2007Annual Report.pdf

ÆVU--G
Form 2 Approved
OMS No. 1902-0028
(Expires 6/30/2007)
Form 3-0: Approved
OMS NO.1902-0205
(Expires 6/30/2007)
THIS FiliNG IS
Item 1: ~ An Initial (Original)
Submission
OR 0 Resubmission No.
;0rnN ('Cf m
:2rno
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, Sectons 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 report to be of a confidential nature.
Exact Legal Name of Respondent (Company)
A vista Corporation
Year/Period of Report
End of 2007/04
FERC FORM No. 213Q (02-04)
IDENTIFICATION
01 Exact Legal Name of Respondent 02 Year/Period of Report
Avista Corporation End of 2007/04
03 Previous Name and Date of Change (if name changed during year)
1 1
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 Executive VP and CFO
07 Address of Contact Person (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, WA, 99202
08 Telephone of Contact Person,lncluding 09 This Report Is 10 Date of Report
Area Code (1) IX An Original (2) 0 A Resubmission (Mo,Da, Yr)
[phone] 04/17/2008
ANNUAL CORPORATE OFFICER CERTIFICATION
The undersigned offcer 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 affirs 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 Accunts.
,
.
01 Name 03 Signature /;tØ~04 Date Signed
M. K. Malquist (Mo,Da, Yr)
02 Title l/
Executive VP and CFO M. K. Malquist 041172008
Title 18, U.S.C. 1001 makes it a crime for any person to knowingly and willngly to make to any Agency or Departent of the United States any
false, fictitious or fraudulent statements as to any matter within its jurisdiction.
-
FERC FORM NO. 213-Q:
REPORT OF MAJOR ELECTRIC UTILITIES LICENSEES AND OTHER
FERC FORM NO. 2/3-Q (REV. 02-04)Page 1
Name of Respodent Th rep is:Date of Repii Yea Endig
Avita Corp.( Xl An Orgi (Mo, Da Yr)
(1 A Resubmision Aprl 18,2008 De. 3 i, 2007
List of Schedules (Natural Gas Company)
Enter in colum (d) the ters "none," "not applicable," or "NA" as appropriate, where no information or amounts have bee reported for
certain pages. Omt pages where the responses are "none," "not applicable," or "NA."
Lie Title of Schedule Reference Page No.Dae Revied Remarks
No.(a)(b)( c)(d)
GENERA CORPORATE INORMATION AND FIANCIA STATEEN
i Gener Inortion 101
2 Contrl Over ResDOndent 102 N/A
3 Cororations Contrlled bv Resdent 103
4 Securty Holdei and VOlilZ Powei 107
5 ImPOrtt ChalZes DuIZ the Yea 108-109
6 Comnative Balce Shee 110-113
7 Stateent of Income for the Yea 114-116
8 Stateent of Accumulated Comnrehenive Income and HedirnlZ Activities 117 shown as 122a/
9 Statement of Reted EalZs for the Yea 118-119
10 Stateents of Cash Flows 120-12
11 Notes to Fincia Statements 122-123
BALCE SHEET SUPPORTIG SCHEDUL (Asset and Oter Debits)
12 SII of Utility Plat and Accumul Prviion for Deiaon Amorttion, and Depleton 200-201
13 Gas Plat in Serice 204-209
14 Gas Prper and Caity Leed frm Otei 212 N/A
15 Gas Proper and Capacity Leed to Otei 213 N/A
16 Ga Plat Held for Futu Use 214
17 Contrction Work in Prol!s-Gas 216
18 Gener Decription of Costrction Overea Pred 218 N/A
19 Accumulate Prvision for Deiation of Gas Utilitv Plant 219
20 Gas Stored 220
21 Investments 222-223 N/A
22 Invesents in Subsidi Comnanes 224-225
23 Prepayments 230
24 Extrii Pron Losses 230 N/A
25 Unrovered Plat and Reirlatoiv Study Cost 230 N/A
26 Oter Reguto Asset 232
27 Miscelleous Defered Debits 233
28 Accumulated Deer Income Taxes 234-235
BALCE SHEET SUPPORTING SCHEDULES (Liabilties and Other Credits)
29 Capital Stok 250-251
30 Capita Stok Subscribe Capita Stok Liability for Conveiion, Premium on Capita Stok, and
1nents Received on Caita Stok 252 N/A
31 Other Paid-in Capita 253 N/A
32 Discount on Caita Stok 254 N/A
33 Capit Stok Expene 254(b)
34 Securties issued or Assued and Securties Refuded or Ret Dug the Yea 255 N/A
35 LonlZ-Ter Debt 256-257
36 Unaorted Debt Expee, Prum, and Dicount on LoIZ-Ter Debt 258-259 N/A
37 Unaored Loss and Gai on Reaauired Debt 260 N/A
FERC FORM NO.2 (12-96)Page 2
Name of Respondent This reprt is:Date of Repi1 Yea Ending
Avista Corp.( Xl An Orgin (Mo, Da, Yr)
(1 A Resubmission Aprl 18, 2008 Dec. 3 i, 2007
List of Schedules (Natural Gas Company)
Enter in column (d) the ters "none," "not applicable," or "NA" as appropnate, where no information or amounts have been reported for
cerain pages. Omit pages where tht; responses are "none," "not applicable," or "NA."
Line Title of Schedule Reference Page No.Da Revsed Remks
No.(a)(b)( c)(d)
38 Reconcilion of Reort Net hicome with Taxable hicome for Feder hicome Taxes 261
39 Taxes Accrued, Preod, and Chaed Durimi Yea 262-263
40 Accumuled Dered hivestment Tax Credits 266-267
41 Miscelleous Curent and Accrued liabilities 268
42 Oter Defer Creits 269
43 Accumulated Defered hicome Taxes-Oer Proner 274-275
44 Accumulted Defered hicome Taxes-Oer 276-277
45 Oter Reimto liabilities 278
INCOME ACCOUN SUPPORTIG SCHEDULES
46 Gas Ootig Revenues 300-301
47 Revenues from Tranotion of Gas of Othei Thue: Gatherg Facilities 302-303 N/A
48 Revenues from Tranortion of Gas of Othei Thue: Trasmission Facilities 304-305 N/A
49 Revenues frm Storage Gas of Othei 306-307 N/A
50 Oter Gas Revenues 308 N/A
51 Gas Onertion and Maitence Exnees 320-325
52 Exchange and hnba1ce Traactions 328 N/A
53 Gas Used in Utity Onertions 331 N/A
54 Tramission and Comnrsion of Gas bv Otei 332 N/A
55 Oter Gas Sunnlv Exnenses 334
56 Miscelleous Gener Exnenes-Gas 335
57 Deeciation, Deleton, and Amorttion of Gas Plat 336-338
58 Parcul Concerg Cer hicome Deuction and hiterest Chages Accowits 340
COMMON SECTION
59 Reiiatrv Commssion Exnenes 350-351
60 Ditrbution of Salares and Wages 354-355
61 Charges for Outside Professiona and Oter Consultative Serices 357
GAS PLA STATISTICAL DATA
62 Comnresor Stations 508-509 N/A
63 Gas Storage Proiects 512.513
64 Tramision Lies 514 N/A
65 Tramision SYStem Pea Deliveres SiS N/A
66 Auxilar Peag Facilities 519
67 Gas Accowit-Natu Gas 520
68 Svstem Man 522 N/A
69 Footnote Reference 551 shown as 450
70 Footnote Text 552 shown as 450
71 Stockholder's Reort (check anDrnriate box)
(Xl Four copies wil be submitted
( 1 No anua reprt to stockholdei is preed
FERC FORM NO.2 (12-96)Page 3
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report Is:
(1) IX An Original
(2) 0 A Resubmission
Date of Report
(Mo,Da, Yr)
04117/2008
Year/Period of Report
End of 2007/Q4
GENERAL INFORMATION
1. Provide name and title of offcer having custody of the general corporate books of account and address of
offce where the general corporate books are kept, and address of offce where any other corporate books of account
are kept, if different from that where the general corporate books are kept.
M. K. "'lquist, Executive vice President an Chief Finaial Officer
1411 E. Mission Avenue
Spokae, 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 serice in the states of Washington, Idao and Montan
Natural gas service in the states of Washington, Idao an Oregon
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not
the principal accountant for your previous year's certified financial statements?
(1) 0 Yes...Enter the date when such independent accountant was initially engaged:
(2) IX No
FERC FORM No.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 2007/Q4
(2) Ei A Resubmission 04/172008
C RPORATIONS CONTROLLED BY R SPONDENT
1. Report below the names of all corporations, business trsts, 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 part 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 part.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owned Ref.
(a)(b)(c)(d)
1 Avista Capital, Inc.Parent company to the 100
2 Company's subsidiaries.
3
4 Advantage IQ, Inc.Provider of utiity bil 93.3 Subsidiary of
5 procesing, payment and Avista Capital
6 information services to multi
7 site customers in Nort Amer.
8
9 Avista Communications, Inc.Inactive 100 Inactive
10 Subsidiary of
11 Avista Capital
12
13
14
15
16 Avista Development, Inc.Maintains an investment 100 Subsidiary of
17 portolio of real estate and Avista Capital
18 other investments.
19
20
21 Avista Energy, Inc.Wholesale electricity and 100 Subsidiary of
22 natural gas trding,marketing Avista Capital
23 and resource management.
24 Majority of operations sold
25 effective June 30.2007.
26
27 Avista Laboratories, Inc.Held a cost based investment 100 Inactive subsidiary
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 2007/Q4
(2) Fi A Resubmission 04/17/2008
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 partculars (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 part 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 part.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owned Ref.
(a)(b)(c)(d)
1 in a fuel cell technology or Avista CapitaL.
2 company. Inactive.
3
4 Avista Power, LLC Ows non-regulated generation 100 Affliate of
5 assets.Avista Capital
6
7 Avista Turbine Power, Inc.Receives assignments of 100 Subsidiary of
8 purchase power agreements.Avista Capital
9
10 Avista Rathdrum, LLC Owed 49 percent of Rathdrum 100 Inactive affliate
11 Power, LLC (sold 10/2006)of Avista Power.
12
13 Avista Ventures, Inc.Invests in emerging business.100 Subsidiary of
14 Avista Capital
15
16
17 Pentzer Corporation Parent company of Bay Area 100 Subsidiary of
18
.Manufacturing and Pentzer Avista Capital
19 Venture Holdings.
20
21 Advanced Manufacturing and Development, Inc.Performs custom sheet metal 83 Subsidiary of
22 ,dba Metalfx manufacturing of electronic Bay Area
23 enclosures, parts and systems Manufacturing.
24 for the computer, telecom and
25 medical industres. AM&D
26 also has a wood product
27 division.
FERC FORM NO.2 (ED. 12-96)Page 103.1
Name of Respondent This~rtIS:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmission 04/17/2008
C RPORATIONS CONTROLLED BY R SPONDENT
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirecty by respondent
at any time during the year. If control ceased prior to end of year, give partculars (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 part 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 part.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owed Ref.
(a)(b)(c)(d)
1
?Avista Receivables Corporation Acquires and sells accunts 100 Subsidiary of
3 recivable of Avista Corp.Avista Corp.
4
5 Avista Energy Canada, Ltd.A whlly owned subsidiary of 100 Subsidiary of
6 Avista Energy, Inc. that Avista Energy
7 provided natural gas service
8 to commercial and industral
9 customers in
10 .British Columbia, Canada.
11 Majority of operations sold
12 effective June 30, 2007.
13
14 Coyote Springs 2, LLC Owed an interest in a 100 Inactive
15 generation plant.
16
17
18 Spokane Energy, LLC Marketing of energy.100 Affliate of
19 Avista Corp.
20
21
22 Avista Capital II An affliated business trst 100 Affliate of
23 formed by the Company.Avista Corp.
24 Issued Pref. Trust Securities
25
26 AVA Capital Trust III An affliated business trst 100 Affliate of
27 formed by the Company.Avista Corp.
FERC FORM NO.2 (ED. 12-96)Page 103.2
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmission 04/172008
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 part 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 part.
Line Name of Company Controlled Kind of Business Percent Voting Footnote
No.Stock Owed Ref.
(a)(b)(c)(d)
1 Issued Pref. Trust Securities
2
3 Steam Plant Square, LLC Commercial offce and retail 90 Subsidiary of
4 leasing.Avista Development
5
6 Courtard Offce Center Commercial offce and retail 100 Subsidiary of
7 leasing.Avista Development
8
9 AVA Formation Corp.Holding Company 100 Formed in 2006 for th
10 purpose of completing
11 proposed statutory
12 share exchange and
13 holding company
14 structure. Currently
15 a subsidiary of
16 Avista Corp.
17
18 Bay Area Manufacturing Holding Company 100 Subsidiary of
19 Pentzer Corporation
20
21 Pentzer Venture Holdings Inactive 100 Subsidiary of
22 Pentzer Corporation
23
24
25
26
27
FERC FORM NO.2 (ED. 12-96)Page 103.3
Name of Respondent This ~ ort Is:Date of Report Year of Report
(I) X An Orginal (Mo, Da, Yr)
A vista Corp.(2) A Resubmission 04/18/2008 Dec. 31, 20
Security Holders and Votini; Powers
I. Give the names and addresses of the 10 securty holders of the respondent who, at the date of the latet closing of the stock book or
compilation of list of stockholders of the respondent, prior to the end of the yea, had the highest votig powers in
2. If any securty other than stock cares voting rights, explai in a supplemental statement how such securty beame vested with voting rights
and give other importt detals concerning the voting rights of such securty. State whether votig rights
3. If any class or issue of securty has any speial privileges in the election of directors, trstee or maagers, or in the determation of
corprate action by any method, explain briefly in a footnote.
4. Furish detals concerning any options, warants, or rights outstading at the end of the yea for others to purchase securties of the
respondent or any securties or other assets owned by the respondent, including prices, expiration dates, and other
I. 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 meetig prior to the end of year for election of directors of the such meeting:
footnote, state the purpse of such closing:respondent and number of such votes cast by proxy.
November 29, 2007 to pay the Total:48,001,005 May 10,2007
December 14, 2007 dividend By Proxy:48,001,005 Spokae, Washington
VOTING SECURIIES
4. Number of vote as of (date):11/29/2007
Jine Name (Title) and Address of Securty Holder Total Votes Common Stock Preferred Stock Other
No.(a)(b)(c)(d)(e)
5 TOTAL votes of all votig securities 52,724,612 52,724,612
6 TOTAL number of securty holders 13,421 13,421
7 TOTAL votes of securty holders listed below 382,251 382,251
8
9 DBH Propertes LP, Coeur d'Alene, ID 77,646 77,646
10 Gar Gail Ely, Libert Lake, WA 65,218 65,218
11 Gar Ely, Libert Lake, WA 59,706 59,706
12 Margaret Ane Brosnan, Akon, OH 55,00 55,00
13 Alfred C. Glassell, Jr., Houston, TX 30,028 30,028
14 Kay Kobayashi, Los AnJ!eles, CA 22,092 22,092
15 Ernest C. Gosnay, Jr. & Mare K Gosnay TR, Spokane, WA 20,01 i 20,011
16 Robert EUJ!ene Young, Washougal, W A 20,000 20,000
17 Jack W. Gustavel, Coeur d'Alene, ID 16,588 16,588
18 Edmund M. Reek TR UA ruN 1698, Salem, OR 15,962 15,962
19
20
FERC FORM NO.2 (ED 12-96)Page 107
Nanie of Respondent
Avista Corporation
Date of Report Year/Period of Report
End of 2007/Q4
This Report Is:
(1) 12 An Original
(2) 0 A Resubmission
1M ORTANT CHANGES DURING THE QUARTERIEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in
accordance with the inquiries. Each inquiry should be answered. Enter "none," "not applicable," or "NA" where applicable. 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 propert, and of the transactions relating thereto,
and reference to Commission authorization, if any was required. Give date joumal entries called for by the Uniform System of Accounts
were submitted to the Commission.
4. 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 terrtory 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, givng 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 liabilties 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 offcer,
director, security holder reported on Page 106, voting trustee, associated company or known associate of any of these persons was a
part 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 offcers, directors, major security holders and voting powers of the respondent that may have
occurred during the reporting period.
14.1n 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 affliated companies through a
cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.
04/17/2008
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 YearlPeriod of Report
(1) 2S An Original (Mo, Da, Yr)
Avista Corpration (2)A Resubmission 04/172008 2007/04
IMPORTANT CHANGES DURING THE QUARTERNEAR (Continued)
1. None2. None
3. On June 30, 2007, Avista Energy, Inc. (a subisidiar of Avista Capital, which is a subsidiar of Avista
Corp.) and Avista Energy Canada, Ltd. (a subsidiar of Avista Energy, Inc.) completed the sale of substantially all of
their contracts and ongoing operations to Shell Energy Nort America (U.S.), L.P. (Shell Energy), formerly known as
Coral Energy Holding, L.P., as well as to certain other subsidiares of Shell Energy.4. None5. None
6. Avista Receivables Corporation (ARC) is a wholly owned, banptcy-remote subsidiar of Avista Corp.,
formed for the purose of acquirg or purchasing interests in certain accounts receivable, both biled and unbiled, of the
Company. On March 19,2007, Avista Corp., ARC and a third-pary financial institution amended a Receivables
Puchase Agreement. The most significant amendment was to extend the termation date from March 20, 2007 to March
17, 2008. Under the Receivables Puchase Agreement, ARC can sell without recourse, on a revolvig basis, up to $85.0
milion 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 other operating expenses
ofAvista Corp. The Receivables Purchase Agreement has financial covenants, which are substantially the same as those
of Avista Corp.'s $320.0 million commtted line of credit. As of December 31,2007, there were $85 millon of accounts
receivables sold under ths revolvig agreement.
7.. No changes in aricles of incorporation or amendments to charer. On May 11,2007, the Bylaws of Avista
Corp. were amended. Specifically, section 4 of Aricle il of the Bylaws of Avista Corp. was changed to allow special
meetings of the Board of Directors to be called by the Lead Director as well as by the Chairman, President, Executive
Vice President or any thee directors. Section 4 of Aricle il, which previously stated: "Special meetings of the Board of
Directors may be called by or at the request of the Chairman of the Board, the President, the Executive Vice President or
any thee (3) directors. Notice of any special meeting shall be given to each director at least two (2) days in advance of
the meeting." has been amended to state: "Special meetings of the Board of Directors may be called by or at the request
of the Chairan of the Board, the President, the Executive Vice President, the Lead Director or any three (3) directors.
Notice of any special meeting shall be given to each director at least two (2) days in advance of the meeting."
8. Average anual wage increases were 2.6% for non-exempt employees effective March 1,2007. Average
annual wage increases were 3.5% for exempt employees effective March 1,2007. Average anual wage increases were
4.5% for officers effective March 1,2007. Certain bargaiing unit employees received increases ranging from 2.0% to
,ø.5% effective in March and April 2007.
9. Reference is made to Note 24 of the Notes to Financial Statements, page 123 ofthis Report.
10. None
11. Reserved
12. See page 123 of this Report.
13. Gar G. Ely, Chairan of the Board and Chief Executive Officer of Avista Corp., retired from the Company and
the board, effective December 31, 2007. The Company's board of directors appointed Scott L. Morrs, President and
Chief Operating Offcer of A vista Corp., to sere as a director on the board effective Februar 2007. The Company's
board of directors also elected Mr. Morrs to the positions of Chaian of the Board and Chief Executive Officer of
Avista Corp., effective Janua 1,2008.
In Januar 2007, James M. Kensok was appointed Vice President and Chief Information Officer.
Ronald R. Peterson, Vice President of Avista Corp. and Vice President of Energy Resources and Optimzation of
A vista Utilties retired from the Company on August 1, 2007. Denns Venillon, President and Chief Operating Offcer
of Avista Energy, was named Vice President of Energy Resources and Optimzation of Avista Utilties effective upon the
closing ofthe sale of the contracts and ongoing operations of Avista Energy to Coral Energy (June 30, 2007).
On May 11, 2007, the Board of Directors of Avista Corp. appointed An Wilson as Vice President and Treasurer
and Chrsty Burmeister-Smith as Vice President, Controller and Pricipal Accounting Officer. An Wilson previously
was Vice President and Controller of the Company since Januar 2006 and Vice President and Controller of Avista
I FERC FORM NO.2 (ED. 12-96) Page 109.1
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 041172008 2007/04
IMPORTANT CHANGES DURING THE OUARTERIEAR (Continued)
Energy, Inc., from Januar 2000 to Januar 2006. Chrsty Bureister-Smith previously was Vice President and Treasurer
of the Company since Januar 2006 and Vice President and Controller ofthe Company from June 1999 to Januar 2006.
On Februar 15,2008, An Wilson was appointed Vice President of Finance and Treasurer.
On Februar 15, 2008, the Board of Directors appointed Brian W. Dunam to serve as a director on the board
effective March 1, 2008. Mr. Duam is the president and chief executive offcer of Nortwest Pipe Company, which
manufactures welded steel water transmission lines. Mr. Duam wil stand for election to the board at the anual
meeting of shareholders on May 8, 2008.
On Februar 15, 2008, Lura J. Powell provided notification to Avista Corp. that she wil not stad for re-election
to the board when her term expires in May 2008 to focus on her professional commitments in technology and healthcare.
14. Proprietar capital is not less than 30 percent.
..
I FERC FORM NO.2 (ED. 12-96) Page 109.2
Name of Respondent This Report Is:Date of Report Year/Period of Report
Avista Corporation (1 )(X An Original (Mo,Da, Yr)
(2)0 A Resubmission 041172008 End of 2007/Q4
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line Current Year Prior Year
No.Ref.End of QuarterlYear End Balance
Title of Accunt Page No.Balance 12/31
(a)(b)(c)(d)
1 UTILITY PLAT
2 Utilty Plant (101-106, 114)200-201 3,131,916,272 2,938,456,395
3 Construction Work in Progress (107)200-201 75,679,838 89,177,799
4 TOTAL Utilty Plant (Enter Total of lines 2 and 3)3,207,596,110 3,027,634,194
5 (Less) Accum. Provo for Oepr. Amort. Depl. (108, 110, 111, 115)200-201 1,090,037,407 1,024,356,307
6 Net Utilty Plant (Enter Total of line 4 less 5)2,117,558,703 2,003,277,887
7 Nuclear Fuel in Process of Ref., Conv.,Enrich., and Fab. (120.1)202-203 0 0
8 Nuclear Fuel Materials and Assemblies-Stock Account (120.2)0 0
9 Nuclear Fuel Assemblies in Reactor (120.3)0 0
10 Spent Nuclear Fuel (120.4)0 0
11 Nuclear Fuel Under Capital Leases (120.6)0 0
12 (Less) Accum. Provo for Amort. of Nucl. Fuel Assemblies (120.5)202-203 0 0
13 Net Nuclear Fuel (Enter Total oflines 7-11 less 12)0 0
14 Net Utilty Plant (Enter Total of lines 6 and 13)2,117,558,703 2,003,277,887
15 Utilty Plant Adjustments (116)122 0 0
16 Gas Stored Underground - Noncurrent (117)0 0
17 OTHER PROPERTY AND INVESTMENTS
18 Nonutilty Properl (121)4,670,595 4,670,391
19 (Less) Aceum. Provo for Depr. and Amort. (122)897,192 878,680
20 Investments in Associated Companies (123)13,903,000 13,903,000
21 Investment in Subsidiary Companies (123.1)224-225 71,371,272 247,190,561
22 (For Cost of Accunt 123.1, See Footnote Page 224, line 42)
23 Noncurrent Portion of Allowances 228-229 0 0
24 Other Investments (124)28,691,550 31,166,335
25 Sinking Funds (125)0 0
26 Depreciation Fund (126)0 0
27 Amortzation Fund - Federal (127)0 0
28 Other Special Funds (128)15,878,558 13,360,954
29 Special Funds (Non Major Only) (129)0 0
30 Long-Term Portion of Derivative Assets (175)55,312,881 25,574,531
31 Long-Term Portion of Oerivative Assets - Hedges (176)0 0
32 TOTAL Other Properl and Investments (Lines 18-21 and 23-31)188,930,664 334,987,092
33 CURRENT AND ACCRUED ASSETS
34 Cash and Working Funds (Non-major Only) (130)0 0
35 Cash (131)5,264,11!J -3,021,873
36 Special Deposits (132-134)5,668,267 4,042,325
37 Working Fund (135)679,537 684,345
38 Temporary Cash Investments (136)2,608,103 667,445
39 Notes Receivable (141)0 0
40 Customer Accounts Receivable (142)87,238,080 89,325,500
41 Other Accounts Receivable (143)9,920,307 9,714,601
42 (Less) Accum. Provo for Uncollectble Acct.-Credit (144)2,965,671:2,730,352
43 Notes Receivable from Associated Companies (145)0 7,198,865
44 Accounts Receivable from Assoc. Companies (146)502,535 1,465,217
45 Fuel Stock (151)227 2,213,923 2,121,931
46 Fuel Stock Expenses Undistrbuted (152)227 0 0
47 Residuals (Elec) and Extracted Products (153)227 0 0
48 Plant Materials and Operating Supplies (154)227 17,365,306 14,019,070
49 Merchandise (155)227 0 0
50 Other Materials and Supplies (156)227 0 0
51 Nuclear Materials Held for Sale (157)202-203/227 0 0
52 Allowances (158.1 and 158.2)228-229 (0
FERC FORM NO.2 (REV. 12-03) Page 110
Name of Respondent This Report Is:Date of Report Year/Period of Report
Avista Corporation (1 )iz An Original (Mo,Da, Yr)
(2)0 A Resubmission 04/172008 End of 2007/04
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITSlContinued)
Line Current Year Prior Year
No.Ref.End of OuarterlYear End Balance
Title of Accunt Page No.Balance 12/31
(a)(b)(c)(d)
53 (Less) Noncurrent Portion of Allowances 0 0
54 Stores Expense Undistributed (163)227 0 0
55 Gas Stored Underground - Current (164.1 )13,414,238 11,905,320
56 Liquefied Natural Gas Stored and Held for Processing (164.2-164.3)0 1,006,819
57 Prepayments (165)6,438,702 6,467,948
58 Advances for Gas (166-167)0 0
59 Interest and Dividends Receivable (171)0 4,259
60 Rents Receivable (172)509,924 327,042
61 Accrued Utilty Revenues (173)0 0
62 Miscellaneous Current and Accrued Assets (174)6,153,636 162,032
63 Derivative Instrment Assets (175)67,390,448 36,402,843
64 (Less) Long-Term Portion of Derivative Instrument Assets (175)55,312,881 25,574,531
65 Derivative Instrument Assets - Hedges (176)0 0
66 (Less) Long-Term Portion of Derivative Instrment Assets - Hedges (176 0 0
67 Total Current and Accued Assets (Lines 34 through 66)167,088,568 154,188,806
68 DEFERRED DEBITS
69 Unamortized Debt Expenses (181)11,576,174 17,931,388
70 Extraordinary Propert Losses (182.1)230 0 0
71 Unrecovered Plant and Regulatory Study Costs (182.2)230 0 0
72 Other Regulatory Assets (182.3)232 281,620,776 323,816,436
73 Prelim. Survey and Investigation Charges (Electric) (183)234,518 8,645,616
74 Preliminary Natural Gas Survey and Investigation Charges 183.1)0 0
75 Other Preliminary Survey and Investigation Charges (183.2)0 0
76 Clearing Accounts (184)0 8,046
77 Temporary Facilties (185)0 0
78 Miscellaneous Deferred Debits (186)233 40,642,265 31,297,127
79 Def. Losses from Disposition of Utility Pit. (187)0 0
80 Research, Devel. and Demonstrtion Expend. (188)352-353 0 0
81 Unamortized Loss on Reaquired Debt (189)20,965,705 28,622,766
82 Accumulated Deferred Income Taxes (190)234 90,823,103 55,602,315
83 Unrecovered Purchased Gas Costs (191)2,374,110 18,275,674
84 Total Deferred Debits (lines 69 through 83)44,236,651 484,199,368
85 TOTAL ASSETS (lines 14-16, 32, 67, and 84)2,921,814,58€2,976,653,153
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 )(i An Original (mo, da, yr)
(2)0 A Rresubmission 04/172008 end of 2007/Q4
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line Current Year PriorYear
Ref.End of QuarterlYear End Balance
No.Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
1 PROPRIETARY CAPITAL
2 Common Stock Issued (201)250-251 727,945,794 722,039,406
3 Preferred Stock Issued (204)250-251 0 0
4 Capital Stock Subscrbed (202, 205)252 0 0
5 Stock Liabilty for Conversion (203, 206)252 0 0
6 Premium on Capital Stock (207)252 0 0
7 Other Paid-In Capital (208-211)253 2,281,86l 0
8 Installments Received on Capital Stock (212)252 0 0
9 (Less) Discount on Capital Stock (213)254 0 0
10 (Less) Capital Stock Expense (214)254 3,294,916 6,419,099
11 Retained Eamings (215, 215.1, 216)118-119 221,313,566 168,082,338
12 Unappropriated Undistrbuted Subsidiary Eamings (216.1)118-119 -14,672,673 51,109,032
13 (Less) Reaquired Capital Stock (217)250-251 0 0
14 Noncorporate Proprietorship (Non-major only) (218)0 0
15 'Accumulated Other Comprehensive Income (219)122(a)(b)-19,607,48€-17,965,585
16 Total Proprietary Capital (lines 2 through 15)913,966,153 916,846,092
17 LONG- TERM DEBT
18 Bonds (221)256-257 671,733,175 685,196,931
19 (Less) Reaquired Bonds (222)256-257 0 0
20 Advances from Associated Companies (223)256-257 114,603,000 115,203,000
21 Other Long-Term Debt (224)256-257 273,010,231 311,600,402
22 Unamortized Premium on Long-Term Debt (225)248,733 257,617
23 (Less) Unamortzed Discount on Long-Term Debt-Debit (226)1,328,472 1,709,479
24 Total Long- Term Debt (lines 18 through 23)1,058,266,661 1,110,548,471
25 OTHER NONCURRENT LIABILITIES
26 Obligations Under Capital Leases - Noncurrent (227)75,20€394,921
27 Accumulated Provision for Properl Insurance (228.1)0 0
28 Accumulated Provision for Injuries and Damages (228.2)344,000 954,409
29 Accumulated Provision for Pensions and Benefits (228.3)90,554,881 102,083,620
30 Accumulated Miscellaneous Operating Provisions (228.4)1,826,000 0
31 Accumulated Provision for Rate Refunds (229)0 0
32 Long-Term Portion of Derivative Instrument Liabilties 1,899,098 10,174,378
33 Long-Term Portion of Derivative Instrument Liabilties - Hedges 10,501,880 5,144,457
34 Asset Retirement Obligations (230)3,990,011 4,809,738
35 Total Other Noncurrent Liabilities (lines 26 through 34)109,191,07€123,561,523
36 CURRENT AND ACCRUED LIABILITIES
37 Notes Payable (231)0 4,000,000
38 Accunts Payable (232)114,760,4ge 112,367,144
39 Notes Payable to Associated Companies (233)2,182,637 0
40 Accunts Payable to Associated Companies (234)600,647 980,544
41 Customer Deposits (235)6,331,722 6,463,634
42 Taxes Accrued (236)262-263 -4,717,80e -4,887,161
43 Interest Accrued (237)12,577,801 11,594,861
44 Dividends Declared (238)0 0
45 Matured Long-Term Debt (239)0 0
FERC FORM NO.2 (rev. 12-03)Page 112
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1 )IX An Original (mo, da, yr)
(2) 0 A Rresubmission 041172008 end of 2007/Q4
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDIT(Sntinued)
Line Current Year Prior Year
No.Ref.End of QuarterlY ear End Balance
Title of Account Page No.Balance 12/31
(a)(b)(c)(d)
46 Matured Interest (240)0 0
47 Tax Collections Payable (241)252 2,651
48 Miscellaneous Current and Accred Liabilities (242)41,016,25A 63,245,923
49 Obligations Under Capital Leases-Current (243)295,029 281,894
50 Derivative Instrument Liabilties (244)21,148,085 83,652,834
51 (Less) Long-Term Portion of Derivative Instrument Liabilties 1,899,09f 10,174,378
52 Derivative Instrment Liabilties - Hedges (245)10,501,880 5,144,457
53 (Less) Long-Term Porton of Derivative Instrument Liabilties-Hedges 10,501,880 5,144,457
54 Total Current and Acced Liabilties (lines 37 through 53)192,296,01~267,527,946
55 DEFERRED CREDITS
56 Customer Advances for Construction (252)1,265,933 1,087,069
57 Accumulated Deferred Investment Tax Credits (255)266-267 423,03€472,344
58 Deferred Gains from Disposition of Utility Plant (256)C 0
59 Other Deferred Credits (253)269 18,072,332 17,616,522
60.Other Regulatory Liabilties (254)278 65,481,33~18,246,960
61 Unamortzed Gain on Reaquired Debt (257)3,528,19A 3,282,969
62 Accum. Deferred Income Taxes-Accel. Amort.(281)272-277 0 0
63 Accum. Deferred Income Taxes-Other Properl (282)320,049,323 305,474,214
64 Accum. Deferred Income Taxes-other (283)239,274,51'211,989,043
65 Total Deferred Credits (lines 56 through 64)648,094,671 558,169,121
66 TOTAL LIABILITIES AND STOCKHOLDER EQUITY (lines 16, 24, 35, 54 and 65)2,921,814,58 2,976,653,153
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 2007/Q4
(2) Fi A Resubmission 04/172008
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 electrc utilty function; in column (h) the quarter to date amounts for gas utility, and in 0) the
quarter to date amounts for other utilty functon for the current year quarter.
3. Report in column (g) the quarter to date amounts for electrc utility function; in column (i) the quarter to date amounts for gas utilty, 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 fourt quarter data in columns (e) and (f)
6. Report amounts for accunts 412 and 413, Revenues and Expenses frm Utility Plant Leased to Others, in another utility columnin a similar manner to
a utilty departent. 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 Utilty 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 accunts 404.1,404.2,404.3,407.1 and 407.2.
Line Total Total Current 3 Months Prior 3 Months
No.Current Year to Pnor Year to Ended Ended
(Ref.)Date Balance for Date Balance for Quarterl Only Quarterl Only
Title of Accunt Page No.QuartrNear QuarterNear No 4th Quarter No 4th Quarter
(a)(b)(c)(d)(e)(n
1 UTILITY OPERATING INCOME
2 Operating Revenues (400)300-301 1,321,662,326 1,319,860,703
3 Operating Expnses
4 Operation Expenses (401)320323 965,325,057 957,162,716
5 Maintenance Expenses (402)32023 45,512,n5 41,805,328
6 Depreciation Expnse (403)33337 81,802,514 n,637,l10
7 Depreciation Expnse for Asset Retirement Cost (403.1)33-337
8 Amort. & Dept of Utiit Plant (404-405)336-337 6,738,44 6,717,ln
9 Amort. of Utilit Plant Acq. Adj. (406)336.337 99,047 99,047
10 Amort Prort Losses, Unrecov Plant and Regulatory Study Costs (407)
11 Amort. of Conversion Exnses (407)
12 Regulatory Debit (407.3)2,979,998 1,637,368
13 (Less) Regulatory Credit (407.4)8,618,156 17,989,452
14 Taxes Other Than Income Taxes (408.1)262.263 72,443,295 69,881,930
15 Income Taxes. Federal (409.1)262.263 22,447,987 39,535,123
16 - Oter (409.1)262.263 520,211 1,155,970
17 Provision for Deferrd Income Taxes (410.1)234,272.2n 12,026,706 4,330,636
18 (Less) Provision for Deferred Income Taxes-Cr. (411.1)234,272.2n 4,122,957 11,112,169
19 InvestentTax Credit Adj. . Net (411.4)266 -49,308 -49,308
20 (Less) Gains frm Disp. of Utilit Plant (411.6)
21 Losss from Disp. of Utilit Plant (411.7)
22 (Less) Gains from Disposition of Allowances (411.8)
23 Losss frm Dispositon of Allowances (411.9)
24 Accretion Expnse (411.10)
25 TOTAL Utilit Operating Exnses (Enter Total of lines 4 thru 24)1,197,105,613 1,170,811,476
26 Net Util Oper Inc (Enter Tot line 2 less 25) Carr to Pg 117 ,line 27 124,556,713 149,049,227
FERC FORM NO. 213-Q (REV. 02-04)Page 114
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2008
STATEMENT OF INCOME FOR THE YEAR (Continued)
9. Use page 122 for importnt notes regarding the statement of income for any accunt 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 utilty's customers or which may result in material refund to the utilty 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 year's/quarter's figures are different from that reported in prior reports.
15. If the columns are insuffcient for reporting additional utilty departments, supply the appropriate accunt titles report the information in a footnote to
this schedule.
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/Q4
ELECTRIC UTILITY
Current Year to Date Previous Year to Date
(in dollars) (in dollars)(g) (h)
GAS UTILITY
Current Year to Date Previous Year to Date
(in dollars) (in dollars)(i) 0)
OTHER UTILITY
ate Previous Year to Date
(in dollars)
(I)
Line
No.
639,011,602
105,119,951
672,502,113
125,052,970
558,094,011
19,436,762
498,309,363
23,996,257
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
467,293,942 514,013,824 498,031,115 443,148,892
37,501,902 34,489,049 8,010,873 7,316,279
64,517,110 61,477,791 17,285,404 16,159,319
5,686,773 5,912,961 1,051,671 804,216
99,047 99,047
337,368 337,368 2,642,630 1,300,000
7,499,030 17,989,452 1,119,126
46,412,373 45,176,981 26,030,922 24,704,949
14,193,471 28,758,428 8,254,516 10,776,695
378,906 847,436 141,305 308,534
13,472,601 9,067,991 -1,445,895 -4,737,355
3,382,861 9,689,311 740,096 1,422,858
-49,308 -49,308
FERC FORM NO.2 (ED. 12-96)Page 115
Name of Respondent
Avista Corpration
~ - - ~ ---- ~--- -- --- --~
Line
No.
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04117/2008
STA EMENT OF INCOME FOR THE YEAR (continued)
TOTAL
Title of Accunt
(a)
(Ref.)
Page No.
(b)
Current Year
(c)
27 Net Utilty Operating Income (Carned forward from page 114)
28 Oter Income and Deductions
29 Other Income
30 Nonutlt Operating Income
31 Revenues From Merchandising, Jobbing and Contract Work (415)
32 (Less) Cost and Exp. of Merchandising, Job. & Contract Work (416)
33 Revenues From NonUlilit Operatins (417)
34 (Less) Expnses of Nonutlity Operations (417.1)
35 Nonoperating Rental Income (418)
36 Equit in Eamings of Subsidiary Companies (418.1)
37 Interest and Dividend Incme (419)
38 Allowance for Oter Funds Used During Constcton (419.1)
39 Misllaneous Nonoperating Incme (421)
40 Gain on Dispositn of Proert (421.1)
41 TOTAL Oter Income (Enter Total of lines 31 thru 40)
42 Oter Income Deductions
43 Loss on Dispositon of Proprt (421.2)
44 Miscellaneous Amortzation (425)
45 Donations (426.1)
46 Life Insurance (426.2)
47 Penaltes (426.3)
48 Exp. for Certin Civic, Politl & Related Actiites (426.4)
49 Oter Deductions (426.5)
50 TOTAL Other Income Deductions (Total of lines 43 thm 49)
51 Taxes Applic. to Oter Income and Deducions
52 Taxes Other Than Income Taxes (408.2)
53 Income Taxes-Federal (409.2)
54 Income Taxes-Oer (409.2)
55 Provision for Deferred Inc. Taxes (410.2
56 (Less) Provision lor Deferred Income Taxes-Cr. (411.2)
57 InvestmentTax Credit Adj.-Net (411.5)
58 (Less) Investment Tax Credits (420)
59 TOTAL Taxes on Otr Income and Deducons (Total of lines 52-58)
60 Net Oter Incme and Deductns (Total of lines 41, 50, 59)
61 Interest Charges
62 Interest on Long- Term Debt (427)
63 Amort. of Debt Disc. and Expnse (428)
64 Amortzation of Loss on Reaquired Debt (428.1)
65 (Less) Amort. of Premium on Debt-Gredit (429)
66 (Less) Amortzation of Gain on Reaquired Debt-Gredit (429.1)
67 Interest on Debt to Assoc. Companies (430)
68 Other Interest Exnse (431)
69 (Less) Allowanc for Borrowed Funds Used During Consction-Gr. (432)
70 Net Interest Charges (Total of lines 62 thm 69)
71 Income Before Extaordinary Items (Total of lines 27, 60 and 70)
72 Extraordinary Items
73 Exraordinary Incme (43)
74 (Less) Extraordinary Déducons (435)
75 Net Extordinary Items (Total of line 73 less line 74)
76 Income Taxes-Federal and Oter (409.3)
77 Extaordinary Items After Taxes (line 75 less line 76)
78 Net Incme (Total of line 71 and 77)
124,556,713
Year/Period of Report
End of 2007/04
Previous Year
d)
nor on s
Endd
Quarterl Only
No 4th Quartr
(I)
149,049,227
4,477,623 8,756,573
.18,512 .19,127
119 -4,595,749 16,839,461
7,743,889 11,267,952
4,736,330 2,429,542
257,380 237,712
3,645,715 21,998,967_~- ---~-~ - - ~ -- ---- ---~ -~-
340
34
2,289,978
1,110,572
622,859
2,557,490
37,60
1,097,891
3,799,017
11,515,407
138,153
1,120,288
1,368,086
1,972,456
5,500
1,052,120
1,059,980
6,716,583- -- - ~ --~_--_~-- ----- -- -- - --
262.263 251,464 153,385
262.263 149,939 584,900
262.263 -404,584 -912,325
234, 272-277 -257,145 1,874,146
234, 272-277 4,052,315 3,087,684
-4,312,641 -1,387,578
-3,557,051 16,669,962--------- - --~--_~- ~--_~--- ---- -
69,538,504 77,938,550
1,063,487 1,020,316
5,29,891 6,729,883
8,885 8,884
34 7,605,326 7,116,429
340 2,899,617 2,724,805
3,864,363 2,934,769
82,524,577 92,586,330
38,475,085 73,132,859- - - ---- - - - ~ - --- ---
262-263
38,475,085 73,132,859
FERC FORM NO. 21/3-0 (REV. 02-04)Page 117
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/04
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04117/2008
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 effct 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 ItemNo. ~)
UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1 BalanceBeginning of Period
2 Changes
3 Adjustments to Retained Eamings (Account 439)
4
5 Tax Benefit Received from 401(k) Dividend Reinvestment Plan
6 Dividends Received from Subsidiaries
7 Prior Period Adjustment for Benefit Plan Restatement
8 Stock Compensation Dividend Adjustment
9 TOTAL Credits to Retained Earnings (Accl. 439)
10
11 Stock Options Exercised
12 Preferred Series K Reclass
13 Debt Repurchase Adjustment
14
15 TOTAL Debits to Retained Eamings (Acct. 439)
16 Balance Transferred from Income (Account 433 less Accunt 418.1)
17 Appropriations of Retained Eamings (Accl. 436)
18
19
20
21
22 TOTAL Appropriations of Retained Eamings (Accl. 436)
23 Dividends Declared-Preferred Stock (Accunt 437)
24
25
26
27
28
29 TOTAL Dividends Declared-Preferred Stock (Acct. 437)
30 Dividends Declared-Common Stock (Account 438)
31
32
33
34
35
36 TOTAL Dividends Declared-Common Stock (Accl. 438)
37 Transfers from Acct 216.1, Unapprop. Undistrib. Subsidiary Earnings
38 Balance - End of Period (Total 1,9,15,16,22,29,36,37)
Contra Primary
ccunt Affected
(b)
Current
OuarterlYear
Year to Date
Balance
(c)
Previous
QuarterlYear
Year to Date
Balance
(d)
~ ~ ~ 1------~ ~..
-- ~~~~~- ~I~-----~---~ --~ ~~-~
---- ~ ~- r- -- -- -~ - - - -- --~-- - --~~ ---
- --~---- r ---- - ~ ~ -- - - ~-
-14,870 415,237
48,260,105 5,989,256
-2,471,138
15,913
45,790,010 6,40,493
160,637)
-1,334,004
-4,392,647
-5,726,651 160,637)
43,070,834 56,293,398
---~ ---I ----- - - -- - -
-- ~ - ~ - r - -- - - - - ----~ - - - -
-31,450,517 ( 27,924,168)
-31,450,517
1,547,552
219,765,445
27,924,168)
1,445,216
166,53,217
FERC FORM NO. 2/3- (REV. 02-04)Page 118
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2008,
STATEMENT OF RETAINED EARNINGS
1. Do not report Lines 49-53 on the quarterly version.
2. Report all changes in appropriated retained eamings, 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 eamings 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 eamings. 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.
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/Q4
Line ItemNo. (a)
APPROPRIATED RETAINED EARNINGS (Accunt 215)
39
40
41
42
43
44
45 TOTAL Appropriated Retained Earnings (Accunt 215)
APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
46 TOTAL Approp. Retained Eamings-Amort. Reserve, Federal (Acct. 215.1)
47 TOTAL Approp. Retained Eamings (Acct. 215, 215.1) (Total 45,46)
48 TOTAL Retained Eamings (Acct. 215, 215.1, 216) (Total 38, 47)(216.1)
UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account
Report only on an Annual Basis, no Quarterly
49 Balance-Beginning of Year (Debit or Credit)
50 Equity in Eamings for Year (Credit) (Accunt 418.1)
51 (Less) Dividends Recived (Debit)
52 Subsidiary Expense & Misc Subs Equity Comp
53 Balance-End of Year (Total lines 49 thru 52)
Current
QuarterNear
Year to Date
Balance
Previous
QuarterNear
Year to Date
Balance
1,548,121 1,54,121
-- ~ - -~_- ~ -~ I ,~ '--- -- -, -- "--- - -, ,1,548,121 1,548,121
,~- -- -~ -E -- --- -~ - - ,--- - - -_~_-
-~ ---~L-_~---_~ ,-'-- -----
1,548,121
221,313,566
1,548,121
168,082,338
51,109,032
-4,595,749
48,260,105
-12,925,851
-14,672,673
41,804,m
16,839,461
5,989,256
1,545,950)
51,109,032
FERC FORM NO. 21/3-Q (REV. 02-04)Page 119
Name of Respondent This~rtIS:Date of Report Year/Period of Report
Avista Corpration (1) An Original (Mo, Da, Yr)End of 2007/04
(2) Fi A Resubmission 04/17/2008
STATEMENT OF CASH FLOWS
(1) Codes to be use:(a) Net Proceds or Payments;(b)Bonds, debentures and other lon-term debt; (c) Include commercial paper; and (d) Ident separately such items as
investments, fixed assets, intangibles, etc.
(2) Information about noncash investing and financing activities must be provided in th Notes to the Financial statements. Also provide a reconcliation betwn "Cash and Cash
Equivalents at End of Period" with related amounts on the Baiance Shet.
(3) Operating Activities - Other: Include gains and losses pertining to operating activities only. Gains and losses pertining to investing and financing activities should be reported
In those activities. Show In th Notes to the Financials th amounts of Interest paid (net of amount capitalized) and income taes paid.
(4) Investing Actvites: Include at Other (line 31) net cash outow to acquire other companies. Provide a recncilation of assets acquired with liabilities assumed in the Notes to
th Financial Statements. Do not include on this statement the dollar amount of leases capitalize per the USofA General Instructin 20; instead provide a reconciliation of the
dollar amount of leases capitlized 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)
1 Net Cash Flow from Operating Activities:
2 Net Income (Line 78(c) on page 117)38,475,085 73,132,859
3 Noncash Charges (Credits) to Income:
4 Depreciation and Depletion 88,540,958 84,354,287
5 Amortization of deferred power and natural gas costs 19,629,891 56,326,822
6 Amortization of debt expense 6,345,495 7,741,314
7 Amortization of investment in exchange power 2,450,030 2,450,031
8 Deferred Income Taxes (Net)4,003,423 -16,465,046
9 Investment Tax Credit Adjustment (Net)-49,308 -49,308
10 Net (Increase) Decrease in Receivables 1,881,714 11,519,009
11 Net (Increase) Decrease in Inventory -3,940,327 203,045
12 Net (Increase) Decease in Allowances Inventory
13 Net Increase (Decrease) in Payables and Accrued Expenses -28,529,359 -8,118,183
14 Net (Increase) Decrease in Other Regulatory Assets -8,395,908 -6,061,549
15 Net Increase (Decrease) in Other Regulatory Liabilities 1,888,830 -1,175,736
16 (Less) Allowance for Other Funds Used During Constrcton 4,736,330 2,429,542
17 (Less) Undistributed Eamings from Subsidiary Companies -4,595,749 16,839,461
18 Other (provide details in footnote):696,571 -2,476,259
19 Write-down of asset 2,289,978
20 Change in other noncurrent assets and liabilties -2,782,552 -8,672,181
21 Net change in recivables allowance 235,324 -497,564
22 Net Cash Provided by (Used in) Operating Actvities (Total 2 thru 21)122,599,264 172,942,538
23
24 Cash Flows from Investment Activities:
25 Construction and Acquisition of Plant (including land):
26 Gross Additions to Utility Plant (less nuclear fuel)-196,772,585 -156,952,633
27 Gross Additions to Nuclear Fuel
28 Gross Additions to Common Utiity Plant
29 Gross Additions to Nonutilty Plant
30 (Less) Allowance for Other Funds Used During Construction
31 Other (provide details in footnote):
32
33
34 Cash Outfows for Plant (Total of lines 26 thru 33)-196,772,585 -156,952,633
35
36 Acquisition of Other Noncurrent Assets (d)
37 Proceeds from Disposal of Noncurrent Assets (d)657,770
38
39 Investments in and Advances to Assoc. and Subsidiary Companies
40 Contributions and Advances from Assoc. and Subsidiary Companies 170,364,287 36,646,304
41 Disposition of Investments in (and Advances to)
42 Associated and Subsidiary Companies
43
44 Purchase of Investment Securities (a)
45 Proceeds from Sales of Investment Securities (a)
FERC FORM NO.2 (ED. 12-96)Page 120
Name of Respondent
Avista Corporation
This ~ort Is:
(1) ~ An Original
(2) A Resubmission
STATEMENT OF CASH FLOWS
Date of Report
(Mo, Da, Yr)
04117/2008
Year/Period of Report
End of 2007/Q4
(1) Codes to be used:(a) Net Procds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identi 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 reconcilation betwen "Cash and Cash
Equivalents at End of Penod" wi related amounts on the Balance Sheet
(3) Operating Activities - Other: Include gains and losses pertining to operating activities only. Gains and losses pertining 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 Oter (line 31) net cash outow to acquire other companies. Provide a reconcilation of assets acquired wih 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 th
dollar amount of leases capitalize with th plant cost
Line
No.
Description (See Instruction NO.1 for Explanation of Codes)
(a)
Current Year to Date
QuarterlYear
(b)
Previous Year to Date
QuarterlY ear
(c)
46 Loans Made or Purchased
47 Collections on Loans
48
49 Net (Increase) Decrease in Receivables
50 Net (Increase) Decrease in Inventory
51 Net (Increase) Decrease in Allowances Held for Speculation
52 Net Increase (Decrease) in Payables and Accrued Expenses
53 Other (provide details in footnote):
54 Changes in other propert and investments
55 Proceeds from sale of utility properl claim
56 Net Cash Provided by (Used in) Investing Activities
57 Total of lines 34 thru 55)
58
59 Cash Flows from Financing Activities:
60 Proceeds from Issuance of:
61 Long-Term Debt (b)
62 Preferred Stock
63 Common Stock
64 Other (provide details in footnote):
65
66 Net Increase in Short-Term Debt (c)
67 Other (provide details in footnote):
68
69
70 Cash Provided by Outside Sources (Total 61 thru 69)
71
72 Payments for Retirement of:
73 Long-term Debt (b)
74 Preferred Stock
75 Common Stock
76 Premiums paid for the redemption of long-term debt
77 Long-term debt and short-term borrowing issuance costs
78 Net Decrease in Short-Term Debt (c)
79 Cash paid in interest rate swap agreement
80 Dividends on Preferred Stock
81 Dividends on Common Stock
82 Net Cash Provided by (Used in) Financing Activities
83 (Total oflines 70 thru 81)
84
85 Net Increase (Decrease) in Cash and Cash Equivalents
86 (Total oflines 22,57 and 83)
87
88 Cash and Cash Equivalents at Beginning of Period
89
90 Cash and Cash Equivalents at End of period
17,967
-2,942,625
15,263
-763,324
5,483,780
4,977,331
4,977,331
149,778,000
88,393,784
238,171,784
-26,156,580
-26,250,000
- - - -- -r -- ---
-197,231,550
-1,750,000
-164,700
-4,000,000
-31,450,517
8,551,759 -1,670,083
-425,996
-5,435,618
-59,000,000
-3,738,000
-27,927,206
FERC FORM NO.2 (ED. 12-96)Page 121
Name of Respondent
Avista Corporation
Date of Report Year/Period of Report
End of 2007/Q4
This Report Is:
(1) ~ An Original
(2) D 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 accunt thereof. Classify the notes accrding to each basic statement,
providing a subheading for each statement except where a note is applicable to more than one sttement.
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 utilty. Give also a brief explanation of any dividends in arrears
on cumulative preferred stock.
3. For Accunt 116, Utilty 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
restrctions.
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 suffcient 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 signifcant 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 fumish the data required by the above instructions, such notes may be included herein.
04/17/2008
PAGE 122 INTENTIONALLY LEFT BLANK
SEE PAGE 123 FOR REQUIRED INFORMATION.
FERC FORM NO.2 (ED. 12-96)Page 122
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FIANCIA STATEMENTS
NOTE 1. SUMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corporation (Avista Corp. or the Company) is an energy company engaged in the generation, trnsmission and distrbution of
energy as well as other energy-related businesses. Avista Corp. generates, tranmits and distrbutes electrcity in par of eastern
Washigton and nortern Idaho. In addition, Avista Corp. has electrc generatig facilties in western Montaa and nortern Oregon.
A vista Corp. also provides natual gas distrbution servce in par of eastern Washigton and nortern Idaho, as well as pars of
norteast and southwest Oregon. Avista Capital, Inc. (Avista Capital), a wholly owned subsidiary of Avista Corp., is the parent
company of all of the subsidiar companes in the non-utility business segments including A vista Energy, Inc. (A vista Energy) and
Advantage IQ, Inc. (Advantage IQ). Avista Energy was an electrcity and natual gas maketig, trading and resource maagement
business. On June 30, 2007, A vista Energy completed the sale of substantially all of its contracts and ongoing operations. Advantage
IQ is a provider of facility inormtion and cost maagement servces for multi-site customers thoughout Nort Amerca.
The Company's operations are exposed to risks including, but not limted to:
. streamflow and weather conditions that impact hydroelectrc generation, utilty operations and customer demd,
. market prices and supply of wholesale energy, which the Company purchaes and sells, including power, fuel and natual gas,
. regulatory disallowance of the recovery of power and natual gas costs, operatig costs and capita investments,
. the effects of changes in legislative and governental regulations, including restrctions on emissions from generatig plants
and requirements for the acquisition of new resources,
. changes in regulatory requirements,
. availabilty of generation facilities,
. competition, and
. availabilty of fuding at a reasonable cost.
Also, like other utilities, the Company's facilties and operations are exposed to terrorism risks or other malicious acts. In addition, the
energy business exposes the Company to the ficial, liquidity, credit and price risks associated with wholesale purchases and sales of
energy coniodities.
Basis of Reportng
The fiancial statements include the assets, liabilties, revenues and expenses of the Company. As requied by the Federal Energy
Regulatory Commssion (FERC), the Company accounts for its investment in majority-owned subsidiares on the equity method rather
than consolidatig the assets, liabilties, revenues, and expenses of these subsidiares, as required by accountig priciples generally
accepted in the United States of America. The accompanyig fincial statements include the Company's proportonate share of utility
plant and related operations resulting from its interests in jointly owned plants. In addition, under the requirements of the FERC, there
are differences from accountig priciples generally accepted in the United States of America in the presentation of (I) curent
portions oflong-term debt, short-term borrowigs, and preferred stock, (2) assets and liabilities for cost of removal of assets, (3) assets
held for sale, (4) regulatory assets and liabilities, (5) retained eargs, and (6) comprehensive income.
