its bankruptcy reorganization. Funds held by the CaIPX and in the
PG&E escrow fund are not subject to release until the FERC issues an order directing such release in the California refund proceeding.
As of December 31 , 2005, Avista Energy s accounts receivable outstanding related to defaulting parties in California were fully offset
by reserves for uncollected amounts and funds collected from defaulting parties.
In addition, in June 2003, the FERC issued an order to review bids above $250 per MW made by participants in the short-tenn energy
markets operated by the CalISO and the CaIPX from May 1 2000 to October 2 2000. Market participants with bids above $250 per
MW during the period described above have been required to demonstrate why their bidding behavior and practices did not violate
applicable market rules. If violations were found to exist, the FERC would require the refund of any unjust profits and could also
enforce other non-monetary penalties, such as the revocation ofrnarket-based rate authority. Avista Energy was subject to this review.
In May 2004, the FERC provided notice that Avista Energy was no longer subject to this investigation. In March and April 2005, the
California Parties and PG&E, respectively, petitioned for review of the FERC's decision by the United States Court of Appeals for the
Ninth Circuit. In addition, many of the other orders that the FERC has issued in the California refund proceedings are now on appeal
before the Ninth Circuit. Some of those issues have been consolidated as a result of a case management conference conducted in
September 2004. In October 2004, the Ninth Circuit ordered that briefmg proceed in two rounds. The fIrst round is limited to three
issues: (1) which parties are subject to the FERC's refund jurisdiction in light of the exemption for government-owned utilities in
section 201(f) of the Federal Power Act (FPA); (2) the temporal scope of refunds under section 206 of the FPA; and (3) which
categories of transactions are subject to refunds. Oral argument on those issues took place in April 2005. In September 2005, the
Ninth Circuit held that the FERC did not have the authority to order refunds for sales made by municipal utilities in the California
Refund Case; no decision has yet been issued on the other issues argued in April 2005. The time for seeking rehearing in the
municipal utilities case has been extended until 45 days after disposition of the case presenting the other issues. The second round of
issues and their corresponding briefmg schedules have not yet been set by the Ninth Circuit Court of Appeals.
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 s 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 due to netting against counterparty defaults. 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 recommended that the
FERC not order refunds and instead dismiss the entire proceeding. In June 2003, the FERC tenninated the Pacific Northwest refund
proceedings, after rIDding that the equities do not justify the imposition of refunds. In November 2003, the FERC affmned its order.
Seven petitions for review, including one filed by Puget Sound Energy, Inc. (Puget), are now pending before the United States Court of
Appeals for the Ninth Circuit. Opening briefs were filed in January 2005. Petitioners other than Puget challenged the merits of the
FERC's decision not to order refunds. Puget's brief is directed to the procedural flaws in the underlying docket. Puget argues that
because its complaint was withdrawn as a matter oflaw 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. In February 2005, intervening parties, including Avista Energy and Avista Corp., filed in support ofPuget and also filed
in opposition to the other six petitioners. Briefmg was completed in May 2005. Oral arguments are expected, but have not yet been
set. 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 s 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 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 Attorney General Complaint
In May 2002, the FERC conditionally dismissed a complaint filed in March 2002 by the Attorney General of the State of California
(California AG) that alleged violations of the Federal Power Act by the FERC and all sellers (including Avista Corp. and its
I FERC FORM NO.2 (ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
subsidiaries) of electric power and energy into California. The complaint alleged that the FERC's adoption and implementation of
market-based rate authority was flawed and, as a result, individual sellers were liable for sales of energy at rates that were "unjust and
unreasonable." In May 2002, the FERC issued an order dismissing the complaint but directing sellers to re-fIle certain transaction
summaries. It was not clear that Avista Corp. and its subsidiaries were subject to this directive but the Company took the conservative
approach and re-filed certain transaction summaries in June and July of 2002. 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 found the requirement that all sales at market-based
rates be contained in quarterly reports fIled with the FERC to be integral to a market-based rate tariff. The California AG has
interpreted the decision as providing authority to the FERC to order refunds in the California refund proceeding for an expanded
refund period. The Court's decision leaves to the FERC the determination as to whether refunds are appropriate. In October 2004
Avista 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
management, the Company does not expect that this matter 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.
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 Avista Corp., Avista Energy, Inc. and Avista Power, LLC (collectively the Avista
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 communications, 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
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. This case was
transferred to the United States District Court for the Southern District of California to consolidate it with other pending actions. In
May 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
filed-rate doctrine. In May 2004, the Port of Seattle fIled an appeal with the United States Court of Appeals for the Ninth Circuit. In
October 2005, the Ninth Circuit denied the plaintiffs' joint motion for summary disposition of the Port of Seattle s appeal. The Port of
Seattle s appeal to the Ninth Circuit has been briefed and oral argument is scheduled for March 7 2006. 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
estimates of the probability or amount of a liability being incurred. Such a change, should it occur, could be significant.
Wah Chang Complaint
In May 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 Avista Corp., Avista Energy and Avista
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 aff1liates 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
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 04/1712006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
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 February 2005, the Court granted the defendants
motion to dismiss 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. In March 2005, Wah Chang filed an appeal
with the United States Court of Appeals for the Ninth Circuit. The appeal ofWah Chang is still pending before the Ninth Circuit and
awaits oral argument. 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 infonnation 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
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
In June 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 Shennan 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
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. In
March 2005 , Tacoma Power filed an appeal with the United States Court of Appeals for the Ninth Circuit. 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 infonnation 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 ofthe probability or amount of a liability being incurred. Such a change, should it occur, could be significant.
State of Montana Proceedings
In June 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 Avista 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.
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. In February 2004, the MPSC issued an order initiating investigation of the Montana
retail electricity market for the purpose of detennining whether there is evidence of unlawful manipulation of that market. The
Montana AG has requested specific infonnation from Avista Energy and Avista 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 infonnation 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.
I FERC FORM NO.2 (ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/1712006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
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 Avista 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 No. lA was fIled in January 2004. In February 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. In May 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. In July 2004, the defendants (including Avista Corp.) filed a motion to dismiss the Montana AG's complaint. In
September 2004, the United States District 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. Subsequently, in response to the motions of the defendants, the
federal magistrate judge in January 2005 filed recommendations that the Court's previous decision be vacated based on lack of
jurisdiction of the Court. In September 2005, the U.S. District Court issued an order vacating its prior decision, except as to matters of
standing and jurisdiction. In November 2004, the defendants (including Avista Corp.) filed a petition for declaratory relief in Montana
State Court requesting the resolution of the controversy that the plaintiffs raised in federal court and the Montana AG filed an answer
counterclaim and motion for summary judgment. The defendants have filed responses to the Montana AG's motion for summary
judgment. In June 2005, A vista Corp. moved for leave to amend its complaint to, inter alia, add two causes of action relating to breach
of contract and negligent misrepresentation arising out of its Clark Fork Settlement Agreement that was entered into in 1999 with the
State of Montana relating to the relicensing of Avista Corp.'s Noxon Rapids Hydroelectric Generating Project. The Montana State
Court heard the motion for summary judgment of the Montana AG and took the matter under advisement. 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, the
Company intends to seek recovery of any amounts paid through the rate making process.
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 owners of Colstrip have undertaken certain
groundwater investigation and remediation measures to address groundwater contamination. These measures include improvements to
the lakes and ponds of Colstrip. The Company intends to continue 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 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.
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). In January 2006, the EP A issued a draft settlement
agreement related to the ACO. The ACO alleges that Colstrip Units 3 & 4 have been in violation of the CAA permit at Colstrip since
1980. The permit required the Colstrip project operator to submit for review and approval by the EPA an analysis and proposal for
reducing emissions of nitrogen oxides to address visibility concerns if, and when, EP promulgates Best Available Retrofit
Technology requirements for nitrogen oxide emissions. The EPA is asserting that regulations it promulgated in 1980 triggered this
requirement. Avista Corp. and the other owners of Co Is trip believe that the ACO is unfounded. The owners of Co Is trip are discussing
the proposed settlement agreement with the EP A, the Department of Environmental Quality (Montana DEQ) and the Northern
Cheyenne Tribe. The draft settlement agreement would resolve the potential liability related to this issue. 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, the
Company intends to seek recovery of any amounts paid through the rate making process.
I FERC FORM NO.2 (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 04/1712006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
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). The owners of Colstrip 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's appeal to the MMS was substantially denied in March 2005; WECO has now appealed the order to the
Board of Land Appeals of the U.S. Department of the Interior. The entire appeal process could take several 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
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
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 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. 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. After receiving input from the Company and
the other PLPs, the fmal Cleanup Action Plan (CAP) was issued by the DOE in August 2001 and the Consent Decree to implement the
CAP was fmalized in September 2002. The third PLP did not sign the Consent Decree. In September 2004, a Site Preparation
Agreement was reached with the third PLP with respect to the logistics of the CAP. The third PLP then completed the site
preparation. The selected contractor then completed construction/installation of the work under the CAP by the end of the third
quarter of 2005. The Company and BNSF filed the fmal Cleanup Action Report with the DOE during the fourth quarter of 2005. The
Cleanup Action Plan does call for periodic ground water sampling and reporting for a period of five years.
Harbor Oil Inc. Site
Avista Corp. used Harbor Oil Inc. (Harbor Oil) for the recycling of waste oil and non-PCB transformer oil in the late 1980s and early
1990s. In June 2005 , EPA Region 10 provided notification to Avista Corp., as a customer of Harbor Oil, that the EPA had detennined
that hazardous substances were released at the Harbor Oil site in Portland, Oregon and that Avista Corp. may be liable for investigation
and cleanup of the site under the Comprehensive Environmental Response, Compensation, and Liability Act, conunonly referred to as
the federal "Superfund" law. Harbor Oil's primary business was the collection and blending of used oil for sale as fuel to ships at sea.
The initial indication from the EP A is that the site may be contaminated with PCBs, petroleum hydrocarbons, chlorinated solvents and
heavy metals.
Thirteen other companies received a similar notice, including current and former owners of the site, the Bonneville Power
Administration, Portland General Electric Corporation, Northwestern Energy and Unocal Oil. Several meetings have been held with
the EPA and the Potentially Responsible Parties (PRPs) to ask questions of the EPA regarding the Harbor Oil site and discuss the
process used by the EP A in selecting PRPs.
Based on the review of its records related to Harbor Oil, the Company does not believe it is a major contributor to this potential
environmental contamination based on the relative volume of waste oil delivered to the Harbor Oil site. However, there is currently
FERC FORM NO.(ED. 12-88)Page 123.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
not enough information to allow the Company to assess the probability or amount of a liability, if any, being incurred. As such, it is
currently not possible to make an estimate of any liability at this time.
Northeast Combustion Turbine Site
In August 2005 , a diesel fuel spill occurred at the Company s Northeast Combustion Turbine generating facility (Northeast CT)
located in Spokane, Washington. The Northeast CT site had fuel storage facilities that were leased to Co-op Supply, Inc., an affiliate
of Cenex Cooperative (Co-op). The fuel spill occurred when Co-op made a delivery of diesel to a tank that was already nearly full and
the extra fuel overflowed into a containment area. It is estimated that approximately 26 000 gallons of fuel escaped the containment
area and leaked into the soil below it. An investigation, supervised by the DOE, determined the fuel was, for the most part, uniformly
present in the soil to a depth of 30-35 feet. Groundwater below the site is at a depth of 170 feet. Remediation efforts included the
removal of contaminated soil and the related fuel storage facilities. Options to dispose of the contaminated soil are currently being
evaluated and are expected to be completed by the middle of 2006. During the fourth quarter of 2005 , the Company filed a complaint
against Co-op and an engineering fillll to recover a substantial portion of the cleanup costs. The Company has accrued the estimated
cleanup costs during 2005, which was not material to the Company s fmancial condition or results of operations. It is possible that a
change could occur in the Company s estimate of the liability. Such a change, should it occur, is not expected to be significant.
Lake Coeur d'Alene
In July 1998, the United States District Court for the District ofIdaho issued its rIDding that the Coeur d'Alene Tribe ofIdaho (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 affilllled by the United States Court of Appeals
for the Ninth Circuit. The United States Supreme Court affilllled 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 lO(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 tennsof such payment.
However, the Company intends to seek recovery of any amounts paid through the rate making process.
Spokane River Relicensing
The Company owns and 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 are referred to, collectively, 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 on August 1 2007; the Company filed a Notice ofIntent 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 filed its
license application with the FERC in July 2005. The Company has requested the FERC to consider a license for Post Falls that is
separate from the other four hydroelectric plants. This is due to the fact that Post Falls presents more complex issues that may take
longer to resolve than those dealing with the rest of the Spokane River Project. If granted, new licenses would have a tenn of 30 to 50
years. In the license application, the Company has proposed a number of measures intended to address the impact of the Spokane
River Project and enhance resources associated with the Spokane River. Currently, certain environmental measures in the Company
license application have estimated costs of $3.2 million per year. For certain items, costs cannot be reasonably estimated at this time.
The total annual operating and capitalized costs associated with the relicensing of the Spokane River Project will become better
known and estimable as the process continues through July 2007. 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 tenns of the Clark Fork Settlement Agreement, the Company developed an abatement and mitigation strategy with the other
I FERC FORM NO.2 (ED. 12-88) Page 123.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1 ) 2S. An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
signatories to the agreement and completed the Gas Supersaturation Control Program (GSCP). The Idaho Department of
Environmental Quality and the u.S. Fish and Wildlife Service approved the GSCP in February 2004 and the FERC issued an order
approving the GSCP in January 2005. 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 Company has undertaken physical and computer modeling studies to confirm the
feasibility and likely effectiveness of its tunnel solution. The results of these studies will also help the Company to refme its estimated
costs for completion of the tunnels. The cost of modifying the flISt tunnel is currently preliminarily estimated to be $38 million
(including AFUDC and inflation) and will be incurred between 2004 and 2010 ($1.7 million incurred through December 31 , 2005),
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 flIst tunnel and such modifications would commence no later than 10 years following the completion of the flIst
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 u.s Fish and Wildlife Service has listed bull trout as threatened under the Endangered Species Act. The Clark Fork Settlement
Agreement describes programs intended to restore bull trout populations in the project area. 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 at
Cabinet Gorge and Noxon Rapids. 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 bull trout population enhancement measures.
Emergis Technologies, Inc. Complaint
On January 20, 2006, Emergis Technologies, Inc. (Emergis) filed a complaint against the Company alleging that certain electronic
invoicing and payment system processes employed by A vista Corp. infringe upon a patent owned and held by Emergis. The complaint
was filed in the United States District Court for the Eastern District of Washington and seeks unspecified compensatory and treble
damages from alleged infringement of Emergis' patent. The Company is in the process of assessing the validity of the complaint with
respect to its electronic utility billing and payment processing system. Because the resolution of this complaint 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 complaint 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.
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 Company s 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
basin could potentially adversely affect the energy production of the Company s Cabinet Gorge and Noxon Rapids hydroelectric
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 Resubmlssion 04/1712006 2005/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
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 and Clean Air Act Amendments at with respect to its
thennal generating plants. The Company continues to monitor legislative developments at both the state and national level with
respect to the potential for further restrictions on sulfur dioxide, nitrogen oxide, carbon dioxide (including cap and trade emission
reduction programs), as well as other greenhouse gas and mercury emissions. In particular, the EPA has fmalized mercury emission
regulations that will affect coal-fIred generation plants, including Colstrip. The new EPA regulations establish an emission trading
program to take effect beginning in January 2010, with a second phase to take effect in 2018. In addition, the Montana DEQ is
planning to propose rules for the control of mercury emissions from coal-fIred plants that would be more restrictive than EP
regulations. The proposed rules will be presented to the Montana Board of Environmental Review on March 23 , 2006. Compliance
with these new and proposed requirements and possible additional legislation or regulations could result in increases in capital
expenditures and operating expenses for expanded emission controls at the Company s thennal generating facilities. The amount of
these costs and the impact of the restrictions on the operation of the facilities cannot be estimated at this time.
As of December 31 , 2005, the Company s collective bargaining agreement with the International Brotherhood of Electrical Workers
represented approximately 50 percent of all of Avista Corp.'s employees. The agreement with the local union in Washington and
Idaho representing the majority (approximately 90 percent) of the bargaining unit employees expires in March 2007. Two local
agreements in Oregon, which cover approximately 50 employees, expire in April 2010. Another local agreement in Oregon is up for
negotiations in 2007.
NOTE 23. INFORMATION SERVICES CONTRACTS
The Company has infonnation services contracts that expire between 2006 and 2012. Total payments under these contracts were $12.
million, $12.8 million and $12.0 million in 2005 2004 and 2003, respectively. The majority of these costs are included in operation
expenses in the Statements of Income. Minimum contractual obligations under the Company s infonnation services contracts are
approximately $11.1 million, $11.4 million, $11.8 million, $12.1 million, $12.5 million, $12.9 million and $13.2 million from 2006
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 24. DISPOSITION OF SOUTH LAKE TAHOE PROPERTIES
In April 2005, Avista Corp. completed the sale of its South Lake Tahoe, California natural gas properties to Southwest Gas
Corporation as part of Avista Corp.'s strategy to focus on its business in the northwestern United States. This was the Company s only
regulated utility operation in California. The cash proceeds received during 2005 were approximately $16.6 million. The total pre-tax
gain for 2005 was $4.1 million related to the Company s disposition of its South Lake Tahoe natural gas properties.
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 (or 4 percent of total therms) were delivered to South Lake Tahoe customers.
NOTE 25: SUBSEQUENT EVENT
In February 2006, the Board of Directors of Avista Corp. made the decision to ask shareholders to approve a change in the Company
organization, which would result in the fonnation of a holding company. The proposed holding company would become the parent to
the regulated utility Avista Corp. and Avista Capital, which is the parent to the Company s non-utility subsidiaries.
The proposal for the fonnation of a holding company will be described for shareholders in A vista Corp.' s Proxy Statement-Prospectus
to be distributed to shareholders in connection with the annual meeting of shareholders to be held on May 11 , 2006. A vista Corp. has
fIled for regulatory approval from the FERC and the utility regulators in Washington, Idaho, Oregon and Montana, conditioned on
approval by shareholders. If shareholders approve the proposal, and if state and federal regulatory approvals are received, the holding
company organization could be implemented by the end of 2006.
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 04/17/2006 2005/04
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 26. SUPPLEMENTAL CASH FLOW INFORMATION
2005 2004
Cash paid for interest
Cash paid for income taxes
$81 029 276
405 411
$79 380 054
320 684
Non-cash fmancing and investing activities:
Equipment acquired under capital leases 365 083
Other Cash Flows from Operating Activities:
Net change in receivables allowance
Power and natural gas deferrals
ESOP dividends
Change in special deposits
Change in other non-current assets/liabilities
Change in other current assets
504 630
451 146)
791
235 855)
269 258
167 585)
528 534
049 863)
143 775
(572 613)
640 532)
228 649)
I FERC FORM NO.2 (ED. 12-88) Page 123.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) nA Resubmission 04/17/2006
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.
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 Item Unrealized Gains and Minimum Pension Foreign Currency Other
No.Losses on Available-Liability adjustment Hedges Adjustments
for-Sale Securities (net amount)
(a)(b)(c)(d)(e)
Balance of Account 219 at Beginning of
Preceding Year 355,089)
2 Preceding QtrNr to Date Reclassifications
from Acct 219 to Net Income
3 Preceding QuarterNear to Date Changes in
Fair Value 589 299)
4 Total (lines 2 and 3)589,299)
5 Balance of Account 219 at End of
Preceding Quarter/Year 16,944 388)
6 Balance of Account 219 at Beginning of
Current Year 944 388)
7 Current QtrNr to Date Reclassifications
from Acct 219 to Net Income
8 Current QuarterNear to Date Changes in
Fair Value 702)681,415)
~""\~.~"
"Fi""""""'"""""
. "
'" ';.iiI"~0iE;ao~iii\1 ",t:1\~JiM;f.i;;x!i,
~~';'~,,;"~~;:
9 Total (lines 7 and 8)63,702)681 415)1,407 305
Balance of Account 219 at End of Current
QuarterNear 702)19,625 803)1,407 305
FERC FORM NO.2 (NEW 06-02)Page 122a
Name of Respondent This ~ort Is: Date of Report Year/Period of Report(1) ~An Original (Mo, Da, Yr) End of 2005/04Avista Corporation (2) A Resubmission 04/17/2006
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, A D HEDGING ACTIVITIES
Line
No.
Other Cash Flow
Hedges
Interest Rate Swaps
Totals for each
category of items
recorded in
Account 219
(h)
( 9 355,089)
Other Cash Flow
Hedges
(Specify)
(f)
(g)
213 530)
213 530)
213 530)
213,530)
889,250)
517 227
372 023)
585,553)
667 900)
236 505
568 605
568,605
( 11 802,829)
( 11 802 829)
( 21 157 918)
( 21 157 918)
( 4 557 150)
2,415 920
( 2 141 230)
( 23 299,148)
FERC FORM NO.2 (NEW 06-02)Page 122b
Net Income (Carried
Forward from
Page 117, Line 78)
Total
Comprehensive
Income
(i)
Name of Respondent Year of ReportThis Report Is:
(1)I29An Original
(2)DA Resubmission
Date of Report
(Mo, Da, Yr)
April 17, 2006A vista Corporation Dec, 31 2005
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION
ElectricLine
No.
TotalItem
(a)
UTILITY PLANT
226 358 752819060580
525 291
824 585 871 226 358 752
887 059
22,456 903
902 929 833
971 551 338
931 378,495
250 858
268 609 610
735 261 440
533 348 170
927 641,413
Nat. Gas Land and Land Ri hts
Amort. of Other Utilit Plant
TOTAL in Service (Enter Total of lines 18 thru 21)
Leased to Others
De reciation
Amortization and De letion
TOTAL Leased to Others (Enter Total of lines 24 and 25)
Held for Future Use
De reciation
Amortization
TOTAL Held for Future Use (Ent. Tot. of lines 28 and 29)
Abandonment of Leases (Natural Gas)
Amort. ofPlantAc uisitionAd'ustment
TOTAL Accumulated Provisions (Should agree with line 14 above)
(Enter Total of lines 22, 26, 30, 31, and 32)
038 272
735 261 440971551338
Page 200FERC FORM NO.2 (ED. 12-89)
Name of Respondent
A vista Corporation
Tbis R~rt Is:
(1) 129 An Original
(2) D AResubmission April 17 2006
Date of Report Year of Report
Dec. 31 2005
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)
Gas Other (Specify)Line
No,
Other (Specify)Other (Specify)Common
505 690 774
619 845
507 310 619
8,417,651
456 903
538 185 173
209 593 950
328 591 223
038 272
209 593 950
011 054
905 446 4
916 500
218 550
135 050
695 948
69,439 102
695 948
FERC FORM NO.2 (ED. 12-89)Page 201
Name of Respondent This report is:
( XJ An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.J A Resubmission April 17, 2006 Dec. 31,2005
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.
Balance at
Beginning of Year
(b)
Additions
(c)
Account
(a)
INTANGIBLE PLANT
301 Organization
302 Franchises and Consents
303 Miscellaneous Intangible Plant
CaJiforriia "
,:,,
IdahO".
' '' "
NcifDireCtlvAssi
Oteqbri
/ """"
\/VashiriQt6ri'
, ,, "" ,, "
TOTAL IntanQible Plant (Enter Total of lines 2 thru 4
PRODUCTION PLANT
593
862 507 355 736
/:"' '
299,527
:""
, ' 56,209
355 736
' ,.'" ' "":"":,
, ,2J8'725i
864 100
" ,': ,
Manufactured Gas Production Plant
304 Land and Land RiQhts
305 Structures and Improvements
1 0 306 Boiler Plant Equipment11 307 Other Power Equipment12 308 Coke Ovens13 309 Producer Gas Equipment14 310 Water Gas generating equipment15 311 Liquefied petroleum aas equipment16 312 Oil gas generating equipment17 313 Generating equipment-other processes18 314 Coal, coke, and ash handling equipment
1 9 315 Catalytic Cracking equipment20 316 Other reforming equipment21 317 Purification equipment22 318 Residual refining equipment23 319 Gas mixing equipment24 320 Other Equipment
628
290
TOTAL (Manufactured Gas Production Plant (Enter total of lines 8-24)
PRODUCTS EXTRACTION PLANT
918
340 Land and Land RiQhts
341 Structures and Improvements
342 Extraction and RefininQ Equipment
343 Pipe Lines
344 Extracted Products Storage Equipment
345 Compressor Equipment
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( XJ An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.J A Resubmission April 17, 2006 Dec. 31 , 2005
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.
