2009Annual Report.pdf

Item 1: 00 An Initial (Ongioal)
Submission
OR 0 Resubmission No.
Form 2 Approved
OMS No. 1902-0028
(Expires 6/30/2011)
Form 3-0: Approved
OMS NO.1902-0205
(Expires 1/31/2012)
THIS FK.ING IS
A vu- 6-
5!"'NO"
:r.:J
FERC FINANCIAL REPORT
FERC FORM No.2: Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
i...NN
These reports are mandatory under the Natural Gas Act, Sections 10(a), and 16 and 18
CFR Parts 260.1 and 260.300. Failure to report may result in criminal fines, civil
penalties, and other sanctions as provided by law. The Federal Energy Regulatory
Commission does not consider these reports to be of a confidential nature.
Exact Legal Name of Respondent (Company)
Avista Corporation
Year/Period of Report
End of 2009/Q4
FERC FORM No. 2/3Q (02-04)
QUARTERLY/ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
IDENTIFICATION
01 Exact Legal Name of Respondent Year/Period of Report
Avista Corporation End of 2009/Q4
03 Previous Name and Date of Change (If name changed during year)
04 Address of Principal Offce at End of Year (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, WA 99207
05 Name of Contact Person 06 Title of Contact Person
Christy Burmeister-Smith VP and Controller
07 Address of Contact Person (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, WA 99207
08 Telephone of Contact Person, Including Area Code This Report Is:10 Date of Report
(1)I2An Original (Mo, Da, Yr)509-95-256 (2)DA Resubmission 04/1612010
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 affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all
material respects to the Uniform System of Accounts.
11 Name 12 Title
Christy Burmeister-Smith /\VP and Controller13~atl¿/f1 X-14 Date Signed/~04/1612010
'i 1~i:S,C, 1001, makes it a crime for any person knowingly and willngly to make to any Agency or Departent of the United States any
false, itious or fraudulent statements as to any matter within its jurisdicton.
FERC FORM NO. 2/3Q (02-04)Page 1
Name of Respondent This oo0rt Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/1612010 End of 2009/04
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropnate, where no information or amounts have been reported
for certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
TiUe of Schedule Reference Date Revised Remark
Line Page No.
No.(a)(b)(c)(d)
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS
1 General Informtion 101
2 Contrl Over Respondent 102 N/A
3 Corporatins. Contrlled by Respondent 103
4 Security Holders and Voting Powers 107
5 Important Changes During th Year 108
6 Comparative Balance Sheet 110-113
7 Statement of Income for the Year 114-116
8 Statement of Accmulated Comprehensive Income and Hedging Activities 117
9 Statement of Retained Earnings for the Year 118-119
10 Statements of Cash Flows 120-121
11 Notes to Financial Statement 122
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Oter Debit)
12 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortzaion, and Depletion 200-201
13 Gas Plant in Service 204-209
14 Gas Propert and Capacit Leased frm Oters 212 N/A
15 Gas Propert and Capacit Leased to Oters 213 N/A
16 Gas Plant Held for Future Use 214
17 Constrcton Work in Proress-Gas 216
18 Non-Traitonal Rate Treatmènt Afforded New Projec 217 N/A
19 General Description of Constrn Overhad Proceure 218 N/A
20 Accumulated Proision for Depreiation of Gas Utilit Plant 219
21 Gas Store 220
22 Investmnts 222-223
23 Investments in Subsidiary Companies 224-225
24 Prepayments 230
25 Exaordinary Propert Losses 230 N/A
26 Unrecovered Plant and Regulator Study Costs 230 N/A
27 Oter Regulatory Assets 232
28 Miscellaneous Deferr Debit 233
29 Accumulated Deferred Income Taxes 234-235
BALANCE SHEET SUPPORTING SCHEDULES (Liabilties and Oter Credit)
30 Capital Stock 250-251
31 Capitl Stock Subscribe, Capital Stock Liabilit for Conversion, Premium on Capitl Stock, and
Instllments Recived on Capitl Stock 252 N/A
32 Oter Paid-in Capital 253
33 Discount on Capital Stock 254 N/A
34 Capitl Stock Expense 254
35 Securites issue or Assumed and Securities Refunde or Retire During the Year 255 N/A
36 Long- Tenn Debt 256-257
37 Unamortze Debt Expense, Premium, and Discount on Long- Tenn Debt 258-259 N/A
FERC FORM NO.2 (REV 12-07)Page 2
Name of Respondent This oo0rt Is:Date of Report Year/Period of Repon
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
List of Schedules (Natural Gas Company) (continued)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported
for certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Title of Schedule Reference Date Revised Remark
Line Page No.
No.(a)(b)(c)(d)
38 Unamortized Loss and Gain on Reacquired Debt 260 N/A
39 Reconcilation of Reported Net Income wit Taxable Income for Federal Income Taxes 261
40 Taxes Accrued, Prepaid, and Charged During Year 262-263
41 Miscellaneous Currnt and Accrued Liabilties 268
42 Oter Deferrd Creit 269
43 Accmulated Deferred Income Taxes-Oter Propert 274-275
44 Accumulated Deferr Income Taxes-er 276-277
45 Oter Regulatory Liabilites 278
INCOME ACCOUNT SUPPORTING SCHEDULES
46 Monthly Quantity & Revenue Data by Rate Schedule 299 N/A
41 Gas Operating Revenues 300-301
48 Revenues frm Transporttion of Gas of Oters Through Gathering Facilties 302-303 N/A
49 Revenues from Transporttion of Gas of Oters Through Transmision Facilites 304-305 N/A
50 Revenues frm Storage Gas of Others 306-307 N/A
51 Oter Gas Revenues 308 N/A
52 Discounted Rate Services and Negotiated Rate Servics 313 N/A
53 Gas Operation and Maintenance Expenses 317-325
54 Exchange and Imbalance Transactons 328 N/A
55 Gas Used in Utilty Opertions 331 N/A
56 Transmission and Compresion of Gas by Oter 332 N/A
57 Oter Gas Supply Expenses 334
58 Miscllaneous General Expenses-Gas 335
59 Depreciation, Depletion, and Amortion of Gas Plant 336-338
60 Particulars Concerning Certin Income Deduction and Interet Charges Accunts 340
COMMON SECTION
61 Regulatory Commission Expenses 350-351
62 Employee Pensions and Benefits (Accunt 926)352
63 Distrbuton of Salaries and Wages 354-355
64 Charges for Outside Proessional and Oter Consulttive Service 357
65 Transactons with Assocated (Affliated) Companie 358 N/A
GAS PLANT STATISTICAL DATA
66 Compresor Stations 508-509 N/A
67 Gas Storae Projecs 512-513
68 Transmission Lines 514 N/A
69 Transmision System Peak Deliveries 518 N/A
70 Auxilary Peaking Facilites 519
71 Gas Accunt-Natural Gas 520
72 Shipper Supplied Gas for the Current Quarter 521 N/A
73 System Map 522 NlA
74 Footnot Reference 551 N/A
75 Footnote Text 552
76 Stockholder's Report (check appropriate box)
~Four copies wil be submitted
0 No annual report to stockholders is prepared
FERC FORM NO.2 (REV 12-07)Page 3
Name of Respondent
Avista Corporation
This ~ort Is:
(1) llAn Original
(2) DA Resubmission
General Information
Date of Report
(Mo, Da, Yr)
04/1612010
YearlPeriod of Repor
End of 2009/04
1. Provide name and tie of offce having custo of th general corprate bo of accunt and addres of offce where the general corp boks are kept and addre of of
where any other corate bo of accunt are kept if diferent fr that where the general corprate boks are kept
Christy Burmeister-Smith, Vice President and Controller
1411 E Mission Avenue
Spokane, WA 99207
2. Provide the name of the Stte under the laws of which repondent is incorprated and date of incorpration. If incorporated under a speal 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 propert of repondent was held by a reciver or trste, give (a) name of reciver or trstee, (b) date such reiver or trstee took posesion, (c)
the authority by which the recivership or trtehip was created, and (d) date when posesion by receiver or trtee ceased.
Not Applicable
4. State the classes of utlit and other servic furnished by respondent during the year in each Stte in which the repondent operaed.
Electric service in the states of Washington, Idaho and Montana
Natural gas service in the states of Washington, Idaho. and Oregon
5. Have you engaged as the principal accuntant to audit your financial statements an accuntant who is not the principal accuntant for your previous yeats certfied financial
stements?
(1) 0 Yes... Enter the date when such independent accuntant was initially engaged:
(2) l! No
.
FERC FORM NO.2 (12-96)Page 101
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Corporations Controlled by Respondent
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by
respondent at any time during the year. If control ceased pnor 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.
4. In column (b) designate type of control of the respondent as "0" for direct, an "I" for indirect, or a "J" for joint control.---------------------
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 that 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 nghts of each part.
Line Name of Company Controlled Type of Control Kind of Business Percent Voting Footnote
No..Stock Owned Reference
(a)(b)(c)(d)(e)
1 Avista Capitl, Inc.D Parent company to the Company's 100 Not used
subsidiaries.
2 Advantage IQ, Inc.I Provides utilit bil proessing services 74 Not used
3 Ecos,lnc.I Formed in 2009 to acquire Eco Not used
Consultng, Inc.
4 Avista Development, Inc.I Maintains investment portolio incl. real 100 Not used
estate
5 Avista Energy, Inc.I Inacte 100 Not used
6 Avista Power, LLC I Inacve 100 Not used
7 Avista Turbine Power, Inc.I Recives assigned power purchase 100 Not used
agreements
8 Avista Ventures, Inc.I Inacte 100 Not used
9 Pentzer Corporaton I Parent of Bay Area Mfg and Pentzer 100 Not used
Venture Hldngs
10 Pentzer Venture Holdings I Inactve 100 Not used
11 Bay Area Manufctring I Holding co. of AM&D dba MetalFX 100 Not used
12 Advanced Manufactring & Development I Custom mfg of elecronic enclosure 83 Not used
13 dbaMetalFX I Not used
14 Avista Recivables Corporation D Buys and sells revables of Avist 100 Not used
Corp
15 Spokane Energy, LLC D Marketing of energy 100 Not used
16 Avista Capitl ii D Affliated business trst issued pref 100 Not used
trt sec.
17 Avista Northwest Resourc, LLC I Owns an interest in a venture fund 100 Not used
investment
18 Steam Plant Square, LLC I Commercial offce and retail leasing 90 Not used
19 Courtard Ofce Center I Commercial offce and retail leasing 100 Not used
20
21
22
23
24
25
26
27
FERC FORM NO.2 (12-96)Page 103
Name of Respondent This wort Is:Date of Report Year/Period of Repon
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Security Holders and Voting Powers
1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book
or compilation of list of stockholders of the respondent, pnor to the end of the year, had the highest voting powers in the respondent,
and state the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a
footnote the known particulars of the trust (whether voting trust, etc.), duration of trust, and principal holders of beneficiary interests in
the trust. If the company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the
year, or if since it compiled the previous list of stockholders, some other class of security has become vested with voting rights, then
show such 10 security holders as of the close of the year. Arrange the names of the secunty holders in the order of voting power,
commencing with the highest. Show in column (a) the titles of offcers and directors included in such list of 10 security holders.
2. If any security other than stock carries voting nghts, explain in a supplemental statement how such security became vested with
voting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or
contingent; if contingent, describe the contingency.
3. If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination
of corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of
the respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material
information relating to exercise of the options, warrants, or rights. Specify the amount of such securities or assets any ortcer, director,
associated company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible
securities or to any securities substantially all of which are outstanding in the hands of the general public where the options, warrants,
1. Give date of the latest closing of the stock 2. State the total number of votes cast at the latest general 3. Give the date and place of
book prior to end of year, and, in a footnote, staté meeting prior to the end of year for election of directors of the such meeting:
the purpose of such closing:respondent and number of such votes cast by proxy.
May 7, 2009-Total:48430546 Spokane, Washington
By Proxy:48430546
VOTING SECURITIES
4. Number of votes as of (date):1213/2009
Line Name (Title) and Address of Total Votes Common Stock Preferred Stock Other
No.Securit Holder
(a)(b)(c)(d)(e)
5 TOTAL votes of all voting securies 54,642,333 54,642,333
6 TOTAL number of security holders 12,244 12,244
7 TOTAL votes of security holders listed below 505,254 505,254
8
9 Gary Ely; Libert Lake, WA 190,243 190,243
10 DBH Propertes, LP; Coeur d'Alene, ID 77,646 77,646
11 Gary Gail Ely; Libert Lake, WA 65,218 65,218
12 Margaret Anne Bronan; Akron, OH 55,000 55,000
13 Jack W Gustavel; Coeur d'Alene, ID Idacorp, Inc 30,458 30,458
14 Robert Eugene Young; Washougal, WA 20,000 20,000
15 John F Kelly; Coral Gables, FL 17,707 17,707
16 Freerick W Schott Tr; Santa Monica, CA 17,013 17,013
17 Thomas A Lowe & Katleen; Satellite Bch, FL 16,007 16,007
18 Edmund M Reeck Tr Ua Jun 1698; Salem, OR 15,962 15,962
19
20
FERC FORM NO.2 (12-96)Page 107
Name of Respondent This Report is:Date of Report YearlPeriod of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Importnt Changes During the QuartrNear
Give details concerning the matters indicated below. Make the statements explicit and precise, and number them in accrdance with the
inquiries. Answr each inquiry. Enter "none" or "not applicable" where applicable. If the answer is given elsewere in the report, refer to the
schedule in which it appears.
1. Changes in and important additions to franchise rights: Describe the actual consideration and state frm whom the franchise rights were
acquired. If the frnchise rights were 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 conceming the transactions, name of the Commission authorizing the transacton, and reference to Commission
authorization.
3. Purchase or sale of an operating unit or system: Briefl describe the propert, and the related transactions, and cite Commission
authoriation, if any was required. Give date joumal entries called for by Uniform System of Accounts were submited 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 conditions. State name of Commission authorizing lease and give reference to such
authorization.
5. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or
ceased and cite Commission authorization, if any was reuired. 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 otherwse, giving location and approximate total gas volumes available, period of contracts, and other parties to any such
arrngements, etc.
6. Obligations incurred or assumed by respondent as guarantor for the performance by another of any agreement or obligation, including
ordinary commercial paper maturing on demand or not later than one year after date of issue: State on behalf of whom the obligation was
assumed and amount of the obligation. Cite Commission authorization if any was required.
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 effct and nature of any important wage scale changes during the year.
9. State briefl the status of any materially importnt 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, 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. Estimated increase or decrease in annual revenues caused by important rate changes: State effective date and approximate amount of
increase or decrease for each revenue classification. State the number of customers affcted.
12. Describe fully any changes in offcers, directors, major securi holders and voting powers of the respondent that may have occurrd during
the reporting period.
13. In the event that the respondent participates in a cash management program(s) and it proprietary capital ratio is less than 30 percent
please describe the signifcant 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 descrbe plans, if any to regain at least a 30 percent proprietary ratio.
1. None2. None
3. None4. None5. None
6. Avista Receivables Corpration (ARC) is a wholly owned, banptcy-remote subsidiar of Avist Corp.
formed for the purose of acquiring or purchasing interests in certin accounts receivable, both biled and unbiled, of the
Company. Avist Corp., ARC and a third-par financial institution are paries to a Receivables Purchase Agreement,
and on March 13,2009 that agreement was amended to, among other things, extend the termination date to March 12,
2010. Under the Receivables Purchase Agreement, ARC can sell without recourse, and such financial institution will
purchase, on a revolving basis, up to $85.0 millon 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 of A vist Corp. The Receivables Purchase Agreement has financial
covenants, which are substatially the same as those of A vista Corp.' s committed lines of credit. Based on calculations
of eligible receivables, ARC had the abilty to sell up to $85.0 milion of receivables under this revolving agreement at
each of December 31, 2009 and December 31, 2008. There were not any accounts receivable sold under this revolving
agreement as of December 31,2009 and $17.0 milion were sold as of December 31,2008.
The Company has a committed line of credit agreement with various bans in the total amount of $320.0 milion
with an expiration date of April 5, 2011. Under the credit agreement, the Company can borrow or request the issuance of
lettrs of credit in any combination up to $320.0 milion. The Company had $87.0 milion in borrowings outstanding
I FERC FORM NO.2 (12-96) 108.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
/2) A Resubmission 041612010 2009/04
Importnt Changes During the QuartrlYear
under this committed line of credit as of December 31,2009 and $250.0 milion as of December 31, 2008. Tota letters
of credit outstading were $28.4 milion as of December 31,2009 and $24.3 milion as of December 31,2008. The
committed line of credit is secured by $320.0 milion of non-transferable First Mortgage Bonds of the Company issued to
the agent ban that would only become due and payable in the event, and then only to the extent, that the Company
defaults on its obligations under the committed line of credit.
Additionally, the Company has a committed line of credit agreement with various banks in the total amount of
$75.0 millon with an expiration date of AprilS, 2011 (entered in November 2009). The Compnay did not have any
borrowings outstading under this agreement at December 31, 2009. Avista Corp. may elect to increase the committed
line of credit by up to $25.0 milion under the same agreement. The committed line of credit is secured by $75.0 milion
of non-transferable First Mortgage Bonds of the Company issued to the agent ban that would only become due and
payable in the event, and then only to the extent, that the Company defaults on its obligations under the committed line of
credit. This credit agreement was approved by the respective regulatoiy commissions as follows: WUTC (Docket No.
UE081842); IPUC (Case No; A VU-U-08-02 Order No. 30673); and OPUC (Docket UF 4260).
On September 22, 2009, the Company issued $250.0'milion of 5.125 percent First Mortage Bonds due in 2022.
The net proceeds from the issuance of $249.4 millon (net of discounts and before A vista Corp. ' s expenses) were used to
retire variable rate short-term borrowings outsta.ding under our $320.0 milion committed line of credit, and for general
corporate puroses. This debt issuance was approved by the respective regulatoiy commissions as follows: WUTC
(Docket No. UE-081842 Order No.2); IPUC (Cae No. A VU-U-08-0 1 Order No. 30670); and OPUC (Docket UF
4246(1) Order No. 08-542).
In 2004, the Company issued Junior Subordinated Debt Securities, with a principal amount of$61.9 milion to
AVA Capital Trust II an afliated business trt formed by the Company. Concurrently, A V A Capita Trust m issued
$60.0 millon of Preferred Trust Securities to third paries and $1.9 milion of Common Trust Securities to the Company.
On April 1,2009, AVA Capital Trust m redeemed all of the Preferred Trust Securities issued to third paries with a
principal balance of $60.0 milion and all of the Common Trust Securities issued to the Company with a principal
balance of $ 1.9 milion. Concurently, the Company redeemed the total amount outstading of its Junior Subordinated
Debt Securities, at 100 percent of the principal amount ($61.9 milion) plus accrued interest held by AVA Capital Trust
m. The Company's net redemption of $60.0 milion was fuded by borrowings under its $320.0 milion committd line
of credit agreement.
In December 2008, the City of Forsyt, Montaa issued $17.0 milion of its Pollution Control Revenue
Refuding Bonds, Series 2008 (Avista Corp. Colstrp Project) due 2034 on behalf of Avista Corp. The proceeds of the
Bonds were used to refund $17.0 milion of Pollution Control Revenue Refuding Bonds, Series 1999B (A vista Corp.
Colstrip Project) issued by the City of Forsyt, Montaa on behalf of Avista Corp., which were subject to remarketing or
refuding on December 31,2008. In December 2009, Avist Corp. purchased the Bonds and expects tht at a later date,
subject to market conditions, the bonds will be refuded or remarketed to unafliated investors. Although Avista Corp.
is now the holder of these Pollution Control Bonds, the bonds wil not be cancelled but wil remain outsding under the
City of Forsy's indentue. However, so long as Avist Corp. is the holder, the bonds wil not be reflected as an asset or
a liabilty on Avista Corp.'s Consolidated Balance Sheet.7. None
8. Average anual wage increases were 2.4% for non-exempt employees effective March 2,2009. Average
annual wage increases were 2.8% for exempt employees effective March 2, 2009. There were no wage increases for
offcers. Certin bargaining unit employees recived increases ranging from 2.0% to 4.0% effective in March and April
2009.
9.
10.
11.
12.
Reference is made to Note 22 of the Notes to Financial Statements.
None
See Note 24 on page 123 of this Report.
Malyn K. Malquist, Executive Vice President, left the Company effective March 31, 2009.
An M. Wilson, Vice President of Fince and Treasurer, left the Company in June 2009.
On May 8, 2009, the Board of Directors of A vista Corporation elected Marc Racicot to serve as a director on the
I FERC FORM NO.2 (12-96) 108.2
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) 2S An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Importnt Changes Durina the OuarterlYear
board effective August 1,2009. Mr. Racicot wil stad for election to the board at the next anual meeting of
shareholders on May 13,2010. Mr. Racicot was appointed to serve on the Energy, Environmental & Operations and
Finance Committees of the board.
On May 18,2009, Avista Corporation named Jason Thackston as Vice President of Finance effective June 12,
2009.
On May 18, 2009, Avista Corporation named Diane Thoren as Treasurer effective June 12,2009.
13. Proprieta capital is not less than 30 percent.
I FERC FORM NO.2 (12-96)108.3
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FíA Resubmission 04/1612010 End of 2009/04
Comparative Balance Sheet (Assets and Other Debit)
Line Title of Accunt Reference Current Year End of Prior Year
No.Page Number OuarterlYear Balance End Balance
(c)12/31
(a)(b)(d)
1 UTILITY PLANT
2 Utilty Plant (101-106,114)200-201 3,546,192,091 3,340,068,198
3 Construction Work in Progress (107)200-201 57,217,478 75,568,224
4 TOTAL Utilty Plant (Total of lines 2 and 3)200-201 3,603,409,569 3,415,636,422
5 (Less) Accum. Provision for Depr., Amort., Depl. . (108, 111, 115)1,219,877,922 1,142,578,137
6 Net Utilty Plant (Total of line 4 less 5)2,383,531,647 2,273,058,285
7 Nuclear Fuel (120.1 thru 120.4, and 120.6)0 0
8 (Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.5)0 0
9 Nuclear Fuel (Total of line 7 less 8)0 0
10 Net Utilty Plant (Total of lines 6 and 9)2,383,531,647 2,273,058,285
11 Utilty Plant Adjustments (116)122 0 0
12 Gas Stored-Base Gas (117.1)220 0 0
13 System Balancing Gas (117.2)220 0 0
14 Gas Stored in Reservoirs and Pipelines-Noncurrent (117.3)220 0 0
15 Gas Owed to System Gas (117.4)220 0 0
16 OTHER PROPERTY AND INVESTMENTS
17 Nonutilty Propert (121)5,031,620 4,991,551
18 (Less) Accum. Provision for Depreciation and Amortization (122)897,684 890,639
19 Investments in Associated Companies (123)222-223 12,047,000 13,903,000
20 Investments in Subsidiary Companies (123.1)224-225 81,243,239 77,487,962
21 (For Cost of Accunt 123.1 See Footnote Page 224, line 40)
22 Noncurrnt Portion of Allowances 0 0
23 Other Investments (124)222-223 23,798,439 26,240,546
24 Sinking Funds (125)0 0
25 Depreciation Fund (126)0 0
26 Amortization Fund - Federal (127)0 0
27 Other Special Funds (128)11,558,301 10,234,544
28 Long-Term Portion of Derivative Assets (175)45,482,748 49,312,596
29 Long-Term Portion of Derivative Assets - Hedges (176)0 0
30 TOTAL Other Propert and Investments (Total of lines 17-20, 22-29)178,263,663 181,279,560
31 CURRENT AND ACCRUED ASSETS
32 Cash (131)2,462,480 1,674,372
33 Special Deposits (132-134)1,630,323 1,600,000
34 Working Funds (135)848,613 619,853
35 Temporary Cash Investments (136)222-223 652,010 2,684,44
36 Notes Receivable (141)629,625 63,451
37 Customer Accunts Receivable (142)188,271,550 207,867,900
38 Other Accounts Receivable (143)6,484,963 6,188,617
39 (Less) Accum. Provision for Uncollectible Accunts - Credit (144)3,710,770 5,844,603
40 Notes Receivable from Associated Companies (145)0 0
41 Accunts Receivable from Associated Companies (146)101,231 120,021
42 Fuel Stock (151)4,294,013 3,673,039
43 Fuel Stock Expenses Undistributed (152)0 0
FERC FORM NO.2 (REV 06-04)Page 110
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/16/2010 End of 2009/04
Comparative Balance Sheet (Assets and Other Debits)(continued)
Line Title of Account Reference Current Year End of Prior Year
No.Page Number OuarterNear Balance End Balance
(c)12/31
(a)(b)(d)
44 Residuals (Elec) and Exracted Products (Gas) (153)0 0
45 Plant Materials and Operating Supplies (154)18,386,509 17,455,835
46 Merchandise (155)0 0
47 Other Materials and Supplies (156)0 0
48 Nuclear Materials Held for Sale (157)0 0
49 Allowances (158.1 and 158.2)0 0
50 (Less) Noncurrent Portion of Allowances 0 0
51 Stores Expense Undistributed (163)12,832 0
52 Gas Stored Underground-Current (164.1)220 12,706,763 30,720,371
53 Liquefied Natural Gas Stored and Held for Processing (164.2 thru 164.3)220 0 0
54 Prepayments (165)230 9,985,760 8,415,670
55 Advances for Gas (166 thru 167)0 0
56 Interest and Dividends Receivable (171)197,040 10,934
57 Rents Receivable (172)553,237 646,271
58 Accrued Utilit Revenues (173)0 0
59 Miscellaneous Current and Accrued Assets (174)454,418 194,919
60 Derivative Instrument Assets (175)53,240,001 60,546,323
61 (Less) Long-Term Portion of Derivative Instrument Assets (175)45,482,748 49,312,596
62 Derivative Instrument Assets - Hedges (176)0 874,944
63 (Less) Long-Term Portion of Derivative Instrument Assests - Hedges (176)0 0
64 TOTAL Current and Accrued Assets (Total of lines 32 thru 63)251,717,850 288,199,765
65 DEFERRED DEBITS
66 Unamortized Debt Expense (181)15,732,877 15,852,599
67 Extraordinary Propert Losses (182.1)230 0 0
68 Unrecovered Plant and Regulatory Study Costs (182.2)230 0 0
69 Other Regulatory Assets (182.3)232 352,616,516 455,580,547
70 Preliminary Survey and Investigation Charges (Electric)(183)3,346,452 3,088,816
71 Preliminary Survey and Investigation Charges (Gas)(183.1 and 183.2)0 0
72 Clearing Accounts (184)0 0
73 Temporary Facilties (185)0 0
74 Miscellaneous Deferred Debits (186)233 26,105,547 32,008,980
75 Deferred Losses from Disposition of Utility Plant (187)0 0
76 Research, Development, and Demonstration Expend. (188)0 0
77 Unamortized Loss on Reacquired Debt (189)15,196,145 17,151,844
78 Accumulated Deferred Income Taxes (190)234-235 91,975,547 131,055,525
79 Unrecovered Purchased Gas Costs (191)(39,952,004)(18,646,016)
80 TOTAL Deferred Debits (Total of lines 66 thru 79)465,021,080 636,092,295
81 TOTAL Assets and Other Debits (Total oflines 10-15,30,64,and 80)3,278,534,240 3,378,629,905
FERC FORM NO.2 (REV 06-04)Page 111
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Comparative Balance Sheet (Liabilties and Other Credits)
Line Title of Accunt Reference Current Year Prior Year
No.Page Number End of End Balance
OuarterlYear 12/31
(a)(b)Balance (d)
1 PROPRIETARY CAPITAL
2 Common Stock Issued (201)250-251 759,057,747 755,903,119
3 Preferred Stock Issued (204)250-251 0 0
4 Capitl Stock Subscribed (202, 205)252 0 0
5 Stock Liabilit for Conversion (203, 206)252 ,0 0
6 Premium on Capital Stock (207)252 0 0
7 Other Paid-In Capital (208-211)253 17,498,634 19,170,532
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 (2,090,961)87,394
11 Retained Eamings (215, 215.1, 216)118-119 295,862,243 253,478,332
12 Unappropriated Undistributed Subsidiary Earnings (216.1)118-119 (20,871,863)(25,488,897)
13 (Less) Reacquired Capital Stock (217)250-251 0 0
14 Accumulated Other Comprehensive Income (219)117 (2,350,286)(6,092,318)
15 TOTAL Proprietary Capital (Total of lines 2 thru 14)1,051,287,436 996,883,374
16 LONG TERM DEBT
17 Bonds (221)256-257 1,070,256,423 824,970,979
18 (Less) Reacquired Bonds (222)256-257 0 0
19 Advances from Associated Companies (223)256-257 51,547,000 114,603,000
20 Other Long-Term Debt (224)256-257 0 0
21 Unamortized Premium on Long-Term Debt (225)258-259 230,967 239,850
22 (Less) Unamortized Discount on Long-Term Debt-Dr (226)258-259 2,167,570 1,752,256
23 (Less) Current Portion of Long-Term Debt 0 0
24 TOTAL Long-Term Debt (Total of lines 17 thru 23)1,119,866,820 938,061,573
25 OTHER NONCURRENT LIABILITIES
26 Obligations Under Capital Leases-Noncurrent (227)0 0
27 Accumulated Provision for Propert Insurance (228.1)0 0
28 Accumulated Provision for Injuries and Damages (228.2)1,650,500 1,579,821
29 Accumulated Provision for Pensions and Benefit (228.3)123,281,094 184,587,850
30 Accumulated Miscellaneous Operating Provisions (228.4)2,916,673 2,936,173
31 Accumulated Provision for Rate Refunds (229)0 0
FERC FORM NO.2 (REV 06-04)Page 112
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/16/2010 End of 2009/04
Comparative Balance Sheet (Liabilties and Other Credits)(continued)
Line Title of Accunt Reference Current Year Prior Year
No.Page Number End of End Balance
OuarterlYear 12/31
(a)(b)Balance (d)
32 Long-Term Portion of Derivative Instrument Liabilties 2,871,255 7,140,857
33 Long-Term Portion of Derivative Instrument Liabilties - Hedges . 0 0
34 Asset Retirement Obligations (230)3,971,453 4,208,327
35 TOTAL Other Noncurrent Liabilties (Total of lines 26 thru 34)134,690,975 200,453,028
36 CURRENT AND ACCRUED LIABILITIES
37 Current Portion of Long-Term Debt 0 0
38 Notes Payable (231)87,000,000 250,000,000
39 Accounts Payable (232)114,930,110 153,032,408
40 Notes Payable to Associated Companies (233)6,882,247 2,854,178
41 Accunts Payable to Associated Companies (234)724,582 737,710
42 Customer Deposits (235)8,140,853 6,979,171
43 Taxes Accrued (236)262-263 2,222,627 6,105,577
44 Interest Accrued (237)13,76,434 10,871,471
45 Dividends Declared (238)0 0
46 Matured Long-Term Debt (239)0 0
47 Matured Interest (240)0 0
48 Tax Collections Payable (241)147,574 0
49 Miscellaneous Current and Accrued Liabilties (242)268 55,461,901 32,188,393
50 Obligations Under Capital Leases-Current (243)0 75,206
51 Derivative Instrument Liabilties (244)18,958,058 78,603,554
52 (Less) Long-Term Portion of Derivative Instrument Liabilties 2,871,255 7,140,857
53 Derivative Instrument Liabilties - Hedges (245)50,091 0
54 (Less) Long-Term Portion of Derivative Instrument Liabilties - Hedges 0 0
55 TOTAL Current and Accrued Liabilties (Total of lines 37 thru 54)305,123,222 534,306,811
56 DEFERRED CREDITS
57 Customer Advances for Construction (252)1,280,331 1,263,086
58 Accumulated Deferred Investment Tax Credits (255)5,632,508 373,728
59 Deferred Gains from Disposition of Utilty Plant (256)0 0
60 Other Deferred Credits (253)269 22,330,799 24,985,882
61 Other Regulatory Liabilties (254)278 61,709,913 55,429,522
62 Unamortized Gain on Reacquired Debt (257)260 2,957,426 3,237,373
63 Accumulated Deferred Income Taxes - Accelerated Amortization (281)0 0
64 Accumulated Deferred Income Taxes - Other Propert (282)348,074,981 334,892,041
65 Accumulated Deferred Income Taxes - Other (283)225,579,829 288,743,487
66 TOTAL Deferred Credits (Total of lines 57 thru 65)667,565,787 708,925,119
67 TOTAL Liabilties and Other Credits (Total of lines 15,24,35,55,and 66)3,278,534,240 3,378,629,905
FERC FORM NO.2 (REV 06-04)Page 113
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 0411612010 End of 2009/04
Statement of Income
Quarterl
1. Enter in column (d) the balance forthe reportng quarter and in column (e) the balance for the same thre month perod for the prior year.