Use of Estimates
The preparation of the fiancial statements in conformty with accountig priciples generally accepted in the United States of
America requires mangement to make estimates and assumptions that affect amounts reported in the ficial statements. Signficant
estites include:
. determg the market value of energy coniodity derivative assets and liabilities,
. pension and other postretirement benefit plan obligations,
. contigent liabilties,
. recoverabilty of regulatory assets,
. stock-based compensation, and
. unbiled revenues.
Chages in these estiates and assumptions are considered reasonably possible and may have a material effect on the fiancial
statements and thus actual results could differ from the amounts reportd and disclosed herein.
I FERC FORM NO.2 (ED. 12-88)Page 123.1
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation I (2) A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
System of Accounts
The accountig records of the Company's utility operations are matained in accordance with the unform system of accounts
prescribed by the FERC and adopted by the state reguatory commssions in Washigton, Idao, Monta and Oregon.
Regulation
The Company is subject to state regulation in Washigton, Idaho, Montaa and Oregon. The Company is also subject to federal
regulation by the FERC.
Operating Revenues
Revenues related to the sale of energy are generally recorded when servce is rendered or energy is delivered to customers. The
determtion of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis
thoughout 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 estited and the correspondig unbiled revenue is estiated and recorded. Accounts receivable includes unbiled energy
revenues of$16.1 milion (net of$S7.2 millon ofunbiled receivables sold) as of December 31,2007 and $21.7 millon (net of$S1.6
millon of unbiled receivables sold) as of December 31, 2006. See Note 5 for information related to the sale of accounts receivable.
Advertsing Expenses
The Company expenses advertsing costs as incured. Advertising expenses were not a material porton of the Company's operatig
expenses in 2007,2006 and 2005.
Taxes Other Than Income Taxes
Taxes other th income taes include state excise taes, city occupational and franchise taes, real and personal propert taes and
certain other taes not based on net income. These taes are generally based on revenues or the value of propert. Utility related taes
collected from customers (prily state excise taes and city utility taes) are recorded as operatig revenue and expense and totaled
$51.0 million in 2007, $48.3 million in 2006 and $43.1 millon in 2005.
Income Taxes
The Company accounts for income taes under Statement of Fincial Accountig Stadards (SFAS) No. 109, "Accountig for
Income Taxes." Under SFAS No. 109, a deferred ta asset or liabilty is determed based on the enacted ta rates that will be in
effect when the differences between the ficial stateent carg amounts and ta basis of existig assets and liabilties are
expected to be reported in the Company's consolidated income ta retus. The deferred ta expense for the period is equal to the net
change in the deferred tax asset and liabilty accounts from the begig to the end of the period. The effect on deferred taes of a
change in ta rates is recognzed in income in the period that includes the enactment date. Deferred ta liabilities and regulatory assets
are established for tax benefits flowed though to customers as prescribed by the respective regulatory commssions.
Stock-Based Compensation
Prior to Januar 1,2006, the Company followed the disclosure only proviions of SF AS No. 123, "Accountig for Stock-Based
Compensation." Accordigly, employee stock options were accounted for under Accountig Priciple Board Opinon (APB) No. 25,
"Accountig for Stock Issued to Employees." Stock options were granted at exercise prices not less th the fair value of common
stock on the date of grt. A vista Corp. ha not granted any stock options since 2003. Under APB No. 25, no compensation expense
was recognzed pursuant to the Company's stock option plan. However, the Company recogned compenstion expense related to
performce-based shae awards. The Company adopted SFAS No. 123R, "Share-Based Payment," on Janua 1, 2006, which
resulted in changes to stock compensation expene recogntion. See Note 23 for fuer inormtion. The Company adopted SF AS
No. l23R using the modified prospective method and, accordigly, the fiancial statements for prior periods presented were not
restated to reflect the fair value method of recognzing compensation expense relatig to share-based payments.
I FERC FORM NO.2 (ED. 12-88)Page 123.2
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
If compensation expense for the Company's stock-based employee compensation plans were determed consistent with SF AS No.
123, net income and eargs per common shae would be the followig pro form amounts for the year ended December 31, 2005
(prior to the adoption of SF AS No. 123R):
2005
Net income (dollars in thousands):
As reported
Add: Total stock-based employee compensation expense included in net income, net of ta
Deduct: Total stock-based employee compensation expense determed under the fair
value method for all awards, net of ta
Pro forma
Basic and diluted eargs per common shae:
Basic as reportd
Diluted as reported
Basic pro forma
Diluted pro forma
$44,988
2,211!£
$44,288
$0.93
$0.92
$0.91
$0.90
Earnings Per Common Share
Basic eargs per common shae is computed by dividing income available for common stock by the weighted average number of
common shares outstanding for the period. Diluted earngs per common share is calculated by dividig income available for common
stock by diluted weighted average common shaes outstading durg the period, including common stock equivalent shaes
outstadig using the treasur stock method, uness such shares are anti-dilutive. Common stock equivalent shaes include shaes
issuable upon exercise of stock options and contigent stock awards. See Note 22 for earngs per common shae calculations.
Cash and Cash Equivalents
For the puroses of the Statements of Cash Flows, the Company considers all temporar investments with a matuty of thee month or
less when purchased to be cash equivalents. Cash and cash equivalents include cash deposits from counterpares. See Note 7 for
fuer informtion related to cash deposits from counterparies.
Allowance for Doubtfl Accounts
The Company maintas an allowance for doubtful accounts to provide for estiated and potential losses on accounts receivable. The
Company determes the allowance for utility and other customer accounts receivable based on historical wrte-offs as compared to
accounts receivable and operatig revenues. Additionally, the Company establishes specific allowaces for certin individua
accounts. The followig table presents the activity in the allowance for doubtful accounts durg the years ended December 31
(dollars in thousands):
Allowance as of the beging of the year
Additions expensed durg the year
Net deductions
Allowance as of the end of the year
2007
$2,730
3,078
(2,842)~
2006
$3,228
2,888
(3.386)~
2005
$2,810
2,752
(2.334)am
Materials and Supplies, Fuel Stock and Natural Gas Stored
Inventories of materials and supplies, fuel stock and natual gas stored are recorded at the lower of cost or market, prily using the
average cost method.
Utility Plant in Service
The cost of additions to utilty plant in servce, includig an allowace for fuds used durg constrction and replacements of unts of
propert and improvements, is capitaized. Costs of depreciable unts of propert retied plus costs of removal less salvage are charged
to accumulated depreciation.
Allowance for Funds Used During Constructin
The Allowance for Funds Used Durg Constrction (AFUDC) represents the cost of both the debt and equity fuds used to fice
utility plant additions durg the constrction period. In accordace with the unform system of accounts prescribed by regulatory
authorities, AFUDC is capitalized as a par of the cost of utility plant and the debt related porton is credited curently agait total
FERC FORM NO, 2 (ED. 12-88)Page 123.3
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
interest expense in the Statements ofIncome. The Company generally is permttd, under established regulatory rate practices, to
recover the capitalized AFC, and a fair retu thereon, though its inclusion in rate base and the provision for depreciation aftr the
related utilty plant is placed in servce. 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 9.11 percent in 2007 and 2006 and 9.72 percent for 2005. The
Company's AFC rates do not exceed the maimum allowable rates as determed in accordace with the requirements of reguatory
authorities.
Depreciation
For utility operations, depreciation expense is estiated by a method of depreciation accounting utilizing unt rates for generation
plants and composite rates for other utility plant. Such rates are designed to provide for retiements of properties at the expiration of
their servce lives. The rates for hydroelectrc plants include anuity and interest components, in which the interest component is 9
percent. For utility operations, the ratio of depreciation provisions to average depreciable propert was 2.89 percent in 2007,2.89
percent in 2006 and 2.93 percent in 2005.
The average servce lives for the followig broad categories of utility propert are:
. electrc therml production - 28 year,
. hydroelectrc production - 77 years,
. electrc tranmission - 45 years,
. electrc distrbution - 48 years, and
. natual gas distrbution propert - 37 year.
Regulatory Deferred Charges and Credits
The Company prepares its ficial statements in accordance with the provisions of SF AS No. 71, "Accountig for the Effects of
Certin Types of Regulation." The Company prepares its fiancial statements in accordance with SF AS No. 71 because:
. rates for regulated servces are established by or subject to approval by independent thd-par regulators,
. the reguated rates are designed to recover the cost of providing the regulated servces, and
. in view of demad for the reguated servces 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 costs.
SF AS No. 71 requies the Company to reflect the impact of reguatory decisions in its fiancial statements. SF AS No. 71 requires that
certin costs and/or obligations (such as incured power and natual gas costs not curently recovered though rates, but expected to be
recovered in the futue) are reflected as deferred chages or credits on the Balance Sheets. These costs and/or obligations are not
reflected in the statement of income until the period durg which matchig revenues are recognzed.
If at some point in the futue the Company determes tht it no longer meets the criteria for contiued application of SF AS No. 71 for
all or a portion of its regulated operations, the Company could be:
. requied to wrte off its regulatory assets, and
. precluded from the futue deferral of costs not recovered though rates at the tie such costs are incured, even if the
Company expected to recover such costs in the futue.
The Company's priar regulatory assets include:
. power and natual gas deferrals,
. investment in exchange power,
. regulatory asset for deferred income taes,
. unamortzed debt expene,
. assets offettg net utility energy commodity derivative liabilties (see Note 6 for fuer inormtion),
. expenditues for demand side mangement program,
. expenditues for conservation progr, and
. unded pensions and other postretiement benefits.
Regulatory liabilties include:
. liabilties created when the Centralia Power Plant was sold,
. liabilties offsettg net utilty energy commodity derivative assets (see Note 6 for fuer inormtion), and
. the gain on the general offce building sale/leaseback.
FERC FORM NO.2 (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 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Investment in Exchange Power-Net
The investment in exchange power represents the Company's previous investment in Washigton Public Power Supply System Project
3 (WN-3), a nuclear project that was termated prior to completion. Under a settlement agreement with the Bonneville Power
Admstration in 1985, Avista Corp. began receivig power in 1987, for a 32.5-year period, related to its investment in WN-3.
Though a settlement agreement with the Washigton Utilities and Transporttion Commssion (WUC) in the Washigton
jursdiction, Avista Corp. is amorting the recoverable porton of its investment in WN-3 (recorded as investment in exchange
power) over a 32.5 year period beging in 1987. For the Idao jursdiction, Avista Corp. fully amorted the recoverable porton of
its investment in exchange power.
Unamortized Debt Expense
Unaortzed debt expense includes debt issuace costs that are amorted over the life of the related debt, as well as premium paid to
repurchase debt, which are amorted over the remaig life of the original debt that was repurchased or, if new debt is issued in
connection with the repurchae, these costs are amorted over the life of the new debt. These costs are recovered though retail rates
as a component of interest expense. Pursuant to a settement agreement in its Washigton general rate case in 2007, Avista Corp.
agreed to wrte off$3.8 millon of unamortized debt repurchase costs. See Note 4 for fuer detals.
Power Cost Deferrals and Recovery Mechanisms
Deferred power supply costs are recorded as a deferred chage on the Balance Sheets for futue review and recovery though reta
rates. The power supply costs deferred include cert differences between actul power supply costs incured by Avista Corp. and the
costs included in base retail rates. Ths difference in power supply costs prily resuts from changes in:
. short-term wholesale maket prices,
. the level of hydroelectrc generation,
. the level of thermal generation (including changes in fuel prices), and
. retal loads.
In Washigton, the Energy Recovery Mechansm (ERM) allows Avista Corp. to increase or decrease electrc rates periodically with
WUC approval to reflect changes in power supply costs. The ERM is an accountig method used to track certin differences
between actul power supply costs and the amount included in base retail rates for Washigton customers. Avista Corp. accrues
interest on deferred power costs in the Washigton jursdiction at a rate, which is adjusted semi-anually, of7.8 percent as of
December 31,2007. Total deferred power costs for Washigtn customers were $58.5 millon as of December 31,2007 and $70.2
millon as of December 31,2006.
The intial amount of power supply costs in excess or below the level in retail rates, which the Company either incurs the cost of, or
receives the benefit from, is referred to as the deadband. The annual (calendar year) deadband amount is curently $4.0 millon. The
Company will incur the cost of, or receive the benefit from, 100 percent of this intial power supply cost varance. The Company
shaes anual power supply cost varances between $4.0 millon and $10.0 millon with its customers. As such, 50 percent of the
annual power supply cost varance in ths range is deferred for fìtue surcharge or rebate to customers and the Company incur the cost
of, or receives the benefit from, the remaing 50 percent. To the extent tht the anual power supply cost varance from the amount
included in base rates exceeds $ i 0.0 millon, 90 percent of the cost varance is deferred for futue surcharge or rebate. The Company
incurs the cost of, or receives the benefit from, the remaing 10 percent of the anual varance beyond $10.0 millon without affectig
curent or futue customer rates. The followig is a sum of the ERM:
Anua Power Supply
Cost Varabilty
+/- $0 - $4 millon
+/- between $4 millon - $10 millon
+/- excess over $ 1 0 millon
Deferred for Futue
Surchage or Rebate
to Cutomers
0%
50%
90%
Expense or Benefit
to the Company
100%
50%
10%
Avista Corp. has a power cost adjustment (PCA) mechasm in Idaho that allows it to modify electrc rates periodically with Idao
Public Utilities Commssion (IPUC) approvaL. Under the PCA mechansm, Avista Corp. defers 90 percent of the difference between
cert actul net power supply expenses and the amount included in base retail rates for its Idaho customers. In June 2007, the IPUC
approved continuation of the PCA mechansm with the anual rate adjustment provision. The October I rate adjustments recover or
rebate power costs deferred durg the preceding, July-June, twelve-month period. A vista Corp. accrues interest on deferred power
I FERC FORM NO.2 (ED. 12-88) Page 123.5
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) !S An Original (Mo, Da, Yr)
Avista Corporation I (2) A Resubmission 04/172008 2oo7/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
costs in the Idao jursdiction at a rate, whch is adjusted anually, of 5.0 percent as of December 31, 2007. Total deferred power
costs for Idaho customers were $21.2 millon as of December 31,2007 and $9.4 mion as of December 31,2006.
Natural Gas Cost Defe"als and Recovery Mechanisms
In the fall of each year, A vista Corp. fies a purchased gas cost adjustment (pGA) in all thee states it serves to adjust natual gas rates
for: I) estited commodity and pipeline tranporttion costs to serve natual gas customers for the comig year, and 2) the difference
between actual and estiated commodity and tranporttion costs for die prior year. These anual PGA filigs in Wasgton and
Idaho provide for the deferrl, and recovery or refud, of i 00 percent of the difference between actual and estiated commodity and
pipelie tranporttion costs for the prior year, subject to applicable regulatory review. The anual PGA filing in Oregon provides for
deferral, and recovery or refud, of 100 percent of the difference between actu and estiated pipeline transporttion costs and
commodity costs that are fied though hedge trctions. Commodity costs tht are not hedged for Oregon customers are subject to
a sharg mechasm whereby Avista Corp. defers, and recovers or refuds, 90 percent of the difference between these actual and
estiated costs. Total net deferred natual gas costs were $2.4 millon (an asset of$6.2 million and a liability of$3.8 milion) as of
December 31,2007 and $18.3 millon as of December 31,2006.
NOTE 2. NEW ACCOUNTIG STANARS
Effective January 1,2006, the Company adopted SFAS No. 123R, "Share-Based Payment," which supersedes APB No. 25 and SFAS
No. 123 and their related implementation guidance. Ths statement established revised standads for the accountig for tranactions in
which the Company exchanges its equity instrents for goods or servces with a priar focus on tranactions in which the Company
obtain employee servces in shae-based payment tranactions. The statement requires tht the compensation cost relatig to
share-based payment tranactions be recognzed in ficial statements based on the fair value of the equity or liability intrents
issued. The Company implemented the provisions of ths statement using the modified prospective mediod and, accordingly, fmancial
statements for prior periods presented were not restated to reflect the fair value method of recognzing compensation expense relatig
to shae-based payments. Under the modified prospective approach, SF AS 123R applied to all ofdie Company's unvested stock-based
payment awards beging Janua 1, 2006 and all prospective awads. In addition, SF AS No. 123R requies the Company to classify
ta benefits resultig from ta deductions in excess of stock-based compention expene recognzed as a ficing activity. Ths
amount is not signficant to cash flows and is included in the line item proceeds from issuce of common stock on die Statement of
Cash Flows. See Note 23 for fuer informtion related to stock compensation plans.
Effective Janua 1,2007, the Company adopted Fincial Accountig Stadads Board (FASB) Interpretation No. 48, "Accounting
for Uncertinty in Income Taxes-an Interpretation ofFASB Statement No. 109," (FIN 48) which provides guidance for die recogntion
and measurement of a ta position taen or expected to be taen in a tax retu. FIN 48 requies the evaluation of a ta position as a
two-step process. Firt, the Company is requied to determe whedier it is more likely than not that a ta position will be sustained
upon examation, including resolution of any related appeals or litigation processes, based on the techncal merits of the position. If
die ta position meets the "more likely than not" recogntion theshold, it is then measured and recorded at the largest amount of
benefit that is greater than 50 percent likely of being realizd upon ultiate settement. The adoption of FIN 48 did not have a
cumulative effect on the Company's fiancial statements. See Note II for fuer inormtion.
In September 2006, the F ASB issued SF AS No. 157, "Fair Value Measurements," which provides enhanced gudance for using fair
value to measure assets and liabilties. Ths statement also expands disclosures about fair value measurements. This statement applies
under odier accounting pronouncements that require or permt fai value measurements. However, the statement does not requie any
new fair value measurements. Ths statement emphasizes that fair value is a maket-based measurment and not an entity-specific
measurement. Therefore a fair value measurement should be determed based on the assumptions tht market parcipants would use
in pricing an asset or liability. The statement establihes a fair value hierachy tht priorities the inormation used to develop those
assumptions givig the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The Company
will be requied to adopt SF AS No. 157 in 2008. The Company does not expect SF AS No. 157 to have a material impact on its
fiancial condition and results of operations. However, the Company will have expanded disclosures with respect to fair value
measurements.
Effective December 31, 2006, SF AS No. 158, "Employers' Accountig for Defied Benefit Pension and Other Postretiement Plan -
an amendment ofFASB Statements No. 87, 88, 106, and 132 (R)" required the Company to recognze the overfded or underded
status of defied benefit postretiement plan in the Company's Balance Sheet measured as die difference between the fair value of
plan assets and the benefit obligation. For a penion plan die benefit obligation is the projected benefit obligation; for any other
postretirement benefit plan, the benefit obligation is the accumulated postretiement benefit obligation. Previously, the Company only
I FERC FORM NO.2 (ED. 12-88)Page 123.6
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
recogned the underfuded status of defied benefit penion plans as the difference between the fair value of plan assets and the
accumulated benefit obligation. As the Company has historically recovered and curenuy recovers its pension and other postretiement
benefit costs related to its regulated operations in retail rates, the Company records a regulatory asset for that porton of its pension and
other postretiement benefit fuding deficiency. As such, the underfded status of the Company's pension and other postretiement
benefit plan under SFAS No. 158 resulted in the recogntion as of December 31,2006 of:
. a liabilty of $60.1 millon (associated deferred taes of $21.0 millon) for pensions and other postretiement benefits,
. a regulatory asset of$54.2 millon (associated deferred taes of$19.0 millon) for pensions and other postretiement benefits,
. an increase to accumulated other comprehensive loss of $3.7 millon (net of taes of $2.1 milion), and
. the removal of the intagible pension asset of$3.7 million (was included in other defered charges).
As such, the total effect on the deferred income tax liabilty for the adoption of SF AS No. 158 was a net decrease of $2. i millon. The
adoption of ths statement did not have any effect on the Company's net income.
In Febru 2007, the FASB issued SFAS No. 159, "The Fair Value Qption for Financial Assets and Financial Liabilties." Ths
statement permts entities to choose to measure many ficial assets and ficial liabilties at fair value. Unrealized gain and losses
on items for which the fair value option is elected would be reported in net income. The Company will be required to adopt SF AS No.
159 in 2008. The Company does not plan to use the fair value option under SFAS No. 159 and as such does not expect SFAS No. 159
to impact its ficial condition and results of operations.
In December 2007, the FASB issued SFAS No. 141(R), "Business Combinations." Ths statement replaces SFAS No. 141 and
addresses the accountig for all tranactions or other events in which an entity obtain control of one or more businesses. This
statement requires the acquirg entity in a business combination to recogne the assets acquired, the liabilities assumed, and any
noncontrolling interest in the tranaction at the acquisition date, measured at their fair values as of that date, with limted exceptions.
The Company will be required to begin applyig ths statement to any business combintions in 2009.
In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements." Ths statement
amends Accountig Research Bulleti No. 51, "Consolidated Financial Statements" to establish accountig and reportg stadards
from noncontrolling (miority) interest in a subsidiar and for the deconsolidation of a subsidiar. This statement clarfies that a
noncontrolling interest in a subsidiar is an ownership in the consolidated entity that should be reported as equity in the consolidated
fiancial statements. The Company will be requied to adopt SF AS No. 160 in 2009. The Company is evaluating the impact SF AS
No. 160 will have on its ficial condition and results of operations.
NOTE 3. DISPOSITION OF A VISTA ENERGY
On June 30, 2007, A vista Energy and A vista Energy Canada completed the sale of substatially all of their contracts and ongoing
operations to Shell Energy Nort America (U.S.), L.P. (Shell Energy), formerly known as Coral Energy Holding, L.P., as well as to
certin other subsidiares of Shell Energy.
As consideration for the assets acquied (net of liabilties assumed), the purchase price paid by Shell Energy was calculated on the
closing date as the sum of the followig:
. the net trde book value of contracts acquired,
. the market value of the natual gas inventory, and
. the net book value of the tangible fied assets acquired.
Proceeds from the tranaction included cash consideration for the net assets acquied by Shell Energy and the liquidation of the
remaing net curent assets of A vista Energy not sold to Shell Energy (priarly receivables, restrcted cash and deposits with
counterpares).
Assets and liabilties excluded from the sale and retained or liquidated by A vista Energy include:
. cash,
. certin agreements, including electrc transmission, natual gas tranporttion and a power purchase agreement, related to a
270 MW natual gas-fied combined cycle combustion tubine plant located in Idao (Lacaster Plant), for periods after
December 31, 2009 though 2026,
. storage rights at a natual gas facility located in Washigton (Jackson Praire) for periods aftr April 30,2011,
. accounts receivable,
. accounts payable,
FERC FORM NO.2 (ED. 12-88)Page 123.7
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corpration (2)A Resubmission 04/17/2008 2007/04
NOTES TO FINANCIAL STATEMENTS (Continued)
. ta obligations,
. cash deposits with and from counterpares,
. litigation matters (including mattrs related to western energy makets), and
. cert employment agreements and employee related obligations.
Certin assets of Avista Energy with a net book value of approximately $30 millon have not been liquidated. These priarly include
natual gas storage and deferred ta assets. The Company expects that the natul gas storage wil ultiately be tranferred to A vista
Corp., subject to futue regulatory approvaL. The Company also expects tht the power purchae agreement for the Lacaster Plant for
the period 2010 though 2026 will be tranferred to Avista Corp., subject to futue reguatory approvaL.
In connection with the tranaction, on June 30, 2007, Avista Energy and its affliates entered into an Indemnfication Agreement with
Shell Energy and its affliates. Under the Indemfication Agreement, A vista Energy and Shell Energy each agree to provide
indemnfication of the other and the other's affliates for certin events and mattrs described in the purchase and sale agreement
entered into on April 16, 2007 and certin other tranaction agreements. Such events and matters include, but are not limted to, the
refud proceedigs arsing out of the western energy markets in 2000 and 2001 (see Note 24), existig litigation, ta liabilities, matters
with respect to storage rights at Jackson Praire, and any potential issues associated with the power purchase agreement for the
Lancaster Plant. In general, such indemnfication is not requied uness and until a par's claim exceed $150,000 and is lited to an
aggregate amount of $30 million and a term of thee year (except for agreements or tranactions with terms longer than thee year).
These limtations do not apply to certin thd par claim.
Avista Energy's obligations under the Indemnfication Agreement are guaranteed by Avista Capital pursuant to a Guaranty dated June
30, 2007. Ths Guaanty is limted to an aggregate amount of $30 millon plus certin fees and expenses. A vista Capital granted Shell
Energy a securty interest in 50 percent of Avista Capital's common shaes of Advantage IQ as collateral for its Guaanty. The
aggregate obligations secured by ths securty interest wil in no event exceed $25 millon. Avista Capital may substitute collateral,
such as cash or letters of credit, in place of the securty interest in Advantage IQ's common shaes. Ths securty interest in Advantage
IQ's common shaes will termate in 18 month (December 31, 2008) except to the extent of claim actuly made prior to expirtion
of the l8-month period. The Guaanty will termte April 30, 2011 except with respect to claim made prior to termation.
As of Febru 25,2008, there have not been any clai under the Indemfication Agreement or Guaanty.
Avista Energy made customar representations, warranties and covenats in the purchae and sale agreement. Avista Corp. and its
subsidiares agreed that for a period of 60 calenda month beging on the closing of the tranaction (June 30, 2007), neither A vista
Corp. nor any of its subsidiares will form or paricipate though ownership or any allance, or internly, develop capabilties to
replicate the business activities of Avista Energy with the region of the Western Electrc Coordintig CounciL. Ths restrction has
certin exceptions priarly related to any assets or contracts retained by A vista Energy and any curent corporate activities outside of
A vista Energy, including any resource optimzation or associated trading or hedgig activities of the character curently being
conducted by A vista Corp. in the ordiary coure of its regulated utility business (see Note 6).
NOTE 4. IMAIENT OF ASSETS
Durg the thd quaer of 2007, the Company recorded an impairent chage of $2.3 millon for a tubine and related equipment.
The Company originally planed to use the tubine in a reguated utility generation project. At the end of the thd quar of 2007, the
Company reached a conclusion to sell the tubine and related equipment, whch were classified as assets held for sale as of December
31, 2007. The impairent charge reduced the carg value of the assets to the estited fair value.
Pusuat to a settement agreement in its Washigton general rate case entered into in October 2007 and approved by the WUC in
December 2007, Avista Corp. agreed to wrte off$3.8 millon of unamorted debt repurchase costs. These costs were for premium
paid to repurchase debt prior to its scheduled matuty. In accordace with reguatory accountig practices, these premium were
recorded as a regulatory asset in unamorted debt expense on the Balance Sheet and were being amorted over the average remaing
matuty of outstadig debt.
NOTE 5. ACCOUNTS RECEIVABLE SALE
Avista Receivables Corporation (ARC) is a wholly owned, banptcy-remote subsidiar of Avista Corp. formed for the purose of
acquirg or purchasing interests in cert accounts receivable, both biled and unbiled, of the Company. On March 19, 2007, A vista
Corp., ARC and a thd-par fiancial institution amended a Receivables Puchase Agreement. The most signficant amendment
extended the termation date from March 20, 2007 to March 17, 2008. Under the Receivables Purchase Agreement, ARC can sell
I FERC FORM NO.2 (ED. 12-88).Page 123.8
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
without recourse, on a revolvig basis, up to $85.0 milion of those receivables. ARC is obligated to pay fees that approxiate 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
other operatig expenses of Avista Corp. The Receivables Purchae Agreement has fiancial covenants, which are substatially the
same as those of Avista Corp.'s $320.0 millon commtted line of credit (see Note 13). At each of December 31, 2007 and 2006,
$85.0 million in accounts receivables were sold under ths revolvig agreement.
NOTE 6. ENERGY COMMODITY TRAING
The Company is exposed to risks relating to, but not lited to:
. changes in certin commodity prices, and
. counterpar performance.
Avista Corp. utilzes derivative intrents, such as forwards, futus, swaps and options in order to maage the varous risks relatig
to these exposures. The Company uses a variety of technques to maage risks for their energy resources and wholesale energy market
activities. The Company has a risk management policy and control procedures to manage these risks, both qualitative and quantitative.
The Company's Risk Mangement Commttee establishes the Company's risk management policy and control procedures and
monitors compliance. The Risk Management Commttee is comprised of certin Company offcers and other individuals and is
overseen by the Audit Commttee of the Company's Board of Directors.
Avista Corp. engages in an ongoing process of resource optization, which involves the economic selection from available resources
to serve Avista Corp.'s load obligations and uses its existig resources to captue available economic value. Avista Corp. sells and
purc;hases wholesale electrc capacity and energy and fuel as par of the process of acquirg resources to serve its load obligations.
These tranactions range from terms of one hour up to multiple years. Avista Corp. makes continuing projections of:
. loads at varous points in time (ranging from one hour to multiple years) based on, among other thgs, estiates off actors
such as customer usage and weather, as well as historical data and contrct terms, and
. resource availabilty at these points in tie based on, among other thgs, estites of streamflows, availability of generatig
unts, historic and forward maket information and experience.
On the basis of these projections, A vista Corp. makes purchases and sales of energy to match expected resources to expected electrc
load requirements. Resource optiation involves generating plant dispatch and scheduling available resources and also includes
transactions such as:
. purchasing fuel for generation,
. when economic, selling fuel and substitutig wholesale purchases for the operation of A vista Corp.'s resources, and
. other wholesale tranactions to captue the value of generation and tranmission resources.
Avista Corp.'s optimzation process includes enterig into hedging transactions to manage risks.
As par of its resource optiation process described above, A vita Corp. maages the impact of fluctuations in electrc energy prices
by measurg and controlling the volume òf energy imbalance between projected loads and resources and though the use of derivative
commodity intrents for hedging puroses. Load/resource imbalances with a rolling i 8-month plang horion are compared
against established volumetrc guidelines and maagement determes the timg and specific actions to mage the imbalances.
Management also assesses available resource decisions and actions tht are appropriate for longer-term plang periods.
SFAS No. 133, as amended, establishes accountig and reportg stadards for derivative intrents, including certin derivative
intrents 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 estiated fair value and the recogntion of the unealized gain and losses. In certin
defied conditions, a derivative may be specifically designated as a hedge for a parcular exposure. The accountig for derivatives
depends on the intended use of the derivatives and the resulting designtion.
Avista Corp. enters into forward contrcts to purchase or sell electrcity and natual gas. Under these forwd contrcts, Avista Corp.
commts to purchae or sell a specified amount of energy at a specified time, or durg a specified period, in the futue. Certin of
these forward contracts are considered derivative intrents. Avista Corp. also records derivative commodity assets and liabilties
for over-the-counter and exchange-traded derivative intrents as well as certin long-term contrcts. These contracts are entered
into as par of Avista Corp.'s maagement of its loads and resources as discussed above. In conjunction with the issuance of SF AS
No. 133, the WUTC and the IPUC issued accounting order authoriing Avista Corp. to offet any derivative assets or liabilties with
a regulatory asset or liability. Ths accountig treatment is intended to defer the recogntion of mark- to-market gain and losses on
I FERC FORM NO.2 (ED.
12-88) Page 123.9
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corpration (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
energy commodity transactions until the period of settlement. The orders provide for Avista Corp. to not recognze the unealized
gain or loss on utility derivative commodity intrents in the Statements of Income. Realized gain or losses are recogned in the
period of settement, subject to approval for recovery though retail rates. Realied gain and losses, subject to reguatory approval,
result in adjustments to retail rates though purchased gas cost adjustments, the ERM and the PCA mechasm.
Substantially all forward contracts to purchase or sell power and natual gas are recorded as assets or liabilities at maket value with an
offsettg regulatory asset or liability. Contracts tht are not considered derivatives under SF AS No. 133 are generally accounted for
at cost until they are settled or realized, uness there is a decline in the fair value of the contract that is determed to be other th
temporar.
Market Risk
Market risk is, in general, the risk of fluctuation in the maket price of the commodity being traded and is infuenced priarly by
supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instrents. Market
risk is inuenced to the extent tht the performce or nonperformance by market parcipants of their contrctul obligations and
commtments affect the supply of, or demad for, the commodity. The Company manges the maket risks inerent in their activities
according to the risk management policy established by the Company's Risk Mangement Commttee.
Credit Risk
Credit risk relates to the risk of loss that the Company would incur as a result of non-performance by counterparies of their contractu
obligations to deliver energy or make fiancial settements. The Company often extends credit to counterpares and customers and is
exposed to the risk that they may not be able to collect amounts owed to them. Changes in market prices may dramtically alter the
size of credit risk with counterpares, even when conservtive credt limts are established. Credit risk includes the risk that a
counterpar may default due to circumtaces:
. relating directly to it,
. caused by market price chages, and
. relatig to other market parcipants that have a direct or indiect relationship with such counterpar.
Should a counterpar, customer or supplier fail to perform, the Company may be required to honor the underlyig commtment or to
replace existig contracts with contracts at then-curent maket prices. The Company seeks to mitigate credit risk by:
. enterig into bilateral contrcts tht specifY credit term and protections againt default,
. applyig specific eligibility criteria to existig and prospective counterpartes, and
. actively monitorig curnt credit exposures.
These credit policies include an evaluation of the ficial condition and credit ratigs of counterpares, collateral requirements or
other credit enancements, such as lettrs of credit or parent company guantees. The Company also uses standardized agreements
that allow for the nettg or offettg of positive and negative exposues associated with a single counterpar.
The Company has concentrations of suppliers and customers in the electrc and natual gas industres including:
. electrc utilities,
. electrc generators and tranmission providers,
. natual gas producers and pipelines, and
. energy maketig and tradig companes.
In addition, the Company has concentrations of credit rik related to geographic location as it operates in the western United States and
western Canada. These concentrations of counterpares and concentrations of geographic location may impact the Company's overall
exposure to credit risk, either positively or negatively, because the counterpares may be simlarly affected by chages in conditions.
Credit risk also involves the exposure that counterpares perceive related to the abilty of the Company to perform deliveries and
settlement under physical and fiancial energy contracts. These counterpares 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 signficantly. As a result, sudden and signficant demands may be made
againt the Company's credit facilties and cash. The Company actively monitors the exposure to possible collateral calls and taes
steps to mie capital requirements.
I FERC FORM NO.2 (ED. 12-88) 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 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Other Operational and Event Risks
In addition to market and credit risk, the Company is subject to operational and event risks includig, among others:
. blackouts or disruptions to tranmission or transporttion systems,
. forced outages at generatig plants,
. fuel quality and availabilty,
. disruptions to informtion systems and other admstrative resources required for normal operations, and
. weather conditions and natul disasters tht can cause physical dage to propert, requig repairs to restore utility servce.
Terrorism and other malicious theats are a risk to the entie utility industr. Potential disruptions to operations or destrction of
facilities from terrorim or other malicious acts are not readily determble. The Company has taen varous steps to mitigate
terrorism risks and prepare contingency plans in the event tht its facilities are tageted.
NOTE 7. CASH DEPOSITS WITH AN FROM COUNTERPARTIES
Cash deposits from countearies totaled $12.5 millon as of December 31,2007 and $39.4 millon as of December 31, 2006. These
fuds were held by Avista Corp. to mitigate the potential impact of counterpar default risk. These amounts are subject to retu if
conditions warant because of continuig portfolio value fluctutions with those pares or substitution of non-cash collateraL.
As is common industr practice, Avista Corp. maintain margin agreements with certin counterpares. Margi calls are trggered
when exposures exceed predetermed contractul limts or when there are changes in a counterpar's creditwortess. Price
movements in electrcity and natual gas can generate exposure levels in excess of these contractual limts. From time to tie, margi
calls are made and/or received by A vista Corp. Negotiatig for collateral in the form of cash, lettrs of credit, or performance
guarantees is common industr practice.
NOTE 8. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a 15 percent ownershp interest in a tw-unt coal-fied generatig facilty, the Colstrp Generatig Project
(Colstrp) located in southeastern Monta, and provides ficing for its ownership interest in the project. The Company's shae of
related fuel costs as well as operating expenses for plant in servce are included in the correspondig accounts in the Statements of
Income. The Company's shate of utility plant in servce for Colstrp was $329.6 million and accumulated depreciation was $197.7
millon as of December 31, 2007.
NOTE 9. ASSET RETIRMENT OBLIGATIONS
The Company follows SF AS No. 143, "Accountig for Asset Retirement Obligations," and records the fai value of a liabilty for an
asset retiement obligation in the period in which it is incured. When the liabilty is intially recorded, the associated costs of the asset
retiement obligation are capitalized as par of the carg 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 usefu life of the related asset. Upon retirement of
the asset, the Company either settles the retiement obligation for its recorded amount or incurs a gain or loss. The Company records
regulatory assets and liabilities for the difference between asset retiement costs curently recovered in rates and asset retiement
obligations recorded since asset retiement costs are recovered though rates charged to customers. The regulatory assets do not ear a
retu.
Specifically, the Company has recorded liabilties for futue asset retiement obligations to:
. restore ponds at Colstrp,
. cap a landfill at the Kette Falls Plant,
. remove plant and restore the land at the Coyote Sprigs 2 site at the termtion of the land lease,
. remove asbestos at the corporate offce buildig, and
. dispose of PCBs in cert tranformers.
Due to an inbilty to estiate a range of settlement dates, the Company canot estiate a liabilty for the:
. removal and disposal of certin tranmission and distrbution assets, and
. abandonment and decommssionig of certin hydroelectrc generation and natual gas storage facilities.
FERC FORM NO.2 (ED. 12-88) Page 123.11
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo. Da, Yr)
Avista Corporation (2)A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
The followig table documents the changes in the Company's asset retiement obligation durg the years ended December 3 I (dollar
in thousands):
Asset retiement obligation at beging of year
New liabilty recognzed
Liabilty adjustment due to revision in estiated cash flows
Liabilty setted
Accretion expense
Asset retirement obligation at end of year
2007
$4,810
2006
$4,529
2005
$1,191
3,243
(1,063)
(71)
314
$3,990
(51)
332Wl
(28)-i~
NOTE 10. PENSION PLANS AN OTHR POSTRTIRMENT BENEFI PLANS
The Company has a defied benefit penion plan coverig substatially all regular full-tie employees. Individual benefits under ths
plan are based upon the employee's year of servce and average compensation as specified in the plan. The Company's fuding
policy is to contrbute at least the mium amounts tht are required to be fuded under the Employee Retiement Income Securty
Act, but not more than the maximum amounts tht are curently deductible for income tax puroses. The Company contrbuted $15
millon in cash to the pension plan in each of2007, 2006 and 2005. The Company expects to contrbute at least $15 millon to the
pension plan in 2008.
The Company also has a Supplemental Executive Retirement Plan (SERP) tht provides additional pension benefits to executive
offcers of the Company. The SERP is intended to provide benefits to executive offcers whose benefits under the pension plan are
reduced due to the application of Section 415 of the Internl Revenue Code of 1986 and the deferral of salar under deferred
compensation plan. The liability and expense for ths plan are included as pension benefits in the tables included in ths Note.
The Company expects tht benefit payments under the pension plan and the SER will total $15.2 millon in 2008, $15.5 millon in
2009, $16.2 millon in 2010, $16.7 millon in 2011 and $17.8 millon in 2012. For the ensuig five year (2013 though 2017), the
Company expects tht benefit payments under the pension plan and the SERP will total $110.0 million.
The Finance Commtte of the Company's Board of Directors:
. establishes investment policies, objectives and strtegies that seek an appropriate retu for the pension plan, and
. reviews and approves chages to the investment and fuding policies.
The Company has contracted with an investment consultat who is responsible for maagig/monitorig the individual investment
managers. The investment managers' pedormce and related individual fud pedormance is periodically reviewed by the Finance
Commttee to ensure compliance with investment policy objectives and strategies. Pension plan assets are invested prily in
marketable debt and equity securties. Pension plan assets may also be invested in real estate, absolute retu, ventue capital/private
equity and commodity fuds. In seekig to obta the desired retu to fud the pension plan, the Finance Commttee has established
investment allocation percentages by asset classes as indicated in the table in th Note.
The expected long-term rate of retu on plan assets is based on past pedormance and economic forecasts for the tyes of investments
held by the plan. The market-related value of penion plan assets invested in debt and equity securties was based prily on fair
value (maket prices).
The maket-related value of pension plan assets invested in real estate was determed based on thee basic approaches:
. curent cost of reproducing a propert less deterioration and fuctional economic obsolescence,
. capitalization of the propert's net eargs power, and
. value indicated by recent sales of comparable propertes in the maket.
The market-related value of plan assets was determined as of December 31, 2007 and 2006.
In selectig a discount rate, the Company considers yield rates for highy rated corporate bond portolios with matuties simlar to that
of the expected term of pension benefits.
In 2006, the form of payment election assumption was anlyzed based upon historical trends and futue projections. The Company
revised the form of payment election to assume tht 5 percent of retiees and 50 percent of vested termated parcipants will elect a
lump sum payment, based upon the anlysis. The form of payment election assuption previously assumed that 50 percent of retiees
I FERC FORM NO.2 (ED. 12-88) Page 123.12 . I
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo. Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 20071Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
and vested termted partcipants would elect a lump sum payment. The change resulted in an increase of $13.2 millon to the
pension benefit obligation as of December 31,2006. The change also increases futue years' pension costs.
The Company provides certin health care and life inurance benefits for substatially all of its retied employees. The Company
accrues the estiated cost of postretiement benefit obligations durg the years tht employees provide servces. The Company
elected to amorte the tranition obligation of $34.5 millon over a period of twenty years, beging in 1993. The Company expects
tht benefit payments under the postretiement benefit plan will be $3.1 millon in 2008, $3.0 millon in 2009, $2.9 millon in 2010,
$2.8 millon in 2011 and $2.7 millon in 2012. For the ensuing five years (2013 though 2017), the Company expects tht benefit
payments under the postretiement benefit plan will total $12.3 millon. The Company expects to contrbute $3.1 millon to the
postretiement benefit plan in 2008, representig expected benefit payments to be paid durg the year.
The Company established a Health Reimbursement Arangement to provide employees with ta-advantaged fuds to pay for allowable
medical expenses upon retirement. The amount eared by the employee is fixed on the retirement date based on employees' years of
servce and the ending salar. The liability and expense of ths plan are included as other postretiement benefits.
The Company provides death benefits to beneficiares of executive offcers who die durg their term of offce or aftr retiement.
Under the plan, an executive offcer's designted beneficiary will receive a payment equal to twce the executive offcer's anual base
salar at the time of death (or if death occurs after retiement, a payment equal to twce the executive offcer's total anual pension
benefit). The liability and expense for ths plan are included as other postretiement benefits. Effective December 31, 2007, ths plan
was amended to elimate a provision tht allowed an executive offcer to elect for their beneficiares to receive one quar of such
payment each year over a ten-year period commencing with 30 days of the executive offcer's death. The plan was also amended to
provide that those who become executive offcers after December 31, 2007 will no longer be eligible to receive benefits after
retiement. The amendments to the plan reduced the benefit obligation by $1.6 milion.
The Company uses a December 31 measurement date for its pension and postretiement plan. The followig table sets fort the
pension and other postretirement plan disclosures as of December 3 I, 2007 and 2006 and the components of net periodic benefit costs
for the years ended December 3 I, 2007, 2006 and 2005 (dollars in thousands):
Other
Pension Postretiement
2007 2006 2007 2006
Change in benefit obligation:
Benefit obligation as of beging of year $315,691 $301,746 $33,632 $32,710
Servce cost 10,694 9,963 672 639
Interest cost 19,161 17,158 2,159 1,956
Plan amendment (1,601)
Actual loss (gain)(5,245)2,524 2,612 1,914
Tranfer of accrued vacation 585
Benefits paid (16,912)(15,521)(3,707)(3,557)
Expenses paid (299)(179)-.--
Benefit obligation as of end of year $323,090 $315,691 $34.352 $33,632
Change in plan assets:
Fair value of plan assets as of beging of year $225,079 $199,163 $20,878 $18,378
Actual retu on plan assets 18,799 25,737 1,840 2,530
Employer contrbutions 15,000 15,000
Benefits paid (16,018)(14,642)
Expenses paid (299)(179)--Í-
Fair value of plan assets as of end of year $242.561 $225.079 $22.718 $20,878
Funded status $(80,529)$(90,612)$(11,634)$(12,754)
Unrecognzed net actuaral loss 62,174 69,679 4,472 2,084
Unrecognized prior servce cost 3,098 3,751 (1,600)
Unrecogned net tranition obligation --2,526 3,031--
Accrued benefit cost (15,257)(17,182)(6,236)(7,639)
Additional liability (65,272)(73,430)(5,398).ü
Accrued benefit liability $(80,529)$(90,612)$01.634)$02.754)
I FERC FORM NO, 2 (ED, 12-88) Page 123.13
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation i2) A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Accumulated penion benefit obligation
Accumulated postretiement benefit obligation:
For retirees
For fully eligible employees
For other parcipants
Included in accumulated comprehensive loss (income) (net of tax):
Unrecogned net tranition obligation $ $
Unrecognzed prior servce cost 2,013 2,438
Unrecogned net of net actuaral loss 40,414 45,291Total 42,427 47,729Less regulatory asset (28,560) (31,992)
Accumulated other comprehensive loss (income) $13.867 $15.737
Weighted-average asset allocations as of December 31:Equity securties 49%Debt securties 31 %Real estate 6%Other 14%
Target asset allocations as of December 31:
Equity securties
Debt securties
Real estate
Other
Weighted average assumptions as of December 31:
Discount rate for benefit obligation
Discount rate for anual expense
Expected long-term retu on plan assets
Rate of compensation increase
Medical cost trend pre-age 65 - intial
Medical cost trend pre-age 65 - ultite
Ultite medical cost trend year pre-age 65
Medical cost trend post-age 65 - intial
Medical cost trend post-age 65 - ultimate
Ultiate medical cost trend year post-age 65
$275.159
39-61%
27-33%
3-7%
10-22%
6.34%
6.15%
8.50%
4.66%
2007 2006
Components of net periodic benefit cost:Servce cost $10,694Interest cost 19,161
Expected retu on plan assets (19,217)
Tranition (asset)/obligation recogntion
Amortation of prior servce cost
Net loss recogntion
Net periodic benefit cost
$ 9,963
17,158
(16,997)
653
2,978
$14.269
653
3,772
$14,549
$264 647
53%
28%
5%
14%
39-61%
27-33%
3-7%
10-22%
6.15%
5.75%
8.50%
4.84%
2005
$ 9,480
16,228
(15,917)
(499)
654
3,442
$13.388
$18,572
$9,675
$6,105
$1,642
(1,040)
2,907
3,509
(4,594)
$(1,085)
62%
38%
52-72%
28-48%
$20,351
$7,169
$6,112
$1,970
1,358
3,328
(3,233)~
64%
33%
3%
52-72%
28-48%
6.20%6.15%
6.15%5.75%
8.50%8.50%
9.00%9.00%
5.00%5.00%
2012 2011
9.00%9.00%
6.00%6.00%
2011 2010
2007 2006 2005
$ 672 $ 639 $ 654
2,159 1,956 1,839
(1,775)(1,562)(1,368)
505 505 505
193 -2 --~~1W
Assumed health care cost trend rates have a signficant effect on the amounts report for the health care plan. A
one-percentage-point increase in the assued health care cost trend rate for each year would increase the accumulated postretirement
benefit obligation as of December 31, 2007 by $1.6 millon and the servce and interest cost by $0.2 million. A one-percentage-point
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretiement benefit obligation as
of December 31, 2007 by $1.4 million and the servce and interest cost by $0.1 milion.
The Company and its most signficant subsidiaries have salar deferral 401 (k) plan that are defied contrbution plan and cover
substatially all employees. Employees can make contrbutions to their respective accounts in the plan on a pre-ta basis up to the
maximum amount permtted by law. The respective company matches a porton of the salar deferred by each parcipant according to
the schedule in the respective plan. Employer matchig contrbutions were $4.6 millon in 2007, $4.4 millon in 2006 and $4.1
I FERC FORM NO, 2 (ED. 12-88) Page 123.14
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
million in 2005.
The Company has an Executive Deferral Plan. This plan allows executive offcers and other key employees the opportty to defer
until the earlier of their retiement, termation, disabilty or death, up to 75 percent of their base salary and/or up to 100 percent of
their incentive payments. Deferred compensation fuds are held by the Company in a Rabbi Trut. At December 31, 2007 and 2006,
there were deferred compensation assets of $12.1 millon and $12.6 millon included in other special fuds and corresponding deferred
compensation liabilties of$12.1 million and $12.6 millon included in other deferred credits on the Balance Sheets.
NOTE 11. ACCOUNTING FOR INCOME TAXS
Deferred income taes reflect the net ta effects of temporar differences between the carg amounts of assets and liabilties for
fiancial reportg puroses and the amounts used for income ta puroses and ta credit carorwards.
The realization of deferred ta assets is dependent upon the ability to generate taable income in futue perods. The Company
evaluated available evidence supportg the realization of its deferred ta assets and determed it is more likely th not that deferred
ta assets will be realized.
As disclosed in Note 2, the Company adopted FIN 48 effective Januar 1, 2007, which did not have a cumulative effect on the
Company's fiancial statements.
The Company and its eligible subsidiares file consolidated federal income ta retu. The Company also fies state income tax
retu in certain jursdictions, including Idao, Oregon, Montaa and Californa. Subsidiares are charged or credited with the ta
effects of their operations on a stad-alone basis. The Interl Revenue Servce (IRS) has examed the Company's 2001, 2002 and
2003 federal income ta retu. Despite those ta years still remag open, all issues were resolved with the exception of the tig
for the deductions of certin indirect overhead costs. The IRS is curently conductig an examtion of the Company's 2004 and
2005 federal income ta retu. This examation could result in a change in the liability for uncertin ta positions. However, an
estiate of the range of any such possible chage canot be made at ths tie. The Company does not believe that any open ta years
with respect to state income taes could result in any adjustments tht would be signficant to the fiancial statements.
In August 2005, the Treasur Deparent issued regulations and the IRS issued a revenue ruling that affects the ta treatment by
A vista Corp. of cert indirect overhead expenses. A vista Corp. had previously made a ta election to curently deduct certin
indirect overhead costs, stag with the 2002 ta retu, that were capitalized for fiancial accounting puroses. Ths election
allowed A vista Corp. to tae ta deductions resultig in a total reduction of approximately $40 millon in curent ta liabilties for
2002, 2003 and 2004. These curent ta benefits were deferred on the balance sheet in accordance with the provisions of SF AS No.
109 and did not affect net income.
Due to the revenue rulig and related regulations, the IRS has disallowed the ta deduction of indirect overhead expenses durg their
examtion of the Company's 2001, 2002 and 2003 federal income ta retu. The Company believes that the ta deductions
claimed on ta retu were appropriate based on the applicable statutes and regulations in effect at the tie. Avista Corp.
appealed the proposed IRS adjustment on April 19,2006. The Company's appeal is being reviewed by the IRS Appeals Division. The
Company repaid a porton of the previous ta deductions though ta payments in 2005 and 2006. There can be no assurance tht the
Company's position will prevaiL. However, it is not expected to have a signficant effect on the Company's net income.
The Company estimates tht its liability for unecogned ta benefits is $22.6 millon at each of Januar 1, 2007 and December 31,
2007. Ths liability priarly relates to the indirect overhead expenses described above. The liabilty for unecogned ta benefits
would not affect the ta rate if recognzed in 2007, as any adjustment to ths ta item would be offet by an adjustment to curent
income ta expense. The liability for interest expense for unecognzed ta benefits as of January I, 2007 was not material due to net
operatig loss and ta credit carovers. The change in the liabilty for interest expense durg 2007 was not materiaL. The Company
has not accrued any penalties. The Company would recognze interest accrued related to income ta positions as interest expense and
any penalties incured as other operatig expense.
The Company had net regulatory assets of$117.5 millon at December 31,2007 and $105.9 millon at December 31, 2006 related to
the probable recovery of certin deferred ta liabilties from customers though futue rates.
NOTE 12. ENERGY PURCHASE CONTRACTS
I FERC FORM NO.2 (ED. 12-88)Page 123.15
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) 2: An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/04
NOTES TO FINANCIAL STATEMENTS (Continued)
Avista Corp. has contracts for the purchase of fuel for therm generation, natual gas for resale and varous agreements for the
purchase or exchange of electrc energy with other entities. The termnation dates of the contracts range from one month to the year
2055. Total expenses for power purchased, natual gas purchased, fuel for generation and other fuel costs, which are included in
operation expenses in the Statements ofIncome, were $733.5 millon in 2007, $682.5 millon in 2006 and $652.2 millon in 2005. The
followig table details Avista Corp.'s futue contractul commtments for power resources (including tranmission contracts) and
natual gas resources (including transporttion contracts) (dollars in thousands):
Power resources
Natual gas resources
Total
2008
$125,265
190,545
$315.810
2009
$120,493
112,215
$232.708
2010 2011 2012 Thereafter Total
$110,608 $ 78,163 $ 74,162 $395,936 $ 904,627
77,058 56,075 52,034 636,375 1,24,302
$187666 $134,238 $126.196 $1.032311 $2.028.929
All of the energy purchase contracts were entered into as par of Avista Corp.'s obligation to serve its retail natual gas and electrc
customers' energy requiements. As a result, these costs are generally recovered either though base retail rates or adjustments to retal
rates as par of the power and natual gas cost deferral and recovery mechasms.
In addition, Avista Corp. has operational agreements, settements and other contractual obligations for its generation, tranmission and
distrbution facilties. The expenses associated with these agreements are reflected as operation expenses and maintenace expenses in
the Statements of Income. The followig table details futue contrctul commtments for these agreements (dollars in thousands):
Contractul obligations
2008
$15,207
2009
$15.234
2010
$15.262
2011
$15291
2012
$15.322
Thereafter
$167.144
Total
$243,460
A vista Corp. has fixed contracts with cert Public Utility Distrcts (PUD) to purchase portons of the output of certain generating
facilties. Although Avista Corp. has no investment in the PUD generatig facilties, the fied contracts obligate Avista Corp. to pay
certin mium amounts (based in par on the debt servce requirements of the PUD) whether or not the facilties are operatig. The
cost of power obtained under the contracts, includig payments made when a facility is not operatig, is included in operation expenses
in the Statements of Income. Expenses under these PUD contracts were $18.0 millon in 2007, $13.1 millon in 2006 and $9.0 millon
in 2005. Inormation as of December 31,2007 perting to these PUD contracts is sumarzed in the followig table (dollar in
thousands):
Company's Cuent Share of
Debt Expira-
Kilowatt Anual Servce Bonds tion
Output Capabilty Costs 0)Costs 0)Outstadig Date
Chelan County PUD:
Rocky Reach Project 2.9%37,000 $ 2,181 $1,007 $ 1,796 2011
Douglas County PUD:
Wells Project 3.5%30,000 1,891 795 4,506 2018
Grant County PUD:
Priest Rapids Project 33%55,000 9,534 882 10,064 2055
Wanpum Project 8.2%75,000 4,430 2,949 18,526 2055
Totals 197000 $18.036 ~$34.892
(I) The anual costs will change in proporton to the percentage of output allocated to Avista Corp. in a paricular year. Amounts
represent the operatig costs for the year 2007. Debt servce costs are included in anual costs.
The estiated aggregate amounts of requied mium payments (A vista Corp.'s share of existig debt service costs) under these PUD
contracts are as follows (dollars in thousands):
Minum payments
2008am 2009~2010~2011Wl 2012~Thereafter
$41.265
Total
$59582
In addition, Avista Corp. will be required to pay its proportonate share of the varable operating expenses of these projects.
NOTE 13, COMMITTED LINE OF CRDIT
I FERC FORM NO, 2 (ED, 12-88)Page 123.16
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
The Company has a commttd line of credit agreement with various ban in the total amount of$320.0 millon with an expiration
date of April 5, 201 i. Under the credit agreement, the Company can request the issuace of up to $320.0 millon in lettrs of credit.