628
290
918
FERC FORM NO.2 (ED. 12-96) Page 205
Name of Respondent This report is:Date of Report Year Ending
( XJ An Original (Mo, Da, Yr)
Avista Corp.J A Resubmission April 17 2006 Dec. 31 , 2005
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 Measurina and Regulating Equipment
347 Other Eauioment
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 SuDDlementarv StatemenV 918
TOTAL Production Plant (Enter Total of lines 37 and 38)918
NATURAL GAS STORAGE AND PROCESSING PLANT
UnderQround StoraQe Plant
350.1 Land 412 611
350.2 Riqhts-of-Wav 874
351 Structures and Improvements 063 700
352 Wells 713 900 65,257
352.1 Storace Leaseholds and Riahts 254,354
352.2 Reservoirs 203 330
352.3 Non-recoverable Natural Gas 121 926
353 Lines 823,423
354 Compressor Station Eauioment 993 799 185
355 Measurina and Reaulatina Eauioment 153 965 954
356 Purification Eauioment 403 713 538
357 Other Eauioment 651 666 314
TOTAL Underaround Storaae Plant (Enter Total of lines 42 thru 53)820,261 134 248
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification Equipment
363.1 Liquefaction Equioment
363.2 Vaporizing Equipment
363.3 Compressor Equipment
363.4 MeasurinQ and Regulating Equipment
363.5 Other Equipment
TOTAL Other StoraQe Plant (Enter Total of lines 56 thru 64)
Base Load Liquefied Natural Gas Terminalina and ProcessinQ Plant
364.1 Land and Land Riqhts
364.2 Structures and Improvements
364.3 LNG Processinq Terminal Equipment
364.4 LNG Transooration Equipment
364.5 Measurinq and Requlatinq Equipment
364.6 Compressor Station Equipment
364.7 Communications Equipment
364.8 Other Equipment
TOTAL Base Load Liq Nat'l Gas, Terminal and Processina Plant (lines 67-
TOTAL Nat'l Gas Storace and Processinq Plant (Total of lines 54 65 and 7 820 261 134,248
TRANSMISSION PLANT
365.1 Land and Land Riqhts
365.2 Riahts-of-Wav
366 Structures and Improvements
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.1 A Resubmission April 17 2006 Dec. 31 , 2005
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(0)No.
918
918
412 611
23,874
063 700
779,157
254 354
203 330
150 000 971 926
823,423
016 984
171 919
407 251
675,980
150 000 804 509
" 66
150,000 804 509
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17 2006 Dec. 31 2005
GAS PLANT IN SERVICE (ACCOUNTS 101 , 102, 103, AND 1 06)(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 113,412
375 Structures and Improvements 640,323 236
376 Mains 234 417 570 10,191 782
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General 313,990 171 028
379 Measuring and Regulating Equipment-Citv Gate 058,001 163
380 Services 171,449 539 059 066
381 Meters 53,466,421 785 848
382 Meter Installations
383 House Reaulators
384 House Regulator Installations
385 Industrial Measuring and Regulating Station Equipment 955 012 586
100 386 Other Property on Customers' Premises
101 386 Other Equipment 539
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)469,414 807 24,414 709
103 GENERAL PLANT
104 389 Land and Land Rights 330,822
105 390 Structures and Improvements 381 426 182 051
106 391 Office Furniture and Equipment 685 378 871
107 392 Transportation Equipment 043 745 232 756
108 393 Stores Equipment 100 896 598
109 394 Tools, Shop, and Garage Equipment 248,966 339 758
110 395 Laboratory Equipment 909,026 917
111 396 Power Operated Equipment 295 874 256 471
112 397 Communication Eauipment 611 785 41 ,500
113 398 Miscellaneous Eauipment 640 832
114 Subtotal (Enter Totals of lines 104 thru 113)964 865 1,474 754
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)964 865 474 754
117 TOTAL (Accounts 101 and 106)505 138,951 379,447
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)505,138 951 I 379,447
FERC FORM NO.(ED. 12-96)Page 208
Name of Respondent This report is:Date of Report Year Ending
(X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17 2006 Dec. 31 2005
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(t)(a)No.
188 113 224
689 559
10,315 021 234 294 331
637 092 4,443 473
59,019 (8,092)070 053
549 728 166,958 877
262 021 59,990 248
19,379 014 219
100
539 101
254 993 471,574 523 102
103
137 261 685 104
189,942 373 535 105
685 378,871 106
115 776 160 725 107
586 908 108
220 062 368 662 109
35,435 914 508 110
55,893 3,496 452 111
99,717 1 ,553,568 112
140 332 113
800 373 639,246 114
115
800,373 15,639 246 116
207,780 507 310 618 117
118
119
120
207 780 507 310 618 121
FERC FORM NO.2 (ED. 12-96)Page 209
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission Apri117 2006 Dec. 31 , 2005
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,
Construction Work in Progress-Gas Estimated Additional
Line Description of Project (Account 107)Cost of Project
No.(a)(b)(c)
STATE OF WASHINGTON
Minor Projects (131) Under $1 ,000 000 1 ,350 557 881 823
STATE OF IDAHO
Minor Projects (55) Under $1 000 000 504 743 573,343
STATE OF OREGON
Minor Projects (77) under $1 ,000,000 000,893 554 618
Gas new mains-Medford 083,810
STATE OF CALIFORNIA
Minor Projects (1) under $1 ,000,000
COMMON-
Minor Projects (9) under $1 ,000 000 130 776
COMMON-W A/lD
Minor Projects (11) under $1 ,000 000 753 847,461
COMMON-W A/lD/OR
Minor Projects (4) under $1 ,000,000 318 107 416 318
TOTAL 8,417 651 273 563
FERC FORM NO.2 (ED. 12-96)Page 216
Name of Respondent This Report Is:Date of Report Year of Report
(1)1!I AnOriginal (Mo, Da, Yr)
A vista Corporation
(2)0 A Resubmission April 17, 2006 Dec. 31,2005
ACCUMULATED PROVISION FOR DEPRECIATION OF GAS UTILITY PLANT (Account 108)
1. Explain in a footnote any important adjustments the respondent has a significant amount of plant retired at
during year.year end which has not been recorded and/or classified to
2. Explain in a footnote any difference between the amount the various reserve functional classifications, make
for book costofplantretired, line 11 , column (c), and that pre1iminaJy 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 Unifollll System appropriate functional classifications.
of Accounts require that retirements of depreciable plant 4. Show separately interest credits under a sinking fund
be recorded when such plant is removed from service.or similar method of depreciation accounting.
Section A. Balances and Changes During 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)
Balance Beginning of Year 194 016 733 194 016 733
Depreciation Provisions for Year
Charged to
(403) Depreciation Expense 14,450,758 14,450 758
(413) Exp. of Gas PIt. Leas. to Others
Transportation Expenses-C1earin~235 205 235 205
Other Clearing Accounts
Other Accounts (Specify):(225 136)
Transfer to common (transporation clear)
TOTAL Deprec. Prov. for Year 14,460 827 14,460 827
(Enter Total of lines 3 thru 8)
N et Char~es for Plant Retired:
Book Cost of Plant Retired 262 028 262 028
Cost of Removal 118 793 118 793
Salvage (Credit)
TOTAL Net Chrgs. for Plant Ret.380 821 380 821
(Enter Total oflines 11 thru 13)
Other Debit or Credit Items (Describe)(13.196 553)(13.196 553)
Balance End of Year (Enter
Total of Jines 1, 9, 14, 15, and 16)198 661 828 191 900 186
Section B. Balances at End of Year According to Functional Classifications
Production-Manufactured Gas (67 833)(67 833)
Prod. and Gatherin~-Natura1 Gas
Products Extraction-Natural Gas
Underground Gas Storage 444 352 444 352
Other Stora~e Plant
Base Load LNG Tellll and Proc. PIt.
Transffilssion
Distribution 176 411 644 176,411,644
General 112 023 112 023
TOTAL (Enter Total of lines 18 191 900.186 191 900.186
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, Oa, Yr)
Avista Corporation 0 A Resubmission April 17,2006 Dec, 31, 2005
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,
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 117,117.4)(Account 164,(Account 164,(Account 164,Total
No,(a)(b)(c)(dJ (e)(f)
(g)
(hi (i)
Balance at Beginning of Year 268 257 724,433 992,690
Gas Delivered to Storace 857 112 657 748 514 860
Gas Withdrawn from Storace 655 482 374 124 13,029 606
Other Debits and Credits 238 238
Balance at End of Year 469 887 006 819 13,476 706
Dth 074 649 325 715 400 364
Amount Per Dekatherm $6,0106 $3,0911 $5,6144
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
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 2005/04(2) fiA Resubmission 04/17/2006
INVESTMENTS IN SUBSIDIARY COMPANIES Account 123.
1. Report below investments in Accounts 123., 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 is a note or open account. List each note giving date of issuance, maturity
date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary earnings since acquisition.The TOTAL in column (e) should equal the amount entered for
Account 418.
,-me Description of Investment Date Acquired Date Of Amount OT ,Investment at
No.(a)(b)Mat~rity Beginning of Year
(d)
Avista Capital - Common Stock 1997 184 251 609
Avista Capital - Equity in Eamings 72,534 991
4 OCllnvestment in Subs
IITotal Cost of Account 123.1 $TOTAL 256,786,600
FERC FORM NO.2 (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 2005/04(2)DA Resubmission 04/17/2006
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 (t) 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 (t).
8. Report on Line 42, column (a) the TOTAL cost of Account 123.
Equity In Subsidiary Revenues for Year Amount OT Investment at I.::ialn or LOSS Trom Investment LineEamin~s of Year End ?J)Year Disp~sed of No.(f)
184 251 609
611,524 095,863 50,827 604
658 585 658 585
952,939 15,095,863 237 737 798
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 17, 2006 Dec. 31 2005
PREPAYMENTS (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 118 666
Prepaid Rents
Prepaid Taxes
Prepaid Interest
Miscellaneous Prepayments 626 335
TOTAL 745,002
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 2005/04
(2) FiA Resubmission 04/17/2006
OTHER REGULATORY ASSETS (Account 182.
1. Report below the particulars (details) called for conc~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 of
No.Other Regulatory Assets Beginning of -wmten OffUUflng -wmten on uuflng Current QuarterlY ear
Current the QuarterlYear the Period
QuarterlYear Account Charged Amount
(a)(b)(c)(d)(e)(f)
FAS 106. Post Retirement Benefits (162300)782016 926400 472752 309,264
Amortization period is 1996-2012
FAS 109 (162310 & 182320)123,466657 682,221 263170/160 10,758,424 114 390,454
Idaho AMR (182330)8,404 214 Various 8,404 214
BPA Residential Exchange (182345 &162346)200 454 298 Various 201 454 297
WA ERM Deferral (162350)102,429967 171,394 557290 549 166 92,052 195
WA Amortization (162360)667458 26,977 557162 351 834 342 601
New Generation Installation (182370)552 708 407370 184236 366,472
Wartsilla Units (162372)271,705 271 705
FAS 143. ARO (162376)113,650 859,553 230000/106 643 968,560
OR DSM (182360)840 801)186700 290,759 131 560
Workers Compensation (182383)360 885 242800 161 481 199,404
CS2 Levelized Retum (182384)619 155 407420 619,155
TOTAL 231,982 032 32,042,225 775,496 225 248,761
FERC FORM NO. 2/3-0 (REV. 02-04)Page 232
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) Fi A Resubmission 04/17/2006
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 ~ccoum Amount End of Year
Char~ed
(a)(b)(c)(e)(f)
Colstrip Common Fac.110 999 110,999
W A Deferred Power Costs 10,777,698 var 639,080 138 618
WA ERM YTD Company Band 000,000 000,000
WA ERM YTD Contra Account 000,000 000,000
ID Deferred New Generation 552 708 407/182 552 708
Colstrip Common Fac.355,642 355,642
ID Deferred Power 188 093 215,530 90,403,623
ID Accumulated Surcharge Am 689 666 557 727,216 82,416,882
CS2 Levelized Return 161 747 182 161 747
Payroll Accrual 989,280 var 50,310 938,970
Payroll Loading Clearing 677 798 var 968,601 290,803
Misc Error Suspense 988 68,777 93,765
WPHD Terminated Elec Pur.
Unamortized AIR Sale 96,810 var 74,873 937
Intangible Pension Asset 058,491 228.653,659 4,404 832
Nez Perce Settlement 202,445 557 212 197 233
Misc Deferred Debit Centralia 596,927 253 596 927
Centralia Mine Env Balance 578,345 253 578,345
Opportunity Sub Sale Proceeds 188,758 188,758
ID Panhandle Forest Use Permit 148 111 733 153,881
Metro-Sunset 115KV TE 273,689 067 309,756
CS2 Purchase 101 095 var 101 095
UPRR Permit Conv 331,628 331 696
Insurance Recvy CDA Lake 30,993 294 118,287
Ortho Business Activity 665 665
Canadian GST Tax 052 844 var 052,844
Nez Perce Permit Conversion 53,486 725 108 211
Misc Work Orders oe::$50,OOO 199,472 var 40,232 159 240
Subsidiary Billings 336 114 773,499 109,613
Null" Projects directly to 186 208 472 208,472
Misc. Work in Progress
Deterred Regulatory Comm.
Expenses (See pages 350 - 351)
TOTAL 242,169 675,589
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 2005/04
(2) D A Resubmission 04/17/2006
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 ~9coum Amount End of Year
Char~ed
(a)(b)(c)(e)(f)
Conservation
Regulatory Assets Consv 124 643 124 643
3 Oregon Gas Comm Consvt 032 843 25,811
4 Oregon Shower Head 174 911 908 174 911
Oregon Common Gas Eff 188 568 169,164 357 732
6 WPNG HE Wtr Htrs-Oregon 276 659 245,524 522,183
7 WPNG HE Furnaces 326,646 062 059 388,705
8 WPNG CA RES UI-658 var 658
9 WPNG OR Res Low 1 344,851 908 975 339 876
Regulatory-Sched 67 164 284 908 164 284
Reg-Water Heat Con v 880 929 908 880,929
Reg-Space/Water Con 357 053 908 357 053
Reg-Elec Comm/lnd 547 042 908 547,042
Reg-Gas Wzn Res 879 579 908 879,579
Reg-UI Elec/Gas 298,733 908 298,733
Reg-Elec Manuf Home 235 810 908 235,810
Reg-Comm/lnd Gas 96,621 908 96,621
Reg-Gas Res Appl Ef 194 257 908 194 257
Reg-Gas Res Showerhead 517 908 27,517
Reg Elect Res Wzn 591 908 591
Reg UI Elec Wzn 742 908 742
Oregon DSM 57,085 908 085
Reg C/I Elec Fuel 160 992 908 160,992
Reg Gas A.E. Wtr 024 908 024
Reg Low Income Gas Wzn 280 933 908 280 933
Care - California 733 733 908
Consv. & Renewable Disco 536,119 108,499 644 618
Sand point DSR - PPL 626 966 908 626,966
CA PPP-Energy Eff- current 027 908 027
OR/CA Comm Conserv 978 908 978
Reg UI Elec/Gas WT 795 908 23,795
CA Low Inc Eneg Eff 13,831 908 831
CA Energy Efficiency 930 908 45,930
Cares Program 720 908 15,720
Regulatory Assets Consv 556,983 556,983
Regulatory Assets Consv 456 849 456,849
Hamilton Street Bridge Site 600 var 600
Port Of Seattle 750 var 750
Easy Pay Billing CS 50,532 130 3,402
Lake CDA issues 865,513 276,729 142 242
Shareholder Lawsuit 2002 966,255 var 903,041 63,214
NE Oil Spill Cleanup 748,675 748 675
Misc. Work in Progress
I ueTerrea Regulatory Comm.
Expenses (See pages 350 - 351)
TOTAL 242 169 40,675,589
FERC FORM NO.2 (ED. 12-94)Page 233.
Name of Respondent
A vista Corp
This R::E,ort Is:(1) 129 An Original
(2) D A Resubmission
Date of Report
(M, D, Y)
Year of Report
April 17, 2006 December 31 , 2005
ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT 190)
1. Report the infonnation called for below concerning the
respondent's accounting for deferred income taxes.
(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
, etc. and 6., 6., etc.
Balance at CHANGES DURING YEARBeginning Amounts Amountsof Year Debited to Credited to
Account 410,Account 411.(c) (d)
Line
No.
Account Subdivisions
TOTAL Account 190 (Total of lines 5 thru 6)
Classification of TOTAL
Federal Income Tax
10 State Income Tax
11 Local Income Tax
Account 190
Electric
Gas
Other (Define)
Total (Total of lines 2 thru 4)
Other (S eci )
818,604 248,290 571 520
(3,580,092)87,766 1,461
238,512 336,056 572,981
654 161 261 959 124 358
50,892,673 598,015 448,623
50,892,673 598,015 448,623
FERC FORM NO.2 (12-98)Page 234
Name of Respondent
Avista Corp
This Report Is:
(1)~An Original
(2)DA Resubmission
Date of Report
(Mo, Da, Yr)
Apri117,2006
Year of Report
December 31, 2005
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 YEAR ADJUSTMENTS
Amounts Amounts Debits to 190 Credits to 190
Debited to Credited to
Account 410.Account 411.2 Acct. No.Amount Amount
(e)
155,409 0 190xxx 180 907 conversion 667,314
0 conv. & 254180 182 465
155,409 5,363,372 667,314
229,436
0 151310 58,674
0219000 443,839
236000 501,097
0 245100 215 944
254180 307,464
0 conversion 405 045 various 180,907
155,409 229,436 081 829 22,656,782
155,409 229,436 081,829 22,656,782
Balance at
End of Year
Line
No.
10,500,018 2
516,068 3
12,016,086 5
40,497 280 6
58,674 6.
443,839 6.
(21,501 097) 6.
215 944 6.
(307 464) 6.
224,138 6.
647,400 7
647,400 9
FERC FORM NO.2 (12-98)Page 235
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) DA Resubmission 04/17/2006
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 (i.e., year and
company title) may be reported in column (a) provided the fiscal years for both the 10-K report and this report are compatible.
2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year.
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)
1 Account 201 - Common Stock Issued
No Par Value 200,000,000
TOTAL COM 200 000 000
Account 204 - Preferred Stock Issued 10,000,000
Cumulative
TOTAL PRE 10,000,000
FERC FORM NO.2 (ED. 12-91)Page 250
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) EjA Resubmission 04/17/2006
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 REACOUIRED STOCK (Account 217)IN SINKING AND OTHER FUNDS No.for amounts held by respondent)
~l1ares Amount ares ~9st Sh!'j.res Amount
(e)(f)
(g)
(h)(i)
48,593,193 631 083 752
48,593,193 631 083,752
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 2005/04
(2) Fi A Resubmission 04/17/2006
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.
I LIne l,;lass ana ::;enes of Stock Balance at cna or year
No.(a)(b)
1 Common Stock - Public Issue 151,239
$6.95 Preferred Stock, Series K 334 005
22 TOTAL 10,485,244
FERC FORM NO.2 (ED. 12-87)Page 254b
This Page Intentionally Left Blank
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) 0 A Resubmission 04/17/2006
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)
1 Acct. 221 - Bonds:
2 Secured Medium Term Notes $1 212 550,000 023 850,000 10,999 718
3 (Premium)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 111 650 000 368 633
Acct. 222 - Reacquired Bonds
Acct. 223 - Advances from Associated Companies-A. Advantage $1 ,200k; A. Energy $60 800 000
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 344 853,000 033 380
FERC FORM NO.2 (ED. 12-96)Page 256
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) 0 A Resubmission 04/17/2006
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-term
advances, show for each company: (a) principal advanced during year, (b) interest added to principal amount, and (c) principle repaid
during year. Give Commission authorization numbers and dates.
13. 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 Ul!tstanClln Line
Nominal 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)
631 282 687 29,560 147
12/18/1984 12/01/2023 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
719,082 687 34,012 397
800 000
4/5/2004 4/1/2034 4/30/2004 3/31/2034 856 000 020,640
06/03/1997 06/01/2037 06/30/1997 5/31/2037 547 000 190,568
9/15/1992 9/15/2007 9/15/1992 9/15/2007 28,000 000 037 219
12/17/2004 12/16/2009 12/13/2004 12/16/2009 63,000 000 779,831
4/03/2001 6/01/2008 4/03/2001 6/01/2008 280 538,636 817 168
000 000 613,116
225,824 323 80,470 939
FERC FORM NO.2 (ED. 12-96)Page 257
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) D A Resubmission 04/17/2006
RECONCILIATION OF REP( RTED NET INCOME WITH TAXABL 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 group
member, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members.
3. A substitute page, designed to meet a particular need of a company, may be 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.
...Ine Particulars WetailS)Amount
No.(a)(b)
1 Net Income for the Year (Page 117)45,168 302
Taxable Income Not Reported on Books
069 688
Deductions Recorded on Books Not Deducted for Return
85,020,424
Federal Income Tax 255,940
Deferred Income Tax 256,976
Investment Tax Credit 49,308
Income Recorded on Books Not Included in Return
197 069
Equity in Sub Earnings (Income) / Loss 611 524
Deductions on Return Not Charged Against Book Income
95,798 519
Federal Tax Net Income
Show Computation of Tax:
Federal Tax Net Income 218,144
$80 218,144 x 35% = 28,076 350 076 350
Settlement of prior years tax returns & adjustment of tax reserves
affecting deferred taxes 179,590
255,940
FERC FORM NO.2 (ED. 12-96)Page 261
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 2005/04(2) DA Resubmission 04/17/2006
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 )h~xes ~~S Adjust-C arged aidNo.(See instruction 5)axes Accru~!J ~repatdl axes ~nng ~ring ments(Account 236)(Include In Account 165)ear ear(a)(b)(c)(d)(e)(f)
1 FEDERAL:
2 Income Tax (2003)298,448
3 Income Tax (2004)8,460,297 838,180 771 991 268,549
4 Income Tax (2005)481 007 30,259,880 841,089
5 Unemployment Ins 2003
6 FICA (2004)
7 FICA (2005)860 594 860 594
8 Retained
9 Retained 463,362
Retained 386,815
Total Federal 923 659 116 606 348,483 274 092
STATE OF WASHINGTON:
Property Tax (2003)651 380 '1,008
Property Tax (2004)319 000 800,128 545 613
Property Tax (2005)279 000 127
Excise Tax (2001)
Excise Tax (2002)614 253,104 205
Excise Tax (2003)
Excise Tax (2004)172 926 347 521 865,465
Excise Tax (2005)239 355 16,678,923
Gas Surcharge 373 732 25,228
Muni Utility & Occupation Tax 016,522 127 825 16,673,402
Sales & Use Tax (2005)725 383 765,715
Motor Vehicle (2005)154 154
Total Washington 474 858 46,564 284 45,563 176
STATE OF IDAHO:
Income Tax (1997-2000)981 138 637,739
Income Tax (2001)085 967 005 879
Income Tax (2002)343,072 872 997
Income Tax (2003)547 345 355,774
Income Tax (2004)80,977 375,488 43,417 515,383
Income Tax (2005)794 763 678,000
Property Tax (2003)2,404 2,404
Property Tax (2004)690,396 63,843 754 239
Property Tax (2005)238,114 634 627
Excise Tax (2003)
Excise Tax (2004)737 197 318
Excise Tax (2005)
TOTAL 11,313,430 587 398 853,779 667 762
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 2005/04(2) 0 A Resubmission 04/17/2006
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 , ACjUstments to Het.Other No.
ACCO
~gJ 236)
(Incl. in Account 165)(Account 408.1, 409.(Account 409.Eammgs (Account 439)
(h)(i), OJ (k)(I)
1 .298,448
25,750,020 34,838,180
619,962 693,033 787,974
860 594
463 362
386 815 386 815
26,921,711 693 033 18,576,427
023 609 989
26,741 442 782 357,346
10,279,127 055,000 224 000
202 688 253 104
40,060 347 521
560 432 12,476 301 763,054
877 44,710 022
470 945 842,266 285,559
333 725 383
154
475,958 30,880,469 683 815
343 399 637 739
080 088 005 879
470,075 872,997
191 571 355 774
501 375,488
116 763 109 925 684 838
328 924
27,605 36,238
603,487 493,937 744,177
142 270 927
112,798 994 899 592,499
FERC FORM NO.2 (ED. 12-96)Page 263
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) D A Resubmission 04/17/2006
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 Mxes ~0s Adjust-C argedNo.(See instruction 5)l:axes AccruE;!p prepaip Taxes ~nng ~ring ments(Account 236)(Include In Account 165)ear ear
(a)(b)(c)(d)(e)(f)
1 Motor Vehicle Ins. (2005)600 600
2 Sales & Use Tax (2005)881 547
Irrigation Credits (2002)12,041 397 311
Irrigation Credits (2003)160 138 311
Irrigation Credits (2004)
Irrigation Credits (2005)162
7 KWH Tax (2004)22,881 545 26,427
8 KWH Tax (2005)289,182 289 272
9 Franchise Tax (2003)268,657 268 657
Franchise Tax (2004)397 741 194 135 751 264 184
Franchise Tax (2005)211 230 849 246 4,473
Totalldaho 527,438 9,445,482 9,474,437 515,383
STATE OF MONTANA:
Income Tax (1996-2000)615,757 400 242 969 417
Income Tax (2001)186,912 771 493
Income Tax (2002)69,988 45,492
Income Tax (2003)316 250,133 378,504
Income Tax (2004)171,403 162,207
Income Tax (2005)897 508 394 000
Property Tax (2000)384
Property Tax (2001)166 988
Property Tax (2002)35,843 375
Property Tax (2003)572
Property Tax (2004)3,425,014 3,424 020
Property Tax (2005)296 988 655 015
KWH Tax (2004)181 383 262 866
KWH Tax (2005)150 555 893 617 276
Motor Vehicle (2005)980 980
Consumer Council Tax 994 586 310 270
Public Commission Tax
Total Montana 335 283 275,435 296 912
STATE OF OREGON:
Income Tax (1999 & Older)215 213 -139,513
Income Tax (2000)158 916 103 296
Income Tax (2001)853 745 555,415
Income Tax (2002)347 797 226 068
Income Tax (2003)85,291 -102 792
Income Tax (2004)26,995 40,623 291 792
TOTAL 313,430 587 398 98,853,779 667,762
FERC FORM NO.2 (ED. 12-96)Page 262.