2. Report in column (f) the quarter to date amounts for electric utilty function; in column (h) the quartr to date amounts for gas utilit, and in (j the quarter to date amounts for
other utility functon for the currnt year quartr.
3. Report in column (g) the quarter to date amounts for elecric utilit functon; in column (Q th quartr to date amounts for gas utilit, and in (k) the quarter to date amounts for
other utility functon for the prior year quarter.
4. If additional columns are needed place them in a footnote.
Annual or Quarterly, if applicable
5. Do not report fourth quarter data in columns (e) and (f)
6. Report amounts for accunts 412 and 413, Revenues and Expense frm Utilit Plant Leased to Oters, in another utility columnin a similar manner to a utility department.
Spread the amount(s) over lines 2 thru 26 as appropriate. Incude these amounts in columns (c) and (d) totals.
7. Report amounts in accunt 414, Other Utilty Operating Income, in the same manner as accunts 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.
9. Use page 122 for importnt notes regarding the statement of income for any accunt thereof.
10. Give concise explanations concerning unsettled rate procedings where a contingency exists such that refunds of a material amount may need to be made to the utility's
customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effed the gross revenues or costs to which the
contingency relates and the tax effcts together with an explanation of the major factors which affct the rights of the utility to retain such revenues or recver amounts paid with
respect to power or gas purchases.
11 Give concise explanations concerning signifcant amounts of any refunds made or received during the year resulting from settement of any rate proeding affecing revenues
received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accunts.
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 accunting mehods made during the year which had an effect on net income, including the basis of
alloctions and apportionments from those used in the preceding year. Aiso, give the appropriate dollar effct of such changes.
14. Explain in a footnote if the previous year'slquarter's figures are diffrent frm that reported in prior report.
15. If the columns are insufcient for reportng additional utility departents, supply the appropriate accunt titles report the information in a footnote to this schedule.
TiUe of Accunt Refere Tota Tota Currnt Three Prior Thre
Page Currnt Year to Prir Year to Dat Months Ended Months Ended
Number Date Balance Balance Quarrly Only Quartrly Only
Line (a)
for QuarterNear for QuarterN ear No Fourt Quarter No Fourt Quarter
No.(b)(c)(d)(e)(f)
1 UTILIT OPERATING INCOME
2 Gas Operating Revenues (400)300-301 1.516.973.75 1.657.671.994 0 0
3 Operang Expense
4 Operatin Exenses (401)317-325 1,100,224,191 1,278.636,823 0 0
5 Maintenance Exnses (402)317-325 50,846.76E 47,636,921 0 0
6 Depreiation Expense (403)336-338 87,089.83E 82,388,834 0 0
7 Depreation Exnse for Asset Retirement Cost (403.1)336-338 (0 0 0
8 Amortzaton and Depletion of Utilit Plant (405)336-338 9,143,60 7.905.829 0 0
9 Amatin of Utlity Plant Acu. Adjustment (40)336-338 99,04 99,047 0 0
10 Amort of Prp. Losses, Unrecovered Plant and Reg. Study Costs (407.1)0 0 0 0
11 Amortzaton of Conversion Expense (407.2)(0 0 0
12 Regulatory Debits (407.3)3,718,5Q 382,274 0 0
13 (Less) Reulatory Credits (407.4)10,397,80 8,388.441 0 0
14 Taxes Oter than Income Tax (408.1)262-263 76,582,591 72,057.352 0 0
15 Income Taxes-Federal (409.1)262-263 30,223.251 3,249.258 0 0
16 Income Taxes-Oter (409.1)262-263 2.111.401 53.201 0 0
17 Provision of Deferrd Inco Taxes (410.1)234-235 23.050,10 42.600,284 0 0
18 (Less) Provision for Derr Income Taxes-Credit (411.1)23235 6,214,99i 4,970,670 0 0
19 Investmnt Tax Creit Adjustment-Net (411.4)(93.914)(49,308)0 0
20 (Less) Gans frm Dispoitin of Utilit Plant (411.6)C 0 0 0
21 Losses frm Dispoitin of Utilty Plant (411.7)C 0 0 0
22 (Less) Gains from Dispoitin of Allowance (411.8)0 0 0 0
23 Losse frm Dispoitin of Allowance (411.9)0 0 0 0
24 Accretion Exense (411.10)0 0 0 0
25 TOTAL Utilit Operating Exenses (T olal of lines 4thru 24)1.366.382,597 1,521,601.40 0 0
26 Net Utiit Operating Income (Total of lines 2 less 25) (Cany forward to page 116.
line 27)150.591,15i 136.070.590 0 0
FERC FORM NO.2 (REV 06-04)Page 114
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/16/2010 End of 2009/04
Statement of Income
Elec. Utilty Elec. Utilit Gas Utilty Gas Utilty Other Utilty Other Utilty
Current Previous Current Previous Current Previous
Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date
Line (in dollars)(in dollars)(in dollars)(in dollars)(in dollars)
No.(g)(h)(i)(in dollars)(k)(I)
0)
4 621,221,944 624,698,93 479,002,253 653,938,330 0 0
5 42,044,915 40,308,817 8,801,853 7,328,104 0 0
6 71,109,022 67,721,188 15,980,813 14,667,646 0 0
7 0 0 0 0 0 0
8 7,467,875 6,448,003 1,675,727 1,457,826 0 0
9 99,047 99,047 0 0 0 0
10 0 0 0 0 0 0
11 0 0 0 0 0 0
12 947,939 153,132 2,770,565 229,142 0 0
13 7,405,420 6,730,732 2,992,386 1,657,709 0 0
14 51,664,659 47,356,209 24,917,931 24,701,143 0 0
15 23,099,627 143,777 7,123,632 3,105,481 0 0
16 1,263,060 (192,188)848,345 245,389 0 0
17 20,060,696 36,623,690 2,989,409 5,976,594 0 0
18 5,234,188 4,711,220 980,807 259,450 0 0
19 (44,606)0 (49,308)(49,308)0 0
20 0 0 0 0 0 0
21 0 0 0 0 0 0
22 0 0 0 0 0 0
23 0 0 0 0 0 0
24 0 0 0 0 0 0
25 826,294,570 811,918,216 540,088,027 709,683,188 0 0
26 124,734,688 109,467,920 25,856,467 26,602,670 0 0
FERC FORM NO.2 (REV 06-04)Page 115
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Statement of Income(continued)
Referenc Total
Page Currnt Year to
Number Dat Balance
for QuarterlYear
(c)
Name of Respondent
Avista Corporation
TiU of Accunt
Line
No.
(a)(b)
Tota
Prior Year to Date
Balance
for QuarterlYea
(d)
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
Currnt Thre
MoUls Ended
Quartrly Only
No Fourt Quarter
(e)
Prr Thre
MonUls Ended
Quartrly Only
No Fourt Quarter
(Q
27 Net Utility Operating Income (Carred forward from page 114)
28 OTHER INCOME AND DEDUCTIONS
29 Oter Income
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
Nonutility Operating Income
Revenue form Merchandising, Jobbing and Contrct Work (415)
(Less) Cots and Exnse of Merchandising, Job & Contr Work (416)
Revenues frm Nonutilil Operations (417)
(Less) Expenses of Nonutilil Operaons (417.1)
Nonoperatng Renlallncome (418)
Equity in Eamings of Subsidiary Companies (418.1)
Interest and Diviend Income (419)
Allowance for Oter Funds Used During Constrctin (419.1)
Miscellaneous Nonoperating Income (421)
Gain on Disposition of Propert (421.1)
TOTAL Other Income (Tota of lines 31thru 40)
Other Income Deuctons
i iI II I15059115136070590 o o
0 0 0
0 0 0
0 0 0
3,869,058 0 0
7,726 0 0
119 4,123,038 0 0
10,08,671 0 0
5,692,491 0 0
16,000 0 0
810,694 0 0
16,86,562 0 0
Loss on Disposition of Propert (421.2)
Miscllaneous Amrtatin (425)
Donatons (426.1)
Life Insuranc (426.2)
Penalt (426.3)
Expenditres fo Certn Civic, Political and Related Actitis (426.)
Oter Deductons (426.5)
TOTAL Oter Income Deuctions (Tolal of lines 43 Ulru 49)
Taxes Applic. to Otr Income and Deuctions
Taxes Oter Ulan Income Taxs (408.2)
Inco Taxes-Federal (409.2)
Income Taxes-Oter (409.2)
Provision for Deferrd Income Taxes (410.2)
(Less) Provision for Deferr Income Taxes-Credit (411.2)
Investment Tax Crit Adjustmnts-Net (411.5)
(Less) Investmnt Tax Credit (420)
TOTAL Taxs on Oter Income and Deuctns (Tolal of lines 52-58)
Net Oter Income and Deuctons (T olal of fines 41, 50, 59)
INTEREST CHAGES
Interet on Long.Term Debt (427)
Amortzaton of Debt Dis. and Expense (428)
Amortzation of Loss on Reacuired Debt (428.1)
(Less) Amrtization of Premium on Debt.Creit (429)
(Less) Amortzatn of Gain on Reacquired Debt-Crit (429.1)
Interest on Debt to Assoiat Companies (430)
Otr Interet Expense (431)
(Less) Allowance lo Borrwed Funds Used During Constrctin-Credit (432)
Net Interet Charges (T olal of lines 62 thru 69)
Income Before Exrdinary Items (T olal of lines 27,60 and 70)
EXRAORDINARY ITEMS
Exrdinary Income (43)
(Les) Exordinar Deuctions (435)
Net Exaoinary Items (T olal of line 73 less line 74)
Income TaxesFederal and Oter (409.3)
Exaordinary Items afer Taxes (Tota of line 75 less line 76)
Net Income (Total of lines 71 and 77)
262-263
262-263
262-263
234-235
234-235
258-259
258-259
262.263
I i I i
0 0 0
1,110,571 0 0
956,059 0 0
2,100,235 0 0
138,152 0 0
1,211,097 0 0
1,891,45 0 0
3,624,657 0 0
547,911
2,415,034
288,122)
1,523,886
.3,29,942
0
0
903,767
12,338.138
62,954,659
922,381
3.759,437
8.885
0
6,218,511
5,554,756
4,611,851
74,789,008
73,619,720
0
0
0
0
0
73,619,720
340
34
340
340
FERC FORM NO.2 (REV 06-04)Page 116
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 2009/04
(2) riA Resubmission 04/1612010
Statement of Accumulated ComDrehensive Income and Hedoino Activities
1. Report in columns (b) (c) 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 affcted and the related amounts in a footnote.
Unrealize Gains Minimum Pension Foreign Currency Oter
Line and Losss on Iiabililty Adjustment Hedges Adjustments
No.Item available-for-sale (net amount)
-securities
(a)(b)(c)(d)(e)
1 Balance of Account 219 at Beginning of Precing
Year (12,781,264)
2 Preding QuarterN ear to Date Reclassifications
from Accunt 219 to Net Income
3 Preceding QuartrNear to Date Changes in Fair
Value 6,688,946
4 Total (lines 2 and 3)6,688,946
5 Balance of Accunt 219 at End of Preeding
QuarterNear (6,092,318)
6 Balance of Accunt 219 at Beinning of Currnt Year (6,092,318)
7 Current QuarterN ear to Date Reclassifcations from
Accunt 219 to Net Income
8 Current QuarterNear to Date Changes in Fair Value 3,742,032
9 Total (lines 7 and 8)3,742,032
10 Balance of Accunt 219 at End of Currnt
QuarterNear (2,350,286)
FERC FORM NO.2 (NEW 06-02)Page 117
Name of Respondent
Avista Corporation
This ~ort Is:(1) ~An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
Oter Cash Flow Hedges
(Insert Category)Line
No.
Other Cash Flow Hedges
Interest Rate Swaps
Totals for each
category of
itms rerded in
Account 219
(h)
19,607,486)
10,656,750
2,858,418
13,515,168
6,092,318)
6,092,318)
(n (g)
1
2
3
4
5
6
7
8
9
10
6,826,222)
10,656,750
3,830,528)
6,826,222
3,742,032
3,742,032
2,350,286)
Net Income
(Carred Forward
from Page 116,
Line 78)
(i)
Total
Comprehensive
Income
FERC FORM NO.2 (NEW 06-02)Page 117a
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
Date of Report
(Mo, Da, Yr)
04116/2010
Year/Period of ReportThis ~ort Is:
(1) !.An Original
(2) A Resubmission
Statement of Retained Earnings
1. Report all changes in appropriated retained earnings, unappropriate retained earnings, and unappropriated undistrbuted subsidiary earnings for the year.
2. Each credit and debit during the year should be identied as to the retained earnings accnt in which reorded (Accunts 433, 436-39 inclusive). Show the contr primary accunt
affected in column (b).
3. State the purp and amount for each reervation or appropriation of retained earnings.
4. List first Accunt 439, Adjustments to Retained Earnings, reflectng adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order.
5. Show dividends for each class and series of capitl stock.
End of 2009/04
(a)(b)
Currt Quarter
Year to Date
Balance
(c)
Previous Quarter
Year to Date
Balance
(d)
Line
No.
Item
Contr Primary
Accunt Affected
UNAPPROPRIATED RETAINED EARNINGS
1 BalanceBeginning of Period
2 Changes (Identify by prescribed retained earnings accounts)
3 Adjustments to Retained Earnings (Accunt 439)
4 TOTAL Creits to Retained Earnings (Accunt 439) (footote details)
5 TOTAL Debit to Retained Earnings (Accunt 439) (footnote details)
6 Balance Transferred from Income (Acc433 less Acc418.1)
7 Appropriations of Retained Earnings (Accunt 436)
8 TOTAL Appropriations of Retained Earnings (Accunt 436) (footnote details)
9 Dividends Declared-Preferred Stock (Accunt 437)
10 TOTAL Dividends Declare-Preferr Stoc (Accunt 437) (footnote details)
11 Dividends Declared-Common Stock (Account 438)
12 TOTAL Dividends Declared-Common Stock (Accunt 438) (footnote details)
13 Transfers from Accunt 216.1, Unappropriated Undistrbuted Subsidiary Earnings
14 Balance-End of Period (Total of lines 1, 4, 5, 6, 8,10,12, and 13)
15 APPROPRIATED RETAINED EARNINGS (Accunt 215)
16 TOTAL Appropriated Retained Earnings (Accunt 215) (footnote detils)
17 APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Accunt
18 TOTAL Appropriated Retained Earnings-Amortzation Reserve, Federal (Accunt
19 TOTAL Appropriate Retained Earnings (Accounts 215, 215.1) (Total of lines
20 TOTAL Retained Earnings (Accounts 215, 215.1, 216) (Total of lines 14 and 1
21 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1)
Report only on an Annual Basis no Quarterly
22 Balance-Beginning of Year (Debit or Credit)
23 Equit in Earnings for Year (Credit) (Accunt 418.1)
24 (Less) Dividends Received (Debit)
25 Oter Changes (Explain)
26 Balance-End of Year
-_..
- -- ---- - -- ---
796,180)
86,243,799 69,496,682
14,939,262)
25,488,897)
3,789,583
20,871,863)
FERC FORM NO.2 (REV 06-04)Page 118-119
Name of Respondent
Avista Corporation
Date of Report
(Mo, Da, Yr)
04/1612010 End of 2009/04
This ~ort Is:
(1) !!An Original
(2) A Resubmission
Statement of Cash Flows
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identif
separately such items as investments, fixed assets, intangibles, etc.
(2) Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation
between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet.
(3) Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing
activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income
taxes paid.
(4) Investing Activities: Include at Other (line 25) net cash outow to acquire other companies. Provide a reconcilation of assets acquired with liabilties
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 reconcilation of the dollar amount of leases capitalized with the plant cost.
Line Description (See Instructions for explanation of codes)
No.
(a)
Current Year
to Date
OuarterlYear
1 Net Cash Flow from Operating Activities
2 Net Income (Line 78( c) on page 116)
3 Noncash Charges (Credit) to Income:
4 Depreiation and Depletion
5 Amortization of deferr power and gas cots, debt expense and exchange poer
6 Deferrd Income Taxes (Net)
7 InvestmentTax Credit Adjustments (Net)
8 Net (Increase) Decrese in Receivables
9 Net (Increae) Decrese in Inventory
10 Net (Increase) Decrease in Allowance Inventory
11 Net Increse (Decrease) in Payables and Acced Expenses
12 Net (Increase) Decrese in Oter Regulatory Assets
13 Net Increse (Deease) in Oter Regulatory Liabilties
14 (Le) Allownce for Oter Funds Used During Constrcton
15 (Less) Undistrbut Earnings frm Subsidiary Companies
16 Other (footnote details):
17 Net Cash Provided by (Used in) Operating Actities
18 (Total of Lines 2 thru 16)
19
20 Cash Flow from I nvestment Actvites:
21 Constrction and Acquisition of Plant (including land):
22 Gross Additions to Utility Plant (less nuclear fuel)
23 Gro Additons to Nuclear Fuel
24 Gross Additions to Common Utilit Plant
25 Gross Additons to Nonutilit Plant
26 (Less) Allowance for Other Funds Used During Constrcton
27 Other (fotnote details):
28 Cash Outws for Plant (Total of lines 22 thru 27)
29
30 Acquisition of Other Noncurrnt Assets (d)
31 Proees frm Dispoal of Noncurrnt Assets (d)
32
33 Investmnls in and Advance to Assoc. and Subsidiary Companies
34 Contributons and Advance frm Assoc. and Subsidiary Companies
35 Disposition of Investments in (and Advance to)
36 Assoiated and Subsidiary Companies
37
38 Purchase of Invesment Securities (a)
39 Proceds frm Sales of Investment Securies (a)
96,233,438
59,481,435
9,011,417
5,258,780
18,733,830
16,449,128
27,996,937)
10,391,960)
1,329,752
3,078,244
827,452
21,996,745)
Year/Period of Report
Previous Year
to Date
OuarterlYear
90,390,864
52,958,619
41,798,683
( 49,308)
( 116,961,581)
( 18,855,778)
2,228,853
20,468,183)
2,372,800
5,692,491
4,123,038
6,582,767)
( 206,916,479)( 219,796,264)
128,775
4,689,731 1,191,118
7,998,322
FERC FORM NO.2 (REV 06-()Page 120
Name of Respondent
Avista Corporation
Year/Period of Report
End of 2009/04
Line
No.
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Statement of Cash Flows (continued)
Description (See Instructions for explanation of codes)
(a)
Date of Report
(Mo, Da, Yr)
04/1612010
Current Year
to Date
OuarterNear
Previous Year
to Date
OuarterNear
6,013
40 Loans Made or Purcased
41 Collectons on Loans
42
43 Net (Increase) Decrase in Receivables
44 Net (Increase) Decrease in Inventory
45 Net (Incree) Decrease in Allowance Held for Speculation
46 Net Increse (Dese) in Payables and Accrued Expenses
47 Changes in other propert and investments
48 Net Cash Provided by (Used in) Investing Actiities
49 (Total of lines 28 thru 47)
50
51 Cash Flow frm Financing Activities:
52 Proces from Issuance ot
53 Long-Term Debt (b)
54 Preferred Stock
55 Common Stock
56 Other (footnote details):
57 Net Increse in Short-term Debt (c)
58 Cash reived for settement of intere rate swap agrements
59 Cash Provided by Outside Sources (Total of lines 53 thru 58)
60
61 Payments for Retirement of:
62 Long-Term Debt (b)
63 Preferr Stock
64 Common Stock
65 Long-term debt and short-term borrowing issuance cots
66 Net Decrase in Short-Term Debt (c)
67 Cash paid for settement of interest rate swap agreements
68 Dividends on Preferrd Stock
69 Dividends on Common Stock
70 Net Cash Provided by (Used in) Financing Actvities
71 (Total of lines 59 thru 69)
72
73 Net Increase (Decrase) in Cash and Cash Equivalents
74 (Total of line 18.49 and 71)
75
76 Cash and Cash Equivalents at Beginning of Period
77
78 Cash and Cash Equivalents at End of Period
1,000,477)2,006,496
249,425,000 296,165,000
2,621,946 28,564,671
250,000,000
10,776,222
262,823,168 574,729,671
78,931,206)( 401,855,029)
( 3,726,398)
( 163,000,000)
5,023,987)
16,395,000)
44,360,372)37,070,823)
FERC FORM NO.2 (REV 06-04)Page 120a
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) A Resubmission 04/1612010 2009/04
Note to Financial Statements
1. Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnings for the Year,
and Statement of Cash Flow, or any account thereof. Classif the disclosures accrding to each financial statement, providing a subheading for
each statement except where a disclosure is applicable to more than one statement. The disclosures must be on the same subject matters and
in the same level of detail that would be required if the respondent issued general purpose financial statements to the public or shareholders.
2. Fumish details as to any signifcant contingent assets or liabilities existing at year end, and briefl explain any action initiated by the Intemal
Revenue Service involving possible assessment of additional income taes of material amount, or a claim for refund of income taes of a
material amount initiated by the utilit. Also, briefl explain any dividends in arrears on cumulative preferred stock.
3. Furnish details on the respondent's pension plans, post-retirement benefit other than pensions (PBOP) plans, and post-employment benefit
plans as required by instruction no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Furnish details on
the accounting for the plans and any changes in the method of accunting for them. Include details on the accunting for transition obligations 0
assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year's plan or trust curtailments,
terminations, transfers, or reversions of assets. Entities that participate in multiemployer postretirement benefit plans (e.g. parent company
sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, (1) the amount of cost recognized in the
respondent's financial statements for each plan for the period presented, and (2) the basis for determining the respondent's share of the total
plan costs.
4. Fumish details on the respondent's asset retirement obligations (ARO) as required by instruction no. 1 and, in addition, disclose the amounts
recovered through rates to settle such obligations. Identif any mechanism or accunt in which recovered funds are being placed (i.e. trust funds,
insurance policies, surety bonds). Fumish details on the accounting for the asset retirement obligations and any changes in the measurement or
method of accounting for the obligations. Include details on the accunting for settement of the obligations and any gains or losses expected or
incurred on the settlement.
5. Provide a list of all environmental crdit reived during the reporting period.
6. Provide a summary of revenues and expnses for each tracked cost and special surcharge.
7. Where Accunt 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 item. Se General Instrction 17 of the Uniform System of Accunts.
8. Exlain concisely any retained eamings restrictions and state the amount of retained earnings affected by such restrictions.
9. Disclose details on any significant financial changes during the reportng year to the respondent or the respondent's consolidated group that
directly affct the respondent's gas pipeline operations, including: sales, transfers or mergers of affliates, investments in new partnerships, sales
of gas pipeline facilities or the sale of ownership interests in the gas pipeline to limited partnerships, investments in related industries (i.e.,
production, gathering), major pipeline investments, acquisitions by the parent corporation(s), and distributions of capital.
10. Exlain concisely unsetted rate procedings where a contingency exists such that the company may need to refund a material amount to
the utilits customers or that the utilty may receive a material refund with respect to power or gas purchases. State for each year affected the
gross revenues or costs to which the contingency relates and the tax effcts and explain the major factors that affect the rights of the utilit to
retain such revenues or to recover amounts paid wih respect to power and gas purchases.
11. Exlain concisely signifcant amounts of any refunds made or reived during the year resulting from settlement of any rate proceeding
affcting revenues received or costs incurrd for power or gas purchases, and summarize the adjustments made to balance sheet, income, and
expense accunts.
12. Explain concisely only those significant 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 preeding year. Also give the approximate dollar effect of such changes.
13. For the 30 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 omited.
14. For the 30 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 signifcant changes since the most recently completed year in
such items as: accunting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term
contrcts; capitalization including signifcant 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.
15. 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 require by the above instructions, such notes may be included herein.
NOTES TO FIANCIA STATEMENTS
NOTE I. SUMMAY OF SIGNIFICANT ACCOUNING POLICIES
Nature of Business
Avista Corporation (Avita Corp. or the Company) is an energy company engaged in the generation, trmission and distrbution of
energy, as well as other energy-related businesses. Avista Corp. generates, transmits and distributes electrcity in par of eastern
Washington and nortern Idaho. In addition, Avista Corp. has electrc generatig facilties in Montaa and nortern Oregon. Avist
Corp. also provides natual gas distrbution servce in par of eastern Washington and nortern Idao, as well as par of
norteast and
southwest Oregon. A vista Capital, Inc. (A vista Capital), a wholly owned subsidiar of A vista Corp., is the parent company of all of
the subsidiar companies including Avista Energy, Inc. (Avista Energy) and Advantage IQ, Inc. (Advantage IQ), a 74 percent owned
subsidiar as of December 3 i, 2009. Avista Energy was an electrcity and natual gas marketing, trading and resource management
business. On June 30, 2007, A vista Energy completed the sale of substatially all of its contracts and ongoing operations. See Note 3
I FERC FORM NO. 213-Q (REV 12-07) 122.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Onginal (Mo, Da, Yr)
(2) A Resubmission 04/1612010 2009/04
Notes to Financial Statements
for fuer informtion. Advantage IQ is a provider offacilty informtion and cost management services for multi-site customers
thoughout Nort America.
Accounting Standards Codificatin
In June 2009, the Financial Accounting Stadards Board (FASB) issued Statement of Financial Accounting Stadads (SFAS) No.
168, "The Accounting Stadads Codificaton and the Hierachy of Generally Accepted Accounting Priciples - a replacement of
FASB Statement No. 162." This statement replaces all previously issued accountig stadads and estlishes the FASB Accountig
Stadards Codification (ASC). The ASC is the single source of authoritave nongovernenta accountig priciples generall
accepted in the United States of Amenca (U.S. GAAP) and is effective for all interi and anual penods ending afr September 15,
2009. All existig accountin stadads documents were superseded. All other accountig literatue not included in the ASC is
considered nonauthontative. The adoption of the ASC did not have any impact on the Company's fiancial condition, results of
operations and cash flows, as the ASC did not change existing U.S. GAA. The adoption of the ASC only resulted in changes to the
Company's fiancial statement disclosure references. In order to faciltate the tranition to the ASC, the Company has elected to show
references to U.S. GAAP with ths report pnor to the ASC along with a parenthetical ASC reference.
Basis of Reporting
The fiancial statements include the assets, liabilties, revenues and expenses of the Company and have been prepared in accordace
with the accounting requiements of the Federal Energy Reguatory Commsion (FERC) as set fort in its applicable Unifonn System
of Accounts and published accountig releases, which is a comprehensive basis of accountig other th U.S. GAA. As required by
the FERC, the Company accounts for its inves1ment in majonty-owned subsidianes on the equity method rather than consolidating the
assets, liabilties, revenues, and expenses of these subsidiares, as required by U.S. GAAP. The accompanying fiancial statements
include the Company's proportionate 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 U.S. GAAP in the presentation of(l) curent porton of
long-tenn debt (2) assets and liabilties for cost of removal of assets, (3) assets held for sale, (4) regulatory assets and liabilties, (5)
deferred income taes and (6) comprehensive income.
Use of Estimates
The preparation of the financial statements in confonnity with U.S. GAA requires management to make estimates and assumptions
that affect amounts reportd in the fiancial statements. Significant estiates include:
. determg the market value of energy commodity denvative assets and liabilties,
. pension and other postretiement benefit plan obligations,
. contigent liabilties,
. recoverabilty of reguatory assets,
. stock-based compensation, and
. unbiled revenues.
Changes in these estites 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 reported and disclosed herein.
System of Accounts
The accountig records of the Company's utilty operations are maintained in accordance with the unifonn system of accounts
prescribed by the FERC and adopted by the state regulatory commissions in Washington, Idao, Montaa and Oregon.
Regulatin
The Company is subject to state reguation in Washigtn, Idaho, Montaa and Oregon. The Company is alo subject to federal
reguation by the FERC.
Operating Revenues
Revenues related to the sale of energy are generally recorded when service is rendered or energy is delivered to customers. The
determaton of the energy sales to individual customer is based on the reading of their meters, which occur on a systematc basis
thoughout the month. At the end of each calenda month the amount of energy delivered to customers since the date of the last meter
reading is estimated and the correspondig unbiled revenue is estiated and recorded. Accounts receivable includes unbiled energy
revenues of $89.6 milion as of December 3 i, 2009 and $84.3 millon (net of $11.4 milion of unbiled receivables sold) as of
December 31, 2008. See Note 5 for inonnation related to the sale of accounts receivable.
Advertiing Exenses
I FERC FORM NO. 213-Q (REV 12-07)122.2
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) AAn Original (Mo, Da, Yr)
I (2) A Resubmission 04/161010 2009/04
Nots to Financial Statements
The Company expenses advertsing costs as incured. Advertsing expenses were not a material portion of the Company's operating
expenses in 2009 and 2008.
Depreciatin
For utlity operations, depreciation expense is estat by a method of depreciation accountig utilizg composite rates for utility
plant. Such rates are designed to provide for retirements of properes at the expiration of their service lives. For utility opertions, the
ratio of depreciation provisions to average depreciable propert was 2.78 percent in 2009 and 2.77 percent in 2008.
The averae service lives for the followig broad categories of utilty plant in service are:
. electric thermal production - 32 yeas,
. hydroelectric production -74 year,
. electrc tranmission - 5 i years,
. electrc distrbution - 4 i years, and
. natul gas disbution propert - 53 year.