Total letters of credit outstading were $34.8 milion as of December 31, 2007 and $77.1 millon as of December 31, 2006. The
commtted line of credit is secured by $320.0 million of non-tranferable First Mortgage Bonds of the Company issued to the agent
ban tht would only become due and payable in the event, and then only to the extent, that the Company defaults on its obligations
under the commtted line of credit.
The commtted line of credit agreement contain customa covenants and default provisions, including a covenat requig the ratio
of "eargs before interest, taxes, depreciation and amorttion" to "interest expense" of Avista Corp. for the preceding
twelve-month period at the end of any fiscal quarer to be greater than 1.6 to 1. As of December 3 1,2007, the Company was in
compliance with ths covenant with a ratio of 2.70 to i. The commttd line of credit agreement also has a covenant which does not
permt the ratio of "consolidated total debt" to "consolidated total capitaliation" of Avista Corp. to be greater than 70 percent at the
end of any fiscal quaer. As of December 31, 2007, the Company was in compliance with ths covenant with a ratio of 53.8 percent.
If the proposed change in organation becomes effective, the commtted line of credit will remai at A vista Corp.
Balances outstading and interest rates of borrowigs (excluding letters of credit) under the Company's revolvig commtted lines of
credit were as follows as of and for the year ended December 31 (dollars in thousands):
Balance outstanding at end of period
Maximum balance outstadig durg the period
Average balance outstading durg the period
Average interest rate durg the period
Average interest rate at end of period
2007
$
48,000
6,833
7.91%
- %
2006
$ 4,000
77,000
16,740
6.07%
8.25%
2005
$ 63,000
167,000
61,181
4.45%
5.48%
NOTE 14. BONDS AN OTHER LONG-TERM DEBT
The followig details the interest rate and matuty dates of bonds and other long-term debt outstading as of December 31 (dollars in
thousands) :
Matuty Interest
Year Description Rate 2007 2006
2007 Secured Medium-Term Notes 5.99%$$13,850
2008 Secured Medium-Term Notes 6.06%-6.95%45,000 45,000
2010 Secured Medium-Term Notes 6.67%-8.02%35,000 35,000
2012 Secured Medium-Term Notes 7.37%7,000 7,000
2013 First Mortgage Bonds 6.13%45,000 45,000
2018 Secured Medium-Term Notes 7.39%-7.45%22,500 22,500
2019 Firt Mortgage Bonds 5.45%90,000 90,000
2023 Secured Medium-Term Notes 7.18%-7.54%13,500 13,500
2028 Secured Medium-Term Notes (I)6.37%25,000 25,000
2032 Secured Pollution Control Bonds (2)5.00%66,700 66,700
2034 Secured Pollution Control Bonds (2)5.13%17,000 17,000
2035 First Mortgage Bonds 6.25%150,000 150,000
2037 First Mortgage Bonds 5.70%150,000 150,000
Tota secured long-term debt 666,700 680,550
2007 Unsecured Medium-Term Notes 7.90%-7.94%12,000
2008 Unsecured Senior Notes 9.75%272,860 272,860
2023 Unsecured Pollution Control Bonds 6.00%4,100 4.100
Total unecured long-term debt 276,960 288,960
Interest rate swaps 1,083 1,037
Commtted line of credit 4,000
Preferred stock 26,250
Total bonds and other long-term debt $944.743 $1,000,797
I FERC FORM NO.2 (ED. 12-88) Page 123.17
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 041172008 2007/Q4
NOTES TO FINACIAL STATEMENTS (Continued)
(I) These Secured Medium-Term Notes with a matuty date of June 2028 are puttble at the option of the securty holders in
June 2008.
(2) These Secured Pollution Control Bonds ar subject to remketig on December 30, 2008. These bonds are puttble at the
option of the securty holders on tht date. If the bonds canot be successfully remarketed on tht date, the Company wil be
required to purchase the outstadig bonds.
The followig table details futue long-term debt matuties (2008 matuties include amounts discussed at (1) and (2) above), not
including interest rate swaps (dollars in thousands):
Year
Debt matuties
2008
$426.560
2009~2010
$35,000
2011 2012~~Thereaftr
$475,100
Total
$943,660
Substatially all utility propertes owned by the Company are subject to the lien of the Company's varous mortgage indentues.
Under the Mortgage and Deed of Trut securg the Company's First Mortgage Bonds (including Secured Medium-Term Notes), the
Company may issue additional First Mortgage Bonds in an aggregate pricipal amount equal to the sum of: I) 70 percent of the cost or
fair value (whichever is lower) of propert additions which have not previously been made the basis of any application under the
Mortgage, or 2) an equal pricipal amount of retied Firt Mortgage Bonds which have not previously been made the basis of any
application under the Mortgage, or 3) deposit of cash; provided, however, that the Company may not issue any additional First
Mortgage Bonds uness the Company's "net eargs" (as defied in the Mortgage) for any period of 12 consecutive calendar month
out of the preceding 18 calendar month were at least twce the anual interest requirements on all mortgage securties at the time
outstanding, including the First Mortgage Bonds to be issued, an on all indebtedness of prior ra. As of December 31, 2007,
propert additions and retied bonds would have entitled the Company to issue $953.3 millon in aggregate pricipal amount of
additional Firt Mortgage Bonds. However, using an interest rate of 8 percent on additional Firt Mortgage Bonds, and based on net
eargs for the 12 month ended December 31, 2007, the net eargs test would limt the pricipal amount of additional bonds the
Company could issue to $609.5 million.
See Note 13 for inormtion regarding Firt Mortgage Bonds issued to seure the Company's obligations under its $320.0 millon
commtted line of credit.
NOTE 15. ADVANCES FROM ASSOCIATED COMPANS
In 2004, the Company issued Junor Subordinated Debt Securties, with a pricipal amount of $6 1,9 millon to AVA Capital Trost II,
an affliated business trt formed by the Company. Concurently, A V A Capital Trut II issued $60.0 millon of Preferred Trost
Securties to thd pares and $ 1.9 million of Common Trut Securties to the Company. All of these securties have a fixed interest
rate of 6.50 percent for five year (though March 31, 2009). Subsequent to the intial five-year fied rate period, the securties will
either have a new fied rate or an adjustable rate. These debt secuties may be redeemed by the Company on or aftr March 31, 2009
and wil matue on April 1,2034.
In 1997, the Company issued Floatig Rate Junor Subordited Deferable Interest Debentues, Series B, with a pricipal amount of
$51. millon to Avista Capita II, an affliated business trst formed by the Company. Avita Capital II issued $50.0 millon of
Preferred Trost Securties with a floatig distrbution rate of LIB OR plus 0.875 percent, calculated and reset quarerly. The anual
distrbution rate paid durg 2007 ranged from 5.999 percent to 6.455 percent. As of December 31, 2007, the anual distrbution rate
was 5.999 percent. Concurent with the issuace of the Preferrd Trost Securties, Avista Capital II issued $1.5 millon of Common
Trost Securties to the Company. These debt securties may be redeemed at the option of Avista Capita II on or after June 1,2007 and
matue on June 1,2037; however, ths is lited by an agreement under the Company's 9.75 percent Senior Notes tht matue on June
1,2008. In December 2000, the Company purchased $10.0 millon of these Preferred Trut Securties.
The Company has guaranteed the payment of distrbutions on, and redemption price and liquidation amount with respect to, the
Preferred Trost Securties to the extent that AVA Capital Trut II and Avista Capital II have fuds available for such payments from
the respective debt securties. Upon matuty or prior redemption of such debt securties, the Preferred Trut Securties wil be
madatorily redeemed.
NOTE 16. INTEREST RATE SWAP AGREEMENTS
Avista Corp. enters into forward-stag interest rate swap agreements to manage the risk associated with changes in interest rates and
the impact on futue interest payments. These inteest rate swap agreements relate to the interest payments for the anticipated
issuces of debt. These interest rate swap agreements are considered hedges againt fluctutions in futue cash flows associated with
I FERC FORM NO.2 (ED. 12-88) Page 123.18
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
changes in interest rates in accordace with SFAS No. 133.
In 2005, the Company cash settled an interest rate swap and received $4.4 milion. In December 2006, Avista Corp. cash setted an
interest rate swap agreement and paid $3.7 millon. These settlements were deferred as regulatory items (par oflong-term debt) and
will be amortzed over the remaing term of the interest rate swap agreements (forecasted interest payments) in accordace with
reguatory accounting practices.
Under the term of the two outstading interest rate swap agreements (totaling $125.0 millon) as of December 31,2007, the value of
the interest rate swaps is determed based upon Avista Corp. payig a fied rate and receiving a vanable rate based on LffOR for a
term often years begig in 2008. As of December 31,2007, Avista Corp. had a long-term derivative liabilty of$10.5 millon and
a net unealized loss of $6.8 millon recorded as accumulated other comprehensive loss on the Balance Sheets. The interest rate swap
agreements provide for mandatory cash settlement of these contracts in 2009. The amount included in accumulated other
comprehensive income or loss at the cash settlement date will be reclassified to a reguatory asset or liability (par of long-term debt) in
accordance with reguatory accountig practices under SF AS No. 71. Ths reguatory asset or liabilty wil be amortzed as a
component of interest expense over the life of the forecasted interest payments.
NOTE 17. LEASES
The Company has multiple lease arangements involvig vanous assets, with mium term ranging from one to fort-five year.
Rental expense under operatig leases was $2.0 millon in 2007, $2.5 millon in 2006 and $8.0 millon in 2005. Futue mium lease
payments requied under operating leases havig intial or remag noncancelable lease terms in excess of one year as of December
31,2007 were as follows (dollar in thousands):
Year ending December 31:
Minum payments requied
2008 2009~~2010Ml 2011
$201
2012
$117
Thereafter~Total~
NOTE 18. GUARTEES
The Company has guaranteed the payment of distrbutions on, and redemption price and liquidation amount with respect to, the
Preferred Trust Securties issued by its affliates, AVA Capital Trust II and Avista Capital II, to the extent tht these entities have
fuds available for such payments from the respective debt securties.
Avista Power, though its equity investment in Rathdr Power, LLC (R LLC), was a 49 percent owner of the Lancaster Plant, which
commenced commercial operation in September 2001. In October 2006, Avita Power completed the sale of its investment in RP LLC
for close to book value. The output from the Lancaster Plant is contracted to Avista Energy though 2026 under a power purchase
agreement. Avista Corp. has guanteed the power purchase agreement for the performance of Avista Energy. The majority of the
rights and obligations of ths agreement were assigned to Shell Energy though the end of2009. Begig in 2010, the Company
expects that these rights and obligations will be tranferred to Avista Corp., subject to futue approval.
In connection with the transaction, on June 30, 2007, Avista Energy and its affliates entered into an Indemnfication Agreement with
Shell Energy and its affiliates. Under the Indemnfication Agreement, A vista Energy and Shell Energy each agree to provide
indemfication of the other and the other's affliates for certin events and mattrs described in the purchase and sale agreement
entered into on April 16, 2007 and certain other transaction agreements. Such events and mattrs include, but are not limted to, the
refud proceedings ansing out of the western energy markets in 2000 and 2001 (see Note 24), existig litigation, ta liabilties, matters
with respect to storage rights at Jackson Praire, and any potential issues associated with the power purchae agreement for the
Lacaster Plant. In general, such indemnfication is not required uness and until a par's claim exceed $150,000 and is limted to an
aggegate amount of$30 millon and a term of thee year (except for agreements or tranactions with term longer th thee years).
These limtations do not apply to certin thd par clai.
Avista Energy's obligations under the Indemnfication Agrement are guaranteed by Avista Capital pursuant to a Guaanty dated June
30, 2007. Ths Guaanty is limted to an aggregate amount of $30 millon plus certin fees and expenses. A vista Capital granted Shell
Energy a securty interest in 50 percent of Avista Capital's common shaes of Advantage IQ as collateral for its Guaanty. The
aggregate obligations secured by ths securty interest will in no event exceed $25 millon. Avista Capital may substitute collateral,
such as cash or lettrs of credit, in place of the securty interest in Advantage IQ's common shaes. Ths securty interest in Advantage
IQ's common shares will termate in 18 month (December 31,2008) except to the extent of claim actully made prior to expiration
of the 18-month period. The Guaranty will termte April 30, 2011 except with respect to claim made prior to termtion.
I FERC FORM NO.2 (ED. 12-88) Page 123.19
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/172008 2oo7/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 19. PREFERRD STOCK-CUMULATIV (SUBCT TO MANDATORY REDEMPTION)
The Company has 10 millon authoried shaes of $6.95 Series K preferred stock. In September 2007, the Company redeemed the
262,500 remaing outstading shares of ths preferred stock for $26.25 millon. In each of September 2006 and 2005, the Company
made mandatory redemptions of 17,500 shares of preferred stock for $1.75 milion.
NOTE 20. FAI VALUE OF FIANCIA INSTRUMNTS
The carg values of cash, special deposits, workig fuds, temporar cash investments, accounts and notes receivable, accounts
payable and the commtted line of credit are reasonable estiates of their fai values. Energy commodity derivative assets and
liabilities, as well as derivatives related to interest rate swap agreements, are reported at estimted fai value on the Balance Sheets.
The followig table sets fort the estited fair value and carg value of the Company's long-term debt (including curent porton,
but excluding capital leases), long-term debt to affliated tits and preferred stock subject to mandatory redemption as of December
31,2007 and 2006 (dollars in thousands):
Long-term debt
Long-term debt to affliated trsts
Preferred stock
Carg
Value
$943,660
113,403
2007
Estiated
Fair Value
$969,899
109,109
Carg
Value
$969,510
113,403
26,250
2006
Estited
Fair Value
$976,548
110,147
26,622
These estites of fair value were priarly based on available maket inormation.
NOTE 21. COMMON STOCK
In November 1999, the Company adopted a shareholder rights plan puruant to which holders of common stock outstading on
Februar 15,1999, or issued thereafter, were granted one preferred share purchae right (Right) on each outstading share of common
stock. Each Right, intially 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 certin
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 outstadig shares of common stock or commences a tender or exchange offer, the consumtion of which
would result in the beneficial ownership by a person or group of 10 percent or more of the outstading shares of common stock. Upon
any such acquisition, each Right will entitle its holder to purchae, 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
acquirg person or group) tht has a market value at tht tie equal to twce the purchase price. In no event wil 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. In connection with the proposed statutory share exchange (see Note 25), the shareholder rights
plan was amended to provide tht the Rights will expire upon the earlier of the effective tie of the statutory shae exchange or March
31,2009 (the origially scheduled expiration date).
The Company ha a Dividend Reinvestment and Stock Puchase 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 curent market value.
The payment of dividends on common stock is restrcte by provisions of cerin covenants applicable to preferred stock and
long-term debt contained in the Company's Arcles of Incorporation and varous mortgage indentues. Covenants under the
Company's 9.75 percent Senor Notes that matue in 2008 limt the Company's ability to increase its common stock cash dividend to
no more than 5 percent over the previous quarr, uness certin conditions ar met related to restrcted payments. As of December 31,
2007, the Company met the conditions tht would allow it to increase the common stock cash dividend in excess of 5 percent over the
previous quarer.
In December 2006, the Company entered into a sales agency agreement with a sales agent, to issue up to 2 millon shares of its
common stock from tie to tie. As of Februar 25, 2008, the Company has not issued any shaes under the sales agency agreement.
I FERC FORM NO.2 (ED. 12-88)Page 123.20
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 22. EARINGS PER COMMON SHA
The followig table presents the computation of basic and diluted eargs per common share for the years ended December 31 (in
thousands, except per share amounts):
2007 2006 2005
Numerator:
Net income $38,475 $72,941 $44,988
Subsidiar eargs adjustment for dilutive securties ~----
Adjusted net income for computation of
diluted eargs per common share $38.126 $72.941 $44.988
Denominator:
Weighted-average number of common shaes
outstading-basic 52,796 49,162 48,523
Effect of dilutive securties:
Contingent stock awards 168 371 198
Stock options ~-2 -l
Weighted-average number of common shares
outstading-diluted ~~48.979
Total eargs per common share, basic $0.73 $1.48 $0,93
Total eargs per common shae, diluted ~~~
Total stock options outstanding that were not included in the calculation of diluted eargs per common share were 303,950 for 2007,
26,200 for 2006 and 695,500 for 2005. These stock options were excluded from the calculation because they were antidilutive based
on the fact tht the exercise price of the stock options was higher than the average maket price of Avista Corp. common stock durg
the respective period. In addition, contingent stock awads of 318,900 were outstading as of December 31, 2005, which were not
included in basic or diluted shares because the performce conditions were not satisfied.
NOTE 23. STOCK COMPENSATION PLANS
1998 Plan
In 1998, the Company adopted, and shareholders approved, the Long-Term Incentive Plan (1998 Plan). Under the 1998 Plan, cert
key employees, offcers and non-employee diectors of the Company and its subsidiares may be granted stock options, stock
appreciation rights, stock awards (including restrcted stock) and other stock-based awards and dividend equivalent rights. The
Company has available a maimum of 3.5 millon shares of its common stock for grant under the 1998 Plan. As of December 3 I,
2007, 0.9 millon shares were remaing for grant under ths plan.
2000 Plan
In 2000, the Company adopted a Non-Offcer Employee Long-Term Incentive Plan (2000 Plan), which was not requied to be
approved by shareholders. The provisions of the 2000 Plan are essentially the same as those under the 1998 Plan, except for the
exclusion of non-employee directors and executive offcers of the Company. The Company has available a maximum of2.5 millon
shaes of its common stock for grant under the 2000 Plan. However, the Company curently does not plan to issue any fuer options
or securties under the 2000 Plan. As of December 31, 2007, 1.7 millon shaes were remaing for grant under ths plan.
Stock Compensatin
Prior to Janua 1,2006, the Company accounted for stock based compensation using APB No. 25, which required the recogntion of
compensation expense on the excess, if any, of the maket price of the stock at the date of grant over the exercise price of the option.
As the exercise price for options grted under the 1998 and 2000 Plans was equal to the market price at the date of grant, there was
no compensation expense recorded by the Company. However, the Company recogned compensation expense related to
performance-based shae awads. For periods presented prior to Janua 1,2006, the Company is required to disclose pro forma net
income and; eargs per common shae as if the Company had adopted the fair value method of accountig for stock-based
I FERC FORM NO.2. (ED. 12-SS) Page 123.21
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
compensation.
On Janua 1,2006, the Company adopted SFAS No. 123R, which supersedes APB No. 25 and SFAS No. 123 and their related
implementation guidance. The statement requires that the compensation cost relatig to share-based payment tranactions be
recognzed in fiancial statements based on the fair value of the equity or liabilty intrents issued. The Company adopted SF AS
No. 123R using the modified prospective method and, accordingly, ficial statement amounts for prior periods presented were not
restated to reflect the fair value method of recogning compensation expene relatig to shae-based payments. The Company
recorded stock-based compensation expense of $2.5 millon for 2007 and $4.0 millon for 2006. The total income ta benefit
recognzed in the Statements of Income was $1.0 millon for 2007 and $1.5 millon for 2006.
Stock Options
The fair value of stock option awards was calculated using the Black Scholes option pricing modeL. Ths model requies the use of
subjective assuptions, including stock price volatility, dividend yield, risk-free interest rate and expected tie to exercise. See Note
1 for disclosure of pro forma net income and eargs per common share for 2005. The followig sumares stock options activity
under the 1998 Pla and the 2000 Plan for the years ended December 31:
2007 2006 2005
Number of shaes under stock options:
Options outstading at beging of year 1,541,045 2,095,211 2,332,198
Options granted
Options exercised (123,134)(504,452)(192,377)
Options canceled (6,000)(49,714)(44,610)
Options outstading at end of year 1.411.911 1.541.045 2,095:211
Options exercisable at end of year 1.411.911 1,541,045 1,968,629
Weighted average exercise price:
Options granted $$$
Options exercised $15.14 $16.12 $13.50
Options canceled $26.59 $20.77 $20.42
Options outstadig at end of year $15.38 $15.41 $15.68
Options exercisable at end of year $15.38 $15.41 $16.03
Intric value of options exercised (in thousands)$1,022 $3,520 $956
Intric value of options outstading (in thousands)$8,697 $15,256 $4,253
Information for options outstanding and exercisable as of December 31, 2007 was as follows:
Range of
Exercise Prices
$10.17-$11.68
$11.69-$14.61
$14.62-$17.53
$17.54-$20.45
$20.46-$26.29
$26.30-$28.47
Total
Number
of Shares
357,560
372,775
243,501
134,125
283,750
20,200
1.411.911
Weighte
Average
Exercise
Price
$10.29
11.82
17.04
18.76
22.56
27.63
$15.38
Weighted
Average
Remaing
Life (in years)
4.7
3.8
2.2i.
2.7
2.2
3.3
Total cash received from the exercise of stock options was $1.9 milion for 2007 and $9.9 millon for 2006. As of December 31,2007
and 2006, the Company's stock options were fully vested and expensed.
Restrcted Shares
Restrcted shaes vest in equal thds each year over a thee-year period and are payable in A vista Corp. common stock at the end of
each year if the servce condition is met. In addition to the servce condition, the Company must meet a retu on equity taget in order
for the CEO's restrcted shares to vest. Durg the vestig period, employees are entitled to dividend equivalents which are paid when
dividends on the Company's common stock are declared. Restrcted stock is valued at the close of market of the Company's common
I FERC FORM NO.2 (ED. 12-88)Page 123.22 I.
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
stock on the grant date. The weighted average remaing vestig period for the Company's restrcted shares outstading as of
December 31, 2007 was one year.
The followig table sumares restrcted stock activity for the years ended December 31:
Unvested shaes at beging of year
Shares grnted
Shaes cancelled
Shares vested
Unvested shares at end of year
Weighted average fair value at grant date
Unrecognzed compensation expense at end of year (in thousands)
Intric value, unvested shaes at end of year (in thousands)
Intric value, shares vested durg the year (in thousands)
2007 2006
36,180
31,860 36,260
(19,936)(80)
(19,967)--iw ~
$25.60 $21.32
$517 $439
$606 $916
$461 $
Performance Shares
Performance share grants have vestig periods of thee years. Performance awards entitle the recipients to dividend equivalent rights,
are subject to forfeitue under certin circumtances, and are subject to meetig specific performce conditions. Based on the
attinent of the performance condition, the amount of cash paid or common stock issued will range from 0 to 150 percent of the
performance shares granted depending on the change in the value of the Company's common stock relative to an external benchmark.
Dividend equivalent rights are accumulated and paid out only on shares"tht eventuly vest.
Performance shae awards entitle the grantee to shaes of common stock or cash payable once the servce condition is satisfied. Based
on attinent of the performance condition, grantees may receive 0 to 150 percent of the origil shares granted. The performce
condition used is the Company's Total Shaeholder Retu (TSR) performce over a thee-year period as compared agait other
utilities; under SF AS l23R ths is considered a market based condition. Performance shares may be settled in common stock or cash
at the discretion of the Company. Historically, the Company has settled these awards though issuance of stock and intends to
contiue ths practice. These awards vest at the end of the thee-year period. Under Statement SF AS 123R, performance shaes are
equity awards with a maket based condition, which results in the compensation cost for these awards being recogned over the
requisite servce period, provided tht the requisite service period is rendered, regardless of when, if ever, the maket condition is
satisfied.
The Company measues (at the grant date) the estiated fair value of performnce shares granted in accordace with the provisions of
SF AS No. 123R. The fair value of each performce share award was estiated on the date of grant using a statistical model tht
incorporates the probabilty of meetig performance targets based on historical retu relative to a peer group. Expected volatility
was based on the historical volatility of Avista Corp. common stock over a thee-year period. The expected term of the performance
shares is thee year based on the performce cycle. The rik-fre interest rate was based on the U.S. Treasur yield at the tie of
grant. The compensation expense on these awards will only be adjusted for chages in forfeitues. The followig sues the
weighted average assumptions used to determe the fair value of performance shaes and related compensation costs as well as the
resultig estiated fair value of performce shaes granted:
Risk-free interest rate
Expected life, in years
Expected volatility
Dividend yield
Weighted average grant date fair value (per shae)
2007
4.8%
3
19.4%
2.5%
$18.71
The fair value includes both performce shares and dividend equivalent rights.
The followig suarzes performance share activity:
Openig balance of unvested performce shares
Performance shares granted
FERC FORM NO.2" (ED. 12-88)
2007
300,406
114,640
Page 123.23
2006
4.6%
3
21.9%
2.9%
$18.08
2006
318,331
138,710
2005
3.4%
3
34.1%
3.0%
$16.70
2005
308,145
163,600
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04172008 2007/Q4
NOTES TO FINACIAL STATEMENTS (Continued)
Performce shaes canceled (45,632) (1,404) (500)Performce shares vested (161,573) (155,231) (152,914)
Ending balance of unvested performance shaes 207,841 300.406 318.331
Intric value ofunvested performance shaes (in thousands) $4,477 $7,603 $5,638
Unrecogned compensation expense (in thousands) $2,058 $2,400 $
The weighted average remaig vestig period for the Company's restrcted shaes outstadig as of December 31,2007 was 1.4
years. Unrecogned compensation expense as of December 31,2007 will be recognized durg 2008 and 2009. The followig
sumes the impact of tle market condition on tle vested performance shares:
Performce shares vested
Impact of maket condition on shaes vested
Shares of common stock eared
Intric value of common stock eared (in tlousands)
2007
161,573
(56,551)
105,022
$2,262
2006
155,231
34,151
189,382
$4,793
2005
152,914
30,583
183,497
$3,250
In 2007,2006 and 2005, the number of performance shares vested was adjusted by (35) percent, 22 percent and 20 percent due to the
performance condition achieved. Shaes eared under ths plan are distrbuted to parcipants in the quarer following vesting.
Awards outstadig under tle performce share grants include a dividend component that is paid in cash. This component of the
performance share grants is accounted for as a liabilty award under the guidace of SF AS No. 123R. These liability awards are
revalued on a quaerly basis tag into account the number of awards outstadig, historical dividend rate, and the change in the
value of the Company's common stock relative to an externl benchmk. Over the life of these awards, the cumulative amount of
compensation expense recogned wil match the actu cash paid. As of December 31, 2007 and 2006, the Company had recognzed
compensation expense and a liabilty of $0.4 millon and $0.7 millon related to the dividend component of performance share grants.
NOTE 24, COMMITMENTS AN CONTINGENCIES
In the course of its business, the Company becomes involved in varous claim, controversies, disputes and other contingent matters,
including the items described in ths Note. Some of these claim, controversies, disputes and other contigent matters involve
litigation or otler contested proceedings. With respect to these proceedigs, the Company intends to vigorously protect and defend its
interests and pursue its rights. However, no assurance can be given as to the ultiate outcome of any parcular matter because
litigation and other contested proceedings are inerently subject to numerous uncertinties. With respect to mattrs that affect Avista
Corp.'s regulated utility operations, the Company intends to seek, to tle extent appropriate, recovery of incured costs though the rate
makg process. With respect to matters discussed in ths Note that affect Avista Energy (paricularly the Californa Refud
Proceedig), any potential liabilties or refuds rema at A vista Corp. and/or its subsidiares and were not assumed by Shell Energy
and/or its affliates.
Federal Energy Regulatory Commission Inquir
On April 19,2004, tle FERC issued an order approvig tle contested Agreement in Resolution of Section 206 Proceedig (Agreement
in Resolution) reached by Avista Corp., Avista Energy and tle FERC's Trial Staff with respect to an investigation into the activities of
A vista Corp. and A vista Energy in western energy markets durg 2000 and 2001. In the Agreement in Resolution, the FERC Trial
Staff stated that its investigation found: (I) no evidence that any executives or employees of Avista Corp. or Avista Energy knowigly
engaged in or facilitated any improper tradig strategy; (2) no evidence that Avita Corp. or Avista Energy engaged in any effort to
mapulate tle western energy markets durg 2000 and 2001; and (3) tht Avista Corp. and Avista Energy did not withold relevant
informtion from the FERC's inquir into the western energy markets for 2000 and 2001. In April 2005 and June 2005, tle Californa
Paries and the City of Tacoma, respectively, filed petitions for review of the FERC's decisions approvig the Agreement in Resolution
with the United States Cour of Appeals for the Ninth Circuit (Ninth Circuit). Based on the FERC's order approvig the Agreement in
Resolution and the FERC's denial of rehearg requests, the Company does not expect that ths proceeding will have any material
adverse effect on its ficial condition, results of operations or cash flows.
Class Action Securites Litigation
On June 1,2007, Avista Corp. entered into a settement agreement with respect to a class action lawsuit fied againt Avista Corp.,
Thomas M. Mattews, a former Chairan of the Board, President and Chef Executive Offcer of Avista Corp., Gar G. Ely, a former
Chairan of the Board, President and Chief Executive Offcer of Avista Corp., and Jon E. Eliassen, a former Senior Vice President
I FERC FORM NO.2 (ED. 12-88) Page 123.24
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
and Chef Financial Offcer of Avista Corp. The settlement agreement was filed in the United States Distrct Cour for the Eastern
Distrct of Washigtn (the Cour) on June 4, 2007.
The lawsuit commenced with the fiing of several class action complaints in the Cour in September though November 2002. These
complaints were subsequently consolidated and ultitely dismissed by the Cour in October 2005. The order to dismiss was issed
without prejudice, however, which allowed the plaintiffs to file an amended complaint. The amended class action complaint was filed
on November 10, 2005 and asserted clai on behalf of all persons who purchased, convertd, exchanged or otherwse acquired the
Company's common stock durg the period between November 23,1999 and Augut 13,2002.
The settlement agreement provides for certfication of the plaintiff class and a full release by the class and dismissal with prejudice of
all claim againt A vista Corp. in consideration of payment of $9.5 millon into a settlement fud. The settlement payment and
litigation defense costs will be paid by Avista Corp.'s inurance company with the exception of the Company's $1 millon self-inured
retention. The settement agreement fuer provides that the individual defendants Mattews, Ely and Eliassen will be dismissed from
the lawsuit.
The Company vigorously contested ths lawsuit since it commenced on September 27,2002. The Company dened, and contiues to
deny in their entiety, the allegations of wrongdoing in the lawsuit, including the allegations tht Avista Corp. made any false or
misleading statements with regard to the Company's business, business practices, risk management or trading activity. The Company
denies that it engaged in any improper trading in the Californa energy maket or in any other market, and it denies tht the price of its
stock was arficially inflated by reason of the misrepresentations and omissions alleged in the lawsuit. There have been no adverse
determations by any cour againt Avista Corp. or any of the defendants on the merits of the claim asserted by the plaintiffs in the
lawsuit, and the Company denies tht shaeholders were haed by the conduct alleged in the lawsuit. Neither the settlement
agreement nor any of its term or provisions, nor the Company's decision to settle the lawsuit, should be constred as an admission or
concession of any kid of the merit or trth of any of the allegations of wrongdoing in the lawsuit, or of any fault, liabilty or
wrongdoing whatsoever on the par of Avista Corp. The Company believes that thoughout the class period alleged in the lawsuit it
fully and adequately disclosed all material facts regarding the Company and made no misrepresentations of material facts regarding
Avista Corp. The Company nonetheless considers it desirable to settle the lawsuit in order to avoid the cost and risks of fuer
litigation and tral, and to dispose of burdensome and protracted litigation.
In Januar 2008, the Cour granted final approval of the settlement agreement, and entered an order certfyg the class and dismissing
the clai in the lawsuit with prejudice.
California Refund Proceeding
In July 2001, the FERC ordered an evidentiar hearg to determe the amount of refuds due to Californa energy buyers for
purchases made in the spot markets operated by the Californa Independent System Operator (Call SO) and the Californa Power
Exchage (CalPX) durg the period from October 2,2000 to June 20,2001 (Refud Period). The fidigs of the FERC
admstrative law judge were largely adopted in March 2003 by the FERC. The refuds ordered are based on the development of a
mitigated market clearg price (MCP) methodology. If the refuds requied by the formula would cause a seller to recover less than
its actual costs for the Refud Period, the FERC has held that the seller would be allowed to document these costs and limt its refud
liability commensurately. In September 2005, Avista Energy submitted its cost filing claim pursuat to the FERC's August 2005 order
and demonstrated an overall revenue shortfall for sales into the Californa spot makets durg the Refud Period after the MMCP
methodology is applied to its tranactions. That fiing was accepted in orders issued by the FERC in Janua 2006 and November
2006. In its Febru 2007 status report, the CalISO stated tht it intends to process Avista Energy's cost offet fiing. In November
2007, the Call SO fied an updated statu report at the FERC stating that it contiues filizing the ficial adjustment phase, in which
the CalI SO is mang adjustments to its refud reru settlement data to account for fuel cost allowance offets, cost-based offsets, and
interest calculations. The CalI SO states that it has fished processing activities associated with the emssions cost and fuel cost
offsets.
In 2001, Pacific Gas & Electrc (pG&E) and Southern Californa Edson (SCE) defaulted on payment obligations to the CalPX and the
CalISO. As a result, the CalX and the CalI SO failed to pay varous energy sellers, including Avista Energy. Both PG&E and the
CalX declared banptcy in 200 i. In March 2002, SCE paid its defaulted obligations to the CalPX. In April 2004, PG&E paid its
defaulted obligations into an escrow fud in accordance with its banptcy reorganzation. Funds held by the CalPX and in the
PG&E escrow fud are not subject to release until the FERC issues an order directing such release in the Californa refud proceeding.
As of December 31, 2007, Avista Energy's accounts receivable outstading related to defaultig pares in Californa were fuly offet
by reserves for uncollected amounts and fuds collected from defaultig paries.
I FERC FORM NO.2 (ED.
12-88) Page 123.25
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corpration '2) A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
In addition, in June 2003, the FERC issued an order to review bids above $250 per MW made by parcipants in the short-term energy
markets operated by the CanSO and the CaIPX frm May I, 2000 to October 2,2000. In May 2004, the FERC provided notice that
Avista Energy was no longer subject to ths investigation. In March and April 2005, the Californa Pares and PG&E, respectively,
petitioned for review of the FERC's decision by the Ninth Circuit. In addition, may of the other orders tht the FERC has issued in
the Californa refud proceedings are now on appeal before the Ninth Ciruit. Some of those issues were consolidated as a result of a
case magement conference conducted in September 2004. In October 2004, the Ninth Circuit ordered that briefing proceed in two
rounds. The fist round is limted to the issues: (l) which pares are subject to the FERC's refud jursdiction in light of the
exemption for governent-owned utilities in section 201(f) of the Federal Power Act (FPA); (2) the temporal scope of refuds under
section 206 of the FP A; and (3) which categories of tranactions are subject to refuds. In September 2005, the Ninth Circuit held that
the FERC did not have the authority to order refuds for sales made by muncipal utilities in the Californa Refud Case. In its Order
on Remad, issued in October 2007, the FERC ordered the CalI SO and the CaIPX to complete their refud calculations, including all
entities tht parcipated in the CanSO/CaIPX markets (including those amounts tht would have been paid by muncipal utility entities
for their sales into the CallSO and the CaIPX spot markets durg the refud period). The FERC then directed the CalISO to reduce
refuds owed to refud recipients by the amounts attbutable to muncipal sales to the Californa markets.
In August 2006, the Ninth Circuit upheld October 2, 2000 as the refud effective date for the FP A section 206 Refud Proceeding, but
remaded to the FERC its decision not to consider a FP A section 309 remedy for taff violations prior to October 2, 2000. The Ninth
Circuit also granted Californa's petition for review chalenging the FERC's exclusion of the energy exchange tranactions as well as
the FERC's exclusion offorward market tranactions from the Californa refud proceedings. Petitions for rehearg were fied on
November 16, 2007. It is unclear at ths tie what impact, ifany, the Cour's remand might have on Avista Energy. The second round
of issues and their corresponding briefig schedules have not yet been set by the Ninth Circuit.
Any potential liabilties or refuds owed by or to A vista Energy in the Californa Refud Proceeding were retained by A vista Corp.
and/or its subsidiares and have not been tranferred to Shell Energy and/or its affliates.
Because the resolution of the Californa refud proceeding remain uncertin, legal counel canot express an opinon on the extent, if
any, of the Company's liability. However, based on inormtion curently known to the Company's mangement, the Company does
not expect that the Californa refud proceeding will have a material adverse effect on its ficial condition, results of operations or
cash flows. Ths is priarly due to the fact that FERC orders have stated tht any refuds will be nettd against unpaid amounts owed
to the respective pares and the Company does not believe tht refuds would exceed unpaid amounts owed to the Company.
Pacif Northwest Refund Proceeding
In July 2001, the FERC intiated a prelim evidentiar hearg to develop a factual record as to whether prices for spot market
sales of wholesale energy in the Pacific Nortwest between December 25,2000, and June 20, 2001, were just and reasonable. Dung
the hearg, Avista Corp. and Avista Energy vigorously opposed claims that rates for spot market sales were unjust and uneasonable
and that the imposition of refuds would be appropriate. In June 2003, the FERC termated the Pacific Nortwest refud
proceedings, after fiding that the equities do not justify the imposition of refuds. These equitable factors included the fact that the
parcipants in the Pacific Nortwest market include not only utilities and other entities that are subject to FERC jursdiction, but also a
very substatial number of governental entities that are not subject to FERC jursdiction with respect to wholesale sales and thus
could not be ordered by the FERC to mae refuds based on existig law. Seven petitions for review were filed with the Ninth Circuit
challengig the merits of the FERC's decision not to order refuds and raising procedural issues.
On Augut 24, 2007, the Ninth Circuit issued its opinon on the consolidated petitions for review of the Pacific Nortwest refud
proceeding. The Ninth Circuit found tht the FERC, in denyig the request for refuds, had failed to tae into account new evidence
of maket mapulation in the Californa energy maket and its potential ties to the Pacific Nortwest energy market and that such
failure was arbitrary and capricious and, accordigly, remaded the case to the FERC, statig tht the FERC's fidigs must be
reevaluated in light of the evidence. In addition, the Ninth Circuit concluded that the FERC abused its discretion in denyig potential
relief for tranactions involvig energy that was purchaed in the Pacific Nortwest and ultiately consumed in Californa. The Ninth
Circuit expressly declined to direct the FERC to grt refuds. Requests for rehearg were fied on December 17, 2007.
Both Avista Corp. and Avista Energy were buyers and sellers of energy in the Pacific Nortwest energy market durg the period
between December 25,2000, and June 20,2001, and, if refuds were ordered by the FERC, could be liable to make payments, but also
could assert claim for refuds againt FERC-jursdictional entities. The opportty to make claims againt non-jursdictional entities
may be limted based on existig law. The Company canot predict the outcome of ths proceedig or the amount of any refuds that
Avista Corp. or Avista Energy could be ordered to mae or could be entitled to receive. Therefore, the Company canot predict the
I FERC FORM NO.2. (ED. 12-88)Page 123.26
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) 2S An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
potential impact the outcome of ths matter could ultiately have on the Company's results of operations, fiancial condition or cash
flows.
California Attorney General Complaint
In May 2002, the FERC conditionally dismissed a complaint fied in March 2002 by the Attrney General of the State of Californa
(Californa AG) that alleged violations of the Federal Power Act by the FERC and all sellers (including Avista Corp. and its
subsidiares) of electrc power and energy into Californa. The complaint alleged that the FERC's adoption and implementation of
market-based rate authority was flawed and, as a result, individual sellers should refud the difference between the rate charged and a
just and reasonable rate. In May 2002, the FERC issued an order dismissing the complaint but diecting sellers to re-fie certin
tranaction sumes. It was not clear that Avista Corp. and its subsidiares were subject to ths directive but the Company took the
conservative approach and re-filed certin tranaction sumares in June and July of 2002. In July 2002, the Californa AG requeste
a rehearg on the FERC order, which request was denied in September 2002. Subsequently, the Californa AG filed a Petition for
Review of the FERC's decision with the Ninth Circuit. In September 2004, 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 quarly report fied with the FERC to be
integral to a market-based rate taff. The Californa AG has interpreted the decision as providing authority to the FERC to order
refuds in the Californa refud proceeding for an expanded refud period. The Cour's decision leaves to the FERC the determation
as to whether refuds are appropriate. In October 2004, Avista Energy joined with others in seekig rehearg of the Cour's decision
to remad the case back to the FERC for fuer proceedigs. The Cour denied the request without explanation un July 31, 2006. A
petition for a wrt of certorar with the United States Supreme Cour was denied on June 18, 2007. The proceeding is now on remand
before the FERC. Based on information curently mown to the Company's maagement, the Company does not expect that ths matter
will have a material adverse effect on its fiancial condition, results of operations or cash flows.
Wah Chang Complaint
In May 2004, Wah Chag, a division ofTDY Industres, Inc. (a subsidiar of Allegheny Technologies, Inc.), fied a complaint in the
United States Distrct Cour for the Distrct of Oregon agait numerous companes, including A vista Corp., A vista Energy and A vista
Power. Ths complaint was similar to the Port of Seattle and City of Tacoma complaints (which were dismissed by the United States
Distrct Cour and the Ninth Circuit as disclosed in the Company's prior Securties and Exchange Commssion filings) and was seekig
compensatory and treble damges for alleged violations of the Sherman Act, the Racketeer Influenced and Corrpt Organzation Act,
as well as violations of Oregon state law. According to the complaint, from September 1997 to September 2002, the plaitiff
purchased electrcity from PacifiCorp puruat to a contract that was indexed to the spot wholesale maket price of electrcity. The
plaintiff alleged that the defendants, actig in concert among themelves and/or with Enron Corporation and certin affiates thereof
(collectively, Enron) and others, engaged in a scheme to defraud electrcity customers by tranmitting false market inormation in
interstate commerce in order to arficially increase the price of electrcity provided by them, to receive payment for servces not
provided by them and to otherwse mapulate the market price of electrcity, and by executig wash trades and other form of maket
manpulation technques and sham tranactions. The plaintiff also alleged tht the defendants, actig in concert among themselves
and/or with Enron and others, engaged in numerous practices involvig the generation, purchase, sale, exchange, scheduling and/or
transmission of electrcity with the purose and effect of causing a shortge (or the appearance of a shortge) in the generation of
electrcity and congestion (or the appearance of congestion) in the tranmission of electrcity, with the ultiate purose and effect of
arficially and ilegally fixing and raising the price of electrcity in Californa and thoughout the Pacific Nortwest. As a result of the
defendants' alleged conduct, the plaintiff allegedly suffered daages of not less than $30 millon though the payment of higher
electrcity prices. In September 2004, ths case was tranferred to the United States Distrct Cour for the Southern Distrct of
Californa for consolidation with other pending actions. In Februar 2005, the Cour granted the defendants' motion to dismiss the
complaint because it determed that it was without jursdiction to hear the plaintiffs complaint, based on, among other thngs, the
exclusive jursdiction of the FERC and the filed-rate doctre. In March 2005, Wah Chang filed an appeal with the Ninth Circuit. On
November 20,2007, the Ninth Circuit dismissed Wah Chg's appeal and affed the distrct cour's action. On December 3,2007,
Wah Chag filed a petition for rehearg with the Ninth Circuit. On Janua 15,2008, the Ninth Circuit denied Wah Chang's petition
for rehearg. Based on the Ninth Circuit's dismissal of ths complaint and denial of the petition for rehearg, the Company believes
tht ths complaint will not have a material adverse effect on the Company's fiancial condition, results of operations or cash flows.
State of Montana Proceedings
In June 2003, the Attorney General of the State of Montaa (Montan AG) filed a complaint in the Montaa Distrct Cour on behalf of
the people ofMonla and the Flathead Electrc Cooperative, Inc. againt numerous companes, includig Avista Corp. The complaint
alleges that the companes ilegally manipulated western electrc and natual gas markets in 2000 and 200 i. Ths case was
subsequently moved to the United States Distrct Cour for the Distrct of Montaa; however, it has since been remanded back to the
I FERC FORM NO.2 (ED. 12-88)Page 123.27
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04117/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
Monta Distrct Cour.
The Montaa AG also petitioned the Montaa Public Servce Commssion (MPSC) to fie public utilities $1,000 a day for each day it
fids they engaged in alleged "deceptive, fraudulent, anticompetitive or abusive practices" and order refuds when consumers were
forced to pay more th just and reasonable rates. In Februar 2004, the MPSC issued an order intiatig investigation of the Montaa
retail electrcity market for the purose of determg whether there is evidence of unawfl manpulation of tht maket. The
Monta AG has requested specific information from Avista Energy and Avista Corp. regarding their tranactions with the state of
Monta durg the period from Januar 1, 2000 though December 31, 2001.
Because the resolution of these proceedings rema uncertin, legal counel canot express an opinon on the extent, if any, of the
Company's liabilty. However, based on inormtion curently known to the Company's management, the Company does not expect
that these proceedings will have a material adverse effect on its ficial condition, results of operations or cash flows.
Montana Public School Trust Fund Lawsuit
In October 2003, a lawsuit was origilly fied by two residents of the state of Montaa in the United States Distrct Cour for the
Distrct of Montaa againt private owners of hydroelectrc da in Montaa, including Avista Corp. The lawsuit alleged that the
hydroelectrc facilties are located on state-owned riverbeds and the owners of the dam have never paid compensation to the state's
public school trt fud. The lawsuit requested lease payments prospectively and also requested daages for trespassing and unjust
enrchment for periods of tie datig back to the constrction of the respective dam. In May 2004, the Montaa AG filed a complaint
on behalf of the state in the Distrct Cour to join in ths lawsuit to allegedly protect and preserve state lands/school trst lands from use
without compensation. Though a series oflegal developments, the case was subsequently moved to the Montaa State Cour and the
originl plaintiff were removed from the case.
On Augut 28, 2007, the Montaa State Cour ruled on several pre-tral motions for sum judgment, finding that, as a matter of
law, the Clark Fork River was navigable and the state of Montaa own the riverbeds, tht such lands are school trst fud lads, and
therefore, the statutes oflimtations had not ru out on the state of Montaa's claim for prior dages.
On October 19, 2007, the Company reached a settement with the state of Monta resolvig ths matter. Puruat to the settement,
Avista Corp. has agreed to make lease payments in the intial amount of $4 millon per year beging Februar 1, 2008, for the
calendar year 2007, and contiuing though calendar year 2016, adjusted each year by the Consumer Price Index. On or before June
30,2016, Avista Corp. and the state of Montaa will determe whether the anual lease payments remain consistent with the
priciples oflaw as applied to the facts and negotiate an adjusted lease payment for the remaing term of Avista Corp.'s FERC license
for its hydroelectrc facilities on the Clark Fork River, which expires in 2046. If Avista Corp. and the state of Montaa do not agree on
an adjusted lease payment, the pares will engage in advisory arbitration and submit the arbitrator's recommendation to the State
Board of Lad Commssioners (Ld Board) for approval. The settement conta provisions that could reduce the amount of Avista
Corp.'s lease payments as a resut of futue judicial determtions in related cases or governenta actions. A vista Corp. will not
mae any lease payments for periods prior to 2007.
Avista Corp. and the state of Monta have received a consent decree from the Monta State Cour adoptig the terms of the
settement, and the settlement was approved by the Lad Board. The Company received approval from the WUC and the IPUC to
defer any lease payments as a reguatory asset. The Company believes that such costs will be recovered in futue rates based on
historical recovery of simlar costs.
Colstrip Generating Project Complaints
In May 2003, varous pares (all of which are residents or businesses of Colstrp, Monta) fied a consolidated complait agait the
owners of the Colstrp Generatig Project (Colstrp) in Montaa Distrct Cour. Avista Corp. own a 15 percent interest in Units 3 & 4
of Colstrp. The plaintiff allege dages to buildings as a result of rising ground water, as well as damages from contated waters
leakg from the lakes and ponds of Colstrp. The plaintiff are seekig puntive damages, an order by the cour to remove the lakes
and ponds and the forfeitue of all profits eared from the generation of Colstrp. The owners of Colstrp have underten certin
groundwater investigation and remediation measures to address groundwater contaation. These measures include improvements to
the lakes and ponds of Colstrp.
In March 2007, a group of ranchers fied a consolidated complaint againt the owners of Colstrp in Montaa Distrct Cour. The
plaitiffs allege dages to livestock, land and water from contaated waters leakg from the waste water pond of Colstrp. The
plaitiff are seekig unpecified puntive damges.
I FERC FORM NO.2 (ED. 12-88) Page 123.28
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
The complaints were consolidated and a tral date is scheduled for June 2, 2008. The Company intends to contiue to work with the
other owners of Colstrp in defense of ths consolidated complaint. Because the resolution of ths consolidated complaint remain
uncert, legal counel canot express an opinon on the extent, if any, of the Company's liability. However, based on information
curently known to the Company's management, the Company does not expect ths consolidated complaint will have a material adverse
effect on its ficial condition, results of operations or cash flows.
Colstrip Royalty Claim
Western Energy Company (WCO) supplies coal to the owners of Colstrp Units 3 & 4 under a Coal Supply Agreement and a
Transporttion Agreement. Avista Corp. own a 15 percent interest in Colstrp Units 3 & 4. The Minerals Management Servce
(MS) of the United States Deparent of the Interior issued orders to WECO to pay additional royalties concerning coal delivered to
Colstrp Units 3 & 4 via the conveyor belt. The owners of Colstrp Units 3 & 4 take delivery of the coal at the beging of the
conveyor belt. The orders assert that additional royalties are owed to MMS as a result of WECO not payig royalties in connection
with revenue received by WECO from the owners of Colstrp Units 3 & 4 under the Tranporttion Agreement durg the period
October I, 1991 though December 31,2004. WECO's appeal to the MMS for the period though 2001 was substatially denied in
March 2005; WECO appealed the orders perting to the periods up to 2001 to the Board of Land Appeals of the U.S. Deparent of
the Interior, which appeal was denied on September 12, 2007. WECO also fied an appeal with the MMS perting to the period from
2002 to 2004. The entie appeal process could take several year to resolve. The owners of Colstrp Units 3 & 4 are monitorig the
appeal process between WECO and MMS. WECO has indicated to the owners of Colstrp Units 3 & 4 that if WECO is unuccessful
in the appeal process, WECO will seek reimbursement of any royalty payments by passing these costs though the Coal Supply
Agreement. The owners of Colstrp Units 3 & 4 advised WECO tht their position would be tht these claim are not allowable costs
per the Coal Supply Agreement nor the Tranporttion Agreement in the event the owners of Colstrp Units 3 & 4 were invoiced for
these claim. Presumably, royalty and ta demands for periods oftime after the years in dispute and futue years will be determed by
the outcome of the pending proceedings. Because the resolution of ths issue remains uncertin, legal counel canot express an
opinon on the extent, if any, of the Company's liabilty. Based on inormtion curently known to the Company's maagement, the
Company does not expect tht ths issue will have a mateóal adverse effect on its fiancial condition, results of operations or cash
flows. However, the Company would most likely seek recovery, though the rate mag process, of any amounts paid.
Spokane River
The Company entered into a settement with the state of Washigton's Deparent of Ecology (DOE) and Kaiser Alumum &
Chemical Corporation (Kaiser) relating to the remediation of a contaated site on the Spokae River. The Company's involvement
with ths contaated site relates to its previous ownership of a wastewater treatment plant though A vista Development. Kaiser paid
the Company approximtely 50 percent of the estiated total costs. Under the direction of the Company, work under the Cleanup
Action Plan was substatially completed in 2007.
Northeast Combustion Turbine Site
In Augut 2005, a diesel fuel spil occured at the Company's Norteast Combustion Turbine generatig facility (Norteast CT)
located in Spokane, Washigton. The Norteast CT site had fuel storage facilties that were leased to Co-op Supply, Inc., an affliate
of Cenex Cooperative (Co-op). The Company imediately commenced remediation effort, including the removal of contaated
soil and the related fuel storage facilties. The Company accrued the estiated cleanup costs durg 2005, which was not material to
the Company's ficial condition or results of operations. Though mediation the Company recovered a substatial porton of the
cleanup costs from Co-op and an engineerig fi in the four quarr of 2006. The Company's estiate of its liabilty could change
in futue periods. Based on inormation curently known to the Company's management, the Company does not believe tht such a
change would be material to its fiancial condition, results of operations or cash flows.
Harbor on Inc. Site
Avista Corp. used Harbor Oil Inc. (Harbor Oil) for the recycling of waste oil and non-PCB tranformer oil in the late 1980s and early
1990s. In June 2005, the Envionmental Protection Agency (EPA) Region 10 provided notification to A vista Corp., as a customer of
Harbor Oil, that the EPA had determed tht haardous substaces were released at the Harbor Oil site in Portand, Oregon and tht
A vista Corp. may be liable for investigation and cleanup of the site under the Comprehensive Envionmental Response, Compensation,
and Liabilty Act, commonly referred to as the federal "Superfd" law. The intial indication from the EPA is that the site may be
contaated with PCBs, petroleum hydrocarbons, chloriated solvents and heavy metals. Six potentially responsible pares,
includig A vista Corp., signed an Admstrative Order on Consent with the EPA on May 31, 2007 to conduct a remedial investigation
and feasibility study (RIS). The total cost of the RIS is estiated to be $0.6 millon and will tae approximtely 2 1/2 year to
I FERC FORM NO.2 (ED. 12-88) Page 123.29
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation I (2) A Resubmission 04172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
complete. The actul cleanup, if any, wil not occur unti the RIS is complete. Based on the review of its records related to Harbor
Oil, the Company does not believe it is a major contrbutor to ths potential envionmental contation based on the relative volume
of waste oil delivered to the Harbor Oil site. However, there is curently not enough inormtion to allow the Company to assess the
probability or amount of a liabilty, if any, being incured. As such, it is not possible to mae an estite of any liabilty at ths tie.
Lake Coeur d'Alene
In July 1998, the United States Distrct Cour for the Distrct ofIdaho issued its fiding tht the Coeur d Alene Tribe ofIdaho (Tribe)
own, among other thgs, portons of the bed and ban of Lae Coeur d'Alene (Lae) lyig with the curent boundaes of the
Coeur d'Alene Reservation. Ths action had been brought by the United States on behalf of the Tribe against the state ofIdaho. The
Company wa not a par to ths action. The United States Distrct Cour decision was affed by the Ninth Circuit. The United
States Supreme Court affed ths decision in June 200 i. This ownershp decision will result in, among other thgs, the Company
being liable to the Tribe for compensation for the use of reservation lands under Section 10(e) of the Federal Power Act.
The Company's Post Falls Hydroelectrc Generatig Station (post Falls), a facility constrcted in 1906 with anual generation of 10
aMW, utilizes a da on the Spokae River downtr of the Lae which controls the water level in the Lae for portons of the year
(including portons of the lakebed owned by the Tribe). The Company has other hydroelectrc facilities on the Spokae River
downstream of Post Falls, but these facilties do not affect the water level in the Lae. The Company and the Tribe are engaged in
discussions related to past and futue compensation (which may include interest) for use of the portons of the bed and ban of the
Lae, which are owned by the Tribe. If the pares canot agree on the amount of compensation, the matter could result in litigation.
The Company canot predict the amount of compensation that it will ultiately payor the terms of such payment. The Company
intends to seek recovery, though the rate makg process, of any amounts paid.
Spokane River Relicensing
The Company own and operates six hydroelectrc plants on the Spokae River, and five of these (Long Lake, Nine Mile, Upper Falls,
Monroe Street and Post Falls, which have a total present capability of 155.7 MW) are under one FERC license and are referred to as
the Spokane River Project. The sixth, Litte Falls, is operated under separate Congressional authority and is not licensed by the FERC.
Since the FERC was unable to issue new license orders prior to the August 1,2007 expiration of the curent license, an anual license
was issued, in effect extendig the curent licene and its conditions unti Augut 1,2008. The Company has no reason to believe tht
Spokae River Project operations will be interrpted in any maer relative to the tig of the FERC's actions.