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/Q4(2) 0 A Resubmission 04/17/2006
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)(Incl. in Account 165)(Account 408.1, 409.(Account 409.Eamlngs (Account 439)
(h)(i)
(j)
(k)(I)
600
666 50,881
333 397
333 138
226 143
155 162
545
309 526 20,344
543 651
357 511 890 528 320 702
013,866 853 312 592 170
184;932 400,242
415,419 771,493
24,496 492
134 687 250,133
196 162 207
503 508 862,252 256
384
166 988
468 375
572
994
641 973 296,988
483
258,214 150 555
980
586
313,806 321,405 970
700 139 513
55,621 103 296
298,330 555,415
121 729 226,068
501 102 792
144 455 623
112 798 79,994 899 592,499
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 2005/04(2) 0 A Resubmission 04/17/2006
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)arnounts 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 b~xes ~ras Adjust-C ar,gedNo.(See instruction 5). axes Accru~f:I ~repala I axes ~nng ~ring ments(Account 236)(Include In Account 165)ear ear(a)(b)(c)(d)(e)(f)
1 Income Tax (2005)208,857 122 500
2 Property Tax (2003)190,000 148,907 093
3 Property Tax (2004)579,527 717 318 125,518
4 Property Tax (2005)776 932 252 806
5 Motor Vehicle (2005)169 169
6 Busn Energy Tax Credit 431 020
7 Busn Energy Tax Credit 244
8 Busn Energy Tax Credit 55,790
9 Busn Energy Tax Credit 966 15,899
Busn Energy Tax Credit 44,059
Busn Energy Tax Credit 164 041
Franchise Tax (2002)
Franchise Tax (2004)793,315 747 861,323
Franchise Tax (2005)554 615 2,426 233
Total Oregon 489 724 115,304 751 351 792
STATE OF CALIFORNIA:
Income Tax (1996-2000)158,423 102 975
Income Tax (2001)142 429 92,579
Income Tax (2002)863 461
Income Tax (2003)058 088 430
Income Tax (2004)40,941 12,526 583 15,158
Income Tax (2005)137 000
Property Tax (2004)297 293
Property Tax (2005)
Excise Tax (1999-2000)163 163
Excise Tax (2001)
Excise Tax (2004)343 820 163
Excise Tax (2005)
Franchise Tax (2002)
Franchise Tax (2003)159,977 159 977
Franchise Tax (2004)405 316 491 405 807
Franchise Tax (2005)
Califomia PUC Tax 137 137
California Use Tax 068 041
Total Califomia 498 205 609 396 695 162
MISCELLANEOUS STATES:
Income Tax (2004 and older)179 460 338
Income Tax (2005)
TOTAL 313,430 587 398 853,779 667 762
FERC FORM NO.2 (ED. 12-96)Page 262.
Name of Respondent This ~)Qrt Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2005/Q4(2) DA Resubmission 04/17/2006
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
~gJ 236)
(Incl. in Account 165)(Account 408., 409.(Account 409.Earnings (Account 439)
(h)(i)(k)(I)
86,357 123 689 168
148 907
273 185 875 531,443
475,874 86,000 690 932
169
431,020
244
790
865 15,899
059
164 041 164,041
261 747
128 382 554 615
49,980 246,657 868 647
448 102 975
850 579
402 17,461
33,400 088
36,326 526
137 137
51,293
820
159,977
491
137
063 56,609
057 5,460
112 798 79,994 899 592,499
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 2005/04
(2) Ei A Resubmission 04/17/2006
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 ~1~es ~1a'Adjust-C ar.gedNo.(See instruction 5)1axes Accru~p ~repai.d Taxes ~nng ~ring ments(Account 236)(Include In Account 165)ear ear
(a)(b)(c)(d)(e)(f)
Total Misc States 179 460 376
3 COUNTY & MUNICIPAL
4 Forrest Fire Protection
5 Greenacres Irrigation
6 City of Spokane PBIA 1,470 470 470
7 W A Dept of Natural
8 Spokane Utility Tax 972 767 205
9 Columbia Irrigation 136 112
Misc.105,144 126 710 22,740
Total County 99,792 121,436 21,349
TOTAL 313,430 587,398 853 779 667 762
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 2005/04(2)DA Resubmission 04/17/2006
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 , AOjUstments to Met.Other No.
ACCO
~sr 236)(lncl. in Account 165)(Account 408.1, 409.(Account 409.Eamlngs (Account 439)
(h)(i)(k)(I)
095 5,460
470 1,470
767
175 126,710
295 121 413
112 798 994 899 592 499
FERC FORM NO.2 (ED. 12-96)Page 263.
Name of Respondent This
wort
Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) 0 A Resubmission 04/17/2006
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
nonutility operations. Explain by footnote any correction adjustments to the account balance shown in column (g).lnclude in column (i)
the average period over which the tax credits are amortized.
,,-
Ine Account
No.subd
lx~sions
of Yea, Defe'"dfo, Yea, CUIT"oj Yee', ","me Adjuotme,"(b) ACCOUlJt No. Amount Account NO. Amourlf
( )
(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%)570 960 411400 49,30E
TOTAL PROPERTY 570,960 49,30E
FERC FORM NO.2 (ED. 12-89)Page 266
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) DA Resubmission 04/17/2006
ACCUMULATED D FERRED INVESTMENT TAX CRED S (Account 255) (continued)
ADJUSTMENT EXPLANATION Lineof Year of AI ocatlon No.to Income
521 652
521 652
FERC FORM NO. 21 (ED. 12-89)Page 267
Name of Respondent
Avista Corp.
This Report Is:
(l)~ An Original
(2)0 A Resubmission
Date of Report
(Mo, Da, Yr)
Year of Report
April 17, 2006 December 31 2005
MISCEILANEOUS CURRENT AND ACCRUED LIABll.lTIES (Account 242)
1. Describe and report the amount of other current and
accrued liabilities at the end of year.
2. Minor items (less than $100 000) may be grouped
under approprate title.
Line
No.
Item
Balance at
End of Year
(a)(b)
950 000
182 081
Margin Call Deposit (242050)
Forest Use Permits (242060)
R. Hanson Settlement (242090)
Hamilton St. Bridge (Gas Plant) (242100)
11 Audit Expense Accrual (242200)
15 FERC Administrative Fee Accrual (242300 & 242310)
17 Non-monetary Power Exchange (242500)
19 Demand Side Mgmt Tariff Rider (242600)
21 Payroll Equalization (242700)
23 Low Income Energy Assistance (242770)
25 Workers Compensation Reg Liab (242830)
27 Accounts Payable - Inventory Accrual (242900)
29 Accounts Payable - Expense Accrual (242910)
41 TOTAL
550
247,186
(30 000)
106,000
107 772
(442,276)
10,580 829
2,181 083
199 404
327,840
374 783
29,801 252
Page 268
FERC FORM NO.2 (ED. 12-86)
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2005/04
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)
(2) DA Resubmission 04/17/2006
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.
(a)
Unearned Interest - Customer
wiring & conversions (253000)
8 CIT Oper Lease (253090) 9/2006
10 BPA C&RD Receipts (253100)
12 Trust Fund-Centralia (253110)
14 Rathdrum Refund (253120)
15 Amort =25 years, through 1/2020
17 NE Tank Spill (253130)
19 CS2 GE Long Term Service
20 Agreement (253150)
22 Supplemental Executive
23 Retirement Plan (253290)
29 ID Clark Fork Relicense (253890)
31 Deferred Compensation
32 (253900, 253910, 253920)
34 Amort. Unbilled Revenue Add-ons35 (253990)
(b)
Contra
Account
(c)
Amount Credits
Balance at
End of YearLine
No.
Description and Other
Deferred Credits
Balance at
Beginning of Year
DEBITS
(d)(e)(f)
664 171000 664
Deferred Revenue Prepayment -
Pacific Walla Walla/Enterprise
Amort = 19 yrs (253080)
174 456.372 32,802
734 931000 39,277 29,457
460,980 various/186.536,119 394 200 319 061
896,423 186870 17,014 913,437
510 154 550000 33,822 476,332
552000 000,000 000,000
154/232 938 883 938,883
443 268 various 294 155 16,737 423
Gain on Sale and leaseback
of Building (Amortization period
is 25 years) (253850)
830 192 931000 261 456 568 736
420 706 184999 681 462 387
126 250 232 255,834 870,416
161 283 various/190 281,279 880 004
47 TOTAL 33,121 416 461 504 644 252 304 164
FERC FORM NO.2 (ED. 12-94)Page 269
This ~ort Is: Date of Report
(1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2006
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.
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2005/04
Line
No.
CHANGES DURING YEAR
Account Balance 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
5 TOTAL (Enter Total of lines 2 thru 4)
6 Non-operating
217,481,287
55,006 958
740 394
289,228 639
307 286
356 165
160,481
349 512
167 134
9 TOTAL Account 282 (Enter Total of lines 5 thru
10 Classification of TOTAL
11 Federal Income Tax
293 535,925 167 134
12 State Income Tax
13 Local Income Tax
285 288,190
247 735
532 567
365,433
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 04/17/2006
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282) (Continued)
3. Use footnotes as required.
Year/Period of Report
End of 2005/04
CHANGES DURING YEAR
Amounts Debited Amounts Credited
to Account 410.to Account 411.
ADJUSTMENTS
Amount
Balance at
End of Year
Line
No.
Debits
NOTES (Continued)
FERC FORM NO.2 (ED. 12-96)Page 275
This ~ort Is: Date of Report
(1) ~ An Original (Mo, Da, Yr)
(2) DA Resubmission 04/17/2006
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 2005/04
Name of Respondent
Avista Corporation
(a)
Balance at
Beginning of Year
(b)
Line
No.
Account
1 Account 283
2 Electric
Electric 63,707,197 911 045 508 356
9 TOTAL Electric (Total of lines 3 thru 8)
10 Gas
11 Gas
707 197 911 045 508,356
016,104 346,102
17 TOTAL Gas (Total of lines 11 thru 16)
18 Other
016 104
164 656 998
234,380,299
346,102
555,825
19 TOTAL (Acct 283) (Enter Total of lines 9, 17 and 18)
20 Classification of TOTAL
21 Federal Income Tax
120,768 508,356
22 State Income Tax
23 Local Income Tax
NOTES
FERC FORM NO.2 (ED. 12-96)Page 276
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)
(2) DA Resubmission 04/17/2006
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.
Name of Respondent
A vista Corporation
Year/Period of Report
End of 2005/04
CHANGES DURING YEAR
Amounts Debited Amounts Credited
to Account 410.to Account 411.
ADJUSTMENTS
Balance at
End of Year
(k)
Line
No,
612,211 888,996
56,564 581
564 581
575,034
182320 612 211 conversi 888 996
120 398 various 291,612 conversi 384 042
120 398
532,419 conv/var
532 419
291,612
643,448 236000
547 271
384 042
222 242
6,495 280
16,575 034
155,147 548
228,287 163
120 398
NOTES (Continued)
FERC FORM NO.2 (ED. 12-96)Page 277
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2005/Q4
(2) FiA Resubmission 04/17/2006
0 HER 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 EndLineDescription and Purpose of of Current of CurrentNo.Other Regulatory Liabilities QuarterlY ear Account Amount Credits QuarterIYearCredited
(a)(b)(c)(d)(e)(f)
CentraliaSale (254110)749 003 47410 341 551 2,407,452
FAS109-Acctg for Inc. Taxes (254180)307,464 407110 556 280 908
Nez Perce - Reg Liability (254220)858,428 186800 008 836,420
BPA Residential Exch (254345 ED WA)241 201 407450 102 998 861 797
BPA Residential Exch (254344 ED ID)719,685 407450 270,166 550481
BPA Residential Exch (254346 ED WA)554 431100 28,852 32,406
BPA Residential Exch (254346 ED ID)431100 367 367
MarkloMktFAS133 (254740)821 101 176740/750 85,868,891 112 689 992
TOTAL 34,700 436 15,763 279 314 388 116,251 545
FERC FORM NO. 2/3-Q (REV 02-04)Page 278
This Page Intentionally Left Blank
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 17, 2006 Dec. 31 2005
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
" "
(480) Residential Sales 229 736 621 194,470 117
481) Commercial and Industrial Sales
Small (or Comm.) (See Instr. 6)126 647 601 104 754 350
LarQe (or Ind.) (See Instr. 6)867 199 9,422 721
(482) Other Sales to Public Authorities
484) Interdepartmental Sales 424 720 362 706
TOTAL Sales to Ultimate Consumers 368,676,141 (1)309 009,894
(483) Sales for Resale 085,081 152 110
TOTAL Nat. Gas Service Revenues 431 761 222 309,162 004
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 431 761 222 309,162,004
OTHER OPERATING REVENUES
(485) Intracompany Transfers
(487) Forfeited Discounts
(488) Misc. Service Revenues 203,038 280 063
(489) Rev. from Trans. of Gas of Others 601 297 187 511
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 15,060 060
494) Interdepartmental Rents
495) Other Gas Revenues 635 580 848 688
TOTAL Other Operating Revenues 454 975 11,331 322
TOTAL Gas OperatinQ Revenues 443,216,197 320 493 326
Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 443 216,197
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line 356 384 222
Sales to Resid. and Comm. Custrs.
Main Line Industrial Sales (Incl. Main 867 199
Line Sales to Pub. Authorities)
Sales for Resale 085 081
Other Sales to Pub. Auth. (Local Dist. Only)
,.,::... .""
Interdepartmental Sales 424 720
TOTAL (Same as Line 10, Columns (b) and (d))431 761 222
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This R~ort Is:(1) l29 An Original
Date of Report
(Mo, Da, Yr)
Year of Report
Avista Corporation (2)A Resubmission Dec. 31 2005April 17 2006
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 Me!
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 for
Previous Year
FERC FORM NO.2 (ED. 12-86)
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
265,294
122 851 688
13,273,911
479 230
338,301 092
305 000
338,606 092
297 304
297 317
NOTES
Quantities of natural gas expressed in therms:
to convert therms to MCF, divide therms by a
BTU factor of 10.
(1) Includes $8 277 794 un billed revenues.
(2) Includes 187 388 therms relating to unbilled revenues.
Page 301
886
311
300,796
300,796
Name of Respondent This R~ort Is:Date of Report Year of Report
(I) X An Original (Mo, Da. Yr)
Avista Corp,(2)A Resubmission April 17,2006 December 31,2005
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous vear is not derived from previouslv reported figures, explain in footnotes.
Amount for Amount for
Line Amount CWTent 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 Engineering
751 Production Maps and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Exoenses
755 Field Compressor Station Fuel and Power
756 Field Measuring and Regulating Station Expenses
757 Purification Expenses
758 Gas Well Rovalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
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 Reg. Sta. EQuipment
767 Maintenance of Purification EQuipment
768 Maintenance of Drilling and Cleaning EQuipment
769 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29)
B2. Products Extraction
Operation
770 Operation Supervision and Engineering
771 Operation Labor
772 Gas Shrinka!!e
773 Fuel
774 Power
775 Materials
776 Operation Supplies and Expenses
777 Gas Processed by Others
778 Rovalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventorv
(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~ort Is:Date of Report Year of Report(I) X An Original (Mo. Ou. Yr)
A vista Corp,(2)A Resubmission April 17,2006 December 31, 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)(h)(e)
B2, Products Extraction (Continued)
Maintenance
784 Maintenance Supervision and Engineering
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refining 'Eouioment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storage EOuipment
789 Maintenance of Compressor -EcmiDment
790 Maintenance of Gas Measuring and Reg. EouiDment
791 Maintenance of Other Eouinment
TOTAL Maintenance (Enter Total of lines 49 tbru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C. Exploration and Develonment
Doeration
795 Delav Rentals
796 Nonproductive Well Drilling
797 Abandoned Leases
798 Other ExDloration
TOTAL Exploration and Develonment (Enter Total of lines 61 thru 64)
D. Other Gas SUDDlv Exoenses
~"""."
iii.
:",
.i'Operation
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases. IntracomDanv Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Pruchases
803 Natural Gas Transmission Line Purchases
804 Natural Gas Citv Gate Purchases 352 974.203 217.925,718
804.1 Liouefied Natural Gas Purchases
805 Other Gas Purchases 1.805,315 070.037)
(Less) 805.1 Purchased Gas Cost Adjustments (15,502.240)
TOTAL Purchased Gas (Enter Total of lines 67 to 76)339,277,278 213,855.681
806 Exchange Gas
Purchased Gas ExDenses
, , "' ,,
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 Exnenses 328,577
807.5 Other Purchased Gas Exoenses
TOTAL Purchased Gas Exoenses (Enter Total of lines 80 tbru 84)328,577
808,1 Gas Withdrawn from Stora"e-Debit 500,964
(Less) 808.2 Gas Delivered to Storage-Credit (15,883,491)(83,689)
809.1 Withdrawals of Liauefied Natural Gas for Processing-Debit
(Less) 809.2 Deliveries of Natural Gas for Processing-Credit
Gas Used in Utilitv Ooerations-Credit
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utilitv Operations-Credit
TOTAL Gas Used in UtilitY Operations-Credit (Total oflines 91 tbru 93)
813 Other Gas SuODlv ExDenses 353,413 404 814 I
TOTAL Other Gas SuDDlv Exp (Total of lines 77,78,85,86 tbru 89.94.95)328,248,164 214 505.383
TOTAL Production Expenses (Enter Total of lines 3,30,58,65, and 96)328,248,164 214,505,383 I
FERC FORM NO, 2 (ED 12-88)Page 321
Name of Respondent lbis R~ort Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp,(2)A Resubmission April 17.2006 December 31 . 2005
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!!Tound Storae:e Expenses
100 Operation
101 814 Oneration Supervision and Ene:ineerine:44,259 15,828
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 Ree:ulating Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses 270.603 334,655
112 825 Storae:e Well Rovalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 10 Ithru 113)314 862 350,483
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 Measuring and Ree:ulating Station EQuipment
122 836 Maintenance of Purification Eauipment
123 837 Maintenance of Other Eauipment 301,538 171.691
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)301 538 171,691
125 TOTAL UndeT!!round Stora!!eExpenses (Total of lines 114 and 124)616,400 522 174
126 B. Other Stora!!e Expenses
127 Operation
128 840 Operation Supervision and En!!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 Engineering
137 843.2 Maintenance of Structures and Improvements
138 843,3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification E~uipment
140 843.5 Maintenance of Liouefaction Eouipment
141 843,6 Maintenance of Vaporizine: E uipment
142 843.7 Maintenance of Compressor ~uipment
143 843.8 Maintenance of Measurin!! and Ree:ulatine: Eauipment
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~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission Apri117 2006 December 31, 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)(b)(e)
147 C. Liouefied Natural Gas Tenninalin!! and Processing Expenses
148 Operation
149 844,1 Operation Supervision and En!!ineerin!!
150 844,2 LNG Processin!! Tenninal Labor and Expenses
151 844.3 LiQuefaction Processin!! 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 Exnenses
155 844,7 Communication Svstem Expenses
156 844,8 Svstem Control and Load Dispatchin!!
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 DemuIT'd!!e Char!!es
161 (Less) 845.5 Wharfa!!e Receipts-Credit
162 845.6 Processin!! LiQuefied or Vaporized Gas bv 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 En!!ineerin!!
168 847.2 Maintenance of Structures and hnprovements
169 847.3 Maintenance of LNG Processing Tenninal EQUinment
170 847.4 Maintenance of LNG Transoortation Eauipment
171 847.5 Maintenance of Measurin!! and Re!!ulatin!! Eauipment
172 847,6 Miantenance of Compressor Station EQuinment
173 847.7 Maintenance of Communication Eouioment
174 847,8 Maintenance of Other Eauioment
175 TOTAL Maintenance (Enter Total of lines 167 thru 174)
176 TOTAL Liouefied Nat Gas Tenninalin!! and Processing Exp (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125, 146, and 176)522,174
178 3. TRANSMISSION EXPENSES
, "
179 Ooeration ii"
180 850 Operation Supervision and Engineering
181 851 Svstem Control and Load Dispatchin!!
182 852 Communication Svstem Expenses
183 853 Compressor Station Labor and Exoenses
184 854 Gas for Comoressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measurin!! and Re!!ulatin!! Station Exoenses
188 858 Transmission and Compression of Gas bv Others
189 859 Other Expenses
190 860 Rents
191 TOTAL Ooeration (Enter Total of lines 180 thru 190)
FERC FORM NO.2 (ED 12-88)Page 323
Name of Respondent TlUs R
lRjon Is:
Date of Repon Year of Repon(I) X An Original (Mo, Du, Yr)
A vista Corp,(2)A Resubmission April 17. 2006 December 3 I. 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Line Amount Current Year Previous Year
No.(a)(b) (e)
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenance Supervision and Engineering
194 862 Maintenance of Structures and Imnrovements
195 863 Maintenance of Mains
196 864 Maintenance of Comoressor Station EQuipment
197 865 Maintenance of Measuring and Reg. Station EQuioment
198 866 Maintenance of Communication EQuioment
199 867 Maintenance of Other Eouioment
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 ODeration
204 870 Operation Supervision and Engineering
205 871 Distribution Load Dispatching (226)
206 872 Comnressor Station Labor and Expenses
207 873 Comoressor Station Fuel and Power
208 874 Mains and Services Expenses 704 167 993,80 I
209 875 Measuring and Regulating Station Exoenses-General 205,208 87,741
210 876 Measuring and Regulating Station Expenses-Industrial 814 973
211 877 Measuring and Regulating Station Expenses-City Gate Check Station 157,945 112,188
212 878 Meter and House Regulator Exoenses 866,590 592 238
213 879 Customer Installations Expenses 740,276 951,323
214 880 Other Expenses 130.771 713,864
215 881 Rents 25,167 161
216 TOTAL Operation (Enter Total of lines 204 thru 215)642,405 9,404,163
217 Maintenance
218 885 Maintenance Suoervision and Engineering 232 841 113,811
219 886 Maintenance of Structures and Improvements 776
220 887 Maintenance of Mains 310,578 640,131
221 888 Maintenance of Compressor Station auioment
222 889 Maintenance of Meas. and Reg. Sta,:Ouip.General 314,981 395,207
223 890 Maintenance of Meas, and ReI!. Sta.:Ouip.Industrial 133,875 215,084
224 891 Maintenance of Meas. and Reg, Sta,:Ouip.Citv Gate Check Station 47,378 52,473
225 892 Maintenance of Services 936.679 320,696
226 893 Maintenance of Meters and House Regulators 925,246 711,130
227 894 Maintenance of Other Eauipment 68,804 68,916
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)970 383 520 224
229 TOTAL Distribution Exoenses (Enter Total of lines 216 and 228)13,612,787 13,924,387
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 593,279 81,506
233 902 Meter Readinl! Expenses 699,998 076,492
234 903 Customer Records and Collection Expenses 5,492 147 247 929
235 904 Uncollectible Accounts 291,166 440 131
236 905 Miscellaneous Customer Accounts ExDenses 458,803 417,106
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)535,393 10,263,164
FERC FORM NO, 2 (ED 12-88)Page 324
Name of Respondent lbis R
ooort Is:
Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
Avista Corp,(2)A Resubmission April 17,2006 December 31,2005
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)(e)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
, ,
239 Operation
,,' ,,
240 907 Supervision
241 908 Customer Assistance Expenses 627,742 293,430
242 909 Informational and Instructional Expenses 212 168,574
243 910 Miscellaneous Customer Service and Infonnational Exnenses 65,160 55,101
244 TOTAL Customer Service and Information Expenses (Lines 240 thru 243)705,113 517,105
245 7. SALES EXPENSES
246 Operation
247 911 Supervision
248 912 Demonstrating and Selling Expenses 536,215 695.836
249 913 Advertising Expenses 132,076 106,417
250 916 Miscellaneous Sales Expenses 46,235 517
251 TOTAL Sales Expenses (Enter Total of lines 247 thru 250)714,526 811 770
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
" ',"."",.'
253 Operation I,"
","
254 920 Administrative and General Salaries 361,647 143,730
255 921 Office Supplies and Expenses 606,775 333,303
256 (Less) (922) Administrative Expenses Trnnsferred-Cr.(8,285)(5,597)
257 923 Outside Services Employed 3,577,242 250,858
258 924 Property Insurnnce 296 094 290,984
259 925 Injuries and Damages 247 845 1,469 382
260 926 Emplovee Pensions and Benefits 254,156 666,794
261 927 Franchise Requirements
262 928 Regulanory Collmllssion Exoenses 240,819 294 935
263 (Less) (929) Duplicate Charges-Cr.
264 930.1 General Advertising Expenses (8,098)
265 930.2 Miscellaneous General Expenses 229,064 258 529
266 931 Rents 972,489 743,385
267 TOTAL Operation rEnter Total of lines 254 thru 266)17,769,748
268 Maintenance
""\.'",,."
269 935 Maintenance of General Plant 707,099 193,844
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)19,476,847 19,640,147
271 TOTAL Gas O. and M. Exp (Lines 97 177,20 1,229,237,244 25 I ,and 270)376,909,231 265,184 130
NUMBER OF GAS DEPARTMENT EMPLOYEES
I. The data on number of employees should be reported construction employees in a footnote.
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
ber3!.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
employees on line 3, and show the number of such special functions,
Pavroll Period Ended (Date)December 31,2005
Total Regular Full-Time Emplovees 361T 332
Total Part-Time and Temporarv Emplovees allocation of General Emplovees 331
Total Emplovees 3941 368
FERC FORM NO.2 (ED 12-88)Page 325
Name of Respondent This ~ort Is:
129 An Original
Date of Report
(Mo, Da, Yr)
April 17 2006
Year of Report
Avista Corporation A Resubmlssion Dec. 31, 2005
Other Gas SUDDlv ExDenses (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 themaintenance 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 Amount
(in Dollars)
(b)(a)
Gas Resource Management
Labor
Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel, Training Etc.