Tax Other Than Income Taxs
Taxes other th income taes include state excise taes, city occupational and franchise taes, real and personal propert taes and
certin other taes not based on net income. These taes are generally based on revenues or the value of propert. Utilty related taes
collected from customers (priarly state excise taes and city utility taes) are recorded as operating revenue and expense and totaled
$56.8 milion in 2009 and $53.9 milion in 2008.
AUowance for Funds Used During Construction
The Allowance for Funds Used During Constnction (AFC) represents the cost of both the debt and equity fuds used to fiance
utility plant additions durg the constnction period. In accordace with the uniform system of accounts prescribed by regulatory
authorities, AFC is capitalized as a par of the cost of utilty plant and the debt related porton is credited curently againt total
interest expense in the Statements of Income. The Company generally is permitted, under established reguatory rate practices, to
recover the capitalizd AFUDC, 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 relate to AFC generally does not occur until the related utilty plant is placed
in service and included in rate base. The effective AFC rate was 8.22 percent in 2009 and 8.2 percent in 2008. The Company's
AFUDC rates do not exceed the maximum allowable rates as determed in accordace with the requirements of regulatory autorities.
Income Taxs
A deferred income ta asset or liabilty is determined based on the enacd ta rates that wil be in effect when the differences between
the fiancial statement caring amounts and ta basis of existg assets and liabilties are expected to be reported in the Company's
consolidated income ta retu. The deferred income ta expense for the period is equa to the net change in the deferred income ta
asset and liabilty accounts from the beging to the end of the period. The effect on deferred income taes of a change in ta rates is
recognd in income in the period that includes the enactent date. Deferred income ta liabilties and reguatory asset are
established for income ta benefits flowed though to customers as prescrbed by the respective reguatory commssions.
Stock-Based Compenation
Compensation cost relatig to share-based payment tractions is recognizd in the Company's fiancial statements based on the fair
value of the equity or liabilty intrents issued. See Note 21 for fuer information.
Earnings per Common Share Attibutable to Avista Corporation
Basic earings per common shae attbutable to Avista Corpration is computed by dividing net income attbutable to Avista
Corporation by the weighted average number of common shares outsding for the period. Diluted earings per common share
attbutable to Avista Corporation is calculated by dividing net income attibutable to Avista Corporation (adjusted for the effect of
potentially dilutive securties issued by subsidiares) by diluted weighted average common shares outstading durg the period,
includin common stock equivalent shares outstading using the treasur stock method, unless such shares are anti-dilutive. Common
stock equivalent shares include shares issuable upon exercise of stock options and contingent stock awards. See Note 20 for earings
per common share calculations.
Cash and Cash Equivalents
For the puroses ofthe Statements of Cash Flows, the Company considers aU temporar investments with a matwty of thee months or
less when purchased to be cash equivalents. Cash and cash equivalents include cash deposits from counterpares.
I FERC FORM NO. 213-Q (REV 12-07) 122.3
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
I (2) A Resubmission 0416/2010 2009/04
Not to FinancIal Statements
Allowance for Doubtful Accounts
The Company mainta an allowance for doubtful accounts to provide for estiated and potential losses on accounts receivable. The
Company determes the allowance for utilty and other customer accounts receivable based on historical write-offs as compared to
accounts receivable and operatig revenues. Additionally, the Company establishes specific allowances for cert individual
accounts. The followig table presents the activity in the allowance for doubtfl accounts durg the years ended December 31
(dollars in thousands):
Allowance as of the begining of the yea
Additions expensed dug the year
Net deductions
Allowance as of the end of the year
2009
$5,845
5,160
(7.294)am
2008
$2,966
6,336
0.457)~
UtUity Plant in Service
The cost of additions to utlity plant in service, including an allowance for fuds used during constrction and replacements of units of
propert and improvements, is capitalized. Costs of depreciable units of propert retired plus costs of removal less salvage are charged
to accumulated depreciation.
Regulatory Deferred Charges and Credit
The Company prepares its fiancial statements in accordance with the provisions of SF AS No. 71, "Accountig for the Effects of
Cert Types of Regulation" (ASC 980) because:
. rates for regulated servces are established by or subject to approval by independent third-par regulators,
. the reguate rates are designed to recover the cost of providig the regulated services, and
. in view of demand for the reguated services and the level of competition, it is reasonable to assume tht rates can be chaged
to and collected from customers at levels tht wil recover costs.
ASC 980 requires the Company to reflect the impact of regulatory decisions in its fiancial statements. ASC 980 requies that certin
costs and/or obligations (such as incured power and natu gas costs not curently included in rates, but expected to be recovered or
refuded in the futue) are reflected as deferred charges or credits on the Balce Sheets. These costs and/or obligations are not
reflected in the Statements of Income until the period durg which matching revenues are recognd
If at some point in the futue the Company deterines tht it no longer meets the criteria for contiued application of ASC 980 for al
or a portion of its reguated operations, the Company could be:
. required to wrte off its reguatory assets, and
. precluded from the futue deferral of cost not recovered thugh rates at the tie such costs are incured, even if the
Company expected to recover such costs in the futu.
The Company's priar reguatory assets include:
. power cost deferrals,
. investent in exchange power,
. regulatory asset for deferred income taes,
. unamortzed debt repurchase costs,
. assets offettg net utlity energy commodity derivative liabilties (see Note 6 for fuer information),
. expenditues for demand side maagement program,
. expenditues for conservation progr,
. payments to the Coeur d Alene Tribe for past water storage and the licensing of the Spokane River Project,
. certin expenditues for licensing hydroelectrc generating facilties, and
. unfuded pensions and other postretiement benefits.
Reguatory liabilties include:
. utilty plant retirement costs,
. natual gas deferrls, and
. liabilties offsettg net utilty energy commodity dervative assets (see Note 6 for fuer inormation).
I FERC FORM NO. 213-Q (REV 12-07) 122.4
Name of Respondent This Report is:Date of Report Yea~Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I è2) A Resubmission 04161010 2009/04
Notes to FinancIal Statements
Investment in Exhange 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 terminated prior to completion. Under a settlement agreement with the Bonneville Power
Administration in 1985, Avista Corp. began receiving power in 1987, for a 32.5-year period, related to its investment in WN-3.
Though a settlement agreement with the Washington Utilities and Transporttion Commission (WC) in the Washington
jursdiction, A vista Corp. is amortizing the recoverable porton of its investment in WN-3 (recorded as investment in exchange
power) over a 32.5 year period begiing in 1987. For the Idao jursdiction, A vista Corp. fully amortzed the recoverable porton of
its investment in exchange power.
Unamortized Debt Exense
Unamortd debt expense includes debt issuace cost tht are amortd over the life of the related debt
Unamortized Loss on Reacquired Debt
. For the Company's priar regulatory jursdiction and for any debt repurchases begig in 2007 in all jursdictions, premium paid
to repurchase debt are amortd over the remaing life of the ongial debt that wa repurchased or, if new debt is issued in
connection with the repurchae, these cost are amortized over the life of the new debt. In the Company's other regulatory
jurisdictions, premium paid to repurchase debt prior to 2007 are being amortized over the average remaining matuty of outstading
debt when no new debt was issued in connection with the debt repurchase. These cost are recovered though retail rates as a
component of interest expense.
NOTE 2. NEW ACCOUNING STANARS
Effective Janua 1, 2008, the Company adopte the provisions of SF AS No. 157, "Fair Value Measements" (ASC 820-10) related
to its fiancial assets and liabilties and nonfancial assets and liabilties measured at fair value on a recurg basis. In Februar
2008, the FASB issued Sta Position (FSP) No. 157-2, which deferred the effective date for certin portons of ASC 820-10 related to
nonrecuring measurements ofnonfmancial assets and liabilties. Effective Janua 1,2009, the Company adopted those provisions of
ASC 820-10. The adoption of the provisions of ASC 820-10 that became effective on Janua 1,2008 and 2009, did not have a
material impact on the Company's fiancial condition, results of operations and cash flows. However, the Company expanded
disclosures for fair value measurements that became effectve on Januar 1,2008. There were no additional disclosures related to the
provisions that became effective Janua 1, 2009. See Note 18 for the expanded disclosures.
Effective Janua 1, 2009, the Company adopted SFAS No. 141(R), "Business Combinations" (ASC 805-10) that replaces previous
accounting guidace for business combinations and addresses the accounting for all transactions or other events in which an entity
obtains control of one or more businesses. This statement requires the acquirg entity in a business combination to recognize the
assets acquired, the liabilties assumed, and any noncontrolling interest in the trsaction at the acquisition date, measured at their fair
values as of that date, with liited exceptions.
Effective Janua 1,2009, the Company adopted SFAS No. 160, ''Noncontrolling Interests in Consolidated Fincial Statements - an
amendment of AR No. 51" (ASC 810-10). Ths sttement amended previous accounting guidace to establish accountig and
reportg stadads for a noncontrolling (minority) interest in a subsidiar and for the deconsolidation of a subsidiar. This sttement
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 adoption of ths statement had no material impact on the Company's ficial condition and
results of operations.
Effective Januar 1,2009, the Company adopted SFAS No. 161, "Disclosurs about Derivative Instrents and Hedging Activities"
(ASC 815-10) that requires disclosure of the fair value of derivative instrents and their gains and losses in a tabular format. The
statement requirs disclosure of derivative featues that are related to credit risk. The Company expanded disclosures for derivatives
and hedging activities. See Note 6 for the expanded disclosures.
Effective December 31, 2009, the Company adopted FSP FAS 132(R)-, "Employers' Disclosures about Postetiement Benefit Plan
Assets" (ASC 715-20) that amends FASB Statement No. 132(R) "Employers' Disclosures about Pensions and Oter Postretiement
Benefits" (ASC 715-20). This statement provides guidance on an employer's disclosures about plan assets ofa defied benefit
pension or other postretiement plan. The Company has expanded disclosures for its pension and other postetirement benefit plan
assets in Note 9.
Effectve June 30, 2009, the Company adopted FSP FAS 157-4, "Determining Fai Value When the Volume and Level of Activity for
I FERC FORM NO. 2/3-0 (REV 12-07) 122.5
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
the Asset or Liabilty Have Significantly Decreased and Identifying Tranactions That Are Not Orderly" (ASe 820-65-10-4) that
provides guidance for determg fai values of financial intrents for which there is no active market or when quoted prices may
represent distressed tranactions. The guidace includes a reafation of the need to use judgment in certin circumtaces and
requires expanded disclosures suroundig equity and debt securties. The adoption of ths FSP did not have an impact on the
Company's fiancial condition, results of operations and cash flows.
Effective June 30, 2009, the Company adopted SFAS No. 165, "Subsequent Events" (ASC 855-10). Th statement established
priciples and requiements for subsequent events related to: 1) the period afer the balance sheet date durg which manement of a
reportg entity shall evaluate events or trsactions that may occur for potential recogntion or disclosure in the ficial statements;
2) the circumstaces under which an entity shall recogn events or tractions occuring after the balance sheet date in its fiancíal
statements; and 3) the disclosures that an entity shall make about events or tranactions that occured aftr the balance sheet date. The
Company evaluated subsequent events up to Febru 26, 20 i 0 (the date the fmancial statements were available to be issued).
In June 2009, the FASB issued SFAS No. 166, "Accountig for Tranfers of Financial Assets an amendment ofFASB Statement No.
140" (ASe 860). Th statement amends certin provisions of SF AS No. 140 (ASe 860) related to accounting for trfers of
fiancial assets and a trferor's contiuing involvement in transferred fiancial assets. The Company was required to adopt this
statement effective Januar 1,2010. The Company is evaluatig the impact this sttement wil have on its financial condition, results
of operations and cash flows. In paricular, the Company is evaluating its accounts receivable sales (see Note 5) to determine whether
or not the transactions meet the criteria of sales of financial assets. If the trsactions did not meet the criteria, the tranactions would
be accounted for as secured borrowings. As of December 31, 2009, the Company had not sold any accounts receivable under the
revolving agreement. The Company will finalize its evaluation during the fist quarer of 20 1 0 to determe the impact of adoption, if
any, on its fiancial condition, results of operations and cash flows.
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)" (ASC 810). This statement cares
forward the scope ofF ASB Interpretation No. 46(R) (ASC 810), with the addition of entities previously considered qualifying
special-purose entities, as the concept of these entities was eliminted in SFAS No. 166 (ASC 860). The amendments will
significantly affect the overall consolidation analysis of varable interest entities (VIE). The amendments wil require the Company to
reconsider previous conclusions relatig to the consolidation of VIEs, includig whether an entity is a VIE, whether the Company is
the VIE's priar beneficiar, and what tye of fiancial statement disclosures ar required. The Company was required to adopt ths
sttement effective Janua 1,2010. The Company is evaluatig the impact this statement wil have on its fiancial condition, results
of operations and cash flows. The Company will fializ its evaluation durg the fit quar of 20 1 0 to determe the impac of
adoption, if any, on its fiancial condition, results of operations and cash flows.
NOTE 3. DISPOSITION OF A VITA ENERGY
On June 30, 2007, A vista Energy and A vista Energy Canada completed the sale of substatially all of their contracts and ongoing
operatons 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.
Cerin assets of A vista Energy with a net book value of approximately $30 millon were not sold or liquidated. These primarly
include natual gas storae and deferred income ta assets. The Company expects that the natul gas storage wil ultimately be
trsferred to Avista Corp., subject to futue regulatory approval. There is also a power purchase agreement, related to a 270 MW
natu gas-fid combined cycle combustion tubine plant located in Idaho (Lancaster Plant). The Lancaster Plant is owned by an
unelated thd-par and all of the outut from the plant is contracted to Avista Turbine Power, Inc. (an afliate of Avista Energy)
though 2026. The majority of the rights and obligations of the power purchase agreement were conveyed to Shell Energy though the
end of 2009. The rights and obligations of power purchase ageement were conveyed to Avista Corp. in Janua 2010.
In connection with the transacion, on June 30, 2007, Avista Energy and its affliates entered into an Indemnfication Agreement with
Shell Energy and its afliates. Under the Indemnification Agreement, A vista Energy and Shell Energy each agree to provide
indemnification of the other and the other's affliates for certin events and matters described in the purchase and sale agreement and
certin other tranaction agreements. Such events and matters include, but are not limited to, the refud proceedings arsing out of the
western energy markets in 2000 and 2001 (see Note 22), existig litigation, ta liabilties, and mattrs related to natual gas storage
rights. In general, such indemnification is not requied unless and until a par's clai exceed $150,000 and is liited to an aggegate
amount of$30 millon and a term of thee years (except for agreements or tranactions with term longer th thee year). These
limtaions do not apply to cert third par claim.
Avista Energy's obligations under the Indemnfication Agreement are guaranteed by Avista Capita pursuat to a Guarty dated JuneI FERC FORM NO. 213-Q (REV 12-07) 122.6 I
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 0411612010 2009/04
Not to Financial Statements
30,2007. Ths Guaanty is limited to an aggregate amount of$30 millon plus certin fees and expenses. The Guarty wil termate
Apnl 30, 2011 except for clais made pnor to tennination. As of Febru 26,2010, neither par has made any claim under the
Indemnification Agreement or Guaanty.
NOTE 4. ADVANTAGE IQ ACQUISITIONS
Effective July 2, 2008, Advantae IQ completed the acquisition of Cadence Network, a pnvately held, Cincinti-based energy and
expense management company. As consideration, the owners of Cadence Network received a 25 percent ownership interest in
Advantage IQ. The total value of the transaction was $37 milion.
The acquisition of Cadence Network was fuded with the issuance of Advantage IQ common stock. Under the transaction agreement,
the previous owners of Cadence Network can exercise a right to have their shares of Advantage IQ common stock redeemed durg
July 201 lor July 2012 if Advantage IQ is not liquidad though either an initial public offerig or sale of the business to a thd par.
Their redemption nghts expire July 31, 2012. The redemption pnce would be determed based on the fai market value of
Advantae IQ at the tie of the redemption election as detennined by certin independent pares.
On Augut 31,2009, Advantage IQ acquired substatially all of the assets and liabilties ofEcos Consultig, Inc. (Ecos), a Portand,
Oregon-based energy effciency solutions provider for $8.9 milion. Under the tenn of the traction, the assets and liabilties of
Ecos were acquired by a wholly owned subsidiar of Advantage IQ.
NOTE 5. ACCOUNS RECEIVABLE SALE
A vista Receivables Corporation (ARC) is a wholly owned, banptcy-remote subsidiar of Avist Corp. fonned for the purose of
acquirg or purchasing interest in certin accounts receivable, both biled and unbiled, of the Company. Avista Corp., ARC and a
third-par fiancial institution are paries to a Receivables Purchase Agreeent, and on March 13,2009 that agreement was amended
to, among other things, extend the tennination date to Marh 12,2010. Under the Receivables Purchase Agreement, ARC can sell
without recoure, and such ficial institution will purchae, on a revolving basis, up to $85.0 millon of those receivables. ARC is
obligated to pay fees that approximate the purchaser's cost of issuing commercial paper equa in value to the interests in receivables
sold. The amount of such fees is included in other operatig expenses of A vista Corp. The Receivables Puchae Agreement has
fiancial covenants, which are substantially the same as those of A vist Corp.'s committd lines of credit (see Note 12). Based on
calculations of eligible receivables, ARC had the abilty to sell up to $85.0 millon of receivables under this revolvig agreement at
each of December 31, 2009 and December 31, 2008. There were not any accounts receivable sold under this revolvig agreement as
of December 31, 2009 and $17.0 milion were sold as of December 31,2008.
NOTE 6. DERIATIVS AN RISK MANAGEMENT
Energy Commodit Derivatives
A vista Corp. is exposed to maret risks relating to changes in eleccity and natu gas commodity pnces and certin other fuel prices.
Market risk is, in general, the rik of fluctuation in the market pnce of the commodity being traded and is influenced primarly by
supply and demand. Market rik includes the fluctution in the market price of associated denvative commodity instrents. Market
nsk may also be inuenced by market paricipants' nonperfonnance of their contrctu obligations and commitments, which afects
the supply of, or demand for, the commodity. Avista Corp. utlizes denvative instrents, such as forwards, futues, swaps and
options in order to manage the varous nsks relati to these commodity pnce exposures. The Company has an energy resources risk
policy and control procedures to manage these nsks. The Company's Risk Management Committe establishes the Company's energy
resources nsk policy and monitors compliance. The Risk Management Committee is comprised of cert Company offcers and other
management. The Audit Committee of the Company's Board of Directors penodically reviews aíd discusses nsk assessment and risk
management policies, including the Company's matenal fiancial and accounting nsk exposures and the steps manement has
underten to control them.
As par of its resource procurement and management operations in the electc business, A vist Corp. engages in an ongoing process
of resource optimization, which involves the economic selection from available energy resources to serve Avista Corp.'s load
obligations and the use of these resources to captue available economic value. Avista Corp. sells and purchases wholesale electc
capacity and energy and fuel as par of the process of acquirg and balancing resources to serve its load obligations. These
transactions range from tenns of one hour up to multiple years. A vista Corp. makes contiuig projections of:
. electrc loads at varous points in time (ranging from one hour to multiple years) based on, among other things, estiates of
customer usage and weather, historical data and contract tenns, and
I FERC FORM NO. 2/3-0 (RE 12-07)122.7
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
1(2) . A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
· resource availabilty at these points in time based on, among other things, fuel choices and fuel markets, estimates of
streamows, availabilty of generating units, historic and forward market inormation, contract term, and experience.
. On the basis of these projections, Avista Corp. makes purchaes and sales of electrc capacity and energy and fuel to match expectd
resources to expected electric load requiements. Resource optition involves generaing plant dispatch and schedulig available
resources and alo includes tranactions such as:
. purchasing fuel for generation,
· when economical, selling fuel and substituting wholesale electric purchases, and
· other wholesale tranactions to captue the value of generation and trmission resources.
Avista Corp.'s optiiztion process includes entenng into hedging tractions to manage risks.
As par of its resource procurement and management operations in the natual gas business, A vista Corp. makes continuing projections
of its natul gas loads and assesses available natual gas resources. Forward natul gas contracts are tyically for monthy delivery
periods. However, daily varations in natual gas demand can be signficantly different than monthy demand projections. On the
basis of these projections, Avista Corp. plan and executes a series of transactions to hedge a significant portion of its projected
natual gas requirements though forward market transactions and derivative intrents. These tranactions may extend as much as
four natual gas operating years (November though October) into the futue. Avista Corp. also leaves a significant portion of its gas
supply requirements unedged for purchase in short-term and spot markets. Natual gas resource optimization activities include:
· wholesale market sales of surlus gas supplies,
· purchases and sales of natul gas to use underutilizd pipeline capacity, and
· sales of excess natul gas storage capacity.
Derivatives are recorded as either assets or liabilties on the balance sheet measured at estimated fair value. In certain defied
conditions, a derivative may be specifically designated as a hedge for a paricular exposure. The accounting for derivatives depends
on the intended use of the derivatives and the resultig designation.
The WUTC and the IPUC issued acountig orders autorig Avista Corp. to offet commodity derivative assets or liabilties with a
reguatory asset or liabilty. Ths accountig treatment is intended to defer the recognition of mak- to-market gain and losses on
energy commodity tranactions until the period of settement. The orders provide for A vist Corp. to not recogn the unealiz gai
or loss on utlity derivative commodity instrents in the Statements of Income. Realizd gains or losses are recognd in the period
of settement, subject to approval for recovery though retail rates. Realizd gai and losses, subject to reguatory approval result in
adjustments to retail rates though purchased gas cost adjustments, the Energy Recovery Mechansm (ERM in Washington, the Power
Cost Adjustment (PCA) mechanism in Idaho, and periodic general rates cases.
Substatially all forward contracts to purchae or sell power and natul gas are recorded as assets or liabilties at market value with an
offsettg reguatory asset or liabilty. Contract that are not considered derivatives under ASC 815 are generally accounted for on the
accrul basis unti they are settled or realized, uhess there is a decline in the fair value of the contrct that is detenned to be other
than tempora.
The followig table presents the underlyig energy commodity derivative volumes as of December 31, 2009 that are expecte to settle
in each respective year (in thousands ofMW and mmTUs):
Puchases
Year
2010
2011
2012
2013
2014
Thereafter
Electrc Derivatives
Physical Financial
MWH MWH
760 568
401 138
366
368
366
1,694
Gas Derivàtives
Physical Financial
mmTUs mmTUs
26,699 1,210
10,477
4,128
1,575
Gas Derivatives
Physical Financial
mmTUs mmTUs
5,051
467
Foreign Currency Exchange Contracts
A significant portion of Avista Corp.'s natual gas supply (includig fuel for power generation) is obtaed from Canadan sources.
I FERC FORM NO. 2/3-0 (REV 12-07) 122.8
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Onginal (Mo, Da, Yr)
(2) A Resubmission 04/1612010 2009/04
Nots to Financial Statements
Most of those tractions are executed in U.S. dollar, which avoids foreign curency nsk. A portion of Avista Corp.'s short-te
natual gas tranactions and long-tenn Canadian trsporton contrts are commtted based on Canadian curency pnces and settled
within six days with U.S. dollars. In early 2009, Avista Corp. implemented a process to economically hedge a porton of the foreign
curncy rik by purchasing Canadian curency when such commodity tractions are initiated. This nsk has not had a matenal effect
on the Company's fiancial condition, results of opertions or cash flows and these differences in cost related to curency fluctuations
were included with natual gas supply costs for ratemaking. As of December 31, 2009, the Company had a curent denvative liabilty
for foreign curency hedges of less than $0.1 milion. As of December 31, 2009, the Company had entered into 24 Canadian curency
forward contracts with a notional amount of$10.2 milion ($10.6 milion Canadian).
Interest Rate Swap Agreements
A vista Corp. enters into forward-starg interest rate swap agreements to manage the nsk associated with changes in interest rates and
the impact on futue interest payments. These interest rate swap agreements relate to the interest payments for anticipated debt
issuaces. These interest rate swap agreements are considered economic hedges agaist fluctuations in fue cash flows associated
with chages in interest rates. In September 2009, the Company cash settled interest rate swap contracts (notional amount of $200.0
milion) and received a tota of$10.8 millon. The interest rate swap contrcts were settled concurently with the issuace of$250.0
milion of First Mortage Bonds (see Note 13). These settlements of the interest rate swaps were deferred as a regulatory liabilty
(included as par oflong-tenn debt) and wil be amort as a component of interest expense over the life of the associated debt issued
in accordace with regulatory accountig pratices. The Company did not have any interest rate swap contracts outsding as of
December 31, 2009.
Derivative Instrments Summry
The followig tale presents the fair values and locations of denvative intrents recorded on the Balance Sheet as of December 31,
2009 (in thousands):
Fair Value
Net Asset
Denvative Balance Sheet Loation Asset Liabilty (Liabilty)
Foreign curency contracts Denvative intrent liabilties
hedges $$(50)$(50)
Commodity contracts Denvative instrent assets
curent 8,976 (1,219)7,757
Commodity contrts Long-tenn derivative instrent
assets 53,765 (8,282)45,483
Commodity contracts Denvative instrent liabilties
curent 5,783 (21,870)(16,087)
Commodity contracts Long-tenn denvative instrent
liabilties ~(3.521)(2,871)
Total dervative instrents recorded on the balance sheet $69,174 $(34,242)$34,232
Exosure to Demands for CoUateral
The Company's denvative contr often requie collatera (in the fonn of cash or letters of credit) or other credit enhancements, or
reductions or termations of a porton of the contract thoug cash settlement, in the event of a downgrade in the Company's credit
raings or adverse changes in maet pnces. In penods ofpnce volatilty, the level of exposure can chane significantly. As a result,
sudden and signficant demands may be made agaist the Company's credit facilties and cash. The Company actively monitors the
exposure to possible collateral calls and taes steps to minimize capital requirements.
Cert of the Company's denvative instrents conta provisions that require the Company to maintain an investment grade credit
ratig from the major credit ratig agencies. If the Company's credit ratigs were to fall below investment grade, it would be in
violation of these provisions, and the counterpares to the denvative instrents could request imediate payment or demand
imediate and ongoing collateraiztion on denvative intrents in net liabilty positions. The aggegate fai value of all denvative
intrents with credit-risk-related contigent featues that are in a liabilty position as of December 3 1,2009 was $11.8 milion. If
the credit-risk-related contigent featues underlying these agreements were trggered on December 3 I, 2009, the Company would be
required to post $3.4 milion of collateral to its counterpares.
Credit Risk
Credit nsk relates to the otential losses that the Com an
FERC FORM NO. 213-Q (REV 12-07)
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) XAn Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
contractual obligations to deliver energy or make fiancial settlements. The Company often extends credit to counterpares and
customers and is exposed to the risk that it may not be able to collect amounts owed to the Company. Changes in market prices may
dramatically alter the siz of credit risk with counterparies, even when conservative credit limits are estblished.
Credit risk includes potential counterpar default due to circumstaces:
· relating diectly to it,
. caused by maket price chages, and
· relating to other maket parcipants tht have a direct or indirect relationship with such counterpar.
Should a counterpar, customer or supplier fail to perfonn, the Company may be required to honor the underlying commitment or to
replace existing contracts with contrcts at then-curent market prices. The Company seeks to mitigate credit risk by:
. enterig into bilateral contrcts that specifY credit tenns and protections againt default,
· applyig credit limts and duration criteria to existig and prospective counterparies,
. actively monitorig curent credit exposures, and
. conducting some of its transactions on exchanges with clearg argements that essentially eliminte counterpar default
risk.
These credit policies include an evaluation of the fiancial condition and credit ratings of counterparies, collateral requirements or
other credit enhancements, such as letters of credit or parent company guantees. The Company also uses stadadized agreements
tht allow for the netting or offsetting of positive and negative exposures associatd with a single counterpar or affliated group.
The Company has concentrations of suppliers and customers in the electrc and natu gas industres includig:
. electrc utilties,
. electric generators and tranmission providers,
. natual gas producers and pipelines,
. ficial intitutions, and
. energy maketing and trding 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 geogrphic locaton may impact the Company's overa
exposure to credit risk, either positively or negatively, because the counterpares may be simarly afectd by changes in conditions.
As is common industr practice, A vista Corp. maintains magin ageements with certin counterpares. Margi calls are trggered
when exposures exceed predetennined contractual 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 contractul limts. Margi calls are
periodicaly made and/or received by A vista Corp. Negotiatig for collateral in the fonn of cash, letters of credit, or perfonnce
guantees is common industr practice.
Cash deposits from counterparies totaled $3.2 milion as of December 3 1,2009 and $0.2 millon as of December 3 1,2008. These
fuds were held by Avista Corp. to mitigate the potential impact of counterpar default risk. These amounts are subject to rebn if
conditions wart because of continuing portolio value fluctutions with those pares or substitution of non-cash collateraL.
NOTE 7. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a i 5 percent ownership interest in a twin-unit coal-fied generatig facilty, the Colstrp Generatig Project
(Colstrp) located in southeastern Montaa, and provides fiancing for its ownership interest in the project. The Company's share of
related fuel costs as well as operating expenses for plant in servce are included in the corresponding accounts in the Statements of
Income. The Company's share of utilty plant in service for Colstrp was $334.8 millon and accumulated depreciaion was $209.6
milion as of December 3 1,2009. The Company's share of utility plant in servce for Colstrp was $330.9 millon and accumulated
depreciation was $204.0 milion as of December 31, 2008.
NOTE 8. ASSET RETIRMENT OBLIGATIONS
The Company records the fai value of a liabilty for an asset retiement obligaton in the period in which it is incured. When the
liabilty is initially recorded, the associated costs of the asset retirement obligation are capitalized as par of the carg amount of the
I FERC FORM NO. 2/3-0 (REV 12-07)122.10
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04161010 2009/04
Not to Financial Statements
related long-lived asset. The liabilty is accreted to its present value each period and the related capitalize costs are depreciated over
the useful life of the related asset. Upon retirement of the asset, the Company either settes the retiement obligation for its recorded
amount or incurs a gain or loss. The Company records reguatory assets and liabilties for the difference between asset retiement costs
curently recovered in rates and asset retirement obligations recorded since asset retirement 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 retirement obligations to:
. restore ponds at Colstrp,
. cap a landfill at the Kettle Falls Plant,
. remove plant and restore the land at the Coyote Springs 2 site at the termination of the land lease,
. remove asbestos at the corporate offce building, and
. dispose of PCBs in cerin transformers.
Due to an inabilty to estimate a range of settlement dates, the Company canot estiate a liabilty for the:
. removal and diposal of cert tranmission and ditrbution assets, and
. abandonment and decommssionig of certin hydroelectc generation and natual gas storage facilties.