The Company fied a Notice of Intent to Relicense in July 2002. The form consultation process involving plang and inormation
gatherig with staeholder groups has been underway since tht tie. The Company fied its new license applications with the FERC
in July 2005. The Company requested the FERC to consider a license for Post Falls, which has a present capability of 18 MW, tht is
separate from the other four hydroelectrc plants because Post Falls presents more complex issues that may take longer to resolve than
those relatig to the rest of the Spokae River Project. If granted, new licenses would have a term of 30 to 50 years. In the license
applications, the Company proposed a number of measures intended to address the impact of the Spokae River Project and enhce
resources associated with the Spokae River.
Since the Company's July 2005 fiing of applications to relicense the Spokae River Project, the FERC has contiued varous stages
of processing the applications. In May 2006, the FERC issued a notice requestig other paries to provide term and conditions
regardig the two license applications. In response to tht notice, a number of pares (including the Coeur d Alene Tribe, the state of
Idao, Washigton state agencies, and the United States Deparent ofInterior (DOl)) filed either recommended term and
conditions, pursuat to Sections i O(a) and 10(j) of the Federal Power Act (FP A), or mandatory conditions related to the Post Falls
application, pursuat to Section 4( e) of the FP A. The Company's intial estiate of the potential cost of the conditions proposed for
Post Falls total between $400 million and $500 millon over a 50-year period. For the rest of the Spokae River Project, which is
located in Washigton, the Company's intial estite of the cost of meetig the recommended conditions, should they be included in
a fial license, totaled between $175 millon and $225 millon over a 50-year period. These cost estites were based on the
prelimar conditions and recommendations.
The Company requested a tral-tye hearg in front of an Admstrtive Law Judge (AU on facts related to the DOl's mandatory
conditions for Post Falls. In Janua 2007, the AU issued his ruling regarding the Company's challenge of the facts. The Company
believes that the AL's fidigs supported, in several key areas, its anysis of the facts at had. The ALl's factual fidings also
supported the DOl's analysis in cert areas as well.
The DOl issued fil mandatory conditions for Post Falls on May 7, 2007, which reflected the fidigs of the AL. Most signficantly,
I FERC FORM NO.2 (ED. 12-88)Page 123.30
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo. Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
the DOl dropped an earlier proposed fishery condition. However, the DOl increased obligations tht the Company could incur in other
areas, such as wetlands restoration.
In July 2007, the FERC issued a Finl Envionmental Impact Statement (pElS) after review and consideration of comments. Ths is
the last admstrative step for the FERC before the issuance oflicense orders; however, the FERC canot proceed until several other
matters are resolved, including Clean Water Act and Endagered Species Act issues as disclosed below. The Company contiues to
review the FEIS and related documents. Whle the Company believes the ultiate cost of relicensing will be less th its earlier
projections as disclosed above, the Company has not developed specific new cost estiates at ths point.
The relicensing process also trggers review under the Endangered Species Act. In the FElS, the FERC analyzd potential project
impacts on listed and theatened endagered species, and has determed that the proposed action and contiued operation of Post
Falls and the rest of the Spokae River Project is not likely to adversely affect any theatened or endangered species. The Company
prepared a draft Biological Assessment in 2005. The FERC ha issued a Biological Assessment and formally requested concurence
from the United States Deparent ofFish and Wildlife Service (USFWS). The USFWS responded by letter, concurg with regards
to bald eagles, and requestig additional inormation regarding bull trout. The Company fied a supplemental report to address the
USFWS information request. The Company has continued informl consultation with the USFWS. If the FERC initiates forml
consultation with the USFWS, additional evaluation wil be requied by the Company.
In addition, the Company must receive Clean Water Act Certfications from the states ofIdaho and Washigton for the Spokae River
Project. Applications for such certfication were fied in July 2006 with each state. Both Idao and Washigton communcated to the
Company that they were unble to complete the certfications with one year as mandated by the Clean Water Act. Subsequently, the
Company withdrew these applications and re-fied for certfication in June 2007. The FERC is precluded from issuing a license order
until such certfications are issued, or waived, by the states. The Company canot predict the schedule for these fil phases of
relicensing.
The total anual operatig and capitalized costs associated with the relicensing of the Spokae River Project will become better
known and estimable as the process continues. The Company intends to seek recovery, though the rate makg process, of all such
operatig and capitalized costs.
Clark Fork Settement Agreement
Dissolved atmospheric gas levels exceed state ofIdaho and federal water quality stadards downtream of the Cabinet Gorge
Hydroelectrc Generatig Project (Cabinet Gorge) durg periods when excess river flows must be diverted over the spilway. Under
the term of the Clark Fork Settlement Agreement, the Company developed an abatement and mitigation strategy with the other
signatories to the agreement and completed the Gas Supersatuation Control Program (GSCP). The Idaho Deparent of
Envionmental Quality and the USFWS approved the GSCP in Febru 2004 and the FERC issued an order approvig the GSCP in
Janua 2005.
The GSCP provides for the openig and modification of one and, potentially, both of the two existig diversion tuels built when
Cabinet Gorge was origially constrcted. When river flows exceed the capacity of the powerhouse tubines, the excess flows would
be diverted to the tuels rather than released over the spilway. The Company has undertaken physical and computer modeling
studies to confi the feasibility and likely effectiveness of the tuel solution. Anlysis of the predicted total dissolved gas (TOG)
performance indicates that the tuels will not meet the performance criteria anticipated in the GSCP. In Augut 2007, the Gas
Supersatuation Subcommttee concluded tht the tuel project does not meet the expectations of the GSCP and is not an acceptable
project. As a result, the Company will contiue meeting with key staeholders to review and amend the GSCP which includes
developing alterntives to the constrction of the tuels. The Company intends to seek recovery, though the rate makg process, of
the costs to address the dissolved atmospheric gas levels.
The USFWS has listed bull trout as theatened 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 maagement and workig closely
with the USFWS, 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 pares determe the best use of fuds toward continuing fish passage effort or other bull
trout population enhancement measures.
Air Quality
The Company must be in compliance with requiements under the Clean Ai Act and Clean Ai Act Amendments for its therml
generatig plants. The Company contiues to monitor legislative developments at both the state and national level for the potential of
I FERC FORM NO.2 (ED. 12-88) Page 123.31
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1) ~ ,An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
fuer restrctions on sulfu dioxide, nitrogen oxide, carbon dioxide, as well as other greenhouse gas and mercur emisions.
In parcular, the EPA filied mercur emission regutions tht will affect coal-fied generation plants, including Colstrp. The new
EPA regulations establish an emission trdig program to tae effect begig in Janua 20 I 0, with a second phase to tae effect in
2018. In addition, in 2006, the Montaa Deparent of Envionmental Qulity (DEQ) adopte fial rules for the control of mercur
emissions from coal-fied plants tht are more restrctive th EPA regutions. The new rules set strct mercur emission limts by
2010, and put in place a recurg ten-year review process to ensure facilties are keeping pace with advancing technology in mercur
emission control. The rules also provide for temporar alternte emission limts provided certin provisions are met, and they allocate
mercur emission credits in a maner that rewards the cleanest facilities. In Februar 2008, the United States Cour of Appeals for the
Distrct of Columbia overted the EPA's mercur emissions regulations. However, ths ruling is not expected to affect the
Company's curent plans to comply with the more restrctive regulations adopted by the Monta DEQ as described below.
Compliance with these new and proposed requirements and possible additional legislation or regulations will result in increases to
capital expenditues and operatig expenses for expanded emission controls at the Company's therml generatig facilities. The
Company, along with the other owners of Colstrp, completed the fist phase of testig on two mercur control technologies. Although
the mercur reduction tagets as madated by the Monta DEQ have not been achieved, the owners of Colstrp are encouraged with
the prelimar results and believe it should be possible to achieve the requied emissions levels with fuer mercur control system
optimzation. Prelimar estimates indicate tht the Company's shae of intallation capital costs would be $1. millon and anual
operations and maintenace costs would increase by $2.8 millon (beging in mid-2009). The Company will contiue to seek
recovery, though the rate makg process, of the costs to comply with varous air quality requiements.
Residential Exchange Program
The residential exchage program is intended to provide access to the benefits of low-cost federal hydroelectrcity to residential and
small-far customers of the region's private (investor owned) and public utilities (governental or customer owned). The Bonnevile
Power Admstration (BPA) admsters the residential exchange progr under the Nortwest Power Act. Previously, Avista Coip.
and other private utilities in the Pacific Nortwest executed settement agreements with BP A to resolve each par's rights and
obligations under the residential exchage program. These settements covered payment of benefits for the period October I, 2001,
though September 30, 2011. The payments A vista Coip. received under the agreements with the BP A were passed though to its
residential and small-far customers via a credit to their monthy electrc bils.
Several public utilities and other pares filed suit againt the BP A in the Ninth Circuit, challenging the validity of the agreements
between Avista Coip. and the BPA, as well as BPA's agreements with other private utilities. On May 3,2007, the Ninth Circuit ruled
tht the BP A exceeded its authority when it entered into the settement agrements with private utilties (including A vista Coip.) for the
period from 2001 though 2011. The BPA concluded tht the Ninth Circuit's decisions created substantial doubt about whether its
certfyg offcial could allow contiuation of payments under the settement agreements. Consequently, on May 21, 2007, the BP A
notified A vista Coip. and other private utilities that it was imediately suspending payments the BP A made to them pursuant to the
settlement agreements. In its May 2 i, 2007 notice, the BP A indicated that the suspension of payments would contiue at least until
any requests for rehearg were fied and the Ninth Circuit issued fial decisions on those requests for rehearg. On July 18,2007
Avista Coip. and numerous other pares, including the Public Utility Commssion of Oregon and the WUC, filed petitions for
review, and review en banc, in the Ninth Circuit, challenging the ruling of the panel that strck down the settement agreements. The
Ninth Circuit subsequently denied these requests. Thee private utilities, including Avista Coip., fied a petition for wrt of certorar
with the United States Supreme Cour.
With approval from the WUC and the IPUC, A vista Coip. elimated the credit associated with the settlement agreements with the
BPA from its customers' monthy electrc bils. Avista Coip. has an over-refuded balance of approximately $4.0 millon ($3.3
milion in Washigton and $0.7 milion in Idaho) because of the tig of payments received from the BP A and allocation of those
fuds to customers based on seasona demand. When the existig rate credt was established it was projected tht the balancing
account would reach zero at the end of the contract year (October 2007). Avista Coip. is recoverig the over-refud in Idaho though
an approved surchage to customers, and expects to ultiately recover the over-refud in Washigton, either though a chage to
customers or futue payments from the BP A.
Beging in June 2007, the region's private and public utilities worked toward an agreement that would identify an appropriate level
of benefits for customers served by the private utilities, including the resolution of outstading legal issues associated with the May 3
Ninth Circuit opinons. The BP A is workig on a long-term resolution of residential exchage issues as par of its 2009 rate case. In
addition to resolving residential exchange issues for the long-term, the BPA has also proposed an interi payout of $336 millon to
private utilities for its fiscal ear 2008, to be aid out dur the eriod A ril 1,2008 to Se tember 30,2008. If interi contracts can
FERC FORM NO.2 ED. 12.88 Page 123.32
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
be successfully executed, the porton of ths payout that would benefit Avista Corp.'s customers would have no impact on Avista
Corp.'s net income.
Since the residential exchage settlement payments were passed though to Avista Corp.'s customers as adjustments to electrc bils,
the suspension of payments from the BP A is not expected to have any effect on A vista Corp.' s net income. There is curently not
enough inormation to allow A vista Corp. to assess the probabilty or amount of any potential liability that may be incured related to
any issues regarding payments made to Avista Corp. pursuat to the settement agreements. Since 2001, Avista Corp. passed though
to its customers approximtely $70 millon puruat to the settement agreements.
Other Contingencies
In the norml course of business, the Company has varous other legal clai and contigent matters outstading. The Company
believes that any ultite liability arsing from these actions will not have a material adverse impact on its ficial condition, results
of operations or cash flows. It is possible tht a chage could occur in the Company's estiates of the probabilty or amount of a
liabilty being incured. Such a chage, should it occur, could be signficant.
The Company routiely assesses, based on in-depth studies, expert analyses and legal reviews, its contigencies, obligations and
commtments for remediation of contaated sites, including assessments of ranges and probabilties of recoveries from other
responsible pares who have and have not agreed to a settlement and recoveries from inurance carers. The Company's policy is to
accrue and charge to curent expense identified exposures related to envionmental remediation sites based on estites of
investigation, cleanup and monitorig costs to be incured.
The Company has potential liabilities under the Federal Endangered Species Act for species offish that have either already been added
to the endangered species list, been listed as "theatened" or been petitioned for listing. Thus far, measures adopted and implemented
have had mial impact on the Company.
Under the federal licenses for its hydroelectrc projects, the Company is obligated to protect its propert rights, includig water rights.
The State of Monta is examg the statu of all water right claim with state boundares. Clais with the Clark Fork River
basin could potentially adversely affect the energy production of the Company's Cabinet Gorge and Noxon Rapids hydroelectrc
facilties. The Company is paricipating in ths extensive adjudication process, which is unikely to be concluded in the foreseeable
futue.
As of December 31, 2007, the Company's collective bargaing agreement with the International Brotherhood of Electrcal Workers
represented approximtely 50 percent of all of Avista Corp.'s employees. The agreement with the local unon in Washigtn and
Idaho representig the majority (approximately 90 percent) of the bargaing unt employees expires in March 2009. Thee local
agreements in Oregon, which cover approximtely 50 employees, expire in Apri 2010.
NOTE 25: POTENTIA HOLDING COMPAN FORMTION
At the 2006 Anual Meeting of Shareholders in May 2006, the shaeholders of Avista Corp. approved a proposal to proceed with a
statutory share exchange, which would change the Company's organzation to a holding company strctue. The holding company,
curently naed AVA Formation Corp. (A V A), would become the parent of A vista Corp. After the contemplated dividend to A V A of
the capital stock of A vista Capita (A vista Capita Dividend) now held by A vista Corp., A V A would then also be the parent of A vista
CapitaL. The A vista Capita Dividend would effect the strctual separtion of A vista Corp.' s non-utility businesses from its regulated
utility business.
Avista Corp. received approval from the FERC in April 2006 (conditioned on approval by the state regulatory agencies), the IPUC in
June 2006 and the WUC in Februar 2007. Avista Corp. has also fied for approval from the utility regulators in Oregon and
Montaa and proceedings are pending in each of these jursdictions. The statutory share exchange is subject to the receipt of the
remaing regulatory approvals and the satisfaction of other conditions. If the statutory shae exchange and the implementation of the
holding company strctue are approved by regulators on term acceptable to the Company, it may be completed sometie in 2008.
The IPUC accepted a stipulation entered into between A vista Corp. and the IPUC Staff tht sets fort a varety of conditions, which
would serve to segregate the Company's utility operations from the other businesses conducted by the holding company. The
stipulation would require Avista Corp. to maintain certin common equity levels as par of its capita strctue. Avista Corp.
commttd to increase its actul utility common equity component to 35 percent by the end of 2007 and 38 percent by the end of2008,
which is consistent with provisions of the Company's Washigton general rate case implemented on Janua 1,2006. The calculation
of the utility equity component is essentially the ratio of A vista Corp.' s total common equity to total capitalization excluding, in each
I FERC FORM NO.2 (ED. 12-88) Page 123.33
Name of Respondent This Report is:Date of Report YearlPeriod of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 041172008 2007/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
case, A vista Corp.'s investment in A vista CapitaL. The utilty equity component was approximately 45 percent as of December 31,
2007. In addition, IPUC approval would be requied for any dividend from A vista Corp. to the holding company tht would reduce
utilty common equity below 25 percent of total capitalization which, for ths purose, includes long and short-term debt, capitalized
lease obligations and preferred and common equity.
The WUC accepted a simar stipulation entered into between Avista Corp. and the WUC staff. The stipulation requires Avista
Corp. to increase its actual utility common equity component to 40 percent by June 30, 2008. In addition, WUC approval would be
required for any dividend from A vista Corp. to the holdig company that would reduce utility common equity below 30 percent of total
capitalization.
Pursuant to the Plan of Shae Exchange, a statutory share exchange would be effected whereby each outstanding shae of Avista Corp.
common stock would be exchaged for one shae of AVA common stock, no par value, so tht holders of Avista Corp. common stock
would become holders of AVA common stock and Avista Corp. would become a subsidiar of AVA. The other outstading securties
of Avista Corp. would not be affected by the statutory shae exchage, with limted exceptions for stock options and other securties
outstandig under equity compensation and employee benefit plan.
NOTE 26. INFORMATION SERVICES CONTRCTS
The Company has informtion servces contracts tht expire at varous ties though 2012. Total payments under these contracts were
$15.4 million in 2007, $12.5 million in 2006 and $12.8 millon in 2005. The majority of the costs are included in operation expenses
in the Statements of Income. Minum contractual obligations under the Company's informtion servces contracts are $14.7 millon
in 2008, $15.1 millon in 2009, $15.4 millon in 2010, $14.5 millon in 201 1 and $14.5 millon in 2012. The largest of these contracts
provides for increases due to chages in the cost of livig index and fuer provides flexibilty in the anual obligation from
year-to-year subject to a thee-year tre-up cycle.
NOTE 27. PRIOR PERIOD ADJUSTMNT
Durg preparation of the Company's Quaerly Report on Form 10-Q for the quarer ended June 30, 2007, the Company determed
that SF AS No. 106, "Employers' Accountig for Postretirement Benefits Other Than Pensions" was inadvertntly not followed in
connection with a plan under which benefits are provided to the beneficiares of former and curent executive offcers of the Company
in case of death. The Company had not previously recognzed the actual liabilty or costs relatig to th plan in its fiancial
statements since the plan's inception in 1989.
The prior period adjustments decreased retained eargs by $2.5 millon.
NOTE 28. SUPPLEMENTAL CASH FLOW INORMTION
2007
Cash paid for interest
Cash paid for income taes
$78,704,863
$28,946,776
Other Cash Flows from Operatig Activities:
Power and natual gas deferrals
Change in special deposits
Change in other curent assets
Non-cash stock compensation
ESOP dividends
Gain on sale of assets
Regulatory disallowance of debt repurchase costs
$(3,898,852)
$(1,625,942)
$(140,981)
$2,511,576
$1,045
$-
$3,849,725
2006
$94,827,987
$63,361,034
$(6,497,199)
$1,366,143
$(1,405,850)
$3,744,610
$415,596
$(99,559)
$-
, FERC FORM NO.2 (ED. 12-88)Page 123.34
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 2007/Q4
(2) ri A Resubmission 04/17/2008
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, At D HEDGING ACTIVTIES
1. Report in columns (b),(c),(d) and (e) the amounts of accmulated 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 accunted for as "fir value hedges., report the accunts affected and the related amounts in a footnote.
Line Item Unrealized Gains and Minimum Pension Foreign Currency Other
No.Losses on Available-Liabilty adjustment Hedges Adjustments
for-Sale Securities (net amount)
(a)(b)(c)(d)(e)
1 Balance of Account 219 at Beginning of
Preceding Year (63,702)(19,625,803)1,407,305
2 Preceding QtrlYr to Date Reclassifications
from Acct 219 to Net Income 80,309
3 Preceding QuarterlY ear to Date Changes in
Fair Value (16,607)3,64,702 (38,746)
4 Total (lines 2 and 3)63,702 3,64,702 (38,746)
5 Balance of Accunt 219 at End of
Preceding QuarterlYear (15,981,101)1,368,559
6 Balance of Account 219 at Beginning of
Current Year (15,981,101)1,368,559
7 Current QtrlYr to Date Reclassifications
from Acct 219 to Net Income (2,379,000)
8 Current QuarterlYear to Date Changes in
Fair Value 3,199,837 1,010,441
9 Total (lines 7 and 8)3,199,837 (1,368,559)
10 Balance of Account 219 at End of Current
QuarterlYear (12,781,264)
FERC FORM NO.2 (NEW 06-02)Page 122a
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2008
STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, A
Year/Period of Report
End of 2007/Q4
D HEDGING ACTIVITIES
Other Cash Flow Other Cash Flow Totals for each Net Income (Carried Total
Line Hedges Hedges category of items Forwrd from Comprehensive
No.Interest Rate Swaps Energy Commodity Derivatives recorded in Page 117, Line 78)Income
Accunt 219
(f)(g)(h)(i)0)
1 (6,585,553)1,568,605 23,299,148)
2 2,429,700 (546,000)1,964,009
3 809,492 (1,029,287)3,369,554
4 3,239,192 (1,575,287)5,333,563
5 3,346,361)(6,682)(17,965,585)
6 3,346,361)(6,682)(17,965,585)
7 609,000 (1,770,000)
8 3,479,861)602,318)128,099
9 3,479,861)6,682 (1,641,901)
10 6,826,222)(19,607,486)
FERC FORM NO.2 (NEW 06-02)Page 122b
Name 0 Responent
A vista Coiporation
Ths Report Is:
(1)~An Orgi
(2)DA Resubmission Apri 18, 2008 Dec. 31, 200
SUMY OF UTILIT PLAT AN ACCUMULTE PROVISIONS
FOR DEPRECIATION, AMORTITION AN DEPLETION
Lin
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Ite
aUTITY PLA
16
17
1819 Nat. Ga Lad and Lad Ri ts
20
21 Amort of Other Uti Plat
22 TOTAL in Servce terTota of li 18 tb 21)
23 Leaed to Others24 De retion
25 Amorttion and De leton
26 TOTAL Leed to Oters (Eter Tota of lies 24 and 25)
27 Held for Futue Use
28 De recation
29 Amortzation
30 TOTAL Held for Futu Use (Et. Tot. of lines 28 and 29)
31 Abandonment of Lees (Natal Gas)
32 Amort. of Plant A uisitionAdustment
TOTAL Accumulte Provision (Should agee with line 14 above)
33 (Ete Tota of lies 22, 26, 30, 31, and 32)
Tota Electrc
3,104,139,720
5,525,291
o
2,416,047,770
o
3,109,665,011 2,416,047,770
39,828
75,679,838
22,211,433
3,207,596,110
1,090,037,407
2,117,558,703
58,833,729
o
2,474,881,499
822,605,052
1,652,276,447
18,269,132 o
1,090,037,407 822,605,052
FERC FORM NO.2 (ED. 12-89)Page 200
A vista Corporation
Ths R~rt Is:
(1) ~ AnOngin
(2) D A Resubmision Apn118, 2008
ate of Report Yea 0 ReportName of Respondent
Dec. 31, 2007
SUMY OF UTITY PLA AN ACCUMTE PROVISIONS
FOR DEPRECIATION, AMORTITION AN DEPLETION (Contiued)
Ga Other (Specif)Other (Specify)Other (Specif)Common Line
No.
1
2
584,809,571 103,282,379 3
1,619,845 3,905,446 4
5
6
7
586,429,416 107,187,825 8
9
39,828 10
10,811,515 6,034,594 11
22,211,433 12
619,492,192 113,222,419 13
237,135,611 30,296,744 14
382,356,581 82,925,675 15
18,269,132
237,135,611 30,296,744 33
FERC FORM NO.2 (ED. 12-89)Page 201
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
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 entres 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 Unclassifed, and not been classified to primary accounts at the end of the year, include
Account 106, Completed Constrction Not Classified-Gas.in column (d) a tentative distribution of such retirements, on an
3. Include in column (c) and (d), as appropriate, correctons of estmated 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. Attch 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).
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
1 INTANGIBLE PLANT
2 301 Organization 0 0
3 302 Franchises and Consents 0 0
4 303 Miscellaneous Intanriible Plant 1,124,861 200,769
5 TOTAL Intanriible Plant (Enter Total of lines 2 thru 4)1,124,861 200,769
6 PRODUCTION PLANT
7 Manufactured Gas Production Plant
8 304 Land and Land RiQhts 7,628 0
9 305 Structures and Improvements 0 0
10 30 Boiler Plant EQuipment 0 0
11 307 Other Power EQuipment 0 0
12 308 Coke Ovens 0 0
13 309 Producer Gas EQuipment 0 0
14 310 Water Gas QeneratinQ eQuipment 0 0
15 311 Uquefied petroleum Qas eQuipment 60,402 0
16 312 Oil rias QeneratinQ eQuipment 0 0
17 313 GeneratinQ eQuipment-other processes 0 0
18 314 Coal, coke, and ash handlinQ eQuipment 0 0
19 315 Catalyic Cracking equipment 0 0
20 316 Other reforminQ eauipment 0 0
21 317 Punfication eQuipment 0 0
22 318 Residual refininQ eQuipment 0 0
23 319 Gas mixinQ eauipment 0 0
24 320 Other Equipment 0 0
25
26 TOTAL (Manufactured Gas Production Plant (Enter tota of lines 8-24)68,030 0
27 PRODUCTS EXRACTION PLANT
28 340 Land and Land RiQhts 0 0
29 341 Structures and Improvements 0 0
30 342 Exraction and RefininQ EQuipment 0 0
31 343 Pipe Unes 0 0
32 34 Exracted Products StoraQe EQuipment 0 0
33 345 Compressor EQuipment 0 0
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 Dec. 31, 2007
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 instrctions and the text of Account 101 and 106 wil 7. For Account 399, state the nature and use of plant included in
avoid serious omissions of respondents reported amount for this 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 conforming to the requirements of these pages.
utiit 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 properl purchased or sold, name of
distribution of amounts initally recorded in Account 102. In vendor or purchaser, and date of transaction. If proposed joumal
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 filng.
depreciation, acquisition adjustments, etc.,
Retirements Adjustments Transfers Balance at End of Year Une
d e f No.
1
0 0 0 2
0 0 0 3
0 0 1,325,630 4
0 0 1,325,630 5
6
7
0 0 0 7,628 8
0 0 0 0 9
0 0 0 0 10
0 0 0 0 11
0 0 0 0 12
0 0 0 0 13
0 0 0 0 14
60,401 0 0 0 15
0 0 0 0 16
0 0 0 0 17
0 0 0 0 18
0 0 0 0 19
0 0 0 0 20
0 0 0 0 21
0 0 0 0 22
0 0 0 0 23
0 0 0 0 24
25
26
27
0 0 0 0 28
0 0 0 0 29
0 0 0 0 30
0 0 0 0 31
0 0 0 0 32
0 0 0 0 33
FERC FORM NO.2 (ED. 12-96) Page 205
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo, Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
34 346 Gas Measurina and Reaulatina Eauipment 0 0
35 347 Other Eauipment 0 0
36 TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)0 0
37 TOTAL Natural Gas Production Plant (Enter Total of line 36)0 0
38 Manufactured Gas Production Plant (Submit Supplementary Statement)68,030 o I
39 TOTAL Production PlantCEnter Total of lines 37 and 38)68,030 0
40 NATURAL GAS STORAGE AND PROCESSING PLANT
41 Underaround Storaae Plant
42 350.1 Land 412,611 0
43 350.2 Rights-of-Way 59,812 0
44 351 Structures and Improvements 1,075,761 48,870
45 352 Wells 5,858,416 339,218
46 352.1 Storage Leaseholds and Rights 254,354 0
47 352.2 Reservoirs 203,330 0
48 352.3 Non-recoverable Natural Gas 5,971,926 0
49 353 Lines 823,423 866
50 354 Compressor Station Equipment 2,001,664 0
51 355 Measuring and Regulating Equipment 171,919 1,865
52 356 Purification Equipment 407,251 367
53 357 Other Equipment 1,685,911 32,834
54 TOTAL Underground Storage Plant (Enter Total of lines 42 thru 53)18,926,377 424,019
55 Other Storage Plant
56 360 Land and Land Rights 0 0
57 361 Structures and Improvements 0 0
58 362 Gas Holders 0 0
59 363 Purification Equipment 0 0
60 363.1 Liquefaction Equipment 0 0
61 363.2 Vaporizing Equipment 0 0
62 363.3 Compressor Equipment 0 0
63 363.4 Measuring and Regulating Equipment 0 0
64 363.5 Other Equipment 0 0
65 TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)0 0
66 Base Load Liquefied Natural Gas Terminaling and Processing Plant
67 364.1 Land and Land Rights 0 0
68 364.2 Structures and Improvements 0 0
69 364.3 LNG Processing Terminal Equipment 0 0
70 364.4 LNG Transporation Equipment 0 0
71 364.5 Measuring and Regulating Equipment 0 0
72 364.6 Compressor Station Equipment 0 0
73 364.7 Communications Equipment 0 0
74 364.8 Other Equipment 0 0
75 TOTAL Base Load Liq Nat'l Gas, Terminal and Processing Plant (lines 67-7 0 0
76 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54, 65 and 7 18,926,377 424,019
77 TRANSMISSION PLANT
78 365.1 Land and Land Rights 0 0
79 365.2 Rights-of-Way 0 0
80 366 Structures and Improvements 0 0
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.( ) A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
d e f No.
0 0 0 0 34
0 0 0 0 35
0 0 0 0 36
0 0 0 0 37
60,401 0 0 7,628 38
60,401 0 0 7,628 39
40
41
0 0 0 412,611 42
0 0 0 59,812 43
0 0 0 1,124,630 44
0 0 0 6,197,634 45
0 0 0 254,354 46
0 0 0 203,330 47
0 0 0 5,971,926 48
4,743 0 0 819,546 49
0 0 0 2,001,664 50
0 0 0 173,784 51
0 0 0 407,618 52
9,133 0 0 1,709,611 53
13,876 0 0 19,336,519 54
55
0 0 0 0 56
0 0 0 0 57
0 0 0 0 58
0 0 0 0 59
0 0 0 0 60
0 0 0 0 61
0 0 0 0 62
0 0 0 0 63
0 0 0 0 64
0 0 0 0 65
66
0 0 0 0 67
0 0 0 0 68
0 0 0 0 69
0 0 0 0 70
0 0 0 0 71
0 0 0 0 72
0 0 0 0 73
0 0 0 0 74
0 0 0 0 75
13,876 0 0 19,336,519 76
77
0 0 0 0 78
0 0 0 0 79
0 0 0 0 80
FERC FORM NO.2 (ED. 12-96) Page 207
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Oa, Yr)
Avista Corp.(J A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
81 367 Mains 0 0
82 368 Compressor Station Eauipment 0 0
83 369 Measurino and Reoulatino Eauipment 0 0
84 370 Communications Eauipment 0 0
85 371 Other Eauipment 0 0
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)°0
87 DISTRIBUTION PLANT
88 374 Land and Land Riohts 102,907 0
89 375 Structures and Improvements 734,594 38,058
90 376 Mains 253,651,450 31,749,649
91 377 Compressor Station Eauipment °0
92 378 Measurino and Reoulatino Eauipment-General 4,949,934 289,095
93 379 Measurino and Reoulatino Eauipment-City Gate 2,247,173 644,845
94 380 Services 171,735,115 6,492,982
95 381 Meters 65,729,898 7,246,631
96 382 Meter Installations °0
97 383 House Reoulators °0
98 384 House Reoulator Installations °0
99 385 Industrial Measurino and Reaulatino Station Eauipment 3,085,063 174,562
100 386 Other Propert on Customers' Premises °0
101 386 Other Eauipment 539 0
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)502,236,673 46,635,821
103 GENERAL PLANT
104 389 Land and Land Riohts 260,131 0
105 390 Structures and Improvements 2,665,643 239,683
106 391 Office Furniture and Eauipment 388,556 0
107 392 Transportation Eauipment 5,435,216 75,650
108 393 Stores Eauipment 139,445 0
109 394 Tools, Shop, and Garaae Eauipment 2,714,613 533,640
110 395 Laboratorv Eauipment 914,021 °
111 396 Power Operated Eauipment 3,691,187 82,655
112 397 Communication Eauipment 2,296,955 76,509
113 398 Miscellaneous Eauipment 31,332 0
114 Subtotal (Enter Totals of lines 104 thru 113)18,537,098 1,008,137
115 399 Other Tanoible Propert °°
116 TOTAL General Plant (Enter Totals of lines 114 and 115)18,537,098 1,008,137
117 TOTAL (Accounts 101 and 106)540,893,038 48,268,745
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)540,893,038 I 48,268,745
FERC FORM NO.2 (ED. 12-96)Page 208
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo, Da, Yr)
Avista Corp.(1 A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f)(g)No.
0 0 0 0 81
0 0 0 0 82
0 0 0 0 83
0 0 0 0 84
0 0 0 0 85
0 0 0 0 86
87
0 0 0 102,907 88
2,594 0 0 770,058 89
576,120 0 0 284,824,979 90
0 0 0 0 91
54,277 0 0 5,184,752 92
0 0 0 2,892,018 93
371,772 0 0 177,856,325 94
748,113 0 0 72,228,415 95
0 0 0 0 96
0 0 0 0 97
0 0 0 0 98
6,079 0 0 3,253,546 99
0 0 0 0 100
0 0 0 539 101
1,758,955 0 0 547,113,538 102
103
0 0 0 260,131 104
111,393 0 0 2,793,934 105
9,685 0 0 378,871 106
477,976 0 0 5,032,890 107
593 0 0 138,852 108
105,230 0 0 3,143,024 109
389 0 0 913,631 110
12,099 0 0 3,761,742 111
181,771 0 0 2,191,693 112
0 0 0 31,332 113
899,136 0 0 18,646,099 114
0 0 0 0 115
899,136 0 0 18,646,099 116
2,732,369 0 0 586,429,415 117
.0 0 0 118
0 0 0 0 119
0 0 0 0 120
2,732,369 0 0 586,429,415 121
FERC FORM NO.2 (ED. 12-96)Page 209
Name of Respondent This report is:Year Ending
( Xl An Original
Avista Corp.(J A Resubmissior Mar. 13, 208 Dec. 31, 2007
Gas Plant Held For Future Use (Account 105)
1. Report separately each properl held for future use at the end of the year having an original cost of $1,000,000 or more.Group other items of
properl held for future use.2. For
properl having an original cost of $1,000,000 or more previously used in utilty operations, now held for fuuré use, give in column
(a), in addition to other required information, the date that utiit use of such properl was discontinued, and the date the original cost was transferred
to Account 105.
Description and Location Date Originally Included Date Exected to be Used Balance at
of Properl in this Account (b)in Utilty Service End of Year
Line (a)(0)(d)
No.
1 Gas Distribution Mains and Services, Coeur d'Alene, Idaho March 2007 Unknown 39,828
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total
FERC FORM NO.2 (ED. 12-96)Page 214
Name of Respondent This report is: Date of Report Year Ending
( Xl An Original (Mo, Da, Yr)
Avista Corp. ( ) A Resubmission April 18, 2008 Dec. 31, 2007
CONSTRUCTION WORK IN PROGRESS-GAS (ACCOUNT 107)
1. Report below descriptns and baan at end of yer of and Demonstration (see Accnt 107 of the Uniform Sysem ofprojec in process of costructon (Acunt 107). Accnts).
2. Show items relating to "reseach, development, and 3. Minor projec (leSs than $1,00,00) may be groupe.
demonstration' projec last, under a caption Researc,
Construction Work in Progress-Gas Estimated Additional
Line Description of Project (Account 107)Cost of Project
No.(a)(b)(c)
1 STATE OF WASHINGTON
2
3 Minor Projects (49) Under $1,000,000 580,593 1,977,403
4
5
6 STATE OF IDAHO
7
8 Dover Gate Station 615 1,46,588
9 Minor Projects (17) Under $1,00,000 311,753 1,421,795
7 Total 1,778,341
10
11
12 STATE OF OREGON
13
_.
14 Diamond Lake Reinforce Phase 1 1,640,785 67,809
15 Minor Projects (60) under $1,00,00 3,912,378 6,722,187
16 Total 5,553,163
17
18
19 COMMON-WNID
20 2008 Deliverabilty Expansion 2,873,142 7,939,956
21 Minor Projects (1) under $1,00,00 26,276 27,472
22 2,899,418
23
24 COMMON-WNID/OR
25 Minor Projects (0) under $1,00,00 -0
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47 TOTAL 10,811,515 18,156,623
FERC FORM NO, 2 (ED. 12-96)Page 216
Name of Resndet Ths Rqirt Is:Date of Report Yea of Report
(l) I! An Ongi (Mo, Da, Yr)
Avista Corporation
(2)0 A Resubmision 18-Ap-08 lDecember 31, 2007
ACCUTE PROVISION FOR DEPRECITION OF GAS UT PLA (Acunt 108)
1. Exla in a footnote any import adjustments the redet ha a signt amount of plat re at
durg yea.yea en which ha not bee rerded and/or clasifed to
2. Exla in a footnote any diere betee the amount the varous reene fuctiona clasifcations, mae
for book cost of plat re lie 11, colum (c), and tht preli closing entres to tetatively fuctiona the
report for gas pla in senice, pages 20-20, colum (d),book cost of the plat retied In addition, include al costs
excludig reents of non-depeciable prpe.includ in rett work in prgrs at yea en in the
3. The provisions of Accunt 108 in the Uniorm Syste appoprte fuctina clasifcations.
of Accunts reuie tht retients of deprecable plat 4. Show separtely intet crets unde a sin fund
be recrded whe such plat is reoved frm serce. H or sim methd of depreiation accounti.
Section A. Balce and Ch!!es Dur!! Yea
Lie Ite Tota Ga Plat in Gas Plat Held Gas Plt Leaed
No.(c+d+e)Serice for Futu Use to Others
fa)fb)fc)fd)fe)
1 Balce Beci of Yea 205,06,505 205,066,505
2 Depreciation Prvision for Yea,
Chamedto
3 (403) Depreiation EXene 15873,669 15,873669
4 (413) Ex. of Gas P1t. Le. to Other
5 Trporttion EXenses-Clea 296,174 296,174
6 Other Oea2 Accounts
7 Other Accunts (Snecif):
8 Traer to common (tranporation clea)0
9 TOTAL Depec. Prv. for Yea 16,169,843 16,169,843
(Ete Tota of lies 3 th 8)
10 Net Ches for Plat Ret:
11 Book Cost of Plat Reti 2,732,368 2,732,368
12 Cost of Removal 235,074 235,074
13 Salva2e (Cret)108.90 10890
14 TOTAL Net Chs. for Plant Ret.2,858,533 2,858,533
(Ete Tota of lies 11 th 13)
15 Other Debit or Cret Ite (Descnoe)(249,870)(249,870'
16
17 Balce End of Yea (Ete
Tota of lies 1,9, 14, 15, and 16)218,127,945 218,127,945 0 0
Secon B. Balances at End of Yea Accrd2 to Functiona Clasifcation
18 Prduction-Maufactued Ga (135,137)(135.137)
19 Prd. an Gather2-Natu Ga
20 Prducts Extrction-Natu Ga
21 Underl!ii Ga Stora2e 10,273,923 10,273,923
22 Other Stora2e Plat
23 Base Load ING Tei and Prc. Pit.
24 Trmision 0
25 Distrbution 20,085,470 20,085,470
26 Gener 7,903,689 7,903689
27 TOTAL (Ete Tota of lies 18 218,127,945 218,127,945 0 0
th261
FERC FORM NO.2 (ED. 12-87)Page 219
Name of Respondent This Report Is:Date of Report Year of Report
18 An Original (Mo,Da, Yr)
Avista Corporation o A Resubmission April 18, 2008 Dec. 31. 2007
GAS STORED (ACCOUNT 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, AND 164.3)
1 If durring the year adjustments were made to the stored gas inventory 3 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
ina Description 117.1)117.2)(Account 117.3)117.4)(Account 164.1)(Account 164.2 (Account 164.3)Total
No.(a)(b)(0)(d)(e)(I)(g)(h)(i)
1 Balance at Beginning of Year 11,905,319 1,00,820 12,912,139
2 Gas Delivered to Storage 16.142.335 0 16,142.335
3 Gas Withdrawn from Storage 14,511,535 1,00.820 15,518,355
4 Other Debits and Credits (121,883)0 (121,883)
5 Balance at End of Year 13,414.236 0 13,414,236
6 Dth 2,921.345 0 2,921,345
7 Amount Per Dekatherm $4.5918 $0.~~$4.5918
8 Storage is reported using the inventory method.
FERC FORM NO.2 (REV 04-04)Page 220
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmission 04117/2008
INVESTMENTS IN SUBSIDIARY COMPANIES Accunt 123.1)
1.Report below investments in Accunts 123.1, investments in Subsidiary Companies.
2. Provide a subheading for each company and List there under the information called for below. Sub - TOTAL by company and give a TOTAL in
columns (e),(f),(g) and (h)
(a) Investment in Securities - List and descrbe 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 settement. With respect to each advance show whether the advance is a note or open accunt. List each note giving date of issuance, maturity
date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed subsidiary eamings since acquisition.The TOTAL in column (e) should equal the amount entered for
Accunt 418.1.
ine -oescnption of Investment Date Acquired Date Of . Amount Of _investment at
No.(a)(b)
MalcWity Beginning of Year
(d)
1
2 Avista Capital - Common Stock 1997 184,251,609
3 Avista Capital - Equity in Eamings 61,577,075
4 OCI Investment in Subs 1,361,877
5 Avista Capital - Other Changes in Net Investment
6 Avista Capital - Other Changes in Net Investment
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42 IITotal Cost of Accunt 123.1 $01 TOTAL 247,190,561
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 2007/Q4
(2) 0 A Resubmission 04/17/2008
INVESTMENTS IN SUBSIDIARY COMPANIES (Accunt 123.1) (Continued)
4. For any securities, notes, or accounts that were pledged designate such securities, notes, or accunts 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 accunt if difference from cost) and the sellng price thereof, not including interest adjustment includible
in column (t).
8. Report on Line 42, column (a) the TOTAL cost of Accunt 123.1
Equity in Subsidiary Revenues for Year Amount of Investment at Gain or LosS trom investment Line
Earnin~i)of Year (t)
End tifYear DiSP?~td of No.g)
1
184,251,609 2
.....yti...
...-161,000,000 -103,783,905 3t.,...
-1,361,887 4
..f;i.............ti.;~.;.......~-11,378,300 5
..'Y ;.t/ ."'''''.01:''2,281,868 6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
-4,360,980 -171,458,319 71,371,272 42
FERC FORM NO.2 (ED. 12-89)Page 225
Name of Respondent This report is:Date of Report Year Ending
( Xl An Onginal (Mo, Da, Yr)
Avista Corp.(1 A Resubmission March 14, 2007 Dec. 31, 2007
PREPAYMENTS (ACCOUNT 165)
1. Report below the particulars (details) on each prepayment.
Line Nature of Prepayment Balance at End of
No.Year(in dollars)
(al (b)
1 Prepaid Insurance 4,030,464
2 Prepaid Rents -
3 Prepaid Taxes -
4 Prepaid Interest -
5 Miscellaneous Prepayments 2,408,238
6 TOTAL 6,438,702
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 2007/Q4
(2) n A Resubmission 041172008
o HER REGULATORY ASSETS (Accunt 182.3)
1. Report below the particulars (details) called for conc~ming 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 wrmen on uunng wntten on uunng Current QuarterNear
Current the QuarterNear the Period.
QuartrN ear Accunt Charged Amount
(a)(b)(c)(d)(e)(f)
1 FAS 106. Post Retirement Benefrts (182300)2,836,512 107/926 472,752 2,363,760
2 Guaranteed Residual Value Airplane (182301)1,828,00 1,826,000
3 FAS 158. Post Retirement Liabilty (182305)54,192,195 Various 3,186,072 51,00,123
4 FAS 109. Utilit Plant (182310)97,259,975 4,801,483 102,061,458
5 FAS 109 - DSIT Non-Plant (182315)3,05,796 3,050,796
6 FAS 109. DFIT State Tax Credit (182316)3,972,764 3,972,764
7 FAS 109. WNP3 (182320)8,929,265 283180 325,496 8,603,769
8 Decoupling (182328 & 182329)225,167 22,167
9 Automated Meter Reading (182330)16,073,389 7,314,36 23,387,754
10 RTO Deposit-ID (182340)35,029 560350 70,806 283,223
11 BPA Residential Exchange (182345)2,33,387 1,50,629 3,836,996
12 BPA Residential Exchange . Interest (182345)45,90 115,953 161,862
13 ERM Approved for Reg Recovery (182350)70,27,235 28,268,387 41,958,848
14 New Generation Install (182370)184,236 407370 184,236
15 Wartila Units (182372)3,496,997 407380 153,132 3,343,865
16 Mark-To-Market ST (182374)62,65,144 175/244 55,478,724 7,17,420
17 FAS 143 - ARO (182376)3,291,99 108/230 206,871 3,085,123
18 DSM Lost Margin (182380)(1,472,856)1,472,856
19 Workers Compensation (182383)2,424,56 426,461 2,851,024
20 CS2 Levelized Return (18238)99,483 277,292 1,267,775
21 Idaho PCA Deferral.l (182385)7,516,287 7,516,287
22 Idaho PCA Deferral.2 (182386)13,646,762 13,646,762
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44 TOTAL 323,816,437 46,150,815_88,346,476 281,620,776
FERC FORM NO.2 /3-Q (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 2007/Q4
(2) Ei A Resubmission 041171008
M SCELLANEOUS DEFFERED DEBITS (Accunt 186)
1.Report below the particulars (details) called for conceming miscllaneous 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 ~çcount.Amount End of Year
CharRed
(a)(b)(c)(d (e)(f
1
2 Colstrip Common Fac.1,110,999 406 1,110,999
3 Regulatory Asset-Decoupling def 594,442 594,442
4 WA Deferred Power Costs -68,246 16,633,141 16,564,895
5 WA ERM YTD Company Band 2,601,664 5,880,977 8,482,641
6 WA ERM YTD Contra Accunt -2,601,664 5,880,977 -8,482,641
7 Regulatory Asset ROT Deposit 711,960 158,213 553,747
8 Regulatory Asset-Mt lease pvmt 1,366,800 1,366,800
9 Regulatory Asset-Mt lease pymt 2,633,200 2,633,200
10 Colstrip Common Fac.2,355,642 406 2,355,642
11
12 ID Deferred Power 96,422,897 VAR 96,422,897
13 ID Accumulated Surcharge Am -87,065,618 87,065,618 557
14
15 Payroll Accrual 899,708 VAR 885,686 14,022
16 Payroll Loading Clearing
17 Plant Allocation of clrg jrls -2,025,687 3,063,852 1,038,165
18
19 Misc Error Suspense -180,812 179,774 VAR -1,038
20
21
22 Misc SUSD acct-non w/o 200,000 200,000
23 Unamortized AiR sale 14,187 6,084 8,103
24
25 IntanQible Pension Asset
26
27 Nez Perce Settlement 192,021 557 5,212 186,809
28 Misc Deferred Debit Centralia 623,503 33.326 656,829
29 Centralia Mine Env Balance
30
31
32 ID Panhandle Forest Use Permit 182,611 24,813 207,424
33 Metro-Sunset 115KV TE 312,998 38,508 351,506
34 Incremental trans costs 383,236 383,236
35 UPRR Permit Conv 333,108 477 333,585
36 Insurance Recvy CDA Lake 145,090 16,901 161,991
37 Corp reorg stk iss. costs 118,086 VAR 118,086
38
39
40
41 Nez Perce Permit Conversion 562,448 563,412 .964
42
43
44 Misc Work Orders c:$50,OOO 38,956 88,890 127,846
45 Subsidiary Bilings 3,724,886 VAR 1,599,178 2,125,708
46 'Null" Projects directly to 186 -378,778 383,236 4,458
47 Misc. Work in Progress
48 ; ueTerrea Keguiatory Comm.
Expenses (See pages 350 - 351)
49 TOTAL 31,297,127 40,642,265
FERC FORM NO.2 (ED. 12-94)Page 233
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) DA Resubmission 041172008
M SCELLANEOUS DEFFERED DEBITS (Accunt 186)
1.Report below the particulars (details) called for conceming miscellaneous deferred debits.
2.For any deferred debit being amortized, show period of amortization in column (a)
3. Minor item (1% ofthe 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 ACCUnI.Amount End of Year
Char~ed
(a)(b)(c)(d (e)(f)
1 Conservation
2 Regulatory Assets Consv 3,84,350 1,280,293 2,564,057
3 Oregon Gas Comm Consvt 34,384 5,676 40,060
4
5 Oregon Common Gas Eft 412,435 2,343 414,778
6 WPNG HE Wtr Htrs-Oregon 572,229 311,704 260,525
7 WPNG HE Fumaces 3,836,397 1,714,517 2,121,880
8
9 WPNG OR Res Low 1 359,746 908 16,768 342,978
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32 Enerav Star Homes 136,212 139,447 275,659
33 Energy Star Manufactored Homes 7,062 9,163 16,225
34 HE Washing Machines 55,312 40,38~95,701
35 Regulatory Assets Consv 455,839 101,144 354,695
36 Regulatory Assets Consv 1,120,436 336,413 784,023
37 Conservation Rate Credit 286,095 286,095
38 Conservation Rate Credit CRC 122,612 122,612
39 Regulatory Assets Conservation 154,919 154,919
40
41 Dry Creek Transport 364,432 364,432
42 Glendale Cust Premises Equip 183,65.1 183,654
43 Lake CDA Issues 1,626,077 324,547 1,950,624
44 Shareholder Lawsuit 2002 14,746 8,94 5,800
45
46
47 Misc. Work in Progress
48 IlJeterreo RegulaTory COmm.
Expenses (See pages 350 - 351)
49 TOTAL 31,297,127 40,642,265
FERC FORM NO.2 (ED. 12-94)Page 233.1
Name of Respondent ThisR~:
(1) W An Orginal
Date of Reprt Yea of Reprt
(M D, Y)
AvistaCorp (2)D A Resubmission 4/1812008 1213112007
ACCUMATED DEFERRD INCOME TAXS (ACCOUN 190)
I. Reprt the information called for below conceng the
respondent's accounting for defered income taes.
2. At Other (Speify), include deferls relating to
other income and deductions.
3. At lines 4 and 6, add rows as necessar to report
all data Numbe the additional rows in sequence
4.01,4.02, etc. and 6.01, 6.02, etc.
CHANGES DURIG YEAR
Line Balance at Amounts Amounts
No.Account Subdivisions Beginning of Yea Debited to Credited to
Account 4 10. I Account 4 I 1.
a
1 Account 190
2 Electrc 13,452,219
3 Gas 1,953,690
4 0
5 15405909 1124,368
6 40,196,406 74,486
6.01 0
6.02 0
6.03 0
6.04 orwards 0
6.05 0
6.06 SFAS 158 0
7 TOTAL Account 190 Total of lines 5 th 6 55,602,315 1,198,854
8 Classification of TOTAL
9 Feder Income Tax 55602315 425377 1198,854
10 State Income Tax 0
11 Local Income Tax 0
FERC FORM NO.2 (12-96)Page 234
AvistaColp
Thitßrt Is:
(I) WAn Original
(2) DA Resubmission
Date of Reprt Yea of Report
(Mo, Da, fr)
Name of Respndent
4/18/2008 1213112007
ACCUMULATED DEFERRD INCOME TAXS (ACCOUNT 190) (Contiued)
4. If more space is neeed, use separte pages
as required.
5. In the space provided below, identify by amount
and classification, significant items for which
defered taes are being provided. Indicate
insignificant amounts listed under "Other."
CHANGES DURIG YEAR ADJUSTMENTS
Amounts
Debited to
Account 4 10.2
Amounts
Credited to
Account 4 i 1.2
Debits to 190 Credits to 190 Balance at
End of Yea
Line
No.
Account No.Amount Account No.Amount
o
1,252,358
o 214040
o 228350
o 245100
o 254005 / 283005
o 283740
o
1,252,358
257984 26555
i
13,791783 2
3123,264 3
o 4
16,915047 5
41573086 6
(380 114 6.01
1,043 780 6.02
1 875,098 6.03
7,120008 6.04
25514315 6.05
6.06
7
8
9
10
11
o
o 254010/283010 257,984 254180 26,555
1,373,190 236000
2,982,229 216000
5,357,423 219000
7,120,008
25514,315
1,753,304
1,938,449
3,482,325
Varous
FERC FORM NO.2 (12-96)Page 235
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corpration (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmission 0411712008
CAPITAL STOCKS (Accunt 201 and 2(4)
1. Report below the particulars (details) called for conceming common and preferred stock at end of year, distnguishing 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 Autorized by Charter Value per share End of Year
(a)(b)(c)(d)
1 Accunt 201 - Common Stock Issued
2 No Par Value 200,000,000
3 Restricted shares
4 TOTAL_COM 200,000,000
5
6
7 Account 204 - Preferred Stock Issued 10,000,000
8
9
10 Cumulative
11
12
13 TOTAL PRE 10,000,000
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
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 2007/Q4
(2) Fi A Resubmission 04/17/2008
CAPITAL STOCKS (Accunt 201 and 2 4) (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 partculars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which
is pledged, stating name of pledgee and purposes of pledge.
OUTSTANDING PER BALANCE SHEET HELD BY RESPONDENT Line
(Total amount outstanding without reduction AS REACQUIRED STOCK (Account 217)IN SINKING AND OTHER FUNDS No.
for amounts held by respondent)
::l'ares Amount Sl1ares 19)t
. Sh¡:res Amount
(e)(f)(g)(i)0)
1
52,932,368 727,945,794 2
D.i(.'2R13j 720,307 3
52,932,368 727,945,794 .............. ...............28,137 ...............ii.........4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
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 2007/Q4
(2) 0 A Resubmission 0417/2008
CAPITAL STOCK EXPENSE (Accunt 214)
1.Report the balance at end of the year of discount on capital stock for each class and senes 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.
Line -Class ana-Senes of StOCK -Balance at t:na or Year
No.(a)(b)
1 Common Stock. Public Issue i' i/i.)'/d"d
di i.'.i '...i) ",'.'. ",.".71',,7.77'"
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 TOTAL 3,294,916
FERC FORM NO.2 (ED. 12-87)Page 254b
This Page Intentionally Left Blank
Name of Respondent This~rtIS:Date of Report YearlPeriod of Report
Avista Corpration (1) An Original (Mo, Da, Yr)End of 20071Q4
(2) Fi A Resubmission 0411712008
LONG- TERM DEBT (Accunt 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, Oter 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 frm 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 certifcates 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. Fumish in a footnote particulars (details) regarding the treatment of unamortized debt expense, premium or discount associated with
issues redeemed during the year. Also, give in a footnote the date of the Commission's authorization of treatment other than as
specified by the Uniform System of Accounts.