Amortization of Gas Operations Database
Credit Exposure Reserve
Regulatory Affairs
Labor
Other Expenses (Phone Bills, Professional Services , Gas Reports, Travel, Etc.
39 TOTAL
457 377
353,993
156,159
112 061
79,874
193,949
1 ,353,413
FERC FORM NO.2 (ED 12-96)Page 334
This report is:
(1) (X)An Original
Year of ReportName of Respondent
Line
No.
Date of Report
(Mo, Da, Yr)
Avista Corp.(2) ( ) A Resubmission April 17 2006 Dec. 31 2005
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
Description
(a)
Industry Association Dues
Nuclear Power Research Expenses
Other Experimental and General Research Expenses
Publishing and Distributing Information and Reports to Stockholders; Trustee, Registrar and Transfer
Directors Fees and Expenses
Miscellaneous General Expenses
, Community Relations
Educational - Informational
Other Miscellaneous General Expenses
Other Miscellaneous Labor
TOTAL
FERC FORM NO.2 (ED. 12-96)Page 335
Amount
(b)
327 199
978
135 581
520 382
124 953
375
41 ,596
229 064
Name of Respondent This R~rt Is:(1) IK.I An Original
Date of Report
(Mo Da, Yr)
Year of Report
Avista Corporation (2) D A Resubrnission April 17, 2006 Dec. 31 , 2005
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403 404.404.404.404.405)
(Exce t Amortization of Ac uisition Ad'ustments)
Line
No.
1. 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 in column (b) all depreciable plant balances togroups shown. which rates are applied and show a composite total. (If
2. Report all available infonnation called for in Sec- more desirable, report by plant account, sub account or
tion B for the report year 1971, 1974 and every fifth year functional classifications other than. those pre-printed in
thereafter. Re ort onI annual chan es in the intervals column a. Indicate at the bottom of Section B theSection A. of De reciation, De letion, and Amortization Char es
Amortization and Deple-
tion of Producing Natural
Gas Land and Land
Rights (Account 404.
Functional Classification
Depreciation
Expense
(Account 403)
Amortization of Under-
ground Storage, Land
Land Rights and Misc.
Intang (Account 404.
6,453
208
419 003
lant-Allocated
13,419,432
611 116
043,164
TOTAL 15,493 923 453
SectionB.
1. Plant balances listed in Section C, Column b are derived at by taking the beginning p1an.t balance plus the ending plant balance
divided by two.
FERC FORM NO.2 (ED. 12-86)Page 336
Name of Respondent
A vista Corporation
This R~ort Is:(1) 129 An Original
Year of Report
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403, 404., 404., 404., 404,, 405)
(Except Amortization of Acauisition Adiustments) (Continued)
manner in which column (b) balances are obtained. If
average balances, state the method of averaging used.
For column (c) report available infonnation for each plant
functional classification listed in column (a). If composite
depreciation accounting is used. Report available infor-
mation called for in columns (b) and (c) on this basis.
Where the unit-of-production method is used to determine
Section A.
Amortization of
Leasehold
hnprovements
(Account 404.
and 404.75)
(f)
Amortization of
Other Limited-term
Gas Plant
(Account 404.
(e)
283 646
620 702
904 348
Amortization of
Other Gas Plant
(Account 405)
(z)
15,128
290,160
305 288
FERC FORM NO.2 (ED. 12-86)
Date of Report
(Mo, Da, Yr)
(2)D A ResubrnisslOn April 17, 2006 Dec. 31 , 2005
depreciation charges, show at the bottom of Section B
any revisions made to estimated gas reserves.
3. If provisions for depreciation were made during the
year in addition to depreciation provided by application
of reported rates, state at the bottom of Section B the
amounts and nature of the provisions and the plant items
to wbichrelated.
of Depreciation, Depletion, and Amortization Charl!es
Total
(b to g)Functional Classification
(h)(a)
290 099 Intangible plant
208 Production plant, manufactured gas
Production and gathering plant
naturall!as
Products extraction plant
419 003 Undereround I!as storage plant
Other storage plant
Base load LNG terminating and
processing plant
0 Transmission plant
13,419,432 Distribution Plant
626 244 General plant
954 026 Common general plant-Allocated
16,710 012 TOTAL
Page 337
Line
No.
Name of Respondent This R
iKJrt Is:
Date of Report Year of Report (1) X An Original (Mo, Da, Yr)
complete
A vista Corporation (2)A Resubmission April 17 2006 Dec. 31, 2005
Section C.
Depreciable Applied
Line Functional Classification:Plant Base Depr. Rate(s)
No.(Thousands)(percent)
(a)(b)(c)
Underground Gas Storage Plant: (2)
350
351 064 1.75%
352 747 00%
352.203 22%
352.1 (Leasehold Improvements)254
352.047 54%
353 823 06%
354 005 32%
355 163 66%
356 405 97%
357 664 77%
Total 399
Production - Manufactured Gas:
2305 80%
2311 1.80%
Total
Distribution Plant:
375.665 19%
376 234 356 38%
378 375 13%
379 068 24%
380 169 204 67%
381 728 1.94%
385 985 2.43%
387
Total 470 382
General Plant:
390.341 61%
390.
391 189 53%
391.1 30%
392 069
393 100 51%
394 309 24%
395 912 27%
396 396
397 583 82%
398 1.28%
Total 972
Total Depreciable Gas Plant 503 820
FERC FORM NO.2 (ED. 12-S6)Page 338-
This Page Intentionally Left Blank
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 17, 2006 Dec. 31 , 2005
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; 426.4, 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. 425.00 - MISCELLANEOUS AMORTIZATIONS
Gas plant acquisition adj. Applicable to purchase of CP National
OreQon & California distribution system. Contra account 115.00.182 975
Total - 425.182 975
Acct. 426.10 - DONATIONS
Project Share 550,000
Items Under $50,000 324,169
Total 426.10 874 169
Acct. 426.20 - LIFE INSURANCE
Officers Life 123,374
SERP 563,598
Total 426.20 686 972
Acct. 426.30 - PENALTIES
All Items Under $20 000 (15,530)
Total 426.30 (15,530)
Acct. 426.40 - EXPENDITURES FOR CERTAIN CIVIC, POLITICAL
AND RELATED ACTIVITIES
Items Under $50,000 893,627
Total 426.40 893,627
Acct. 426.50 - OTHER DEDUCTIONS
Other (8,000)
Coyote Sprinas 2 Reserve Amortization (104 072)
Kettle Falls Reserve Amortization (188,272)
Executive Deferred Compensation 749,771
Cash Reduction for PGE Monetization 88,125
Total 426.50 537 552
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 Resubr 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 II (Ionq-term debt) (variable rate ranged from 3.275 to 5.285 percent)182 063
AVA Capital Trust III (interest rate of 6.5 percent)020,640
Total 430.202 703
Acct. 431.00 - OTHER INTEREST EXPENSE
All items less than $250,000 569,331
Total 431.00 569,331
FERC FORM NO.2 (ED. 12-87)Page 340.
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04
(2) D A Resubmission 04/17/2006
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 . D~terred
No.(Fumish 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)
1 FEDERAL ENERGY REGULATORY COMMISSION
Charges include annual fee and license fees
3 the Spokane River Project, and the Cabinet
4 Gorge Project and Noxon Rapids Project.380 227 35,140 2,415,367
6 WASHINGTON UTILITIES & TRANSPORTATION
7 Includes annual fee and various other electric
8 dockets.620 100 446,814 066 914
Includes annual fee and various other natural 284 187 178,634 462 821
gas dockets.
IDAHO PUBLIC UTILITIES COMMISSION
Includes annual fee and various other Electric
dockets 470 949 120 083 591 032
Includes annual fee and various other natural
gas dockets.152 938 006 192 944
OREGON PUBLIC UTILITIES COMMISSION
Includes annual fee and various other natural
gas dockets 266 609 138 327 404 936
CALIFORNIA PUBLIC UTILITIES COMMISSION
Includes annual fees and various other natural
gas dockets. Operations were sold in 4/2005.544 25,548 092
Not directly assigned electric 398,394 398 394
Not directly assigned natural gas 150,027 150,027
TOTAL 179 554 532 973 712 527
FERC FORM NO.2 (ED. 12-96)Page 350
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation
(1) An Original (Mo, Da, Yr)End of 2005/04(2) OA Resubmission 04/17/2006
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 AMORTIZED DURING YEAR
CURRENTLY CHARGED TO Deferred to Contra Amount Deferred in Line
Department "'c ~~~m Amount Account 182.Account Account 182.No.End of Year
(f)
(g)
(h)(i)(k)(I)
Electric 928 2,415,367
Electric 928 066,914
Gas 928 462 821
Electric 928 591 032
Gas 928 192 944
Gas 928 404 936
Gas 928 092
Electric 928 398 394
Gas 928 150 027
712 527
FERC FORM NO.2 (ED. 12-96)Page 351
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2005/04
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2006
DISTRIBUTION OF SALARIES AND AGES
Report below the distribution of total salaries and wage!? for the year. Segregate amounts originally charged to clearing accounts to
Utility Departments, Construction , Plant Removals, and Other Accounts, and enter such amounts in the appropriate lines and columns
provided. In determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation
giving substantially correct results may be used.
(a)
Direct PayrollDistribution
(b)
TotalLine
No.
Classification
Electric
Operation
Production
Transmission
Distribution
6 Customer Accounts
Customer Service and Informational
Sales
Administrative and General
10 TOTAL Operation (Enter Total of lines 3 thru 9)
11 Maintenance
12 Production
13 Transmission
14 Distribution
15 Administrative and General
16 TOTAL Maint. (Total of lines 12 thru 15)
17 Total Operation and Maintenance
18 Production (Enter Total of lines 3 and 12)
19 Transmission (Enter Total of lines 4 and 13)
20 Distribution (Enter Total of lines 5 and 14)
21 Customer Accounts (Transcribe from line 6)
22 Customer Service and Informational (Transcribe from line 7)
23 Sales (Transcribe from line 8)
24 Administrative and General (Enter Total of lines 9 and 15)
25 TOTAL Oper. and Main!. (Total of lines 18 thru 24)
26 Gas
27 Operation
28 Production--Manufactured Gas
29 Production-Nat. Gas (Including Expl. and Dev.
30 Other Gas Supply
31 Storage, LNG Terminaling and Processing
32 Transmission
33 Distribution
34 Customer Accounts
35 Customer Service and Informational
36 Sales
37 Administrative and General
38 TOTAL Operation (Enter Total of lines 28 thru 37)
39 Maintenance
40 Production-Manufactured Gas
41 Production-Natural Gas
42 Other Gas Supply
43 Storage, LNG Terminaling and Processing
44 Transmission
45 Distribution
46 Administrative and General
47 TOTAL Maint. (Enter Total of lines 40 thru 46)
832,997
778,128
728,442
587 980
412 907
325,410
627 942
293 806
263,407
385 644
104 199
587,980
412 907
325 410
627,942
707,489
123 850
104 941
108 553
157 067
622 905
12,691,558
FERC FORM NO.2 (ED. 12-88)Page 354
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2006
DISTRIBUTION OF SALARIES AND WAGES (Continued)
Year/Period of Report
End of 2005/04
Line
No.
Classification Direct PayrollDistribution
(b)
Total
(a)
48 Total Operation and Maintenance
49 Production-Manufactured Gas (Enter Total of lines 28 and 40)
50 Production-Natural Gas (Including Expl. and Dev.) (Total lines 29,
51 Other Gas Supply (Enter Total of lines 30 and 42)
52 Storage, LNG Terminaling and Processing (Total of lines 31 thru
53 Transmission (Lines 32 and 44)
54 Distribution (Lines 33 and 45)
55 Customer Accounts (Line 34)
56 Customer Service and Informational (Line 35)
57 Sales (Line 36)
58 Administrative and General (Lines 37 and 46)
59 TOTAL Operation and Maint. (Total of lines 49 thru 58)
60 Other Utility Departments
61 Operation and Maintenance
62 TOTAL All Utility Dept. (Total of lines 25,59, and 61)
63 Utility Plant
64 Construction (By Utility Departments)
65 Electric Plant
66 Gas Plant
67 Other (provide details in footnote):
68 TOTAL Construction (Total of lines 65 thru 67)
69 Plant Removal (By Utility Departments)
70 Electric Plant
71 Gas Plant
72 Other (provide details in footnote):
73 TOTAL Plant Removal (Total of lines 70 thru 72)
74 Other Accounts (Specify, provide details in footnote):
75 Stores Expense (163)
76 Regulatory Assets (182)
77 Preliminary Survey and Investigation (183)
78 Small Tools Expense (184)
79 Miscellaneous Deferred Debits (186)
80 Non-operating expenses (417)
81 Exp. of Certain Civic, Political and Related Activities (426)
82 Employee Incentive Plan (232)
83 DSM and Payroll accrual (accrued vacation) (242)
95 TOTAL Other Accounts
96 TOTAL SALARIES AND WAGES
553,035
207
426,130
325,451
104 941
108,553
157,067
622 905
319,289
19,073,079
5,466 868
000 210
719,824
25,073,289
186,692
wEI~K8ETIiJEEi!tlZd0iili111ti;: i
~ , , ~
JfZ lilll ~ J10i 0' ~ B
539,947 720,034 259 981
744 511 147,325 891 836
105,918 959 126,877
850,429 168 284 018,713
390,939 390,939
85,810 85,810
100,867 100,867
742,390 742,390
22,627,172 627,172
906,004 906 004
211,467 211,467
549,262 549,262
13,663,861 957 376 706,485
277 772
127 694 926
639 967 637 805
127 694 926
FERC FORM NO.2 (ED. 12-88)Page 355
Name of Respondent
Avista Corp.
This report is:
( X) An Original
Date of Report Year Ending
(Mo, Da, Yr)
) A Resubmission April 17 2006 Dec. 31 , 2005
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.
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.
Acres International Corporation
Davis Wright tremaine LLP
Delinea
Dorsey & Whitney LLP
Deloitte & Touche LLP
Dewey Ballantine LLP
Ensr Corp
Entrix Inc
Golder Associates Inc
10 Goldman Sachs & Co11 Heller Ehrman White &...
12 Impac
13 Paine Hamblen Coffin Brooke
14 The Louis Berger Group
15 Va Tech Hydro USA
16 Van Ness Feldman
17 Lehman Brothers
1 8 Oracle USA
19 The Vanguard Group
FERC FORM NO.2 (ED. 12-96)
Description
(a)
Amount
(in dollars)
(c)(b)
266 077
379 190
350,667
667 829
064 246
313 500
330 045
064 183
397 312
510 000
257 212
288 318
276,788
459 850
545,284
366 189
520 000
390 028
1 ,195,873
Page 357 (Next page is 512)
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This ~ort Is:(1) ~ An Original
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
Year of Report
April 17, 2006 Dec, 31 , 2005
GAS STORAGE PROJECTS
1. Report injections and withdrawals of gas for all storage projects used by respondent.
Item
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
Total
Amount
(Dth)Line
No.
do)
, , " -- ..
118,600 118,600
145,961 145 961
748,141 748,141
211 387 211 387
461 822 461 822
21,976 21,976
350 350
40,930 40,930
755 167 755,167
729,171 729,171
728 957 728,957
314 952 314 952
326 326
000 000
36,648 36,648
515,111 515,111
331 165 331,165
FERC FORM NO.2 (ED 12-96)Page 512
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 17 2006 Dec. 31 2005
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, 3, 4, 7.
If quantity is converted from Met to Dth, provide conversion factor in a footnote.
Line Item Total
No.Amount
(a)(b)
StoraQe Operations (In Dth)
Top or WorkinQ Gas End of Year (Note)738,459
Cushion Gas (Including Native Gas)180,674
Total Gas in Reservoir (Enter Total of Line 1 and 2)13,919,133
Certificated Storaoe Capacity 14,113,819
Number of Injection - Withdrawal Wells
Number of Observation Wells
Maximum Day s Withrawal from Storage 233,756
Date of Maximum Days' Withdrawal January 14, 2005
LNG Terminal Companies (In Dth)(1)
Number of Tanks
Capacity of Tanks
LNG Volumes
Received at "Ship Rail"
Transferred to Tanks
Withdrawn from Tanks
Boil Off" Vaporization Loss
Notes:
The factor to convert Mcf to Dth is 1.028.
The above information represents the company s one-third share of Jackson Prairie Storage Project.
(1) 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 513
Name of Respondent This
ooort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp.(2)A Resubmission April 17 2006 Dec. 31 , 2005
TRANSMISSION MAINS
Show particulars Called for Concerning 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)(c)(d)(e)(I)
Steel Coated Over 4" through 10"723,360 723 360
Steel Coated 4" or Less 840 5280 21,120
TOTALS 280 744 480
* 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 This (RJort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 Dec. 31, 2005
DISTRIBUTION MAINS
Show particulars Called for Conceminq Distribution Mains
Total Length in I Taken up 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
(a)(b)(c)(d)(e)(f)
The Washinqton Water Power System
Steel Wrapped Less than 2"008,640 800 061,440
Steel Wrapped 2" to 4" 874,400 1 ,874,400
Steel Wrapped 4" to 8"145,760 21,120 1 ,166,880
Steel Wrapped 8" to 12"163,680 163,680
Steel Wrapped Over 12"800 800
The WP Natural Gas Svstem
Steel Wrapped Less than 2"115 200 120 396,000 740 320
Steel Wrapped 2" to 4"897 600 73,920 823 680
Steel Wrapped 4" to 8"617 760 10,560 190,080 438,240
Steel Wrapped 8" to 12"15,840 15,840
Steel Wrapped Over 12"
The Washinqton Water Power System
Plastic Less than 2"10,200 960 443,520 10,644 480
Plastic 2" to 4" 090,880 100,320 191 200
Plastic 4" to 8"454 080 240 496 320
Plastic 8" to 12"
Plastic Over 12"
The WP Natural Gas Svstem
Plastic Less than 2"163 840 316,800 512 160 968,480
Plastic 2" to 4"823,680 21,120 640 776,160
Plastic 4" to 8"080 280 63,360
Plastic 8" to 12"
Plastic Over 12"
TOTALS 683,200 034 880 240 800 32,477 280
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) IRJ An Original (Mo, Da, Yr)
Avista Corp.(2) D A Resubmission April 17 2006 Dec. 31, 2005
SERVICE PIPES GAS
Show the particulars called for concernina the line service pi e 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)fc)fd)fe)(f)
(g)
Washington Water Power System
Steel Wrapped l' or Less 59,934 963 Not
Steel Wrapped 1 " thru 2"110 115 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
WP Natural Gas System
Steel Wrapped l' or Less 39,924 915 009
Steel Wrapped 1" thru 2"500 165 638
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
WashinQton Water Power System
Plastic l' or Less 128 299 802 752 130,349
Plastic 1" thru 2"839 867
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
WP Natural Gas System
Plastic l' or Less 73,370 932 8,433 67,869
Plastic 1" thru 2"838 818
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
TOTALS 306 079 966 152 294 893
FERC FORM NO.Page 514-
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 17, 2006 Dec. 31 2005
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)
(g)
(h)
Detailed infonnation not available.
TOTAL 327 804 13,000 617 317,187
FERC FORM NO.Page 514-
Avista Corporation
This ~ort Is:(1) ~ An Original
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
Year of ReportName of Respondent
April 17 2006 Dec. 31 , 2005
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.
Line
No.
Location of
Facility
Type of Facility
Maximum Daily
Delivery Capacity
of Facility.
Dth
Cost
Facility
(In dollars)
Was Facility Operated
on Day of Highest
Transmission Peak
Delivery?
(a)(b)(c)(d)
Yes
(e)if)
Chehalis, Washington
Chehalis, Washington
10 Plymouth, Washington
14 Plymouth, Washington
18 Lovelock, Nevada
23 Notes:
25 (1) Respondent is a participant in the facilities, not an owner and is charged a fee for demand deliverability and capacity.
Undergound Natural Gas
Storage Field
Washington & Idaho Supply
126,670 18,804 509
Undergound Natural Gas
Storage Field
Oregon Supply
26,540 (1 )
Liquified Natural Gas
Storage Tanks
Washington & Idaho Supply
220,000 (1 )
Liquified Natural Gas
Storage Tanks
Oregon Supply
192 000 (1 )
Liquified Natural Gas
Storage Tanks
California Supply
65,350 (1 )
FERC FORM NO.2 (ED 12-96)Page 519
Name of Respondent This Report Is:Date of Report Year of Report
129 An Original (Mo, Da, Yr)
Avista Corporation A Resubmission April 17 2006 Dec, 31 2005
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 additionai rows as necessary to
local distribution company portion of the reporting report all data, numbered 14,01,14,, 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)841 ,295
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305
Gas of Others Received for Distribution (Account 489.301 16,902 468
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 by Others (Account 858)332
Other Gas Withdrawn from Storaqe (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 14.58,743,763
GAS DELIVERED
Gas Sales (Accounts 480 - 484)33,641,410
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305
Deliveries of Gas Distributed for Others (Account 489.301 16,902,468
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 Storaqe (Explain)
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale 996,035
Total Deliveries (Total lines 17 thru 27.58,539,913
GAt) UNAccoUNTED FOR
Production Svstem Losses
Gatherinq System Losses
Transmission System Losses
Distribution System Losses 203,850
Storaqe System Losses
Other Losses (Specify)
Total Unaccounted For (Total lines 30 thru 35)203,850
Total Deliveries & Unaccounted For (Total lines 28 thru 36)58,743,763
FERC FORM NO.2 (ED. 12-96)Page 520
Name of Respondent This Report is:Date of Report Year/Periodof Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
FOOTNOTE DATA
chedule Pa e: 103 Line No.25 Column: d
Subsidiary of Avista Capital. In 2003, assets previously held by Avista Laboratories,
were aquired by ReliOn, Inc. (formerly AVLB, Inc.Avista Labs investment in ReliOn,
is accounted for under the cost method.
ISchedule Page: 103.Line No.14 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.
Inc.Inc.
'Schedule Page: 103.Line No.17 Column: d
Previously 50% owned by Mirant Americas Development, Inc.
50% ownership interest in January 2005.
Avista Corp. purchased Mirant I s
I FERC FORM NO.2 (ED. 12-87)Page 450.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
FOOTNOTE DATA
ISchedule Page: 122(a)(b) Line No.Column:
Foreign currency translation adjustment at Avista Energy, rnc. (a subsidiary) .
I FERC FORM NO.2 (ED. 12-87) Page 450.
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
FOOTNOTE DATA
'Schedule Page: 233.Line No.Column: f
With the implementation of a new financial system the following lines were combined to
equal to the balance on line 2 page 233.1: lines 10,11,12,13,15,16,20,21,23,28,& 31
ISchedule Page: 233.Line No.35 Column: f
With the implementation of a new financial system lines 14,17,18,19,24& 25 were combined
to equal balances on lines 35 and 36.
ISchedule Page: 233.Line No.36 Column: f
With the implementation of a new financial system Conservation program balances for lines
14,17,18,19,24 and 25 were combined to equal balances on lines 35 & 36.
I FERC FORM NO.2 (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 04/17/2006 2005/04
FOOTNOTE DATA
'Schedule Page: 261 Line No.Column: b
BPA C&RD Receipts
Contributions in Aid of Construction
CSS Temp Service Fees
Customer Uncollectibles - Sales for Resale
BETC Interest (perm Diff)
Transportation Tax Depreciation Capitalized
Taxable Income Not Reported on Books
ISchedule Page: 261 Line No.10 Column: b
Hamilton Street Bridge
Severance Stock Options - Accelerated Vesting
SERP - Supplemental Exec Retire Plan
Non-monetary Purchased Power
Amortization of Centralia Gain
Book Depreciation
Rathdrum Turbine Lease Sales Tax Refund
Investment Exchange Power - WNP3
FAS 106 - Def Amort-Postretirement Benefits
Redemption Expense Amortization - PCB'
DSM - Program Amortization
Political Contributions
Paid Time Off Equalization
Sale/Lease General Office Building
Airplane Lease Payments
CIT Operating Lease
FAS 106 Current Retiree Medical Accrual (Non-op)
Redemption Expense Amortization - (except PCB'
Meal Disallowances
Transportation Book Depreciation
Preferred Dividend Requirement
Deductions Recorded on Books Not Deducted for Return
ISchedule Page: 261 Line No.15 Column: b
(141 919)
5,495,000
(182 734)
417,815
(36,424)
517,950
069 688
(509,406)
655 263
(1,334,954)
(2,341 551)
79,237 750
(33,828)
2,450 028
394 920
194,424
782,438
893 629
(102 119)
666,258)
217,106
(26,208)
353,456)
059 107
288 000
178 320
037,219
020 424
I FERC FORM NO.2 (ED. 12-87) Page 450.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2006 2005/04
FOOTNOTE DATA
Injury & Damages
Kettle Falls Non-operating
Gain on General Office Building
CS2 Retention
Clark Fork PME'
Nez Perce Settlement
FAS 87
DefelTed Compensation Accrual
W NID Unbilled Revenue Add-oDS
NE Tank Spill
Boulder Disallowance
PCA Write-down (IPUC Order Oct 2004)
W A DefelTed Power Costs
Idaho Purchased Cost Adjustment
DefelTed Gas & DefelTed Gas Interest
WPNG DSM & Interest
PGE Monetization
Section 199 Manufacturing Deduction
NWP Lewiston Meter
AFUD C
Officers' Life Insurance (perm Diff)
Income Recorded on Books Not Included in Return
'Schedule Page: 261 Line No.: 20 Column: b
BP A Residential Exchange - W AIID
W A & ill DSM TarrifRider
Cost of Removal / Salvage
Basic American Foods - Non-utility
Tax Depreciation
WPNG Acquisition & Tax Amortization
Deductions on Return Not Charged Against Book Income
(450 711)
(188 268)
(261,456)
(457,408)
(73,762)
(16,796)
096,235)
98,902
(281,279)
89,714
103,656
786)
17,341,709
695,922
(16,039,678)
(343 996)
235,483
(1,100,705)
797,194
174 689)
(677,742)
197 069
379,766)
124 284
(653,530)
788
(97 900 013)
002 718
(95 798,519)
I FERC FORM NO.2 (ED. 12-87) Page 450.