The followig table documents the changes in the Company's asset retiement obligation durg the years ended December 31 (dollar
in thousands):
Asset retiement obligation at begining of year
New liabilty recognizd
Liabilty adjustent due to revision in estimated cash flows
Liabilty settled
Accretion expense
Asset retiement obligation at end of year
2009
$4,208
2008
$3,990
(499)
262am
(29)
247
WQ
NOTE 9. PENSION PLANS AN OTHR POSTRTIRMENT BENEFI PLANS
The Company has a defied benefit pension plan coverg substatially all regular full-tie employees. Individual benefits under this
plan are based upon the employee's years of service and average compensation as specified in the plan. The Company's fuding
policy is to contrbute at least the minimum amounts that are required to be fuded under the Employee Retiement Income Securty
Act, but not more than the maximum amounts that are curently deductible for income ta puroses. The Company contrbuted $48
milion in cash to the pension plan in 2009 and $28 millon in 2008. The Company expects to contrbute $2 I milion to the pension
plan in 2010.
The Company also has a Supplementa Executive Retiement Plan (SERP) that 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 Internal Revenue Code of 1986 and the deferral of salar under deferred
compensation plan. The liabilty and expense for ths plan are included as pension benefits in the tables included in this Note.
The Company expects tht benefit payments under the pension plan and the SERP will tota $18.6 milion in 2010, $19.4 millon in
2011, $20.5 millon in 2012, $21.7 milion in 2013 and $23.0 millon in 2014. For the ensuig five yeas (2015 though 2019), the
Company expects that benefit payments under the pension plan and the SERP will total $136.3 milion.
The expectd long-term rate of retu on plan assets is based on past performance and economic forecasts for the tyes of investments
held by the plan. In selectig a discount rate, the Company considers yield rates for highly rated corporate bond portolios with
matuties similar to that of the expected term of pension benefits.
In 2009, the Company reviewed the mortlity table utilzed in the actuaral calculations. The Company determed that the RP-2000
combined healthy mortlity tables for males and females should be replaced with the RP-2000 combined healthy mortity tables for
males and females projected to 2010 using scale AA. The change resulted in an increase of$6.6 milion to the pension benefit
obligation as of December 31, 2009.
In 2008, the rates at which parcipants are assumed to retire by age were analyzd based upon historical trends and futûe projections.
I FERC FORM NO. 213-Q (REV 12-07) 122.11
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) A An Original (Mo, Da, Yr)i2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
The Company revised the rates to assume that a greater percentage of parcipants would retire between the ages of 55 and 65. The
assumed rates were revised to range from 5 percent to 40 percent and 100 percent at age 65. The previous ras ranged from 2 percent
to 30 percent and 100 percent at age 65. The change resulted in an increase of$l 1.0 millon to the pension benefit obligation as of
December 31, 2008.
The Company provides certin health care and life inurance benefits for substatially al of its retied employees. The Company
accrues the estiated cost of postretiement benefit obligations durg the years that employees provide serices. The Company
electd to amort the tranition obligation of $34.5 millon over a period of twenty year, beging in 1993.
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' year of
service and the ending salar. The liabilty and expense of this 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 after retiement.
Under the plan, an executive offcer's designated beneficiar will receive a payment equal to twice the executive offcer's anua base
salar at the tie of death (or if death occurs afer retiement, a payment equal to twice the executive offcer's tota anual pension
benefit). The liabilty and expense for ths plan are included as other postretiement benefits.
The Company expects tht benefit payments under other postretirement benefit plans wil be $4.1 milion in 2010, $3.9 milion in
2011, $3.7 milion in 2012, $3.6 milion in 2013 and $3.5 milion in 2014. For the ensuing five year (2015 though 2019), the
Company expects that benefit payments under other postretiement benefit plans wil total $16.4 millon. The Company expects to
contrbute $4.1 milion to other postretiement benefit plan in 2010, representing expected benefit payments to be paid durg the
year.
The Company uses a December 31 measurement dae for its pension and other postretiment benefit plan. The followig table sets
fort the pension and other postretiement benefit plan disclosures as of December 31, 2009 and 2008 and the components of net
penodc benefit costs for the years ended December 31, 2009 and 2008 (dollars in thousands):
Pension Other
2009 2008 2009 2008
Change in benefit obliation:
Benefit obligation as of begin of year $353,572 $323,090 $38,953 $34,352
Service cost 10,496 10,209 803 772
Interest cost 21,770 20,812 2,364 2,371
Actual loss 9,610 17,041 1,676 5,61l
Trafer of accrued vacation 98 365
Benefits paid 07,213)(17,580)(4.334)(4,518)
Benefit obligation as of end of year $378,235 $353572 $39,560 $38,953
Change in plan assets:
Fai value of plan assets as of begiing of year $190,637 $242,561 $16,048 $22,718
Actul retu on plan assets 50,053 (63,575)4,346 (6,670)Employer contributions 48,000 28,000
Benefits paid 05,958)06,349)----Fai value of plan assets as of end of year $272,732 $190,637 $20.394 $16,048
Funded statu $(105,503)$(162,935)$(19,166)$(22,905)Unrecognd net actuarial loss 126,926 160,280 15,772 18,357
Unrecognizd pnor service cost 1,790 2,444 (1,303)(1,452)Unrecognizd net tranition obligation 1.16 2,021
Prepaid (accrued) benefit cost 23,213 (21l)(3,181)(3,979)Additional liabilty 028,716)062,724)05,985)08.926)
Accrued benefit liabilty $(J05,503)$()62935)$(J9166)$(22,905)
Accumulated pension benefit obligation $294,649 $307.413
Accumulated postretiement benefit obligation:
For retiees .$18,377 $18,821
For fully eligible employees $9,290 $8,903
I FERC FORM NO. 213-Q (REV 12-07)122.12
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/Q4
Nots to Financial Statements
For other parcipants $11,893 $11,229
Included in accumulated comprehensive loss (income) (net of tax):
Unrecognd net tranition obligation $$$985 $1,313
Unrecognizd prior servce cost 1,163 1,589 (847)(943)
Unrecognizd net actual loss 82,502 104,182 10,252 11,932
Total 83,665 105,771 10,390 12,302
Less regulatory asset (80,041)(98,850)01'664)03,131)
Accuulated other comprehensive loss (income)~~$(1,274)$ (829)
Weighted average assumptions as of December 31:
Discount rate for benefit obligation 6.29%6.25%6.00%6,25%
Discount rate for anual expense 6.25%6.34%6.25%6.20%
Expected long-term retu on plan assets 8.50%8.50%8.50%8.50%
Rate of compensation increase 4.65%4.72%
Medical cost trend pre-age 65 - initial 8.50%9.00%
Medical cost trend pre-age 65 - ultiate 5.00%5.00%
Ultiate medical cost trend year pre-age 65 2017 2017
Medical cost trend post-age 65 - initial 8.50%9.00%
Medical cost trend post-age 65 - ultimate 6.00%6.00%
Ultite medical cost trend year post-age 65 2015 2015
Components of net periodic benefit cost:
Servce cost $10,496 $10,209 $803 $ 772
Interest cost 21,770 20,812 2,364 2,371
Expected retu on plan assets (17,612)(21,138)(1,364)(1,931)
Trasition obligation recognition 505 505
Amortzation of prior serce cost 654 654 (149)(149)
Net loss recognition 10,539 3,345 1,279 575
Net periodic benefit cost $25847 $13,882 WJ w.
Plan Assets
The Finance Committee of the Company's Board of Directors:
. establishes investment policies, objectives and sttegies that seek an appropriate retu for the pension plan and other
postretirement plan, and
. reviews and approves changes to the investment and fudin policies.
The Company has contracted with investment consultats who are responsible for manging/monitorig the individual investment
managers. The investment managers' performance and related individua fud performance is periodicany reviewed by an internal
benefits commttee and by the Finance Committee to monitor compliance with investment policy objectives and sttegies.
Pension plan assets are invested priarly in marketable debt and equity secuties. Pension plan asset may also be invested in real
estate, absolute retu, ventue capitaprivate equity and commodity fuds. In seekig to obtain the desired retu to fud the pension
plan, the investment consultat recommends alocation pecentaes by asset classes. These recommendations are reviewed by the
inteal benefi commttee, which then recommends their adoption by the Finance Committe. The Finance Committee has
established taget investment allocation percentages by asset classes as of December 3 1,2009 and 2008 as indicated in the table below:
Equity securties
Debt securties
Real estate
Absolute retu
Oter
2009
51%
31%
5%
10%
3%
2008
50%
30%
5%
12%
3%
The maket-related value of pension plan assets invested in debt and equity securties was based priarily on fair value (market
prices). The fair value of investment securties traded on a national securties exchage is determined based on the last reported sales
price; securities trded in the over-the-counter market are valued at the last reported bid price. Investment securties for which market
I FERC FORM NO. 2/3- (REV 12-07) 122.13
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) 2ÇAn Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009104
Notes to Financial Statements
prices are not readily available or for which maket prices do not represent the value at the time of pricing, are fair-valued by the
investment manager based upon other inputs (including valuaions of securities that are comparle in coupon, rag, matuity and
industr). Investments in common/collective trt fuds are presented at estimted fair value, which is determed based on the unt
value of the fud. Unit value is detennined by an independent tree, which sponsors the fud, by dividing the fud's net assets by its
units outstading at the valuation date. The fair value of the closely held investents and parership interests is based upon the
allocated share of the fai value of the underlying assets asi well as the allocated share of the undistrbuted profits and losses, includig
realizd and unealized gai and losses.
The market-related value of pension plan assets invested in real estate was determed by the investment maager based on thee basic
approaches:
· curent cost of reproducing a propert less deterioration and fuctional economic obsolescence,
· capitaliztion of the propert's net earings power, and
· value indicated by recent sales of comparble propertes in the market.
The maket-related value of pension plan assets was determed as of December 31, 2009 and 2008.
The following table discloses by level within the fair value hierarchy (refer to Note 18 for a description of the fai value hierachy) of
the pension plan's assets measured and reported as of December 31,2009 at fair value (dollars in thousands):
Levell Level 2 Level 3 Total$ 19 $ $ $ 19Cash equivalents
Mutul fuds:
Fixed income securties
U.S. equity securities
Interntional equity securities
Absolute retu (1)
Commodities (2)
Common/collective trsts:
Fixed income securties
U.S. equity securties
Absolute retu (1)
Real estate
Parership/closely held investments:
Absolute retu (1)
Private equity fuds (3)
Total
70,924
87,562
46,548
11,671
5,870
14,840
11,070
$222,524 $25,910
70,924
87,562
46,548
11,671
5,870
844
6,029
15,794
1.561
$24228
_ 14,840
11,070
844
6,029
15,794
1.561
$272,732
(1) Ths category invest in multiple strategies to diversif risk and reduce volatilty. The stregies include: (a) event drven,
relative value, convertible, and fied income arbitrage, (b) distressed investments, (c) long/short equity and fied income and
(d) market neutr strtegies.
(2) The fud priarly invests in derivatives lined to commodity indices to gain exposure to the commodity markets. The fud
manager fully collateralizs these positions with debt securties.
(3) This category includes several private equity fuds that invest priily in U.S. companies.
The table below discloses the sumar of changes in the fair value of the pension plan's Level 3 assets for the year ended December
31,2009 (dollars in thousands):
Common/collective trts
Balance, as of Janua I, 2009
Realizd gais (losses)
Unrealizd gain (losses)
Purchases (sales), net
Balance, as of December 31, 2009
Absoluteretu
$2,351
(415)
(21)
(1,070
LW
Real
estate
$11,987
520
(4,310)
(2,168)
$ 6029
Parership/closely held investments
Absolute Private equity
retu fuds
$ 13,983 $1,316
31,811 223- --$15,794 ~
I FERC FORM NO. 213-Q (REV 12-07)122.14
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/1612010 2009/04
Note to Financial Statements
The market-related value of other postretiement plan assets invested in debt and equity securties was based priarly on fair value
(maret prices). The fair value of investment securities tred on a national securties exchange is determined based on the last
reported sales price; securties trded in the over-the-counter market are valued at the last reported bid price. Investment securties for
which market prices are not readily available or for which market prices do not represent the value at the time of pricing, are
fair-valued by the investment manager based upon other input (including valuations of securties that are comparable in coupon,
rating, matuity and industr).
The market-related value of other postetiement plan assets was determined as of December 31, 2009 and 2008.
The following table discloses by level within the fair value hierachy (refer to Note 18 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reportd as of December 31, 2009 at fair value (dollars in thousands):
Levell Level 2 Level 3 Total$ 96 $ $ $ 96Cash equivalents
Mutul fuds:
Debt securties
U.S. equity securties
International equity securties
Debt secuties
U.S. equity securties
International equity securties
Tota
7,742
5,927
5,077
25
1,456--
$20394 $$
7,742
5,927
5,077
25
1,456--
$20394
Assumed health care cost trend rates have a signficant effect on the amounts reported for the health care plan. A
one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretiement
benefit obligation as of December 31, 2009 by $2.1 milion and the servce and interest cost by $0.2 milion. 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, 2009 by $ 1.9 milion and the service and interest cost by $0.2 milion.
The Company has a salar deferrl 401(k) plan that is a defied contrbution plan and covers substatially all employees. Employees
can make contrbutions to their respective accounts in the plan on a pre-ta basis up to the maxum amount perttd by law. The
Company matches a porton of the salar deferred by each parcipant according to the schedule in the plan. Employer matchig
contrbutions were $4.4 milion in 2009 and $4.3 milion in 2008.
The Company has an Executive Deferr Plan. Ths plan allows executive offcers and other key employees the opportity to defer
until the earlier of their retiement, terination, disabilty or death, up to 75 percent of their base salar and/or up to 100 percent of
their incentive payments. Deferred compensation fuds are held by the Company in a Rabbi Trut. At December 31,2009 and 2008,
there were deferred compensation assets of$9.4 milion and $8.8 milion included in other special fuds and corresponding deferred
compensation liabilties of$9.4 millon and $8.8 milion included in other deferred credits on the Balance Sheets.
NOTE 10. ACCOUNTING FOR INCOME TAXES
Deferred income taes reflect the net ta effects of temporar differences between the caring amounts of assets and liabilties for
fmadal reportg puroses and the amounts used for income ta puroses and ta credit carorwards.
As of December 31, 2009, the Company ha $ 1 1.6 millon of state ta credit carorwards. State ta credits expire from 2015 to
2021. The Company recognizes the effect of ste ta credits generated frm utilty plant as they are utilized.
The realization of deferred income ta assets is dependent upon the abilty to generate table income in futue periods. The Company
evaluated available evidence supportg the realiztion of its deferr income ta assets and determined it is more likely than not that
deferred income ta assets will be realized.
The Company and its eligible subsidiares file consolidated federal income ta retus. The Company also fies state income ta
retu in certin jurisdictons, including Idaho, Oregon and Montaa. Subsidiares are charged or credited with the ta effects of their
operations on a stad-alone basis. The Internal Revenue Service (IR) has completed its examination of all ta years though 2007
and all issues were resolved related to these years. The IRS has not exained the Company's 2008 federal income ta retu. Ths
examination could result in a change in the liabilty for uncertin ta positions. However, an estiate of the range of any such possible
I FERC FORM NO. 2/3-0 (REV 12-07) 122.15 I
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)'2) . A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
change canot be made at this time. The Companydoes not believe that any open ta years for state income taes could result in any
adjustments that would be signficant to the fiancial statements.
In Augut 2005, the Treasur Deparent issued reguations and the IRS issued a revenue rulin that afects the ta treatment by
A vista Corp. of cert indirect overhead expenses. A vista Corp. had previously made a ta election to curently deduct cert
indiect overhead costs, staing with the 2002 ta retu that were capitad for fiancial accountig puroses. This election
allowed A vista Corp. to tae ta deductions resultig in a tota reduction of approximately $40 milion in curent ta liabilties for
2002, 2003 and 2004. These curent ta benefits were deferred on the balance sheet and did not afect net income.
On the basis of the revenue ruling and related regulations, the IR disallowed the ta deduction of indiect overhead expenses durg
their examation of the Company's 2001, 2002 and 2003 federa income ta retus. The Company believed that the ta deductions
claimed on ta retus were appropriate based on the applicable statutes and regulations in effect at the time. A vista Corp.
appealed the proposed IRS adjustment in Apnl 2006. The Company repaid a portion of the previous ta deductions though ta
payments in 2005, 2006 and 2008.
On September 10, 2008, the Company entered into a Settlement Agreement with the Appeals Division of the IRS that resolved all
items noted durg their audit of the Company's 2001 thoug 2003 ta years, including, among other things, indirect overhead
expenses. The agreement was reviewed and approved by the Joint Committee on Taxation, and a settlement payment was received in
December 2008. The onginal IRS disallowance and the Company's appeal of the indirect overhead issue caused a delay in associated
ta refuds for net operatig losses tht were cared back to several earlier year. The fial settement with the IRS freed up the
refud years and set the amount owed for the 2001-2003 ta years. The net result was a refud to the Company of $ 14.7 milion, plus
interest of$5.7 millon.
The Company had net regulatory assets of$97.9 millon at December 31, 2009 and $1 15.0 milion at December 31, 2008 related to the
probable recovery of certin deferred income ta liabilties from customers though futue rates.
NOTE i 1. ENERGY PURCHASE CONTRACTS
A vista Corp. has contracts for the purchase of ful for theimal generaton, natu gas for resale and varous agreements for the
purchase or exchane of electrc energy with other entities. The termon dates of the contr range from one month to the year
2055. Total expenses for power purchaed, natual gas purchaed, fuel for generation and other fuel costs, which are included in
operation expenses in the Statements of Income, were $704.9 milion in 2009 and $951.4 millon in 2008. The followig tale details
A vista Corp.' s futue contractual commitments for power resources (including tranmission contract) and natul gas resoures
(including transporttion contrcts) (dollars in thousands):
Power resources
Natul gas resources
Tota
2010
$220,286
146,321
$366,6Q7
2011
$133,287
93,609
$226.896
2012
$104,716
62.084
$166,8QO
2013
$ 79,543
44.375
$123918
2014
$70,605
44.424
$115,029
Thereafter
$485,980
431,904
$917,884
Total
$1,094,417
822,717
$1,917,134
These energy purchae contracts were entered into as par of Avista Corp.'s obligation to serve its retail electrc and natul gas
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 mechaisms.
In addition, A vista Corp. has operationa agreements, settlements and other contractul obligations for its generation, trmission and
distrbution facilties. The expenses associated with these agreements are reflected as operation expenses and matenance expenes in
the Statements of Income. The followig table detals futue contract commitments for these agreements (dollar in thousands):
Contrctul obligations
2010
$46,773
2011
$55 Q84
2012
$48.457
2013
$52181
2014
$53,211
Thereafter
$573,643
Tota
$829,349
A vista Corp. ha fixed contracts with certin Public Utility Districts (PUD) to purchae portons of the output of certin generating
facilties. Although A vita Corp. has no investment in the PUD generating facilties, the fied contract obligate A vist Corp. to pay
certin mium amounts (based in par on the debt service requirements of the PUD) whether or not the facilties are operatig. The
cost of power obtaed under the contracts, including payments made when a failty is not operatig, is included in operation expenses
in the Statements of Income. Expenses under these PUD contracts were $ 12.6 millon in 2009 and $ 14.9 millon in 2008. Inoimation
I FERC FORM NO. 213-Q (REV 12-07) 122.16
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 041612010 200/04
Not to FInancial Statements
as of December 31, 2009 perining to these PUD contrcts is sumar in the followig table (dollar in thousands):
Company's Curent Share of
Debt Expir-
Kilowatt Anual Servce Bonds tion
Output Capabilty Costs (J)Costs (I)Outstadin Date
Chelan County PUD:
Rocky Reach Project 2.9%37,000 $ 1,658 $883 $ 909 2011
Douglas County PUD:
Wells Project 3.5%30,000 1,609 698 3,728 2018
Grant County PUD:
Prest Rapids Project 3.3%31,500 4,377 726 7,854 2055
Wanapum Project (2)7.4%76,800 4,989 2,394 13,554 2055
Totals 175300 $12633 ~$26045
(1) The anual costs wil change in proporton to the percentage of output allocated to A vista Corp. in a paricular year. Amounts
represent the opertig costs for the year 2009. Debt servce costs are included in anual costs.
(2) A previous contrt expired on October 31, 2009. A new contrt was completed in 2001 with an expiration date of2055.
Beging in November 2009, the Company's rights to the output were reduced from 8.2 percent to 3.3 percent. Under the new
contract the Company has the rights to the output but not the obligation to tae the output. In September of each year the
Company is requied to determine if it wil tae the output for the subsequent year.
The estimated aggegate amounts of required minimum payments (Avita Corp.'s share of existig debt servce costs) under these PUD
contract are as follows (dollar in thousands):
Minimum payments
2010~2011~2012~2013~2014~Thereafer
$30777
Total
$44 052
In addition, Avista Corp. will be required to pay its proportonate share of the varable opertig expenses of these projects.
NOTE 12. NOTES PAYABLE
A vista Corp. has a committed line of credit ageement with varous ban in the total amount of $320.0 millon with an expiraton date
of April 5, 2011. Under the credit agreement, the Company can borrow or request the issuance of letters of credit in any combintion
up to $320.0 milion. Total lettrs of credit outding were $28.4 milion as of December 31,2009 and $24.3 milion as of
December 31,2008. The committed line of credit is secured by $320.0 milion of non-tranferable First Mortgage Bonds of the
Company issued to the agent ban that would only become due and payable in the event, and then only to the extnt, that the Company
defaults on its obligations under the committed line of credit.
Additionally, the Company has a commtted line of credit agreement with varous ban in the total amount of $75.0 milion with an
expirtion date of April 5, 201 i. A vista Corp. may elect to increase the committd line of credit by up to $25.0 milion under the same
agrement. The commtted line of credit is securd by $75.0 millon of non-trferable Firt Mortgage Bonds of the Company issued
to the agent ban that would only become due and payable in the event, and then only to the extnt, that the Company defaults on its
obligations under the commtted line of credit.
The committed line of credit ageements conta customar covenants and default provisions, including a covenant requig the ratio
of "earings before interest, taes, depreciation and amortion" to "interest expense" of A vist Corp. for the preceding
twelve-month period at the end of any fiscal quaer to be greater than 1.6 to 1. As of December 31, 2009, the Company was in
compliance with this covenant with a ratio of 4.23 to 1. The committed line of credit agreements also have a covenant which does not
permit the ratio of "consolidated total debt" to "consolidated total capitalization" of A vista Corp. to be greater than 70 percent at any
tie. As of December 3 1,2009, the Company was in compliance with this covenant with a ratio of 53.6 percent.
Balances outstading and interest rates of borrowigs (excluding letters of credit) under the Company's revolving committed lines of
credit were as follows as of and for the years ended December 3 i (dollar in thousands):
Balance outstading at end of period
I FERC FORM NO. 2/3-0 (REV 12-07)
2009
$ 87,000
122.17
2008
$250,000
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ßAn Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
Maximum balance outstading durg the period
Average balance outstading durg the period
Average interest rate durg the period
Average interest rate at end of penod
$275,000
$186,474
0.65%
0.59%
$250,000
$ 48,426
3.04%
0.81%
NOTE 13. BONDS
The following details bonds outstading as of December 31 (dollar in thousands):
Matuty Interest
Year Description Rate 2009 2008
2010 Secured Medium-Term Notes 6.670/0-8.02%$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
2013 First Mortgage Bonds 7.25%30,000 30,000
2018 First Mortgage Bonds 5.95%250,000 250,000
2018 Secured Medium-Term Notes 7.39%-7.45%22,500 22,500
2019 Fir Mortgage Bonds 5.45%90,000 90,000
2022 Firt Mortgage Bonds (1)5.13%250,000
2023 Secured Medium-Term Notes 7.18%-7.54%13,500 13,500
2028 Secured Medium-Term Notes 6.37%25,000 25,000
2032 Secured Pollution Control Bonds (2)(2)66,700 66,700
2034 Secured Pollution Control Bonds (3)(3)17,000 17,000
2035 First Mortgage Bonds 6.25%150,000 150,000
2037 First Mortgage Bonds 5.70%150,000 150,000
Total secured bonds 1,151,700 901,700
2023 Unsecured Pollution Control Bonds 6.00%4,100 4,100
Interest rate swaps 0,844)04,129)
Tota 1,153,956 891,671
Secured Pollution Control Bonds held by Avista
Corporation (2) (3)(83,700)(66,700)
Total bonds $) 070256 $824,971
(1) In September 2009, the Company issued $250.0 millon of5.125 percent First Mortgage Bonds due in 2022.
(2) On December 3 1,2008, $66.7 milion of the City of Forsyt Monta Pollution Control Revenue Refudig Bonds, Series
1999A (Avista Corporation Colstrp Project) due 2032 were remaketed. Avista Corp. purchased these Pollution Control
Bonds and expects that at a later date, subject to market conditions, these bonds wil be remarketed to unliated investors or
refuded by a new issue. Although Avista Corp. know the holder of these Pollution Control Bonds, the bonds wil not be
cancelled but wil remain outstadig under the City of Fors's indentue. However, so long as Avista Corp. is the holder,
the bonds wi not be reflected as an asset or a liabilty on Avista Corp.'s Balance Sheet.
(3) In December 2008, the City of Forsy Montaa issued $17.0 millon of its Pollution Control Revenue Refudig Bonds,
Series 2008 (Avista Corp. Colstrip Project) due 2034 on behalf of Avista Corp. The proceeds of the Bonds were used to
refud $17.0 milion of Pollution Control Revenue Refuding Bonds, Series 1999B (A vista Corp. Colstrp Project) issued by
the City of Forsyt, Montaa on behalf of A vista Corp., which were subject to remarketing or refuding on December 31,
2008. In December 2009, Avista Corp. purchased the Bonds and expects that at a later date, subject to market conditions, the
bonds will be refuded or remarketed to unffliated investors. Although Avista Corp. is now the holder of these Pollution
Control Bonds, the bonds will not be cancelled but wil remai outsding under the City of Forsyt's indentue. However,
so long as Avista Corp. is the holder, the bonds wil not be reflected as an asset or a liabilty on Avista Corp.'s Balance Sheet.
The following table detals futue long-term debt matuties includig advances from associated companes (see Note 14) (dollar in
thousands):
Debt matuities
2010
$35,000
20111=2012~2013 2014 Thereafer
$75,000.L $) 006647
Tota
$L123,647
I FERC FORM NO. 213-Q (REV 12-07)122.18
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)ì2) A Resubmission 04/161010 2009/04
Notes to Financial Statements
Substatially all utilty propertes owned by the Company are subject to the lien of the Company's mortgage indentue. Under the
Mortgage and Deed of Trut securng the Company's First Mortage Bonds (including Secured Medium-Term Notes), the Company
may issue additional First Mortgage Bonds in an agggate pricipal amount equal to the sum of: 1) 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 First 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 (with
certin exceptions in the case of bonds issued on the basis of retied bonds) uness the Company's "net earings" (as defied in the
Mortgage) for any period of 12 consecutive calenda month out of the precedig 1 8 calenda months were at leas twice the anual
interest requirements on all mortgage securties at the tie outstading, including the First Mortgage Bonds to be issued, and on all
indebtedness of prior ra. As of December 31, 2009, propert additions and retied bonds would have entitled the Company to issue
$668.5 milion in aggregate principal amount of additional First Mortgage Bonds. However, using an interest rate of 8 percent on
additional First Mortgage Bonds, and based on net earings for the 12 months ended December 31, 2009, the net earings test would
limit the pricipal amount of additional bonds the Company could issue to $607.5 milion.
See Note 12 for inormtion regarding First Mortgage Bonds issued to secure the Company's obligations under its $320.0 milion and
$75.0 millon commtted line of credit agreements.
NOTE 14. ADVANCES FROM ASSOCIATED COMPANES
In 2004, the Company issued Junior Subordinated Debt Securties, with a pricipal amount of $6 1.9 milion to AVA Capita Trust II,
an afliated business trt formed by the Company. Concurently, AVA Capital Trut II issued $60.0 milion of Preferred Tru
Securties to third pares and $1.9 millon of Common Trut Securties to the Company. On April 1,2009, AVA Capital Trut II
redeemed all of the Preferred Trut Securties issued to thd pares with a pricipal balance of$60.0 millon and all of the Common
Trut Securties issued to the Company with a pricipal balance of$1.9 milion. Concurently, the Company redeemed the total
amount outtading of its Junior Subordinated Debt Securties, at 100 percent of the pricipal amount ($61.9 milion) plus accrued
interest held by AVA Capital Trust II. The Company's net redemption of$60.0 milion was fuded by borrwigs under its $320.0
milion committed line of credit agreement.
In 1997, the Company issued Floating Rate Junior Subordinated Deferrable Interest Debentues, Series B, with a pricipal amount of
$51.5 milion to Avista Capital II, an afliated business tr formed by the Company. Avista Capital II issued $50.0 millon of
Preferred Trut Securties with a floating distrbution rate of LIB OR plus 0.875 percent, calculated and reset quaerly. The anual
distrbution rate paid durng 2009 raged from 1.22 percent to 3.06 percent. As of December 31,2009, the anual distrbution rate
was 1.22 percent. Concurent with the issuance of the Preferred Trut Securties, Avista Capita II issued $1.5 millon of Common
Trut Securties to the Company. These debt securties may be redeemed at the option of Avista Capital II on or after June 1,2007 and
matue on June 1,2037. In December 2000, the Company purchased $10.0 millon of these Preferred Trut Securties.
The Company has guanteed the payment of distrbutions on, and redemption price and liquidation amount for, the Preferred Trust
Securities to the extent that Avista Capital II has fuds available forsuch payments from the respective debt securties. Upon matuty
or prior redemption of such debt securties, the Preferred Trut Securties will be mandatorily redeemed.
NOTE 15. LEASES
The Company has multiple lease argements involvig varous assets, with mium terms ranging from one to fort-five years.
Renta expense under operatig leases was $3.2 millon in 2009 and $2.0 millon in 2008. Futue mium lease payments required
under operatig leases having initial or remaiing noncancelable lease term in excess of one year as of December 31,2009 were as
follows (dollars in thousands):
Minimum payments required
NOTE 16. GUAREES
2010 2011am 11 2012 2013~~2014am Thereafter~Totaw.
The Company has guanteed the payment of distrbutions on, and redemption price and liquidation amount for, the Preferred Trut
Securities issued by its affliate, A vista Capital II, to the extent that this entity has fuds available for such payments from its debt
securties.
The output from the Lancaster Plant is contracted to Avista Turbine Power, Inc. (ATP), an affliate of Avista Energy, though 2026
I FERC FORM NO. 213-Q (REV 12-07) 122.19
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009104
Nots to Financial Statements
under a power purchase ageement. Avista Corp. has provided Rathdr Power LLC, the owner of the Lancaster Plant, a guantee
under which Avista Corp. has guteed ATP's perfonnance under the power purchase agreement. The majonty of the nghts and
obligations of ths agreement were conveyed to Shell Energy though the end of 2009. Begig in Januar 2010, the rights and
obligations under the power purchase ageement were conveyed to A vista Corp.