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 Accl. 221 - Bonds:
2 Notes Payable - Banks (local) $320,000,000 2,406,216
3 Secured Medium Term Notes A 250,000,000 1,136,221
4 Discount 50,200
5 Secured Medium Term Notes B 161,000,000 788,947
6 Secured Medium Term Notes C 109,000,000 1,172,129
7 FMB's 6.125%45,000,000 825,301
8 Discount 204,750
9 FMB's 5.45%90,000,000 1,054,153
10 Discount 239,400
11 FMB's6.25%150,000,000 1,812,935
12 (Premium)-266,500
13 Discount 634,000
14 FMB's5.70%150,000,000 4,702,304
15 Discount 222,000
16
17 Pollution Control Revenue Bonds
18 6% Series due 2023 4,100,000 115,355
19 Colstrip 1999A due 2032 66,700,000 2,700,582
20 Discount 20,500
21 Colstrp 1999B due 2034 17,000,000 954,386
22
23 Acc. 222
24 Accl. 223 Advances from associated companies 1,200,000
25 LTD - AVA Trust III 61,856,000 1,658,634
26 LTD - AVA Trust II 51,547,000 3,633,783
27
28 Accl. 224 Other
29 Series K 35,000,000 2,089,391
30 Senior Notes 400,000,000 9,128,000
31 Discount 2,716,000
32 MTN's $1,000,000,000 683,000,000 2,700,797
33 TOTAL 2,275,403,000 40,699,484
FERC FORM NO.2 (ED. 12-96)Page 256
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmlssion 041172008
LONG-TERM DEBT (Accunt 221,222,22 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. Ifthe 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 uytstanÇlln~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?hlent)
(I)
1
12-17-2004 3-15-2011 12-13-2004 3-15-2011 308,938 2
Var.Var.Var.Var.68,000,000 4,897,600 3
4
6-9-1995 7-1-2010 6-9-1995 7-1-2010 5,000,000 345,000 5
Var.Var.Var.Var.75,000,000 5,537,921 6
9-8-2003 9-1-2013 9-8-2003 9-1-2013 45,000,000 2,756,250 7
8
11-18-2004 12-1-2019 11-18-2004 12-1-2019 90,000,000 4,905,000 9
10
11-17-2005 12-1-2035 11-17-2005 12-1-2035 154,137,17E 9,633,573 11
12
13
12-15-2006 7-1-2037 12-15-2006 7-1-2037 146,796,000 8,526,250 14
15
16
17
12-18-1984 12-1-2023 12-18-1984 12-1-2032 4,100,000 246,000 18
9-1-1999 10-1-2032 9-1-1999 10-1-2032 66,700,000 3,335,000 19
20
9-1-1999 3-1-2034 9-1-1999 3-1-2034 17,000,000 871,250 21
22
23
...... .... ..,.,'.,! ........... ..24
4-5-2004 4-1-2034 4-30-2004 3-31-2034 61,856,000 4,020,640 25
6-3-1997 6-1-2037 6-30-1997 5-31-2037 51,547,000 3,277,565 26
27
28
9-15-1992 9-15-2007 9-15-2007 1,368,281 29
4-3-2001 6-1-2008 5-1-2001 6-1-2008 273,010,231 26,603,850 30
31
1-22-1992 1-22-2007 2-1-1992 2-1-2007 .. ........411,170 32
1,059,346,406 77,044,288 33
FERC FORM NO.2 (ED. 12-96)Page 257
This Page Intentionally Left Blank
Name of Respondent This ~ort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 20071Q4
(2) 0 A Resubmission 041172008
RECONCILIATION OF REP( RTED NET INCOME WITH TAXBL INCOME FOR FEDERAL INCOME TAXES
1. Report the reconcilation 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 reconcilation, as far as practicable, the same detail as fumished on Schedule M-1 of the tax return for
the year. Submit a reconcilation even though there is no taxable income for the year. Indicate clearly the nature of each reconcilng amount.
2. If the utilty is a member of a group which files a consolidated Federal tax retum, 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 reportng purposes complete Line 27 and provide the substitute Page in the context of a footnote.
ine Particulars (Details)Amount
No.(a)(b)
1 Netlncome for the Year (Page 117)38,475,085
2
3
4 axable Income Not Reported on Books
5 i ~..... .......
6
7
8
9 Deductions Recorded on Books Not Deducted for Retum
10 100,5$0,141
11 Federal Income Tax 22,193,342
12 Deferred Income Tax 3,594,288
13 Investment Tax Credit & State Income Tax 470,903
14 Income Recorded on Books Not Included in Return
15 ~/;irii.............~""
16 Equity in Sub Eamings (Income) 1 Loss 4,595,749
17 Corporate Overhead Unallocated Subs 1,155,955
18 -19 Deductions on Retum Not Charged Against Book Income
20 ..
21
22
23
24
25
26
27 Federal Tax Net Income 76,062,090
28 Show Computation of Tax:
29
30 Federal Tax Net Income 76,062,090
31 State Tax (§ 2%, Less Idaho ITC -1,387,627
32 Federal Tax Net Income, Less State Tax 74,674,463
33
34 Federal Tax (§ 35% (74,674,463 * 35%)26,136,062
35
36
37
38 Prior Years Tax Retum, Revenue Agent Report & Misc True-ups 1,823,523
39
40 Kette Falls & Cabinet Gorge Tax Credits -2,689,709
41 Total Federal Tax Expense (agrees to line 11)25,269,876
42
43
44
FERC FORM NO.2 (ED. 12-96)Page 261
Name of Respondent: Date of Report Year/Period of Report
(Mo, Da, Yr) End of: 2007/Q4Avista Co ration 212912008
Taxes Accrued, Pre aid and Cha ed Durin Year, Distribution of Taxes Cha ed Show util de t where a Iicable and acct cha ed
1. Give details of the combined prepaid and accrued tax accunts 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 accunts to which the taxed material was charged. If the
actual or estimated amounts of such taxes are known, 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 accunts through (a) accals credited to taxes acced,
(b) amounts credited to the portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accunts other
than acced and prepaid tax accunts.
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.
BALACE AT BEGINNING OF YEAR
Line KinO of Tax Taxes Accred Taxes Charged Taxes Paid During Adjustments
No.(See Instruction 5)(Account 236)Prepaid Taxes DUri7~)Year ~~~r (f(a)(b)(c)
1 FEDERAL:
2 Income Tax (30,476,283'403,720 30,072,563
3 Income Tax 2,734,453 862,779 (3,597,232'
4 Income Tax 4,081,943 (767,976\(26,475,330'
5 Income Tax (Current)23,057,197 21,521,809
6 Retained Earninos (1,463,362
7 Retained Eaminos (386,815'
Prior Retained Eaminos (1,618,425 (1,544,919\
8 Current Retained Eaminos (2,127,838)
9 Total Federal (27,128,489).19,882,963 21,521,809 1
10
11 STATE OF WASHINGTON:
12 Properl Tax 2005 58,913 (58,913\
13 Properl Tax 2006 10,152,000 (1,823,436\8,329,120
14 Properl Tax 2007 -10,692,000 -
15 Excise Tax 2005 189,884 (98,432)-
16 Excise Tax 2006 1,856,345 108.563 1,965,365 (7
17 Excise Tax 2007 -22,075,121 19,460,329
18 Natural Gas Use Tax 20,706 76,438 62,437
19 Municipal Occupation Tax 2,645,86 20,424,230 20,374,194
20 Sales & Use Tax (2005)(141,202 83,793 -
21 Sales & Use Tax (2006)86,301 -36,835
22 Sales & Use Tax (2007\.1,193,636 1,133,447
23 Motor Vehicle Tax 2007 -7,723 7,723
24 Total Washington 14,868,433 .52,680,723 51,369,450 (7)
25
26 STATE OF IDAHO:
27 Income Tax 2005 345,334 -(345,334
28 Income Tax 2006 (145,347 348,075 60,236 345,334
29 Income Tax 2007 -409,879 590,000
30 Prooerl Tax 2005 9,691 (9,691'
31 Prooerl Tax 2006 1,677,111 (1,466'1,675,645
32 Properl Tax 2007 -3,286,941 1,165,864
33 Motor Vehicle Tax 2007 -13,023 13,023
34 Sales & Use Tax 2005 423 -13
35 Sales & Use Tax 2006 17,968 17,968
36 Sales & Use Tax 2007 .294,872 289,687 (12
37 Irrioation Credits 2006
38 KWH Tax 2005
39 KWH Tax 2006 24,663 1,660 26,331 8
40
FERC FORM NO.2 (ED. 12-96) Page 262.1
Date of Report Year/Period of Report
(Mo, Da, Yr) End of: 2007/Q4Avista Co oration 2 A Resubmission 2129/2008
Taxes Accrued, Pre aid and Char ed Durin Year, Distribution of Taxes Char ed Show utili de t where a Iicable and acct char ed
5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for
each tax year, identifyng the year in column (a).
6. Enter all adjustents of the accrued and prepaid tax accunts in column (f) and explain each adjustment in a footnote.
Designate debit adjustments by parentheses.
7. Do not include on this page entries with respect to deferr income taxes or taxes collected through payrll deductions or
otherwise pending transmittal of such taxes to the taxing authority.
8. Show in columns (i) thru (p) how the taxes accounts were distrbuted. Show both the utiity department and number of account charged.
For taxes charged to utility plant, show the number of the appropriate balance sheet plant account or subaccunt.
9. For any tax apportioned to more than one utilty department or accunt, state in a footnote the basis (necessity) of apportoning such tax.
10. Items under $250,000 may be grouped.
BALANCE AT END OF YEAR
Taxes Accrued Electric Gas Non-Operating Other Line
(ACco~~t 236)Prepaid Taxes (Accunt 408.1.(ACCU~~ 408.2.(ACCOUCk\ 408.2.No.
(h)(i)(I
1
-4,418 (21,417 420,719 -2
-286,706 524,816 51,257 -3
(23,161,363\8,634 (78,901 (2,228,681 \1,530,972 4
1,535,388 15,615,969 8,456,016 (814,706'(200,082 5
(1,463,362'-6
(386,815 -7
(3,163,344 (1,544,919
(2,127,838 (2,127,838 8
(28,767,334)-15,915,727 8,880,514 (2,571,411)(2,341,867)9
10
11
-(10,256 (24,289)(25,671'1,303 12
(556 (1,346,320 (438,242'(40,323'1,449 13
10,692,000 8,322,669 2,333,000 36,000 331 14
91,452 (138,787 (125,706'165,681 380 15
(464 65,399 32,329 10,834 1 16
2,614,792 13,919,664 8,078,671 90,090 (13,304)17
34,707 -76,438 18
2,695,522 12,694,551 7,691,153 38.526 19
(57,409)83,793 20
49,466 .21
60,189 1,193,636 22
-7,723 23
16,179,699 .33,506,920 17,546,916 236,611 1,390,276 24
25
26
--27
487,826 (90,234'(22,558'460,867 28
(180,121'295,742 114,137 -29
-(9,580\(111 -30
-15,595 (16,922 -(139'31
2,121,077 2,677,911 608,789 14,853 (14,612'32
-13,023 33
436 -34
-.35
5,173 294,872 36
-2,683 (2,683'37
--38
-1,660 -39
40
FERC FORM NO.2 (ED. 12-96) Page 263.1
Name of Respondent: Date of Report
(Me, Da, Yr)Avista Co ration 2/29/200
Taxes Accrued, Pre aid and Cha ad Durin Year, Distribution of Taxes Cha ed Show utiI' de t where a Iicable and acct cha ed
1. Give details of the combined prepaid and accrued tax accunts and show the total taxes charged to operations and other accunts duóng
the year. Do not include gasoline and other sales taxes which have been charged to the accunts to which the taxed mateóal was charged. If the
actual or estimated amounts of such taxes are known, show the amounts in a foobiote and designate whether estmated or actual amounts.
2. Include on this page, taxes paid duóng the year and charged direct to final accunts, (not charged to prepaid or acced taxes).
Enter the amounts in both columns (d) and (e). The balancing of this page is not affeced 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) accals credited to taxes accrued,
(b) amounts credited to the portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accounts other
than accrued and prepaid tax accunts.
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.
BALACE AT BEGINNING OF YEAR
Line I\ina Of I ax Taxes Accrued Taxes Charged Taxes Paid During Adjustments
No.(See Instrction 5)(Account 236)Prepaid Taxes Durina Year ~:~r
(a)(b)(c)(d)(f
1 KWH Tax 2007 -356,210 321,852 (1 '
2 Franchise Tax 2005 1 (1 -
3 Franchise Tax 2006 1,564,867 -1,567,214 1
4 Franchise Tax 2007 -3,948,323 2,328,531
5 Total Idaho 3,494,711 .8,647,825 8,056,351 9
6
7 STATE OF MONTANA:
8 Income Tax (2005)466,950 24,145 (50,548'(541,643
9 Income Tax (2006)(58,306 32,855 -541,643
10 Income Tax (2007)-450,279 460,000
.11 Propert Tax (2005)31,447 (31,447)
12 Propert Tax (2006)2,977,181 -2,971,509
13 Properl Tax (2007)6,177,420 3,093,315
14 Colstrip Generation Tax 3,692 3,692
15 KWH Tax 2004 1 (1
16 KWH Tax 2005 1,276 (1,276'
17 KWH Tax 2006 261,908 261,908
18 KWH Tax 2007 -1,117,650 877,365
19 Motor Vehicle Tax (2007)3,691 3,691
20 Consumer Council Tax 431 11,105 8,40 1,769
21 Public Commission Tax 503 21 21 (495
22 Total Montana 3,681,391 .7,789,411 7,629,393 (3)
23
24 STATE OF OREGON:
25 Income Tax (2005)264,467 (264,467'
26 Income Tax (2006)37,202 (35,582)264,467
27 Income Tax (2007)(88,274)440,000
28 Propert Tax (2005)(473,640'762,321
29 Properl Tax (2006)(208,947 79,500 156,343
30 Properl Tax (2007)813,400 1,572,558 1
31 Motor Vehicle Tax (2007)3,680 3,680
.32 BETC Credit (2000)(431,020 11,471 31,896
33 BETC Credit (2001 )(34,244'73,379 124,805
34 BETC Credit (2002)(55,790 3,580 6,092
35 BETC Credit (2003)24,865 427
36 BETC Credit (2004)26,274 10,812
37 BETC Credit (2005)32,145 81,145 (196,186'
38 BETC Credit (2006)(104,808 (125,454 22,154
39 BETC Credit (2007)-17,786
40
FERC FORM NO.2 (ED. 12-96) Page 262.2
Name of Respondent: Date of Report Year/Period of Report
(Mo, Da, Yr) End of: 2007/Q4Avista Co ration 219/2008
Taxes Accrued, Pre aid and Cha ed Durin Year, Distribution of Taxes Char ed Show utili de t where a licable and acct char ed
1. Give details of the combined prepaid and accrued tax accunts and show the total taxes charged to operations and other accunts during
the year. Do not include gasoline and other sales taxes which have been charged to the accunts to which the taxed material was charged. If the
actual or estimated amounts of such taxes are known, 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 accunts, (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 the porton of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accunts other
than accred 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 ascertined.
BALANCE AT BEGINNING OF YEAR
Line Kina ot lax Taxes Accrued Taxes Charged Taxes Paid During Adjustments
No.(See Instrction 5)(ACCrb~t 236)Prepaid Taxes DUri7~)Year ~~~r
(a)(c)(f)
1
2 STATE OF OREGON Cont.:
3 Franchise Tax (2004)(62,168
4 Franchise Tax 2005 60,185
5 Franchise Tax 2006 1,138,514 1,101,020
6 Franchise Tax 2007 4,905,418 3,491,677
7 Total Oregon 213,035 .6,502,370 6,765,278 1
8
9 STATE OF CALIFORNIA:
10 Income Tax (2005)(12,000'1,600
11 Income Tax (2006)(3,200'2,400
12 Income Tax (2007)3,200 3,200
13 Total California (15,200).7,200 3,200 .
14
15 MISC. STATES
16 Income Tax (2006)-1,100 1,100
17 Income Tax (2007)
18 Total Mise States ..1,100 1,100 .
19
20 COUNTY & MISCELLAEOUS
21 WA Renewable Enerov (1,044 (1,044
22 Misc.lDistrbution 2 18,434 15,136 (1
23 Total Miscellaneous (1,042).18,434 14,092 (1)
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 TOTALS (4,887,161).95,530,026 95,360,673 .
FERC FORM NO.2 (ED. 12-96) Page 262.3
Name of Respondent: This Report Is: Year/Period of Report(1) (X An Original End of: 2007/Q4Avista Co ration 2 A Resubmission
Taxes Accrued, Pre aid and Char ed Durin Year, Distribution of Taxes Cha ed Show utili de t where a Iicable and acct cha
5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for
each tax year, identifyng the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accunts in column (f) and explain each adjustment in a footnote.
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. Show in columns (I) thru (p) how the taxes accunts were distrbuted. Show both the utility department and number of account charged.
For taxes charged to utilty plant, show the number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utilty department or accunt, stte in a footnote the basis (necessity) of apportioning such tax.
10. Items under $250,000 may be grouped.
BALANCE AT END OF YE
Taxes Accrued Electc Gas Non-Operating Other Line
(ACCOrQ~t 236)Prepaid Taxes (ACCOUm 408.1.(Accunt 408.2.(ACCU(~\ 408.2.No.
(h)Ii (I
34,357 356,210 -1
-(1 '2
(2,346 -3
1,619,792 2,426,583 1,511,942 9,798 4
4,086,194 -5,676,570 2,195,277 14,853 761,125 5
6
7
-24,145 -8
516,192 (230,144 262,999 9
(9,721'450,279 -10
-(31,447 -11
5,672 --12
3,084,105 6,177,420 -13
-3,692 -14
---15
---16
---17
240,285 1,117,650 -18
-3,691 -19
4,865 11,104 1 20
8 22 (1 21
3,841,406 .7,526,412 .-262,999 22
23
24
--25
266,087 (48,813'(146,439'159,670 26
(528,274'(22,069'192,911 (259,116)27
288,681 762,321 -28
(285,790'79,500 -29
(759,157'76,843 736,558 (1 ,30
-3,680 31
(387,653'11,471 32
163,940 73,379 33
(46,118 3,580 34
25,292 -35
37,086 -36
(82,896'81,145 37
(208,108 (125,454 38
17,786 17,786 39
40
FERC FORM NO.2 (ED. 12-96) Page 263.2
Name of Respondent: This Report Is: Year/Period of Report(1) (X An Original End of: 2007/Q4Avista Co oration 2 A Resubmission 2129/2008
Taxes Accrued, Pre aid and Char ed Durin Year, Distribution of Taxes Char ed Show util de t where a licable and acct char ed
5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for
each tax year, identifyng the year in column (a).
6. Enter all adjustments of the accrued and prepaid tax accunts in column (f) and explain each adjustment in a footnote.
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 transmittl of such taxes to the taxing authority.
8. Show in columns (i) thru (p) how the taxes accunts were distributed. Show both the utilty department and number of accunt charged.
For taxes charged to utility plant, show the number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utilty department or accunt, state in a footnote the basis (necessity) of apportioning such tax.
10. Items under $250,000 may be grouped.
BALANCE AT END OF YEAR
Taxes Accrued Electric Gas Non-Operating Other Line
(ACCto't 236)Prepaid Taxes (ACCOUm 408.1.(Account 408.2.(ACCOU(~\ 408.2.No.
(h)(i)(I
1
2
(62,168 -3
60,185 -4
37,494 -5
1,413,741 4,881,431 23,987 6
(49,872)-85,461 6,426,782 -(9,873)7
8
9
(10,400 1,600 -10
(800 1,654 746 11
--3,200 12
(11,200)..3,254 .3,946 13
14
15
-1,100 16
--17
.-...1,100 18
19
20
--21
3,299 18,434 22
3,299 ....18,434 23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
(4,717,808)-62,711,090 35,052,743 (2,319,947)86,140 40
FERC FORM NO.2 (ED. 12-96) Page 263.3
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) i: A Resubmission 04/1712008
ACCUMULA ED DEFERRED INVESTMENT TAX REDITS (Accunt 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utilty and
non utilty 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 Accunt Balance at Beginning Deferred for Year AI!ocatlOns to
of Year Current Year's Income AdjustmentsNo.SUbdl~~sions ~(c) (d) (e) (f) g
1 Electric Utilty
23%
34%
47%
510%
6
7
8 TOTAL
9 Other (List separately
and show 3%, 4%, 7%,
10% and TOTAL)
10 Gas Propertry (100%472,344 411400 49,3m
11
12 TOTAL PROPERTY 472,344 49,30f
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
2€
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
FERC FORM NO.2 (ED. 12-89)Page 266
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
A vista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) ri A Resubmission 04/17/2008
ACCUMULATED 0 FERRED INVESTMENT TAX CRED S (Account 255) (continued)
~ADJUSTMENT EXPLANATION Line
of Year of AI ocation No.
to Incomeh i -
1
2
3
4
5
6
7
8
9
423,036 10
11
423,036 12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
FERC FORM NO.2 (ED. 12-89)Page 267
Name of Respondent This Report Is:Date of Report Yea of Report
(I)1l An Orginal (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 December 31, 2007
MISCELLANEOUS CURRNT AND ACCRUED LIAILITS (Account 242)
1. Describe and report the amount of other current and accrued liabilities at the end of year.
2. Minor items (less than $250,000) may be groupe under approprate title.
Balance at
Line Item End of Year
No.
(a)(b)
1 Margi Call Deposit (242050)12,510,000
2
3 Forest Use Permits (242060)182,081
4
5 FERC Administrative Fee Accrual (242300 & 242310)512,499
6
7 Montana Lease Payments (242375)4,000,000
8
9 Non-monetar Power Exchange (242500)439,805
10
11 Demand Side Mgmt Tarff Rider (242600)(6,198,883)
12
13 Payroll Equalization (242700)11,636,406
14
15 Low Income Energy Assistance (242770)2,529,861
16
17 Workers Compensation Reg Liab (242830)2,851,024
18
19 Accounts Payable - Inventory Accrual (242900)248,166
20
21 Accounts Payable - Expense Accrual (242910)896,487
22
23 Benefit Liabilty, Curent Portion (242999)4,397,950
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44 TOTAL 34,005,396
Page 268
FERC FORM NO.2 (ED. 12-96)
Name of Respondent This ~ort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) Fi A Resubmission 041172008
o HER DEFFERED CREDITS (Accunt 253)
1. Report below the partculars (details) called for conceming e:ther deferred credits.
2. For any deferred credit being amortized, show the period of amortzation.
3. Minor items (5% of the Balance End of Year for Account 253 or amounts less than $10,000, whichever is greater) may be grouped by classes.
Line Description and Other Balance at DEBITS Balance at
No.Deferred Credits Beginning of Year Contra Amount Credits End of Year
(b)
Accunt
(f)(a)(c)(d)(e)
1 CCS Install (253000)17,092 142/419 16,929 163
2 Pacificorp Capacitor (253080)23,430 142/456 9,372 14,058
3 BPA C&RD REceipts (253100)108,870 108,870
4 Centrlia Environmental (253110)935,764 29,496 965,260
5 Rathdrum Refund (253120)442,509 550000 33,823 408,686
6 NE Tank Spil (253130)210,625 186200 75,085 135,540
7 Bils Pole Rentals (253140)202,867 202,867
8
9
10 Sale/Leaseback on Bldg (253850)1,307,280 931000 261,456 1,045,824
11 Clark Fork Relicensing (253890)-681,218 186/419/537 268,099 -949,317
12 Defer Comp Retired Exec (253900)324,007 431/232 87,615 236,392
13 Defer Comp Active Execs (253910)12,564,773 Various 450,117 12,114,656
14 Executive Incent Plan (253920)140,000 140,000
15 Unbiled Revenue (253990)2,223,389 1,534,814 3,758,203
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47 TOTAL 17,616,521 1,311,366 1,767,177 18,072,332
FERC FORM NO.2 (ED. 12-94)Page 269
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/04
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 0417/2008
ACCUMULATE DEFFERED INCOME TAXES - OT ER PROPERTY (Accunt 82)
1. Report the information called for below concerning the respondent's accounting for deferred income taxes rating to propert not
subject to accelerated amortization
2. For other (Specify),include deferrals relating to other income and deductions.
CHANGES DURING YEAR
Line
No.
Accunt Balance at
Beginning of Year Amounts Debited
to Accunt 410.1
(c)
Amounts Credited
to Accunt 411.1
(d)(a)(b)
1 Account 282
2 Electrc
3 Gas
4 Other
5 TOTAL (Enter Total of lines 2 thru 4)
6
7
8
9 TOTAL Account 282 (Enter Total of lines 5 thru
10 Classification of TOTAL
11 Federal Income Tax
12 State Income Tax
13 Local Income Tax
232,595,098
60,933,526
11,945,590
305,474,214
11,008,524
4,523,067
-988,485
14,543,106
305,474,214 14,543,106
295,780,791
9,693,423
13,591,688
951,418
NOTES
FERC 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 04/17/2008
E TAXES - OTHER PROPERTY (Accunt 282) (Continued)
Year/Period of Report
End of 2007/Q4
ACCUMULATED DEFERRED INCO
3. Use footnotes as required.
CHANGES DURING YEAR
Amounts Debited Amounts Credited
to Account 410.2 to Accunt 411.2
ADJUSTMENTS
Amount
Balance at
End of Year
Line
No.Debits
NOTES (Continued)
FERC FORM NO.2, (ED. 12-96)Page 275
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/Q4
This ~rt Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 0417/2008
ACCUMU TED DEFFERED INCOME TAXES - THER (Accunt 283)
1. Report the information called for below concerning the respondent's accounting for deferrd income taxes relating to amounts
recorded in Account 283.
2. For other (Specify),include deferrals relating to other income and deductions.
1 Account 283
2 Electric
3 Electric
4
5
6
7
8
9 TOTAL Electric (Total of lines 3 thru 8)
10 Gas
11 Gas
12
13
14
15
16
17 TOTAL Gas (Total of lines 11 thru 16)
18 Other
19 TOTAL (Acct 283) (Enter Total of lines 9,17 and 18)
20 Classification of TOTAL
21 Federal Income Tax
22 State Income Tax
23 Local Income Tax
Accunt
(a
Balance at
Beginning of Year
(b)
Line
No.
47,102,114 2,010,787 2,924,920
47,102,114 2,010,787 2,924,920
8,679,614 -5,888,963 9,882
8,679,614 -5,888,963 9,882
156,207,315 307,220
211,989,043 -3,570,956 2,934,802
211,989,043 -3,570,956 2,934,802
NOTES
FERC FORM NO.2 (ED. 12-96)Page 276
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2007/Q4
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/17/2008
ACCUMULATED EFERRED INCOME TAXES - OTHE (Accunt 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.
CHANGE DURING YEAR
Amounts Debited Amounts Credited
to Account 410.2 to Accunt 411.2
(e)
ADJUSTMENTS
Balance at
End of Year
(k)
Line
No.
1,910,045 182.3 325,496 47,772,530
1,910,045 325,496 47,772,530
416,640 254 90,294 182.3 138,914 3,246,029
416,640 90,294 138,914 3,246,029
-1,347,404 3,086,791 190/18 8,402,823 254/FAS 44,578,438 188,255,955
979,281 3,086,791 8,818,613 44,717,352 239,274,514
979,281 3,086,791 8,818,613 41,666,556 236,223,718
3,050,796 3,050,796
NOTES (Continued)
FERC FORM NO.2 (ED. 12-96)Page 277
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) DA Resubmission 04117/2008
o HER REGULATORY LIABILITIES (Accunt 254)
1. Report below the particulars (details) called for conceming other regulatory liabilties, 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 Liabilties being amortized, show period of amortization.
Balance at Begining DEBITS Balance at End
Line Descrption and Purpose of of Current of Current
No.Other Regulatory Liabilties QuarterlY ear ~ccount.Amount Credits QuarterlYearCredited
(a)(b)(c)(d)(e)(f)
1 Idaho Investment Tax Credit (254005)7,120,00 7,120,00
2 Oregon BETC Credit (25410)257,98 257,984
3 FAS 109 Invest Tax Credit (254180) 254,35 190180 26,556 227,796
4 Nez Perce (254220)814,412 557200 22,00 792,404
5 Oregon Senate Bil (254250)1,30,00 2,33,48 3,63,488
6 Unrealized Currnet Exchange (254399)30,876 30,876
7 OPUC Investigate Reserve (254680)478,04 Vanous 478,043
8 Mark to Markt FAS133 (254750)15,400,153 38,013,63 53,413,783
9
10
11
12
13
14
15
16
17
18
19
20
21 .
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41 TOTAL 18,246,960 526,607 47,760,986 65,481,339
FERC FORM NO. 2/3-Q (REV 02-04)Page 278
This Page Intentionally Left Blank
Name of Respondent Year of ReportThis R~ort Is:
(1) ll An Original
Date of Report
(Mo,Da, Yr)
Avista Corporation (2) D A Resubmission Apnl 18, 2008 Dec. 31, 2007
GAS OPERATING REVENUES (Accunt 400)
1. Report below natural gas operating revenues for each
prescribed account, and manufactured gas revenues in total.
2. Natural gas means eiter 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 billng 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 Met (14.73 psia
at 60 degrees F). If bilings are on a therm basis, give the Btu con-
tents of the gas sold and the sales converted to Met.
5. If increases or decreases from previous year (col-
umns (c), (e) and (g), are not derived frm previously
Line
No.
Title of Account
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
2
2
22
23
24
25
26
27
28
29
30
31
Amount for Year
b
OPERATING REVENUES
Amount for
Previous Year
c
490,070
424,736,310
142,464,487
567,200,797
111,420
6,638,317
15,060
142,464,487
490,070
567,200,797
118,750
6,498,720
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This R~ort Is:
(1) l2 An Onginal
(2) D A Resubmission
Date of Report
(Mo, Da, Yr)
Year of Report
Avista Corporation April 18,2008 Dec. 31, 2007
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Accunt 481, may be
classified according to the basis of classification (Small or
Commercial, and Large or Industral) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mcf per year or approximately 800 Met
per day of normal requirements. (See Accunt 481 oflhe
Uniform System of Accounts. Explain basis of classification
in a footnote.)
7. See page 108, Importnt Changes During Year,
for importnt new terrtory added and importnt rate increases
or decreases.
Quantity for Year
d
THERMS OF NATURAL GAS SOLD
Quantity for
Previous Year
e
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
442,701
3 5,304,361
157,426,570
48 ,730,931
52
306,096
o
306,096
1
2
3
4
5
6
51 7
299,437 8
0 9
299,437 10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3
32
33
NOTES
Quantities of natural gas expressed in therms:
to convert therms to MCF, divide therms by a
BTU factor of 10.25
(1) Includes ($987,954) unbiled revenues.
(2) Includes (38,326) thenns relating to unbiled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
Name of Respondent This RiRrt Is:Date of Report Yea of Report
(I) X An Original (Mo. Do, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Decmber 31, 200
GAS OPERATION AND MAINTEANCE EXPENSES
If the amount for previous yea is not derived from previously reiirt fiirre exnlain in footnote.
Amount for Amount for
Line Amount Current Yea Previous Year
No.(a)c
i 1. PRODUCTION EXPSES
2 A. Manufactured Gas Production --
3 Maufactured Gas Prouction (Submit Supplementa Statement)
4 B. Natural Gas Production
5 B i. Natu Gas Production and Gatheril!
6 Operation --
7 750 Operation Sunervision and Enl!ineerinl!--
8 751 Production MaDs and Records --
9 752 Gas Wells Expenses --
10 753 Field Lines Exnenss ..
11 754 Field Compressor Station Expenses --
12 755 Field Comnressor Staion Fuel and Power --
13 756 Field Meaurinl! and Rel!latinl! Station Exiinses -.
14 757 Purification Expenses --
15 758 Gas Well Rovalties .-
16 759 Oter Expenses --
17 760 Rents -.
18 TOTAL ODeration (Enter Tota of lines 7 thni 17)..
19 Maintenance
20 761 Maintenance Supervision and Eniiineerinii -.
21 762 Maintenance of Strcturs and Imnrovements --
22 763 Maintenance of Producinl! Gas Wells .-
23 764 Maintenace of Field Lines -.
24 765 Maintenace of Field ComDressor Station EauiDment --
25 766 Maintenace of Field Meas. and Reii. Sta. EQuipment --
26 767 Maintenace of Purification Equipment -.
27 768 Maintenace of Drilinl! and Cleannl! Eauipment --
28 769 Maintenance of Oter EQuipment ..
29 TOTAL Mantenance (Enter Total of lines 20 th 28)--
30 TOTAL Natual Gas Pruction and Gatherinii (Tota of lines 18 and 29)--
31 B2. Products Extrction
32 Operation
33 770 Oiiration Suiirvisionand Eniiineerinii .-
34 771 Oiiration Labor --
35 772 Gas Shrinkal!e --
36 773 Fuel .-
37 774 Power --
38 775 Materials -.
39 776 Operaion Supplies and Exiinses --
40 777 Gas Proessed bv Others --
41 778 Royalties on Prducts Extracted --
42 779 Marketinl! Exiinss --
43 780 Product Purchased for Resale -.
44 781 Variation in Proucts Inventorv --
45 I (Lss) 782 Extracted Product Use by the Utiltv-Creit --
46 783 Rents --
47 TOTAL Oiiration (Enter Tota of Lines 33 th 46)--
FERC FORM NO.2 (ED 12-88)Page 320
Name of Respondent This R~rt Is:Date of Report Year of Report
(J X An Onginal (Mo. Da, Yr)
Avista Corp.(2)0 A Resubmission Apnl 18, 2008 December 3 i, 2007
GAS OPERA nON AND MAINTEANCE EXPENSES
~Line Amount Currnt Year Previous Yea
No.(a)~) ~
B2. Product Extrction (Continued)
48 Maintenance
49 784 Maintenance SUDervision and Engineering -.
50 785 Maintenance of Strctures and Improvements -.
51 786 Maintenance of Extrction and Refininl! EouiDment --
52 787 Maintenance of Pine Lines ..
53 788 Maintenance of Extrcted Product Storal!e Eouinment --
54 789 Maintenance of Comnressor EouiDment .-
55 790 Maintenance of Gas Meaunng and Reg. EQipment ..
56 791 Maintenance of Other EauiDment --
57 TOTAL Maintenance (Enter Tota of lines 49 th 56)--
58 TOTAL Products Extraction (Enter Tota of lines 47 and 57).-
59 C. EXDloration and DeveloDment
60 Oneration
61 795 Delav Rentals --
62 796 NonDroductive Well Drilinl!-.
63 797 Abandoned Leases --
64 798 Other EXDloration --
65 TOTAL Exnloration and DeveloDment (Enter Total of lines 6 I th 64)--
D. Other Gas Supply Expenses
66 Oneration
67 800 Natural Gas Well Head Purchases --
68 800.1 Natura Gas Well Head Purchases, IntracomDanv Transers --
69 801 Natural Gas Field Line Purchaes --
70 802 Natura Gas Gasoline Plant Outlet Pnchases .-
71 803 Natura Gas Transmission Line Purchases -.
72 804 Natural Gas City Gate Purchases 434,093,210 372,079,169
73 804.1 Liouefied Natura Gas Purchaes --
74 805 Oter Gas Purchases 167,566 727,550
75 (Lss) 805.1 Purcha Gas Cost Adiustments .,121
76
77 TOTAL Purchased Gas (Enter Tota of lines 67 to 76)I 451,1 13,897T 40,754,436
78 806 Exchal!e Gas I -I -
79 Purchaed Gas Exnenses i;i..;:I~il!~~mm~J;
80 807.1 Well Exnenses-Purchaed Gas --
81 807.2 ODeration of Purchased Gas Measuring Stations --
82 807.3 Maintenance of Purchased Gas Meanl! Stations --
83 807.4 Puhaed Gas Calculations Expenses --
84 807.5 Other Purchased Gas Expenses --
85 TOTAL Purchased Gas Exnenses (Enter Total of lines 80 th 84)--
86 808.1 Gas Withdrawn from Storage-Debit 15,273,047 10,865,084
87 (Lss) 808.2 Gas Delivered to Storal!e-Credit (16,073,809 (10,300,5 17)
88 809.1 Withdrawals of Liauefied Natura Gas for Procssinl!-Debit -.
89 (Lss) 809.2 Delivenes of Natural Gas for Procssinl!-Credit --
90 Gas Used in Utiltv Onerations-Credit
91 810 Gas Used for Comnressor Station Fuel-Credit --
92 811 Gas Used for Products Extrtion-Credit --
93 812 Gas used for Oter Utiltv Onerations-Credit -.
94 TOTAL Gas Used in Utilty Operations-Credit (Total of lines 91 th 93)--
95 813 Oter Gas SUDDlv Exnenses 1,696,768 1,387,137
96 TOTAL Other Gas Sunnlv EXD (Tota of lines 77,78,85,86 th 89,94,95)452,00,90 402,706,140
97 TOTAL Prouction Exnenses (Enter Tota of lines 3,30,58,65, and 96)452,00,90 402,706,140
FERC FORM NO.2 (ED 12-88)Page 321
Name of Respondent This Roort Is:Date of Report Yea of Report
(1) X An Orginl (Mo. Da Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 December 31, 2007
GAS OPERATION AN MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Yea Previous Year
No.(aJ (b)(c)
98 2. NATURAL GAS STORAGE, TERMINAUNG AND
PROCESSING EXPENSES
99 A. Underground Storage Exnenses
100 Operation
101 814 Ooeration Suoervision and Em!Îneerinll 25,088 94,625
102 815 MaDS and Records --
103 816 Wells Exoenses -.
104 817 Lines Exoense .-
105 818 ComDressor Station Exoenss --
106 819 ComDressor Station Fuel and Power --
107 820 Meaurinii and Reiiu1ating Station Exoenses --
108 821 Purification Exoenses -.
109 822 ExDloration and Develooment --
110 823 Gas Losses ..
111 824 Oter Exoenses 303,177 249,723
112 825 Storaiie Well Rovalties --
113 826 Rents -.
114 TOTAL Ooeration (Enter Tota of lines 101 th 113)328,265 344,348
115 Maintenace '. Îi~~~tl\li~~iii:~iíl~Il4(i.~.¡rjlilillii¡I~Ij¡¡mill~I4(,
116 830 Maintenance Suoervision and Engineering .-
117 831 Maintenance of Strcts and Imorovements ..
118 832 Maintenace of Reservoirs and Wells --
119 833 Maintenance of Lines --
120 834 Maintenance of Comoressor Staion Eouioment .-
121 835 Maintenance of Measuring and Rel!lating Station EauiDment .-
122 836 Maintenance of Purification Eauinment --
123 837 Maintenace of Other Eauioment 297,109 326,277
124 TOTAL Maintenance ænterTotal of lines 116 th 123)297,109 326,277
125 TOTAL Underground Storaiie Exnenses (Total of lines 114 and 124)625,374 670,625
126 B. Other Storaiie Exoenses
127 Ooeration
128 840 ODeration Sunervision and Eniiineerinii -.
129 841 Ooration Laor and Exoenses --
130 842 Rents ..
131 842.1 Fuel --
132 842.2 Power ..
133 842.3 Gas Losses --
134 TOTAL Ooeration ænter Tota of lines 128 th 133).-.
135 Maintenace ii~i~i~iri..
136 843.1 Maintenace Sunervision and En..ineerinii --
137 843.2 Maintenace of Strctures and Imorovements ..
138 843.3 Maintenace of Gas Holders --
139 843.4 Maintenance of Purification Eauioment --
140 843.5 Maintenace of Liauefaction EauiDment .-
141 843.6 Maintenace ofVanorizin.. Eauinment -.
142 843.7 Maintenance of Comoressor Eauioment --
143 843.8 Maintenace of Measuring and Rel!1ating EauiDment ..
144 843.9 Maintenance of Other Eauioment --
145 TOTAL Maintenance (Enter Total of lines 136 th 144)--
146 TOTAL Other Storage Exoenses (Enter Tota of lines 134 and 145).-
FERC FORM NO.2 (ED 12-88)Page 322
Name of Respondent This R(R0rt Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission Apn1 18, 2008 December 31, 200
GAS OPERATION AND MAINTENANCE EXENSES
~Line Amount Current Yea Previous Yea
No.(a)(b (c
147 C. Liciuefied Natu Gas Terminaling and Processinl! Expenses
148 Ooeration
149 844.1 Ooeration Suoervision and Enl!ineennl!--
150 84.2 LNG Prossinl! Termin Labor and Exnenses --
151 84.3 Liauefaction Prossim! Laor and Exoenses --
152 844.4 Liciefaction Transoorttion Laor and Exoenses --
153 844.5 Measuring and Regulating Labor and Expenses --
154 844.6 Comoressor Station Labor and Exoenses --
155 844.7 Communication System Exoenses --
156 844.8 System Contrl and Load Disnatching --
157 845.1 Fuel --
158 845.2 Power --
159 845.3 Rents --
160 845.4 Demurrl!e Charl!es --
161 (Less) 845.5 Whaal!e Receipts-Credit --
162 845.6 Processing Liauefied or Vaoonzed Gas by Others --
163 846.1 Gas Losses --
164 846.2 Other Exoenses --
165 TOTAL Ooeration (Enter Tota of lines 149 th 164)--
166 Maintenance
167 847.1 Maintenace Suoervision and Engineering --
168 847.2 Maintenance of Strctures and Imorovements --
169 847.3 Maintenance of LNG Processinl! Terminal Eauinment --
170 847.4 Maintenace of LNG Trasoorttion Eauioment --
17 847.5 Maintenance of Meaurinl! and Rel!latinl! Eouioment --
172 847.6 Miantenance of Compressor Station F.auinment --
173 847.7 Maintenace of Communication Eauioment --
174 847.8 Maintenance of Other Eouipment --
175 TOTAL Maintenance (Enter Total of lines 167 th 174)--
176 TOTAL Liouefied Nat Gas Terminalinl! and Processing Exp (Lines 165 & 175)--
177 TOTAL Natural Gas storal!e (Enter Total of lines 125, 146, and 176)625,374 670,625
178 3. TRANSMISSION EXPENSES
179 )aeration
180 850 Ooeration Suoervision and Engineering --
181 851 System Contrl and Load Disoatchinl!--
182 852 Communication System Expenses --
183 853 Compressor Station Labor and Exnenses --
184 854 Gas for Comoressor Station Fuel --
185 855 Other Fuel and Power for Compressor Stations --
186 856 Mains Exoenses --
187 857 Measurinl! and Rel!latinl! Station Exoenses --
188 858 Transmission and Compression of Gas by Others --
189 859 Oter Exoenses --
190 860 Rents -.
191 TOTAL Operation (Enter Tota of lines 180 thr 190)--
PERC FORM NO.2 (ED 12-88)Page 323
Name of Respondent This Rdfrt Is:Date of Report Yea of Report
(I) X An Original (Mo, Da Yr)
Avista Corp.(2)0 A Resbmision April 18, 2008 Decmber 31, 2007
GAS OPE nON AN MAINTENANCE EXENSES
~Line Amount Cuent Yea Previous Year
No.(a)b c
3. TRANSMISSION EXPENSES (Continued)
192 Maintenane
193 861 Maintenance Sunervision and Em1:neerinii --
194 862 Maintenance of Strctur and ImDrovements --
195 863 Maintenace of Mains --
196 864 Maintenance of ComDressor Staion EauiDment --
197 865 Maintenance of Measuring and Reg. Station EauiDment --
198 866 Maintenace of Communication Eiiuinment --
199 867 Maintenance of Other EauiDment --
200 TOTAL Maintenance (Enter Total of lines 193 th 199)--
201 TOTAL Transmission EXDenses-æl1ter Tota of lines 191 and 200)--
202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Oneration Sunervision and Eniiineerinii 853,853 737,851
205 871 Distribution Load Dispatching --
206 872 Compressor Station Labor and Exnenses --
207 873 Comnressor Station Fuel and Power --
208 874 Mains and Services Exnenses 2,838,125 2,786,64
209 875 Measrinii and Reimlatinii Station Exnenses-General 235,910 227,853
210 876 Measurinii and Reimlatinii Station Exnenses-Industral 7,762 3,022
211 877 Measuring and Rel!lating Station Exnenses-Citv Gate Check Station 97,236 114,141
212 878 Meter and House Reimlator Exnenses 2,024,058 1,088,249
213 879 Customer Installations Exnenses 1,775,093 1,688,697
214 880 Oter EXDenses 2,102,151 2,088,789
215 881 Rents 23,991 22,706
216 TOTAL Operation (Enter Total of lines 204 th 215)9.958.179 8,757,952
217 Maintenace
218 885 Maintenace Sunervision and Eniiineerinii 246,526 261,703
219 886 Maintenae of Strctures and ImDrovements --
220 887 Maintenace of Mains 2,751,258 2,484,051
221 888 Maintenace of ComDressor Station EauiDment --
222 889 Maintenace of Meas. and Reg. Sta. EauiD.-General 261,794 243,518
223 890 Maintenance of Mea. and Reii. Sta. Eiiuin.-Industial 161,525 70,835
224 891 Maintenance of Mea. and Reii. Sta. EauiD.-Citv Gat Check Station 76,876 50,139
225 892 Maintenance of Services 1,017,281 981,794
226 893 Maintenance of Meters and House Reimlators 796,312 932,785
227 894 Maintenance of Other EauiDment 13,608 132,932
228 TOTAL Maintenance (Enter Total of lines 218 th 227)5,443,180 5,157,758 I
229 TOTAL Distribution Exnenses (Enter Total of lines 216 and 228)15,401,359 13,915,711
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Oneration
232 901 Sunervision 470,638 449,520
233 902 Meter Reading Expenses 1,401,730 1,471,320
234 903 Customer Records and Collection Exnenses 5,888,220 5,777,774
235 904 Uncollectible Accounts 1,442,353 1,350,865
236 905 Miscllaneous Customer Accounts Exnenses 167,628 160,003
237 TOTAL Customer Accounts EXDenses (Enter Total of lines 232 th 236)9,370,570 9,209,482 I
FERC FORM NO.2 (E 12-88)Page 324
Name of Respondent This R¡g0rt Is:Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18,2008 December 3 I, 200
GAS OPERA nON AN MAINTENANCE EXPENSES
If the amount for orevious vear is not derived from nreviouslv renort fiinres, exolain in footnotes.~Line Amount Current Year Previous Year
No.(a)(b) (e)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXENSES
239 Operation
240 907 Suoervision --
241 908 Customer Assistace Expenses 8,199,06 5,016,323
242 909 Informtiona and Instrctional Exoenses 3,566 3,470
243 910 Miscellaneous Customer Service and Informtional Exoenses 71,454 64,824
244 TOTAL Customer Service and Information Expenss (Lines 24 th 243)8,274,085 5,084,617
245 7. SALES EXPENSES
246 Operation
247 911 Suoervision --
248 912 Demonstrating and Sellng Expenses 667,884 676,838
249 913 Advertisinl! Exnenses 204,901 208,266
250 916 Miscellaneous Sales Expenses 115,494 87,182
251 TOTAL Sales Expenses (Enter Total of lines 247 thru 250)988,279 972,286
252 8. ADMINISTRATIVE AND GENEAL EXENSES
253 Operation
254 920 Administrative and General Salares 6,996,590 6,282,968
255 921 Office Supplies and Expenses 1,409,098 1,589,126
256 (Less) (922) Administrtive Exoenses Trasferrd-Cr.(17,993)m,342)
257 923 Outside Services Emploved 4,175,631 3,541,876
258 924 Property Insurance 338,376 353,651
259 925 Injuries and Daml!es 734,709 1,005,156
260 926 Emplovee Pensions and Benefits 251,683 259,350
261 927 Frachise Requirements --
262 928 Regularrv Commission Expenses 1,795,583 1,511,720
263 (Lss) (929) Duplicate Chal!es-Cr.--
264 930.1 General Advertising Expenses 2,258 2,143
265 930.2 Miscellaneous General Expenses 1,145,940 1,138,156
266 931 Rents 269,960 401,262
267 TOTAL Operation (Enter Tota of lines 254 th 266)-¡;;"" O~A
268 Maintenance
269 935 Maintenance of General Plant I 2,270,5841 1,832,244 I
270 TOTAL Administrtive and Genera Exp ITotal of lines 267 and 269)T 19,372,419 I 17,906,311 I
271 TOTAL Gas O. and M. Exp (Lines 97,177,201,229.237,244,25I,and 270)I 506,041,988 I 450,465,171 I
NUMBER OF GAS DEPARTMNT EMPLOYEES
I. The data on number of employees should be reportd constrction employee 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 afer Octo-deparent from joint function of combinaion utilities
ber 31.may be determined by estimate, on the basis of employee
2. If the respondents payroll for the reporting period equivalents.Show the estimated number of equivalent
includes any special constrction personnel, include such employees attibuted to the gas deparent from joint
emplovees on line 3, and show the number of such special functions.
1. Payroll Period Ended (Date)December 31, 2007
2. Total Reirlar Full-Time Emolovees 194 193
3. Total Part-Time and Temporar Emplovees alloction of General Emplovees 18 10
4.Allocation of Genera Emplovees 337 337
5. Total Emplovees 549 540
FERC FORM NO.2 (ED 12-88)Page 325
Name of Respondent This ¡ort Is:Date of Report Year of Report
X An Original (Mo, Da, Yr)
Avista Corporation D A Resubmission April 18, 2008 Dec. 31, 2007
Other Gas Supply Expenses (Account 813)
1 Report other gas supply expenses by descriptive titles that and losses on settlements of imbalances and gas losses
clearly indicate the nature of such expenses. Show not associated with storage separately. Indicate the
maintenance expenses, revaluation of functional classification and purpose of property to which
monthly encroachments recorded in Account 117.4 any expenses relate. List separately items of $250,000
or more.
Line Description Amount
No.(in Dollars)
(a)(b)
1 Gas Resource Management
2 Labor 570,851
3 Other Expenses (Phone Bils, Professional Services, Gas Reports, Travel, Training Etc.)424,770
4 Amortization of Gas Operations Database 175,762
5 Credit Exposure Reserve 5,419
6
7 Regulatory Affairs
8 Labor 53,510
9 Other Expenses (Phone Bills, Professional Services, Gas Reports, Travel Etc.)466,455
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39 TOTAL 1,696,767
FERC FORM NO.2 (ED 12-96)Page 334
Name of Respondent This report is:
(1) (X)An Original
Date of Report
(Mo, Da, Yr)
Year of Report
Avista Corp.(2) ( ) A Resubmission April 18, 2008 Dec. 31, 2007
MISCELLNEOUS GENERAL EXPENSES (Accunt 930.2) (Gas)
1. Provide the information requested below on miscellaneous general expenses.
2. For Oter Exenses, show the (a) purpose, (b) recipient and (c) amount of such itmes. List separately amounts of $250,00 or
more however, amounts less that $250,000 may be orouped if the number of items of so orouP is shown.
Une DescriptionNo. (a)
1 Industry Association Dues
2 Experimental and General Research Exenses
a. Gas Research Institute (GRI)
b. Oter
Publishing and Distrbuting Information and Report to Stockholders; Trustee, Registrar and Transfer
Agent Fees and Exenses, and Oter Expnses of Servicing Outtanding Secuntes of the
3 Respondent
4 Directors Fees and Expenses
5 Miscellaneous General Exenses
6 Community Relations
7 Educational - Informational
8 Other Miscellaneous General Expnses
9 Oter Miscellaneous Labor
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 TOTAL
Amount
(b)
224,296
o
o
28,437
168,953
511,357
116,825
27,346
68,726
1,145,940
FERC FORM NO.2 (ED. 12.96)Page 335
Name of Respond Th RiRr Is:Date of Reprt Yea of Reprt
(1) X An Ongi (Mo, Da, Yr)
A vita Corpration (2)D A Resubmision Apr 18, 208 Decbe 31, 20
DEPRETION, DEPLETION, .A AMORTITION OF GAS PLAN (Accounts 403, 404.1, 404.2, 404.3, 40.6, 405)
ffcet Amrttion of Acauisition Adiustments)
1. Report in Section A the amounts of depreiation betwee th reort yea (1971, 1974 and ever fi yea
expense, depletion and amortzation for the accounts in-ther).
dicate an clasifed accordig to the plan futiona Reprt in colum (b) al dereiable plan balances to
grups shown which rate ar applied and show a composite tota.(I
2. Report al avaible inormtion caled for in Sec-more deirble rert by plan account, sub acun or
tion B for the reprt yea 1971, 1974 and ever fi yea fuctiona clasifcation other th those prprte intherr.Reoort onv anua cha2es in th inteal colum (a). Indicate at the bottm of Section B the
Section A. S of D mreciation, Depletion, and Amorttion Ch.ies
Amortzation and Dele-Amorttion of Unde-
Lie Depiation tion of Prducing Natu grund Storage, Lad,
No.Fuctiona Clasifcation Exene Ga Lad and Lad Lad Rights and Mic.
(Acunt 403)Rights (Account 40.1)Intag (Accun 404.2)
(a)(b)(el (d)
1 Intable nlat 6.453
2 Prduction plat, maufact p'as 861
3 Production and gatherg plat,
natural .ias
4 Prducts extrction nlat
5 Unde1!und .ias storae:e plat 423.912
6 Other storae:e plat
7 Base load LNG teti and
I nreesinl! plat
8 Trsion plat 0
9 Distrbution plan 14,861,121
10 Geer plat 587,775
11 Common Geer plat-Alocate 1,411 735 'f ."'¡iii".'..!i¡¡~¡_,t ~ :: ~~ i ~i~i ~ ~ ~ifi ~dii~i~; ~ ~i~ ft¡m ~ ~ ~ ; .,~ ~~ ~S~~; ~ l
12
13
14
15
16
17
18
19
20
21
22
23
24
25 TOTAL 17,285,404 0 6,453
SectionB.
1. Plat balces liste in Secon C, Colum b ar deved at by ta the begig plat balce plus the endig plat balance
divide by two.
FERe FORM NO.2 (ED. 12-86)Page 336
Name of Respondent Th R~ort Is:Date of Report Yea of Reprt
(1) X An Ongi (Mo, Da, Yr)
A vista Corpration (2)0 A Resubmsion Apr 18, 2008 Decembe 31,200 I
DEPREIATION, DEPLETION, AN AMORTITION OF GAS PL (Accounts 40, 404.1, 40.2, 404.3, 40.6, 405)
(Ecent Amorttion of ACCluiition Adjustments) (Contiue)
maer in which colum (b) balces ar obtaed.If depeciation chges, show at the bottm of Section B
averge balces, state the methd of avergig used.any revisions made to esti gas reseres.
For colum (c) reprt avaiable inormtion for each plat 3. If provision for depiation were made durg the
function clasifcation liste in colum (a). If composite yea in addition to depeciation prvied by application
depreciation accountig is used.Report avaible inor-of rert rates, state at the bottm of Section B the
mation caed for in colums (b) and (c) on th basis.amounts and natu of the proviions an the plat ite
Where th unt-of -production metod is used to dete to which relate.
Section A. S of Deoeciation Depleton, an Amorttion Ch2es
Amortzation of Amorttion of
Other Lite-term Lesehold Amortzation of Tota Lie
Gas Plat Imrovemts Other Gas Plat (bto g)Funtiona Clssication No.
(Account 404.3)(Account 40.6 (Account 405)
and 40.75)
(e)(f (1')(hI (a)
162,826 169,279 :rble plant 1
861 Prduction olat, maufactu 2as 2
Production and gatherg plat,3
natural2as
Prducts extction plat 4
423,912 Undirund eas stora2e plat 5
Other storage plat 6
Base load LNG tetig and 7
prcesi plato Trsion plat 8
14,861,121 Distrbution pla 9
5,361 593,136 General plat 10
874,284 274'-'2,288,766 Common gener ulat-Alocate 11, ~ii~~.~~" ~r 12
13
14
15
16
17
18
19
20
21
22
23
24
1,037.110 8,108 0 18,337,075 TOTAL 25
FERe FORM NO.2 (E. 12-86)Page 337
Name of Resdent ThR~IS:Date of Rep Year of Rep
(1) X An Orgi (Mo. Da, Yr)
complet
A vita Cororaton (2)D A Resubmision Apr 18, 2008 Decembe 31,2007
SectionC.