Name of Respondent This report is:Date of Report Year of Report
(1) (X)An Original (Mo, Da, Yr)
Avista Corp.(2) ( ) A Resubmission April 17 2006 December 31 2005
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
FOOTNOTE DATA
ISChedule Page: 335 Line No.: 5
Directors 2005 Expenses
ERIK J ANDERSON
KRISTIANNE BLAKE
JOHN F KELLY
MICHAEL L NOEL
DAVID A CLACK
R JOHN TAYLOR
JESSIE J KNIGHT JR
LURA J POWELL
ROY EIGUREN
JACK W GUST A VEL
$13,916.
$22 251.
$14,806.
328.
$27 100.
$13,677.
$9,968.
$10 952.44
340.
237.
ISchedule Page: 335 Line No.: 6
Vendor
Vendors Under $5000
SCOTT L MORRIS
TREASURERS OFFICE TAXES AND LICENSES
THE DAVENPORT HOTEL
THE RICHARDSON COMPANY
GARY EL Y
CITIBANK NA
FITCH RATINGS
THE COEUR D ALENE RESORT
GANNETT FLEMING COMPANIES
NEW YORK STOCK EXCHANGE INC
JPMORGAN CHASE BANK
ADP INVESTOR COMMUNICATION SERVICES INC
CORP CREDIT CARD
STANDARD & POORS
MOODYS INVESTORS SERVICE
POTTER CONSULTING
DEWEY BALLANTINE LLP
THE BANK OF NEW YORK
BANKERS TRUST NYC
Purpose
Employee Misc Expe
License Fees
Pay Stations
Professional Service:
Employee Misc Expe
Miscellaneous
Miscellaneous
Miscellaneous
Professional Service:
General Services
Miscellaneous
General Services
Subscriptions
Miscellaneous
Miscellaneous
Miscellaneous
General Services
Miscellaneous
Miscellaneous
Amount
109
781
200
212
223
647
768
660
823
320
889
13,956
806
14,710
496
570
19,789
838
695
115 066
- '
. n6
.iiiLi;f:"
:"S;';i'
2005 Form 2
State Supplements
~A- 5 )
This Page Intentionally Left Blank
tate 0 as lllgton
Name of Respondent This R
lRfrt Is:
Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
A vista Corp (2)A ResubmisslOn April 17 2006 Dec. 31, 2005
STATEMENT OF INCOME FOR THE YEAR
Report amounts for accounts 412 and 413, Revenue 5. Give concise explanations concerning unsettled rate
and Expenses from Utility Plant Leased to Others, in another proceedings where a contingency exists such that refunds
utility column (i o) in a similar manner to a utility depart-of a material amount may need to be made to the utility
ment.Spread the amount(s) over lines 01 thru 20 as ap-customers or which may result in a material refund to the
propriate. Include these amounts in columns (c) and (d)utility with respect to power or gas purchases. State for each
totals.year affected the gross revenues or costs to which the con-
Report amounts in account 414, Other Utility Operating tingency relates and the tax effects together with an expla-
Income, in the same manner as accounts 412and413 above.tion of the major factors which affect the rights of the utility
Report data for lines 7 9, and 10 for Natural Gas com-to retain such revenues or recover amounts paid with respect
panies using accounts 404,1, 404.2 404,407,and 10 power and gas purchases,
407,6. Give concise explanations concerning significant
Use page 122 for important'notes regarding the state-amounts of any refunds made or received during the year
ment of income or any account thereof,
(Ref.TOTAL
Line Account Page Current Year Previous Year
No.No.
(a)(b)(c)(d)
UTILITY OPERATING INCOME
Operating Revenues (400)300-301 $724,016 704 $568,604 722
Operating Expenses
Operation Expenses (401)320-325 527,085,432 367 871 095
Maintenance Expenses (402)320-325 957,149 16,257,714
Depreciation Expense (403)336-338 43,616 488 37,716,369
Amort. & DepI. of Utility Plant (404-405)336-338 6,460 594 599,495
Amort. of UtilitY Plant Aca. Adi. (406)336-338 743 31,691
Amort. of Property Losses, Unrecovered Plant and
Regulatory Study Costs (407)r? 7?~\\~"~~J
Amort. of Conversion Expenses (407)
Regulatory Debits (407.168,551
(Less Regulatory Credits (407.388,413 7,459,555
Taxes Other Than Income Taxes (408.262-263 45,724,311 49,416,932
Income Taxes - Federal (409.262-263 004 703
- Other (409.262-263
Provision for Deferred Income Taxes (410.234,272-277 727,548 807 668
(Less) Provision for Deferred Income Taxes -Cr. (411.1)234 272-277 3,433 365
Investment Tax Credit Adi. - Net (411.4)266 30,624 30,624
(Less) Gains from Disp. of Utilitv Plant (411.6)
Losses from Disp. of Utilitv Plant (411.7)
(Less) Gains from Disposition of Allowances (411.8)
Losses from Disposition of Allowances (411.9)
TOTAL Utility Operating Expenses
(Enter Total of lines 4 thru 22)634 184 228 483,380,303
Net Utility Operating Income (Enter Total of
line 2 less 23) (Carry forward to page 117,
line 25)$89,832,476 $85,224 419
fW
FERC FORM NO.2 (REVISED 12-96)Page 114
tate 0 as mgton
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 Resubnussion April 17 2006 Dec. 31, 2005
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 foonote if 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.
$509,490,290 $416,053,278 $214,526,414 $152 551,444
~- """,::"
350 742,712 244,444 072 176,342 720 '123,427,023
15,646,116 13,514 335 311,033 743.379
37,188,506 273,958 6,427,982 5,442,411
642 160 214,442 818,434 385,053
31,743 691
(3,736)
168 551
388,413 459,555
879,860 36,569,590 844,451 12,847,342
863,378 (3,858,675)
004,622)008,276 732 170 799,392
392 953 40,412
30,624 :30,624
426,738,062 338,456,451 207,446,166 144,923 852
$82 752 228 $77,596 827 $7,080 248 $7,627 592
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 Resubmisslon April 17 2006 Dec. 31 2005
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 years 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
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:
( XJ An Original
Date of Report
(Mo, Da, Yr)
State of Washin ton
Year Ending
Avista Corp.J A Resubmission April 17, 2006 Dec. 31 2005
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 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 (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction., If proposed journal entries
showing the clearance of Account 102, include in column (e) have been tiled 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.
; 27
Page 205FERC FORM NO.2 (ED. 12-96)
tate 0 as InQton
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17,2006 Dec. 31 , 2005
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 28thru 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 412 611
350.2 Rights-of-Way 23,874
351 Structures and Improvements 063,700
352 Wells 713 900 257
352.1 Storage Leaseholds and Rights 254 354
352.2 Reservoirs 203 330
352.3 Non-recoverable Natural Gas 121 926
353 Lines 823,423
354 Compressor Station Equipment 993,799 185
355 Measuring and Regulating Equipment 153,965 954
356 Purification Equipment 403,713 538
357 Other Equipment 651 666 314
TOTAL Underground Storage Plant (Enter Total of lines 42thru 53)18,820 261 134 248
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)820 261 134 248
TRANSMISSION PLANT
365.1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
fW
FERC FORM NO.2 (ED. 12-96)Page 206
tate 0 as InglOn
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17, 2006 Dec. 31 2005
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.
412 611
23,874
063 700
779 157
254 354
203 330
150 000 971 926
823,423
016 984
171,919
407 251
675 980
150,000 804 509
150,000 18,804 509
fW h" t
FERC FORM NO.2 (ED. 12-96)Page 207
tate 0 as InQton
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo, Da, Yr)
Avista Corp.I A Resubmission April 17, 2006 Dec. 31,2005
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 MeasurinQ and ReQulatinQ Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land RiQhts 328
375 Structures and Improvements 341 120 45,101
376 Mains 100 313,336 540 309
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General 221 685 129 065
379 Measuring and Regulating Equipment-City Gate 716,408 238
380 Services 065 575 227 639
381 Meters 001 837 835 368
382 Meter Installations
383 House Regulators
384 House Regulator Installations
385 Industrial MeasurinQ and ReQulatinQ Station Equipment 702 139 691
100 386 Other Property on Customers' Premises
101 386 Other Equipment
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)205,422,428 849,411
103 GENERAL PLANT
104 389 Land and Land Rights
105 390 Structures and Improvements 443 804 150,905
106 391 Office Fumiture and Equipment
107 392 Transportation Equipment 755 607 579
108 393 Stores Equipment 137 598
109 394 Tools, Shop, and Garage Equipment 728 264 53,199
110 395 Laboratory Equipment 181 177
111 396 Power Operated Equipment 266 147 132 867
112 397 Communication Equipment 496,431 532
113 398 Miscellaneous Equipment
114 Subtotal (Enter Totals of lines 104 thru 113)915 567 415 680
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)915 567 415 680
117 TOTAL (Accounts 101 and 106)230 376 981 11,455,548
118 Gas Plant Purchased (See Instruction 8);---1119(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)230 376 981 11,455,548
fW
FERC FORM NO.2 (ED. 12-96)Page 208
a e 0 as In!:J' on
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17 2006 Dec. 31 2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)((I)No.
60,300
386 221
83,476 105 770 169
18,887 331 863
705 720 941
838 271 376
198,993 26,638,212
343 766,487
100
101
326,270 215 945 569 102
103
104
594 709 105
106
830,186 107
735 108
151 776 312 109
940 180 237 110
399 014 111
977 434 986 112
113
71,068 260,179 114
115
068 260 179 116
547,338 241 285,191 117
118
119
120
547 338 241 285 191 121
St t f W h' t
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
Name of Respondent This Report Is:Dale of Report Year of Report
!81 An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 17 2006 Dec, 31, 2005
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), (I), (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 (Le, fixed asset method or
the adjustments, the Dth and dollar amount of adjustment, and account inventory method),
charged or credited,
Report in coiumn (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,(a)(b)(c)(d)(e)(f)
(g)
(h)(I)
Balance at Beginning of Year 685 646 129 522 815 168
Gas Delivered to Storage 729,359 207 113 10,936,472
Gas Withdrawn from Storage 842,550 842,550
Other Debits and Credits 249 249
Balance at End of Year 572 455 336 884 909 339
Dth 436 814 112,012 548 826
Amount Per Dekatherm $5,9663 $3,0076 $5,7523
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 Washington
FERC FORM NO.2 (ED. 12-96)Page 220
State of Washinqton
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 17, 2006 Dec. 31 , 2005
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 aco tents of the gas sold and the sales converted to Mcf.
counts;except that where separate meter readings a 5. If increases decreases from previous year (col-
added for billing purposes, one customer should 'be countel 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) (c)
GAS SERVICE REVENUES
",'
,"'i'i' i
480) Residential Sales 112,489 326 , 91 341 542(481) Commercial and Industrial Sales
Small (or Comm.) (See Instr. 6)63,339,411 51 060,026
Larqe (or Ind.) (See Instr. 6)995 813 285,627
(482) Other Sales to Public Authorities
484) Interdepartmental Sales 364 959 334 126
TOTAL Sales to Ultimate Consumers 180 189,509 (1)146,021 321
483) Sales for Resale 031 362
TOTAL Nat. Gas Service Revenues 208 220,871 146 021 321
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 208,220 871 146 021 321UIHI::H~ ~...,.INl:i '~'-II::~
(485 Intracompany Transfers
487 Forfeited Discounts
(488 Misc. Service Revenues 73,980 239
(489 Rev. from Trans. of Gas of Others 521 509 (1)561 997
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 710 054 955 887
TOTAL Other Operatinq Revenues 305 543 530,123
TOTAL Gas Operatinq Revenues 214 526,414 152 551,444
Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 214 526,414
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line 175 828 737
Sales to Resid. and Comm. Custrs.
Main Line Industrial Sales (Incl. Main 995 813
Line Sales to Pub. Authorities)
:,,,~, '' , "
Sales for Resale 28,031 362 I' .
" ,
Other Sales to Pub. Auth. (Local Dist. Onlv)
Interdepartmental Sales 364 959
TOTAL (Same as Line 10, Columns (b) andld1f 208,220,871
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This R~ort Is:(1) ~ An Original
Date of Report
(Mo, Oa, Yr)
State of Washin ton
Year of Report
Avista Corporation (2)A Resubmission April 17 2006 Dec. 31 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 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 for
Previous Year
(e)
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Previous Year No.Quantity for Year
405,848
170,065,649
35,513 928
205 579,577
443 156
165 030 768
165,030,768
135 108
135 112
131 971
131 971
NOTES
(1) Includes $5,388,731 unbilled revenues,
(2) Includes 1 515,053 therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of Washington
Name of Respondent This R
rRjort Is:
Date of Report Year of Report(I) X An Original (Mo. Da. Yr)
A vista Corp.(2)A Resubmission April 17,2006 December 31. 2005
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)(h)(c)
1. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
,"" ,
B. Natural Gas Production
BI. Natural Gas Production and Gathering
...." ..'..".'"
Operation
750 Operation Supervision and Engineering
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 Regulating Station Expenses
757 Purification Expenses
758 Gas Well Rovalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
761 Maintenance Supervision and Engineering
762 Maintenance of Structures and Improvements
--
763 Maintenance of Producing Gas Wells
764 Maintenance of Field Lines
765 Maintenance of Field Cpmpressor Station EQuipment
766 Maintenance of Field Meas. and Reg. Sta, Eauipment
767 Maintenance of Purification Eauipment
768 Maintenance of Drilling and Cleaning EQuipment
769 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gathering (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 bv Others
778 Rovalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used bv 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 Washington
Name of Respondent This R
iEJort Is:
Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
Avista Corp,(2)A Resubnnssion April 17,2006 December 31 2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Line Amount Current Year Previous Year
No,(a)(b) (e)
B2. Products Extraction (Continued)
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 Ree:, Eouipment
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 Delav 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 ~i"
-","",;',
;i"'
...
Operation
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases, Intracompanv 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 175.191,246 100,951,201
804.1 Liquefied Natural Gas Purchases
805 Other Gas Purchases 070,886
(Less) 805.1 Purchased Gas Cost Adiustments (12,590,980)
TOTAL Purchased Gas (Enter Total of lines 67 to 76)163,671 152 100,951,201
806 Exchane:e Gas
Purchased Gas Expenses
';.-;;;::;'
-c-
807.! 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 147,609
807,5 Other Purchased Gas Expenses
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)147,609
808.1 Gas Withdrawn from Storae:e--Debit 2,408 307
(Less) 808.2 Gas Delivered to Storage-Credit 10,880,761
809,1 Withdrawals of Liouefied Natural Gas for Processine:-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 Utilitv Operations-Credit
TOTAL Gas Used in Utilitv Operations-Credit (Total of lines 91 thru 93)
813 Other Gas Supplv Expenses 627,144 181 026
TOTAL Other Gas Supply Exp (Total of lines 77.78.85.86 thru 89,95)155,825.842 101 279,836
TOTAL Production Expenses (Enter Total of lines 3,30,58,65, and 96)155,825 842 101,279,836
FERC FORM NO, 2 (ED 12-88)Page 321
State of Washington
Name of Respondent This R~ort Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 December 31 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount CuTTen! Year Previous Year
No.(a)(b)Ie)
2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
:i'i
...;";";
A. Underground StoraJ1;e Expenses
100 Operation
"""....
101 814 Operation Supervision and Engineering 32,274 11,542
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 Measuring and Rel!Ulating Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses 197 323 244,030
112 825 Storage Well Royalties
113 826 Rents
114 TOTAL Operation (Enter Total oflines 101 thru 113)229,597 255 572
115 Maintenance
116 830 Maintenance Supervision and Engineering
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 MeasurinJ1; and Rej1;UlatinJ1; Station EQuipment
122 836 Maintenance of Purification EQuipment
--
123 837 Maintenance of Other EQuipment 219,881 125,197
124 TOTAL Maintenance (Enter Total of lines 116thru 123)219,881 125,197
125 TOTAL Underground Storage Expenses !Total of lines 114 and 124)380 769
126 B. Other StoraJ1;e Expenses
....;;';. ,,....,....,
127 Operation
128 840 Operation Supervision and EngineerinJ1;
--
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 Engineering
137 843,2 Maintenance of Structures and Improvements
--
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification I:Ouipment
140 843.5 Maintenance of LiQuefaction EQuipment
141 843.6 Maintenance of VaporizinJ1; E uipment
142 843,7 Maintenance of Compressor IQuipment
--
143 843,8 Maintenance of MeasurlnJ1; and ReJ1;ulatinJ1; EQuipment
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
0ort
Is:Date of Report Year of Report(I) X An Original (Mo, Do, Yr)
Avista Corp.(2)A Resubmission April 17.2006 December 31, 2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Line Amount Current Year Previous Year
No.(a)(b) (e)
147 C. Liquefied Natuntl Gas Tenninalinl! and Processinl! Expenses
148 Operation
149 844.1 Operation Supervision and Enl!ineerinl!
150 844.2 LNG Processinl! Tennina1 Labor and Expenses
151 844.3 Liquefaction Processinl! 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 Svstem Expenses
156 844.8 System Control and Load Dispatchinl!
157 845.1 Fuel
158 845,2 Power
159 845,3 Rents
160 845,4 DemUITal!e Charl!es
161 (Less) 845.5 Wharfal!e Receipts-Credit
162 845.6 Processinl! Liquefied or Vaporized Gas bv 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 Enl!ineering
168 847,2 Maintenance of Strucrures and Improvements
169 847.3 Maintenance of LNG Processinl! Terminal Equipment
170 847.4 Maintenance of LNG Transportation Equipment
171 847.5 Maintenance of Measurinl! and Rel!U1atinl! 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 Tenninalinl! and Processinl! Exp (Lines 165 & 175)
177 TOTAL Narural Gas storal!e (Enter Total of lines 125, 146. and 176)449,479 380 769.
178 3, TRANSMISSION EXPENSES
..:.
179 Operation
180 850 Operation Supervision and Encineerinl!
--
181 851 System Control and Load Dispatchinl!
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 Measurinl! and Rel!1!latinl! Station Expenses
188 858 Transmission and Compression of Gas bv 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 Washington
Name of Respondent This R~ort Is:Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
A vista Corp.(2)A ResubmisslOn April 17. 2006 December 31,2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(e)
3, TRANSMISSION EXPENSES (Continued)
';'' ""
192 Maintenance
193 861 Maintenance SuDervision and Enl!ineerinl!
194 862 Maintenance of Structures and ImDrovements
195 863 Maintenance of Mains
196 864 Maintenance of ComDressor Station Equipment
197 865 Maintenance of Measurinl! and ReI!, Station EauiDment
198 866 Maintenance of Communication Eaui pment
199 867 Maintenance of Other EauiDment
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 Doeration
,;,
204 870 Operation Supervision and Enl(ineerinl(353,098 405,243
205 871 Distribution Load Dispatching 226
206 872 ComDressor Station Labor and ExDenses
207 873 Compressor Station Fuel and Power
208 874 Mains and Services ExDenses 198,467 1,422 873
209 875 Measurinl( and Retrulatinl! Station ExDenses-Generai 75,327 835
210 876 Measurinl( and Rel(ulatinl( Station Expenses-Industrial 259
211 877 Measurinl( and Re!(Ulatinl( Station Expenses-Citv Gate Check Station 99,563 65,476
212 878 Meter and House Retrulator ExDenses 313,870 724,571
213 879 Customer Installations Expenses 689 942 561,901
214 880 Other Expenses 034,944 925 678
215 881 Rents 863 335
216 TOTAL ODeration (Enter Total of lines 204 thru 215)779 332 165,686
217 Maintenance
218 885 Maintenance Supervision and Enl!ineerinl!746
219 886 Maintenance of Structures and Improvements 776
220 887 Maintenance of Mains 114 543 224,476
221 888 Maintenance of Compressor Station uiDment
222 889 Maintenance of Meas. and ReI(. Sta.Quip.General 118 365 170,603
223 890 Maintenance of Meas, and ReI!. Sta,ouip.Industrial 48.236 127.207
224 891 Maintenance of Meas. and ReI(. Sta,QuiD,Citv Gate Check Station 471 35,849
225 892 Maintenance of Services 506.047 53,298
226 893 Maintenance of Meters and House Rel(ulators 430,406 336,170
227 894 Maintenance of Other Eauipment 14,197
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)325,011 950,379
229 TOTAL Distribution ExDenses (Enter Total of lines 216 and 228)104 343 116,065
230 5. CUSTOMER ACCOUNTS EXPENSES
; ', "' ,, ,
231 Operation
232 901 SuDervision 271 992 35,536
233 902 Meter Readinl( Expenses 995,842 008,161
234 903 Customer Records and Collection Expenses 526,692 740,346
235 904 Uncollectible Accounts 589,713 701 549
236 905 Miscellaneous Customer Accounts Expenses 209,156 228,564
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)593,395 714 156
FERC FORM NO, 2 (ED 12-88)Page 324
State of Washington
Name of Respondent This R
lRJort Is;
Date of Report Year of Report
(I) X An Original (Mo. Do. Yr)
Avista Corp.(2)A Resubmission April 17 2006 December 31, 2005
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous vear is not derived from previouslv reported figures, explain in footnotes,
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(h)(e)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision
241 908 Customer Assistance Expenses 473 086 082 180
242 909 Informational and Instructional Expenses 7,546 79.610
243 910 Miscellaneous Customer Service and Informational Expenses 43,137 37,198
244 TOTAL Customer Service and Information Exnenses (Lines 240 thru 243)523,768 198,988
245 7. SALES EXPENSES
246 Operation
247 911 Supervision
248 912 Demonstratin!! and Sellin!! Exnenses 218,332 366,342
249 913 Advertisin!! Expenses 55,349 65,737
250 916 Miscellaneous Sales Expenses 46.235 374
251 TOT AL Sales Expenses (Enter Total of lines 247 thru 250)319,916 436,453
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 344,492 828,248
255 921 Office Supplies and Expenses 691,066 042,254
256 (Less) (922) Administrative Exnenses Transferred-Cr.576 (3,847)
257 923 Outside Services Emploved 669 687 1,462 026
258 924 Property Insurance 148 303 137,385
259 925 Iniuries and DamaJ!:es 490 941 648 917
260 926 Emplovee Pensions and Benefits 147,780 306,111
261 927 Franchise Reauirements
262 928 Rej(Ulartorv Commission Expenses 536,818 531,725
263 (Less) (929) Duplicate Char!!es-Cr.
264 930,1 General AdvertisinJ!: Expenses 911
265 930,2 Miscellaneous General Expenses 602 911 616,166
266 931 Rents 447,369 807,347
267 TOTAL Operation (Enter Total of lines 254 thru 266)070,870 376,332
268 Maintenance
269 935 Maintenance of General Plant 766 1401 667,803
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)837,0101 044 135
271 TOTAL Gas 0, and M, Exn (Lines 97,177,201,229,237,244,251,and 270)179,653,75ir 126,170,402
Operations Expense
Maintenance Expense
176,342 720
311,032
179,653,752
123,427,023
743,379
126 170,402
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, 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
ber31.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
employees on line 3, and show the number of such special functions,
I. PaYToll Period Ended (Date)December 31 2005
2, Total Rej(Ular Full-Time Employees 180 153
3, Total Part-Time and Temporarv Emplovees allocation of General Emplovees
Total Emplovees 192 166
FERC FORM NO.2 (ED 12-88)Page 325
State ofWashinf!ton
Name of Respondent This
wort
Is:Date of Report Year of Report(1) An Original (Mo, Va, fr)
Avista Corp.(2)A Resubmission April 17,2006 Dec. 31, 2005
TRANSMISSION MAINS
Show particulars Called for Concemin.e: 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)(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.
(a)
Steel W rapped
Steel W rapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS
FERC FORM NO.
This ~ort Is:(1) I2SI An Original
(2) 0 A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo, , Yr)
April 17,2006
State of Washington
Year of Report
Dec. 2005
Show particulars Called for Concerning Distribution MainsTotal Length in I Taken up
Use BegInning of Laid During Abandoned Durin
Year, Feet Year, Feet Year, Feet
(c) (d) (e)
377 120 31,680
272 480
813,120
158,400
800
Diameter of
Pipe, Inches
(b)
Less than 2"
2" to 4"
4" to
8" to 12"
Over 12"
Less than 2"
to 4"
4" to 8"
8" to 12"
Over 12"
193,440
992 640
200,640
060,640
Page 514-
21 , 120
116,160
31,680
15,840
216,480
Total Length
in Use End
of Year, Feet
(f)
408,800
1 ,272,480
834 240
158,400
800
309,600
024,320
216,480
277,120
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
Avista Corp.(2) D A Resubmission April17,2006 Dec. 31,2005
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 Yea During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Steel Wrapped l' or Less 43,819 43,827 Not
Steel Wrapped 1" thru 2"076 081 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic l' or Less 989 752 237
Plastic 1" thru 2"679 700
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
TOTALS 127,722 752 127 006
In 1996 40,000 1" services were dropped from the report.