In connection with the transaction, on June 30, 2007, Avista Energy and its afliates entered into an Indemnfication Agreement with
Shell Energy and its affliates. Under the Indemnfication Agreement, A vista Energy and Shell Energy each agree to provide
indemnification of the other and the other's affliates for certin events and matters descnbed in the purchase and sale agreement
entered into on April 16, 2007 and cert other tranaction ageements. Such events and maters include, but are not limited to, the
refud proceedigs arsing out of the western energy markets in 2000 and 2001 (see Note 22), existing litigation, ta liabilties, and
matters related to storage nghts at Jackson Praie. In general, such indemnification is not required uness and until a par's claims
exceed $ 1 50,000 and is limited to an agegate amount of $30 milion and a tenn of thee years (except for agreements or tranactions
with tenns longer th thee years). These liitations do not apply to cert thd par clai.
A vista Energy's obligations under the Indemnification Agreement are guaranteed by A vista Capital pursuat to a Guaranty dated June
30,2007. This Guaranty is limited to an aggegate amount of$30 milion plus certin fees and expenses. The Guaranty wil tenninate
April 30, 2011 except for claims made pnor to tennination. The Company has not recorded any liabilty related to this guty.
NOTE 17. PREFERRD STOCK-CUMULATIVE (SUBECT TO MAATORY REDEMPTION)
The Company has 10 millon authonzed shaes of preferred stock. The Company did not have any preferred stock outstading as of
December 31,2009 and 2008.
NOTE 18. FAI VALUE
Fair value represents the pnce tht would be received to sell an asset or paid to trfer a liabilty (an exit pnce) in an orderly
transaction between market parcipants at the measurement date. The cang values of cash and cash equivalents, special deposits,
accounts and notes receivable, accounts payable and notes payable are reasonable estimates of their fa values. Bonds and advances
from associated companes are reportd at cang value on the Balance Sheets.
The followig table sets fort the caring value and estiated fai value of the Company's fiancial intrents not reported at
estiated fair value on the Balance Sheets as of December 31,2009 and 2008 (dollar in thousands):
Bonds
Advances from associated companes
2009
Carin Estimated
Value Fair Value
$1,072,100 $1,079,857
51,547 43,534
2008
Caring
Value
$839,100
113,403
Estiated
Fair Value
$875,451
102,027
These estimates offair value were pniarly based on available market infonnation.
Energy coinodity derivative assets and liabilties, deferred compensation assets, as well as derivatives related to interest rate swap
ageements and foreign curency exchange contracts, are reported at estited fair value on the Balance Sheets. U.S. GAA defies a
fair value hierarchy that pnontizes the inputs used to measure fai value. The hierarchy gives the highest pnority to unjusted quoted
prices in active markets for identical assets or liabilties (Levell measurement) and the lowest priority to unobservable input (Level 3
measurement).
The thee levels of the fai value hierachy are defied as follows:
Level i - Quoted pnces ar available in active markets for identical assets or liabilties. Active markets are those in which
tranctions for the asset or liabilty occur with sufcient frequency and volume to provide pncing inonnation on an ongoing
basis.
Level 2 - Pricing inputs are other than quoted prices in active markets included in Levell, which are either diecty or
indirectly observable as of the reporting date. Level 2 includes those fiancial instrents that ar valued using models or
other valuation methodologies. These models are primarly industr-stadard models that consider varous assumptions,
I FERC FORM NO. 213-Q (REV 12-07)122.20
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009/04
Not to Financial Statement
including quoted forward pnces for commodities, tie value, volatility factors, and curent market and contrctual pnces for
the underlyig intrents, as well as other relevant economic measures. Substatially all of these assumptions are
observable in the marketplace thoughout the full term of the instrent, can be denved from observable data or ar
supported by observable levels at which tractions are executd in the marketplace.
Level 3 - Pncing inputs include significant inputs that are generally unobservable from objective sources. These inputs may
be used with internally developed methodologies that result in mangement's best estiate offair value. Level 3 intrents
include those tht may be more strctud or otherwse tailored to the Company's needs.
Financial assets and liabilties are classified in their entirety based on the lowest level of input that is significant to the fai value
measurement. The Company's assessment of the significance of a paricular input to the fai value measurement requires judgment,
and may affect the valuation offair value assets and liabilties and their placement within the fair value hierarchy levels. The
determination of the fair values incorporates varous factors that not only include the credit standing of the counterparies involved and
the impact of credit enhancements (such as cash deposits and letters of credit), but also the impact of Avista Corp. 's nonperformance
nsk on its liabilties.
The followig table discloses by level within the fair value hierarchy the Company's assets and liabilties measured and reported on the
Balance Sheets as of December 3 i, 2009 and 2008 at fair value on a recurg basis (dollar in thousands):
Counterpar
Levell Level 2 Level 3 Nettg(n Total
December 31,2009
Assets:
Energy commodity denvatives $$1l,898 $57,276 $(15,934)$53,240
Deferred compensation assets:
Fixed income securities (2)2,01l 2,011
Equity securities (2)5,863 --5,863--
Total ~$11,898 $57,276 $(J5934)$6Ll14
Liabilties:
Energy commodity denvatives $$27,086 $7,806 $(15,934)$18,958
Foreign curency derivatives --------
Total 1.$27136 ~$(5934)$19,008
December 31,2008
Assets:
Energy commodity denvatives $$40,104 $68,047 $(47,604)$60,547
Deferred compensation assets:
Fixed income securties (2)1,889 1,889
Equity securties (2)5,101 5,101
Interest rate swaps -875 -----
Total ~$4°979 $68,047 $(47604)$68.412
Liabilties:
Energy commodity denvatives L:$1l0,123 $16085 $(47,604)$78604
(I) The Company is permittd to net denvative assets and denvative liabilties when a legally enforceable master nettg
agreement exists.
(2) These assets are tring securities.
,
A vist Corp. enters into forward contrcts to purhase or sell a specified amount of energy at a specified tie, or dung a specified
penod, in the futue. These contracts are entered into as par of A vista Corp. ' s management of loads and resources and certin
contracts are considered denvative instrents. The difference between the amount of denvative assets and liabilties disclosed in
respectve levels and the amount of denvative assets and liabilties disclosed on the Balance Sheets is due to netg argements with
certin counterpares. The Company uses quoted maket pnces and forward pnce cures to estiate the fair value of utility denvative
commodity instrents included in Level 2. In parcular, electrc denvative valuations are performed using broker quotes, adjusted
for periods in between quotable penods. Natual gas denvative valuations are estiated using New York Mercantile Exchange
(NX) pncing for similar intrents, adjusted for basin differences, using broker quotes. Where obserable inputs are available
I FERC FORM NO. 2/3-0 (REV 12-07)122.21
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo. Da, Yr)
I (2) A Resubmission 04/1612010 2009/04
Notes to Financial Statements
for substatially the ful term of the contract the derivative asset or liabilty is included in Level 2. Thè Company also ha cert
contrcts tht, priarly due to the lengt of the respecve contract, require the use of internaly developed forward price estimates,
which include significant inputs that may not be observable or corroborated in the maket. These dervatve contracts are included in
Level3. Refer to Note 6 for fuer dicussion of the Company's energy commodity derivative assets and liabilties.
Deferred compensation assets and liabilties represent fuds held by the Company in a Rabbi Trust for an Executive Deferrl Plan.
These fuds consist of actively traded equity and bond fuds with quoted prices in active markets. The balance disclosed in the table
above excludes cash and cash equivalents of$I.6 millon as of December 3 1,2009 and $1.8 millon as of December 31,2008.
The following tale presents activity for energy commodity derivative assets and (liabilties) measured at fa value using significant
unobservable inputs (Level 3) for the years ended December 3 1 (dollars in thousands):
Balance as of Janua 1
Total gains or losses (realid/unealizd):
Included in net income
Included in other comprehensive income
Included in regulatory assetsiabilties (1)
Purchases, issuaces, and settlements, net
Tranfers to other categories
Ending balance as of December 3 1
Assets
2009
$68,047
2008
$98,943
Liabilties
2009 2008
$(16,085) $(36,506)
(7,202)
(3,569)
(22,586)
(8,310)
7,747
532
18,715
1,706
$57,276 $68,047 $(7806)$06,085)
(1) The WUTC and the IPUC issued accounting orders authoriing Avista Corp. to offset commodity derivative assets or liabilties
with a regulatory asset or liabilty. Ths accountig treatment is intended to defer the recogntion of mark- to-maket gai and losses
on energy commodity tranactions unti the period of settement. The orders provide for A vista Corp. to not recogne the unealizd
gain or loss on utility derivative commodity intrents in the Statements of Income. Realizd gais or losses are recognd in the
period of settement, subject to approval for recovery though retal rates. Reald gai and losses, subjectto reguatory approval,
result in adjustments to retal rates though purchased gas cost adjustments, the ERM in Washigton, the PCA mechanm in Idao,
and periodic general rates cases.
NOTE 19. COMMON STOCK
The Company has a Direct Stock Puchae and Dividend Reinvestment Plan under which the Company's shareholders' may
automatically reinvest their dividends and make optiona cash payments for the purchase of the Company's common stock at curent
market value.
The payment of dividends on common stock is restrcted by provisions of cert covenants applicable to preferred stock contaed in
the Company's Arcles of Incorporaton, as amended.
In December 2009, the Company entered into an amended and restated sales agency agreement with a sales agent to issue up to 1.25
millon shares of its common stock from tie to tie. The Company originlly entered into a sales agency ageement to issue up to 2
milion shaes of its common stock in December 2006. In 2008, the Company issued 750,000 shares of its common stock under ths
sales agency agreement. The Company did not issue any shares under ths sales agency agreement in 2009.
NOTE 20. EARINGS PER COMMON SHA ATTRIUTABLE TO A VISTA CORPORATION
The followin tale presents the computation of basic and diluted earings per common share attbutable to Avista Corporation for
the years ended December 31 (in thousands, except per share amounts):
2009 2008
Numerator:
Net income attbutale to A vista Corporation
Subsidiar earings adjusent for dilutive securties
Adjusted net income attbutble to A vista Corporation
for computation of diluted earings per common share
Denominator:
I FERC FORM NO. 213-Q (REV 12-07)
$87,071--$73,620
(249)
$86,957 $7337)
122.22
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04161010 2009/04
Not to FInancial Statements
Weighted-average number of common shares
outstading-basic
Effect of dilutive securties:
Contingent stock awards
Stock options
Weighted-average number of common sharesoutstadig-diluted ~
Earnings per common share attributable to Avista Corporation:Basic W.~
54,694 53,637
163~213--
Diluted
~
1U~
Tota stock options outstading excluded in the calculation of diluted eaings per common share attbutable to Avista Corporation
were 218,450 for 2009 and 250,950 for 2008. These stock options were excluded from the calculation because they were antidilutve
based on the fact tht the exercise price of the stock options was higher than the average market price of Avista Corp. common stock
durg the respective perod.
NOTE 21. STOCK COMPENSATION PLANS
1998 Plan
In 1998, the Company adopted, and shaeholders approved the Long-Term Incentive Plan (1998 Plan). Under the 1998 Plan, certin
key employees, offcers and non-employee direcors of the Company and its subsidiares may be grted stock options, stock
appreciation rights, stock awards (includin restcted stock) and other stock-based awards and dividend equivalent rights. The
Company has available a maximum of 3.5 milion shars of its common stock for grt under the 1998 Plan. As of December 3 I,
2009,0.7 milion shares were remainin for grt under this 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 maxum of2.5 millon
shares of its common stock for grt under the 2000 Plan. However, the Company curently does not plan to issue any fuer options
or securities under the 2000 Plan. As of December 3 1,2009, 1.7 milion shares were remaining for grant under ths plan.
Stock Compensation
The Company records compensation cost relating to share-based payment trsactions in the fiancial sttements based on the fair
value of the equity or liabilty instrents issued. The Company recorded stock-based compensation expense of $2.9 milion for 2009
and $3.0 milion for 2008. The total income ta benefit recognizd in the Statements of Income was $1.0 milion for 2009 and $1. I
millon for 2008.
Stock Options
The followig sumarzes stock options activity under the 1998 Plan and the 2000 Plan for the year ended December 3 I:2009 2008
Number of shares under stock options:
Options outtadig at begig of year
Options grted
Options exercised
Options canceled
Options outstading and exercisable at end of year
Weighted average exercise price:
Options exercised
Options canceled
Options outstading and exercisable at end of year
Intric value of options exercised (in thousands)
Intric value of options outsding (in thousands)
I FERC FORM NO. 213-Q (REV 12-07)
748,673 1,411,911
(200,225)(582,238)
(24.475)(81.000)
523973 748673
$13.83 $13.91
$22.69 $21.70
$16.30 $15.85
$1,180 $4,248
$2,774 $2,643
122.23
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
Information for options outstadig and exercisable as of December 3 1,2009 is as follows:
Rage of
Exercise Prices
$10.17-$12.41
$15.88-$19.34
$20.11 -$23 .00
$26.59-$28.4 7
Tota
Weighted
Average
Exercise
Price
$11.1
16.56
22.46
27.69
$16.30
Number
of Shares
285,323
11,200
213,050
14.400
523.973
Weighted
Average
Remaing
Life (in years)
2.4
2.0
0.9
0.2
1.7
Tota cash received from the exercise of stock options was $2.8 milion for 2009 and $8.1 inlljon for 2008. As of December 31, 2009
and 2008, the Company's stock options were fully vested and expensed.
Restricted Shares
Restcted 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 service condition is met In addition to the servce condition, the Company must meet a retu on equity taget in
order for the CEO's restricted shares to vest. During the vesting 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 maket of the Company's
common stock on the grant date. The weighted average remaining vesting period for the Company's restrcted shares outstading as
of December 31, 2009 was one year. The following table sumizes restricte stock activity for the years ended December 31:
Unvested shars at beging of year
Shaes grted
Shares cancelled
Shares vested
Unvested shaes at end of year
Weighted average fai value at grant date
Unrecognized compensation expense at end of year (in thousands)
Intrsic value, unvested shaes at end of year (in thousands)
Intric value, shares vested during the year (in thousands)
2009
55,939
44,400
(10,000)
08.435)~
$18.18
$668
$1,552
$345
2008
28,137
43,400
(1,230)
04.368)~
$20.05
$691
$1,084
$293
Performance Shares
Performce share grants have vestig periods of thee years. Performance awards entitle the recipients to dividend equivalent rights,
are subject to forfeitue under cert circumtaces, and are subject to meetig specific performance conditions; Based on the
attent of the peormance condition, the amount of cash paid or common stock issued wil 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 that eventuly vest.
Performance shae awards entitle the grtee to shares of common stock or cash payable once the servce condition is satisfied. Based
on attent of the performance condition, grtees may receive 0 to 150 percent of the original shares granted. The performance
condition used is the Company's Total Shareholder Retu performance over a thee-year period as compared agat other utilties;
this is considered a maket-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 issuace of stock and intends to contiue this practice. These
awards vest at the end of the the-year period. Performce shares are equity awards with a maket-based condition, which results in
the compensation cost for these awards being recognzed over the requisite service period. provided that the requisite service period is
rendered, regardless of when, if ever, the market condition is satisfied.
The Company measures (at the grant date) the estiated fa value of performce shares grante The fai value of each performance
shar award was estimated on the date of grt using' a statitical model that incorporates the probabilty of meeting performance
tagets based on historical retu relative to a peer group. Expectd volatility was based on the historical volatility of Avista Corp.
common stock over a thee-yea period. The expected term of the performance shares is thee years based on the performance cycle.
The risk-free interest rate was based on the U.S. Treasur yield at the time of grt The compensation expense on these awards wil
I FERC FORM NO. 213-Q (REV 12-07)122.24
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 041612010 2009/04
Not to Financial Stateents
only be adjusted for changes in forfeitues. The following sumars the weighted avere assumptions used to determe the fair
value ofperfonnance shares and related compensation expense as well as the resulting estimated fair value ofperfonnance shares
grted:
Risk-free interest rate
Expected life, in years
Expected volatility
Dividend yield
Weighted average grt date fair value (per share)
2009
1.%
3
25.8%
3.6%
$17.22
The fair value includes both performce shaes and dividend equivalent rights.
The followig sumars perfonnance share activity:
2008
2.2%
3
20.2%
2.8%
$16.96
2009 2008
Openg balance ofunvested performce shares 252,923 207,841Performce shares granted 163,900 170,100
Perfonnance shares canceled (43,758) (5,239)
Perfonnance shares vested (72,464) (119,779)
Ending balance ofunvested perfonnance shares 300601 252,923
Intric value ofunvested perfonnance shaes (in thousands) $6,490 $4,902
Unrecognd compensation expene (in thousands) $2,453 $2,227
The weighted average remaining vestg period for the Company's performce shares outstading as of December 31, 2009 was 1.5
years. Unrcognzed compensation expene as of December 31, 2009 will be recognizd during 2010 and 201 I. The followig
sumars the impact of the market condition on the vested perfonnance shaes:
Perfonnance shares vestd
Impact of market condition on shares vested
Shares of common stock eared
Intric value of common stock eared (in thousands)
2009
72,464
(72,464)
$
2008
119,779
21.560
141 339
$2,739
In 2009 and 2008, the number ofperfonnance shares vested was adjusted by (100) percent and 18 percent based on the perfonnance
condition achieved. Shars eared under this plan are distrbuted to parcipants in the quaer following vestig.
Awards outstanding under the perfonnance share grants include a dividend component that is paid in cash. This component of the
perfonnance share grts is accounted for as a liabilty award. These liabilty awards ar revalued on a quarerly basis tag into
account the number of awards outstading, historical dividend rate, and the change in the value of the Company's common stock
relative to an external benchmark. Over the life of these awards, the cumulative amount of compensation expense recognized will
match the actu cash paid. As of December 31,2009 and 2008, the Company had recognized compensation expense and a liabilty of
$0.3 milion and $0.5 milion related to the dividend component ofperfonnance share grants.
NOTE 22. COMMITMENTS AN CONTINGENCmS
In the course of its business, the Company becomes involved in varous cla, controversies, disputes and other contingent matters,
includig the items described in ths Note. Some of these clais, controveries, disputs and other contigent matters involve
litigation or other contested proceedings. For these proceedigs, the Company intends to vigorously protect and defend its interests
and pursue it rights. However, no assurance can be given as to the ultimate outcome of any parcular mattr because litigation and
other contested proceedings are inerently subject to numerous uncertties. For matt that affect Avista Corp.'s operations, the
Company intends to seek, to the extent appropriate, recovery of incured costs though the ratemakg process.
Federal Energy Regulatry Commission Inquir
In April 2004, the Federal Energy Regulatory Commssion (FERC) approved the conteste Agrement in Resolution of Section 206
Proceeding (Agreement in Resolution) between A vista Corp., Avista Energy and the FERC's Trial Stawhich stated that there was:
(I) no evidence that any executives or employees of A vista Corp. or Avista Energy knowigly engaged in or faciltated any improper
I FERC FORM NO. 213-Q (REV 12-07) 122.25
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)I (2) A Resubmission 04/16/2010 2009/Q4
Notes to Financial Statements
trg strtegy durg 2000 and 2001; (2) no evidence that A vista Corp. or Avista Energy engaged in any effort to mapulte the
western energy markets during 2000 and 2001; and (3) no fiding that A vita Corp. or Avista Energy witheld relevant inormtion
from the FERC's inqui into the western energy makets for 2000 and 2001 (Tradig Investigation). The Attorney Genera of the
State of California (Californa AG), the Californa Electricity Oversight Board, California Paries and the City of Tacoma, Washingtn
challenged the FERC's decisions approving the Agreement in Resolution, which are now pending before the United States Cour of
Appeals for the Ninth Circuit (Ninth Circuit).
In May 2004, the FERC provided notice that A vista Energy was no longer subject to an investigation reviewing cert bids above
$250 per MW in the short-term energy markets operated by the Californa Independent System Operator (Call SO) and the Caliorna
Power Exchae (CalX) from May 1,2000 to October 2, 2000 (Bidding Investigation). That mattr is also pending before the Ninth
Circuit, aftr the California AG, Pacific Gas & Electrc (PG&E), Southern California Edison Company (SCE) and the California
Public Utilties Commssion (CPUC) fied petitions for review in 2005.
Based on the FERC's order approving the Agreement in Resolution and the FERC's denial of rehearg requests, the Company does
not expect tht th proceeding will have any material adverse effect on its fiancial condition, results of operations or cash flows.
Furermore, based on inormation curently known to the Company regardig the Bidding Investigation and the fact that the FERC
Sta did not fmd any evidence of maipulative behavior, the Company does not expect that this matter wil have a material adverse
effect on its fiancial condition, results of operations or cash flows. The Company has not accrued a liabilty related to this matter.
California Refund Proceeding
In July 2001, the FERC ordered an evidentiar hearing to determe the amount of refuds due to Californa energy buyers for
purchases made in the spot markets operated by the CalSO and the CalX durg the period from October 2, 2000 to June 20, 200 i
(Refud Period). Proposed refuds are based on the calculation of mitigated market clearg prices for eah hour. The FERC rued
that if the refuds required by the formula would cause a seller to recover less th its actu costs for the Refud Period, sellers may
document these costs and limt their refud liabilty commensurately. In September 2005, Avista Energy submittd its cost fig clai
pursuant to the FERC's August 2005 order. Tht fig was accepted in orders issued by the FERC in Janua 2006 and November
2006. In June 2009, the FERC reversed, in par its previous decision and ordered a compliance fiing requig an adjustment to the
retu on investment component of Avista Energy's cost fiing. Tht compliance fiing was made in July 2009.
The Cal SO contiues to work on its compliance filig for the Refud Period, which wi show ''who owes what to whom." In May
2009, the CalSO filed its 43rd status report on the California recalculation process confg tht the preparatory and the FERC
refud recalculations are complete (as are calculations related to fuel cost allowance offsets, emission offsets, cost-recovery offets,
and the majority of the interest calculations). Once the FERC rues on several open issues, the CaliSO states that it intends to: (1)
perform the necessar adjustment to remove refuds associated with non-jurisdictional entities and allocate that shortall to net refud
recipients; and (2) work with the paries to the varous global settlements to make appropriate adjustments to the CalSO's data in
order to properly reflect those adjustments. After completing these calculations, the CallSO states that it intends to mae a compliance
:fg with the FERC that presents the fial fiancial position of each par that parcipated in its markets durg the Refud Period.
The 2001 banptcy of PG&E resulted in a default on its payment obligations to the CalPX. As à result, A vista Energy ha not been
paid for all of its energy sales durg the Refud Period. Those fuds are now in escrow accounts and wil not be released until the
FERC issues an order diecting such release in the Californa refud proceeding. As of December 31, 2009, Avista Energy's accounts
receivable outsdig related to defaulting paries in California were fully offset by reserves for uncollected amounts and fuds
collected from defaultig paries.
Many of the orders tht the FERC ha issued in the Californa refud proceedigs were appealed to the Ninth Circuit. In October
2004, the Ninth Circuit ordered that briefig proceed in two rounds. The fist round was limited to thee issues: (I) which pares are
subject to the FERC's refud jursdiction in light of the exemption for governent-owned utilties in section 20l(f) of the Feder
Power Act (FPA); (2) the tempora scope of refuds under secton 206 of the FPA; and (3) which categories oftranaeons are subject
to refuds. The second round of issues and their correspondig briefig schedules have ,not yet been set by the Ninth Circuit.
In September 2005, the Ninth Circuit held tht the FERC did not have the authority to order refuds for sales made by muncipal
utilities in the Californa refud proceeding. In Augut 2006, the Ninth Circuit upheld October 2, 2000 as the refud effecve date for
the FP A section 206 refud proceeding, but remanded to the FERC its decision not to consider an FPA section 309 remedy for taff
violations prior to that date. Petitions for rehearing were denied in April 2009. In July 2009, A vita Energy and A vista Corp. fied a
motion at the FERC, askig that the companes be dismissed from any fuer proceedings arsing under section 309 puruant to the
remand. The filing pointed out that section 309 reliefis based on taiff violations of the seller, and as to Avista Energy and Avista
I FERC FORM NO. 2/3.0 (REV 12-07) 122.26
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
è2) A Resubmission 04/161010 2009/04
Note to FInancial Statement
Corp., these allegations had already been fully adjudicated in the proceeding that gave rise to the Agreement in Resolution, discussed
above. There, the FERC absolved both companies of all allegations of market manipulation or wrongdoing that would justify or
perit FPA sectons 206 or 309 remedies durg 2000 and 2001. In November 2009, the FERC issued an order establishing an
evidentiar hearg before an administrtive law judge to address the issues remanded by the Ninth Circuit without addressing the
Company's pending motion. In December 2009, the Company agai brought the issue to the PERC's attention but its motion rema
pending.
Because the resolution of the California refud proceeding remais uncertin legal counel canot express an opinion on the extnt of
the Company's liabilty, ifany. However, based on informaton curently mown the Company does not expect that the refuds
ultimtely ordered for the Refud Period will have a material adverse effect on its fmancial condition, results of operations or cash
flows. This is priarly due to the fact that the FERC orders have stated that any refuds will be netted againt unpaid amounts owed
to the respective pares and the Company does not believe that refuds would exceed unpaid amounts owed to the Company. As such,
the Company has not accrued a liabilty related to this matter.
Pacific Northwest Refund Proceeding
In July 2001, the FERC initiated a preliminar evidentiar hearg to develop a fac 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. In June
2003, the FERC terminated the Pacific Nortwest refud proceedings, after fiding that the equities do not justify the imposition of
refuds. In Augu 2007, the Ninth Circuit found tht the FERC, in denyig the request for refuds, had failed to tae into account
new evidence of market mapulation in the Californa energ market and its potential ties to the Pacific Nortwest energy market and
that such falure was arbitr and capricious and, accordigly, remanded the case to the PERC, stag that the FERC's fidings must
be reevaluated in light of the evidence. In addition, the Ninth Circuit concluded that the PERC abusd its discretion in denying
potential relieffor trsactons involving energy that was purchased by the Californa Deparent of Water Resources (CERS) in the
Pacific Nortwest and ultiately consumed in California. The Ninth Ciruit expressly declined to diect the PERC to grt refuds.
Requests for rehearg were denied in April 2009.
In May 2009, the California AG filed a complaint again both Avista Energy and Avista Corp. seeking refuds on sales made to
CERS durg the period Januar 18,2001 to June 20, 2001 under section 309 of the FPA (the Brown Complaint). The sales at issue
are limted in scope and are duplicative of clais alady at issue in the Pacific Nortwest proceeding, discussed above. In August
2009, the City of Tacoma and the Port ofSeatte filed a motion askig the FERC to sumarly re-price sales of energy in the Pacific
Nortwest durg 2000 and 2001. In October 2009, Avita Corp. filed, as par of the Transacton Finality Group, an anwer to that
motion and in addition, made its own recommendations for fuer proceedings in ths docket Those pleadings are pending before the
FERC.
Both A vista 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, ifrefuds were ordered by the FERC, could be liable to make payments, but also
could be entitled to receive refuds from other FERC-jursdictional entities. The opportity to make claims against non-jursdictional
entities may be limited based on existig law. The Company canot predict the outcome of this proceeding or the amount of any
refuds that A vita Corp. or Avista Energy could be ordered to make or could be entitled to receive. Therefore, the Company canot
predict the potential impact the outcome of this matter could ultiately have on the Company's results of operations, fiancial
condition or cash flows. The Company has not accrued a liabilty related to ths matter.
Califomla Attomey General Complain (the "Lockyer Complaint'')
In May 2002, the FERC conditionally dismised a complaint filed in March 2002 by the California AG that alleged violations of the
FP A by the PERC and all sellers (includig A vista Corp. and its subsidiares) of electc power and energy into Calforna. The
complait aleged tht the PERC's adoption and implementation of maet-based rate autority 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 PERC issued an order
dismissing the complait but directing sellers to re-file certin tranaction suares. It was not clear that A vista Corp. and its
subsidiares were subject to this directive but the Company took the conservative approach and re-filed certin tranaction sumares
in June and July of2002. In September 2004, the Ninth Circuit upheld the FERC's market-based rate authority, but held that the
FERC erred in ruing that it lacked authority to order refuds for violations of it reportg requirement The Cour remanded the case
for fuer proceedgs, but did not order any refuds, leaving it to the FERC to consider appropriate remedial options.
In March 2008, the FERC issued an order establishing a tral-tye heag to address "whether any individual public utilty seller's
violation of the FERC's market-based rate quarrly reporting requirement led to an unjust and uneasonable rate for tht paricular
I FERC FORM NO. 2/3-0 (REV 12-07) 122.27
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)I (2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
seller in Calfornia dwig the 2000-2001 period." Purchasers in the California makets wil be allowed to present evidence that "any
seller that violated the quaerly reporting requirement failed to disclose an increased market shae sufcient to give it the abilty to
exercise market power and thus cause its maket-based rates to be unjust and uneasonable." In paricular, the pares are diected to
address whether the seller at any point reached a 20 percent generation market share theshold, and if the seller did reach a 20 percent
market share, whether other factors were present to indicate tht the seller did not have the abilty to exercise market power. The
California AG, CPUC, PG&E, and SCE filed their testiony in July 2009. Avista Energy's answerig testimony was filed in
September 2009. On the same day, the FERC staff fied its answerig testimony taing the position that, using the test the FERC
directed to be applied in this proceeding, Avista Energy does not have market power. Cross anwerig testimony and rebuttl
testimony were filed in November 2009. A hearing is expected to commence in April 2010.
Based on inormation curently known to the Company's management and the fact that neither Avista Corp. nor Avista Energy ever
reached a 20 percent generation maket share durg 2000 or 2001, the Company does not expect that this matter will have a material
adverse effect on its fiancial condition, results of operations or cash flows. The Company has not accrued any liabilty related to th
matter.
Colstrip Generating Project Complabits
In March 2007, two familes that oWI propert near the holding ponds from Units 3 & 4 of the Colstrp Generating Project (Colstrp)
filed a complaint against the owners of Colstrp and Hydrometrics, Inc. in Montaa Distrct Cour. Avista Corp. owns a 15 percent
interest in Units 3 & 4 of Colstrip. The plaitiffs allege that the holding ponds and remediation activities have adversely imacted
their propert. They allege containation, decrease in water tables, reduced flow of stream on their propert and other simlar
impacts to their propert. They also seek puntive damages, attorney's fees, an order by the cour to remove certin ponds, and the
fodeitue of profits eared from the generation of Colstrp. The tral is set to begin in May 2011. Because the resolution of th
complait remai uncert legal counel canot express an opinion on the extent, if any, of the Company's liabilty. However, based,
on inormation curently known to the Company's management, the Company does not expect ths complait wil have a material
adverse effect on its fiancial condition, results of operations or cash flows. The Company has not accred a liabilty related to this
matter.
Harbor OilInc. Site
A vista Corp. used Habor Oil Inc. (Harbor Oil) for the recycling of waste oil and non-PCB tranformer oil in the late 1980s and early
i 990s. In June 2005, the Environmental Protection Agency (EPA) Region 10 provided notification to Avista Corp. and several other
paries, as cusomers of Harbor Oil, that the EPA had determined that hazdous substaces were released at the Harbor Oil site in
Portland, Oregon and that A vista Corp. and several other paries may be liable for investigation and cleanup of the site under the
Comprehensive Environmental Response, Compensation, and Liabilty Act, commonly referred to as the federal "Superfd" law,
which provides for joint and several liabilty . The intial indication from the EPA is that the site may be containted with PCBs,
petroleum hydrocarbons, cWoriated solvents and heavy metals. Six potentially responsible paries, including A vista Corp., signed an
Admistrative Order on Consent with the EPA on May 31, 2007 to conduct á remedial investigation and feasibilty study (RS).