Depeciable Applied
Line Functional Clsication:Plat Base Depr. Rate(s)
No.(Tousands)(percent)
(a)(b)(c)
Undeiwun Ga SWage Plant (2
1
2 350 60
3 351 1,100 1.75%
4 352 5,873 2.00%
5 352.2 229 2.22%
6 352.1 (Leasehold Impvements)234
7 352.3 6,121 2.54%
8 353 821 2.06%
9 354 2,002 2.32%
10 355 173 2.66%
11 356 407 2.97%
12 357 1,698 2.77%
13 Tota 18,718
14
15 Prduction - Maufactud Ga:
16 2305 0 2.80%
17 2311 0 1.80%
18 Tota 0
19
20 Distrbuton Pla
21 375.1 752 2.19%
22 376 269,242 2.38%
23 378 5,063 2.13%
24 379 2,574 2.24%
25 380 174,792 2.67%
26 381 68,979 1.94%
27 385 3,169 2.43%
28 387 1
29 Tota 524,572
30
31 Geeral Plat
32 390.1 2,677 2.61%
33 390.2 53
34 391 379 4.53%
35 391.1 5 6.30%
36 392 2,858
37 393 139 2.51%
38 394 2,929 4.24%
39 395 914 3.27%
40 396 2,508
41 397 1,150 9.82%
42 398 31 1.28%
43 Tota 13,643
44
45 Tota Depreciable Gas Plant 556,933
FERC FORM NO.2 (ED. 12-H6)Page 338-A
This Page Intentionally Left Blank
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 18, 2008 Dec. 31, 2007
Particulars Concerning Certain Income Deduction and Interest Charges Accounts
Report the information specifed below, in the order given, for the respeive income deduction and interest charges accounts.(a) Miscellaneous Amortization
(Account 425) - Describe the nature of items included in this accunt, the contra accunt 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 incoe deductions for the year as required by Accounts 426.1,
Donations; 426.2, Ufe Insurance; 426.3, Penalties; 426.4, Expediture for Certin Civic, Politcal and Related Activities; and 426.5, Other Deductions, of the
Uniform System of Accunts. Amounts of less the $250,00 may be grope by classes within the above accnts. (c) Interest on Debt to Associated Companies
(Account 430)-For each associated company that incurred interet on debt during the year, indicate the amount and interest rate respectively for (a) advances on
notes, (b) advance on open accunt, (c) notes payable, (d) accnts 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)
1 Acct. 425.00 - MISCELLANEOUS AMORTIZATIONS
2 Gas plant acquisition adj. Applicable to purchase of CP National,
3 Oregon & California distribution system. Contra account 115.00.1,110,572
4 Total - 425.00 1,110,572
5
6 Acct. 426.10 - DONATIONS
7
8
9
10 Project Share 200,000
11 Items Under $50,000 422,859
12
13 Total 426.10 622,859
14
15 Acct. 426.20 - LIFE INSURANCE
16 Offcers Life 472,775
17 SERP 2,084,715
18 Total 426.20 2,557,490
19
20 Acct. 426.30 - PENAL TIES
21
22 All Items Under $20,000 37,600
23 Total 426.30 37,600
24
25 Acct. 426.40 - EXPENDITURES FOR CERTAIN CiViC, POLITICAL,
26 AND RELATED ACTIVITIES
27 Items Under $250,000 1,097,891
28 Total 426.40 1,097,891
29
30 Acct. 426.50 - OTHER DEDUCTIONS
31
32
33 Kettle Falls Reserve Amortization (53,137)
34 Executive Deferred Com pensation (292,152)
35 Cash Reduction for PGE Monetization 88,125
36 Write-off unamoritized debt repurchase costs 3,849,725
37 Write-off other unamortized debt costs 206,456
38
39 Total 426.50 3,799,017
40
41
FERC FORM NO.2 (ED. 12-87)Page 340
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 18, 2008 Dec. 31, 2007
Particulars Concerning Certain Income Deduction and Interest Charges Accounts
Report the infonnation specified below, in the order given, for the respetive income deduction and interest charges accnts.(a) Miscellaneous Amortization
(Account 425) . Describe the nature of items included in this account, the contra accunt charged, the total of amortzation 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 Accunts 426.1,
Donations; 426.2, Ufe Insurance; 426.3, Pena~ies; 426.4, Expenditures for Certin Civic, Political and Related Activities; and 426.5, Other Deductions, of the
Unifonn System of Accounts. Amounts of less the $250,000 may be groupe by classes within the above accunts. (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 respecively 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)
1 Acct. 430.00 - INTEREST ON DEBT TO ASSOC. COMPANIES
2
3 Avista Capital II (lonQ-term debt) (variable rate ranged from 5.999 to 6.455 percent)3,277,565
4 AVA Capital Trust III (interest rate of 6.5 percent)4,020,640
5 Avista Capital, Inc.307,121
6
7 Total 430.00 7,605,326
8
9
10
11
12
13
14
15 Acct. 431.00 - OTHER INTEREST EXPENSE
16 Other 152,955
17 Interest on collateral deposits from counterparties 1,744,593
18 Interest on power and natural Qas deferrals 384,768
19 Interest on committed line of credit 342,358
20 Interest on customer deposits 274,943
21
22 Total 431.00 2,899,617
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
FERC FORM NO.2 (ED. 12-87)Page 340.1
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corpration (1) An Original (Mo, Da, Yr)End of 2007/Q4
(2) 0 A Resubmission 04/17/2008
REGULATORY COMMISSION EXPEN ES
1. Report particulars (details) of regulatory commission expenses incurred during the currnt 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 part.
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 . ueTerrea.
No.(Fumish name of regulatory commission or body the Regulatory of Expense for in Accunt
Current Year .18;2.3 a!docket or case number and a description of the case)Commission Utilty (b) + (c)Beginning 0 Year
(a)(b)(c)(d)(e)
1 Federal Energy Regulatory Commission
2 Charges include annual fee and license fees
3 for the Spokane River Project, the Cabinet
4 Gorge Project and the Noxon Rapids Project.1,899,333 52,351 1,951,684
5
6
7
8
9 Washington Utilties and Transportation
10 Commission: includes annual fee and various
11 other electric dockets 734,126 377,243 1,111,369
12
13 Includes annual fee and various other natural
14 gas dockets 420,821 113,821 534,642
15
16 Idaho Public Utilities Commission
17 Includes annual fee and various other electric
18 dockets 479,736 100,842 580,578
19
20 Includes annual fee and various other natural
21 gas dockets 215,534 44,431 259,965
22
23 Public Utilty Commission of Oregon
24 Includes annual fees and various other natural
25 gas dockets 510,858 246,039 756,897
26
27 Not directly assigned electric 671,517 671,517
28 Not directly assigned natural gas 244,080 244,08C
29
30
31
32 \
33
34
35
36
37
38
39
40
41
42
43
44
45
46 TOTAL 4,260,408 1,850,32~6,110,732
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 2007/Q4
(2) Fi A Resubmission 04/17/2008
REGULATORY COMMISSION EXPENSE (Continued)
3.Show in column (k) any expenses incurred in prior years which are being amortized. List in column (a) the penod of amortization.
4.List in column (f), (g), and (h) expenses incurred dunng year which were charged currntly 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 AcpUnt AmOUnt Accunt 182.3 Accunt Accunt 182.3 No.~o.End of Year
(f)g)(h)(i)u)(k)(I)
1
2
3
Electric 928 1,951,68'4
5
6
7
8
9
10
Electric 928 1,111,369 11
12
13
Gas 928 534,642 14
15
16
17
Electric 928 580,578 18
19
20
Gas 928 259,965 21
22
23
24
Gas 928 756,897 25
26
Electric 928 671,517 27
Gas 928 244,080 28
.29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
6,110,732 46
FERC FORM NO.2 (ED. 12-96)Page 351
Name of Respondent ThisR~ls:
(1) I! An Orgina
Date of Report
(Mo, Da, Yr)
Yea of Reprt
Avista Corp.(2) 0 A Resubmission Apnl 18. 2008 Decbe 31, 2007
DISTRUTON OF SAL AN WAGES
Report below the distribution of total salares and wages appropnate lines and colum provided. In deteining this
for the year. Segregate amounts originaly charged to clea- segregation of salares and wages onginally charged to clear-
ing accunts to Utilty Deparents, Constrcton. Plant ing accunts. a method of approximation giving substatially
Removals, and Other Accunts, and ente such amounts in the correct results ma be used.
Line
No.Classifcation
(a)1 Electrc
2 eration
3 Production
4 Tramission
5 Distrbution
6 Customer Accunts
7 Customer Serice and Informationa
8 Sales
9 Administrative and General
1 0 TOTAL 0 eration (Eter Tota of lines 3 th 9)
i 1 Maintenace
12 Prduction
13 Tranmission
14 Distrbution
15 Admnistrative and General
16 TOTAL Maintenance (Enter Tota of lines 12 th 15)
17 Tota eration and Maintenance
18 Production (Ente Tota of lines 3 and 12)
19 Trasmission (Ente Tota of lines 4 and 13)
20 Distrbution (Enter Tota oflines 5 an 14)
21 Customer Accunts 'be from line 6)
22 Customer Service and Inormation (Transcrbe frm line 7)
23 Sales (Transcrbe from line 8)
24 Admnistrative and General (Enter Tota of lines 9 and 15)
25 TOTAL . and Maint. (Tota of lines 18 th 24)26 Gas
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
FERC FORM NO.2 (ED 12-88)
Dir Payrll
Distribution
Allocation of
Payroll Charged
for Clearg
Accunts
(c)
Total
624.361
13.142
o
3,890,896
2,268,760
121,993
236,178
4,409,392
11,564,722
Page 354
Name of Respondent This R~rt Is:
(1) ~ An Origina
Date of Report
(Mo. Da, Yr)
April 18, 2008
Year of Report
Dember 3 I, 207Avista Corp.(2) 0 A Resubmission
Line
No.
Direct PayrIl
Distrbution
DISTRUTON OF SAL AN WAGES (Continued)
Allocation of
Payroll Charged
for Cleang
Accounts
(c)
Classification
(a)
Gas (Contiued)
48 Tota 0 eration and Maitenance
49 Production - Maufactued Gas (Enter Tota of lines 28 and 40)
50 Prducton - Natual Gas (Icluding ExpI. and Dev.) (Tota
of lines 29 and 41
Other Gas Su i (Eter Tota of lines 30 and 42)
Storage, LNG, Termnaing and Procssing (Tota of lines
31 and 43)
Tranmission (Ente Tota of lines 32 and 44)
Distribution (Eter Tota of lines 33 and 45)
Customer Accunts (Tranbe from line 34)
Customer Service and Informational (Transcribe from line 35)
Sales (Transcbe from line 36)
Administrative and General (Enter Tota of lines 37 and 46)
TOTAL ration and Maint. (Tota of lines 49 tl 58)
Other Utili De arents
eration and Mainteance
TOTAL AIl Utili De t. (Total of lines 25,59. and 61)
Utili Plant
Utili De arents)
51
52
468,112
6,248,179
2,268,760
121,993
236,178
4,409,392
14,390.117
53
54
55
56
57
58
59
60
61
62
63
64 Constrction (B
65 Electrc Plant
66 Gas Plant
67 Other
68 TOTAL Constrcton (Eter Tota of lines 65 tl 67)
69 Plant Removal (B Utili De arent) .
70 Electc Plant
71 Gas Plant
72 Other
73 TOTAL Plant Removal (Enter Total of lies 70 tl 72)
74 Other Accounts (Speify):
75 Stores Expense (163)
76 Unamortze debt expense (181)
Regulatory AssetS (182)
77 Preliminar Surey and Investigation (183)
78 Smal Tool Expense (184)
79 MisceIlaneous Defered Debits (186)
80 Capital Stok Expense (214)
81 Merchandising Expenses (416)
82 Non-operating Expenses (417)
83 Expenditures of Cern Civic, Politica and Related
84 Activities (426)
85 Employee Incentive Plan (232380)
86 DSM Tarf Rider and PayroIl Equlization Liabilty (24260. 242700)
87 Incentive I Stok Compensation (23800)
88
89
90
91
92
93
94
95
%
97
1.553.398
o
474.224
16,803
2,088,003
28.124,330
o
o
565.364
232,399
5,943,452
14,610.923
18.822
53,627,718
138,007.781
TOTAL Other Accounts
TOTAL SALARS AN WAGES
FERC FORM NO.2 (E 12-88)Page 355
225,326
(1,553.398)
(2.088,003)
(5,943,452)
(13,462,599)
(23,047,452)
(3,487,470)
Total
1,205,05
o
o
474,224
16,803
o
28,124.330
o
o
565,364
o
232.399
o
1.148.324
18,822
o
o
30,580,266
134,520.311
Name of Respondent This report is:
( Xl An Original
Date of Report Year Ending
(Mo,Da, Yr)
Avista Corp.( 1 A Resubmission April 18, 2008 Dec. 31, 2007
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 accunt (including plant accunts) for outside consulttive 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,
constructon, engineering, research, financial, valuation, legal, accunting, except those which should be reported in Accunt 426.4
purchasing, advertsing, 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.
1 Ascentium
2 Bain & Company Inc
3 Cerium Networks
4 Davis Wright Tremaine LLP
5 Dawson & Brown Trust
6 Dewey Ballantine LLP
7 Deloitte & Touchee LLP
8 Dorsey & Whitney LLP
9 Fujitsu Consulting Inc
10 Heller Ehrman White &...
11 Lake Pend Oreile Idaho Club
12 Lehman Brothers
13 Levitan & Associates Inc
14 Pacific Economics Group LLC
15 Paine Hamblen Coffn Brooke
16 Solution Beacon
17 US Fish & Wildlife Service
18 Van Ness Feldman
19 Winston & Strawn LLP
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Description
Ca)
*
Amount
(in dollars)
(c)
291,458
1,666,369
262,218
1,346,243
500,000
586,180
1,218,278
2,023,658
496,660
773,090
280,000
362,750
335,204
319,204
1,523.874
529,737
345,057
473,468
523,844
lb)
FERC FORM NO.2 (ED. 12-96)Page 357 (Next page is 512)
This Page Intentionally Left Blank
Name of Respondent This ~ort Is:Date of Report Year of Report
(1 ) X An Original (Mo,Da, Yr)
Avista Corporation (2)D A Resubmission April 18, 2008 Dec. 31, 2007
GAS STORAGE PROJECTS
1. I Report injections and withdrawals of gas for all storage projects used by respondent.
Gas Gas Total
Item Belonging to Belonging to Amount
linE Respondent Others (Dth)
No.(Dth)(Dth)
(a)(b)(c)(d)
. U.i-t:HA IIUNti (In Dth)
1 Gas Delivered to Storage
2 January 0 0 0
3 February 0 0 .0
4 March 0 0 0
5 April 0 0 0
6 May 549,020 0 549,020
7 June 923,484 0 923,484
8 July 940,804 0 940,804
9 August 598,411 0 598,411
10 September 433,699 0 433,699
11 October 50,340 0 50,340
12 November 0 0 0
13 December 27,027 0 27,027
14 TOTAL (Enter Total of Lines 2 Thru 13)3,522,785 0 3,522,785
15 Gas Withdrawn from Storage
16 January 1,120,547 0 1,120,547
17 February 934,399 0 934,399
18 March 251,350 0 251,350
19 April 43,048 0 43,048
20 May 125 0 125
21 June 2,754 0 2,754
22 July 19,036 0 19,036
23 August 38,984 0 38,984
24 September 13,094 0 13,094
25 October 14,836 0 14,836
26 November 74,491 0 74,491
27 December 447,310 0 447,310
28 TOTAL (Enter Total of Lines 16 Thru 27)2,959,974 0 2,959,974
29
30
31
32
33
34
35
36
FERC FORM NO.2 (ED 12-96)Page 512
Name of Respondent This (80rt Is:Date of Report Year of Report
(1) X An Original (Mo,Da, Yr)
A vista Corporation (2)0 A Resubmission April 18, 2008 Dec. 31,2007
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 quantitv is converted from Mcf to Dth, provide conversion factor in a footnote.
Line Item Total
No.Amount
(a)(b)
StoraQe Operations (In Dth)
1 Top or WorkinQ Gas End of Year (Note)6,393,216
2 Cushion Gas (IncludinQ Native Gas)7,482,962
3 Total Gas in Reservoir (Enter Total of Line 1 and 2)13,876,178
4 Certificated Storaqe Capacitv 15,208,804
5 Number of Injection - Withdrawal Wells 41
6 Number of Observation Wells 56
7 Maximum Day's Withdrawal from Storaqe 250,416
8 Date of Maximum Days' Withdrawal Januarv 13, 2007
9 LNG Terminal Companies (In Dth)(1 )
10 Number of Tanks
11 Capacity of Tanks
12 LNG Volumes
13 Received at "Shio Rail"
14 Transferred to Tanks
15 Withdrawn from Tanks
16 "Boil Of" Vaoorization Loss
17 Notes:
18
19 The above information represents the company's one-third share of the Jackson Prairie Underground Storage Project.
20
21 The factor to convert Met to Dth is 1.029.
22
23 (1) Respondent is a participant in the facilities, not an owner and is charged a fee for demand deliverability and capacity.
24
FERC FORM NO.2 (ED 12-96)Page 513
Name of Respondent This oo0rt Is:Date of Report Year of Report
(1) X An Onginal (Mo,Da, Yr)
Avista Corp.(2)0 A Resubmission Apn118,2008 Dec. 31, 2007
DISTRIBUTION MAINS
Show particulars Called for Conceminii Distnbution Mains
Total Length in I Taken up or Total Length
ine Kind of Matenal Diameter of Use Beginning of Laid Dunng Abandoned Dunn in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
(a)(b)fe)(d)fe)(f
1
2 Steel Wrapped Less than 2"8,801,760 1,499,520 0 10,301,280
3 Steel Wrapped 2"t04"2,719,200 105,600 21,120 2,803,680
4 Steel Wrapped 4"to 8"2,328,480 564,960 0 2,893,440
5 Steel Wrapped 8" to 12"179,520 21,120 0 200,640
6 Steel Wrapped Over 12"52,800 0 0 52,800
7
8 Plastic Less than 2"15,612,960 2,180,640 0 17,793,600
9 Plastic 2"to 4"2,967,360 612,480 0 3,579,840
10 Plastic 4"to 8"559,680 174,240 0 733,920
11 Plastic 8" to 12"0 0 0 0
12 Plastic Over 12"0 0 0 0
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37 TOTALS 33,221,760 5,158,560 21,120 38,359,200
Note: WP Natural Gas laid pipe is net of retirements.
FERC FORM NO.2 Page 514-Ä
Name of Respondent This Report Is:Date of Report Year of Report
(1)lE An Original (Mo, Da, Yr)
Avista Corp.(20 A Resubmission April 18, 2008 December 31, 2007
SERVICE PIPES GAS
Show the oarticulars called for concernim the line service ( ioe in Dossession of the rest ondent at the close of the vear.
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)(el)(e)m (a)
1
2 Steel Wrapped l' or Less 93,343 0 6,187 87,156 Not
3 Steel Wrapped 1" thru 2"2,480 82 710 1,852 Available
4 Steel Wrapped 2" thru 4"203 0 138 65
5 Steel Wrapped 4" thru 8"22 2 14 10
6 Steel Wrapped Over 8"2 0 1 1
7
8 Plastic l' or Less 258,644 4,890 43,731 219,803
9 Plastic 1" thru 2"4,760 0 1,791 2,969
10 Plastic 2" thru 4"228 0 124 104
11 Plastic 4" thru 8"11 0 6 5
12 Plastic Over 8"0 0 0 0
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27 TOTALS 359,693 4,974 52,702 311,965
FERC FORM NO.2 Page 514-8
Name of Respondent Th (g0rt Is:Date of Rert Year of Report
(1) X An Orgi (Mo, Da, Yr)
Avista Corp.(2)D A Reubmission Apri 18, 2008 De. 31,2007
CUSTOME'S METES
Owned
Line Siz Typ Make Capacity Beging Added Retied Owned
No.of Yea Durg Yea Durg Year End of Yea
(a)(b)(c)(d)(e)(f ( 1!)(h)
1 Detaed inormation not avaiable.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 TOTAL 324,229 17,274 7,680 333,823
FERC FORM NO.2 Page 514-C
Avista Corporation
This ~ort Is:
(1) ~ An Original
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
April 18, 2008
Year of ReportName of Respondent
Dec. 31, 2007
AUXILIARY PEAKING FACILITIES
1. Report below auxilary faciliies 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.
Was Facility Operated
on Day of Highest
Transmission Peak
Delivery?
Line
No.Yes
Ie)
No
(I)
FERC FORM NO.2 (ED 12-96)Page 519
Name of Respondent This Report Is:Date of Report Year of Report
~ An Original (Mo,Da, Yr)
Avista Corporation 0 A Resubmission April 18, 2008 Dec. 31, 2007
GAS ACCOUNT - NATURAL GAS
1 The purpose of this schedule is to account for the quantity 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
2 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 quantities that were not destined for interstate market or that were
3 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 quantities of gas
4 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
5 If the respondent operates two or more systems which supply quantities of gas that are stored by the reporting pipeline dunng
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
6 Also indicate by footnote the quantities of gas not subject quantities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the company's total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14.02, etc.
pipeline (2) the quantities the reporting pipeline
transported or sold through its local distribution facilties
01 NAME OF SYSTEM
Line
No.Item Amount of Dth
(a)fe)
2 GAS RECEIVED
3 Gas Purchases (Accounts 800-805)53,445,328
4 Gas of Others Received for Gatherina (Account 489.1)
5 Gas of Others Received for Transmission (489.2)
6 Gas of Others Received for Distribution (Account 489.3)14,876,504
7 Gas of Others Received for Contract Storage (Account 489.4)
8 Exchanaed Gas Received from Others (Account 806)
9 Gas Received as Imbalances (Account 806)
10 Receipts pf Respondent's Gas Transported by Others (Account 858)
11 Other Gas Withdrawn from Storaae (Explain)
12 Gas Received from Shippers as compressor Station Fuel
13 Gas Received from Shippers as Lost and Unaccounted for
14 Other Receipts (Specifv):
15 Total Receipts (Total lines 3 thru 14.?)68,321,832
16 GAS ni=i
17 Gas Sales (Accounts 480 - 484)32,858,448
18 Deliveries of Gas Gathered for Others (Account 489.1)
19 Deliveries of Gas Transported for Others (Account 489.2)
20 Deliveries of Gas Distributed for Others (Account 489.3)14,876,504
21 Deliveries of Contract Storaae Gas (Account 489.4)
22 Exchanae Gas Delivered to Others (Account 806)
23 Gas Delivered as Imbalances (Account 806)
24 Deliveries of Gas to Others for Transportation (Account 858)
25 Other Gas Delivered to Storage (Explain
26 Gas Used for Compressor Station Fuel
27 Other Deliveries (Specify): Sales for Resale 22,361,502
28 Total Deliveries (Total lines 17 thru 27.?)70,096,454
29 GAS I 11\1.a1 11 II\ITED FOR
30 Production System Losses
31 Gathering System Losses
32 Transmission System Losses
33 Distribution System Losses (1,774,622)
34 Storaae System Losses
35 Other Losses (Specify)
36 Total Unaccounted For (Total lines 30 thru 35)(1,774,622)
37 Total Deliveries & Unaccounted For (Total lines 28 thru 36)68,321,832
FERC FORM NO.2 (REV 04-04)Page 520
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
FOOTNOTE DATA
!Schedule Page: 224 Line No.: 3 Column: e
Line 3 - Avista Capital - Equity in Earnings Consists of:
($4,595,749)
$ 234,769($4,360,980)
Avista Capital YTD Net Income
Subsidiary (Avista Advantage) Equity Compensation booked to #123120
Line 3 - Avista Capital - Equity in Earnings
¡Schedule Page: 224 Line No.: 5 Column: f
Line 5 - Avista Capital - Other Changes in Net Investment:
Represents the liability to non-controlling interest at Advantage IQ
¡Schedule Page: 224 Line No.: 6 Column: fLine 6 - Avista Capital - Other Changes in Net Investment:
Represents the change in controlling ownership of Advantage IQ
I FERC FORM NO.2 (ED.
12-87) Page 450.1
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corpration (2) . A Resubmission 04172008 2007/Q4
FOOTNOTE DATA
!Schedule Page: 250 Line No.: 4 Column: i
Restricted Shares
Restrcted shares vest in equal thds each year over a thee-year period and are payable in Avista Corp. common stock at the end of
. each year if the servce condition is met. In addition to the servce condition, the Company must meet a retu on equity taget in order
for the CEO's restrcted shaes to vest. Dug the vestig period, employees are entitled to dividend equivalents whch are paid when
dividends on the Company's common stock are declared. Restrcted stock is valued at the close of maket of the Company's common
stock on the grant date.
The followig table suzes restrcted stock activity for the year ended December 31:
Unvested shares at beging of year
Shares granted
Shares cancelled
Shaes vested
Unvested shares at end of year
Weighted average fair value at grant date
Unrecognzed compensation expense at end of year (in thousands)
Intric value, unvested shares at end of year (in thousands)
Intric value, shares vested durg the year (in thousands)
2007 2006
36,180
31,860 36,260
(19,936)(80)
(19,967)--~~
$25.60 $21.32
$733 $439
$606 $916
$461 $
¡Schedule Page: 250 Line No.: 4 Column: j
Restricted Shares
Restrcted shaes vest in equal thds each year over a thee-year period and are payable in Avista Corp. common stock at the end of
each year if the servce condition is met. In addition to the servce condition, the Company must meet a retu on equity taget in order
for the CEO's restrcted shares to vest. Durg the vestig period, employees are entitled to dividend equivalents which are paid when
dividends on the Company's common stock are declared. Restrcted stock is valued at the close of market of the Company's common
stock on the grant date.
The followig table sumes restrcted stock activity for the years ended December 31:
2007 2006
36,180
31,860 36,260
(19,936)(80)
(19,967)--~~
$25.60 $21.2
$733 $439
$606 $916
$461 $
Unvested shares at beging of year
Shares granted
Shares cancelled
Shares vested
Unvested shares at end of year
Weighted average fair value at grant date
Unrecognzed compensation expene at end of year (in thousands)
Intric value, unvested shares at end of year (in thousands)
Intric value, shares vested durg the year (in thousands)
I FERC FORM NO.2 (ED. 12-87)Page 450.1
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/17/2008 2007/Q4
FOOTNOTE DATA
¡Schedule Page: 254 Line No.: 1 Column: b
Capital Stock Expense
The issuance costs increased by $1.5 millon in new issuance cost from the December 2006 issuance of 3.2 millon shares of common
stock. A reduction of $0.7 millon due to stock based compensation expense due to FASB 123(r). A $2.5 millon reduction due to
performance shares payout and witholding. The final reduction of $1.3 millon was due to the maturty of Series K preferred stock
and the re-classing of the issuance costs to retained earngs.
The following table sumarizes capital stock expense activity for the years ended December 31:
3.294,916
2006
10,246,442
(2,069,227)
(3,092,121)
1,334,005
6.419,099
Common Stock Issuance Costs
Tax Benefit on Options Exercised
Compensation Incentive accrual
Preferred Stock Issuance Costs, Series K
Year-end Balances
2007
12,952,041
(3,845,768)
(5,811,357)
¡Schedule Page: 254 Line No.: 1 Column: b
Footnote Linked. See note on 254, Row: 1, col/item:
I FERC FORM NO.2 (ED. 12-87)Page 450.1
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
FOOTNOTE DATA
!Schedule Page: 256 Line No.: 24 Column: h
Accounts 223 and 224 net changes during 2007
Advances from associated companes was reduced by $600,000. The sale of Avista Energy was the reason for the reduction.
The $26,250,000 Series K preferred stock matued September 15, 2007
The $12,000,000 of medium term notes matued in Janua 2007.
The followig table sumares accounts 223 and 224 net activity for the years ended December 3 I:
Advances from associated companies
Series K Preferred Stock
Medium term notes
Year-end Balances
2007
1,200,000
o
o
1,200,000
2006
1,800,000
26,250,000
12,000,000
40,050,000
¡Schedule Page: 256 Line No.: 29 Column: h
Accounts 223 and 224 net changes during 2007
Advances from associated companies was reduced by $600,000. The sale of Avista Energy was the reason for the reduction.
The $26,250,000 Series K preferred stock matued September 15, 2007
The $12,000,000 of medium term notes matued in Janua 2007.
The followig table sumes accounts 223 and 224 net activity for the year ended December 3 i :
Advances from associated companes
Series K Preferred Stock
Medium term notes
Year-end Balances
2007
1,200,000
o
o
1,200,000
2006
1,800,000
26,250,000
12,000,000
40,050,000
¡Schedule Page: 256 Line No.: 32 Column: hAccounts 223 and 224 net changes during 2007 .
Advances from associated companes was reduced by $600,000. The sale of Avista Energy was the reason for the reduction.
The $26,250,000 Series K preferred stock matued September 15, 2007
The $12,000,000 of medium term notes matued in Januar 2007.
The followig table sumares accounts 223 and 224 net activity for the years ended December 31:
Advances from associated companies
Series K Preferred Stock
Medium term notes
Year-end Balances
2007
1,200,000
o
o
1200,000
2006
1,800,000
26,250,000
12,000,000
40,050,000
I FERC FORM NO.2 (ED. 12-87)Page 450.1
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) 2S An Original (Mo, Da, Yr)
Avista Corporation (2)A Resubmission 04/172008 2007/Q4
FOOTNOTE DATA
¡Schedule Page: 261 Line No.: 5 Column: b
Taxable Incom Not Reported on Books
Tax NOT Book Income BPA C&RD Receipts
Tax NOT Book Income Contrbutions in Aid of Constrction - ElectrcTax NOT Book Income CSS Temp Servce Fees - il
Tax NOT Book Income CSS Temp Servce Fees - W A
Tax NOT Book Income Cutomer Uncollectibles - Sales for Resale - ED AN
Tax NOT Book Income Contrbutions In Aid of Constrction - Gas Nort
Tax NOT Book Income BETC - Oregon Puchased Tax Credits (§ 87%)
Tax NOT Book Income Contrbutions in Aid of Constrction - OR
Tax NOT Book Income Customer Uncollectibles - OR
Tax NOT Book Income Cutomer Uncollectibles (excluding ED AN
Tax NOT Book Income Cutomer Uncollectibles (excludig ED AN
Tax NOT Book Income Cutomer Uncollectibles (excluding ED AN
Tax NOT Book Income BETC Interest I Discount Perm Diff
Tax NOT Book Income Total
(108,870)
5,611,994
72,630
110,970
(26,662)
311,324
(155,683)
12,033
192,146
48,294
21,546
(50,153)
6,039,568
¡Schedule Page: 261 Line No.: 10 Column: b
Deductions Recorded on Books Not Deducted for Return
FERC Pg. 261 Detail 2007
Book NOT Tax Expense Book Depreciation - Electrc
Book NOT Tax Expense Book Depreciation - Electrc
Book NOT Tax Expense DSM - Old Electrc Program Amort
Book NOT Tax Expense F AS 106 - Deferred Amort Postretie Benefits - ED il
Book NOT Tax Expense F AS 106 - Deferred Amort Postretie Benefits - ED W A
Book NOT Tax Expense Montaa Settement - ED il
Book NOT Tax Expense Monta Settement - ED W A
Book NOT Tax Expense Non-moneta Purchased Power
Book NOT Tax Expense Rathdr Turbine Sales Tax Refud
Book NOT Tax Expense Redemption Expense Amort - PCBs
Book NOT Tax Expense WN3 - Investment Exchage Power
Book NOT Tax Expense Book Depreciation - Gas Nort
Book NOT Tax Expense Book Depreciation - Gas Nort
Book NOT Tax Expense DSM - Old Gas Program Amort
Book NOT Tax Expense F AS 106 - Deferred Amort Postretie Benefits - GD W A
Book NOT Tax Expense Book Depreciation - Gas South
Book NOT Tax Expense Book Depreciation - Gas South
Book NOT Tax Expense Tranporttion Book Depreciation
Book NOT Tax Expense Ailane Lease Payments
Book NOT Tax Expense FASI06 (68.6%0&M)
Book NOT Tax Expense Meal Disallowances
Book NOT Tax Expense Paid Time Off EqualizationBook NOT Tax Expense Redemption Expense Amort
Book NOT Tax Expense Tranporttion Book DepreciationBook NOT Tax Expense Ailane Lease Payments
Book NOT Tax Expense FAS106 (68.6%0&M)
Book NOT Tax Expense Meal Disallowances
Book NOT Tax Expense Paid Time Off Equalization
Book NOT Tax Expense Redemption Expense Amort
Book NOT Tax Expense Tranporttion Book Depreciation
Book NOT Tax Expense Ailane Lease Payments
Book NOT Tax Expense FASI06 (68.6%0&M)
I FERC FORM NO.2 (ED. 12-87) Page 450.1
YTD
67,852,899
1,280,293
88,782
250,574
(1,366,800)
(2,633,200)
241,209
(33,828)
194,949
2,450,031
10,898,141
437,557
55,561
7,438,934
122,167
209,655
(940,455)
223,560
240,005
5,652,715
1,092,226
52,695
(236,377)
56,190
60,324
1,420,770
271,097
23,509
(105,455)
Name of Respondent This Report is:Date of Report Year/Period of Report
(1 ) ~ An Original (Mo, Da, Yr)
Avista Corpration (2) A Resubmission 04/172008 2007/Q4
FOOTNOTE DATA
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense
Book NOT Tax Expense Total
Meal Disallowances
Paid Time Off Equalization
Redemption Expense Amort
40 i (I) ESOP Dividend Deduction
AVA Holding Co - Corporate Restrctue
Impaient on LM 2500
Political Contrbutions
Preferred Dividend Requirement
SERP - Supplemental Executive Retirement Plan
Tax-Exempt Interest Expense - Associated Co (Capita)
25,068
26,912
633,851
(977,211)
(330,470)
2,289,978
1,097,891
1,368,281
1,098,112
100,530,141
¡Schedule Page: 261 Line No.: 15 Column: b
income Recorded on Books Not included in Retur
Book NOT Tax Income AFC - Electrc
Book NOT Tax Income Boulder Park Disallow - IPUC Order 10/2004
Book NOT Tax Income Clark Fork PMEs - ED ilBook NOT Tax Income CS2 Retention - ED il
Book NOT Tax Income Gai General Offce Building - EDBook NOT Tax Income Grd West/TO Fundig - ED.ilBook NOT Tax Income Grd West/TO Funding - ED.WA
Book NOT Tax Income Idaho PCA
Book NOT Tax Income Injur & Damages - Electrc
Book NOT Tax Income Kette Falls Disallowance - ED W A
Book NOT Tax Income NE Tan Spil
Book NOT Tax Income Nez Perce Settement - ED il
Book NOT Tax Income Nez Perce Settement - ED W A
Book NOT Tax Income Section 199 Manufactug Deduction
Book NOT Tax Income Unbiled Revenue Add-ons - ED il
Book NOT Tax Income Unbiled Revenue Add-ons - ED WA
Book NOT Tax Income W A Deferred Power Costs
Book NOT Tax Income Warila UnitsBook NOT Tax Income AFUDC - Gas Nort
Book NOT Tax Income Decoupling Mechansm - W A Gas
Book NOT Tax Income Deferred Gas - GD il
Book NOT Tax Income Deferred Gas - GD W A
Book NOT Tax Income Gain General Offce Building - GD
Book NOT Tax Income Injur & Damages - Gas Nort
Book NOT Tax Income Unbiled Revenue Add-ons - GD il
Book NOT Tax Income Unbiled Revenue Add-ons - GD W ABook NOT Tax Income AFC - Gas SouthBook NOT Tax Income Deferred Gas - ORBook NOT Tax Income DSM - OR
Book NOT Tax Income DSM OR - Amortzation - 495600
Book NOT Tax Income DSM OR - Amortzation - 908250Book NOT Tax Income Injur & Damages - Oregon
Book NOT Tax Income Oregon Senate Bil 408 (SB 408)
Book NOT Tax Income Deferred Compensation Accrul
Book NOT Tax Income FASB 87 & Retiement Pay Accrual (68.6% O&M)
Book NOT Tax Income Interest Rate Swaps - Amortation
Book NOT Tax Income Deferred Compensation Accru
Book NOT Tax Income FASB 87 & Retiement Pay Accrul (68.6% O&M)
Book NOT Tax Income Interest Rate Swaps - Amortation
(1,388,432)
(103,654)
(268,099)
(277,292)
(196,092)
70,806
158,213
(10,833,675)
(295,338)
(135,135)
(75,085)
5,212
(22,008)
(4,965,269)
676,702
862,684
14,658,445
153,132
(127,119)
(819,609)
2,601,001
9,823,279
(65,364)
(308,675)
238
(4,810)
(103,552)
3,561,659
(1,068,900)
(132,012)
1,747,727
(6,396)
2,338,488
(683,519)
(1,364,454)
283,279
(171,798)
(342,946)
71,200
I FERC FORM NO.2 (ED. 12-87)Page 450.2
Name of Respondent This Report is:Date of Report Year/Period of Report
(1) 2Ç An Original (Mo, Da, Yr)
Avista Corporation (2) A Resubmission 04/172008 2007/Q4
FOOTNOTE DATA
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income
Book NOT Tax Income Total
Deferred Compensation Accrul
FASB 87 & Retiement Pay Accru (68.6% O&M)
Interest Rate Swaps - Amortation
Deferred Gas - il - Interest
Deferrd Gas - W A - Interest
DFIT on Equity Stock Comp
DFIT on Liabilty Stock Comp
Idaho PCA - Interest
Kettle Falls Nonoperatig - ED il
Kette Falls Nonoperating - ED il
Offcers Life Insurance (Cash Surender)
Offcer Life Inurance Benefit Accrual
PGE Monetization (Spokane Energy)
W A Deferred Power Costs - Interest
W A Deferred Power Costs - Interest
Tax-Exempt Interest Income
OR Deferred Gas - Interest
OR DSM Deferred - Interest
(76,644)
(152,999)
31,765
52,131
(178,609)
2,484,467
(293,861)
(787,859)
(53,138)
(865,385)
355,878
8,819,402
(3,023,199)
(544,055)
(435,940)
(314,562)
18,270,223
¡Schedule Page: 261 Line No.: 20 Column: bDeductions on Return Not Charged Against Book Incom
Tax NOT Book Expense BP A Residential Exchange - ED il
Tax NOT Book Expense BP A Residentil Exchage - ED W A
Tax NOT Book Expense Cost of Removal / Salvage - Electrc
Tax NOT Book Expense DSM Tarff Rider - ED il
Tax NOT Book Expense DSM Tarff Rider - ED W A
Tax NOT Book Expense Tax Depreciation - Electrc
Tax NOT Book Expense Tax Depreciation - Rathdr Turbine
Tax NOT Book Expense Cost of Removal / Salvage - Gas Nort
Tax NOT Book Expense DSM Tarff Rider - GD il
Tax NOT Book Expense DSM Tarff Rider - GD W A
Tax NOT Book Expense Tax Depreciation - Gas Nort
Tax NOT Book Expense Cost of Removal / Salvage - Oregon
Tax NOT Book Expense Tax Depreciation - OR Gas
Tax NOT Book Expense Transporttion Tax Depr Capitalized
Tax NOT Book Expense Transporttion Tax Depr Capitalized
Tax NOT Book Expense Tranporttion Tax Depr Capitalized
Tax NOT Book Expense Tranporttion Tax Depr Capitalized
Tax NOT Book Expense Tranporttion Tax Depr Capitalized
Tax NOT Book Expense Tranportation Tax Depr Capitalized
Tax NOT Book Expense Tax Depreciation - Basic American Foods Non-Utility
Tax NOT Book Expense Tax Depreciation - Sandpoint Acquisition Adjustment
Tax NOT Book Expense WPNG Acquisition OR - Book
Tax NOT Book Expense Tax Amortation WPNG Acquisition - OR
Tax NOT Book Expense Total
247,277
(1,867,860)
678,699
(120,014)
(2,978,404)
(84,530,922)
(3,850,611)
(107,651)
620,646
4,510
(17,048,531)
(18,516)
(8,833,966)
(80,282)
(687,674)
(249,080)
(172,842)
(61,823)
(77,110)
(12,785)
(458,114)
1,110,572
(768,683)
(119,263,165)
I FERC FORM NO.2 (ED. 12-87)Page 450.3
¡Avu -G
A vista Corp.
2007 Form 2
State Supplements
RECEIVED
28 AM 9: 09
WASHINGTON
State of Washington
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
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 Purcased 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, wit 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 yeats unclassifed
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).
Balance at
Line Account Beginning of Year Additions
No.(a)b (c)
1 INTANGIBLE PLANT
2 301 Organization 0
3 302 Franchises and Consents 0
4 303 Miscellaneous Intanaible Plant 249,450 7,811
5 TOTAL Intangible Plant (Enter Total of lines 2 thru 4)249,450 7,811
6 PRODUCTION PLA
7 Manufactured Gas Production Plant
8 304 Land and Lad Rights 0
9 305 Structures and Improvements 0
10 306 Boiler Plant Eauipment 0
11 307 Other Power Eauipment 0
12 308 Coke Ovens 0
13 309 Proucer gas equipment 0
14 310 Water Gas Generating Equipment 0
15 311 Liquefied Petroleum Gas Equipment 0
16 312 Oil Gas Generatina Eauipment 0
17 313 Generatina Eauipment-Oher Proceses 0
18 314 Coal, Coke, and ash handling equipment 0
19 315 Catalytic Cracking Equipment 0
20 316 Other reforming equipment 0
21 317 Purification equipment 0
22 318 Residual refining equipment 0
23 319 Gas mixing equipment 0
24 320 Other Eauipment 0
25
26 TOTAL Manuafactured Gas Production Plant (Enter Total of lines 8 thru 24)0 0
27 PRODUCTS EXCTION PLA
28 340 Land and Land Riahts 0
29 341 Structures and Imorovements 0
30 342 Exracton and Refining Equipment 0
31 34 Pipe Lines 0
32 344 Exracted Products Storage Equipment 0
33 345 Compressor Equipment 0
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
State of Washin ton
Year Ending
Avista Corp.1 A Resubmission Dec. 31, 2007
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 propert purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filng.
depreciation, acquisition adjustments, etc.,
Retirements Transfers Balance at End of Year Line
d f ( )No.
1
2
3
4
5
6
7
a 8
a 9
a 10
a 11
a 12
a 13
a 14
a 15
a 16
a 17
a 18
a 19
a 20
a 21
a 22
a 23
a 24
25
a a a 26
27
a 28
a 29
a 30
a 31
a 32
a 33
FERC FORM NO.2 (ED. 12-96) Page 205
State of Washington
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (ContinuecJ)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
34 346 Gas Measuring and Regulating Eauipment 0
35 347 Other Eauipment 0
36 TOTAL Products Exraction Plant (Enter Total of lines 28 thru 35)0 0
37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)0 0
38 Manufactured Gas Production Plant (Submit Supplementary Statement)0
39 TOTAL Production Plant (Enter Total of lines 37 and 38)0 0
40 NATURA GAS STORAGE AND PROCESSING PLANT
41 Underground Storage Plant
42 350.1 Land 412,611
43 350.2 Rights-of-Wav 59,812 0
44 351 Structures and Improvements 1,075,761 48,870
45 352 Wells 5,858,416 339,218
46 352.1 Storage Leaseholds and Riahts 254,354
47 352.2 Reservoirs 203,330
48 352.3 Non-recoverable Natural Gas 5,971,926
49 353 Lines 823,423 866
50 354 Compressor Station Eauipment 2,001,664 0
51 355 Measurina and Regulatina Eauipment 171,919 1,865
52 356 Purification Eauipment 407,251 367
53 357 Other Eauipment 1,685,911 32,834
54 TOTAL Underground Storage PlantlEnter Total of lines 42 thru 53)18,926,377 424,019
55 Other Storage Plant
56 360 Land and Land Rights 0
57 361 Structures and Improvements 0
58 362 Gas Holders 0
59 363 Purification Eauipment 0
60 363.1 Liauefaction Eauipment 0
61 363.2 Vaporizina Eauipment 0
62 363.3 Compressor EQuipment 0
63 363. Measurina and Regulatina Eauioment 0
64 363.5 Other Eauipment 0
65 TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)0 0
66 Base Load Liauefied Natural Gas Terminaling and Prossina Plant
67 364.1 Land and Land Rights 0
68 364.2 Structures and Improvements 0
69 364.3 LNG Processina Terminal Eauioment 0
70 364.4 LNG Transporation Eauipment 0
71 364.5 Measurina and Reaulatina Eauipment 0
72 364.6 Compressor Station Eauipment 0
73 364.7 Communications Eauipment 0
74 364.8 Other Eauipment 0
75 TOTAL Base Load Liq Nal' Gas, Terminal and Processing Plant (lines 67-74) 0 0
76 TOTAL Nall Gas Storaae and Processina Plant (Total of lines 54, 65 and 75)18,926,377 424,019
77 TRASMISSION PLAT
78 365.1 Land and Land Riahts 0
79 365.2 Riahts-of-Wav 0
80 366 Structures and Improvements 0
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
State of Washin ton
Year Ending
Avista Corp.( ) A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
d e f No.
0 34
0 35
0 0 0 0 36
0 0 0 0 37
0 38
0 0 0 0 39
40
41
412,611 42
59,812 43
1,124,630 44
6,197,634 45
254,354 46
203,330 47
5,971,926 48
4,743 819,546 49
2,001,664 50
173,784 51
407,618 52
9,133 1,709,611 53
13,876 0 0 19,336,519 54
55
0 56
0 57
0 58
0 59
0 60
0 61
0 62
0 63
0 64
0 0 0 65
66
0 67
0 68
0 69
0 70
0 71
0 72
0 73
0 74
0 0 0 0 75
13,876 0 0 19,336,519 76
77
0 78
0 79
0 80
FERC FORM NO.2 (ED. 12-96)Page 207
State of Washington
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.(1 A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
81 367 Mains 0
82 368 Compressor Station Eauipment 0
83 369 Measurina and Reaulatina Eauioment 0
84 370 Communications Equipment 0
85 371 Other Equipment 0
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0 0
87 DISTRIBUTION PLANT
88 374 Land and Land Rii:hts 60,272
89 375 Structures and Improvements 399,805 12,042
90 376 Mains 111,529,291 4,899,369
91 377 Compressor Station Eauipment 0
92 378 Measurina and Reaulatina Eauioment-General 2,424,169 78,502
93 379 Measuring and Regulating Equipment-City Gate 724,270 26,745
94 380 Servces 79,363,962 2,126,101
95 381 Meters 29,570,408 3,637,454
96 382 Meter Installations 0
97 383 House Reaulators 0
98 384 House Reaulator Installations 0
99 385 Industrial Measuring and Regulating Station Eauipment 1,797,460 104,237
100 386 Other Propert on Customers' Premises 0
101 386 Other Equipment 0
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)225,869,636 10,884,449
103 GENERA PLANT
104 389 Lad and Land Rii:hts 0
105 390 Structures and Improvements 757,042 217,469
106 391 Ofice Furniture and Eauioment 0
107 392 Transportation Equipment 2,555,147 16,716
108 393 Stores Equipment 84,272 0
109 394 Tools, Shop, and Garai:e Equipment 759,026 179,810
110 395 Laoratorv Eauipment 180,078
111 396 Power Operated Eauipment 2,552,183 46,648
112 397 Communication Eauipment 574,401 4,289
113 398 Miscellaneous Eauipment 0
114 Subtotal (Enter Totals of lines 104 thru 113)7,462,149 464,933
115 399 Other Tanaible Propert 0
116 TOTAL General Plant (Enter Totals of lines 114 and 115)7,462,149 464,933
117 TOTAL (Accounts 101 and 106)252,507,612 11,781,211
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)252,507,612 I 11,781,211 I
FERC FORM NO.2 (ED. 12-96)Page 208
State of Washinçion
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31 , 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)en (a)No.
0 81
0 82
0 83
0 84
0 85
0 0 0 0 86
87
0 60,272 88
1,668 410,179 89
110,005 (147,389)116,171,266 90
0 91
26,727 (513)2,475,432 92
0 751,015 93
20,549 (0)81,469,514 94
306,414 (5)32,901,442 95
0 96
0 97
0 98
5,286 1,896,410 99
0 100
0 101
102
103
o 104
108,492 866,019 105
0 106
204,390 2,367,473 107
84,272 108
10,733 928,103 109
127 179,952 110
12,099 2,586,732 111
135,878 442,812 112
0 113
471,720 0 0 7,455,362 114
0 115
471,720 0 0 7,455,362 116
956,245 0 (147,907)263,184,672 117
0 118
0 119
0 120
956,245 0 (147,907)263,184,672 121
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank
Name of Respondent This Report Is:Date of Report Year of Report
¡g An Original (Mo, Da, Yr)
Avista Corporation o A Resubmlssion April 18, 2008 Dec. 31, 2007
GAS STORED (ACCOUNT 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, AND 164.3)
1 " durring the year adjustments were made to the stored gas inventory 3 Stale in a footnote lhe basis of segregation 01 invenlory 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 assel 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 Currenl LNG LNG
Urn Description 117.1)117.2)(Account 117.3)117.4)(Account 164.1)(Account 164.2)(Account 164.3)Tolal
No.(a)(b)(c)(d)(a)(I)(g)(h)(i)
1 Balance at Beginning of Year 8,077,529 33,221 8,415,750
2 Gas Delivered to Storage 9,743,380 0 9,743,380
3 Gas Withdrawn from Slorage 9,690,449 33,221 10,028,670
4 Other Debits and Credits (63,596)0 (63,596)
5 Balance at End of Year 8,066,864 0 8,066,864
6 Dth 1,743,416 0 1.743,416
7 Amount Per Dekatherm $4.6270 $0.0000 $4,6270
8 Storage Is reported using the inventory method.
State of Washington
FERC FORM NO.2 (REV 04-04)Page 220
Name of Respondent This R~ort Is:
(1) L? An Original
Date of Report
(Mo,Da, Yr)
State of Washinaton
Year of Report
Avista Corporation (2) 0 A Resubmission Apnl 18, 2008 Dec. 31, 2007
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 billngs 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 Mef.
counts; except that where separate meter readings a 5. If increases or decreases from previous year (col-
added for billng purposes, one customer should be countei umns (c), (e) and (g), are not derived from previously
Line
No.
Title of Account
OPERATING REVENUES
Amount for
Previous Year
(c)
, '",. '.::.;r,',l . "'. '
129,424,936
74,973,137
4,143,795
420,604
208,962,472
50,986,936
259,949,408
259,949,408
(a)
1 GAS SERVICE REVENUES
2 480) Residential Sales
3 (481) Commercial and Industrial Sales
4 Small (or Comm.) (See Instr. 6
5 Lar e or Ind.) (See Instr. 6)
6 482 Other Sales to Public Authorities
7 484 Interdeoartmental Sales
8 T A.. ~ ales to Ultimate Consumers9 483 ales or Resale
10 T A.. r at.i;as-Service Revenues
11 Revenues from Manufactured Gas
12 TOTAL Gas Service Revenues
';; LlI HI:H "...".1 INU nc: v I~..
14 485 IntracomoanvTransfers
15 487 orfeitec Discounts
16 488 isc. Service Revenues
17 489 ev. from Trans. of Gas of Others
18 490 Sales of Prod.-ext. from Nat. Gas
19 491 Rev. from Nat. Gas Proc. by Others
20 492 Incidental Gasoline and Oil Sales
21 493 Rent from -ras-P-rooert
22 494 Interdeoartmental Rents
23 495 i Other Gas I evenues
24 TDT AL l ther )oerating Revenues
25 TOT AL l as 0 erating Revenues
26 (Less) (496 Provision for Rate Refunds
27 TOTAL i jas Operating Revenues Net of
Provision for Refunds
28 Dis. Type Sales by States (Inci. Main Line
Sales to Resid. and Comm. Custrs.)
29 Main Line Industrial Sales (Inc!. Main
Line Sales to Pub. Authorities)
30 Saies for ResaTe
31 Other Sales to Pu . Auth. (Local Dist. Only)
32 Interdeoartmental :)ales
33 TOTAL. (Same as ine 10, Columns (b) and (d))
Amount for Year--)
;.' tf.' c';;, ~~';~1f:: ,
132,209,994.,'" ..... "". ';." :
76,897,187
3,538,589
416,492
213,062,262 (1
90,882,501
303,944,763
303,944,763
13,294
3,257,764 (1
11,127
3,085,653
2,585,929
5,856,987
309,801,750
309,801,750
209,107,181
3,538,589
90,882,501
416,492
303,944,763
3,208,575
6,305,355
266,254,763
;'. '." :
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This R~ort Is:
(1) 12 An Original
(2) 0 A Resubmission
Date of Report
(Mo,Da, Yr)
State of Washinaton
Year of Report
Avista Corporation April 18,2008 Dec. 31. 2007
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Accunt 481, may be
classifed accrding to the basis of classifcation (Small or
Commercial, and Large or Industrial) regularly used by the
respondent if such basis of classification is not generally
greater than 200,000 Mel per year or approximately 800 Mcf
per day of normal requirements. (See Account 481 of the
Uniform System of Accunts. Explain basis of classification
in a footnote.)
7. See page 108, Importt Changes During Year,
for importnt new terriory added and importt rate increases
or decreases.
THERMS OF NATURAL GAS SOLD
Quantity for
Previous Year
te)
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Previous Year No.
(g)
Quantity for Year
(d)
Number for Year
(r)
. ...
I 100,085,153 128,089 125,230
",:"",: ';,,:..r:,:,,:,. "".',..' ,;,.", .;"1'..' :".,.,:,,,',:l'.,, ..':t\,", . ;..; ";";.;'i' ,'\.." .:,~ ,..,,,.::, '. '."63,868,710 13,494 13,2383,866,679 143 145
,,'":,
101.800,336
. ..." ,.' "d::'/ ., '.'.,,, "':.';:;"
65.871,472
3.327,071
375,058
171,373,937 (2)
144,208,129
315,582.066
382.804
168,203.346
88.020,723
256,224,069
31
141.757
141,757
31
138,64
138.644
";"f' ,,:.''¡ . .;.1;-:.;-.,:
",-.'.:':,,,," ';' , ,,.;"/":':,, ,'c' ::',' ;:"'~; ,:,l" i:" ,¡',.:,;: ",: .;,:,
";;": .' , ' , ,; ::::', .' ¡::" ¡, lld~,"",:
NOTES
(1) Includes ($1,000,322) unbiled revenues.
(2) Includes (119,857) therms relating to unbiled rèvenues.
':, :';." ,:,,,,,,)., :;,~ :.:;' ,::L.:';' .:.\¡, ., ;~'.',: "., . '.. .:.; ,
"::,, ,;",/"".,,,¡,,¡.,, ,¡;.', d':""" .
: '.:;:.., ,:L?t' ;''i\:'''. ?;,::;)i"'1':::,:;,:~,:,: ':':;':,::";;':.:: . .
., '. ,-, ,. :.';'.:. ,: ,.j' ".:.... ..
.";,',
j.::: ."
. !', . . ,'.:....'d,..
..".,:.'." ::";' .-:
i. ,,:.,.
'.:.'.;;'..Ti,,::,.
1
2
3
4
5
6
7
8
9
10-l
Hl~~~17is19W2122-r242526-W
2ã
29
3õ31"i~
FERC FORM NO.2 (ED. 12-86)Page 301
Slate of Washingon
Name of Respondent This Roo0rt Is:Date of Report Yea of Report
(l) X An Onginal (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Dember 31, 2007
GAS OPERATION AN MAINTENANCE EXPENSES
If th amount for previous yea is not derived frm previously reoorted fiimre, explain in footnotes.
Amount for Amount for
Line Amount Current Yea Previous Year
No.(aJ (b
i 1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production --
3 Manufactured Gas Prouction (Submit Supplementa Stament)
4 B. Natural Gas Prouction
5 B 1. Natural Gas Prouction and Gatherinii
6 Operation --
7 750 Operation Supervision and Eniiineeriii .-
8 751 Production Maps and Records --
9 752 Gas Wells Expenses --
10 753 Field Lines Expenses -.
II 754 Field Compressor Station Expenses --
12 755 Field Compressor Station Fuel and Power .-
13 756 Field Meaurinii and Relllatinii Station Expenses --
14 757 Puification Expenses ..
15 758 Ga Well Rovalties --
16 759 Oter Expenses -.
17 760 Rents -.
18 TOT AI Operation (Enter Tota of lines 7 th 17)--
19 Maintenance :~!i~IOOil~_~i~~~~J~.~OOl".:;¡~~l.~~l!_i..i~~rn¡~~:
20 761 Maintenance Supervision and Enl!ineerinl!--
21 762 Maintenance of Strctures and Improvements ..
22 763 Maintenance of Producing Gas Wells --
23 764 Maintence of Field Lines --
24 765 Maintenance of Field Compresor Station EQuipment --
25 766 Maintenace of Field Meas. and Reg. Sta EQuipment --
26 767 Maintenance of Puification EQuipment --
27 768 Maintenance of Dri1inii and Cleaninii EQuipment -.
28 769 Maintenance of Oter Eaipment --
29 TOT AI Maintenance (Enter Total of lines 20 th 28)..
30 TOT AI Natural Gas Prouction and Gatherinii (Total of lines 18 and 29)..
31 B2. Proucts Extrction
32 Operation
33 770 Operation Supervision and Enl!ineerinl!.-
34 771 Operaion Labor --
35 772 Gas Shrinkge .-
36 773 Fuel --
37 774 Power ..