State of Washington
FERC FORM NO.Page 514-
State of Washington
Name of Respondent This R
liJort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17, 2006 Dec. 31 2005
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)
(g)
(h)
Detailed infonnation not available.
TOTAL 141,006 077 564 143 519
FERC FORM NO.Page 514-
State 0 Washington
Name of Respondent This Report Is:Date of Report Year of Report
An Original (Mo, Da, Yr)
Avista Corporation A Resubmission April 17 2006 Dec. 31 , 2005
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 inlerstate 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,, 14,, 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)20,409,979
Gas of Others Received for Gatherina (Account 489.303
Gas of Others Received for Transmission (489.305
Gas of Others Received for Distribution (Account 489.301 752 623
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
Receiots pf Respondent's Gas Transported by Others lAccount 858)332
Other Gas Withdrawn from Storace (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shiopers as Lost and Unaccounted for
Other Receipts (Specifv):
Total Receipts (Total lines 3 thru 14.162 602
GAS DELIVERED
Gas Sales (Accounts 480 - 484)17,006,565
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305
Deliveries of Gas Distributed for Others (Account 489.301 752,623
Deliveries of Contract Storace Gas (Account 489.4)307
Exchanoe 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 Storace (Explain)
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specifv): Sales for Resale 551 393
Total Deliveries (Total lines 17 thru 27.310,581
GAS UNACCOUNTED FOH
Production Svstem Losses
Gatherina System Losses
Transmission System Losses
Distribution Svstem Losses (147 979
Storaoe System Losses
Other Losses (Specifv)
Total Unaccounted For (Total lines 30 thru 35\(147 979
Total Deliveries & Unaccounted For (Total lines 28 thru 36)27,162,602
FERC FORM NO.2 (ED. 12-96)Page 520
Data Request for Statistics Report - 2005
Line No
GAS SERVICE REVENUES
13 THERMS OF GAS SOLD-TRANSPORTED
22 TOTAL THERMS OF GAS SOLD-TRANSPORTED
~....~~
B1BD.iIIEmDB ImIImIm IImEimI
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
OTHER OPERATING REVENUES
229 736,621
126,647 601
11,867,199
424 720
63,085,081
601 297
853 678
TOTAL GAS SERVICE REVENUES
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
199,433,556
122,980,835
13,533 925
465,790
79,961 354
169 024,680
AVERAGE NUMBER OF GAS CUSTOMERS PER MONTH
194,470,117
104 754 350
9,422 721
362 706
152 110
187 511
143,811
201 696,263
122 851 688
273 911
479,230
305,000
156 977 535
112,489,326
63,339,411
995,813
364 959
031 362
521 509
784 034
561 997
968,126
101,323,534
953,081
383,186
, 405 848
513,928
526,230
98,040,965
146,078
4,400,569
443,156
626 751
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
265 294 268,571 121 859 118,972
31,652 31,886 13,064 811
306 311 155 160
GAS Data,xls
Name of Respondent This R~rt Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
Avista Corp (2) 0 A Resubmission April 17, 2006 Dec. 31,2005
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,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 7,9, and 10 for Natural Gas com-
panies using accounts 404., 404., 404., 407., 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 puIchases. 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
$280 597 321 $251 031 104
Name of Respondent This R~ort Is:
(1) 129 An Original
Avista Corp (2)A Resubmission April 17, 2006 Dee, 31 2005
Date of Report
(Mo, Da, Yr)
State ofIdaho
Year of Report
STATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs inCUlTed 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, Jines
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
$194 621 447 $191 336 472 $85 975 874
FERC FORM NO.2 (REVISED 12-96)
$59,694 632
Page 115
Name of Respondent This Report Is:
(1)!29An Original
A vista Corporation (2)DA Resubmission
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
April 17 , 2006 Dec. 31,2005
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 Utilit Plant (Enter Total of lines 8 thru 12 )
Accum. Provo for De f., Amort., & De
Net Utilit Plant (Enter total of line 13 less 14)
DETAIL OF ACCUMULATED PROVISIONS FOR
16 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
(b)(c)
709,100,434
1,486,476
602,427,097
710,586,910 602,427,097
7,473,515
718 060,425
718,060,425
642 818
608,069,915
608 069 915
Name of Respondent This R~ort Is:(1) 129 An Original
Date of Report
State of Idaho
Year of Report
A vista Corporation (2) 0 A Resubmission April 17, 2006 Dec. 31,2005
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)
Gas Other (Specify)Other (Specify)Other (Specify)Common Line
No.
775,077
992,348 3
259,619 4
251 967
55,620
307 587
307,587
101,680,989
226 857
101 907 846
103 682,923
103 682,923
FERC FORM NO.2 (ED. 12-89)Page 201
Avista Corp.
State of Idaho
This report is:Date of Report Year Ending
( X) An Original (Mo , Yr)
) A Resubmission April 17, 2006 Dec. 31 2005
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
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 17, 2006 Dec. 31,2005
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 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 (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. 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.
Balance at End of Year Line
( )
No.
Retirements
FERC FORM NO.2 (ED. 12-96)Page 205
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 17 2006 Dec. 31 2005
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 Riahts-of-Wav
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 Regulatina 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
FERC FORM NO.2 (ED. 12-96)Page 206
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 17, 2006 Dec. 31 2005
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.
FERC FORM NO.2 (ED. 12-96)Page 207
State of Idaho
Name of Respondent This report is:Date of Report Year Ending
( X1 An Original (Mo, Da, Yr)
Avista Corp.1 A Resubmission April 17, 2006 Dec. 31, 2005
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
36B Compressor Station Equipment
369 MeasurinQ and ReQulatinQ Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land RiQhts 29,392
375 ,Structures and Improvements 121 113 135
376 Mains 103 756 444 358
377 Compressor Station Equipment
37B MeasurinQ and ReQulatinQ Equipment-General 084 273 33,435
379 MeasurinQ and ReQulatinQ Equipment-City Gate 702 645 918
380 Services 36,934 337 166,380
381 Meters 927 531 569 051
382 Meter Installations
383 House Regulators
384 House ReQulator Installations
385 Industrial MeasurinQ and ReQulatinQ Station Equipment 481 715 609
100 386 Other Property on Customers' Premises
101 386 Other Equipment
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)384,762 293,886
103 GENERAL PLANT
104 389 Land and Land Rights
105 390 Structures and Improvements
391 Office Furniture and Equipment
107 392 Transportation Equipment 573 887 153 037
108 393 Stores Equipment
109 394 Tools, Shop, and Garage Equipment 326 638 382
110 395 Laboratory Equipment 088
111 396 Power Operated Equipment 600 375 123 604
112 397 Communication Equipment 275,326 5,414
113 39B Miscellaneous Equipment
114 Subtotal (Enter Totals of lines 104 thru 113)835 314 328,437
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)835 314 328,437
117 TOTAL (Accounts 101 and 106)323,438 622 323
118 Gas Plant Purchased (See Instruction 8)
119 (Less) Gas Plant Sold (See Instruction B)
120 Experimental Gas Plant Unclassified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120 98,323,438 I 622 323
FERC FORM NO.2 (ED. 12-96)Page 208
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 17, 2006 Dec. 31 2005
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.
392
125 248
917 542 197
117 708
275 769 288
854 081 863
8,496,582
489 324
100
101
046 651 602 102
103
104
105
106
726,924 107
108
291 370,729 109
306 782 110
723,979 111
272 272,468 112
113
10,869 152 882 114
115
869 152 882 116
915 101 907 846 117
118
119
120
37,915 101 907 846 121
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
Name of RespDndent This RepDrt Is:Date Df Report Year of RepDrt
181 An Original (Mo , Yr)
Avista Corporation D A ResubmissiDn April 17 2005 Dec, 31 , 2005
GAS STORED (ACCOUNT 117., 117,, 117,, 117.4, 164,, 164., AND 164,
If durring the year adjustments were made tD the stored gas inventory State in a footnote the basis Df segregation Df invent Dry between
reported in columns (d), (f), (g), and (h) (such as to correct cumulative current and noncurrent protions, AlsD state in a footnote the
inaccuracies of gas measurements), expiain in a footnote the reason for method used tD report storage (I e, fixed asset method Dr
the adjustments, the Dth and dollar amount of adjustment, and account inventory method),
charged or credited.
2 RepDrt 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 NDncurrent (Account Current LNG LNG
Line DescriptiDn 117,117,(AccDunt 117,117.4)(Account 164,(AccDunt 164,(Account 164,TDtal
ND,(ej (b)(ei (d)(e)(f)
(g)
(hJ (i)
Balance at BeQinninQ Df Year 259 790 100 307 890
Gas Delivered to StDrage 551 112 370 627.482
Gas Withdrawn from StDraQe 490,023 490 023
Other Debits and Credits (249 (249
Balance at End of Year 320 879 124 221 445 100
Dth 542 270 303 583 573
AmDunt Per Dekatherm $6,1240 $30076 $5,9035
State basis Df segregation of inventory between current and noncurrent portions:
Current portion is gas expected tD be sold within a 24 month period, All other gas is considered non-current.
State Df Idaho
FERC FORM NO.2 (ED. 12-96)Page 220
Name of Respondent This R~ort Is:(1) ~ An Original
Date of Report
(Mo, Oa, Yr)
State of Idaho
Year of Report
Avista Corporation (2) D A Resubmission Apri117 2006 Dec. 31 , 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
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 Mcf.
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
010
73,305,901
11,432 755
738,656
28,580
58,784 350
58,784 350
14 (485) Intracom an Transfers
15 (487 Forfeited Discounts
16 (488 Misc. Service Revenues
17 (489) Rev. from Trans. of Gas of Others
18 (490 Sales of Prod. Ext. from Nat. Gas
19 (491) Rev. from Nat. Gas Proc. b Others20 492 Incidental Gasoline and Oil Sales21 493 Rent from Gas Pro ert22 (494) Interdepartmental Rents23 495) Other Gas Revenues24 TOTAL Other Operatin Revenues25 TOTAL Gas a eratin Revenues
26 (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. ani32 Interde artmental Sales
33 TOTAL Same as Line 10, Columns (b and
254
925,944
348
902 934
304 020
237 218
975 874
910,282
59,694 632
150 723
975,874
118,168
11,432 755
010
738 656
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This ~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of Idaho
Year of Report
Avista Corporation (2)A Resubmission April 17 2006 Dec. 31 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 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 for
Previous Year
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Previous Year No.
39,602
69,470,664 2
14,484 563
83,955 227
074
102 794
102 794
679
65,681
809
809
NOTES
(1) Includes $2,423 177 un billed revenues.
(2) Includes 801,571 therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of Idaho
Name of Respondent This R~ort Is:(I) lli.I An Original
Date of Report
(Mo, Da. Yr)
Year of Report
A vista Corp.(2)A ResubmisslOn April 17.2006 December3!,2005
GAS OPERATION AND MAINTENANCE EXPENSES
Line Amount
No, (a)
1. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natural Gas Production
B 1. Natural Gas Production and Gatherinl!
Operation
750 Operation Supervision and Enl!ineerinl!
751 Production Maps and Records
752 Gas Wells Expenses10 753 Field Lines ExpensesII 754 Field Compressor Station Expenses12 755 Field Comoressor Station Fuel and Power
' '
13 756 Field Measurinl! and Rel!lllatinl! Station Expenses14 757 Purification Expenses15 758 Gas Well Rovalties16 759 Other Expenses17 760 Rents18 TOTAL Operation (Enter Total of lines 7 thru 17)
19 Maintenance20 761 Maintenance Supervision and En,gineerin,g21 762 Maintenance of Structures and Improvements22 763 Maintenance of Producinl! Gas Wells23 764 Maintenance of Field Lines24 765 Maintenance of Field Comoressor Station EQuipment25 766 Maintenance of Field Meas. and ReI!. Sta. EQuipment26 767 Maintenance of Purification EQuipment27 768 Maintenance of Drillinl! and Cleaninl! EQuipment28 769 Maintenance of Other EQuipment29 TOTAL Maintenance (Enter Total of lines 20 thru 28)30 TOTAL Natural Gas Production and Gatherinl! (Total of lines 18 and 29)31 B2. Products Extraction
32 Operation33 770 Operation Supervision and Enl!ineerinl!34 771 Operation Labor35 772 Gas Shrinka,ge36 773 Fuel37 774 Power38 775 Materials39 776 Operation Supplies and,Expenses40 777 Gas Processed by Others41 778 Rovalties on Products Extracted42 779 Marketinl! Expenses43 780 Products Purchased for Resale44 781 Variation in Products Inventorv45 (Less) 782 Extracted Products Used bv the Utility-Credit46 783 Rents47 TOTAL Operation (Enter Total of Lines 33 thru 46)
If the amount for previous vear is not derived from previouslv reported fi!!UTes, explain in footnotes.Amount for Amount forCurrent Year Previous Year
,; :.,"."": ';,;,;;'; ,
, c
; ', "",;,;""; ,, "
FERC FORM NO.2 (ED 12-88)Page 320
State of Idaho
Name of Respondent TIlls R
lIDort Is:
Date of Report Year of Report(I) X An Original (Mo, Da, Yr)
Avista Corp,(2)A ResubmisslOn April 17, 2006 December 31. 2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(b)(e)
B2, Products Extraction (Continued)
Maintenance
784 Maintenance Supervision and Engineering
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and RefIlling Equipment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storage EQuipment
789 Maintenance of Compressor EQuipment
790 Maintenance of Gas Measuring and Reg. Eauipment
791 Maintenance of Other Eauipment
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 Delav 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
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 Citv Gate Purchases 71,116.666 41.178.093
804.1 Liquefied Natural Gas Purchases
805 Other Gas Purchases 175.575
(Less) 805.1 Purchased Gas Cost Adiusttnents (3,821,083)
TOTAL Purchased Gas (Enter Total of lines 67 to 76)67,471,158 178 093
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 76.372
807.5 Other Purchased Gas Expenses
--
TOTAL Purchased Gas Expenses (Enter Total of lines 80 Ihru 84)
808.1 Gas Withdrawn from Storage-Debit 972,390 76.372
(Less) 808.2 Gas Delivered to Storage-Credit 393,269)
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 Utilitv Operations-Credit (Total of lines 91 thru 93)
813 OtherGasSupplvExpenses 328,853 924
TOTAL Other Gas Supply Exp (Total of lines 77.78.85.86 thru 89,94.95)379.132 41.349,389
TOTAL Production Expenses (Enter Total of lines 3,30,58.65. and 96)64.379.132 41.349.389
FERC FORM NO.2 (ED 12-88)Page 321
State of Idaho
Name of Respondent This R~ort Is:Date of Report Year of Report(I) X An Original (Mo, Da, Yr)
A vista Corp,(2)A Resubmission April!7,2006 December 31. 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)(b)(e)
2, NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A, Underground Stora1Ze Expenses
100 Operation
" ,
101 814 Operation Supervision and Engineering 11.985 286
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 Measurinl.! and Rel!Ulatinl.! Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses 73.279 90.625
112 825 Storal.!e Well Royalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 101 thru 113)85.265 911
115 Maintenance
116 830 Maintenance Supervision and Enl.!ineerinl.!
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 Measuring and Reguiatin1Z Station EQuipment
122 836 Maintenance of Purification EQuipment
123 837 Maintenance of Other EQuipment 656 46,494
124 TOTAL Maintenance (Enter Total of lines 116 thru 123)656 46,494
.125 TOTAL Underground Stora1Ze Expenses (Total of lines 114 and 124)166 921 141,405
126 B. Other Stora1Ze Expenses
i(':""127 Operation
128 840 Operation Supervision and En1Zineerinl.!
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 Engineering
137 843.2 Maintenance of Structures and hnPTOvements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification IOauipment
140 843,5 Maintenance of Liquefaction EQuipment
141 843.6 Maintenance of Vaporizing E~uipment
142 843,7 Maintenance of Compressor 'Oauipment
143 843.8 Maintenance of Measurin1Z and Re1Zulatin1Z EQuipment
144 843,9 Maintenance of Other EQuipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Stora1Ze 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
ooort Is:
Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 December 31, 2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)Ib)Ie)
147 C. Liouefied Natural Gas Terminaline: and Processing Expenses
148 Operation
149 844.1 Operation Supervision and Enl!;ineering
150 844,2 LNG Processine: Terminal Labor and Expenses
151 844,3 Liquefaction Processini1: 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 Svstem Expenses
156 844,8 System Control and Load Dispaiching
157 845.1 Fuel
158 845,2 Power
159 845.3 Rents
160 845.4 DemuITae:e Chare:es
161 (Less) 845.5 Wharfage Receipts-Credit
162 845.6 Processine: Liouefied or Vaporized Gas bv 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 Processine: 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 Terminaline: and Processing Exp (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125, 146, and 176)~21 141,405
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 bv 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 Idaho
Name of Respondent This R
iRlort Is:
Date of Report Year of Report
(I) X An Original (Mo, Dao Yr)
Avista Corp.(2)A ResubIIl1ssion April 17,2006 December 31, 2005
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 Engineering
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Eauipment
197 865 Maintenance of Measuring and Reg. Station Eauipment
198 866 Maintenance of Communication EQuipment
199 867 Maintenance of Other Eauipment
200 TOTAL Maintenance (Enter Total of lines 193 thru 199)
201 TOTAL Transmission Expenses (Enter Total of lines 191 and 200)
202 4. DISTRlBUTION EXPENSES
'; ,;'
203 Operation
204 870 Operation Supervision and Engineering 121,297 154,937
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 606,551 671,483
209 875 Measurin~ and ReJ.!Ulati.n~ Station Expenses-General 922 17,317
210 876 Measuring and Re2Ulating Station Expenses-Industrial (16)973
211 877 Measurin~ and ReJ.!Ulatin~ Station Expenses-Citv Gate Check Station 57,942 45,249
212 878 Meter and House ReJ.!Ulator Expenses 153,940 287,903
213 879 Customer Installations Expenses 399 925 315,521
214 880 Other Expenses 462,908 351,019
215 881 Rents 977 844
216 TOTAL Operation (Enter Total of lines 204 thru 215)843,445 846,246
217 Maintenance
;"
218 885 Maintenance Supervision and En~ineerin~14,424
219 886 Maintenance of Structures and Improvements
220 887 Maintenance of Mains 341 354 246,437
221 888 Maintenance of Compressor Station uipment
222 889 Maintenance of Meas. and Reg. Sta.quip.General 73,253 61,026
223 890 Maintenance of Meas. and Re~, Sta.auip.Industrial 60,139 49,373
224 891 Maintenance of Meas. and Re~. Sta,quip.City Gate Check Station 270 767
225 892 Maintenance of Services 200,289 57,220
226 893 Maintenance of Meters and House ReJ.!Ulators 144 604 171,210
227 894 Maintenance of Other EQuipment 064
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)848,396 598,033
229 TOTAL Distribution Expenses (Enter Total of lines 2 I 6 and 228)691,841 2,444 279
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 131,713 17,104
233 902 Meter Reading Expenses 412,132 491,325
234 903 Customer Records and Collection Expenses 175,169 354 541
235 904 Uncollectible Accounts 285,570 337,660
236 905 Miscellaneous Customer Accounts Expenses 101 284 108,298
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)105 868 308 928
FERC FORM NO.2 (ED 12-88)Page 324
State of Idaho
Name of Respondent This R
lRlort Is:
Date of Report Year of Report(I) X An Original (Mo, Da, Yr)
Avista Corp.(2)A ResubInlssion April 17,2006 December 31, 2005
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous vear is not derived from previouslv reported furores, explain in footnotes,
Amount for Amount for
Line Amount Current Year Previous Year
No.fa)(b)(e)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
.""
239 Operation
:': "::,:,
240 907 Supervision
241 908 Customer Assistance Expenses 514,672 514.541
242 909 Infonnational and Ins!n/ctional Expenses 726 38,139
243 910 Miscellaneous Customer Service and Infonnational Expenses 20,889 17.903
244 TOTAL Customer Service and Infonnation Expenses (Lines 240 thru 243)539,287 570,583
245 7. SALES EXPENSES
" ,:" ,,:::, ,':'
246 Operation
247 911 Supervision
248 912 Demonstrating and Selling Expenses 115,355 229,423
249 913 Advertisinl! Expenses 26,678 388
250 916 Miscellaneous Sales Expenses 105
251 TOTAL Sales Expenses (Enter Total oflines 247 thru 250)
...
262'916
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 647,795 263,147
255 921 Office Supplies and Expenses 336 377 473,022
256 (Less) (922) Administrative Expenses Transferred-Cr.(2,709)(1,750)
257 923 Outside Services Employed 813,038 665,630
258 924 Property Insurance 542 62,492
259 925 Injuries and Damal!es 238,488 295,168
260 926 Employee Pensions and Benefits 697 141,458
261 927 Franchise Reauirements
262 928 Rel!lliartorv Commission Expenses 226 191 303,596
263 (Less) (929) Duplicate Charges-Cr.
264 930.1 General Advertisinl! Expenses 121)
265 930,2 Miscellaneous General Expenses 278,108 281,788
266 931 Rents 217,170 368 226
267 TOTAL Operation (Enter Total of lines 254 thru 266)878.576 852,777
268 Maintenance
269 935 Maintenance of General Plant 390,311 291,628
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)268,886 144,405
271 TOTAL Gas 0, and M. Exp,(Lines 97.177.201,229.237.244,25 I ,and 270)293.968 51,221,905
NUMBER OF GAS DEPARTMENT EMPLOYEES
I, The data on number of employees should be reported construction employees in a foonote,
for the payroll period emting 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
ber3!.may be detennined 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
emplovees on line 3. and show the number of such special functions.
Payroll Period Ended (Date)December 31 2005
Total Re!!1llar Full-Time Emplovees 481
Total Part-Time and Temporary Employees allocation of General Employees
Total Emplovees 481
FERC FORM NO.2 (ED 12-88)Page 325
State of Idaho
Name of Respondent This fg)ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17 2006 Dec. 31, 2005
TRANSMISSION MAINS
Show particulars Called for Concernine: 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)(c)(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
Avista Corp.
ine
No.
Kind of Material
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS
FERC FORM NO.
This Re~rt Is:(1) ~ An Original
(2) D A Resubmisslon
DISTRIBUTION MAINS
Date of Report
(Mo, , Yr)
Apri/17 2006
Diameter of
Pipe, Inches
(b)
Less than 2"
to4"
4" to
8" to 12"
Over 12"
Show Particulars Called for Concerninq Distribution MainsTotal Length in I Taken up
Use Beginning of Laid During Abandoned DurinYear, Feet Year, Feet Year, Feet
(c) (d) (e)
631 520 120
601 920
332 640
280
Less than 2"
2" to
4" to 8"
8" to 12"
Over 12"
007 520
1 ,098,240
253,440
930,560
Page 514-
327 360
68,640
26,400
443,520
State of Idaho
Year of Report
Dec. 31,2005
Total Length
in Use End
of Year, Feet
(f)
652 640
601 920
332 640
280
334 880
166 880
279 840
374 080
State of Idaho
Name of Respondent This Report Is:Date of Report Year of Report
(1) (8J An Original (Mo, Da, Yr)
Avista Corp.(2) 0 A Resubmission Apri117 2006 Dec. 31 2005
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 l' or Less 115 16,136 Not
Steel Wrapped 1" thru 2"Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic l' or Less 46,310 802 49,112
Plastic 1" thru 2"160 167
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
TOTALS 621 831 65,452
FERC FORM NO.Page 514-
State of Idaho
Name of Respondent This R
lKlort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, fr)
Avista Corp.(2)A Resubmission April 17, 2006 Dec. 31,2005
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)
(g)
(h)
Detailed information not available.
TOTAL 262 552 814
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 Resubmission April 17, 2006 Dec. 31 , 2005
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 totalsales 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,, 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)271,069Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305
Gas of Others Received for Distribution (Account 489.301 964 091Gas of Others Received for Contract StoraQe (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 by Others (Account 858)332
Other Gas Withdrawn from Storage (Explain)
Gas Received from Shippers as compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (Specifv):
Total Receipts (Total lines 3 thru 14.13,235,160
GA~ DELIvERED
Gas Sales (Accounts 480 - 484)947,066Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489,305
Deliveries of Gas Distributed for Others (Account 489.301 964 091Deliveries of Contract Storace Gas (Account 489.4)307
Exchange Gas Delivered to Others (Account 806)328
Gas Delivered as ImbalanQes (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 1,448,456
Total Deliveries (Total lines 17 thru 27.13,359,613GAS uNAL;L;UUNTED FOR
Production System Losses
Gathering System Losses
Transmission Svstem Losses
Distribution System Losses (124 453Storage System Losses
Other Losses (Specifv)
Total Unaccounted For (Total lines 30 thru 35)(124,453
Total Deliveries & Unaccounted For (Total lines 28 thru 36)235,160
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) lliI An Original
Date of Report
(Mo, Va, Yr)
State of Ore on
Year of Report
Avista Corp (2)0 A Resubmission April 17, 2006 December 31,2005
ST ATEMENT 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 (1,k,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 co1unms (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-
parnes using accounts 404,, 404., 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 thru 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 reverroes or costs to which the con-
tingency relates and the tax effects together with an exp1a-
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
CuITent 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
Note: (1) Infonnation other than operating revenue not available by state.