The tota cost of the RIS is estated to be $1. milion and it is expected that it wil be completed by early 2011. The act
cleanup, if any, will not occur until 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 this potential environmenta containation based on the smal volume of waste oil it delivered to
the Harbor Oil site. However, there is curently not enough information to allow the Company to assess the probabilty or amount of a
liabilty, if any, being incured. Oter than its share of the RIS, the Company has not accrued a liabilty related to this matter.
Lake Coeur d'Alene
In July i 998, the United States Distrct Cour for the Distrct of Idaho issued its fiding tht the Coeur d Alene Tribe (the Tribe) owns,
among other things, portions of the bed and ban of Lake Coeur d Alene (Lake) lyig with the cuent boundares of the Tribe's
reservation lands. The United States Distrct Cour decision was affed by the United States Cour of Appeal for the Ninth Circuit
and the United States Supreme Cour in June 2001. Th ownership decision resulte in among other thgs, A vita Corp. being liable
to the Tribe for water storage on the Tribe's land and for the use of the Tribe's reservation lads under Section 10(e) of the Federa
Power Act (Section IO(e) payments). The Company's Post Falls Hydroelectrc Generating Station (post Falls) controls the water level
in the Lake for portons of the year (includig portons of the lakebed owned by the Tribe).
In December 2008, A vista Corp., the Tribe and the United States Deparent of Interior (DOl) fiald an ageement regardig a
rage of issues related to Post Falls and the Lake. The agreement establishes the amount of past and futue compensation A vista Corp.
wil pay for Section 10(e) payments and issues related to licensing of the Company's hydroelectrc generating facilties located on the
Spokane River (see Spokane River Licensing below).
I FERC FORM NO. 2/3.0 (REV 12-07) 122.28
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) 2iAn Original (Mo, Da, Yr)
(2) A Resubmission 04161010 2009/Q4
Not to Financial Statements
Avist Corp. agreed to compenate the Tribe a tota of$39 millon ($25 milion paid in 2008, $10 millon paid in 2009 and $4 milion
to be paid in 2010) for trespass and Secton 1 O( e) payments for past storage of water for the period from 1907 thoug 2007. A vist
Corp. agreed to compensate the Tribe for futu storage of water though Section 1 O( e) payments of $0.4 millon per year begining in
2008 and continuing though the fist 20 years of the new license and $0.7 milion per year though the remaining term of the license.
In addition to Section 1 O( e) payments, A vista Corp. agreed to make anual payments over the life of the new FERC license to fud a
varety of protection, mitigation and enhancement measures on the Coeur d'Alene Reservation requied under Section 4(e) of the
Federal Power Act. These payments involve creation of a Coeur d'Alene Reservation Trust Restoration Fund (the Trut Fund).
Annual payments from the Company to the Trut Fund for protection, mitigation and enhancement measurements commenced with the
issuance of the new FERC license in June 2009 and tota $100 millon over the 50-year license term.
The WUTC and IPUC approved deferral and futue recovery of amounts paid to the Tribe and the Trust Fund though general ra
cases in 2009.
On Janua 27,2009, the Public Counel Section of the Washingtn Attrney General's Offce (Plic Counsel) filed a Petition for
Judicial Review (in Thurton County Superior Cour) of the WUC's December 2008 order approving the Company's general rate
case settlement. Public Counel raised a number of issues that were previously argued before the WUTC. These include whether the
recovery of settlement costs associated with resolving the dispute with the Tribe would constitute ilegal "retroactive ratemakg" (the
Washington porton of these costs was $25.2 millon). Public Counel also questioned whether the WUC's decision to entert
supplementa testimony to update the Company's fiing for power supply costs durg the course of the proceedings was appropriate.
Finally, Public Counel argued that the settement improperly included advertsing costs, dues and donations, and certin other
expenses. The appeal itself did not prevent the new ras from goin into effect
On December 18,2009, the Thurton County Superior Cour affed the decision of the WUTC and rejected the arguents of Public
Counsel, with the exception of disallowig $0. i milion of miscellaneous expenes, includig chatable donations. Public Counel ha
until March 4,2010 to fuer appeal the WUTC's decision.
Spokane River Licensing
The Company owns and operates six hydroelectrc plants on the Spokane River. Five of these (Lng Lake, Nine Mile, Upper Falls,
Monroe Street, and Post Falls, which have a total present capabilty of 144.1 MW) are under one FERC license and are referred to as
the Spokane River Project. The six, Little Falls, is operated under separte Congressional authority and is not licensed by the FERC.
The FERC issued a new single 50-year license for the Spokane River Project on June 18,2009.
The license incorporated the 4(e) conditions that were included in the December 2008 Settlement Agreement with the DOl and the
Tribe, as well as the mandatory conditions that were agreed to in the Idao 401 Water Quality Certifications and in the amended
Washington 401 Water Quaity Certification. Varous issues that were appealed under the Washigton 401 Water Quality
Certfication were subsequently resolved though settlement.
As par of the Settlement Agreement with the Washington Deparent of Ecology (DOE), the Company is curently engaged with the
DOE and the EPA Total Maximum Daily Load (TMDL) process for the Spokane River and Lake Spokane, the reservoir created by
Long Lake Dam. On Februar 12, 20 i 0, the DOE submitted the TMDL for the EPA's review and approvaL. Once the TMDL process
is completed, and the Company's level of responsibilty related to low dissolved oxygen in Lae Spokane is established, the Company
wil identify potential mitigation measures. It is not possible to provide cost estimates at this tie because the mitigation measures
have not been fully indentifed or approved by the DOE. It is also possible the TMDL wil be appealed by one or more pares if it is
approved by the EPA.
The Company has begu implementin the envionmenta and operational conditions required in the license for the Spokae River
Project The estiated cost to implement the license conditions for the five hydroelectrc plants is $334 millon over the 50 yea
license term. Th will increase the Spokae River Projec's cost of power by about 40 percent, while decreasing anual generation by
approximatly one-half of one percent Cost to implement mitigation measures related to the TML are not included in these cost
estiates.
The IPUC and the WUTC approved therecovery of licensing costs though the general rate case settlements in 2009. The Company
will contiue to seek recovery, though the ratemakg process, of all operatig and capitalized costs related to the licensing of the
Spokane River Project.
I FERC FORM NO. 2/3.0 (REV 12-07)122.29
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
Notes to Financial Statements
Clark Fork Setement Agreement
Dissolved atmospheric gas levels in the Clark Fork River exceed state ofIdaho and federal water quality stadads downtream of the
Cabinet Gorge Hydroelectric Generating Project (Cabinet Gorge) durg periods when excess river flows must be divertd over the
spilway. In 2002, the Company submitted a Gas Supersatuation Control Program ("GSCP") with the Idao Deparent of
Environmenta Quality (Idaho DEQ) and U.S. Fish and Wildlife Service (USFWS). This submission was par of the Clak Fork
Settlement Agreement for licensing the use of Cabinet Gorge. The GSCP provides for the openig and modification of possibly two
diversion tuels around Cabinet Gorge to allow steamflow to be divertd when flows are in excess of powerhouse capacity. In 2007,
engineerig studies deterined that the tuels would not sufciently reduce Total Dissolved Gas (TDG). In consultation with the
Idao DEQ and the USFWS, the Company developed addendum to the GSCP. The GSCP addendum abandons the existig concept to
reopen the two diversion tuels and requires the Company to evaluate a variety of smaller capacity options to abate TDG over the
next several years. The addendum was filed with the FERC in October 2009 and is pending approval.
In 1999, the USFWS listed bull trout as theatened under the Endagered Species Act. The Clark Fork Settlement Agreement
describes progr intended to restore bull trout populations in the project area. Using the concept of adaptive mangement and
working closely with the USFWS, the Company is evaluating the feaibilty of fish passage at Cabinet Gorge and Noxon Rapids. The
results of these studies wil help the Company and other paries detennine the best use of fuds toward continuing fish passage effort
or other bull trout populaton enhancement measures. In the fall of 2009 the Company initiated a contractor selection process for the
design of a pennanent upstream passage facilty at Cabinet Gorge. On Januar 13, 2010, the USFWS proposed to revise its 2005
designation of critical habitat for the bull trout. The proposed revisions include the lower Clark Fork River as critical habitat. The
USFWS is accepting public comment on the proposed revisions until March 15,2010. The Company is reviewig the proposed
revisions.
Air Qualit
The Company must be in compliance with requiements under the Clean Air Act and Clean Air Act Amendments for its thennal
generating plants. The Company contiues to monitor legislative developments at both the stte and national level for the potential of
fuer restrctions on sulfu dioxide, nitrogen oxide and carbon dioxide, as well as other greenhouse gas and mercur emisions.
In 2006, the Montaa Deparent of Environmenta Qulity (Montaa DEQ) adopted fial rules for the control of merur emissions
from coal-fied plants. The new rues set strct mercur emission lits 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
alternate emission limits provided cert provisions are met, and they allocate mercur emission credits in a maer that rewards the
cleanest facilties.
Compliance with new and proposed requiements and possible additional legislation or regulations results in increases to capital
expenditues and operatig expenses for expanded emission controls at the Company's thennal generatig facilties. The Company,
along with the other owners of Colstrp, completed the fist phae of testing on two mercur control technologies. The joint owners of
Colstrp believe, based upon curent results, that the plant will be able to comply with the Montaa law without utilizg the temporar
alternate emission lit proviion. Curent estiates indicate that the Company's shae of installation capita costs will be $1.4 millon
and anual operatig costs will increase by $1.5 millon (began in late-2009). The Company wil contiue to seek recover, though
the raemakg process, of the costs to comply with various air quality requirements.
Aluinm Recycling Site
In October 2009, the Company (though its subsidiar Pentzr Corporation) received notice from the DOE proposing to fid Pentzr
liable for a release of hadous substaces under the Model Toxics Control Act (MTCA), under Washington state law. The subject
propert adjoins land owned by the Union Pacific Ralroad (UR). UPR leased their propert to operators of a facilty designated by
DOE as "Aluminum Recycling - Trentwood." Operators of that propert maitaed piles of alumum "black dross," which can be
designated as a state-only dagerous waste in Washigton State. Operators placed a porton of the alumum dross pile on the site
owned by Pentzr Corporation. The Company does not believe it is a contrbutor to any environmenta contaon associated with
the dross pile, and submitted a response to the DOE's proposed fidigs in November 2009. In December 2009, the Company
received notice from the DOE that it had been designted as a potentially liable par for any hadous substaces located on this site.
There is curently not enough inormtion to alow the Company to assess the probabilty or amount of a liabilty, if any, being
incured. The Company has not accrued a liabilty related to ths mattr.
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04161010 2009/04
Not to Financial Stateents
Idao representig the majority (approxily 90 perct) of the barain unit employees expires on March 26, 2010. Two local
agreements in Oregon, which cover approxiately 50 employees, expire in Aprl 2010. Negotiations are curently ongoing for these
labor agreements.
Other Contingencies
In the normal course of business, the Company has varous other legal claim and contingent matters outstading. The Company
believes that any ultimate liabilty arising from these actions wil not have a material adverse impact on its fiancial condition, results
of operations or cash flows. It is possible that a change could occur in the Company's estimates of the probabilty or amount ofa
liabilty being incured. Such a change, should it occur, could be signficant
The Company routiely assesses, based on in-depth stdies, expert anlyses and legal reviews, its contingencies, obligations and
commitments for remediation of containted 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 estiates of
investigation, cleanup and monitorig costs to be incured.
The Company has potential liabilties under the Endangered Species Act for species of fish that have either already been added to the
endangered species list, been listed as "theatened" or been petitioned for listig. Thus far, measures adopted and implemented have
had minimal impac on the Company.
Under the federal licenses for its hydroelectrc projects, the Company is obligated to protect its propert rights, including water rights.
The stte of Montaa is exaining the statu of all water right clais with state boundares. Claims within the Clark Fork River
basin could potentialy adversely afect the energy production of the Company's Cabinet Gorge and Noxon Rapids hydroelectrc
facilties. The state of Idao is conductig an adjudicaton in norter Idao, which will ultitely include both the lower Clark Fork
River, the Spokae River and the Coeur d Alene basin. In addition, the state of Washigtn ha indicated its intent to initiate an
adjudication for the Spokae River basin in the next sever year. The Company is parcipatig in these extnsive adjudication
processes, which are unikely to be concluded in the foreseeable futue.
NOTE 23. INFORMTION SERVICES CONTCTS
The Company has information services contrcts that expire at varous ties though 2012. Total payments under these contracts were
$15.5 milion in 2009 and $15.4 millon in 2008. The majority of the costs are included in operation expenses in the Statements of
Income. Minimum contractual obligations under the Company's information services contrcts are $13.2 milion in 2010, $12.9
milion in 2011, and $12.2 milion in 2012. The largest of these contracts provides for increases due to changes in the cost of living
index and fuer provides flexibilty in the anual obligation from year-to-year subject to a thee-year tre-up cycle.
NOTE 24. REGULATORY MATTERS
Power Cost Deferrals and Recovery Mechanisms
Deferred power supply costs are recorded as a deferred charge on the Balance Sheets for fu review and recovery though retail
rates. The power supply costs deferrd include certin differences between actual net power supply costs incured by A vita Corp. and
the costs included in base retail rates. This difference in net power supply costs priarly results from changes in:
. short-term wholesale maket prices and sales and purchase volumes,
. the level of hydroelectrc generation,
. the level of thermal genertion (including changes in fuel prices), and
. retail loads.
In Washington, the ERM allows Avista Corp. to periodcally increase or decrease electc rates with WUC approval to reflect
changes in power supply cost. The ERM is an accounting method used to trck certin differences between actual net power supply
costs and the amount included in base retail rates for Washington customers. The Company mus make a fiing (no sooner than
Januar 1,2011), to allow all interested pares the opportity to review the ERM, and make recommendations to the WUC related
to the contiuation, modification or elimination of the ERM.
The initial amount of power supply costs in excess or below the level in retail rates, which the Company either incur the cost of, or
receives the benefit from, is referred to as the deadband. The anual (calendar year) deadband amount is curently $4.0 milion. The
Company will incur the cost of, or receive the benefit from, 100 percent of this intial power supply cost varance. The Company
I FERC FORM NO. 2/3-0 (REV 12-07)122.31
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)I (2) A Resubmission 0411612010 2009/04
Notes to Financial Statements
shares anual power supply cost varances between $4.0 milion and $10.0 millon with its customers. There is a 50 percent
customers/50 percent Company shaing when actu power supply expnses are higher (surcharge to customers) th the amount
included in base retail rates with ths band. There is a 75 percent customers/25 percent Company shag when actu power supply
expenses are lower (rebate to customers) than the amount included in base retail rates with this band. To the extent that the anual
power supply cost varance from the amount included in base rates exceeds $10.0 milion, 90 percent of the cost varance is deferred
for futue surcharge or rebate. The Company absorbs or receives the benefit in power supply costs of the remaiing 10 percent of the
anual varance beyond $10.0 milion without affectg curent or futue customer rates. The following is a sumar of the ERM:
Deferred for Futue
Surcharge or Rebate
to Customers
0%
50%
75%
90%
Anual Power Supply
Cost Varabilty
+1- $0 - $4 millon
+ between $4 milion - $10 millon
- between $4 milion - $10 millon
+1- excess over $10 millon
Expense or Benefit
to the Company
100%
50%
25%
10%
A vista Corp. has a PCA mechasm in Idaho that allows it to modify electrc rates on October 1 of each year with Idaho Public
Utilties Commission (IPUC) approvaL. Under the PCA mechanism, A vista Corp. defers 90 percent of the difference between cert
actu 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 mechanism with an anua rate adjustment provision. These anual October 1 rate adjustments
recover or rebate power costs deferred durg the preceding July-June twelve-month period.
The following table shows activity in deferred power costs for Washigton and Idao during 2008 and 2009 (dollars in thousands):
Washigton Idao Tota
Deferred power costs as of December 31, 2007 $58,524 $21,163 $79,687
Activity from Janua 1 - December 3 1,2008:
Power costs deferred
Interest and other net additions
Recover of deferred power costs though retal rates
Deferred power costs as of December 31, 2008
Activity from Janua 1 - December 3 1,2009:
Power costs deferred
Interest and other net additions
Recovery of deferred power costs though retal rates
Deferred power costs as of December 3 i, 2009
7,049 10,029 17,078
2,231 1,153 3,384
(30,852)01.690)(42.542)
36,952 $20,655 57,607
17,985 17,985
879 388 1,267
01,567)07,520 (49,088)
$ 6,264 $21.507 $27,771
In Febru 2010, the WUTC approved the Company's request to eliinate the existig ERM surchage. The surchage was
elimted because the previous balance of deferred power costs has been substatially recovered. This wil result in an overal rate
reduction of 7 percent for the Company's Washington customers with no impact on income from operations or net income.
Natural Gas Cost Deferrals and Recovery Mechanisms
A vista Corp. files a purchased gas cost adjustment (PGA) in all thee states it serves to adjust natual gas rates for: i) estiated
commodity and pipeline tranporttion costs to serve natu gas cusmers for the comig year, and 2) the difference between actul
and estited commodity and trporttion costs for the prior year. These anual PGA figs in Wasington and Idaho provide for
the deferral and recovery or refud, of 100 percent of the difference between actal and estiated commodity and pipeline
trporttion costs for the prior year, subject to applicable reguatory review. The anual PGA filig in Oregon provides for deferral,
and recovery or refud, of 100 percent of the difference between act and estiated pipeline tranporttion costs and commodity
costs that are fied though hedge trctions. Commodity costs that ar not hedged for Oregon customers are subject to a shg
mechanism whereby Avista Corp. defers, and recovers or refuds, 90 percent of the difference between these actu and estiatd
costs. Tota net deferred natual gas costs to be refuded to customers were a liabilty of $40.0 milion as of December 31, 2009 and
$18.6 millon as of December 3 1,2008.
General Rate Cases
The following is a sumar of the Company's authorized rates ofretu in each jurisdiction:
I FERC FORM NO. 213-Q (REV 12-07)
Authorizd
122.32
Authorid Authorid
Name of Respondent This Report is:Date of Report Year/Penod of Report
Avista Corporation (1) ~ An Onginal (Mo, Da, Yr)
(2) A Resubmission 04/1612010 2009/04
Not to Financial Statements
Jursdiction and servce
Washingtn electrc and natu gas
Idaho electrc and natual gas
Oregon natu gas
Implementaon
Date
Janua 20 I 0
Augut 2009
November 2009
Overll Rate
of Retu
8.25%
8.55%
8.19%
Retu on
Eguity
10.2%
10.5%
10.1%
Equity
Level
46.5% .
50.0%
50.0%
Washington General Rate Cases
As approved by the WUTC, on Janua 1,2008, electrc rates for the Company's Washington customers increased by an averae of
9.4 percent, which was designed to increase anual revenues by $30.2 milion. As par of this general rate increase, the base level of
power supply costs used in the ERM calculations was updated. Also, on Janua 1, 2008, natual gas rates increased by an average of
1.7 percent, which was designed to increase annual revenues by $3.3 milion.
In September 2008, A vist Corp. entered into a settlement stipulation in its general rate case that was filed with the WUC in March
2008. This settlement stipulation was approved by the WUTC in December 2008. The new electrc and natu gas rates became
effective on Janua 1,2009. As agreed to in the settlement, base electric rates for the Company's Washigton customers increased by
an average of9. 1 percent, which was designed to increase anual revenues by $32.5 millon. Base natual gas rates for the Company's
Washigton customers increased by an average of2.4 percent, which was designed to increase anual revenues by $4.8 millon.
On Janua 27,2009, Public Counsel filed a Petition for Judicial Review (in Thurston County Superior Cour) of the WUTC's
December 2008 order approvig Avista Corp.' s multipar settlement. Public Counsel raised a number of issues that were previously
argued before the WUC. These included whether the recovery of settlement costs associated with resolvig the dispute with the
Coeur d'Alene Tribe would constitute ilegal ''retroactive ratemakg" (the Washigtn porton of these costs was $25.2 millon).
Public Counsel also questioned whether the WUTC's decision to entertin supplemental testiony by the Company to update its fiing
for power supply cost durg the course of the proceedins wa appropriate. Finlly, Public Counsel argued that the settlement
improperly included advertsing costs, dues and donations, and cer other expenses. The appeal itself did not prevent the new rates
from going into effect.
On December 18,2009, the Thurston County Superor Cour affed the decision of the WUC and rejected the arguents of Public
Counsel, with the exception of disallowing $0. i. millon of miscellaneous expenses, including chartable donations. Public Counel has
until March 4,2010 to fuer appeal the WUC's decision.
On December 22,2009, the WUTC issued an order on Avista Corp.'s electrc and natual gas rate gener rate cases that were filed
with the WUTC in Janua 2009. The WUC approved a base electc rate increase for the Company's Washington cusomers of2.8
percent, which is designed to increase anual revenues by $ 12. 1 milion. Base natul gas rates for the Company's Washington
customers increased by an average of 0.3 percent, which is designed to increase anual revenues by $0.6 milion. The new electrc and
natu gas rates became effective on Januar 1,2010.
Followig the execution of a paral settlement stipulation in September 2009, A vista Corp. revised downward its electrc rat increase
request from $69.8 milion to $37.5 milion, primarly due to the decline in the wholesale prices of electrcity and natul gas. Avista
Corp. also reduced its natul gas request from $4.9 milion to $2.8 milion. Under the parial settlement stipulation, the Company
reached agreement with the other settling pares on issues in the areas of cost of capital, power supply, rae spread and rate design and
fuding under the Low-Income Ratepayer Assistace Progr. The WUTC approved this paral settlement stipulation in its order on
December 22, 2009.
The WUTC did not allow A vista Corp. to include the costs associated with the power purchase agreement for the Lancater Plant in
rates, indicatig the Company did not demonstrate compliance with cerin requirements necessar for imediate inclusion in rates.
However, the WUTC diected A vista Corp. to file to defer costs associated with the Lancaster Plant, with a cag charge, for
potential recovery in a futue rate proceedig if the Company demonstrtes that it has satisfied these requiements. The Company's
proposed deferred accountig trea1ment for the net costs associated with the Lancaster Plant was approved by the WUC in Febru
2010. The net costs associated with the power purchase agement for the Lancaster Plant account for approxiately half of the
difference between the Company's revised electrc rate incrase request of $37.5 millon and the $12.1 millon increase approved by
theWUC.
The WUTC also did not allow for certin pro forma futue capital additions to rate base, as well as certin increases in labor costs, tree
tring costs and information systems costs. These costs account for the majority of the remaining difference between the
Company's revised electric rate increase request and the amount approved by the WUTC.
I FERC FORM NO.' 213-Q (REV 12-(7) 122.33
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~An Original (Mo, Da, Yr)
1(2) , A Resubmission 04/16/2010 2009/04
Not to Financial Statements
The paral settlement stipultion (as approved by the WUTC on December 22, 2009) is based on an overall rate of retu of 8.25
percent with a common equity ratio of 46.5 percent and a 10.2 percent retu on equity. The Company's originl request was based on
a proposed overal rate of retu of8.68 percent with a common equity ratio of 47.5 percent and an 11.0 percent retu on equity.
Idaho General Rite Cases
In Augut 2008, the Company entered into an all-par settlement stipulation in its general rate case that was fied with the IPUC in
Apnl 2008. This settement stipulation was approved by the IPUC in September 2008. The new electrc and natual gas rates became
effective on October 1,2008. As agreed to in the settement, base electrc rates for the Company's Idao customers increased by an
average of 12.0 percent, which was designed to increase anual revenues by $23.2 milion. Base natual gas rates for the Company's
Idao customers increased by an average of 4.7 percent, which was designed to increase anual revenues by $3.9 milion.
In June 2009, the Company entered into an all-par settlement stipulation in its electrc and natu gas general rate cases that were
filed with the IPUC in Janua 2009. Ths settlement stipulation was approved by the IPUC in July 2009. The new electrc and naal
gas ras became effective on Augut 1,2009. As agreed to in the settlement, base electrc rates for the Company's Idao customers
increased by an average of 5.7 percent, which was designed to increae anual revenues by $12.5 milion. Offsetting the base electrc
rate increase was an overall 4.2 percent decrease in the PCA surcharge, which was designed to decrease anual PCA revenues by $9.3
milion, resultig in a net increase in anual revenues of$3.2 milion. Base natul gas rates for the Company's Idao customers
increased by an average of 2.1 percent, which was designed to increase anual revenues by $ 1.9 millon. Offettg the natual gas rate
increase for residential customers was an equivalent PGA decrease of 2.1 percent. Large genera servces received a PGA decrease of
2.4 percent and interrptible services received a PGA decrease of2.8 percent. The overal PGA decrease resulted in a $2.0 milion
decrease in anua PGA revenues, resulting in a net decrease in anual revenues of $0. 1 milion. The PGAs are designed to pass
though changes in natual gas costs to customers with no chage in grss magi or net inc~me.
Oregon General Rate Cases
As approved by the OPUC in March 2008, natual gas raes for the Company's Oregon customers increased 0.4 percent effective Apnl
1,2008 (designed to increase anua revenues by $0.5 millon) and increased an additional 1. percent effective November 1,2008
(designed to increase anua revenues by an additional $1.4 milion).
In September 2009, the Company entered into an all-par settlement stipulation in its genera rate case that was filed with the OPUC
in June 2009. This settlement stipulation was approved by the OPUC in October 2009. The new natual gas rates became effectve on
November 1, 2009. As agreed to in the settement, base natual gas rates for Oregon customers increased by an average of 7.1 percent,
which is designed to increase anual revenues by $8.8 milion.
NOTE 25. SUPPLEMENTAL CASH FLOW INFORMATION
(dollars in thousands)
Cas paid for interest
Cash paid for income taes
2009
$58,197
$22,695
Other Cash Flows from Operating Activities:
Changes in other assets and liabilties
Net change in receivables allowance
Power and natal gas deferrals
Change in special deposits
Chage in other curent assets
Non-cash stock compensation
Gai on sale of assets
$(20,201)
$(2,134)
$(216)
$(30)
$(1,923)
$2,596
$(89)
2008
$76,434
$8,116
$(10,063)
$2,879
$(2,736)
$4,068
$(2,149)
$2,541
$(1,123)
I FERC FORM NO. 213-0 (REV 12-07)122.34
Name of Respondent This wort Is:Date of Report Yearwenoa OT Keport
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Summary of Utilty Plant and Accumulated Provisions for Depreciation, Amortzaon and Depletion
Line Item Total Company
No.(a)For the Currnt
OuarterlYear
1 UTILITY PLANT
2 In Service
3 Plant in Service (Classified)3,520,534,663
4 Propert Under Capital Leases 1,903,329
5 Plant Purchased or Sold
6 Completed Construction not Classifed
7 Experimental Plant Unclassified
8 TOTAL Utilit Plant (Total of lines 3 thru 7)3,522,437,992
9 Leased to Others
10 Held for Future Use 1,631,351
11 Construction Work in Progress 57,217,478
12 Ac;uisition Adjustments 22,122,748
13 TOTAL Utilty Plant (Total of lines 8 thru 12)3,603,409,569
14 Accumulated Provisions for Depreciation, Amortization, & Depletion 1,219,877,922
15 Net Utilty Plant (Total of lines 13 and 14)2,383,531,647
16 DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17 In Service:
18 Depreciation 1,174,736,479
19 Amortization and Depletion of Producing Natural Gas Land and Land Rights
20 Amortization of Underground Storage Land and Land Rights
21 Amortization of Other Utilty Plant 24,651,168
22 TOTAL In Service (Total of lines 18 thru 21)1,199,387,647
23 Leased to Others
24 Depreciation
25 Amortization and Depletion
26 TOTAL Leased to Others (Total of lines 24 and25)
27 Held for Future Use
28 Depreciation
29 Amortization
30 TOTAL Held for Future Use (Total of lines 28 and 29)
31 Abandonment of Leases (Natural Gas)
32 Amortization of Plant Acquisition Adjustment 20,490,275
33 TOTAL Accum. Provisions (Should agree with line 14 above)(Total of lines 22, 26, 30, 31, and 32)1,219,877 ,922
FERC FORM NO.2 (12-96)Page 200
Name of Respondent This fiort Is: Date of Report
(1) I!An Original (Mo, Da, Yr)Avista Corporation (2) A Resubmission 04/16/2010 End of 2009/04
Summary of Utilty Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued)
Year/Period of Report
Line
No.
Electric
(c)
Gas
(d)
Other (specify)
(e)
Common
(1)
2,678,537,207 688,622,700
1,619,845
153,374,756
283,484
2,678,537,207 690,242,545 153,658,240
1,457,302 174,049
42,232,962 4,524,629 10,459,887
22,122,748
2,722,227,471 717,063,971 164,118,127
917,624,851 258,391,573 43,861,498
1,804,a02,620 458,672,398 120,256,629
43,861,498
FERC FORM NO.2 (12-96)Page 201
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Gas Plant in Service (Accounts 101, 102, 103, and 106)
1. Report below the original cost of gas plant in service accrding to the prescribed accunts.
2. In addition to Accunt 101, Gas Plant in Service (Classifed), this page and the next include Account 102, Gas Plant Purchased or Sold, Accunt
103, Experimental Gas Plant Unclassified, and Accunt 106, Completed Construction Not Classified-Gas.
3. Include in column (c) and (d), as appropriate corrections of additions and retirements for the current or preceding year.
4. Enclose in parenthesis credit adjustments of plant accunts to indicate the negative effect of such accounts.
5. Classify Accunt 106 accrding to prescribed accunts, on an
estimated basis if necessary, and include the entries in column (c).Also to be included in column (c) are entries for reversals of tentative distributions of
prior year reported in column (b). Likewise, if the respondent has a signifcant amount of plant retirements which have not been classified to primary
accunts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to
the account for accumulated depreciation provision. Include also in column (d) reversals of tentative distributions of prior year's unclassified retirements.