38 775 Materias --
39 776 OPraion Supplies and Expenses ..
40 777 Gas Processed by Oters --
41 778 Royalties on Products Extrcted --
42 779 Marketinl! Expenses .-
43 780 Product Purchased for Resale ..
44 781 Variation in Prducts Inyentorv ..
45 (Lss) 782 Extrte Proucts Used by the Utilty-Credit --
46 783 Rents --
47 TOT AI Operation (Enter Tota of Lines 33 thru 46)--
FERC FORM NO.2 (ED 12.88)Page 320
State of Washington
Name of Respondent This Roort Is:Date of Report Year of Report
(I) X An Original (Mo, Da, fr)
Avista Corp.(2)0 A Resubmission April 18, 2008 December 31. 2007
GAS OPERA nON AN MAINTENANCE EXPENSES
~Line Amount Currnt Year Previous Year
No.(a)(b c
B2. Prouct Extraction (Continued)
48 Maintenace
49 784 Maintenance Sunervision and En"ineerin"--
50 785 Maintenace of Strctures and Improvements --
51 786 Maintenace of Extrction and Refinin" Eouioment --
52 787 Maintenance of Pioe Lines --
53 788 Maintenance of Extrted Products Stora"e Eouinment --
54 789 Maintenance of Comoressor Eouioment --
55 790 Maintenance of Gas Meaurinl! and Rev. E"uinment --
56 791 Maintenace of Other Eouioment --
57 TOTAL Maintenace tEnter Total of lines 49 th 56)--
58 TOTAL Product Extrction tEnter Tota of lines 47 and 57)--
59 C. Exoloraion and Develooment
60 Ooeration
61 795 Delav Rentals --
62 796 Nonoroductive Well Drillnl!--
63 797 Abandoned Leases --
64 798 Oter Exoloration --
65 TOTAL Exploration and Development (Enter Total of lines 61 thru 64)--
D. Other Gas Sunnlv Exnenses
66 Ooeration
67 800 Natur Gas Well Head Puchases --
68 800.1 Natural Gas Well Head Purchaes, Intromoanv Trasfers --
69 801 Natural Gas Field Line Purchases --
70 802 Natura Gas Gasoline Plant Outlet Pruchases --
71 803 Natural Gas Trasmission Line Purchases --
72 804 Natul Gas Citv Gate Purchases 209,289,908 173,04,085
73 804.1 Liquefied Natural Gas Purchaes --
74 805 Other Gas Puhaes --
75 (Lss) 805.1 Purchased Gas Cost Adiustments 2_13,874,833
76 '.:. .:l~i~li'
77 TOTAL Purchased Gas (Enter Total of lines 67 to 76)186,948,918
78 806 Exchange Gas -I -
79 Purchased Gas Exoenses ~.iliill~.I!l!I!I!linlii~~l!ll~'
80 807.1 Well Exoenses-Purchaed Gas --
81 807.2 Operation of Puchaed Gas Measurin" Staons --
82 807.3 Maintenace of Puhaed Gas Meaurin" Stations --
83 807.4 Purchaed Gas Calculations Exoenses -0
84 807.5 Other Purchased Gas Exnenses --
85 TOTAL Purchased Gas Exoenses (Eter Total of lines 80 th 84)-0
86 808.1 Gas Withdrawn from Storage-Debit 9,938,595 7,353,178
87 (l ess) 808.2 Gas Delivered to Stora"e-Credit -9,853,094 -6,955,129
88 809.1 Withdrawals of LiQuefied Natural Gas for Processinl!-Debit --
89 (Lss) 809.2 Deliveries of Natu Gas for Processin,,-Credit --
90 Gas Used in Utiltv Ooerations-Credit
91 810 Gas Used for Compressor Station Fuel-Credit --
92 811 Gas Used for Products Extrction-Credit -.
93 812 Gas used for Oter Utiltv Ooerations-Credit --
94 TOTAL Gas Used in Utiltv Onerations-Credit (Total of lines 91 thru 93)--
95 813 Other Gas Suoolv Exoenses 792,005 652,979
96 TOTAL Other Gas Supply Exp (Tota of lines 77,78,85,86 thru 89,94,95)219,986,068 187,999,945
97 TOTAL Production Exnenses CEnter Tota of lines 3,30,58,65, and 96)219,986,068 187,999,945
PERC FORM NO.2 (ED 12-88)Page 321
State of Washington
Name of Respondent This R~rt Is:Date of Report Yea of Report
(1) X An Ongina (Mo, Da Yr)
Avista Corp.(2)0 A Resbmission April 18, 2008 Dember 31, 200
GAS OPE nON AND MAINTEANCE EXENSES
Amount for Amount for
Line Amount Current Yea Previous Year
No.(a)(b)(c
98 2. NATUAL GAS STORAGE, TEMINALING AN
PROCESSING EXPENSES
99 A. U nderl!round Storal!e Expenses
100 Operation
101 814 Operation Supervision and Enl!ineerinl!18,086 69,408
102 815 Maps and Records --
103 816 Wells Expenses --
104 817 Lines Expense --
105 818 Compressor Station Expenses --
106 819 Comoressor Station Fuel and Power --
107 820 Measurnl! and Rel!latinl! Station Expenses --
108 821 Purification Expenses --
109 822 Exploration and Development --
110 823 Gas Losses --
III 824 Oter Expenss 218,560 183,172
112 825 Storal!e Well Rovalties -.
113 826 Rents -.
114 TOTAL Operation (Enter Tota of lines 101 th 113)236.646 252,579
115 Maintenace
116 830 Maintenance Supervision and Engineering -.
117 831 Maintenance of Strcturs and Imorovements --
118 832 Maintenance of Reservoirs and Wells -.
119 833 Maintenance of Lines ..
120 834 Maintenace of Comoresor Station EQUipment --
121 835 Maintenance of Measuring and Rel!latinl! Station Equipment --
122 836 Maintenance of Purifcation EQUipment --
123 837 Maintenance of Other Equipment 214,186 239,324
124 TOTAL Maintenance (Eter Total of lines I 16 th 123)214,186 239,324
125 TOTAL Underl!round Storal!e Expenses (Total of lines i 14 and 124)450,832 491,904
126 B. Other Storage Expenses
127 Operation
128 840 Operation Suoervision and Enl!ineerinl!--
129 841 Operation Laor and Expenses --
130 842 Rents --
131 842.1 Fuel --
132 842.2 Power .-
133 842.3 Gas Losses --
134 TOTAL Operation (Enter Tota of lines 128 th 133)--
135 Maintenance ¡1!~¡~iIWlll~II!~lill!!~lllilillltL.~~ilim~~~1111~.~~~~IIII~iil~!I!lilillI~IIIllllf~~JII¡.JI!
136 843. i Maintenace Supervision and Enl!ineerinl!.-
137 843.2 Maintenace of Strctures and Improvements .-
138 843.3 Maintenace of Gas Holders --
139 843.4 Maintenace of Purification EQuipment .-
140 843.5 Maintenance of LiQuefaction EQuipment ..
141 843.6 Maintenace of Vaooriinl! Eauipment --
142 843.7 Maintenace of Compressor EQuipment --
143 843.8 Maintenace of Measurinii and Rel!latinii Equipment --
144 843.9 Maintenace of Oter Eauipment --
145 TOTAL Maintenance (Enter Tota of lines 136 th 144)-.
146 TOTAL Other StorlUe Expenses (Enter Tota of lines i 34 and 145).-
FERC FORM NO.2 (E 12-88)Page 322
State of Washington
Name of Respondent This R~rt Is:Date of Report Year of Report
(1) X An Origin (Mo, Da, fr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Decmber 31, 2007
GAS OPERATION AN MAINTENANCE EXPENSES
~Line Amount Current Year Previous Year
No.(a)(b) (e)
147 C. Liquefied Natura Gas Terminaling and Processing Exoenses
148I Operation
149 844.1 Operation Supervision and Engineering --
150 844.2 LNG Processing Terminal Labor and Expenses --
151 844.3 Liauefaction Procssinl! Labor and Expenses ..
152 844.4 Liquefaction Transporttion Labor and Expenses --
153 84.5 Measuring and Regulating Labor and Expenses .-
154 844.6 Compressor Station Labor and Expenses --
155 84.7 Communication System Expenss --
156 844.8 System Control and Load Dispatching .-
157 845.1 Fuel --
158 845.2 Power --
159 845.3 Rents ..
160 845.4 Demurrl!e Charl!es -.
161 (Less) 845.5 Wharage Receipts-Credit --
162 845.6 Processing Liquefied or Vaoorized Gas bv Omers --
163 846.1 Gas Losses --
164 846.2 Omer Expenses .-
165 TOTAL Operation (Enter Tota of lines 149 th 164)--
166 Maintenance 1~'!lmllil!I!I!~~¡~I.~'''~I!~~¡I.~~~~~
167 847.1 Maintenace Supervision and Enl!ineerinl!--
168 847.2 Maintenace of Strctres and Improvements --
169 847.3 Maintenance of LNG Processing Termina Equipment .-
170 847.4 Maintenance of LNG Trasporttion Eauipment --
17 847.5 Maintenance of Measuring and Reir1ating Equipment --
172 847.6 Miantenace of Compressor Station EQipment --
173 847.7 Maintenace of Communication Eauipment --
174 847.8 Maintenance of Omer Eauipment --
175 TOTAL Maintenance (Enter Total of lines 167 th 174)--
176 TOTAL Liauefied Nat Gas Terminaling and Processinl! Exp (Lines 165 & 175)--
177 TOTAL Natural Gas storage (Enter Tota of lines 125, 146, and 176)450,832 491,903.64
178 3. TRANSMISSION EXPENSES
179 Operation
180 850 Operaton Supervision and Engineering --
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 Oter Fuel and Power for Compressor Stations ..
186 856 Mains Eimenses --
187 857 Measuring and Reirlating Station Exoenses -.
188 858 Transmission and Compression of Gas by Omers --
189 859 Oter Expenses -.
190 860 Rents --
191 TOTAL Operation (Enter Tota of lines 180th 190)--
FERC FORM NO.2 (ED 12-88)Page 323
State of Washington
Name of Respondent This Rffrt Is:Date of Repon Yea of Report
(I) X An Orginl (Mo, Da Yr)
Avist Corp.(2)D A Resubmission April 18, 2008 December 31,2007
GAS OPERATION AND MAINTENANCE EXPENSES
~Line Amount Cuent Year Previous Year
No.(a)(b) (c
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenace Suoorvision and Eni!Íneerinl!--
194 862 Maintena of Strctures and Improvements --
195 863 Maintenace of Mains --
196 864 Maintenace of Compressor Station Eouipment --
197 865 Maintenace of Measurinl! and ReI!. Station EQuipment --
198 866 Maintenace of Communication Eouipment --
199 867 Maintenace of Other EQuipment --
200 TOTAL Maintenace (Enter Total of lines 193 thni 199)--
201 TOTAL Tramission Exoonses ænter Tota of lines 191 and 200)--
202 4. DISTRIBUTON EXPENSES
203 Oooration
204 870 OPration Supervision and Enl!ineerinl!339,208 281,883
205 871 Distribution Load Dispatching -0
206 872 Compressor Staton Labor and Exoenses --
207 873 Compressor Staion Fuel and Power --
208 874 Mains and Services Exoonses 1,197,076 1,412,731
209 875 Measurinl! and Rel!ulatinl! Station Exnenses-Genera 47,217 69,298
210 876 Measurinl! and Rel!ulatinl! Station Exnenses-Industrial 3,587 584
211 877 Measurinl! and Rel!ulatinl! Station Expenses-Citv Gate Check Station 54,147 77,06
212 878 Meter and House Rel!ulator Exnenses 965,331 424,929
213 879 Customer Installations Exnenses 624,576 645,396
214 880 Oter Expenses 1,034,360 989,892
215 881 Rents 10,485 10,676
216 TOTAL Operation ænter Total of lines 204 thni 215). 3,912,454
217 Maintenance 1111Iilll~lill!11Iiillilil~!illlll¡~~11iÎlîjll!lll
218 885 Maintenace Sunervision and EMineenl!101,976 101,778.85
219 886 Maintenance of Strctures and Improvements -0
220 887 Maintenace of Mains 1.180,201 1,261,429
221 888 Maintenace of Compressor Station EQuipment --
222 889 Maintenace of Mea. and ReI!. Sta. EQuip.-Genera 98,00 97,477
223 890 Maintenace of Mea. and ReI!. Sta. EQuip. -Industial 90,404 26,372
224 891 Maintenace of Mea. and ReI!. Sta. EQuip.-Citv Gate Check Station 30,026 25,808
225 892 Maintenance of Services 402,342 441,785
226 893 Maintenace of Meters and House Reirlators 402,630 473,086
227 894 Maintenance of Other EQuipment 29,550 18,621.64
228 TOTAL Maintenance (Enter Total of lines 2 I 8 th 227)2,335,137 2,446,358
229 TOTAL Distrbution Expenses ænter Total of lines 2 I 6 and 228)6,611,125 6,358,812
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 217,052 207,194
233 902 Meter Readinl! Exnenses 1,045,974 1,00,946
234 903 Customer Records and Collection Exnenses 2,719,650 2,652,228
235 904 Uncollectible Accounts 665,193 622,645
236 905 Miscellaneous Customer Accounts Exoenses 77,308 73,749
237 TOTAL Customer Accounts Expenses (Enter Tota of lines 232 th 236)4,725,176 4,560,764
FEC FORM NO.2 (ED 12-88)Page 324
State of Washington
Name of Respondent This Roort Is:Date of Report Year of Report
(1) X An Original (Mo, Do, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 December 31, 2007
GAS OPERATION AND MAINTENANCE EXENSES
If the amount for previous vea is not derived from previouslv reportd fiirres, exnlain in footnotes.~Line Amount Current Year Previous Year
No.(a)(b (c
238 6. CUSTOME SERVICE AND INFORMATIONAL EXENSES
239 Ooeration
240 9fJ Suoervision --
241 908 Customer Assistace Expenses 4,608,082 3,214,244
242 90 Informational and Instrctional Exnenses 1,855 1,850
243 910 Miscellaneous Customer Service and Informational Expenses 47,638 43,354
24 TOTAL Customer Service and Informtion Exoenss (Lines 240 th 243)4,657,575 3,259,448
245 7. SALES EXENSES
246 Operation
247 911 Suoervision --
248 912 Demonstratiii and Sellinii Exnenses 293,312 298,842
249 913 Advertisinii Expenses 106,614 109,727
250 916 Miscellaneous Sales Expenses 115,488 87,182
251 TOTAL Sales Expenses (Enter Total of lines 247 th 250)515,414 495,751
252 8. ADMINISTRATIVE AND GENE EXPENSES
253 Oneration
254 920 Administrative and General Salares 3,214,654 2,885,529
255 921 Ofice Suoolies and Expenses 593,547 683,783
256 (Less) (922) Administrtive Expenses Traferred-Cr.-12,176 (7,672)
257 923 Outside Services Emoloved 1,953,973 1,664,966
258 924 Property Insurance 158,347 166,226
259 925 Iniuries and Damaiies 351,704 440,042
260 926 Emnlovee Pensions and Benefits 146,116 149,718
261 927 Frachise Reauirements --
262 928 Reirlarrv Commission Exnenses 648,857 607,459
263 I (Less) (929) Duplicate Chariies-Cr.--
264 930.1 Genera Advertisinii Expenss 2,258 2,142.92
265 930.2 Miscellaneous General Expenses 585,448 575,660
266 931 Rents 119,404 181,138
267 TOTAL Oneration (Enter Total of lines 254 th 266)
)0~'760~
. 'lA" 00")1
268 Maintenance
269 935 Maintenace of General Plant I 829,170
270 TOTAL Administrtive and General Exn (Tota of lines 267 and 269)T 8,790,8931 8,178,1611
271 TOTAL Gas O. and M. Exn (Lines 97, 177,201 ,229,237,244,25 i ,and 270)I 245,737,0821 211,344,7841
Operations Expense
Maintenace Expense
242,158,99
3,578,083
245,737,082
207,829,933
3,514,852
211,344,784
NUMBER OF GAS DEPARTMNT EMPLOYE
I. The data on number of employees should be reported constrction employees in a foonote.
for the payrll period ending nearest to October 3 I, or 3. The number of employees assignable to the gas
any payroll period ending 60 days before or afer Octo-deparent from joint function of combinaon utilities
ber 31.may be determined by estimate, on the basis of employee
2. If the respondent's payroll for the reporting period equivalents. Show the estimated number of equivalent
includes any special constrction personnel, include such employees attbuted to the gas deparent from joint
emplovees on line 3 and show the number of such sneial functions.
1. Pavroll Period Ended (Date)Decmber 31, 2Cf
2. Tota Reirlar Full-Time Emolovees 108 100
3. Total Par-Time and Temporar Emnlovees alloction of General Emplovees 9 5
4. Total Employees 117 105
Avista Corp.
This Report Is:
(1 ) (8 An Original
(2) D A Resubmission
Date of Report
(Mo,Da, Yr)
State of Washington
Year of ReportName of Respondent
April 18, 2008 Dec. 31, 2007
DISTRIBUTION MAINS
Show particulars Called for Concerninçi Distribution Mains
Total Length in I Taken up or Total Length
ine Kind of Material Diameter of Use Beginning of Laid During Abandoned Durin in Use End
No.Pipe, Inches Year, Feet Year, Feet Year, Feet of Year, Feet
(a)(b)(c)(d)(e)(f)
1 Steel Wrapped Less than 2"4,408,800 1,235,520 5,644,320
2 Steel Wrapped 2" to 4" 1,272,480 52,800 1,325,280
3 Steel Wrapped 4" to 8"1,224,960 475,200 1,700,160
4 Steel Wrapped 8" to 12"158,400 21,120 179,520
5 Steel Wrapped Over 12"52,800 52,800
6
7
8 Plastic Less than 2"6,309,600 1,119,360 7,428,960
9 Plastic 2" to 4" 1,024,320 390,720 1,415,040
10 Plastic 4" to 8"216,480 105,600 322,080
11 Plastic 8" to 12"0 0
12 Plastic Over 12"0 0
13
14
15
16
17
18
19
20
21
22
23
24
25
26 TOTALS 14,667,840 3,400,320 0 18,068,160
FERC FORM NO.2 Page 514-A
eo as ingion
Name of Respondent This Report Is:Date of Report Year of Report
(1)(8 An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission 4/18/2008 12/31/20071
SERVICE PIPES GAS
Show the oarticulars called for conceminc the line service iioe in possession of the res :)Qndent 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 Yea During Year of Year in Feet
(a)(b)(e)(d)(e)(f (q)
1 Steel Wrapped l' or Less ..48,119 5,348 42,771 Not
2 Steel Wrapped 1"thru2"1,627 620 1,007 Available
3 Steel Wrapped 2" thru 4"168 127 41
4 Steel Wrapped 4" thru 8"22 14 8
5 Steel Wrapped Over 8" 2 1 1
6
7
8 Plastic l' or Less 126,554 33,727 92,827
9 Plastic 1" thru 2"2,512 1,537 975
10 Plastic 2" thru 4"131 107 24
11 Plastic 4" thru 8"6 5 1
12 Plastic Over 8" 0 0
13
14
15
16
17 TOTALS 179,141 0 41,486 137,655
In 199640,0001" services were dropped from the report.
Stat fW h' t
FERC FORM NO.2 Page 514-8
State ofWasiron
Name of Repondent Th ¡ort Is:Date of Reprt Yea of Report
(1) X An Orgi (Mo, Da, Yr)
A vista Corp.(2)0 A Reubmision Apri 18, 2008 De. 31, 200
CUSTOMER'S METERS
Owned
Line Size Type Mak Capacity Begiing Added Retied Owned
No.of Yea Dug Year During Yea End of Yea
(a)(b)(c)(d)(e)en (1l)(h)
1 Detaed inormation not available.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 TOTAL 147,495 9,827 3,779 153,543
FERC FORM NO.2 Page 514-C
State of Washincton
Name of Respondent This Report Is:Date of Report Year of Report
~ An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 18, 2008 Dec. 31,2007
GAS ACCOUNT - NATURAL GAS
1 The purpose of this schedule is to account for the quantity or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilties or intrastate facilties, but not through any
2 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 quantities that were not destined for interstate market or that were
3 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 quantities of gas
4 Indicated in a footnote the quantiies 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
5 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
6 Also indicate by footnote the quantities of gas not subject quantities.
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 èompany's total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01, 14.02, etc.
pipeline (2) the quantities the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
linE
No.Item Amount of Dth (1 )
(a)fe)
2 GAS RECEIVED
3 Gas Purchases (Accounts 800.805)26,425,225
4 Gas of Others Received for Gatherinc (Account 489.1)
5 Gas of Others Received for Transmission (489.2)
6 Gas of Others Received for Distribution (Account 489.3)6,964,613
7 Gas of Others Received for Contract Storace (Account 489.4)
8 Exchanced Gas Received from Others (Account 806)
9 Gas Received as Imbalances (Account 806)
10 Receipts pf Respondent's Gas Transported bv Others (Account 858)
11 Other Gas Withdrawn from Storace (Explain)
12 Gas Received from Shippers as compressor Station Fuel
13 Gas Received from Shippers as Lost and Unaccounted for
14 Other Receipts (Specifv):
15 Total Receipts (Total lines 3 thru 14.?)33,389,838
16 GAS DELIVERED
17 Gas Sales (Accounts 480 . 484)17,137,394
18 Deliveries of Gas Gathered for Others (Account 489.1)
19 Deliveries of Gas Transported for Others (Account 489.2)
20 Deliveries of Gas Distributed for Others (Account 489.3)6,964,613
21 Deliveries of Contract Storace Gas (Account 489.4)
22 ExchanQe Gas Delivered to Others (Account 806)
23 Gas Delivered as Imbalances (Account 806)
24 Deliveries of Gas to Others for Transportation (Account 858)
25 Other Gas Delivered to Storace (Explain)
26 Gas Used for Compressor Station Fuel
27 Other Deliveries (Specify: Sales for Resale 10,535,232
28 Total Deliveries (Total lines 17 thru 27.?)34,637,239
29 GAS UNACCOUNTED FOR
30 Production System Losses
31 GatherinQ System Losses
32 Transmission System Losses
33 Distribution System Losses (1,247,401)
34 StoraQe System Losses
35 Other Losses (SpeciÑ)
36 Total Unaccounted For (Total lines 30 thru 35)(1,247,401)
37 Total Deliveries & Unaccounted For (Total lines 28 thru 36)33,389,838
FERC FORM NO.2 (REV 04-04)Page 520
Data Request for Statistics Report - 2007
Line No
1 GAS SERVICE REVENUES
2
3
4
5
6
7
8
9
10
11
12
13 THERMS OF GAS SOLD-TRANSPORTED
14
15
16
17
18
19
20
21
22 TOTAL THERMS OF GAS SOLD-TRANSPORTED
23
. 24
25
26
27
28
29
31
32
33
34
35
36
1H~~1m
1B~~~
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
OTHER OPERATING REVENUES
264,545,904
151,908,092
7,792,244
490,070
142,464,487
6,638,317
3,691,659
TOTAL GAS SERVICE REVENUES
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
SALES FOR RESALE
TRANSPORTATION OF GAS OF OTHERS
195,756,484
125,041,383
7,348,725
437,882
223,615,011
148,765,040
AVERAGE NUMBER OF GAS CUSTOMERS PER MONTH
RESIDENTIAL SALES
COMMERCIAL SALES
INDUSTRIAL SALES
OTHER SALES
TRANSPORTATION OF GAS OF OTHERS
273,415
32,353
276
52
84
257,752,600
146,581,144
11,676,035
491,509
94,971,782
6,498,720
4,333,830
192,832,941
120,988,742
11,039,977
442,701
157,426,570
149,717,330
267,345
31,746
295
51
78
132,209,994
76,897,187
3,538,589
416,492
90,882,501
3,257,764
2,599,223
101,800,336
65,871,472
3,327,071
375,058
144,208,129
69,646,130
128089
13,494
143
31
36
100,085,153
63,868,710
3,866,679
382,804
88,020,723
66,464,290
125,230
13,238
145
31
34
GAS Data.xls
IDAHO
Name of Respondent Th Report Is:
(l)~An Orgi
A vista Corporation (2)DA Resubmission
Date of Report
(Mo, Da, Yr)
State of Idao
Yea of Reprt
Apri 18, 2008 December 3 i, 2007
SUMY OF UTIT PLAN AN ACCUMATED PROVISIONS
FOR DEPRECIATION, AMORTIZTION AN DEPLETION
Line Item Total Electric
No.
(a)
1 UTILIT PLAN
2
3 796,823,282 670,684,893
4 1,646,656
5
6
7
8 798,469,938 670,684,893
9
10 39,828
11 3,250,034 1,383,832
12 0 0
13 801,759,800 672,068,725
14 0 0
15 801,759,800 672,068,725
16
17 In Service:
18 De reciation
19 Amort. and De 1. of Producing Nat. Gas Lad and Land Ri ts
20 Accumulate De reciation - Kette Falls
21 Amort. of Other Utility Plant
22 TOTAL in Service (Enter Tota of lines 18 th 21)
23 Leased to Oters
24 De reciation
25 Amortation and De letion
26 TOTAL Leased to Others (Enter Tota of lies 24 and 25)
27 Held for Futue Use
28 De reciation
29 Amortzation
30 TOTAL Held for Futue Use (Ent. Tot. oflines 28 and 29)
31 Abandonment of Leses (Natual Gas)
32 Amort of Plant Ac uisition Adustment 0 0
TOTAL Accumulate Provisions (Should agree with line 14 above)
33 (Enter Total of lines 22, 26, 30, 31, and 32)0 0
FERC FORM NO.2 (ED. 12-89)Page 200
A vista Corporation
Th R;Ert Is:
(1) ll An Original
(2) D A Resubmission Apri 18, 2008
Date of Report
State of Idaho
Yea of ReportName of Respondent
December 31, 2007
SUMY OF UTILIT PLAN AN ACCUMTED PROVISIONS
FOR DEPRECIATION, AMORTIZTION AN DEPLETION (Contiued)
Gas Other (Specif)Other (Specif)Other (Speify)Common Line
No.
1
2
120,785,323 5,353,066 3
403,189 1,243,467 4
5
6
7
121,188,512 6,596,533 8
9
39,828 10
1,863,078 3,124 11
12
123,091,418 6,599,657 13
0 14
123,091,418 6,599,657 15
o o 33
FERC FORM NO.2 (ED. 12-89)Page 201
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 105)
1. Report below the original cost of gas plant in service accrding 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 (Classifed), this distribution 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 Constrution 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. Attch 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).
Balance at
Line Account Beginning of Year Additions
No.(a)(b c
1 INTANGIBLE PLANT
2 301 Organization 0
3 302 Franchises and Consents 0
4 303 Miscellaneous Intangible Plant 103,362 65,088
5 TOTAL Intangible Plant (Enter Total of lines 2thru 4)103,362 65,088
6 PRODUCTION PLAT
7 Manufactured Gas Production Plant
8 304 Land and Land Rights 0
9 305 Structures and Imorovements 0
10 306 Boiler Plant Eauioment 0
11 307 Other Power Equipment 0
12 308 Coke Ovens 0
13 309 Producer gas equipment 0
14 310 Water Gas Generatina Equipment 0
15 311 UQuefied Petroleum Gas Equipment 0
16 312 Oil Gas Generating Equipment 0
17 313 Generating Equipment-Other Processes 0
18 314 Coal, Coke, and ash handling equipment 0
19 315 Catalyic Cracking Equipment 0
20 316 Other reforming equipment 0
21 317 Purification equipment 0
22 318 Residual refining equipment 0
23 319 Gas mixina equipment 0
24 320 Other Equipment 0
25
26 TOTAL Manuafactured Gas Prouction Plant (Enter Total of lines 8 thru 24)0 0
27 PRODUCTS EXACTION PLANT
28 340 Land and Land Rights 0
29 341 Structures and Improvements 0
30 342 Exraction and Refining Equipment 0
31 343 Pipe Unes 0
32 344 Exracted Products Storage Equipment 0
33 345 Compressor Equipment 0
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 204
State of Idaho
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.( 1 A Resubmission Dec. 31, 2007
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 credit to
distributions of these amounts. Careful observance of the primary account classifications.
above instructions and the text of Account 101 and 106 wil 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 utilty 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 properl purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed wit the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filng.
depreciation, acquisition adjustments, etc.,
Balance at End of Year Line
No.
1
2
3
4
5
6
7
o 8
o 9
o 10
o 11
o 12
o 13
o 14
o 15
o 16
o 17
o 18
o 19
o 20
o 21
o 22
o 23
o 24
25o 0 26
27
o 28
o 29
o 30
o 31
o 32
o 33
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
34 346 Gas Measurina and Reaulatina Eauipment 0
35 347 Other Eauipment 0
36 TOTAL Products Exraction Plant (Enter Total of lines 28 thru 35)0 0
37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)0 0
38 Manufactured Gas Production Plant (Submit Supplementary Statement)0
39 TOTAL Prouction Plant (Enter Total of lines 37 and 38)0 0
40 NATURAL GAS STORAGE AND PROCESSING PLANT
41 Underaround Storaae Plant
42 350.1 Land 0
43 350.2 Riahts-of-Wav 0
44 351 Structures and Improvements 0
45 352 Wells 0
46 352.1 Storaae Leaseholds and Rights 0
47 352.2 Reservoirs 0
48 352.3 Non-recoverable Natural Gas 0
49 353 Lines 0
50 354 Compressor Station Eauipment 0
51 355 Measurina and Reaulatina Eauipment 0
52 356 Puriication Equipment 0
53 357 Other Equipment 0
54 TOTAL Underground Storaae Plant (Enter Total of lines 42 thru 53)0 0
55 Other Storaae Plant
56 360 Land and Land Riahts 0
57 361 Structures and Improvements 0
58 362 Gas Holders 0
59 363 Purification Eauipment 0
60 363.1 Liauefaction Eauipment 0
61 363.2 Vaoorizina Eauipment 0
62 363.3 Compressr Eauipment 0
63 363.4 Measuring and Regulating Equipment 0
64 363.5 Other Equipment 0
65 TOTAL Other Storaae Plant (Enter Total of lines 56 thru 64)0 0
66 Base Load Liauefied Natural Gas Terminaling and Processing Plant
67 364.1 Lad and Land Riahts 0
68 364.2 Structures and Improvements 0
69 364.3 LNG Processina Terminal Equipment 0
70 364.4 LNG Transporation Equipment 0
71 364.5 Measuring and Regulating Equipment ,0
72 364.6 Compressor Station Equipment 0
73 364.7 Communications Equipment 0
74 364.8 Other Equipment 0
75 TOTAL Base Load Liq Natl Gas, Terminal and Processing Plant (lines 67-74)0 0
76 TOTAL Nat'l Gas Storage and Processina Plant (Total of lines 54,65 and 75)0 0
77 TRANSMISSION PLANT
78 365.1 Land and Land Riahts 0
79 365.2 Riahts-of-Wav 0
80 366 Structures and Improvements 0
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 206
State of Idaho
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.( i A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
d e (f No.
0 34
0 35
0 0 0 0 36
0 0 0 0 37
0 38
0 0 39
40
41
0 42
0 43
0 44
0 45
0 46
0 47
0 48
0 49
0 50
0 51
0 52
0 53
0 0 0 54
55
0 56
0 57
0 58
0 59
0 60
0 61
0 62
0 63
0 64
0 0 0 0 65
66
0 67
0 68
0 69
0 70
0 71
0 72
0 73
0 74
0 0 0 75
0 0 0 76
77
0 78
0 79
0 80
FERC FORM NO.2 (ED. 12-96)Page 207
Name of Respondent This report is:Date of Report Year Ending
( Xl An Onginal (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
81 367 Mains 0
82 368 Compressor Station Equipment 0
83 369 Measuring and Regulating Equipment 0
84 370 Communications Equipment 0
85 371 Other Equipment 0
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0 °
87 DISTRIBUTION PLAT
88 374 Lad and Lad Riohts 24,670
89 375 Structures and Improvements 131,036 39
90 376 Mains 55,084,209 8,933,386
91 377 Compressor Station Equipment 0
92 378 Measurino and Reoulatino Equipment-General 1,154,574 452
93 379 Measurino and Reoulatino EQuipment-Citv Gate 769,858 244,345
94 380 Services 39,799,432 1,808,536
95 381 Meters 9,360,539 1,094,737
96 382 Meter Installations 0
97 383 House Regulators 0
98 384 House Regulator Installations 0
99 385 Industrial Measuring and Regulating Station Equipment 489,324 34,214
100 386 Other Properl on Customers' Premises °
101 386 Other Equipment 0
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)106,813,642 12,115,709
103 GENERAL PLANT
104 389 Land and Land Rights 0
105 390 Structures and Improvements 0
391 Ofice Fumiture and Equipment 0
107 392 Transportation Equipment 815,319 53,278
108 393 Stores Equipment 0
109 394 Tools, Shop, and Garaoe Equipment 389,137 52,542
110 395 Laboratory Equipment 58,730
111 396 Power Operated Equipment 727,026 36,007
112 397 Communication Equipment 362,374 258
113 398 Miscellaneous Equipment 0
114 Subtota (Enter Totals of lines 104 thru 113)2,352,587 142,085
115 399 Other Tangible Propert 0
116 TOTAL General Plant (Enter Totals of lines 114 and 115)2,352,587 142,085
117 TOTAL (Accunts 101 and 106)109,269,591 12,322,881 I
118 Gas Plant Purchased (See Instruction 8)~~119 (Less) Gas Plant Sold (See Instruction 8)
120 Experimental Gas Plant Unclasified
121 TOTAL Gas Plant in Service (Enter Totals of lines 117 thru 120)109,269,591 12,322,881 I
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 208
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.(I A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 105)-(Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f (a)No.
0 81
0 82
0 83
0 84
0 85
0 0 0 0 86
87
0 24,670 88
926 130,150 89
369,874 147,389 63,795,110 90
0 91
9,185 513 1,146,355 92
1,014,203 93
32,918 0 41,575,050 94
5 10,455,280 95
0 96
0 97
0 98
523,538 99
0 100
0 101
412,902 0 147,907 118,664,356 102
103
0 104
0 105
0 106
93,250 775,347 107
0 108
4,773 436,906 109
41 58,689 110
763,033 111
40,899 321,734 112
0 113
138,964 0 0 2,355,707 114
0 115
138,964 0 0 2,355,707 116
551,867 0 147,907 121,188,512 117
0 118
0 119
0 120
551,867 0 147,907 121,188,512 121
State of Idaho
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
~ An Original (Mo, Da, Yr)
Avista Corporation o A Resubmission April 18, 2008 Dec, 31. 2007
GAS STORED (ACCOUNT 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, AND 164.3)
1 If durring the year adjustments were made to the stored gas inventory 3 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 prot ions, Also slate in a footnole 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 doliar amount of adjustment, and account inventory method),
charged or credited.
2 Report in column (e) ali 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
ina Description 117.1)117,2)(Account 117,3)117.4)(Account 164,1)(Account 164.2 (Account 164,3)Total
No.(a)(b)(c)(d)(e)(f)(g)(h)(i)
1 Balance at Beginning of Year 3,257,351 122,885 3,380,236
2 Gas Delivered to Storage 4,246,759 0 4,246.759
3 Gas Withdrawn from Storage 3,947,615 122,885 4,070,500
4 Other Debits and Credits (25,774)0 (25,774)
5 Balance at End of Year 3,530,721 0 3,530,721
6 Dth 765,464 0 765,464
7 Amount Per Dekatherm $4.6125 $0.00 $4,6125
8 Storage is reported using the inventory method,
Stale of Idaho
FERC FORM NO.2 (REV 04-04)Page 220
Name of Respondent This R,.rt Is:
(1) (l An Original
Date of Report
(Mo,Da, Yr)
State of Idaho
Year of Report
Avista Corporation (2) 0 A Resubmission April18,2008 Dec. 31, 2007
GAS OPERATING REVENUES (Account 40)
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 billng 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 billngs are on a therm basis, give the Btu con-
tents of the gas sold and the sales converted to Met.
5. If increases or decreases from previous year (col-
umns (c), (el and (g), are not derived from previously
Line
No.
Title of Account
OPERATING REVENUES
Amount for
Previous Year
(c)(a)
1 GAS SERVICE REVENUES
2 (480) Residential Sales
3 481) commercial and Industrial Sales
4 Smal or Comm.) (See Instr. 6)
5 Lar e or Ind.) (See Instr. 6)
6 482 uther Sales to Public Authorities
7 484 Interdepartmental Sales
8 T-. AL Sales to Ultimate Consumers
9 (483 Sales for Resale
10 T TAL Nat. Gas Service Revenues
11 Revenues from Manufactured Gas
12 TOTAL Gas Service Revenues13 Loll Ht:H UI"t:,".l1T!!,r~
14 485 Intracompanv Transfers
15 487 Forfeited Discounts
16 488 Misc. Service Revenues
17 489 Rev. from Trans. of Gas of Others
18 490 sales of Prod. E xt. from Nat. Gas
19 491 Rev. from Nat. ( as -Proc. bv Others
20 492 Incidental Gaso ine and Oil Sales
21 493 Rent from Gas rooert
22 494 Interdepartmental Rents
23 495 Other Gas Revenues
24 TOTAL Other Ooeratina Revenues
25 TC TAL Gas Ooeratina Revenues
26 (Less (496) Provision for Rate Refunds
27 TOTAL Gas operating Revenues Net of
Provision for Refunds
28 Dis. Type Sales by States (Incl. Main Line
Sales to Resid. and Comm. Custrs.)
29 IMain Line industrial Sales (Incl. Main
Line Sales to Pub. Authorities)
30 Sales for Resale
31 Other ~ales to Put. Auth. (Locai Dist. Onlv)
32 Interdepartmental 5ales
33 TOTAl (Same as ine 10,-Columns (b) and (d))
Amount for Year
(b)
, .
28,211,458
2,194,100
51,399
84,985,3121(1
84,985,312
84,985,312
54,183,029
28,804,772
2,474,958
47,300
85,510,059
85,510,059
85,510,059
54,528,355
, ,": ... ¡.t',:;;:;
, .' .
12,145
794,474 (1
9,673
863,512
14,676
821,295
85,806,607
85,806,607
82,739,813
2,194,100
o
51,399
84,985,312
9,891
883,076
86,393,135
::;¡ ¡ : ",
':",;"',;"
::/:;'::,\ - ,,'
..');',;,.,:~;d,,:. ,1. .',. ,¡
FERC FORM NO.2 (ED. 12-86)Page 300
Name of Respondent This ~ort Is:
(1 ) l! An Original
(2) 0 A Resubmission
Date of Report
(Mo,Da, Yr)
State of Idaho
Year of Report
Avista Corporation April 18,2008 Dec. 31, 2007
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 Mel per year or approximately 800 Mel
per day of normal requirements. (See Accunt 481 of the
Uniform System of Accounts. Explain basis of classification
in a footnote.)
7. See page 108, Important Changes During Year,
for importnt new territory added and important rate increases
or decreases.
i
44,583,042 43,125,248 62,345 60,668 2
3
25,103,633 24,879,096 7,858 7,648 4
2,120,805 2,324,647 100 102 5
6
47,342 42,307 6 5 7
71,854,822 2 70,371,298 70,309 68,423 8
9
71,854,822 70,371,298 70,309 68,423 10
;. ,"."II'",12
AVG. NO. OF NAT. GAS CUSTRS. PER MO.
Number for Line
Number for Year Previous Year No.
t)
THERMS OF NATURAL GAS SOLD
Quantity for
Previous Year
e
Quantity for Year
(d)
NOTES
(1) Includes ($263,172) unbiled revenues.
(2) Includes 25,729 therms relating to unbiled revenues.
28
29
'.-.j'- .
.,:" _.' '., ;,: i -.: ,'. " ..;~:,'. '0.:-': ,"'t.:' .i .:::
30
31
32
33
FERC FORM NO.2 (ED. 12-86)Page 301
State of Idaho
Name of Respondent This R~rt Is:Date of Report Yea of Report
(I) X An Ongin (Mo, Do. Yr)
Avista Corp.(2)0 A Resbmission April 18, 2008 Decmber 31,200
GAS OPERATION AN MAINlEANCE EXENSES
If the amount for nrevious yea is not derived frm nreviouslv reportd figures, explain in footnotes.
Amount for Amount for
Line Amount Current Year Previous Year
No.(a)c
I 1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production --
3 Manufactured Gas Production (Submit Sunnlementa Statement)
4 B. Natura Gas Pruction
5 B I. Natural Gas Production and Gathering
6 Oneration --
7 750 Operation Suoervision and Enl!ineering --
8 751 Prouction Mans and Records --
9 752 Gas Wells Exoenses --
io 753 Field Lines Exoenses -.
II 754 Field Comoressor Station Exnenses --
12 755 Field Comoressor Staion Fuel and Power --
13 756 Field Measuring and Regulatinl! Station Exoenses --
14 757 Purification Exnenses .-
15 758 Gas Well Rovalties --
16 759 Oter Exoenses --
17 760 Rents --
18 TOTAL ODeration mnter Tota of lines 7 th 17).-
19 Maintenance
20 761 Maintenace Suoervision and Enl!ineerinl!.-
21 762 Maintenace of Strctures and Imnrovements --
22 763 Maintenance of Producinl! Gas Wells -.
23 764 Maintenance of Field Lines --
24 765 Maintenance of Field Compressor Station Eauinment .-
25 766 Maintenance of Field Meas. and Reg. Sta. Eauinment .-
26 767 Maintenance of Purification Eauioment .-
27 768 Maintenance of Driling and Cleaning EQUioment --
28 769 Maintenance of Oter Eouioment ..
29 TOTAL Maintenance CEter Tota of lines 20 th 28)--
30 TOTAL Natral Gas Production and Gathering (Total of lines 18 and 29)--
31 B2. Products Extrction
32 Ooeration
33 770 Ooeration Suoervision and Engineering -.
34 771 Ooeration Labor .-
35 772 Gas Shrinage -.
36 773 Fuel --
37 774 Power -.
38 775 Materials .-
39 776 Ooration Suoolies and Exoenses --
40 777 Gas Processed bv Oters --
41 778 Royalties on Prducts Extrcted .-
42 779 Marketing Exoenses --
43 780 Product Purchaed for Resale --
44 781 Varation in Products Inventorv ..
45 (Lss) 782 Extracted Products Used bv the Utiltv-Credit --
46 783 Rents .-
47 TOTAL Ooeration (Enter Tota of Lines 33 th 46).-
FERC FORM NO.2 (ED 12-88)Page 320
State of Idaho
Name of Respondent This R~ort Is:Date of Report Year of Report
(l) X An Onginal (Mo, Da, Yr)
Avist Corp.(2)0 A Resubmission Apnl 18, 2008 Decmber 31,2007
GAS OPERATION AN MAINTENANCE EXPENSES
~Line Amount Current Year Previous Year
No.(a)(b c
B2. Pruct Extrtion (Continued)
48 Maintenace
49 784 Maintenace Suoervision and Engineering --
50 785 Maintenance of Strctures and Improvements --
51 786 Maintenance of Extraction and Refining Eauioment --
52 787 Maintenance of Pipe Lines --
53 788 Maintenace of Extrcted Product Storage EOuioment --
54 789 Maintenace of Comoressor Eauioment --
55 790 Maintenace of Gas Measunn.. and Re... Eauinment --
56 791 Maintenance of Other Eauioment --
57 TOTAL Maintenance ffnter Total of lines 49 th 56)--
58 TOTAL Products Extrcton (Enter Total of lines 47 and 57)--
59 C. Exoloration and Develooment
60 Operation
61 795 Delav Rentals --
62 796 Nonproductive Well Drilin..--
63 797 Abandoned Leases --
64 798 Other Exploration --
65 TOTAL Exnloration and Develooment (Enter Total of lines 61 th 64)--
D. Other Gas Suonlv Exnenses
66 Operation
67 800 Natural Gas Well Head Purchases --
68 800. I Natural Gas Well Head Purchaes, Intromoanv Trasfers --
69 801 Natura Gas Field Line Purchaes --
70 802 Natura Gas Gasline Plant Outlet Prchases --
71 803 Natural Gas Transmission Line Purchases --
72 804 Natural Gas City Gate Purchases 87,313,213 72,199,682
73 804. I Liauefied Natura Gas Purchaes --
74 805 Oter Gas Purchases --
75 (Less) 805.1 Purchased Gas Cost Adiustments lI:lU.o:l,¿
76 ;,:t~~~~r:~l!lil:
77 TOTAL Puchased Gas (Enter Tota of lines 67 to 76)89,914,214 80,050,334
78 806 Exchange Gas --
79 Purchased Gas Exnenses ,~I'!'ii!!':!~_!I~~ll!i~l~l~11.~,l1l~~I~~~!l~~I~llil~~~I,.
80 807.1 Well Expenses-Purchased Gas --
81 807.2 Ooeration of Purchased Gas Measuring Stations --
82 807.3 Maintenace of Purchased Gas Meauring Stations --
83 807.4 Purchased Gas Caculations Exnenses --
84 807.5 Other Purchased Gas Exnenses --
85 TOTAL Purchased Gas Expenses ffnter Tota of lines 80 th 84)--
86 808.1 Gas Withdrawn from Storage-Debit 4,134,151 2,963,162
87 (Lss) 808.2 Gas Delivered to Storage-Credit (4,098,585)(2,802,758)
88 809.1 Withdrawals of Liauefied Natural Gas for Processing-Debit --
89 (Ls) 809.2 Deliveries of Natual Gas for Processing-Creit --
90 Gas Used in Utiltv Operations-Credit
91 810 Gas Used for Comoressor Station Fuel-Credit --
92 811 Gas Used for Product Extrtion-Credit --
93 812 Gas used for Oter Utiltv Onerations-Credit --
94 TOTAL Gas Used in Utiltv Ooerations-Credit (Total of lines 91 th 93)--
95 813 Oter Gas Suoolv Exoenses 383,00 316,422
96 TOTAL Other Gas Suoolv Exo (Total of lines 77,78,85,86 th 89,94,95)90,332,787 80,527,160
97 TOTAL Production Exoenses (Enter Total of lines 3,30,58,65, and %)90,332,787 80,527,160
FERC FORM NO.2 (ED 12-88)Page 321
Slate of Idaho
Name of Respondent This R¡gn Is:Date of Repon Yea of Repon
(1) X An Onginal (Mo, Do Yr)
Avist Corp.(2)0 A Resbmision Apnl 18, 2008 Decmber 31, 2007
GAS OPERATION AN MAINTENANCE EXPENSES
Amount for Amount for
Line Amount Current Yea Prvious Year
No.(a)(b (c
98 2. NATURAL GAS STORAGE, TEMINAUNG AN
PROCESSING EXPENSES
99 A. Underl!round Storal!e Exoenses
100 Operation
101 814 Operation Supervision and Enidneennii 7,002 25,218
102 815 Maps and Records --
103 816 Wells EXDenses --
104 817 Lines EXDense --
105 818 Compressor Station Exoenses --
106 819 ComDressor Station Fuel and Power --
107 820 Meaunnii and Rel!latinii Station Expenses --
108 821 Purification Exoenses --
109 822 Exploration and Development --
110 823 Gas Losses --
111 824 Other Exoenses 84,617 66,551
112 825 SlOraiie Well Royalties --
113 826 Rents --
114 roT AL Operation (Enter Tota of lines 101 thn 113)91,619 91,769
115 Maintenance
116 830 Maintenance Suoervision and Enl!ineerinl!--
117 831 Maintenan of Strctures and Improvements --
118 832 Maintenance of Reservoir and Wells --
119 833 Maintenace of Lines -.
120 834 Maintenace of Compressor Staon EQuipment --
121 835 Maintenace of Meaurinl! and Rel!latinl! Station Eouioment .-
122 836 Maintenace of Purification EQuipment --
123 837 Maintenace of Oter Equipment 82,923 86,953
124 TOTAL Maintenance lEterTotal of lins 116 th 123)82,923 86,953
125 TOTAL Underiiround Storaiie Exoenses (Total of lines 114 and 124)174,542 178,722
126 B. Other Storal!e Exoenses
127 Operation
128 840 Operation Supervision and Eniiineerinii --
129 841 Ooration Labor and Exoenses --
130 842 Rents --
131 842.1 Fuel --
132 842.2 Power --
133 842.3 Gas Losses --
134 TOTAL Operation (Eter Tota of lines 128 th 133)--
135 Maintenance ~1I~11~"~!¡ll~IIl%'~~!!!iii!~ill!~~I~~~~W~~~~m!~in~i!ml!lll!ir8f4l~~lll~OC~~I!:~
136 843.1 Maintenance Supervision and Eniiineerinii .-
137 843.2 Maintenance of Strctures and Imorovements --
138 843.3 Maintenance of Gas Holders --
139 843.4 Maintenance of Punfication EQuipment -.
140 843.5 Maintenance of Liouefaction EQuiDment --
141 843.6 Maintenance of Vaoorizinii Eauipment --
142 843.7 Maintenance of Compressor Equipment --
143 843.8 Maintenance of Measurinl! and Rel!ulatinl! EauiDment --
144 843.9 Maintenance of Other Eauipment .-
145 TOTAL Maintenance IEnterTota of lines 136 th 144)--
146 TOTAL Other Storal!e Exoenses (Enter Tota of lines 134 and 145)-.
FERC FORM NO.2 (ED 12-88)Page 322
State of Idaho
Name of Respondent This R~rt Is:Date of Report Year of Report
(I) X An Originl (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Decmber 31, 200
GAS OPERATION AN MAINTEANCE EXPENSES
~Line Amount Current Year Previous Year
No.fa)(b (c)
147 C. Liquefied Natural Gas Terminalinl! and Processinl! Exoenses
148 Oneration
149 844.1 Ooeration Suoervision and En~ineerinl!--
150 84.2 LNG Proessin" Termina Labor and Exoenses --
151 84.3 Liauefaction Processin" Labor and Exoenses --
152 84.4 Liquefaction Transoorttion Labor and Exoenses --
153 844.5 Measuring and Regulating Labor and Expenses --
154 844.6 Comoressor Station Labor and Expens --
155 844.7 Communication System Expenses --
156 844.8 System Contrl and Load Disoatchinl!--
157 845.1 Fuel --
158 845.2 Power --
159 845.3 Rents --
160 845.4 Demurral!e Oiarl!es --
161 (Less) 845.5 Whaa"e Receints-Credit --
162 845.6 Process in" Liauefied or Vaporized Gas bv Others --
163 846.1 Gas Losses --
164 846.2 Other Exnenses --
165 TOTAL Ooeration (Enter Tota of lines 149 th 164)--
166 Maintenace i~~iiir~~.~.
167 847.1 Maintenance Sunervision and Enidneerinl!--
168 847.2 Maintenace of Strctures and Improvements --
169 847.3 Maintenace of LNG Processinl! Terminal EQuioment --
170 847.4 Maintenance of LNG Traporttion EQUipment --
171 847.5 Maintenance of Measurin~ and Rel!ulatinl! Eauioment --
172 847.6 Miantenance of Comnressor Station Eauioment --
173 847.7 Maintenace of Communication Equipment --
174 847.8 Maintenance of Other Equioment --
175 TOTAL Maintenance ffnterTotal of lines 167 th 174)--
176 TOTAL Liquefied Nat Gas Terminalinl! and Procsinl! Exo (Lines 165 & 175)--
177 TOTAL Natural Gas stora"e ænterTotl of lines 125, 146, and 176)174,542 178,722
178 3. TRNSMISSION EXENSES
179 Ooeration
180 850 Oneration Sunervision and Eniüneerinl!--
181 851 Systm Control and Load Dispatchin~--
182 852 Communication System Exoenses --
183 853 Comoressor Station Labor and Expenses --
184 854 Gas for Comoressor Station Fuel --
185 855 Oter Fuel and Power for Comoressor Stations --
186 856 Mains Exoenses --
187 857 Measurinl! and Reirlatnl! Station Exoenses --
188 858 Tramission and Comnression of Gas bv Others --
189 859 Oter Exoenses --
190 860 Rents --
191 TOTAL Ooeration ffnter Tota of lines 180 thrn 190)--
FERC FORM NO.2 (E 12.88)Page 323
State of Idaho
Name of Respondent This Roort Is:Date of Report Yea of Report
(I) X An Original (Mo, Da Yr)
Avista Corp.(2)D A Resubmission April 18, 2008 Decmber 3 i, 2007
GAS OPERA nON AND MAINTENANCE EXPENSES
~Line Amount Cunt Yea Previous Year
No.raj b (c
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenance Suoervision and Enl!ineerinl!--
194 862 Maintenance of Strctures and Imorovements --
195 863 Maintenane of Mains --
196 864 Maintenance of Comoressor Station Eauioment --
197 865 Maintenance of Measurinl! and ReI!. Station Eaioment --
198 866 Maintenance of Communication Eiioment --
199 867 Maintenance of Oter Eauioment --
200 TOTAL Maintenance (Enter Total of lines 193 th 199)--
201 TOTAL Transmission Expenses (Enter Tota of lines i 91 and 200)--
202 4. DISTRIBUTION EXENSES
203 Operation
204 870 Ooeration Suoervision and Enl!ineerinl!160,782 129,321
205 871 Distribution Load Dispatching --
206 872 Compressor Station Labor and Exoenses --
207 873 Comoressor Station Fuel and Power --
208 874 Mains and Services Exoenses 680,485 573,922
209 875 Measurinl! and Rel!latinl! Staion Expenses-General 49,04 66,847
210 876 Measurinl! and Reirlatinl! Station Exoenses- Industral 2,414 1,458
211 877 Measurinl! and Rel!ulatinl! Station Expenses-Citv Gate Check Station 39,483 35,171
212 878 Meter and House Rel!lator Exoenses 335,654 262,001
213 879 Customer Installations Exoenses 417,412 359,225
214 880 Oter Exoenses 506,972 453,729
215 881 Rents 5,346 4,618
216 TOTAL Ooeration (Enter Tota of lines 204 thr 215)2,197,593 1,886,290
217 Maintenance ~ll_ill!i~~ii~.ll.i~~'i,~1W~1~!I~~~~~!il.JII!in!~~~~l:I~iin~
218 885 Maintenance Suoervision and Enl!ineerinl!28,399 8,629
219 886 Maintenance of Strctures and Imorovements --
220 887 Maintenance of Mains 542,333 347,794
221 888 Maintenance of Comoressor Staion Eauioment --
222 889 Maintenance of Mea. and ReI!. Sta. Eouip.-Genera 93,336 54,742
223 890 Maintenance of Mea. and ReI!. Sta Eauio.-Industrial 60,547 33,418
224 891 Maintenance of Mea. and ReI!. Sta. Eauio.-Citv Gat Check Station 43,210 17,922
225 892 Maintenance of Services 243,106 220,776
226 893 Maintenance of Meters and House Reirlators 162,679 188,187
227 894 Maintenance of Other Eouioment 19,067 8,409
228 TOTAL Maintenance (Eter Total of lines 218 th 227)1,192,677 879,876
229 TOTAL Distribution Exoenses ffnter Total of lines 216 and 228)3,390,270 2,766,166
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Ooeration
232 901 Suoervision 108,514 102,606
233 902 Meter Readinl! Expenses 168,212 287,295
234 903 Customer Records and Collection Exoenses 1,298,400 1,273,653
235 904 Uncollecible Accounts 332,562 308,344
236 905 Miscellaneous Customer Accounts Exoenses 38,650 36,522
237 TOTAL Customer Accounts Exoenses (Enter Tota of lines 232 th 236)1,946,338 2,008,420
FERC FORM NO.2 (ED 12-88)Page 324
State of Idaho
Name of Respondent This R~ort Is:Date of Report Yea of Report
(1) X An Orginal (Mo, Da, Yr)
Avista Corp.(2)D A Resubmission April 18, 2008 December 31, 2007
GAS OPERATION AND MAINTENANCE EXENSES
If the amount for orevious year is not derived from oreviouslv reoortd fil!res, explain in footnotes.~Line Amount Current Year Previous Year
No.(a)b (c
238 6. CUSTOMER SERViæ AND INFORMATIONAL EXENSES
239 Ooeration
240 907 Suoervision --
241 908 Customer Assistace Exnenses 1,633,286 819,914
242 909 Informtional and Instrctional Expenses 927 916
243 910 Miscellaneous Customer Service and Informtional Exoenses 23,816 21,470
244 TOTAL Customer Service and Infonnation Expenses (Lines 240 th 243)1,658,030 842,300
245 7. SALES EXPENSES
246 Operation
247 911 SUDervision --
248 912 Demonstrtinii and Sellng Expenses 156,639 157,279
249 913 Advertisinii Expenses 51,290 51,089
250 916 Miscellaneous Sales Exnenses 5 -
251 TOTAL Sales Exoenses (Enter Tota of lines 247 thru 250)207,934 208,368
252 8. ADMINISTRTIVE AN GENEAL EXENSES
253 Ooeration
254 920 Administrative and General Salaries 1,556,771 1,400,472
255 921 Offce Sunnlies and Exnenses 283,821 327,329
256 (Less) (922) Administrtive Expenses Tranferred-Cr.(5,817 (3,670)
257 923 Outside Service Emoloved 933,491 796,494
258 924 Property Insurace 75,649 79,520
259 925 Iniuries and Damaiies 168,023 210,509
260 926 Emolovee Pensions and Benefits 43,139 45,043
261 927 Frachise Reauirements --
262 928 Rel!larorv Commission Expenses 314,531 280,634
263 I (Less) (929) Dunlicate Char"es-Cr.--
264 930.1 General Advertisinii EXDenses --
265 930.2 Miscellaneous General Expenses 247,280 249,726
266 931 Rents 56,678 86,305
267 TOTAL Ooeraion (Enter Tota of lines 254 th 266)..566 3,472,361
268 Maintenance ';¡~i_i(l
269 935 Maintenance of General Plant I 523,657 I 408,5031
270 TOTAL Administrtive and General Exp (Tota of lines 267 and 269)I 4,197,223 I 3,880,865 I
271 TOTAL Gas O. and M. Exo (Lines 97,177,201,229,237,244,25 i ,and 270)I 101,907,124 I 90,412,001
NUMBER OF GAS DEPARTMNT EMPLOYEE
i. The data on number of employees should be reportd constrcton 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 afer Octo-deparent from joint function of combination utilties
ber 31.may be detennined by estimate, on the basis of employee
2. If the respondent's payroll for the reporting period equivalents. Show the esimated number of equivalent
includes any special constrtion personnel, include such employees attibuted to the gas deparment from joint
emolovees on line 3, and show the number of such soecial functions.