FERC FORM NO.2 (REVISED 12-96)Page 114
$212,417 865 $87,412 761
Name of Respondent This R;E,ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of Ore on
Year of Report
Avista Corp (2)D A Resubmission April 17 2006 December31 2005
ST ATEMENT OF INCOME FOR THE YEAR
resulting from settlement of any rate proceeding affecting
revenues received or costs incUlIed 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 colunms 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 UTILITYCurrent Year Previous Year
GAS UTILITYCurrent Year Previous Year
OTHER UTILITY
Current Year Previous Year Line
No,
$132 856,140 $87,412 761
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 Resubmisslon April 17 2006 Dec. 31,2005
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 years 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
628
290
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
918
FERC FORM NO.2 (ED. 12-96)Page 204
State of Ore on
Name of Respondent This report is:
( Xl An Original
Year EndingDate of Report
(Mo, Da, Yr)
Avista Corp.J A Resubmission Dec. 31 2005April 17,2006
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 this
avoid serious omissions of respondent's reported amount for account and if substantial in amount submit a suplementary
plant actually in service at end of year. statement showing subaccount classification of such plant
6. Show in column (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. 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 Balance at End of Year
628
290
918
FERC FORM NO.2 (ED. 12-96)Page 205
Line
No.
a e 0 reQon
Name of Respondent This report is:Date of Report Year Ending
( XJ An Original (Mo, Da, Yr)
Avista Corp.J A Resubmission April 17 2006 Dec. 31 2005
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)918
TOTAL Production Plant (Enter Total of lines 37 and 38)918
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
St t f 0
FERC FORM NO.2 (ED. 12-96)Page 206
tate 0 reQon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17, 2006 Dec. 31 , 2005
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.
918
918
. 55
f 0
FERC FORM NO.2 (ED. 12-96)Page 207
State 0 Oregon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.J A Resubmission April 17,2006 Dec. 31,2005
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 23,532
375 Structures and Improvements 178 090
376 Mains 873 643 206,465
377 Compressor Station Equipment
378 Measuring and Regulating EQuipment-General 977 282 528
379 Measuring and Regulating EQuipment-City Gate 583,909 007
380 Services 961 718 662 682
381 Meters 996 034 367 168
382 Meter Installations
383 House Regulators
384 House Regulator Installations
385 Industrial Measuring and Regulating Station EQuipment 753,122 286
100 386 Other Property on Customers' Premises
101 387 Other EQuipment 539
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)147 347 869 254 136
103 GENERAL PLANT
104 389 Land and Land Rights 953
105 390 Structures and Improvements 382 346 31 , 146
106 391 Office Furniture and Equipment 685
107 392 Transportation Equipment 146,641
108 393 Stores Equipment 148
109 394 Tools, Shop, and Garage Equipment 659 371 870
110 395 Laboratory Equipment 289 358 917
111 396 Power Operated EQuipment 315
112 397 Communication EQuipment 116 215 206
113 398 Miscellaneous Equipment
114 Subtotal (Enter Totals of lines 104 thru 113)673 032 134 139
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)673 032 134 139
117 TOTAL (Accounts 101 and 106)150,825,972 10,388,275
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 120 150 825 972 I 388,275
FERC FORM NO.2 (ED. 12-96)Page 208
tate 0 reqon
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17, 2006 Dec. 31 , 2005
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)
(q)
No.
23,532
178 090
143 981 965
092 993 902
(8,092)579 824
018 762 605 638
507 748 855,454
758,408
100
539 101
624 653 155 977 352 102
103
253,732 261 685 104
365 334 778 826 105
685 106
382 158 023 107
975 173 108
067 624 741 798 109
115 343 390 110
315 111
920 696 140 197 112
113
647 705 883 4,484 407 114
115
647 705 883 4,484,407 116
186 822 705 883 160 733 308 117
118
119
120
186 822 705 883 160,733 308 121
f 0
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
!3J An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April!7 2005 Dec, 31 , 2005
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 cred~ed,
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 117.117.4)(Account 164,(Account 164,(Account 164,Total
No.(a)(b)(c)(d)(e)
(q)
(h)Ii)
Balance at Beainnina of Year 322 821 204 357 527 178
Gas Delivered to Storaqe 576 641 341 357 917 998
Gas Withdrawn from Storaae 322,909 322 909
Other Debits and Credits
Baiance at End of Year 576,553 545 714 122,267
Dth 565 172 400 267 965
Amount Per Dekatherm $6.0331 $3,1654 $4,1881
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 Oregon
FERC FORM NO.2 (ED. 12-96)Page 220
Name of Respondent This ~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of Oreoon
Year of Report
Avista Corporation (2) D A Resubmission April 17 2006 Dec. 31 2005
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 tote 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 or decreases from previous year (col-
added for billing purposes, one customer should be countE umns (c), (e) and (g), are not derived from previously
Line
No.
Title of Account
OPERATING REVENUES
Amount for
Amount for Year Previous Year
(a)
GAS SERVICE REVENUES
480) Residential Sales
481) Commercial and Industrial Sales
Small (or Comm.) (See Instr. 6)
Laroe (or Ind.) (See Instr. 6)
482) Other Sales to Public Authorities
484) Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
(483) Sales for Resale10 TOTAL Nat. Gas Service Revenues11 Revenues from Manufactured Gas12 TOTAL Gas Service Revenues
,;;
U I Ht:H '-', '-, ""' . INlj
14 (485) Intracompany 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. by Others
20 (492) Incidental Gasoline and Oil Sales21 493 Rent from Gas Property22 494 Interdepartmental Rents
23 (495fOther 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))
63,497 866
""'"" """"
206,457
"",,' "", "",:;,'" '
28,000 286
551 142
83,757 885
245,803
720,663
19,206
105,483 538 (1)
23,506,946
128,990,484 83,757 885
128 990,484 757 885
362
053,653 (1)
104 716
574 389
060
709 580
865,656 I
132 856 140
15,060
(39,289
654 876
87,412 761
132 856 140
743,669
720,663
23,506 946
206
128 990,484
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This ~ort Is:(1) ~ An Original
Date of Report
(Mo, Da, Yr)
State of Ore on
Year of Report
Avista Corporation (2)A Resubmission April 17 2006 Dec. 31 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 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
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
Previous Year No.
30,278,920
768 812
712 10,480
87,447
87,447
996
247 139 (2
29,762 863
118 010,002
177 703
177 703
90,249
256
NOTES
(1) Includes $1 905 912 unbilled revenues,
(2) Includes (167 965) therms relating to unbilled revenues,
FERC FORM NO.2 (ED. 12-86)Page 301
Stale of Oregon
Name of Respondent This R
IRJOTt Is:
Date of RepOTt Year of Report
(I) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubnussion April!7,2006 December 31. 2005
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous vear is not derived from previouslv reported figures, explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No,(a)(b)
1. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natura! Gas Production
BI. Natura! Gas Production and Gathering
Operation
750 Operation Supervision and Engineering
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 Regulating Station Expenses
757 Purification Expenses
758 Gas Well Rovalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
' ," "
761 Maintenance Supervision and Engineering
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 Reg, Sta, EQuipment
767 Maintenance of Purification EQuipment
768 Maintenance of Drilling and Cleaning EQuipment
769 Maintenance of Other EQuipment
--
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natura! Gas Production and Gathering (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 bv Others
778 Royalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventorv
(Less) 782 Extracted Products Used bv the Utilitv-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~ort Is:(I) lliJ An Original
Date of Report
(Mo, Da, Yr)
Year of Report
Avista Corp.(2)D A Resubmission April 17 2006 December 31,2005
GAS OPERATION AND MAINTENANCE EXPENSES
Line
No.
Amount
(a)
B2. Products Extraction (Continued)
48 Maintenance
49 784 Maintenance Supervision and Engineering
50 785 Maintenance of Structures and Improvements
51 786 Maintenance of Extraction and Refining Eauioment
52 787 Maintenance of Pine Lines
53 788 Maintenance of Extracted Products Storae:e Eauinment
54 789 Maintenance of Compressor Eauioment
55 790 Maintenance of Gas Measurinl!: and ReI!:. EQuioment
56 791 Maintenance of Other Eauioment
57 TOTAL Maintenance (Enter Total of lines 49 thru 56)
58 TOTAL Products Extraction (Enter Total of lines 47 and 57)59 C. Exoloration and Develooment
60 Operation
61 795 Delay Rentals
62 796 Nonoroductive Well Drilline:
63 797 Abandoned Leases
64 798 Other Exploration
65 TOTAL Exoloration and Develonment (Enter Total of lines 61 thru 64)
D. Other Gas Supolv Expenses
Amount for Amount forCurrent Year Previous Year(b) (c)
, ," '' ": "" :,,::", ,, ': """" "' ':.'
66 Operation
67 800 Natural Gas Well Head Purchases
68 800,1 Natural Gas Well Head Purchases, Intracompanv Transfers
69 801 Natural Gas Field Line Purchases
70 802 Natural Gas Gasoline Plant Outlet Pmchases
71 803 Natural Gas Transmission Line Purchases
72 804 Natural Gas City Gate Purchases
73 804.1 LiQuefied Natural Gas Purchases
74 805 Other Gas Purchases
75 (Less) 805,1 Purchased Gas Cost Adjustments
77 TOTAL Purchased Gas (Enter Total of lines 67 to 76)
78 806 Exchane:e Gas
79 Purchased Gas Exoenses
80 807.1 Well Expenses-Purchased Gas
81 807,2 Operation of Purchased Gas Measuring Stations
82 807.3 Maintenance of Purchased Gas Measurinl!: Stations
83 807.4 Purchased Gas Calculations Exoenses
84 807.5 Other Purchased Gas Expenses
85 TOTAL Purchased Gas Expenses (Enter Total of lines 80 thm 84)
86 808.1 Gas Withdrawn from Storae:e-Debit
87 (Less) 808,2 Gas Delivered to Storage-Credit
88 809,1 Withdrawals of LiQuefied Natural Gas for Processing--Debit
89 (Less) 809.2 Deliveries of Natural Gas for Processine:-Credit
90 Gas Used in Utilitv Operations-Credit
91 810 Gas Used for Compressor Station Fuel-Credit
92 811 Gas Used for Products Extraction-Credit
93 812 Gas used for Other Utilitv Operations-Credit
94 TOTAL Gas Used in Utility Operations-Credit (Total oflines 91 thru 93)
95 813 OtherGasSuoolvExoenses
96 TOTAL Other Gas Supolv Exp (rotal of lines 77,78,86 thru 89,95)
97 TOTAL Production Exoenses (Enter Total of lines 3.30,58,65, and 96)
98,970,263 59,463,988
498.520
(709,947)
062.980)
55,401.008 I98,758,836
88.839
88,839
(576,553)
397,416
98,579,700
98,579.700
110,063
55,599,910
55,599,910
FERC FORM NO.2 (ED 12-88)Page 321
State of Oregon
Name of Respondent This R
lRjort Is:
Date of Report Year of Report(I) X An Original (Mo. DI1, Yr)
A vista Corp.(2)A Resubmission April 17.2006 December 31. 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amo~"m
Line Amount Current Year Previous Year
No.(a)(b) (e)
2, NATURAL GAS STORAGE, TERMINALING AND
:'"
PROCESSING EXPENSES
;;,, "
A, Under~ound Storage Expenses
" "' "
100 Operation
, ,
101 814 ODeration 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 Measuring and Regulating Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses
112 825 Storage Well Royalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 10 I thru 113)
liS Maintenance
116 830 Maintenance Supervision and Engineering
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 Measuring and Regulating 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 Storage Expenses (Total of lines 114 and 124)
126 B. Other Storage Expenses
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 thru 133)
135 Maintenance
136 843.1 Maintenance Supervision and Engineering
137 843.2 Maintenance of Structures and hnPTOvements
138 843,3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification IJquipment
140 843.5 Maintenance of Liquefaction EQuipment
141 843,6 Maintenance of Vaporizing E(Juipment
142 843.7 Maintenance of Compressor :;quipment
143 843,8 Maintenance of Measuring and Regulating EQuipment
144 843.9 Maintenance of Other EQuipment
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~ort Is:
(1) t!J An Original
Date of Report
(Mo, Da, Yr)
Year of Report
AvistaCorp,(2)D A Resubmission April17,2006 December 31 2005
GAS OPERA nON AND MAINTENANCE EXPENSESLine Amount
No, (a)147 C. LiQuefied Natural Gas Terminating and Processing Exoenses
148 I Oueration
149 844.1 Ooeration Sunervision and Engineering
150 844.2 LNG Processing Tenninal Labor and Exoenses
151 844.3 LiQuefaction Processing Labor and Exoenses
152 844.4 Liouefaction Transoortation Labor and Expenses
153 844,5 Measuring and Regulating Labor and Expenses
154 844,6 Comoressor Station Labor and Exoenses
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 Demurrage Charges
161 (Less) 845.5 Wharfage Receipts-Credit
162 845,6 Processing LiQuefied or Vaoorized Gas bv Others
163 846.1 Gas Losses
164 846.2 Other Exoenses165 TOTALOoeration (Enter Total oflines 149thru 164)
166 Maintenance
167 847.1 Maintenance Suoervision and Engineering
168 847,2 Maintenance of Structures and Imorovements
169 847.3 Maintenance of LNG Processing Terminal Equioment
170 847.4 Maintenance of LNG Transportation Eouioment
171 847.5 Maintenance of Measuring and Regulating Eouioment
172 847,6 Miantenance of Comoressor Station Eouipment
173 847,7 Maintenance of Communication Eouioment
174 847.8 Maintenance of Other Eouipment
175 TOTAL Maintenance (Enter Total oflines 167 thru 174)
176 TOTAL LiQuefied Nat Gas Terminating and Processing Exo (Lines 165 & 175)
177 TOTAL Natural Gas storage (Enter Total of lines 125. 146, and 176)178 3. TRANSMISSION EXPENSES
179 Ooeration
180 850 Operation Supervision and Engineering
181 851 Svstem Control and Load Dispatching
182 852 Communication Svstem Exoenses
183 853 Comoressor Station Labor and Expenses
184 854 Gas for Comoressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Exnenses
187 857 Measuring and Regulating Station Exoenses
188 858 Transmission and Compression of Gas bv Others
189 859 OtherExoenses
190 860 Rents
191 TOTAL Oneration (Enter Total oflines 180 thru 190)
Amount for Amount forCurrent Year Previous Year
....(C)
"""""
i;"
FERC FORM NO.2 (ED 12-88)Page 323
State of Oregon
Name of Respondent This R~On Is;Dale of Repon Year of Repon(I) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17.2006 December 31 2005
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 Engineering
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Eouipment
197 865 Maintenance of Measuring and Reg. Station Eauipment
198 866 Maintenance of Communication Equipment
199 867 Maintenance of Other Eauipment
--
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 327,856 307,024
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 880,732 807,426
209 875 Measurinl! and Rel!Ulatinl! Station Expenses-General 308 589
210 876 Measuring and Rel!Ulating Station Expenses-Industrial 570
211 877 Measurinl! and Rel!Ulatinl! Station Expenses-City Gate Check Station 453 986)
212 878 Meter and House Rel!Ulator Expenses 379 517 473,370
213 879 Customer Installations Expenses 618,026 994 232
214 880 Other Expenses 605 119 406 986
215 881 Rents 327 13,432
216 TOTAL Operation (Enter Total of lines 204 thnt 215)909,909 017,073
217 Maintenance
218 885 Maintenance Supervision and Enl!ineerinl!154,960 106,058
219 886 Maintenance of Structures and Improvements
220 887 Maintenance of Mains 852.708 160,270
221 888 Maintenance of Compressor Station Eauipment
222 889 Maintenance of Meas, and Reg, Sta. I~uip,General 123,234 155.135
223 890 Maintenance of Meas, and ReI!, Sta, I,(mip.Industrial 544 500
224 891 Maintenance of Meas. and Reg, Sta. I~uip.Citv Gate Check Station 651 857
225 892 Maintenance of Services 228,760 198,113
226 893 Maintenance of Meters and Hause Rel!Ulators 342.233 191.655
227 894 Maintenance of Other Eauipment 48,685 65,339
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)785,776 918,927
229 TOTAL Distribution Expenses (Enter Total oflines 216 and 228)695 685
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 23,798
233 902 Meter Reading Expenses 251 939 491 161
234 903 Customer Records and Collection Expenses 777,724 816.144
235 904 Uncollectible Accounts 415,884 320,880
236 905 Miscellaneous Customer Accounts Expenses 148 363 360
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thnt 236)783,484 718 343
FERC FORM NO.2 (ED 12-88) .Page 324
State of Oregon
Name of Respondent This R
iEjort Is:
Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 December 31, 2005
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnotes,
Line Amount Current Year Previous Year
No,(a)(b) (e)
238 6, CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision
241 908 Customer Assistance Expenses 640,319 691 389
242 909 Informational and Instructional Expenses 940 49,003
243 910 Miscellaneous Customer Service and Informational Expenses /34
244 TOTAL Customer Service and Information Expenses (Lines 240 thru 243)642 394 740,392
245 7. SALES EXPENSES
246 Operation
247 911 Supervision
248 912 Demonstrating and Selling Expenses 202,529 100,071
249 913 Advertising Expenses 50,049 657
250 916 Miscellaneous Sales Expenses 503
251 TOTAL Sales Expenses (Enter Total of lines 247 thru 250)252,578 110,231
252 8, ADMINISTRATIVE AND GENERAL EXPENSES
: ':;""
253 Operation
254 920 Administrative and General Salaries 369,620 803,385
255 921 Office Supplies and Expenses 579,317 71,726
256 (Less) (922) Administrative Expenses Transferred-Cr.
257 923 Outside Services Employed 087 049 944 572
258 924 Property Insurance 66,249 80,064
259 925 Injuries and Damages 469,485 46\ ,626
260 926 Emplovee Pensions and Benefits 388 185,749
261 927 Franchise Requirements
262 928 Regulartorv Commission Expenses 448 222 330,022
263 (Less) (929) Duplicate Charges-Cr.
264 930.1 General Advertising Expenses (3,046)
265 930.2 Miscellaneous General Expenses 348,045 317 568
266 931 Rents 307,951 498,988
267 TOTAL Operation (Enter Total of lines 254 thru 266)734 279 339,700
268 Maintenance
269 935 Maintenance of General Plant 544.176 201,222
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)278,454 540 922
271 TOTAL Gas 0, and M, Exp (Lines 97 177 201 229,237 244 25 I ,and 270)113,232,294 69,645,798
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
ber3/.may be determined by estImate, on the basis of employee
2, If the respondent s payrl?lI 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, 2005
Total Regular Full-Time Emplovees 1331 129
Total Part-Time and Temporary Employees allocation of General Employees 211
Total Emplovees 1541 152
FERC FORM NO.2 (ED 12-88)Page 325
tate 0 egon
Name of Respondent This ~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, fr)
Avista Corp.(2)A Resubmission Aprill?,2oo6 Dec. 31, 2005
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)(f)
Steel Coated Over 4" through 10"332,640 332 640
Steel Coated 4" or Less 15,840 5280 21,120
TOTALS 348,480 280 353,760
fOr
* Show separately and IdentIfy lines held under a tItle other than full ownership.
FERC FORM NO.2 (ED 12-87)Page 514
Plastic
Plastic
10 Plastic
11 Plastic
12 Plastic
19 Change in footage rejects additions net of retirements.
Name of Respondent
Avista Corp.
.....
ine Kind of Material
No.
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
TOTALS
FERC FORM NO.
Show Particulars Called for Concerning Distribution Mains
Total Length in I. Taken up or
Use Beginning of Laid During Abandoned DurinYear, Feet Year, Feet Year, Feet(c) (d) (e)
719,200 21 120
828,960
427 680
15,840
Diameter of
Pipe, Inches
(b)
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
This Report Is:(1) (gJ An Original
(2) D A Resubmission
DISTRIBUTION MAINS
651 680
755,040
58,080
9,456,480
Page 514-
Date of Report
(Mo, Da, Yr)
April 17 2006
280
10,560
316,800
120
280
374 880 280
State of Oregon
Year of Report
Dec. 31, 2005
Total Length
in Use End
of Year, Feet
(f)
740,320
823,680
438,240
15,840
968,480
776,160
63,360
826,080
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 17 2006 Dec. 31 , 2005
SERVICE PIPES GAS
Show the particulars called for concerning the line service pice in possession of the respondent at the close of the y
Number at Number Number 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)(b)(c)(d)(e)(f)
(g)
Steel Wrapped 1 ! or Less 32,123 114 32,009 Not
Steel Wrapped 1" thru 2"473 165 638 Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic l' or Less 937 932 67,869
Plastic 1" thru 2"820 818Plastic2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
Number added is net of retire,ents
TOTALS 99,452 099 116 102,435
State of Oregon
FERC FORM NO.Page 514-
tate 0 regon
Name of Respondent This R
rKiort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17, 2006 Dec. 31,2005
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)(f)
(g)
(h)
Detailed information not available.
TOT AI..102 528 371 045 105 854
FERC FORM NO.Page 514-
tate of Oreqon
Name of Respondent This Report Is:Date of Report Year of Report
(gJ An Original (Mo, Da, Yr)
Avista Corporation A Resubmission April 17 2006 Dec. 31 , 2005
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 ~ems of receipts and pipeline,
deliveries,7 Aiso 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 additionai rows as necessary to
iocal distribution company portion of the reporting report all data, numbered 14,, 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)062 615
Gas of Others Received for Gatherinq (Account 489.303
Gas of Others Received for Transmission (489.305
Gas of Others Received for Distribution (Account 489.301 102,636
Gas of Others Received for Contract Storaqe (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 Storaqe (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 14.165,251
GAS DELIVERED
Gas Sales (Accounts 480 - 484)824 714
Deliveries of Gas Gathered for Others (Account 489.1) ,303
Deliveries of Gas Transported for Others (Account 489.305
Deliveries of Gas Distributed for Others (Account 489.301 102 636
Deliveries of Contract Storaqe Gas (Account 489.4)307
Exchanqe Gas pelivered 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 Storace (Explain)
Gas Used for Compressor Station Fuel 509
Other Deliveries (Specify): Sales for Resale 976,286
Total Deliveries (Total lines 17 thru 27.16,903,636
GA~ UNAc.;c.;OUNTED FOR
Production Svstem Losses
Gatherinq System Losses
Transmission System Losses
Distribution System Losses 261 615
Storaqe System Losses
Other Losses (Specifv)
Total Unaccounted For (Total lines 30 thru 35)261,615
Total Deliveries & Unaccounted For (Total lines 28 thru 36)17,165,251
FERC FORM NO.2 (ED. 12-96)Page 520
This Page Intentionally Left Blank
Name of Respondent This R~ort Is:
(1) j2g An Original
Date of Report
(Mo, Da, Yr)
State of California
Year of Report
Avista Corp (2)A Resubmission Dec. 31 2005April 17, 2006
STATEMENT OF INCOME FOR THE YEAR
1. Report amounts for accounts 412 and 413, Revenue
and Expenses from Utility Plant Leased to O1hers, 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 NaturaI 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)
TOT AL Utility Operating Expenses
(Enter Total of lines 4 thru 18)
Net Utility Operating Income (Enter Total of
line 2 less 19) (Catty forward to page 117
line 21)
(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
Note: (1) Information 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 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 dnring the year
TOTAL
Current Year Previous Year
857 770 $20 682 299
Name of Respondent This R~ort Is:
(1) 129 An Original
Avista Corp (2)A Resubmission April 17 2006 Dec. 31, 2005
Date of Report
(Mo, Da, Yr)
State of California
Year of Report
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 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 infonnation in the blank space on page
122 or in a supplemental statement
OTHER UTILITY
Current Year Previous Year
ELECTRIC UTiliTY
CUlTent Year Previous Year
GAS UTILITYCurrent Year Previous Year line
No.
FERC FORM NO.2 (REVISED 12-96)
857,770 $20 682 299
Page 115
Avista Corp.
State of California
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 17 2006 Dec. 31, 2005
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). Alsothe prescribed accounts. 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 not
Sold Account 103 Experimental Gas Plant Unclassified and been classified to primary accounts at the end of the year, include in
Account 106 Completed Consfruction Not Classified-Gas. column (d) a tentative distribution of such retirements, on an estimated
3. Include in column (c) and (d), as appropriate, corrections of basis, with appropriate contra entry to the account for accumulated
additions and retirements for the current or preceding year. depreciation provision. Include also in column (d) reversals of tentative
4. Enclose in parenthesis credit adjustments of plant accounts to distributions of prior year's unclassified retirements. Attach supplemental
indicate the negative effect of such accounts. statement showing the account distributions of these tentative
5. Classify Account 106 according to prescribed accounts, on an classifications in columns (c) and (d).
Account
INTANGIBLE PLANT
Balance at
Beginning of Year Additions
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:
( XJ An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp.J A Resubmission April 17 2006 Dec. 31, 2005
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 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 (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. 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.
Transfers Balance at End of Year Line
No.
Page 205
Retirements
FERC FORM NO.2 (ED. 12-96)
State of California
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17,2006 Dec. 31,2005
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 Riohts-of-Way
351 Structures and Improvements
352 Wells
352.1 Storaoe Leaseholds and Riohts
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 Underoround Storaoe Plant (Enter Total of lines 42 thru 53)
Other Storaoe 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 Terminalino and Processing Plant
364.1 Land and Land Riohts
364.2 Structures and Improvements
364.3 LNG Processing Terminal Equipment
364.4 LNG Transporation Equipment
364.5 Measurino and Reoulatino 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 Storaoe and Processino 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
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17,2006 Dec. 31 , 2005
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.