Attach supplemental statement showing the accunt distributions of these tentative classifications in c;lumns (c) and (d),Account Balance at
Beginning of Year
b
Name of Respondent
Avista Corporation
Date 0 Report
(Mo, Da, Yr)
04/16/2010
YearlPeriod of Report
End of 2009/04
Additions
Line
No.a
1 INTANGIBLE PLANT
2 301 Organization
3 302 Franchises and Consents
4 303 Miscellaneous Intangible Plant
5 TOTAL Intangible Plant (Enter Total of lines 2 thru 4)
6 PRODUCTION PLANT
7 Natural Gas Production and Gathering Plant
8 325.1 Producing Lands
9 325.2 Producing Leaseholds
10 325.3 Gas Rights
11 325.4 Rights-of-Way
12 325.5 Other Land and Land Rights
13 326 Gas Well Structures
14 327 Field Compressor Station Structures
15 328 Field Measuring and Regulating Station Equipment
16 329 Other Structures
17 330 Producing Gas Wells-Well Construction
18 331 Producing Gas Wells-Well Equipment
19 332 Field Lines
20 333 Field Compressor Station Equipment
21 334 Field Measuring and Regulating Station Equipment
22 335 Driling and Cleaning Equipment
23 336 Purification Equipment
24 337 Other Equipment
25 338 Unsuccessful Exploration and Development Costs
26 339 Asset Retirement Costs for Natural Gas Production and
27 TOTAL Production and Gathering Plant (Enter Total of lines 8
28 PRODUCTS EXTRACTION PLANT
29 340 Land and Land Rights
30 341 Structures and Improvements
31 342 Extraction and Refining Equipment
32 343 Pipe Lines
33 344 Extracted Products Storage Equipment
- -- - - - -
- -- - -- ---- -- - - -- --
1,479,956
1,479,956
218,340
218,340
FERC FORM NO.2 (12-96)Page 204
Name of Respondent Year/Period of ReportThis ~ort Is: Date of Report
(1) llAn Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010
Gas Plant in Service (Accounts 101, 102,103, and 106) (continued)
including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of
Accunt 101 and 106 wil avoid serious omissions of respondent's reported amount for plant actually in service at end of year.
6. Show in column (f) reclassifications or transfers within utilty plant accounts. Include also in column (f) the additions or reductions of primary accunt
classifications arising from distribution of amounts initially recorded in Accunt 102. In showing the clearance of Accunt 102, include in column (e) the
amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offet to the debits or
credits to primary accunt classifications.
7. For Account 399, state the nature and use of plant included in this account and if substantial in amount submit a supplementary statement showing
subaccunt classification of such plant conforming to the requirements of these pages.
8. For each amount comprising the reported balance and changes in Account 102, state the propert purchased or sold, name of vendor or purchaser,
and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of
such filing.
Avista Corporation End of 2009/04
Line
No.
Retirements Adjustments Transfers
1,698,296
1,698,296- - - - - - - - - - - -- - - - - -
I- --- ------- -----~ -- --- -
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
2
29
30
31
32
33
- - ------ ----- ----- --- -- -
FERC FORM NO.2 (12-96)Page 205
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report
(1) llAn Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)Accunt Balance at
Beginning of Yeara b
Year/Period of Report
End of 2009/04
Line
No.
Additions
c
34 345 Compressor Equipment
35 346 Gas Measuring and Regulating Equipment
36 347 Other Equipment
37 348 Asset Retirement Costs for Products Extraction Plant
38 TOTAL Products Extraction Plant (Enter Total of lines 29 thru 37)
39 TOTAL Natural Gas Production Plant (Enter Total of lines 27 and
40 Manufactured Gas Production Plant (Submit Supplementary
41 TOTAL Production Plant (Enter Total of lines 39 and 40)
42 NATURAL GAS STORAGE AND PROCESSING PLANT
43 Underground Storage Plant
44 350.1 Land
45 350.2 Rights-of-Way
46 351 Structures and Improvements
47 352 Wells
48 352.1 Storage Leaseholds and Rights
49 352.2 Reservoirs
50 352.3 Non-recoverable Natural Gas
51 353 Lines
52 354 Compressor Station Equipment
53 355 Other Equipment
54 356 Purification Equipment
55 357 Other Equipment
56 358 Asset Retirement Costs for Underground Storage Plant
57 TOTAL Underground Storage Plant (Enter Total of lines 44 thru
58 Other Storage Plant
59 360 Land and Land Rights
60 361 Structures and Improvements
61 362 Gas Holders
62 363 Purification Equipment
63 363.1 Liquefaction Equipment
64 363.2 Vaporizing Equipment
65 363.3 Compressor Equipment
66 363.4 Measuring and Re"gulating Equipment
67 363.5 Other Equipment
68 363.6 Asset Retirement Costs for Other Storage Plant
69 TOTAL Other Storage Plant (Enter Total of lines 58 thru 68)
70 Base Load Liquefied Natural Gas Terminaling and Processing Plant
71 364.1 Land and Land Rights
72 364.2 Structures and Improvements
73 364.3 LNG Processing Terminal Equipment
74 364.4 LNG Transportation Equipment
75 364.5 Measuring and Regulating Equipment
76 364.6 Compressor Station Equipment
77 364.7 Communications Equipment
78 364.8 Other Equipment
79 364.9 Asset Retirement Costs for Base Load Liquefied Natural Gas
80 TOTAL Base Load Liquefied Natl Gas, Terminaling and
--- - - - - - ----- ---- - -- - -----
7,628
7,628
412,611 469
59,812
1,129,166 173,699
9,931,969 50,152
254,354
203,330
5,971,926
1,067,016 35,680
15,033,435 946,527)
173,784
407,618
1,710,354 21,048
36,355,375 665,479)
FERC FORM NO.2 (12-96)Page 206
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Year/Period of Report
End of 2009/04
Line
No.
Retirements Adjustments Transfers
(d)(e)(f)
Balance at
End of Year
(g)
34
35
36
37
38
3940 71,05941 71,059
4
4
44
45
46
47
48
49
50
51
52
53
5455 300,167
5657 300,167
5
59
60
61
62
63
64
65
66
67
68
69
7
71
72
73
74
75
76
77
78
79
80
63,431)
63,431)- - ---- - -- --- - - - - - -
I----- --- - -- -- ~------ -- ---
I
413,080
59,812
1,302,865
9,982,121
254,354
203,330
5,971,926
1,102,696
14,086,908
173,784
407,618
1,431,235
35,389,729- - -- ---- --- - -- -- ---- - - - - - - - - - -- -- - --- -- -
I
-- -------- - ---- --r -- --- ----- - ------ -- --- - - ---- - - ----
FERC FORM NO.2 (12-96) Page 207
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Line Account Balance at Additions
No.Beginning of Year
(a)(b)(c)
81 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 57,36,355,375 (665,479)
82 TRANSMISSION PLAN
83 365.1 Land and Land Rights
84 365.2 Rights-of-Way
85 366 Structures and Improvements
86 367 Mains
87 368 Compressor Station Equipment
88 369 Measuring and Regulating Station Equipment
89 370 Communication Equipment
90 371 Other Equipment
91 372 Asset Retirement Costs for Transmission Plant
92 TOTAL Transmission Plant (Enter Totals of lines 83 thru 91)
93 DISTRIBUTION PLANT
94 374 Land and Land Rights 102,907 155,760
95 375 Structures and Improvements 844,528 58,843
96 376 Mains 313,712,624 19,460,425
97 377 Compressor Station Equipment
98 378 Measuring and Regulating Station Equipment-General 6,245,463 901,193
99 379 Measuring and Regulating Station Equipment-City Gate 6,198,871 1,434,165
100 380 Services 184,105,619 6,557,613
101 381 Meters 84,702,144 6,932,501
102 382 Meter Installations
103 383 House Regulators
104 384 House Regulator Installations
105 385 Industrial Measuring and Regulating Station Equipment 3,508,893 261,927
106 386 Other Propert on Customers' Premises
107 387 Other Equipment 539
108 388 Asset Retirement Costs for Distribution Plant
109 TOTAL Distribution Plant (Enter Total of lines 94 thru 108)599,421,588 35,762,427
110 GENERAL PLANT
111 389 Land and Land Rights 260,131 696,747
112 390 Structures and Improvements 3,571,178 905,379
113 391 Offce Furniture and Equipment 378,871 7,379
114 392 Transportation Equipment 5,933,615 744,697
115 393 Stores Equipment 141,498
116 394 Tools, Shop, and Garage Equipment 3,655,236 167,836
117 395 Laboratory Equipment 601,181
118 396 Power Operated Equipment 3,763,392
119 397 Communication Equipment 2,058,740 47,535
120 398 Miscellaneous Equipment
121 Subtotal (Enter Total of lines 111 thru 120)20,363,842 2,569,573
122 399 Other Tangible Propert
123 399.1 Asset Retirement Costs for General Plant
124 TOTAL General Plant (Enter Total oflines 121,122 and 123)20,363,842 2,569,573
125 TOTAL (Accunts 101 and 106)657,628,389 37,884,861
126 Gas Plant Purchased (See Instruction 8)
127 (Less) Gas Plant Sold (See Instruction 8)
128 Experimental Gas Plant Unclassified
129 TOTAL Gas Plant In Service (Enter Total of lines 125 thru 128)657,628,389 I 37,884,861
FERC FORM NO.2 (12-96)Page 208
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report
(1) IlAn Original (Mo, Da, Yr)
(2) A Resubmission 04/1612010
Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued)
Year/Period of Report
End of 2009/04
Line
No.
Retirements Adjustments Transfers
(d)(e)(f)
Balance at
End of Year
( )
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
1
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
300,167 35,389,729
469,914
258,667
903,371
332,703,135
7,878
634,002
3,499,709
7,146,656
7,625,158
190,029,230
88,134,936
26,539 3,744,281
539
---- -----r- -- - ------ - - --
,I
4,638,042 630,545,973
956,878
7,893 4,468,664
386,250
246,561 6,431,751
141,498
3,823,072
601,181
3,763,392
6,982 2,099,293
261,436 22,671,979
261,436 22,671,979
5,270,704 690,242,546
5,270,704 690,242,546
FERC FORM NO.2 (12-96)Page 209
Name of Respondent This wort Is:Date of Report Year/Period of Repor1
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/1612010 End of 2009/04
Gas Plant Held for Future Use (Account 105)
1. Report separately each property held for future use at end of the year having an onginal cost of $1,000,000 or more. Group other
items of propert held for fuure use.
2. For propert having an original cost of $1,000,000 or more previously used in utilty operations, now held for future use, give in
column (a), in addition to other required information, the date that utiity use of such propert was discontinued, and the date the
original cost was transferred to Accunt 105.
Descrpton and Loction Date Originally Included Date Expeced to be Used Balance at
Line of Propert in this Accunt in Utility Service End of Year
No.(a)(b)(c)(d)
1 Gas Distributon Mains and Service 03/0112007 174,048
2 locted in Coeur d'Alene, Idaho
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 -174,048
FERC FORM NO.2 (12-96)Page 214
Name of Respondent This wort Is:Date of Report Year/Period of Reporl
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/16/2010 End of 2009/04
Construction Work in Progress-Gas (Account 107)
1.Report below descnptions and balances at end of year of projects in process of construction (Accunt 1 07).
2. Show items relating to "research, development, and demonstration" projects last, under a caption Research, Development,
and Demonstration (see Accunt 107 of the Uniform System of Accunts).
3. Minor projects (less than $1,000,000) may be grouped.
Construction Work in Estimated Additional
Line Description of Project Progress-Gas Cost of Project
No.(Account 107)
(a)(b)(c)
1
2 State of Washington
3 Minor Projects (59) under $1,000,000 1,551,505 1,741,732
4
5
6
7 State, of Idaho
8 Minor Projects (22) under $1,000,000 413,831 697,917
9
10
11
12 State of Oregon
13 Minor Projects (42) under $1,000,000 1,983,229 2,857,571
14
15
16
17 Common-WAIID
18 Minor Projects (3) under $1,000,000 122,990 20,572
19
20
21 Common-WAIID/OR
22 Minor Projects (4) under $1,000,000 453,074 9,073
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total 4,524,629 5,326,865
FERC FORM NO.2 (12-96)Page 216
Name of Respondent YearlPeriod of RepoThis ~ort Is: Date of Report
(1) !.An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010
Accumulated Provision for Depreciation of Gas Utilty Plant (Account 108)
1. Explain in a footnote any important adjustments during year.
2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas
plant in service, page 204-209, column (d), excluding retirements of nondepreciable propert.
3. The provisions of Accunt 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been
recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize
the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropnate
functional classifications.
4. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g., 7.01, 7.02, etc.
Item Total Gas Plant in Gas Plant Held Gas Plant Leased(c+d+e) Service for Future Use to Others~ ~ ~ 00
Avista Corporation End of 2009/04
Line
No.(a)
Secon A. BALANCES AND CHANGES DURING YEAR
1 Balance Beginning of Year
2 Depreciaton Provision for Year, Charged to
3 (403) Depreciation Expense
4 (403.1) Depreciation Expense for Asset Retirement Costs
5 (413) Expense of Gas Plant Leased to Others
6 Transporttion Expenses - Clearing
7 Oter Clearing Accunts
8 Other Clearing (Spe) (footnote details):
9
10 TOTAL Deprec. Proo for Year (Total of lines 3 thru 8)
11 Net Charges for Plant Retire:
12 Bok Cost of Plant Retired
13 Cost of Removal
14 Salvage (Creit)
15 TOTAL Net Chrgs for Plant Ret (Total of lines 12 thru 14)
16 Oter Debit or Creit Items (Describe) (footnote details):
17
18 Book Cot of Asset Retirement Costs
19 Balance End of Year (Total oflnes 1,10,15,16 and 18)
Secon B. BALANCES AT END OF YEAR ACCORDING TO
FUNCTIONAL CLASSIFICATIONS
21 ProuctionsManufcture Gas
22 Prouction and Gatering-Natural Gas
23 Product Extacton-Natural Gas
24 Underground Gas Storage
25 Oter Storage Plant
26 Base Load LNG Terminaling and Proessing Plant
27 Transmission
28 Distrbution
29 General
30 TOTAL (Total of line 21 thru 29)
(5,199,645)(5,199,645)
(419,875)(419,875)
(45,096)(45,096)
(5,574,424)(5,574,424)
18,361 18,361
237,007,440 237,007,440
11,034,705 11,034,705
217,066,999
8,905,736
237,007,440
217,066,999
8,905,736
237,007,440
FERC FORM NO.2 (12-96)Page 219
Name of Respondent This wort Is:Date of Report Year/Period of Report
(1) X An Original (Mo, Da, Yr)Avista Corporation (2) riA Resubmission 04/16/2010 End of 2009/04
Gas Stored (Accounts 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, and 164.3)
1. If during the year adjustments were made to the stored gas inventory reported in columns (d). (f), (g), and (h) (such as to correct cumulative inaccuracies
of gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and account 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 propert recordable in the plant accunts.
3. State in a footnote the basis of segregation of inventory between current and noncurrent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
inE Description Noncurrent Current LNG LNG
No (Account (Accunt (Account (Accunt (Accunt (Accunt (Account Total
117.1 )117.2)117.3)117.4)164.1 )164.2)164.3)
(a)(b)(c)(d)(e)(f)(g)(h)(i)
1 Balance at Beginning of 30,720,371 30,720.371
2 Ga Delivered to Storae 28,17,04t 28.417.046
3 Gas Withdran 110m 46,430,651 46,430.654
4 Oter Debits and Creit
5 Balance at End 01 Year 12,706,76:12,706.763
6 Dth 44,02 44.023
7 Amunt Per Dth 288.639 288.6392
FERC FORM NO.2 (REV 04-04)Page 220
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FíA Resubmission 04/1612010 End of 2009/04
Investments (Account 123, 124, and 136)
1. Report below investment in Accunts 123, Investmnts in Assoted Companies, 124, Oter Investments, and 136, Temporary Cash Investmts.
2. Provide a subheading for each accunt and list thereunder the information called for:
(a) Investment in Securities-ist and descrbe each securi owed, givng name of issuer, date acquire and date of matrity. For bonds, als give principal amount. date of issue,
maturity, and interest rate. For capitl sto (incuding capitl st of repondnt recquire under a definite plan for rele pursuant to autorizaion by the Board of Director, and
included in Account 124, Oter Investment) state number of share, cla, and series of stock. Minor investments may be grouped by classes. Investments included in Accunt 136,
Temporary Cash Investments, also may be groupe by classes.
(b) Investment Advance.Report separately for each persn or company the amount of loans or investment advance that are proprly includable in Accunt 123. Include advance
subjec to currnt repayment in Account 145 and 146. Wit respec to each advance. show whethr the advance is a note or open account.
Description of Investment Book Cost at Beinning of Year Purchases or
(If book cot is difrent frm Additons
Line .cost to repondent. give cost to During the Year
No.respondent in a footnote and
explain diference)
(a)(b)(c)(d)
1 Spokane Energy (123000),500,000
2 Avista Capital (123010)13,403,000
3 WZN Loans Sandpoint (124350)65,177
4 Exec Deferrl Cash (124600)11,774,016 1,267,381
5 Goowill & other (124610)(11,774,016)
6 WZN Loans Oreon (124680)42,099 7,925
7 WNP3 Exchange (124900)79,626,000
8 AMT WNP3 Exchange (124930)(53,492,731)(2,450,031)
9 Temp Cash Investmts 2,684,444
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
FERC FORM NO.2 (12-96)Page 222
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Investments (Account 123,124, and 136) (continued)
List each note, giving date of issuance, maturi date, and specifying whether note is a renewal. Designate any advance due frm offcers, direcors, stockholders, or employee.
3. Designate with an asterik in column (b) any securities, notes or accounts that were pledged, and in a footnote state the name of pledges and purpose of the pledge.
4. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and cite Commission, date of authorization, and case or docet
number.
5. Report in column (h) interet and dividend revenues frm investments including such revenues from securies disposed of during the year.
6. In column (i) report for each investment dispoed of during the year the gain or los repreented by the diference between cot of the investmnt (or the other amount at whic
carred in the boks of accunt if different from cot) and the sellng price theref, not including any dividend or interest adjustment includible in column (h).
Sales or Oter Principal Amount or Book Cos at End of Year Revenues fo Gain or Loss frm
Dispositons No. of Share at (If book cot is diferent from cot Year InvestmentLineDuring Year End of Year to respondent give cot to Disposed of No.repondent in a footnote and
explain diference)
(e)(f)(g)(h)(i)
1 500,000
2 1,856,000 11,547,000
3 65,177
4 13,041,397
5 1,267,381 (13,041,397)
6 50,024
7 79,626,000
8 (55,942,762)
9 2,032,434 652,010
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
FERC FORM NO.2 (12-96)Page 223
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Investments in Subsidiary Companies (Account 123.1)
1. Report below investments in Accunt 123.1, Investments in Subsidiary Companies.
2. Provide a subheading for each company and list thereunder the informaton calle for below. Sub-totl by company and give a total in columns (e), (n, (g) and (h).
(a) Investment in Securities-List and describe each seri owed. For bonds give als principal amount, date of issue, maturi, and interet rate.
(b) Investment Advance. Report separately the amounts of loans or invetmnt advance whic are subjec to repayment. but which are not subject to currnt settlement. Wit respe
to each advance show whether the advanc is a note or open accnt. List ea not giving date of issuance, maturi date, and specing whether note is a renewal.
3. Report separately the equit in undistrbuted subsidiary earnings since acuisition. The total in column (e) should equal the amount entered for Account 418.1.
Descrption of Investment Date Date of Amount of
Acquired Maturi Investment at
Line Beginning of Year
No.
(a)(b)(c)(d)
1 Avista Capital. Common Stock 01/01/1997 184,251,609
2 Avista Capital- Equit in Earnings (99,660,867)
3 OCllnvestment in Subs
4 Avista Capitl- Oter Changes in Net Investmnt (7,748,538)
5 Avista Capitl- Other Changes in Net Investment 645,758
6 Avista Capitl- Oter 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 TOTAL Cost of Account 123.1 $TOTAL 77,487,962
FERC FORM NO.2 (12-96)Page 224
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Investmenl$ in Subsidiary Companies (Account 123.1) (continued)
4. Designate in a footnote, any securities, notes, or accunts that were pledged, and state the name of pledgee and purpse of the pledge.
5. If Commission approval was require for any advance made or securi acquired, designate such fact in a footnote and give name of Commission, date of autorization, and case or
docket number.
6. Report in column (n interest and dividend revenues from investments, including such revenues from 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 cot of the investment (or the other amount at which
carred in the books of account if different from cost), and the sellng price theref, not including interest adjustments includible in column (n.
8. Report on Line 40, column (a) the total cot of Account 123.1.
Equity in Subsidiary Revenues for Year Amount of Investment Gain or Los from
Earnings for Year at End of Year InvestmentLineDisposed ofNo.
(e)(n (g)(h)
1 (3,683,735)187,935,344
2 827,452 8,168,342 (107,001,757)
3
4 (7,748,538)
5 645,758
6 (309,652)309,652
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
40 827,452 (2,927,825)81,243,239
FERC FORM NO.2 (12-96)Page 225
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Prepayments (Acct 165), Extraordinary Propert Losses (Acct 182.1), Unreovere Plant and Regulatory Study Costs (Acct 182.2)
PREPAYMENTS (ACCOUNT 165)
1. Report below the particulars (details) on each prepayment.
Nature of Payment Balance at End
Line of Year
No.(in dollars)
(a)(b)
1 Prepaid Insurance 4,792,954
2 Prepaid Rents
3 Prepaid Taxes
4 Prepaid Interet
5 Miscellaneous Prepayments 5,192,806
6 TOTAL 9,985,760
FERC FORM NO.2 (12-96)Page 230a
Name of Respondent This wort Is:Date of Report Year/Period of Repor1
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/16/2010 End of 2009/04
Other Regulatory Assets (Account 182.3)
1. Report below the details called for concerning other regulatory assets which are created through the ratemaking actions of regulatory agencies (and not includable
in other accunts).
2. For regulatory assets being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Report separately any 'Deferred Regulatory Commission Expenses' that are also reported on pages 350-351, Regulatory Commission Expenses.
5. Provide in a footnote, for each line item, the regulatory citation where authorization for the regulatory asset has been granted (e.g. Commission Order, state
commission order, court decision).
Line Description and Purpse of Balance at Debits Written off During Wrin off Wrien off Balance at End of
No.Other Regulatory Asets Beginning QuarterNear During Period During Period Currnt
Currnt Accunt Amount Recovere Amount Deemed QuarterNear
QuarterNear Charged Unrecoverable
(a)(b)(c)(d)(e)(f)(g)
1 Regulatory Asset FAS 106 1,891,008 926,107 472,752 1,418,256
2 Guaranteed Residual Value-Airplane 2,936,17 186,228 2,936,173
3 Reg Asset Post Ret Uab 172,2n,747 2228 31,192,90 141,084,84
4 Reg Asset FAS 109 Utilit Plant 99,465,025 283 17,109,789 82,355,23
5 Reg Asset FAS 109 DSIT Non Plant 3,306,888 283 919,062 2,387,826
6 Reg Asset FAS 109 DSIT State Tax cr 4,56.230 1,679,92 6,248.158
7 Reg Asset FAS 109 WNP3 7,866.287 283 737,482 7,128.805
8 Reg Asset-Spokane River Relicense 802.031 802,034
9 Reg Asset-Spokane River PM&E 44,35(443,350
10 Reg Asset-Lake CDA Fund 10,062.731 10,062,735
11 Reg Asset- Decuplings Surcharge 479,593 407 100.664 378,929
12 Regulatry Asset AMR (252,769)252.769
13 Reg Asset RTO Depoit ID 212,417 560 70,806 141,611
14 Reg Asset BPA Residental Exchange 249,229 249,229
15 Reg Asset ERM Approved for Recovery 29,728,184 407,419 23,494,189 6,233,995
16 ID Wind Gen AFUDC 35,194 85,282 120,476
17 Reg Asset Wartilla Unit 2,325,253 407 560,072 1.765,181
18 MTM St Regulatory Asset 60,228,970 244 51,897,220 8,331.750
19 Reg Asset- FAS 143 Asset Retirement Obligation 3,335,279 230,124 205,034 3,130,245
20 Reg Asset AN CDA Lake Settement 41,733,385 407,419 4,531,187 37.202,198
21 Reg Asset WA CDA Lake Settement 1,553,54 1,553,54
-22 Reg Asset Workers Comp 242 175,994 2,921,1743,097,168
23 CS2 Lev Ret 1,442,335 62,324 1,504,659
24 Reg Asset ID PCA Deferral 1 10,457,471 10,457,471
25 Reg Asset ID PCA Deferral 2 17,080,994 557,419 17,080,994
26 Reg Asset ID PCA Deferral 3 3,573,957 7,475,831 11;049,788
27 Reg Asset- Future Payments Lake CDA 4.000,000 4,000,00
28 DSMAsset 11,894,248 11,894,248
29
30
31
32
33
34
35
36
37
38
39
40 Total 455,58,547 48,769,52 151,733,551 ~352,616,516
FERC FORM NO. 2/3Q (REV 12-07)Page 232
Name of Respondent This wort Is:Date of Report Year/Period of Repor
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 0411612010 End of 2009/04
Mjscellaneous Deferred Debits (Account 186)
1. Report below the details called for concerning miscellaneous deferred debits.
2. For any deferred debit being amortzed, show period of amortization in column (a).
3. Minor items (less than $250,000) may be grouped by classes.
Line Descrption of Miscellaneous Balance at Debits Creit Credits Balanc at
No.Derred Debit Beginning End of Year
of Year Accunt Amount
Charged
(a)(b)(c)(d)(e)In
1
2 Colstrip Common Fac.1,110,999 1,110,999
3 Regulatory Asset-Decoupling def 589,937 335,323 254,614
4 WA Deferred Power Costs 7,223,823 7,194,374 29,449
5 WA ERM YTD Company Band 4,000,000 7,037,637 (3,037,637)
6 WA ERM YTD Contra Accunt (4,000,000)7,037,637 3,037,637
7 Regulatory Asset ROT Deposit 395,534 158,213 237,321
8 Regulatory Asset-Mt lease pymt 2,795,301 360,684 2,434,617
9 Regulatory Asset-Mt lease pymt 5,413,008 676,632 4,736,376
10 Colstrip Common Fac.2,355,642 2,355,642
11 Regulatory Asset- COLS 738,101 153,77 584,330
12 Guaranteed Residual Value-Plane 2,916,673 2,916,673
13 Prepaid airplane Lease L T 28,743 28,743
14
15 Payroll Accrual
16
17 Plant Allocation of clearing jr 2,172,024 665,241 2,837,265
18
19 Misc Error Suspense 12,457 27,611 (15,154)
20
21 Renewable Energy-Cert Fees 174,000 174,000
22 Misc susp acc-non w/o 28,327 19,088 47,415
23 Unamortized AiR sale 25,767 9,678 35,45
24
25 Intangible Pension Asset
26
27 Nez Perce Settlement 181,597 5,212 176,385
28 Misc Deferred Debit Centralia 675,990 2,444 678,434
29
30 Long Term Note Rec acc 277,158 277,158
31 Reg Asset ID-Lake Cda 315,120 315,120
32 ID Panhandle Forest Use Permit 224,337 1,760 226,097
33 Metro Sunset 115KV TE
34 Reclass IPA Acct deposit 2,000,000 2,000,000
35 UPRR Permit Conv 350,163 350,163
36 Insurance Recv CDA Lake
37 Corp reorg stk iss. costs 118,086 118,086
38 Reclass Idaho Clk Fork Relic 976,731 976,731
39 Miscellaneous Work in Progress
FERC FORM NO.2 (12-96)Page 233
Name of Respondent This wort Is:Date of Report Year/Period of Repor1
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Miscellaneous Deferred Debits (Account 186) (continued)
1. Report below the details called for concerning miscellaneous deferred debits.
2. For any deferred debit being amortized, show period of amortization in column (a).
3. Minor items (less than $250,000) may be grouped by classes.
Line Description of Miscellaneous Balance at Debit Creit Creits Balance at
No.Deferred Debits Beginning End of Year
of Year Accunt Amount
Charged
(a)(b)(c)(d)(e)(0
1 Noxon Living Facilty Exp 67,001 67,001
2 Dry Creek Transport 366,206 366,206
3
4 PG&E Canada to N Cal trans 493,607 373,436 867,043
5 Misc Work Orders -=$50,000 115,729 120,130 (4,401)
6 Subsidiary Billngs 2,067,825 1,980,126 87,699
7 "Null" Project directly to 186 (345,705)358,350 12,645
8 Misc Work in Progress
9 Deferred Regulatory Comm. Expenses (See)
10 Regulatory Assets Consv 1,283,765 1,054,552 229,213
11 Regulatory Assets Consv (87,884)151,453 63,569
12 Regulatory Assets Consv 3,003,183 930,417 2,072,766
13 Regulatory Assets Consv 253,551 101,144 152,407
14 Regulatory Assets Consv 447,610 307,665 139,945
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 Miscellaneous Work in Progress
40 Total 32,008,980 15,374,513 21,m,946 26,105,547
FERC FORM NO.2 (12-96)Page 233.1
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Accumulated Deferred Income Taxes (Account 190)
1. Repo the informtin calle for be concing the repondents accunting for deferr income taes.
2. At Oter (Speci), include deferrls reating to other incme and deducts.
3. Provide in a fotnote a summary of the type and amount of defer incme taes report in the beinning-of-year and end-o-year balanc fo derr income
taxes that the repondent estimates could be Incuded in the deelomet of juriicl reurs rate.
Accunt Subdivisions Balance at
Beginning
of Year
Name of Respondent
Avista Corporation
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
Changes During
Year
Changes During
Year
Line
No.
(a)
Amounts Debited Amounts Credited
to Accunt 410.1 to Accunt 411.1
(c)(d)
15,824,253 1,299,216 56,874
2,255,652 1,021,139 281,780
112,975,620 1,356,230)3,139,227
131,055,525 964,125 3,477,881
131,055,525 964,125 3,477,881
131,055,525 964,125 3,477,881
1 Account 190
2 Elecc
3 Gas
4 Other (Define) (footnote details)
5 Total (Total of lines 2 thru 4)
6 Oter (Speif) (footnote details)
7 TOTAL Accunt 190 (Total of lines 5 thru 6)
8 Classification ofTOTAL
9 Federal Income Tax
10 State Income Tax
11 Locl Income Tax
FERC FORM NO.2 (REV 12-07)Page 234
Name of Respondent
Avista Corporation
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Accumulated Deferred Income Taxes (Account 190) (continued)
Date of Report
(Mo, Da, Yr)
04/16/2010
YearlPeriod of Report
End of 2009/04
Changes During Changes During Adjustments Adjustments Adjustmnts Adjustmnts Balance at
Year Year End of Year Line Debit Debit Creit CreitNo.Amounts Debited Amounts Credited
to Accunt 410.2 to Account 411.2 Amount
(e)(I)OJ (k)
503,577)282 12,657,857 409,283 2,963,907 5,391,538
254,282 1,784,048 267,755)
905,981 270,264 34,470,943 4,487,347 86,851,764
402,404 270,264 48,912,848 7,451,254 91,975,547
402,404 270,264 48,912,848 7,451,254 91,975,547
402,404 270,264 48,912,848 7,451,252 91,975,545
FERC FORM NO.2 (REV 12-07)Page 235
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/1612010 End of 2009/04
Capitl Stock (Account 201 and 204)
1. Report below the details called for concerning common and preferred stok at end of year, distnguishing separate seri of any general dass. Show separate totals for commo and
prefer sto.
2. Entres in column (b) should repreent the number of share autorized by the artdes of incrpration as amended to end of year.
3. Give details concerning shares of any class and series of stock autorized to be issued by a reulatry commision which have not yet bee issued.