1.Pavroll Period Ended (Date)December 3 i, 2007
2. Total Reiiular Full-Time Emolovees 1 261 23
3. Total Par-Time and Temnora Employees allocation of General Emnlovee I 51 2
4.Total Emolovees I 311 25
Name of Respondent This Rei8rt Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Dec. 31, 2007
DISTRIBUTION MAINS
Show Particulars Called for Concerning Distribution Mains
Total Length in I Taken up or Total Length
,...ne 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)(e)(d)(e)(f
1 Steel Wrapped Less than 2"1,652,640 258,720 1,911,360
2 Steel Wrapped 2"to 4"601,920 52,800 654,720
3 Steel Wrapped 4"to 8"332,640 31,680 364,320
4 Steel Wrapped 8" to 12"5,280 5,280
5 Steel Wrapped Over 12"0 0
6
7
8 Plastic Less than 2"4,334,880 797,280 5,132,160
9 Plastic 2"to 4"1,166,880 174,240 1 ,341,120
10 Plastic 4"to 8"279,840 58,080 337,920
11 Plastic 8" to 12"0 0
12 Plastic Over 12"0 0
13
14
15
16
17
18
19
20
21
22
23 TOTALS 8,374,080 1,372,800 0 9,746,880
State of Idaho
FERC FORM NO.2 Page 514-A
Name of Respondent This Report Is:Date of Report Year of Report
(1)~ An Original (Mo,Da, Yr)
Avista Corp.(2)0 A Resubmission 4/18/2008 12131/2007
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the resDondent at the close of the yi
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)(e)(d)(e)(f (a)
1 Steel Wrapped l' or Less 13,179 829 12,350 Not
2 Steel Wrapped 1" thru 2"264 90 174 Available
3 Steel Wrapped 2" thru 4"14 10 4
4 Steel Wrapped 4" thru 8"0 0
5 Steel Wrapped Over 8"0 0
6
7
8 Plastic l' or Less 66,045 10,004 56,041
9 Plastic 1" thru 2"417 223 194
10 Plastic 2" thru 4"22 17 5
11 Plastic 4" thru 8"1 1 0
12 Plastic Over 8"0 0
13
14
15
16
17 TOTALS 79,942 0 11,174 68,768
State of Idaho
FERC FORM NO.2 Page 514-8
Nam of Respondent Th iKrt Is:Date of Report Year of Report
(1) X An Orgi (Mo, Da, Yr)
A vista Corp.(2)0 A Reubmision Apr 18, 208 De. 31, 2007
CUSTOMER'S METERS
Owned
Line Siz Typ Mak Capacity Beginng Added Retied Owned
No.of Year Durg Year Durg Year End of Year
(a)(b)(c)(d)(e)(j (1l)(h)
1 Detaed inormation not available.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 TOTAL 70,009 2,057 72,066
State of Idao
FERC FORM NO.2 Page 514-C
Name of Respondent This Report Is:Date of Report Year of Report
(8 An Original (Mo, Da, Yr)
Avista Corporation 0 A Resubmission April 18, 2008 Dec. 31, 2007
GAS ACCOUNT - NATURAL GAS
1 The purpose of this schedule is to account for the quantity or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilties or intrastate facilities, but not through any
2 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 quantities that were not destined for interstate market or that were
3 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 quantities of gas
4 Indicated in a footnote the quantities of bundled sales that are stored by the reporting pipeiine, during the reporting year and
and transportation gas and specity 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
5 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
6 Also indicate by footnote the quantities of gas not subject quantities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the company's total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01,14.02, etc.
pipeline (2) the quantities the reporting pipeline
transported or sold through its local distribution facilties
01 NAME OF SYSTEM
Line
No.Item Amount of Dth (1 )
(a)(c)
2 GAS RECEIVED
3 Gas Purchases (Accounts 800-805)11,158,654
4 Gas of Others Received for Gatherinq (Account 489.1)
5 Gas of Others Received for Transmission (489.2)
6 Gas of Others Received for Distribution (Account 489.3)4,583,315
7 Gas of Others Received for Contract Storaqe (Account 489.4)
8 Exchanged Gas Received from Others (Account 806)
9 Gas Received as Imbalances (Account 806)
10 Receipts pf Respondent's Gas Transported by Others (Account 858)
11 Other Gas Withdrawn from Storage (Explain)
12 Gas Received from Shippers as compressor Station Fuel
13 Gas Received from Shippers as Lost and Unaccounted for
14 Other Receipts (Specify):
15 Total Receipts (Total lines 3 thru 14.?)15,741,969
16 GAt) DELIVERED
17 Gas Sales (Accounts 480 - 484)7,185,482
18 Deliveries of Gas Gathered for Others (Account 489.1 )
19 Deliveries of Gas Transported for Others (Account 489.2)
20 Deliveries of Gas Distributed for Others (Account 489.3)4,583,315
21 Deliveries of Contract Storaqe Gas (Account 489.4)
22 Exchanqe Gas Delivered to Others (Account 806)
23 Gas Delivered as Imbalances (Account 806)
24 Deliveries of Gas to Others for Transportation (Account 858)
25 Other Gas Delivered to Storaqe (Explain)
26 Gas Used for Compressor Station Fuel
27 Other Deliveries (Specify): Sales for Resale 4,448,742
28 Total Deliveries (Total lines 17 thru 27.?)16,217,539
29 GAt);1 II 11\. ii:u FOR
30 Production System Losses
31 Gathering System Losses
32 Transmission System Losses
33 Distribution System Losses (475,570)
34 Storaqe System Losses
35 Other Losses (Specify)
36 Total Unaccounted For (Total lines 30 thru 35)(475,570)
37 Total Deliveries & Unaccounted For (Totallines 28 thru 36)15,741,969
State of Idaho
FERC FORM NO.2 (REV 04-04)Page 520
This Page Intentionally Left Blank
OREGON
tate 0 regon
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
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 pnmary accunts at the end of the year, include
Account 106, Completed Construcion Not Classifed-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 yeats unclassified
indicate the negative effect of such accounts.retirements. Attch 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).
Balance at
Line Account Beginning of Year Additions
No.(a)b c
1 INTANGIBLE PLANT
2 301 Organization 0
3 302 Franchises and Consents 0
4 303 Miscellaneous Intanaible Plant 48,799 127,870
5 TOTAL Intanaible Plant (Enter Total of lines 2 thru 4)48,799 127,870
6 PRODUCTION PLANT
7 Manufactured Gas Production Plant
8 304 Land and Land Riahts 7,628
9 305 Structures and Imorovements 0
10 30 Boiler Plant Eauioment 0
11 307 Oter Power Eauioment 0
12 308 Coke Ovens 0
13 309 Proucer gas eQuipment 0
14 310 Water Gas Generating EQuioment 0
15 311 liQuefied Petroleum Gas Eauioment 60,402 0
312 Oil Gas Generatina Eauioment 0
17 313 Generatina Eauioment-oher Processes 0
18 314 Col, Coke, and ash handlina eauioment 0
19 315 Catalytic Crackina Eauioment 0
20 316 Other reforming eauioment 0
21 317 Purification eauipment 0 .
22 318 Residual refinina eauipment 0
23 319 Gas mixina eauioment 0
24 320 cnher Eauioment 0
25
26 TOTAL Manuafactured Gas Prouction Plant (Enter Total of lines 8 thru 24)68,030 0
27 PRODUCTS EXRACTION PLAT
28 340 Land and Land Riahts 0
29 341 Structures and Imorovements 0
30 342 Exraction and Refinina Eauioment 0
31 343 Pipe Lines 0
32 344 Exracted Products Storage EQuipment 0
33 345 Compressor EQuipment 0
S to
FERC FORM NO.2 (ED. 12-96)Page 204
State of Ore on
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.1 A Resubmission Dec. 31, 2007
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 Accunt 101 and 106 wil 7. For Accunt 399, state the nature and use of plant included in this
avoid serious omissions of respondents 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 utilit 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 properl 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 fied with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filng.
depreciation, acquisition adjustments, etc.,
Retirements Transfers Balance at End of Year Line
d f )No.
1
2
3
4
5
6
7
7,628 8
a 9
a 10
a 11
a 12
a 13
a 14
60,401 a 15
a 16
a 17
a 18.
a 19
a 20
a 21
a 22
a 23
a 24
25
a 26
27
a 28
a 29
a 30
a 31
a 32
a 33
FERC FORM NO.2 (ED. 12-96)Page 205
tate 0 reQon
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
34 346 Gas Measunng and Regulating EQuipment 0
35 347 Other EQuipment 0
36 TOTAL Products Exraction Plant (Enter Total of lines 28 thru 35)0 0
37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)0 0 I
38 Manufactured Gas Production Plant (Submit Supplementary Statement)68,030 0 I
39 TOTAL Production Plant (Enter Total of lines 37 and 38)68,030 0
40 NATURAL GAS STORAGE AND PROCESSING PLANT
41 Underground Storage Plant
42 350.1 Land 0
43 350.2 Rights-of-Wav 0
44 351 Structures and Improvements 0
45 352 Wells 0
46 352.1 Storage Leaseholds and Rights 0
47 352.2 Reservoirs 0
48 352.3 Non-recoverable Natural Gas 0
49 353 Lines 0
50 354 Compressor Station Equipment 0
51 355 Measunng and Regulating Equipment 0
52 356 Purification Equipment 0
53 357 Other Equipment 0
54 TOTAL Unden:iround Storage Plant (Enter Total of lines 42 thru 53)0 0
55 Other Storage Plant
56 360 Land and Land Rights 0
57 361 Structures and Improvements 0
58 362 Gas Holders 0
59 363 Purification Equipment 0
60 363.1 Liquefaction Equipment 0
61 363.2 Vaporizing Equipment 0
62 363.3 Compressor Equipment 0
63 363.4 Measuring and Regulating EQuipment 0
64 363.5 Other EQuipment 0
65 TOTAL Other Storage Plant (Enter Total of lines 56 thru 64)0 0
66 Base Load Liquefied Natural Gas Terminaling and Processing Plant
67 364.1 Land and Land Rights 0
68 364.2 Structures and Improvements 0
69 364.3 LNG Processing Terminal EQuipment 0
70 364.4 LNG Transporation EQuipment 0
71 364.5 Measuring and Regulating EQuipment 0
72 364.6 Compressor Station Equipment 0
73 364.7 Communications Equipment 0
74 364.8 Other Equipment 0
75 TOTAL Base Load Liq Nat' Gas, Terminal and Processing Plant (lines 67-74)0 0
76 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 54,65 and 75)0 0
77 TRSMISSION PLAT
78 365.1 Land and Land Rights 0
79 365.2 Rights-of-Wav 0
80 36 Structures and Improvements 0
S fO
FERC FORM NO.2 (ED. 12-96)Page 206
State of Ore on
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.( i A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
d e f No.
0 34
0 35
0 0 0 0 36
0 0 0 0 37
60,401 0 0 7,628 38
60,401 0 0 7,628 39
40
41
0 42
0 43
0 44
0 45
0 46
0 47
0 48
0 49
0 50
0 51
0 52
0 53
0 0 54
55
0 56
0 57
0 58
0 59
0 60
0 61
0 62
0 63
0 64
0 0 0 0 65
66
0 67
0 68
0 69
0 70
0 71
0 72
0 73
0 74
0 75
0 76
77
0 0 78
0 0 79
0 0 80
FERC FORM NO.2 (ED. 12-96)Page 207
State 0 reaon
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)lb)(c)
81 367 Mains 0 0
82 368 Compressor Station EQuipment 0
83 369 Measurina and Reaulatina EQuipment 0
84 370 Communications EQuipment 0
85 371 Other Eauipment 0
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0 0
87 DISTRIBUTION PLANT
88 374 Land and Land Riahts 17,965 0
89 375 Structures and Improvements 203,753 25,976
90 376 Mains 87,037,949 17,916,895
91 377 Compressor Station EQuipment 0
92 378 Measurina and ReaulatinQ Eauioment-General 1,371,191 210,141
93 379 Measuring and Reaulatina Eauioment-Citv Gate 753,04 373,756
94 380 Services 52,571,722 2,558,34
95 381 Meters 26,798,952 2,514,44
96 382 Meter Installations 0
97 383 House Reaulators 0
98 384 House ReQulator Installations 0
99 385 Industrial Measurina and Reaulatina Station Eauioment 798,279 36,111
100 386 Other Propert on Customers' Premises 0
101 387 Other EQuipment 539
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)169,553,394 23,635,663
103 GENERA PLA
104 389 Land and Land Riahts 260,131
105 390 Structures and Improvements 1,775,232 22,214
106 391 Ofice FurnKure and EQuipment 9,685 0
107 392 Transoortation Eauioment 1,640,074 5,656
108 393 Stores Eauioment 55,173
109 394 Tools, Shop, and Garage Equipment 841,190 181,671
110 395 Laboratory EQuipment 34,390
111 396 Power Operated Equipment 43,834 0
112 397 Communication Equipment 463,232 14,099
113 398 Miscellaneous EQuipment 0
114 Subtotal (Enter Totals of lines 104 thru 113)5,431,939 223,641
115 399 Other Tanaible Propert 0
116 TOTAL General Plant (Enter Totals of lines 114 and 115)5,431,939 223,641
117 TOTAL (Accounts 101 and 106)175,102,161 23,987,174
118 Gas Plant Purchase (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)175,102,161 I 23,987,174
to
FERC FORM NO.2 (ED. 12-96)Page 208
ate 0 regon
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Une
(d)(e)en (a)No.
0 0 81
0 82
0 0 0 83
0 0 84
0 85
0 0 0 0 86
87
0 17,965 88
0 229,729 89
96,241 0 104,858,603 90
0 91
18,366 0 1,562,966 92
0 1,126,800 93
318,305 54,811,762 94
441,699 0 28,871,693 95
0 96
0 97
0 98
793 833,597 99
0 100
539 101
875,404 0 0 192,313,653 102
103
0 260,131 104
2,901 1,794,545 105
9,685 0 106
87,189 1,558,541 107
593 54,580 108
85,221 937,639 109
343,390 110
43,834 111
0 477,331 112
0 113
185,588 0 0 5,469,991 114
0 115
185,588 0 0 5,469,991 116
1,121,394 0 0 197,967,942 117
0 118
0 119
0 120
1,121,394 0 0 197,967,942 121
St to
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
¡g An Original (Mo, Da, Yr)
Avista Corporation o A Resubmission April 18, 2008 Dec. 31, 2007
GAS STORED (ACCOUNT 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, AND 164.3)
1 If durring the year adjustments were made to the stored gas inventory 3 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
ina Description 117.1)117.2)(Account 117.3)117.4)(Account 164.1)(Account 164.2 (Account 164.3)Total
No.(a)(b)(c)(d)(e)(I)(g)(h)(i)
1 Balance at Beginning of Year 570,439 545,714 1.116.153
2 Gas Delivered to Storage 2,152,196 0 2,152,196
3 Gas Withdrawn from Storage 873,471 545,714 1,419,185
4 Other Debits and Credits (32,513)0 (32,513)
5 Balance at End of Year 1,816,651 0 1,816,651
6 Dth 412,46 0 412,465
7 Amount Per Dekatherm $4.40 $0.000 $4.4044
8 Storage is reported using the inventory method.
State of Oregon
FERC FORM NO.2 (REV 0404)Page 220
Name of Respondent This R,.0rt Is:
(1) l2 An Onginal
Date of Report
(Mo, Da, Yr)
State of Oreoon
Year of Report
Avista Corporation (2) 0 A Resubmission April 18,2008 Dec. 31, 2007
GAS OPERATING REVENUES (Account 400)
1. Report below natural gas operating revenues for each for each group of meters added. The average number of
prescribed account, and manufactured gas revenues in tot~ customers means the ave~age of twelve figures at the close
2. Natural gas means eiter natural gas unmixed or any of each month.
mixture of natural and manufactured gas. 4. Report Quantities of natural gas sold in Met (14.73 psia
3. Report number of customers, columns (f) and (g), on at 60 degrees F). If bilings are on a therm basis, give the Btu con-
the basis of meter, in addition to the number of flat rate actent of the gas sold and the sales converted to Met.
counts; except that where separate meter readings c 5." increases or decreases from previous year (col-
added for biling 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
Previous Year
(c)(a)
1 GAS SERVICE REVENUES
2 T480) Residential Sales
3 (481) Commercial and IndustrialSales
4 Small (or Comm.) (See Instr. 6)
5 Lar e (or Ind.) (See Instr. 6)
6 482 Other Sales to Public Authorities
7 (484 Interdeoartmental Sales
8 TOTAL Sales to Ultimate Consumers
9 T483) Sales for Resale
1 ° TOTAL Nat. Gas Service Revenues
11 Revenues from Manufactured Gas
12 TOTAL Gas Service Revenues13 01 H~H... _, .r.IINu .-
14 485 IntracomoanvTransfers
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. ovOthers
20 492 Incidental Gasoline and Oil Sales
21 493 Rent from Gas Prooert
22 494 Interdeoartmental Rents
23 495 Other Gas Revenues
24 1 TAL Other Ooerating Revenues
25 T TAL Gas Ooeratina Revenues
26 Less (496) Provision for Rate Refunds
27 TC TAL Gas Operating Revenues Net of
Provision for Refunds
28 Dis. Type Sales by States (Incl. Main Line
Sales to Resid. and Comm. Custrs.)
29 Main Line Industrial Sales (Incl. Main
Line Sales to Pub. Authonties)
30 Sales for Resale
31 Other Sales to Pub. Auth. (Local Dist. Only)
32 Interde artmental Sales
33 TOTAL Same as Line 10, Columns (b and (d))
Amount for Year
(b)
77,807,555 I 74.144,635
46,799,447 42,803,235
2,059,555 5,057,282
22,179 23,605
126.688,736 (1 122,028,757
51,581,986 43,984,846
178,270,722 166,013,603
178,270,722 166,013,603
~"'0;
85,981
2,586,079 (1)
97,950
2,549,555
15,060
964,574
3,651,6941
181,922,416
181,922,416
124,607,002
2,059,555
51,581,986
22,179
178,270,722
15,060
981,554
3.644,119
169,657,722
:':; ".:;,. ~."" '.
''-::':;..'''::¡I,::;'''; ;..;." ;' ."'. ,. ,.. '1 ." .~ .., ,:" ::"
FERC FORM NO.2 (ED. 12-86)Page 300
Avista Corporation
This ~ort Is:
(1) l! An Onginal
(2) 0 A Resubmission
Date of Report
(Mo, Da, Yr)
State of Ore on
Year of ReportName of Respondent
April 18,2008 Dec. 31, 2007
GAS OPERATING REVENUES (Account 400) (Continued)
reported figures, explain any inconsistencies in a foot-
note.
6. Commercial and Industrial Sales, Account4B1, 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 Mcl per year or approximately BOO Mcf
per day of normal requirements. (See Account 4B1 of the
Uniform System of Accounts. Explain basis of classifcation
in a footnote.)
7. See page 10B, Importnt Changes During Year,
lor 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
Number for Year Previous Year No.
(i
Quantity for Year
d
17,590
86,729,717
69,405,847
156,135,564
1
81,447 2
, ~:,~ ':l'
.;o.o.t;. ,3
10,860 4
48 5
6
15 15 7
94,030 92,370 8
9
94,030 92,370 10
11
12
34,066,278
1,900,849
NOTES
(1) Includes $275,540 unbiled revenues.
(2) Includes 55,B02 therms relating to unbiled revenues.
FERC FORM NO.2 (ED. 12-86)Page 301
Stale of Oregon
Name of Respondent This R~rt Is:Date of Report Yea of Report
(l) X An Orgina (Mo. Do Yr)
Avista Corp.(2)0 A Resubmission Apnl 18, 2008 December 3 t, 2007
GAS OPERTION AND MAINNANCE EXPENSES
If the amount for orevious year is not denved from oreviouslv reoort fiirres, exolain in footnotes.
Amount for Amount for
Line Amount Cuent Yea Previous Year
No.(a)
I 1. PRODUCTION EXPSES
2 A. Manufactured Gas Production --
3 Manufacturd Gas Production (Submit Supplemental Stament)
4 B. Natural Gas Production
5 B i. Natural Gas Producton and Gatenn2
6 Ooeration --
7 750 Operation Supervision and En2ineerin2 --
8 751 Producton Maps and Records -.
9 752 Gas Wells Exoenses --
to 753 Field Lines Exoenses --
II 754 Field Compressor Station Expenses --
12 755 Field Comoressor Station Fuel and Power --
13 756 Field Measurin2 and Reirlatin2 Station Expenses .-
14 757 Purification Expenses --
15 758 Gas Well Rovalties --
16 759 Oter Expenses --
17 760 Rents --
18 TOTAL Ooeration (Enter Tota of lines 7 th 17).-
19 Maintenance 1I¡~I~~¡i~I~¡!~llmli~~I~¡!~;!¡lil~i~_iilll~ml.~I~'.!l.~II~llil.~!~~!~I!I~~.
20 761 Maintence Supervision and Enl!ineerinl!--
21 762 Maintenace of Strctre and Improvements --
22 763 Maintenance ofProducin2 Gas Wells --
23 764 Maintenance of Field Lines -.
24 765 Maintenance of Field Compressor Station Equipment --
25 766 Maintenance of Field Mea. and Reg. Sta EQuioment .-
26 767 Maintenance of Purification EQuioment --
27 768 Maintenance of Drilin2 and Cleanin2 Eiiipment .-
28 769 Maintenance of Oter EQuioment --
29 TOTAL Maintenance (Enter Tota of lines 20 tJ 28).-
30 TOTAL Natural Gas Production and Gathenng (Total of lines i 8 and 29)--
31 B2. Proucts Extrcton
32 Operation
33 770 Operation Supervision and Enl!ineerinl!--
34 771 Ooeration Labor --
35 772 Gas Shrinka2e --
36 773 Fuel --
37 774 Power --
38 775 Materials --
39 776 Ooeraion Suoolies and Exoenses --
40 777 Gas Procssed by Others --
41 778 Royalties on Products Extrcted -.
42 779 Marketin2 Exoenses --
43 780 Product Purchased for Resale --
44 781 Variation in Products Inventorv --
45 (Lss) 782 Extrcted Prouct Used by the Utilty-Creit --
46 783 Rents --
47 TOTAL Ooeration (Enter Tota of Lines 33 th 46)--
FERC FORM NO.2 (ED 12-88)Page 320
Slale of Oregon
Name of Respondent This Roort Is:Date of Report Yea of Report
(1) X An Original (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 December 3 i, 2007
GAS OPERATION AN MAINTEANCE EXENSES
~Line Amount Current Year Previous Year
No.(a)(b (c
B2. Prouct Extraction (Continued)
48 Maintenance
49 784 Maintenance Sunervision and Enl!ineerinl!--
50 785 Maintenance of Strcturs and Improvements --
51 786 Maintenace of Extrction and Refininl! Eoinment --
52 787 Maintenace of Pioe Lines --
53 788 Maintenance of Extrcted Products Storal!e EQuioment --
54 789 Maintenance of Comoressor Eauioment --
55 790 Maintenance of Gas Measurinl! and ReI!. Eauioment --
56 791 Maintenance of Oter EQuioment --
57 TOTAL Maintenance (Enter Total of lines 49 th 56)--
58 TOTAL Proucts Extrcton (Enter Tota of lines 47 and 57)--
59 C. Exnloraion and Development
60 Ooeration
61 795 Delav Rentals --
62 796 Nonoroductive Well Driling --
63 797 Abandoned Leaes --
64 798 Other Exnloration --
65 TOTAL Exoloration and Develooment (Enter Total of lines 61 th 64).--
D. Oter Gas Supplv Exoenses
660oeration
67 800 Natural Gas Well Head Purchases --
68 800. i Natura Gas Well Head Purchases, Intracomnanv Transfers --
69 801 Natura Gas Field Line Purchases --
70 802 Natural Gas Gasoline Plant Outlet Prchases --
71 803 Natural Gas Transmission Line Purchases --
72 804 Natural Gas Citv Gate Purchaes 137,490,09 126,805,403
73 804. i LiQuefied Natural Gas Purchases --
74 805 Other Gas Puhaes 167,566 727,550
75 (Lss) 805. i Purchased Gas Cost Adiustments A A" U."6.222.232
76 l~I~~~~'I~~IIII: ~~,..~ir~!
77 TOTAL Purchased Gas (Enter Tota of lines 67 to 76)I 142,091,122 133,755,185
78 806 Exchanl!e Gas I --
79 Purchad Gas Exnenses ;,~lil~ilill . w...~ ,. .
80 807.1 Well Exoenses-Purchad Gas --
81 807.2 Oneration of Puchased Gas Meaurinl! Stations --
82 807.3 Maintenace of Purchased Gas Measurnl! Stations --
83 807.4 Puchased Gas Calculations Exoenses --
84 807.5 Other Purchased Gas Expenses --
85 TOTAL Purchased Gas Exoenses (Enter Tota of lines 80 th 84)--
86 808.1 Gas Withdrawn from Storal!e-Debit 1,200,301 548,744
87 (Lss) 808.2 Gas Delivered to Storage-Credit (2, i 22, i 29)(542,630
88 809. i Withdrawals of Liquefied Natural Gas for Processinl!-Debit --
891 (Less) 809.2 Deliveries of Natural Gas for Processinl!-Credit --
90 Gas Used in Utiltv Ooerations-Credit
91 810 Gas Used for Comoressor Station Fuel-Credit --
92 811 Gas Used for Products Extrtion-Credit --
93 812 Gas used for Other Utilty Ooerations-Credit --
94 TOTAL Gas Used in Utilty Ooerations-Credit (Total of lines 91 th 93)--
95 813 Other Gas Sunnlv Exnenses 521,756 417,736
96 TOTAL Other Gas Sunnlv Exo (Total of lines 77,78,85,86 th 89,94,95)141,691,049 134,179,035
97 TOTAL Production Exnenses (Enter Tota of lines 3,30,58,65, and 96)141,691,049 134,179,035
FERC FORM NO.2 (ED 12-88)Page 321
State of Oregon
Name of Respondent This R~rt Is:Date of Report Yea of Report
(1) X An Original (Mo. Va Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Decber 31, 200
GAS OPERATION AND MAlNlEANCE EXPENSES
Amount for Amount for
Line Amount Currnt Year Previous Year
No.(aJ (b)(c
98 2. NATURAL GAS STORAGE, TEINAUNG AND
PROCESSING EXPENSES
99 A. Underii:round Storage Expenses
100 Operation
101 814 ODeration Supervision and Engineering --
102 815 MaDS and Records --
103 816 Wells EXDenses --
104 817 Lines Exoense --
105 818 ComDressor Station EXDenses --
106 819 Compressor Station Fuel and Power --
107 820 Measuring and Reirlating Station Exoenses --
108 821 Purification Expenses --
109 822 Exploration and Development --
110 823 Gas Losses --
ILL 824 Other Expenses --
112 825 Storage Well Rovalties --
113 826 Rents --
114 TOTAL Operation (Enter Tota of lines 101 th 113)--
115 Maintenance ~ilr~~~IB~~J~~!~~r.~tJIII!lil~i!~lll~~~~II~L.I~4!~:
116 830 Maintenace Supervision and Engineering --
117 831 Maintenace of Strctures and ImDrovements --
118 832 Maintenance of Reservoirs and Wells --
119 833 Maintenance of Lines --
120 834 Maintenace of ComDressor Station EouiDment --
121 835 Maintenance of Measuring and Reirlating Station EauiDment --
122 836 Maintenace of Purification Eauipment --
123 837 Maintenance of Oter EouiDment --
124 TOTAL Maintenance ænterTotal of lines 116 th 123)--
125 TOTAL Underground Storage Expenses (Total of lines 114 and 124)--
126 B. Other Storage Exoenses
127 Operation
128 840 ODeration Suoervision 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 Tota of lines 128 th 133)--
135 Maintenance ~~II~!~I!~IIIP~li.t1~!i~.~!i~~~~I~~:
136 843.1 Maintenace Suoervision and Engineering --
137 843.2 Maintenace of Strctues and Improvements --
138 843.3 Maintenace of Gas Holders --
139 843.4 Maintenance of Purification EauiDment --
140 843.5 Maintenace of Liauefaction Eauipment --
141 843.6 Maintenace of VaDorizing EauiDment --
142 843.7 Maintenace of ComDressor EauiDment --
143 843.8 Maintenance of Measuring and Rel!latig EQuipment --
144 843.9 Maintenace of Other EauiDment --
145 TOTAL Maintenance (Eter Total of lines 136 th 144)--
146 TOTAL Other Storae Exoenses CEnter Tota of lines 134 and 145)-.
FERC FORM NO.2 (ED 12.88)Page 322
State of Oregon
Name of Respondent This RiR0rt Is:Date of Report Year of Report
(1) X An Orginal (Mo, Da, Yr)
Avista Corp.(2)0 A Resubmission April 18, 2008 Decber 31, 200
GAS OPERA nON AN MAINTEANCE EXPENSES
~Line Amount Cunt Year Previous Year
No.(a)(b) (e)
147 C. Liauefied Natural Gas Terminalinl! and Proessinl! Exnenses
148 Operation
149 844.1 Ooeration Suoervision and Enl!ineerinl!--
150 844.2 LNG Proessinl! Terminal Labor and Exnenses --
151 84.3 Liquefaction Procssinl! Labor and Expenses --
152 844.4 Liauefaction TransDOrttion Labor and Exoenses -.
153 844.5 Measuring and Regulating Labor and Expenss .-
154 84.6 Compressor Station Labor and Exoenses --
155 844.7 Communication System Expenses --
156 844.8 Svstem Contrl and Load Disoatchinl!--
157 845.1 Fuel -.
158 845.2 Power --
159 845.3 Rents --
160 845.4 Demurrl!e Charl!es --
161 (Lss) 845.5 Whaial!e Receiots-Credit --
162 845.6 Processinl! Liauefied or Vaporized Gas by Others .-
163 846.1 Gas Losses .-
164 84.2 Other Exoenses -.
165 TOTAL Operation (Enter Total of lines 149 thr 164)--
166 Maintenance
167 847.1 Maintenance Sunervision and Enl!ineerinl!--
168 847.2 Maintenance of Strctus and Improvements -.
169 847.3 Maintenance of LNG Processinl! Termina Eouioment --
170 847.4 Maintenace of LNG Traporttion Eauipment -.
171 847.5 Maintenace of Measurinl! and Rel!ulatinl! Eaioment -.
172 847.6 Miantenace of Comoressor Station Eouipment -.
173 847.7 Maintenance of Communication Eouipment .-
174 847.8 Maintenance of Other Equipment -.
175 TOTAL Maintenance ffnterTotal of lines 167 th 174)--
176 TOTAL Liquefied Nat Gas Tenninalinl! and Processin~ Exo (Lines 165 & 175)-.
177 TOTAL Natural Gas storal!e (Enter Total of lines 125, 146, and 176)--
178 3. TRSMISSION EXPENSES
179 Operation
180 850 Operation Suoervision and Enl!ineerinl!--
181 851 System Control and Load Dispatchinl!--
182 852 Communication System Exoenses --
183 853 Compressor Station Labor and Expenses --
184 854 Gas for Compressor Station Fuel --
185 855 Oter Fuel and Power for Comoressor Stations --
186 856 Mains Exoenses --
187 857 Measuril! and Rel!latinl! Station Exoenses --
188 858 Transmission and Comoression of Gas bv Others ..
189 859 Other Expenses --
190 860 Rents --
191 TOTAL Ooeration (Enter Tota of lines 180 thr 190).-
FERC FORM NO.2 (ED 12-88)Page 323
State of Oregon
Name of Respondent This RlRrt Is:Date of Report Yea of Report
(1) X An Orgin (Mo, Da, Yr)
Avist Coip.(2)0 A Resbmision April 18, 2008 Decmber 3 i, 2007
GAS OPERTION AND MAINTENANCE EXPENSES
~Line Amount Cuent Year Previous Year
No.(a)(b) (c
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenace Suoervision and Eni!ineerinl!--
194 862 Maintenance of Strctur and Imorovements --
195 863 Maintenance of Mains --
196 864 Maintenance of Comoressor Station Eauioment --
197 865 Maintenance of Meaurinl! and ReI!. Station Eauipment --
198 866 Maintenace of Communication Eauioment --
199 867 Maintenace of Oter Eauioment --
200 TOTAL Maintenance (Eter Total of lines 193 th 199)--
201 TOTAL Trasmission Exoenses CEnter Tota of lines 191 and 2OO)--
202 4. DISTRBUTON EXENSES
203 Operation
204 870 Operation Suoervision an Enl!ineerinl!353,863 326,647
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 960,563 799,991
209 875 Meauring and Regulatinl! Staion Exoenses-General 139,650 91,708
210 876 Meaurinl! and Rel!ulatinl! Station Exoenses-Industrial 1,761 981
211 877 Measurinl! and Reimlatinl! Station Expenses-Citv Gate Check Station 3,606 1,90
212 878 Meter and House Reimlator Expenses 723,073 401,319
213 879 Customer Installations Exoenses 733,105 684,071
214 880 Oter Expenses 560,818 645,169
215 881 Rents 8,160 7,411
216 TOTAL Operation CEnter Tota of lines 204 thn 215)3,484,598 2,959,208
217 Maintenance 1~!!ilff!~OO!li~ilil~t'~ill~l~iIIIIJ~li!lilrn'1W
218 885 Maintenace Supervision and Enl!ineerinl!116,151 151,295
219 886 Maintenance of Strctures and Improvements --
220 887 Maintenance of Mains 1,028,724 874,829
221 888 Maintenance of Comoressor Station Eauioment --
222 889 Maintenance of Mea. and Reg. Sta. Eauip.-General 70,451 91,298
223 890 Maintenance of Meas. and ReI!. Sta. Eauio.-Industrial 10,574 11,045
224 891 Maintenance of Meas. and ReI!. Sta. Eauip.-Citv Gate Check Station 3,639 6,410
225 892 Maintenance of Services 371,833 319,233
226 893 Maintenance of Metrs and House Reim1ators 231,003 271,512
227 894 Maintenance of Oter Eauipment 82,991 105,901
228 TOTAL Maintenance (Enter Total of lines 218 th 227)1,915,366 1,831,524
229 TOTAL Distribution Exoenses CEnter Tota of lines 216 and 228)5,399,964 4,790,732
230 5. CUSTOMER ACCOUNT EXENSES
231 Ooeration
232 901 Supervision 145,072 139,720
233 902 Meter Readinl! Exoenses 187,545 179,078
234 903 Customer Records and Collection Exoenses 1,870,169 1,851,892
235 90 Uncollectible Accounts 444,599 419,876
236 905 Miscellaneous Customer Accounts Exoenses 51,671 49,732
237 TOTAL Customer Accunts Expenses CEnter Total of lines 232 th 236)2,699,056 2,640,299
FERC FORM NO.2 (ED 12-88)Page 324
State of Oregon
Name of Respondent This RrI0rt Is:Date of Report Year of Report
(i) X An Original (Mo, Da, Yr)
Avista Corp.(2)D A Resubmission Apnl 18,2008 December 3 i, 200
GAS OPERATION AN MAINTENANCE EXPENSES
If the amount for previous yea is not derived from previously reported fil!Ures, explain in footnotes.~Line Amount Current Year Previous Year
No.(al (b (e)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXENSES
239 Operation
240 907 Supervision --
241 908 Customer Assistace Expenses 1,957,698 982,166
242 90 Informational and Instrctional Expenses 783 703
243 910 Miscellaneous Customer Service and Inormational Expenses --
244 TOTAL Customer Service and Information Expenses (Lines 240 th 243)1,958,481 982,869
245 7. SALES EXPENSES
246 Operation
247 911 Suoervision --
248 912 Demonstrtinl! and Sellnl! Exoenses 217,933 220,717
249 913 Advertisinl! Expenses 46,997 47,450
250 916 Miscellaneous Sales Exoenses --
251 TOTAL Sales Expenses (Eter Total of lines 247 th 250)264,930 268,167
252 8. ADMINISTRATIVE AND GENAL EXENSES
253 Ooeration
254 920 Administative and General Salanes 2,225,165 1,996,967
255 921 Office Suoolies and Exoenses 531,730 578,014
256 (Less) (922) Administrtive Exoenses Transferred-Cr.--
257 923 Outside Services Emnloved 1,288,167 1,080,415
258 924 Property Insurace 104,380 107,90
259 925 Iniuries and Damal!es 214,981 354,605
260 926 Employee Pensions and Benefits 62,428 64,589
261 927 Frachise Reouirements --
262 928 Rel!ulairv Commission Exoenses 832,195 623,639
263 (Lss) (929) Duplicate Charl!es-Cr.--
264 930. i General Advertisinl! Exoenses --
265 930.2 Miscellaneous General Expenses 313,212 312,771
266 931 Rents 93,878 133,819
267 TOTAL Ooeration (Enter Tota of lines 254 th 266).1268Maintenance
269 935 Maintenace of General Plant I 594,588 I
270 TOTAL Administrtive and General Exp (fotal of lines 267 and 269)I 6,384,303 I 5,847,314 I
271 TOTAL Gas O. and M. Exn (Lines 97,177,201 ,229,237,244,25 i ,and 270)I 158,397,783 I 148,708,415 I
NUMBER OF GAS DEPARTMNT EMPLOYE
i. The data on number of employees should be reportd constrction employees in a foonote.
for the payrll period ending nearest to October 3 i, or 3. The number of employees assignable to the gas
any payroll penod ending 60 days before or afer Octo-deparent from joint function of combination utilities
ber 31.may be determined by estimat, on the basis of employee
2. If the respondent's payroll for the reporting penod equivalents.Show the estimated number of equivalent
includes any special constrction personnel, include such employees attibuted to the gas departent from joint
emolovees on line 3, and show the number of such soecial fuctons.
i. Payroll Penod Ended (Dat)December 3 i, 200
2. Total Rel!ular Full-Time Emolovees I 601 70
3. Total Par-Time and Temporar Emplovees allocation of Genera Emplovees I 41 3
4. Total Emplovees I 641 73
Name of Respondent
Avista Corp.
This R~rt Is:
(1) 12 An Original
(2) 0 A Resubmission
Date of Report
(Mo,Da, Yr)
April 18, 2008
State of OreQon
Year of Report
Dec. 31, 2007
DISTRIBUTION MAINS
ine
No.
Kind of Material
Show Particulars Called for Concerning Distribution Mains
Total Length in I Taken up or
Use Beginning of Laid During Abandoned Durin
Year, Feet Year, Feet Year, Feet(c) fd) fe)
2,740,320 5,280
844,800
770,880
15,840
o
Diameter of
Pipe, Inches
fb)
Less than 2"
2"t04"
4"to 8"
8" to 12"
Over 12"
Less than 2"
2"t04"
4"t08"
8" to 12"
Over 12"
4,968,480
776,160
63,360
o
o
Change in footage relects additions net of retirements.
21,120
58,080
264,000
47,520
10,560
385,440 21,120
Total Length
in Use End
of Year, Feet
(f
2,745,600
823,680
828,960
15,840
o
5,232,480
823,680
73,920
o
o
TOTALS 10,544,160
FERC FORM NO.2
10,179,840
Page 514-A
fa)
1 Steel Wrapped
2 Steel VV rapped
3 Steel Wrapped
4 Steel Wrapped
5 Steel Wrapped
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Plastic
Plastic
Plastic
Plastic
Plastic
State of regon
Name of Respondent This Report Is:Date of Report Year of Report
(1)12 An Original (Mo,Da, Yr)
Avista Corp.(2)0 A Resubmission 4/18/2008 12/31/2007
SERVICE PIPES GAS
Show the particulars called for concern ina the line service pi)e in possession of the respondent at the close of the year.
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)
1 Steel Wrapped l' or Less 32,045 10 32,035 Not
2 Steel Wrapped 1" thru 2"589 82 671 Available
3 Steel Wrapped 2" thru 4"21 1 20
4 Steel Wrapped 4" thru 8"0 2 2
5 Steel Wrapped Over 8"0 0
6
7
8 Plastic l' or Less 66,045 4,890 70,935
9 Plastic 1" thru 2"1,831 31 1,800
10 Plastic 2" thru 4"75 75
11 Plastic 4" thru 8"4 4
12 Plastic Over 8" 0 0
13
14
15 Number added is net of retirem¡nts
16
17 TOTALS 100,610 4,974 42 105,542
o
FERC FORM NO.2 Page 514-B
tate 0 eiwn
Name of Respondent Th Roort Is:Date of Report Yea of Re
(1) X An Orgin (Mo, Do, Yr)
A vista Corp.(2)0 A Reubmision Apri118, 2008 De. 31, 2007
CUSTOME'S METERS
Owned
Line Siz Type Mae Capacity Begining Adde Retied Owned
No.of Yea Durg Yea Durg Year End of Yea
(a)(b)(c)(d)(e)(f (Il)(h)
1 Detaed inormation not available.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 TOTAL 106,725 5,390 3,901 108,214
S fOr
FERC FORM NO.2 Page 514-C
State of Oreaon
Name of Respondent This Report Is:Date of Report Year of Report
f2 An Original (Mo, Da, Yr)
Avista Corporation D A Resubmission April 18, 2008 Dec. 31, 2007
GAS ACCOUNT - NATURAL GAS
1 The purpose of this schedule is to account for the quantity or intrastate facilities and which the reporting pipeline received
of natural gas received and delivered by the respondent.through gathering facilities or intrastate facilties, but not through any
2 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 quantities that were not destined for interstate market or that were
3 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 quantities of gas
4 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
5 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
6 Also indicate by footnote the quantities of gas not subject quantities.
to Commission regulation which did not incur FERC 8 Also indicate the volumes of pipeline production field sales that are
regulatory costs by showing (1) the local distribution included in both the company's total sales figure and the company's
volumes another jurisdictional pipeline delivered to the total transportation figure. Add additional rows as necessary to
local distribution company portion of the reporting report all data, numbered 14.01. 14.02. etc.
pipeline (2) the quantities the reporting pipeline
transported or sold through its local distribution facilities
01 NAME OF SYSTEM
Line
No.Item Amount of Dth (1 )
(a)fe)
2 GAS RECEIVED
3 Gas Purchases (Accounts 800-805)15,861,449
4 Gas of Others Received for Gatherina (Account 489.1)
5 Gas of Others Received for Transmission (489.2)
6 Gas of Others Received for Distribution (Account 489.3)3,328,576
7 Gas of Others Received for Contract Storaqe (Account 489.4)
8 Exchanoed Gas Received from Others (Account 806)
9 Gas Received as Imbalances (Account 806)
10 Receipts pf Respondent's Gas Transported by Others (Account 858\
11 Other Gas Withdrawn from Storaoe (Explain)
12 Gas Received from Shippers as compressor Station Fuel
13 Gas Received from Shippers as Lost and Unaccounted for
14 Other Receipts (Specify):
15 Total Receipts (Total lines 3 thru 14.?)19,190,025
16 GAS DELIVERED
17 Gas Sales (Accounts 480 - 484)8,535,572
18 Deliveries of Gas Gathered for Others (Account 489.1)
19 Deliveries of Gas Transported for Others (Account 489.2)
20 Deliveries of Gas Distributed for Others (Account 489.3)3,328,576
21 Deliveries of Contract Storaqe Gas (Account 489.4)
22 Exchange Gas Delivered to Others (Account 806)
23 Gas Delivered as Imbalances (Account 806)
24 Deliveries of Gas to Others for Transportation (Account 858)
25 Other Gas Delivered to Storaqe (Explain)
26 Gas Used for Compressor Station Fuel
27 Other Deliveries (Specify: Sales for Resale 7,377,528
28 Total Deliveries (Total lines 17 thru 27.?)19,241,676
29 GAS UNACCOUNTED FOR
30 Production System Losses
31 Gatherinq System Losses
32 Transmission System Losses
33 Distribution System Losses (51,651)
34 Storage System Losses
35 Other Losses (Specifv)
36 Total Unaccounted For (Total lines 30 thru 35)151,651 )
37 Total Deliveries & Unaccounted For (Total lines 28 thru 36)19,190,025
FERC FORM NO.2 (REV 04-04)Page 520
This Page Intentionally Left Blank
NOT DIRECTLY ASSIGNED
TO STATES
Not Directlv Assigned to tates
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
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 (Classifed), this distributions of prior year reported in column (b). Ukewise, if the
page and the next include Accunt 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 accunts.retirements. Attach supplemental statement showing the account
5. Classify Accunt 106 according to prescribed accounts, on an distributions of these tentative classifications in columns (c) and (d).
Balance at
Line Account Beginning of Year Additions
No.(a)b c
1 INTANGIBLE PLA
2 301 Organization .0
3 302 Franchises and Consents 0
4 303 Miscellaneous Intaniiible Plant 723,251 0
5 TOTAL Intaniiible Plant (Enter Total of lines 2 thru 4)723,251 0
6 PRODUCTION PLA
7 Manufactured Gas Production Plant
8 304 Land and Land Riahts 0
9 305 Structures and Imorovements 0
10 30 Boiler Plant Equipment 0
11 307 Other Power Equipment 0
12 308 Coke Ovens 0
13 309 Producer iias equipment 0
14 310 Water Gas Generatina Eauioment 0
15 311 Liauefied Petroleum Gas Eauioment 0
16 312 Oil Gas Generating Equipment 0
17 313 Generatinii Equipment-Other Procsss 0
18 314 Coal, Coke, and ash handlinii equipment 0
19 315 Catalvtic Crackinii Equipment 0
20 316 Other reforminii equipment 0
21 317 Purification equipment 0
22 318 Residual refinina eauioment 0
23 319 Gas mixina eauioment 0
24 320 Other Eauioment 0
25
26 TOTAL Manuafactured Gas Production Plant (Enter Total of lines 8thru 24)0 0
27 PRODUCTS EXRACTION PLAT
28 340 Lad and Land Rights 0
29 341 Structures and Improvements 0
30 342 Exraction and Refininii Equipment 0
31 343 Pipe Lines 0
32 34 Exracted Products StoraQe Eauioment 0
33 345 Compressor EQuioment 0
s
FERC FORM NO.2 (ED. 12-96)Page 204
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo,Da, Yr)
ned to States
Avista Corp.i A Resubmission Dec. 31 , 2007
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 text of Account 101 and 106 wil 7. For Account 399, state the nature and use of plant included in this
avoid serious omissions of respodent'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 utilty 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 classifcations arising from Account 102, state the propert purchased or sold, name of vendor
distribution of amounts initially recorded in Account 102. In or purchaser, and date of transaction. If proposed joumal entries
showing the clearance of Account 102, include in column (e) have been filed with the Commission as required by the Uniform
the amounts with respect to accumulated provision for System of Accounts, give date of such filng.
depreciation, acquisition adjustments, etc..
Adjustments
e
Balance at End of Year Line( No.
1
2
3
4
5
6
7
o 8
o 9
o 10
o 11
o 12
o 13
o 14
o 15
o 16
o 17
o 18
o 19
o 20
o 21
o 22
o 23
o 24
o o 26
27
o 28
o 29
o 30
o 31
o 32
o 33
FERC FORM NO.2 (ED. 12-96)Page 205
Not Directlv Assigne to tates
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101,102,103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
34 346 Gas Measunng and Regulating Equipment 0
35 347 Other Equipment 0
36 TOTAL Products Exraction Plant (Enter Total of lines 28 thru 35)0 0
37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)0 0
38 Manufactured Gas Production Plant (Submit Supplementary Statement)0
39 TOTAL Production Plant (Enter Tota of lines 37 and 38)0 0
40 NATURA GAS STORAGE AND PROCESSING PLANT
41 Underground Storage Plant
42 350.1 Land
43 350.2 Riahts-of-Wav 0
44 351 Structures and Improvements 0
45 352 Wells 0
46 352.1 Storage Leaseholds and Rights 0
47 352.2 Reservoirs 0
48 352.3 Non-recoverable Natural Gas 0
49 353 Unes 0
50 354 Compressor Station Eauipment 0
51 355 Measunng and Regulating Equipment 0
52 356 Punfication Equipment 0
53 357 Other Equipment 0
54 TOTAL Underground Storage Plant (Enter Tota of lines 42 thru 53)0 0
55 Other Storage Plant
56 360 Land and Land Rights 0
57 361 Structures and Improvements 0
58 362 Gas Holders 0
59 363 Punfication Equipment 0
60 363.1 liquefaction Equipment 0
61 363.2 Vaporizing Equipment 0
62 363.3 Compressor Equipment 0
63 363. Measunng and Regulating Eauipment 0
64 363.5 Other Eauipment 0
65 TOTAL Other Storage Plant (Enter Tota of lines 56 thru 64)0 0
66 Ba Load UQuefied Natural Gas Terminaling and Procssing Plant
67 364.1 Land and Land Rights 0
68 364.2 Structures and Improvements 0
69 364.3 LNG Prossing Terminal Equipment 0
70 364.4 LNG Transporation Equipment 0
71 364.5 Measuring and Regulating Equipment 0
72 364.6 Compressor Station Eauipment 0
73 364.7 Communications Eauipment 0
74 364.8 Other Eauipment 0
75 TOTAL Base Load Liq Nat'l Gas, Terminal and Processing Plant (lines 67-74)0 0
76 TOTAL Nat' Gas Storage and Processing Plant (Total of lines 54,65 and 75)0 0
77 TRANSMISSION PLAT
78 365.1 Land and Land Rights 0
79 365.2 Rights-of-Wav 0
80 366 Structures and Improvements 0
d S
FERC FORM NO.2 (ED. 12-96)Page 206
Name of Respondent This report is:
( Xl An Original
Date of Report
(Mo, Da, Yr)
Not Directl Assi ned to States
Year Ending
Avista Corp.( ) A Resubmission Dec. 31, 2007
Retirements Adjustments Transfers Balance at End of Year Line
d e No.
34
35
0 0 0 36
0 0 0 37
38
39
40
41
0 42
0 43
0 44
0 45
0 46
0 47
0 48
0 49
0 50
0 51
0 52
0 53
0 0 0 0 54
55
0 56
0 57
0 58
0 59
0 60
0 61
0 62
0 63
0 64
0 0 0 0 65
66
0 67
0 68
0 69
0 70
0 71
0 72
0 73
0 74
0 0 0 0 75
0 0 0 0 76
77
0 78
0 79
0 80
FERC FORM NO.2 (ED. 12-96)Page 207
0 ir ¡iy ssigne 0 aes
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.() A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
81 367 Mains 0
82 368 Compressor Station Equipment 0
83 369 MeasurinQ and ReQulatinQ Equipment 0
84 370 Communications Equipment 0
85 371 Other Equipment 0
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)0 0
87 DISTRIBUTION PLA
88 374 Land and Land Rights 0
89 375 Structures and Improvements 0
90 376 Mains 0
91 377 Compressor Station Equipment 0
92 378 MeasurinQ and ReQulatinQ Equipment-Genera 0
93 379 MeasurinQ and ReQulatinQ Equipment-Cit Gate 0
94 380 Servces 0
95 381 Meters 0
96 382 Meter Installations 0
97 383 House Regulators 0
98 384 House ReQulator Installations 0
99 385 Industrial MeasurinQ and ReQulatinQ Station Equipment 0
100 386 Other Prooert on Customers' Premises 0
101 386 Other Equipment 0
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)0 0
103 GENERA PLA
104 389 Land and Land RiQhts 0
105 390 Structures and Improvements 133,370 0
106 391 Office Furniture and Equipment 378,871
107 392 Transportation Equipment 424,676 0
108 393 Stores Equipment 0
109 394 Tools, Shop, and Garaae Equipment 725,260 119,617
110 395 Laboratory Equipment 331,822
111 396 Power Operated Equipment 368,144
112 397 Communication Equipment 896,948 57,862
113 398 Miscellaneous Equipment 31,332
114 Subtotal (Enter Totals of lines 104 thru 113)3,290,423 177,479 I
115 399 Other TanQible Prooert 0
116 TOTAL General Plant (Enter Totals of lines 114 and 115)3,290,423 177,479
117 TOTAL (Accunts 101 and 106)4,013,674 177,479
118 Gas Plant Purchased (See Instruction 8)~~119 (Less) Gas Plant Sold (See Instruction 8)
120 Experimental Gas Plant Unclasified
121 TOTAL Gas Plant in Servce (Enter Totals of lines 117 thru 120)4,013,674 177,479 I
N t D' eel A' d t St t
FERC FORM NO.2 (ED. 12-96)Page 208
Not Directlv Assiane to tates
Name of Respondent This report is:Date of Report Year Ending
( Xl An Original (Mo,Da, Yr)
Avista Corp.(1 A Resubmission Dec. 31, 2007
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Une
(d)(e)(f)(a)No.
0 81
0 82
0 83
0 84
0 85
0 0 0 0 86
87
0 88
0 89
0 90
0 91
0 92
0 93
0 94
0 95
0 96
0 97
0 98
0 99
0 100
0 101
0 0 0 0 102
103
0 104
133,370 105
378,871 106
93,147 331,529 107
0 108
4,502 840,375 109
221 331,601 110
368,144 111
4,994 949,816 112
31,332 113
102,864 0 0 3,365,038 114
0 115
102,864 0 0 3,365,038 116
102,864 0 0 4,088,289 117
0 118
0 119
0 120
102,864 0 0 4,088,289 121
d S
FERC FORM NO.2 (ED. 12-96)Page 209
This Page Intentionally Left Blank