State of California
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent This report is:Date of Report Year Ending
( XJ An Original (Mo, Da, Yr)
Avista Corp.J A Resubmission April 17 2006 Dec. 31 2005
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 MeasurinQ and ReQulatinQ Equipment
370 Communications Equipment
371 Other Equipment
TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)
DISTRIBUTION PLANT
374 Land and Land Rights 160
375 Structures and Improvements
376 Mains 126 835 650
377 Compressor Station Equipment
378 Measuring and Regulating Equipment-General 750
379 Measuring and Regulating Equipment-City Gate 039
380 Services 7,487 909 365
381 Meters 541 019 261
382 Meter Installations
383 House Reaulators
384 House Regulator Installations
385 Industrial Measuring and Regulating Station Equipment 18,036
100 386 Other Property on Customers' Premises
101 386 Other Equipment
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)259,748 276
103 GENERAL PLANT
104 389 Land and Land Rights 69,137
105 390 Structures and Improvements 189 942
106 391 Office Furniture and Equipment
107 392 Transportation Equipment 115 776
108 393 Stores Equipment 611
109 394 Tools, Shop, and Garaae Equipment 55,496 141 896
110 395 Laboratorv Equipment 548
111 396 Power Operated Equipment 893
112 397 Communication Equipment 548
113 398 Miscellaneous Equipment 308 832
114 Subtotal (Enter Totals of lines 1 04thru 113)542 259 143 728
115 399 Other TanQible ProperlY
116 TOTAL General Plant (Enter Totals of lines 114 and 115)542 259 143,728
117 TOTAL (Accounts 101 and 106)803 600 161 004
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 120 803 600 I 161 004
State of California
FERC FORM NO.2 (ED. 12-96)Page 208
State of California
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17, 2006 Dec. 31 2005
GAS PLANT IN SERVICE (ACCOUNTS 101 , 102, 103, AND 1 06)(Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(0)No.
160
10,127,485
750
039
7,490,274
555,280
18,036
100
101
277,024 102
103
137 104
189 942 105
106
115,776 107
611 108
197 392 109
548 110
55,893 111
548 112
140 113
685,987 114
115
685 987 116
20,964 604 117
118
119
120
20,964 604 121
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
State of California
Name of Respondent This Report Is:Date of Report Year of Report
181 An Original (Mo, Oa, Yr)
Avista Corporation 0 A Resubmission April 17 2006 Dec, 31, 2005
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 ot 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 lootnote 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 117.3)117.4)(Account 164,(Account 164,(Account 164,Total
No,(a)(b)(c)(d)(e)
(g)
(hJ (i)
Balance at Beqinninq of Year 342,454 342.454
Gas Delivered to Storace 32,908 32,908
Gas Withdrawn from Storage 374 124 374 124
Other Debits and Credits (1,238)238
Balance at End of Year
Dth
Amount Per Dekatherm $0,0000 $0,0000
State basis of segregation of inventory between current and noncurrent portions:
California storage balance is zero at the end of the year as we no longer do business in 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 17 2006 Dec. 31 2005
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 Met,
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)~CJ
GAS SERVICE REVENUES
: ,
4801 Residential Sales 935,174 14 648,203
481) Commercial and Industrial Sales
:/:':"'::
Small (or Comm.) (See Instr. 6)758,474 5,798 135
Laroe (or Ind.) (See Instr. 6)
482) Other Sales to Public Authorities
484) Interdepartmental Sales 545
TOTAL Sales to Ultimate Consumers 697 193 (1)20,446,338
483) Sales for Resale 114 018
TOTAL Nat. Gas Service Revenues 811 211 20,446,338
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 811 211 20,446,338
...""...., ..." ....,.r,III\I\.:i
485) Intracompany Transfers
487) Forfeited Discounts
488) Misc. Service Revenues 34,442 155,760
489) Rev. from Trans. of Gas of Others 100 191 (1)148,191
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) InterdeDartmental Rents
495) Other Gas Revenues (88 074)(67 990
TOTAL Other Operating Revenues 559 235,961
TOTAL Gas Operating Revenues 857 770 20,682 299
Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of 857 770
:::
Provision for Refunds
Dis. Type Sales by States (Incl. Main Line 693 648
Sales to Resid. and Comm. Custrs.
Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authorities)
Sales for Resale 114 018
Other Sales to Pub. Auth. (Local Dist. Only)
InterdeDartmental Sales 545
TOTAL (Same as Line 10, Columns (b and (dll 811 211
State of California
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent
State of California
Year of ReportThis Report Is:
(1) (gJ An Original
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
Avista Corporation April 17 2006 Dec. 31 , 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
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
179
396
268
268
18,575
575
989 827
989,827
NOTES
(1) Includes ( $1,440,026) unbilled revenues,
(2) Includes (1 961 271) therms relating to unbilled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
State of California
Name of Respondent This R
ooOTt Is:
Date of Report Year of Report
(I) X An Original (Mo, Da, fr)
Avista Corp.(2)A Resubmission April 17,2006 December 31, 2005
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 CUITent Year Previous Year
No,(a)(b)Ie)
1. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natural Gas Production
Bl. Natural Gas Production and Gathering
Operation
750 Operation Supervision and Engineering
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 Regulating Station Expenses
757 Purification Expenses
758 Gas Well Royalties
759 Other Expenses
760 Rents
TOTAL Operation (Enter Total of lines 7 thru 17)
Maintenance
761 Maintenance Supervision and Engineering
762 Maintenance of Structures and Improvements
763 Maintenance of Producing Gas Wells
--
764 Maintenance ofField Lines
765 Maintenance of Field Compressor Station Equipment
766 Maintenance of Field Meas. and Reg, Sta. EQuipment
767 Maintenance of Purification EQuipment
768 Maintenance of Drilling and Cleaninl!; Equipment
769 Maintenance of Other EQuipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production and Gathering (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 bv Others
778 Royalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used bv the UtiJitv-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~ort Is:Date of Report Year of Report(l) X An Original (Mo, Du, Yr)
A vista Corp,(2)A ResubInlssion April 17,2006 December 31 , 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for
Line Amount CUITent Year Previous Year
No.(a)(b)(e)
82, Products Extraction (Continued)
~\'/:/,::
Maintenance
784 Maintenance Supervision and EnJ!:ineerinJ!:
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refilling EQuicment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products StoraJ!:e Equipment
789 Maintenance of Compressor EQuicment
790 Maintenance of Gas MeasurinJ!: and ReJ!:. 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 Develocment (Enter Total of lines 61 thru 64)
D, Other Gas Supply Expenses
.",..'; "
Operation
800 Natural Gas Well Head Purchases
800.1 Natural Gas Well Head Purchases, Intracompanv 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 696,028 16,332,436
804.1 Liquefied Natural Gas Purchases
805 Other Gas Purchases 60,334 (7,057)
(Less) 805, I Purchased Gas Cost Adjusunents 619,770
TOTAL Purchased Gas (Enter Total of lines 67 to 76)376,132 16,325,379
806 Exchange Gas
Purchased Gas Excenses
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 757
807.5 Other Purchased Gas Expenses
TOTAL Purchased Gas Excenses (Enter Total of lines 80 thru 84)15,757
808, I Gas Withdrawn from Storage-Debit 120,267
(Less) 808.2 Gas Delivered to Storage-Credit (32.908)(83,689)
809,1 Withdrawals of LiQuefied Natural Gas for Processing-Debit
89 (Less) 809.2 Deliveries of Natural Gas for ProcessinJ!:-Credit
Gas Used in UtiIitv Operations-Credit
810 Gas Used for Compressor Station Fuel-Credit
811 Gas Used for Products Extraction-Credit
812 Gas used for Other Utilitv Operations-Credit
TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)
813 Other Gas Supplv Excenses 18,801
TOTAL Other Gas Succlv Exp (Total of lines 77,78,85.86 thru 89,95)9,463,491 16,276.248
TOTAL Production Expenses (Enter Total of lines 3,, and 96)9,463,491 16.276,248
FERC FORM NO.2 (ED 12-88)Page 321
State of California
Name of Respondent This R~ort Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A ResubmisslOn April 17,2006 December 31 2005
GAS OPERATION AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)IiIi (c)
2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A. Underl!round Storal!e Expenses
100 Operation
101 814 Operation Supervision and En.l!ineerin.l!
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.l! and Re.l!ulatin.l! Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 Gas Losses
III 824 Other Expenses
112 825 Stora.l!e Well Rovalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 101 thru 113)
115 Mailltenance
116 830 Mailltenance Supervision and En.l!ineerin.l!
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 Measurin.l! and Rel!Ulatin.l! Station Eauipment
122 836 Mailltenance of Purification Equipment
123 837 Mailltenance of Other Equipment
124 TOTAL Mailltenance (Enter Total of lines 116 thru 123)
125 TOTAL Under.I!Tound Stora.l!e Expenses (Total of lines I14 and 124)
126 B. Other Storage Expenses
127 Operation
128 840 Operation Supervision and En.l!ineerin.l!
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 Mailltenance
136 843.1 Mailltenance Supervision and En.l!ineerin.l!
137 843,2 Maintenance of Structures and Improvements
138 843.3 Mailltenance of Gas Holders
139 843,4 Mailltenance of Purification I!Quipment
140 843.5 Maintenance of Liquefaction Equipment
141 843.6 Mailltenance of Vaporizin.l! Equipment
142 843.7 Mailltenance of Compressor '!Quipment
143 843,8 Mailltenance of Measuring and Regulating Equipment
144 843.9 Maintenance of Other Eauipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Stora.l!e Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (ED 12-88)Page 322
State of California
Name of Respondent This R~ort Is:
(1) lKI An Original
Date of Report
(Mo, Du, Yr)
Year of Report
Avista Corp.(2)A ResubmisslOn April 17 2006 December 31 2005
GAS OPERATION AND MAINTENANCE EXPENSESLine Amount
No, (a)147 C. Liquefied Natural Gas Tenninaling and Processing Expenses
148 ODeration
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 Svstem ExDenses
156 844.8 Svstem 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 Eauipment
170 847.4 Maintenance of LNG Transportation EQuipment
171 847.5 Maintenance of Measuring and Regulating Equipment
172 847.6 Miantenance of Compressor Station EauiDment
173 847.7 Maintenance of Communication Equipment
174 847,8 Maintenance of Other EauiDment
175 TOTAL Maintenance (Enter Total of lines 167 thru 174)
176 TOT AL 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
179 Operation
180 850 Operation Supervision and Engineering
181 851 Svstem Control and Load Dispatching
182 852 Communication System Expenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for ComDressor 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 OtherExDenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)
Amount for
Current Year
(h)
Amount for
Previous Year
(e)
FERC FORM NO.2 (ED 12-88)Page 323
State of California
Name of Respondent This R~On Is:Date of Repon Year of Report(I) X An Original (Mo. Da. Yr)
Avista Corp.(2)A ResubmisslOn April 17,2006 December 31 2005
GAS OPERA nON AND MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)(e)
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 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 EnJ!:ineerinJ!:218 896
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 18.416 92.019
209 875 Measuring and Regulating Station Expenses-General 650
210 876 Measuring and ReJ!:Ulating Station Expenses-Industrial
211 877 Measurinl( and ReJ!:Ulating Station Expenses-Citv Gate Check Station (13)449
212 878 Meter and House Regulator Expenses 19.264 106 394
213 879 Customer Installations Expenses 32,383 79,669
214 880 Other Expenses 27,800 181
215 881 Rents 550
216 TOTAL Operation (Enter Total of lines 204 thru 215)109,718 375,158
217 Maintenance
218 885 Maintenance Supervision and Engineering (289)753
219 886 Maintenance of Structures and Improvements
220 887 Maintenance of Mains 974 948
221 888 Maintenance of Compressor Station EQuipment
222 889 Maintenance of Meas. and ReJ!:, Sta, Equip,General 129 443
223 890 Maintenance of Meas, and ReI(, Sta. EQuip.Industrial (44)
224 891 Maintenance of Meas. and Reg. Sta, EQuip.Citv Gate Check Station (13)
225 892 Maintenance of Services 583 12.065
226 893 Maintenance of Meters and House ReJ!:Ulators 002 12.095
227 894 Maintenance of Other Eauipment (142)577
228 TOTAL Maintenance (Enter Total of lines 218 thru 227)11,200 885
229 TOTAL Distribution Expenses (Enter Total of lines 216 and 228)
~""
"'i':
120.918 428.043
230 5, CUSTOMER ACCOUNTS EXPENSES
, "
231 Operation
232 901 Supervision 068
233 902 Meter ReadinJ!: Expenses 40.084 85.845
234 903 Customer Records and Collection Expenses 562 336,989
235 904 Uncollectible Accounts 80.042
236 905 Miscellaneous Customer Accounts Expenses 13,884
237 TOTAL Customer Accounts Expenses (Enter Total of lines 232 thru 236)52.646 521.737
FERC FORM NO.2 (ED 12-88)Page 324
State of California
Name of Respondent This
1ort
Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
A vista Corp,(2)A ResubmisslOn April 17.2006 December 31,2005
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)(c)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
~':\\""::' ,::.,
239 Operation
" '
240 907 Supervision
241 908 Customer Assistance Expenses (335)320
242 909 Informational and Instructional Expenses 822
243 910 Miscellaneous Customer Service and Informational Expenses
244 TOTAL Customer Service and Information Expenses (Lines 240 thru 243)(335)142
245 7. SALES EXPENSES
246 Operation
,,:"' ,, :,
247 911 Supervision
248 912 Demonstrating and Selling Expenses
249 913 Advertising Expenses 635
250 916 Miscellaneous Sales Expenses 535
251 TOTAL Sales Expenses (Enter Total of lines 247 thru 250)- 2,170
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries
255 921 Office Supplies and Expenses 100,301
256 (Less) (922) Administrative Expenses Transferred-Cr,
257 923 Outside Services Emploved 7,469 178,630
258 924 Property Insurance 11,043
259 925 Injuries and Damages 48,931 63,671
260 926 Emplovee Pensions and Benefits 291 33,476
261 927 Franchise Requirements
262 928 Regulartory Commission Expenses 29,588 129,592
263 (Less) (929) Duplicate Charges-Cr.
264 930.\ General Advertising Expenses (9)
265 930,2 Miscellaneous General Expenses 43,007
266 931 Rents 68,824
267 TOTAL Operation (Enter Total of lines 254 thru 266)024 877,494
268 Maintenance
269 935 Maintenance of General Plant 6,473 33,191
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)92,497 910.685 I
271 TOTAL Gas 0, and M, Exp (Lines 97 177 201 229,237 244 25 I ,and 270)729,216 18,146,0251
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, 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
ber31.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
emplovees on line 3, and show the number of such special functions,
Payroll Period Ended (Date)December 31,2005
Total Regular Full-Time Emplovees
Total Part-Time and Temporary Employees allocation of General Emplovees
Total Emplovees
FERC FORM NO.2 (ED 12-88)Page 325
This Page Intentionally Left Blank
State of California
Name of Respondent This ~ort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 Dec. 31, 2005
TRANSMISSION MAlNS
Show Particulars Called for Concerning 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)(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
Avista Corp.
ine Kind of Material
No.
(a)
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Steel Wrapped
Plastic
Plastic
Plastic
Plastic
Plastic
TOTALS
FERC FORM NO.
This Report Is:(1) ~ An Original
(2) 0 A Resubmission
DISTRIBUTION MAINS
Date of Report
(Mo, Da, Yr)
April 17 2006
Diameter of
Pipe, Inches
(bJ
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
Show Particulars Called for Concemina Distribution Mains
Total Length in I Taken up Use Beginning of Laid During Abandoned Durin!
Year, Feet Year, Feet Year, Feet(c) (d) (e)
396,000 0 396,000
68,640 0 68,640
190,080 0 190,080
Less than 2"
2" to 4"
4" to 8"
8" to 12"
Over 12"
512 160
68,640
1 ,235,520
Page 514-
512 160
68,640
19 Change in footage reflects additions net of retirements.
1 ,235 520
State of California
Year of Report
Dec. 31, 2005
Total Length
in Use End
of Year, Feet
(f)
Name of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17, 2006 Dec. 31 2005
DISTRIBUTION MAINS
Show Particulars Called for Concerning Distribution Mains
Footnote
Line
No.
The California portion of our distrubution system was sold in May of 2005.
State of California
FERC FORM NO.Page 514-
Name of Respondent This Report Is:Date of Report Year of Report
(1) (?g An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April17,2006 Dec. 31 , 2005
SERVICE PIPES GAS
Show the particulars called for concernina 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 Yea During Year of Year in Feet
(a)(b)(c)(d)(e)(f)
(g)
Steel Wrapped l' or Less 801 801 Not
Steel Wrapped 1" thru 2"Available
Steel Wrapped 2" thru 4"
Steel Wrapped 4" thru 8"
Steel Wrapped Over 8"
Plastic l' or Less 8,433 8,433
Plastic 1" thru 2"
Plastic 2" thru 4"
Plastic 4" thru 8"
Plastic Over 8"
Number added is net of retire,ents.
TOTALS 16,284 16,284
State of California
FERC FORM NO.Page 514-
State of California
Narne of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
(2)1Avista Corp.A Resubrnission April17,2006 Dec. 31 2005
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the respondent at the close of the year.
Line Footnote
No.
The California portion of our service pipes were sold in May of 2005.
FERC FORM NO.Page 514-
State of California
Name of Respondent This R
iKlort Is:
Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)A Resubmission April 17,2006 Dec. 31,2005
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)
(g)
(h)
Detailed information not available.
TOTAL 008 19,008
FERC FORM NO.Page 514-
State of California
Name of Respondent This Report Is:Date of Report Year of Report
(8) An Original (Mo, Da, Yr)
Avista Corporation A Resubmisslon April 17, 2006 Dec. 31 , 2005
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., 14., 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)(e)
GAS RECEIVED
Gas Purchases (Accounts 800-805)097,632
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (489.305
Gas of Others Received for Distribution Account 489.301 83,118
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 pf Respondent's Gas Transported bv Others (Account 858)332
Other Gas Withdrawn from Storage (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 14.180,750
CiA::) DELIVERED
Gas Sales (Accounts 480 - 484)863,065
Deliveries of Gas Gathered for Others (Account 489.303
Deliveries of Gas Transported for Others (Account 489.305
Deliveries of Gas Distributed for Others (Account 489.301 83,118
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 20,900
Total Deliveries (Total lines 17 thru 27.967 083
GAS UNA ~r~nIII\ITED FOR
Production System Losses
Gatherina Svstem Losses
Transmission System Losses
Distribution System Losses 213,667
Storace System Losses
Other Losses (Specify)
Total Unaccounted For (Total lines 30 thru 35)213,667
Total Deliveries & Unaccounted For (Total lines 28 thru 36)180,750
NOTE: California System sold in 2005.
FERC FORM NO.2 (ED. 12-96)Page 520
Name of Respondent This ~rt Is:
(1) Ii9 An Original
Date of Report
(Mo, Da, Yr)
State of Montana
Year of Report
Avista Corp (2)0 A Resubmission Dec. 31,2005Apri1172006
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 tbru 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 Natnral Gas com-
parnes using accounts 404.1, 404., 404., 407., 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.(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
$10 877 767 691,177
Name of Respondent Tbis R~rt Is:
(1) I!I An Original
Date of Report
(Mo, Da, Yr)
State of Montana
Year of Report
Avista Corp (2)A Resubmission April17 2006 Dec. 31 2005
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 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 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 infonnation in the blank space on page
122 or in a supplemental statement.
ELECTRIC UTILITY
Current Year Previous Year
GAS UTILITYCurrent Year Previous Year
OTHER UTILITY
Current Year Previous Year Line
No.
$10 877 767 691 177
FERC FORM NO.2 (REVISED 12-96)Page 115
Name of Respondent This R~rt Is: (1) ~ An Original
Not Directl Assi ned to States
Date of Report . Ye!Ir of Report
(Mo, Da, Yr)
Avista Corp (2)D A Resubmission Dec. 31 2005April 17, 2006
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 thro 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 andlOforNaturalGascom-
parnes 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.
(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 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 majorfactors 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
$64 745 777
Name of Respondent This R~ort Is:
(1) (2g An Original
Avista Corp (2)A Resubmission April 17, 2006 Dec. 31 2005
Not Direct! Assi ed to States
Date of Report Year of Report
(Mo, Da, Yr)
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
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 inS11fficient 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
Current Year Previous Year
GAS UTILITYCurrent Year Previous Year Line
No,
OTHER UTILITY
Current Year Previous Year
$64 593 587
FERC FORM NO.2 (REVISED 12-96)
$152 190
Page 115
Avista Corp.
Not Direct!Assi ned to States
This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
) A Resubmission April 17 2006 Dec. 31 , 2005
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
(b)
TOTAL Manuafactured Gas Production Plant Enter Total of lines 8 thru 24
PRODUCTS EXTRACTION PLANT
FERC FORM NO.2 (ED. 12-96)Page 204
Not Direct! Assi ned to States
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17, 2006 Dec. 31,2005
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 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 (f) reclassifications or transfers within utility conforming to the requirements of these pages.
plant accounts. include also in column (f) the additions or 8. For each amount comprising the reported balance and changes in
reductions of primary account classifications arising from Account 102, state the property purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. 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.
Balance at End of Year Line
No.
Retirements Adjustments
FERC FORM NO.2 (ED. 12-96)Page 205
tree IY, ssigne a es
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17 2006 Dec. 31 2005
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
UnderQround StoraQe Plant
350.1 Land
350.2 Riahts-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 MeasurinQ and RegulatinQ Equipment
363.5 Other Equipment
TOTAL Other Storaae Plant (Enter Total of lines 56 thru 64)
Base Load Liquefied Natural Gas Terminalina and ProcessinQ 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 MeasurinQ and ReQulating Equipment
364.6 Compressor Station Equipment
364.7 Communications Equipment
364.8 Other Equipment
TOTAL Base Load Liq NatOI 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 RiQhts
365.2 Rights-of-Way
366 Structures and Improvements
N to'tI A .d t 8t t
FERC FORM NO.2 (ED. 12-96)Page 206
Not Directly Assigned to States
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17 2006 Dec. 31 2005
GAS PLANT IN SERVICE (ACCOUNTS 101 , 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(Q)No.
FERC FORM NO.2 (ED. 12-96)Page 207
IrectlY sslQne to tates
Name of Respondent This report is:Date of Report Year Ending
( XJ An Original (Mo, Da, Yr)
Avista Corp.J A Resubmission April 17,2006 Dec. 31,2005
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 MeasurinQ and ReQulatinQ 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
377 Compressor Station Equipment
378 MeasurinQ and ReQulatinQ Equipment-General
379 MeasurinQ and ReQulatinQ Equipment-City Gate
380 Services
381 Meters
382 Meter Installations
383 House ReQulators
384 House ReQulator Installations
385 Industrial Measuring and Regulating Station Equipment
100 386 Other Property on Customers' Premises
101 386 Other Equipment
102 TOTAL Distribution Plant (EnterTotals of lines 88 thru 101)
103 GENERAL PLANT
104 389 Land and Land Rights 253 732
105 390 Structures and Improvements 365,334
106 391 Office Furniture and Equipment 378 871
107 392 Transportation Equipment 451 834 140
108 393 Stores Equipment
109 394 Tools, Shop, and GaraQe Equipment 479 197 57,411
110 395 Laboratory Equipment 346 855
111 396 Power Operated Equipment 368,144
112 397 Communication Equipment 702 265 348
113 398 Miscellaneous Equipment 332
114 Subtotal (Enter Totals of lines 104 thru 113)998 693 452 770
115 399 Other Tangible Property
116 TOTAL General Plant (Enter Totals of lines 114 and 115)998 693 452 770
117 TOTAL (Accounts 101 and 106)808 960 752,297
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)808 960 752 297
FERC FORM NO.2 (ED. 12-96)Page 208
Not Directly Assianed to States
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.) A Resubmission April 17,2006 Dec. 31, 2005
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.
100
101
102
'-'
103
7253,732)104
365 334 105
378 871 106
(11 382 445 592 107
108
161 (54 624)479 823 109
641 (13,115)332 099 110
368 144 111
696)705 917 112
332 113
802 705 883)741 778 114
115
802 705 883)741 778 116
471,101 705 883)384 273 117
118
119
120
471 101 705 883)384 273 121
FERC FORM NO.2 (ED. 12-96)Page 209
Not Directly AssiQned to States
Name of Respondent This rgrort Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmisslon April 17 2006 Dec, 31 2005
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 Met.
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
(481) Commercial and Industrial Sales
;;
i;;,Small (or Comm.) (See Instr. 6)
LarQe (or Ind.) (See Instr. 6)
482) Other Sales to Public Authorities
484) Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
(483) Sales for Resale 152 110
TOTAL Nat. Gas Service Revenues 152 110
Revenues from Manufactured Gas
TOTAL Gas Service Revenues 152 110
U I Mt:H ~
~...
II'II~..~, ~ .~II-"'"
485 Intracompany Transfers
487 Forfeited Discounts
(488 Misc. Service Revenues
(489 Rev. from Trans. of Gas of Others
1(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
TOTAL Other Operatinq Revenues
TOTAL Gas OperatinQ Revenues 152 190
I (Less) (496) Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of
..".",
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
; ;'
Other Sales to Pub. Auth. (Local Dist. Only)I."
, ',,"; '
Interdepartmental Sales
TOTAL (Same as Line 10, Columns (b and Cd))
; ,
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent
Not Directl Assi ned to States
This
iort
Is:Date of Report Year of Report(1) X An Original (Mo, Da, Yr)
(2)A Resubmission April 17 2006 Dec. 31 2005Avista 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 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,
305 000
305,000
FERC FORM NO.2 (ED. 12-86)Page 301