Class and Series of Stock and Number of Share Par or Stated Value Call Price at
Name of Sto Exchange Autorize by Charter per Share End of Year
Line
No.
(a)(b)(c)(d)
1 Acc 201 . Common Stock Issued:
2 No Par Value 200,000,000
3 Restrced shares
4 TOTAL Common 200,000,000
5
6
7 Accnt 204 . Preferrd Stock Issued 10,000,000
8
9 Total Preferrd 10,000,000
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
FERC FORM NO.2 (12-96)Page 250
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/16/2010 End of 2009/04
Capitl Stock (Accounts 201 and 204)
4. The identification of each class of preferr stock should show the dividend rate and whether the dividends are cumulative or noncumulative.
5. State in a footnote if any capital stock that has ben nominally issued is nominally outstanding at end of year.
6. Give partculars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stoc in sinking and other funds which is pledged, stating name of pledgee and
purpse of plede.
Outstanding per Bal. Sheet Outstanding per Bal.Held by Held by Held by Held by
(total amt outnding Sheet Respondent Respondent Respondent Respondent
Line wiout reducton for amts As Reacquired As Reacquired In Sinking and In Sinking and
No.held by respondent)Stock (Acc 217)Stock (Acc 217)Other Funds Other Funds
Shares
(e)Amount Shares Cost Share Amount
(f)(g)(h)(I)0)
12"-759,057,747 ~~-
3
4 54,836,781 759,057,747 71,904.00 1,307,215.00
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
FERC FORM NO.2 (12-96)Page 251
Name of Respondent This wort Is:Date of Report YearlPeriod of Repon
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Oter Paid-In Capital (Accounts 208-211)\
1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital
accunts. Provide a subheading for each accunt and show a total for the account, as well as a total of all accunts for reconciliation
with the balance sheet, page 112.Explain changes made in any accunt during the year and give the accunting entnes effecting
such change.
(a) Donations Received from Stockholders (Accunt 208) - State amount and bnefly explain the origin and purpose of each donation.
(b) Reduction in Par or Stated Value of Capital Stock (Account 209) - State amount and briefly explain the capital changes that gave
nse to amounts reported under this caption including identification with the class and series of stock to which related.
(c) Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210) - Report balance at beginning of year, credits, debits,
and balance at end of year with a designation of the nature of each credit and debit identified by the class and series of stock to which
related.
(d) Miscellaneous Paid-In Capital (Account 211) - Classify amounts included in this account according to captions that, together with
brief explanations, disclose the general nature of the transactions that gave nse to the reported amounts.
Line Item Amount
No.(a)(b)
1 Equity transactions of subsidiaries 17,498,634
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 Total 17,498,634
FERC FORM NO.2 (12-96)Page 253
Name of Respondent This oo0rt Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
DISCOUNT ON CAPITAL STOCK (ACCOUNT 213)
1. Report the balance at end of year of discount on capitl stock for each class and series of capitl sto. Use as many ro as necessary to report all data.
2. If any change ocurred during the year in the balance with respect to any class or series of stock, attch a statement giving details of the change. State th reon for any charge-ff
during the year and specif the accunt charged.
Class and Series of Stoc Balance at
Line End of Year
No.(a)(b)1"2
3
4
5
6
7
8
9 ,
10
11
12
13
14
TOTAL
CAPITAL STOCK .EXPENSE (ACCOUNT 214)
1. Report the balance at end of year of capital stock expenses for each class and series of capitl stock. Use as many row as necessary to report all data. Number the rows in
sequence startng frm the last ro number used for Discount on Capitl Stock above.
2. If any change occurrd during the year in the balance wit respect to any class or series of stock, attch a statement giving details of the change. State the reason for any charge-ff
of capitl sto expense and speif the accunt charged.
Class and Series of Stock Balance at
Line End of Year
No.(a)(b)
16 Common Stock - Public Issue
17 CAP STOCK EXP - COMMON PUBLIC ISSUE 13,301,168
18 TAX BENEFIT - OPTIONS EXERCISED (5,683,807)
19 STOCK COMP INCENTIVE ACCRUAL (10,272,805)
20 STOCK COMP - SUBS (849.764)
21 SHARE WITHHOLDING 1,414,247
22
23
24
25
26
27
28
TOTAL (2,090,961)
'1
FERC FORM NO.2 (12-96)Page 254
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Long-Term Debt (Accounts 221, 222, 223, and 224)
1. Report by Balance Sheet Accunt the details concerning long-term debt included in Accunt 221, Bonds, 222, Reacquired Bonds, 223, Advance fro Asste Companie, and
224, Oter Long-Term Debt
2. For bonds assume by the repondent, include in column (a) th name of the isuing company as well as a description of the bonds.
3. For Advance frm Assocat Companie, report separay advance on notes and advance on open accunts. Designate demand notes as such. Include in column (a) names
of associated companies frm which advance were reived.
4. For reivers' certcate, show in column (a) the name of the cort and date Of court order under which such certcates were issued.
Clas and Series of Obligation and Nominal Date Date of Outtanding
Line
Name of Stok Exchange of Issue Maturi (Total amount
No.
outtanding witout
reuction for amt
held by repondent)
(a)(b)(c)(d)
1 FMBS - SERIES C - 8.02% DUE 1012612010 10/26/1999 10/26/2010 25,000,000
2 FMBS - SERIES C - 6.37% DUE 0611812028 06119/1998 06/19/2028 25,000,000
3 FMBS - SERIES A - 6.67% DUE 711212010 0711211993 07/1212010 5,000,000
4 FMBS - SERIES A - 7.37% DUE 5/1012012 05/10/1993 05/1012012 7,000,000
5 FMBS - SERIES A - 7.39% DUE 5111/2018 05111/1993 0511112018 7,000,000
6 FMBS - SERIES A. 7.45% DUE 611112018 06/09/1993 06/1112018 15,500,000
7 FMBS - SERIES A - 7.53% DUE 0510512023 05/06/1993 05/05/2023 5,500,000
8 FMBS . SERIES A - 7.54% DUE 510512023 05/0711993 05/0512023 1,000,000
9 FMBS - SERIES A - 7.18% DUE 811112023 08/12/1993 08/1112023 7,000,000
10 FMBS - SERIES B - 6.9% DUE 0710112010 06/09/1995 07101/2010 5,000,000
11 COLSTRIP 1999B PCB~ DUE 2034 03/0111994 03/01/2034
12 COLSTRIP 1999A PCBS DUE 2032 03/0111994 0610112032
13 FMBS -6.125% DUE 09-1-2013 09/0812003 09/0112013 45,000,000
14 KETTLE FALLS P C REV BONDS DUE 14 12/01/1993 12/01/2023 4,100,000
15 5.45% SERIES DUE 12-01-2019 11/1812004 12101/2019 90,000,000
16 FMBS - 6.25% DUE 12-01-35 11/172005 12/01/2035 150,000,000
17 FMBS - 5.70% DUE 07-01-2037 12/1512006 07/01/2037 150,000,000
18 5.95% SERIES DUE 06-01-2018 04/0212008 06/01/2018 250,000,000
19 7.25% FMB'S DUE 2013 12/1612008 12/16/2013 30,000,000
20 5.125% SERIES DUE 04-01-2022 09122/2009 04/0112022 250,000,000
21 ADVANCE ASSOCIATED-AVISTA CAPITAL II (ToPRS)06/03/1997 06/0112037 51,547,000
22
23 Interet Rate SWAPS (1,843,577)
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 TOTAL 1,121,803,423
FERC FORM NO.2 (12-96)Page 256
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) ¡=A Resubmission 04/16/2010 End of 2009/04
Long- Term Debt (Accounts 221, 222, 223, and 224)
5. In a supplemental statement give explanatory details for Accunts 223 and 224 of net changes during the year. Wit respect to long-tenn advances, show for each company: (a)
principal advance during year (b) interet added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates.
6. If the repondent has pledged any of it long-tenn debt securities, give particulars (details) in a footnote, including name
of the pledgee and purpe of the pledge.
7. If the repondent has any long-tenn secries that have been nominally issued and are nominally outstanding at end of year, describe such seuriies in a fotnote.
8. If interet expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest expense in column (n. Explain in a footnote any
difrence between the total of column (n and the total Account 427, Interet on Long-Tenn Debt and Account 430, Interet on Debt to Assiate Companies.
9. Give detils concerning any long-term debt authorized by a reulatory commission but not yet issued.
Interest for Interest for Held by Held by Redemption Price
Year Year Respondent Respondent per $100 atLineEnd of Year No.Rate Amount Reacquired Bonds Sinking and
(in%)(Acc222)Other Funds
(e)(n (g)(h)(i)
1 8.020 2,005,000
2 6.370 1,592,500
3 6.670 333,500
4 7.370 515,900
5 7.390 517,300
6 7.450 1,154,750
7 7.530 414,150
8 7.540 75,00
9 7.180 502,600
10 6.900 345,000
11 0.360 61,675
12 4.860
13 6.125 2,756,250
14 6.000 246,000
15 5.450 4,905,000
16 6.250 9,375,000
17 5.700 8,550,000
18 5.950 14,875,000
19 7.250 2,175,000
20 "5.125 12,812,500
21 1.850 952,275
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40 64,164,800 83,700,000
FERC FORM NO.2 (12-96)Page 257
This Page Intentionally Left Blank
Name of Respondent This wort Is:Date of Report Year/Period of Reporl
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/16/2010 End of 2009104
Reconcilation of Reportd Net Income with Taxable Income for Feder Income Taxes
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal Income Tax accruals
and show computation of such tax accruals. Include in the reconcilation, as far as practicable, the same detail as furnished on
Schedule M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. Indicate
clearly the nature of each reconcilng amount.
2. If the utility is a member of a group that files consolidated Federal tax return, reconcile reported net income with taxable net income
as if a separate return were to be fied, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State
names of group members, tax assigned to each group member, and basis of allocation, assignments, or sharing of the consolidated tax
among the group members.
Line Details Amount
No.(a)(b)
1 Net Income for the Year (Page 116)87,071,250
2 Reconcilng Items for the Year
3
4 Taxable Income Not Reported on Books
5 1,911,534
6
7
8 TOTAL 1,911,534
9 Deductions Recorded on Books Not Deducted for Return
10 102,619,036
11 Federal Income Tax 28,968,355
12 Deferred Income Tax 13,224,479
13 TOTAL 144,811,870
14 Income Recorded on Books Not Included in Return
15 60,745,269
16 Investment Tax Credit & State Income Tax 2,017,491
17
18 TOTAL 62,762,760
19 Deductions on Return Not Charged Against Book Income
20 (229,909,385)
21 Equity in Subs (827,452)
22 Corporate OVerhead Unallocated Subs 769,980
23
24
25
26 TOTAL (229,966,857)
27 Federal Tax Net Income 66,590,557
28 Show Computation of Tax:
29 State Tax 2,111,405
30 Federal Tax Net Income, less state tax 68,701,962
31
32 Federal Tax ~ 35%24,045,687
33 Prior years tax return, revenue agent reports & misc true ups 6,601,983
34 Kettle Falls & Cabinet Gorge Tax Credits (1,679,315)
35 Total Federal Tax Expense 28,968,355
FERC FORM NO.2 (12-96)Page 261
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilit dept where applicable and acct charged)
1. Give detils of the combined prepaid and acced ta accunt and show th total taes chared to operatins and other accunts during the year. Do not include gasoline and
other sales taes which have ben chrged to the accunts to which the taed material was charged. If the actal or estimated amount of such taes are know, show the amounts in a
fotnote and designate whether estimate or acal amounts.
2. Include on this page, taes paid during the year and charged direc to final accunts, (not chargd to prepaid or accrued taes). Enter the amounts in both columns (d) and (e). The
balancing of this
page is not affeced by the inclusion of these taes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other accunts through (a) accrals credited to taes accrued, (b) amounts credit to the
portio of prepaid taxes charged to currnt year, and (c) taxes paid and charged dire to operations or accunts other than accrued and prepaid ta accunts.
4. Lit the aggreate of each kind of ta in such manner that the total ta for each State and subdivision can readily be ascertined.
Balance at Balance at
Line Kind of Tax Beg. of Year Beg. of Year
No.(See Instrcton 5)
Taxes Accrued Prepaid T áxes
(a)(b)(c)
1 FEDERAL:
2 Income Tax Prior 25,778,732
3 Income Tax 2006 (18,141,202)
4 Income Tax 2007 (2,300,314)
5 Income Tax 2008 (11,031,901)
6 Income Tax (Currnt)
7 Retined Earnings
8 Prior Retained Earnings (5,013,521)
9 Prior Retained Earnings (2,127,838)
10 Prior Retained Earnings (1,435,621)
11 Current Retained Earnings
12 Total Federal (14,271,665)
13
14 STATE OF WASHINGTON
15 Propert Tax (2008)7,77,174
16 Propert Tax (2009)
17 Excise Tax (2005)91,452
18 Excise Tax (2006),(464)
19 Excise Tax (2007)400,000
20 Excise Tax (2008)2,485,298
21 Excise Tax (2009)
22 Natural Gas Use Tax 33,215
23 Municipal Ocupation Tax 2,614,786
24 Sales & Use Tax (2006)(7,943)
25 Sales & Use Tax (2007)13,643
26 Sales & Use Tax (2008)50,265
27 Sales & Use Tax (2009)
28 Motor Vehicle Tax (2009)
29 Total Washington 13,451,426
30
31 STATE OF IDAHO:
32 Income Tax (2006)487,826
33 Income Tax (2007)(104,516)
34 Income Tax (2008)(443,776)
35 Income Tax (2009)
36 Propert Tax (2008)2,512,135
37 Propert Tax (2009)
38 Motor Vehicle Tax (2009)
39 Sales & Use Tax (2005)436
FERC FORM NO.2 (REV 12-07)Page 262a
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
5. If any ta (exclude Federal and State income taes) covers more than one year, show the required information separately for each ta year, identifing the year in column (a).
6. Enter all adjustments of the accrued and prepaid ta accunts in column (Q and explain each adjustment in a footnot. Deignate debit adjustments by parentheses.
7. Do not include on this page entries with respe to deferr income taes or taxes collected through payroll deductons or otheiwise pending trnsmitl of such taxes to the taxing
autority.
8. Show in columns (i) thru (p) how the taes accunts were distibuted. Show both the utlit departent and number of account charged. For taxes charged to utility plant show the
number of the approprate balance sheet plant account or subaccunt
9. For any ta apportoned to more than one utlit department or account, state in a footnote the basis (necessity) of apportoning such ta.
10. Items under $250,000 may be groupe.
11. Report in column (q) the applicable effece state income ta rate.
Balance at Balance at
Line Taxes Charged Taxes Paid End of Year End of Year
No.During Year During Year Adjustments Taxes Accrued Prepaid Taxes
(Accunt 236)(Included in Acc 165)
(d)(e)(Q (g)(h)
1
2 25.778,732
3 992,601 6,639,496 (23,788,097)
4 (151,670)(1,997,498)(454,486)
5 13,123.056 (8,677741)10,768,896
6 12,352,670 31,248,211 (18,895,541 )
7
8 (2,415)(5,015,936)
9 (2,127,838)
10 (1,435,621)
11 (1,210,371)(1,210,371)
12 25,103,871 27,212,468 (16,380,262)
13
14
15 (1,318,164)6,453,010
16 7,086,952 (346)7,086,606
17 91,452
18 (464)
19 400,000
20 (11,891)2,473,407
21 25,168,760 22,903,217 2,265,543
22 47,598 65,704 15,109
23 23,012,125 23,191.538 2,435,373
24 (295)(65)(8,173)
25 13,643
26 20,265
27 868,665 784,475 84,190
28 15,574 15,574
29 54,869,324 55,920,768 (346)12,369,636
30
31
32 141,437 346,389
33 (104.516)
34 342,216 (101,560)
35 469,890 760,000 (290,110)
36 (157,401)2,354,513 (221)
37 3,937,283 1,956,011 (22,382)1,958,891
38 9,347 9,347
39 436
FERC FORM NO.2 (REV 12-07)Page 263a
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged Dunng Year, Distnbution of Taxes Charged (Show utilit dept where applicable and acct charged)
1. Give detils of the combined prepaid and accrued tax accunts and show the total taes charged to operations and other accunts during the year. Do not include gasoline and
other sales taes which have ben charged to th acunts to which the taed material was charged. If the actual or estimated amounts of such taes are kno, show the amounts in a
footnote and designate whether estimated or actual amounts.
2. Include on this page, taes paid during the year and charged direc to final accounts, (not charged to prpaid or aced taes). Enter the amounts in both columns (d) and (e). The
balancing of this
page is not affeced by the inclusion of these taes.
3. Include in column (d) taxes charged during the year, taxes charged to operations and other acunts through (a) accals crited to taes accrued, (b) amounts crited to the
portion of prepaid taes charged to currnt year, and (c) taes paid and charged dire to opetions or accunts other than acrued and prepaid tax accounts.
4. list the aggreate of each kind of ta in such manner that the total ta for each State and subdivision can readily be ascertined.
DISTRIBUTION OF TAXES CHARGED (Show utilty department where applicable and account charged.)
Elecc Gas Other Utilit Dept Oter Income and
Line (Accunt 408.1.(Account 408.1,(Accunt 408.1,Deductons
No.409.1)409.1)409.1)(Accunt 408.2,
409.2)
(i)OJ (k)(I)
1
2
3 (100,641)217,242
4 98,001 22,808
5 135,923 12,987,133
6 13,438,692 3,426,516 (1,254,904)
7
8 (2,415)
9
10
11
12 13,571,975 3,426,516 11,969,864
13
14
15 (1,059,373)(262,464)3,660
16 5,405,952 1,645,000 36,000
17
18
19
20 (16,589)(540)(92.216)
21 17,235,991 7,887,074 47,942
22 (10,422)
23 15,480,504 7,470,361
24
25
26
27
28
29 37,046,485 16,739,431 (15,036)
30
31
32
33
34 313,024 29,192
35 380,356 89,534
36 (57,910)(99,495)
37 3,206,068 721,738 9,481
38
39
FERC FORM NO.2 (REV 12-07)Page 262b
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
5. If any ta (exclude Federal and State income taes) covers more than one year, show the reuired informatin separately for each ta year, identifying the year in column (a).
6. Enter all adjustments of the accrued and prepaid ta accunts in column (~ and explain each adjustment in a footnote. Deignate debit adjustments by parenthses.
7. Do not include on this page entries wit respect to deferr income taxes or taes collectd through payroll deductons or otherwise pending trnsmitl of such taxes to the taing
autor.
8. Show in columns (i) thru (p) how the taes accounts were distrbuted. Show both the utlit departent and number of accunt charged. For taes charged to utilit plant show the
number of the approprate balance sheet plant account or subaccunt
9. For any ta apportioned to more than one utility department or accunt, state in a footnote the basis (necesit) of apportoning such ta.
10. Items under $250,000 may be grouped.
11. Report in column (q) the applicable effecive stte income tax rate.
DISTRIBUTION OF TAXES CHARGED (Show utilty department where applicable and account charged.)
Extordinary Items Other Utilit Opn.Adjustment to Ret.State/Locl
Line (Accunt 409.3)Income Earnings Other Income Tax
No.(Account 408.1,(Accunt 439)Rate
409.1)
(m)(n)(0)(p)(q)
1
2
3 876,000
4 (272,478)
5
6 (3,257,634)
7
8
9
10
11 (1,210,371)
12 (3,864,483)
13
14
15 13
16
17
18
19
20 97,454
21 (2,247)
22 58,020
23 61,260
24 (295)
25
26
27 868,665
28 15,574
29 1,098,444
30
31
32
33
34
35
36 4
37 (4)
38 9,347
39
FERC FORM NO.2 (REV 12-07)Page 263b
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilit dept where applicable and acct charged)
(continued)
Balance at Balance at
Line Kind of Tax Beg. of Year Beg. of Year
No.(See Instrction 5)
Taxes Accrued Prepaid Taxes
(a)(b)(c)
1 Sales & Use Tax (2007)(13)
2 Sales & Use Tax (2008)23,236
3 Sales & Use Tax (2009)
4 Irrgation Credits (2009)
5 KWH Tax (2008)21,255
6 KWH Tax (2009)
7 Franchise Tax (2008)1,673,763
8 Franchise Tax (2009)
9 Total Idaho 4,170,346
10
11 STATE OF MONTANA
12 Income Tax (2006)520,245
13 Income Tax (2007)(59,435)
14 Income Tax (2008)(347,781)
15 Income Tax (2009)
16 Propert Tax (2008)3,336,316
17 Propert Tax (2009)
18 Colstrp Generation Tax
19 KW Tax (2008)267,227
20 KWH Tax (2009)
21 Motor Vehicle Tax (2009)
22 Consumer Council Tax 24,450
23 Public Commision Tax 6
24 Total Montana 3,741.028
25
26 STATE OF OREGON
27 Income Tax (2006)266.087
28 Income Tax (2007)(5)
29 Income Tax (2008)(549,586)
30 Income Tax (2009)
31 Propert Tax (2008)(1,010.000)
32 Propert Tax (2009)
33 Motor Vehicle Tax (2009)
34 BETC Credit (2006 & Prior)(498,457)
35 BETC Credit (2007)209,659
36 BETC Credit (2008)(46,847)
37 BETC Credit (2009)
38 Glendate Regulator Cr. 2008 (351,469)
39 Glendate Regulatory Cr. 2009
FERC FORM NO.2 (REV 12-07)Page 262a.1
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) EiA Resubmission 04/16/2010 End of 2009/04
Taxes Accrued. Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
Balance at Balance at
Line Taxes Charged Taxes Paid End of Year End of Year
No.During Year During Year Adjustments Taxes Accrud Prepaid Taxes
(Account 236)(I ncluded in Acc 165)
(d)(e)(Q (g)(h)
1 13
2 18,888 4,348
3 129,709 125,559 4,150
4 444 44
5 (5,595)15,660
6 338,888 322,703 16,185
7 1,673,763
8 4,511,633 2,808,008 1,703,625
9 9,576,427 10,185,889 (22,603)3,538,282
10
11
12 520,245
13 (59,435)
14 167,207 (180,574)
15 315,028 525,000 (209,972)
16 (8,185)3,328,131
17 6,173,166 3,088,756 3,084,410
18 3,222 3,222
19 267,227
20 1,008,877 788,579 220,298
21 4,068 4,068
22 (20,548)3,899 3
23 5,907 5,105 808
24 7,648,742 7,954,552 3,435,218
25
26
27 266,87
28 (5)
29 324,299 (334,870)109,583
30 161,688 530,000 (368,312)
31 1,004,692 (5,308)
32 1,764,096 3,081,486 (1,317,390)
33 486 486
34 77,652 (420,805)
35 33,694 243,353
36 6,464 (40,383)
37 (91,881)(91,881)
38 140,580 (210,889)
39 70,289 70,289
FERC FORM NO.2 (REV 12-07)Page 263a.1
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utilit department where applicable and accunt charged.)
Elec Gas Oter Utilit Dept Oter Income and
Line (Account 408.1,(Accunt 408.1,(Accnt 408.1,Deductons
No.409.1)409.1)409.1)(Accunt 408.2,
409.2)
(i)ü)(k)(I)
1 13
2
3
4 444
5 (5,595)
6 338,888
7
8 2,955,248 1,544,395
9 7,130,523 2,285,364 9,494
10
11
12
13
14 167,207
15 315,028
16 (8,185)
17 6,173,166
18 3,222
19
20 1,008,877
21
22 (20,548)
23 5,907
24 7,64,674
25
26
27
28
29 (1)303,935
30 87,446 235,186
31 79,000 925,692
32 939,758 824,338
33
34
35
36
37 188,098
38
39
FERC FORM NO.2 (REV 12-07)Page 262b.1
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/16/2010 End of 2009/q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utiit department where applicable and accunt charged.)
Extordinary Items Oter Utilit Opn.Adjustment to Ret State/Locl
Line (Account 409.3)Income Earnings Oter Income Tax
No.(Accunt 408.1,(Accunt 439)Rate
409.1)
(m)(n)(0)(p)(q)
1
2
3 129,709
4
5
6
7
8 11,990
9 151,046
10
11
12
13
14
15
16
17
18
19
20
21 4,068
22
23
24 4,068
25
26
27
28
29 20,365
30 (160,944)
31
32
33 486
34 77,652
35 33,694
36 6,64
37 (279,979)
38 140,580
39 70,289
FERC FORM NO.2 (REV 12-07)Page 263b.1
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilit dept where applicable and acct charged)
(continued)
Balance at Balance at
Line KindofTax Beg. of Year Beg. of Year
No.(See Instrcton 5)
Taxes Acced Prepaid Taxes
(a)(b)(c)
1 Franchise Tax (2006)755
2 Franchise Tax (2008)996,390
3 Franchise Tax (2009)
4 Total Oreon (983,473)
5
6 STATE OF CALIFORNIA
7 Income Tax (2005)(1,869)
8 Income Tax (2006)(314)
9 Income Tax (2007)(3,200)
10 Income Tax (2008)
11 Income Tax (2009)
12 Totl California (5,383)
13
14 MISCELLANEOUS STATES:
15 Income Tax (2007)
16 Income Tax (2008)(1)
17 Total Misc States (1)
18
19 COUNTY & MUNICIPAL
20 WA Renewable Energy
21 Misc.3,299
22 Total County 3,299
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL 6,105,sn
FERC FORM NO.2 (REV 12-07)Page 262a.2
Name of Respondent This oo0rt Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/16/2010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
Balance at Balance at
Line Taxes Charged Taxes Paid End of Year End of Year
No.During Year During Year Adjustmnts Taxes Accrued Prepaid Taxes
(Accunt 236)(Included in Acc 165)
(d)(e)(f)(g)(h)
1 755
2 966,063 30,327
3 4,284,846 3,287,865 996,981
4 7,776,905 7,525,722 (732,290)
5
6
7 (1,869)
8 (314)
9 800 2,400
10 2,400 (2,400)(2,400)
11 2,400
12 3,200 2,400 (4,583)
13
14
15
16 1
17 1
18
19
20 (8,863)(8,863)
21 (6,673)22,949 22,949 (3,374)
22 (15,536)14,086 22,949 (3,374)
23
24
25
26
27
28
29
30
,
31
32
33
34
35
36
37
38
39
TOTAL 104,962,934 108,815,885 2,222,627
FERC FORM NO.2 (REV 12-07)Page 263a.2
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilit dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utilty department where applicable and accunt charged.)
Elecc Gas Oter Utlit Dept Oter Income and
Line (Account 408.1,(Accunt 40.1,(Accnt 408.1,Deductons
No.409.1)409.1)409.1)(Accunt 408.2,
409.2)
(i)OJ (k)(I)
1
2
3 (166)4,261.832
4 1.106.037 6,739,081
5
6
7
8
9
10 2,400
11
12 2,400
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 66,499,694 29,192,792 11,964,322
FERC FORM NO.2 (REV 12-07)Page 262b.2
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/1612010 End of 2009/04
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utilty dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utilty department where applicable and accunt charged.)
Extrordinary Items Other Utilty Opn.Adjustment to Ret.StateIocl
Line (Accunt 409.3)Income Earnings Oter Income Tax
No.(Accunt 408.1,(Accunt 439)Rate
409.1)
(m)(n)(0)(p)(q)
1
2
3 23,180
4 (68,213)
5
6
7
8
9 800
10
11
12 800
13
14
15 ,
16
17
18
19
20 (8,863)
21 (6,673)
22 (15,536)
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL (2,693,874)
FERC FORM NO.2 (REV 12-07)Page 263b.2
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
Miscellaneous Currnt and Accrued Liabilties (Account 242)
1.Describe and report the amount of other current and accrued liabilties at the end of year.
2.Minor items (less than $250,000) may be grouped under appropriate title.
Line Item Balance at
No.End of Year
(a)(b)
1 Mise Liab- Margin Call Deposit (242050)3,220,000
2 Misc Liab- Forest Use Permits (242060)155,652
3 Settlement Payable (242090)88,127
4 Mise Liab- Audit Exp Acc (242200)(75,000)
5 Misc Liab- FERC Admin Fee Aec (242300)477,000
6 Misc Liab- FERC Elee Admin Chg (242310)62,499
7 Misc Liab- Mt lease payments (242375)4,172,400
8 State Commission Fee Accrued (242400)90,351
9 Misc Liab- Misc non-mon pwr exchange (242500)156,003
10 DSM Tarif Rider (242600)(11,894,248)
11 Misc Liab- Payroll Eqlztn (242700)14,002,104
12 Low income energy assist (242770)2,374,405
13 Misc Liab- Enron Settlement (242775)463,187
14 Avisa Grants eng sustain WSU-ASL (242780)368,961
15 Mise Liab- Mobius (242790)450,000
16 Workers comp regulatory liabilty (242830)2,921,174
17 Acc Payable inventory accruals - sc (242900)501,755
18 Acc Payable Expense acerual-sc (242910)6,768,897
19 Current Portion-benefi Iiab (242999)4,197,789
20 Clearing Accounts 242,345
21 Gas Imbalance 38,091
22 Customer Accunts 9,331,704
23 State Commission Fee 90,351
24 Cash overdraft 5,289,107
25 DSMAsset 11,894,247
26 Audit Expense 75,000
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total 55,461,901
FERC FORM NO.2 (12-96)Page 268
Name of Respondent This wort Is:Date of Report Year/Period of Reporl
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
Other Deferrd Credits (Account 253)
1. Report below the details called for concerning other deferred credits.
2. For any deferred credit being amortized, show the pertod of amortization.
3. Minor items (less than $250,000) may be grouped by classes.
Line Balance at Debit Debit
No.Desription of Oter Beginning Contr Creits Balance at
Deferr Creits of Year Accunt Amount End of Year
(a)(b)(c)(d)(e)(n
1 Defer Gas Exchange (253028)2,119,525 2,119,525
2 Pacificorp Capacitor (253080)4,686 456 4,686
3 Centralia Enviromental (253110)963,886 2,437 966,323
4 Rathdrum Refund (253120)374,864 550 33,822 341,042
5 NE Tank Spil (253130)98,607 550 11,502 87,105
6 Bils Pole Rentals (253140)211,620 3,583 215,203
7 CR-CS2 GE LTSA (253150)4,739,221 232 2,326,663 2,412,558
8 IR Swaps (254170)568,713 176 568,713
9 Regulatory Accruals (253650)4,000,000 232 4,000,000
10 Sale/Leaseback on Bldg(253850)784,368 931 261,456 522,912
11 Clark Fork Relicensing (253890)(1,223,720)246,989 (976,731)
12 Defer Comp Retired Execs (253900)180.48 431,232 61,274 119,174
13 Defer Comp Active Execs (253910)8,807,721 628,908 9,436,629
14 Executive Incent Plan (253920)140,000 140,000
15 Unbiled Revenue (253990)5,335,68 634,860 5,970,328
16 Idaho Clark Fork 976,731 976,731
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 24,985,882 7,268,116 4,613,033 22,330,799
FERC FORM NO.2 (12-96)Page 269
Name of Respondent
Avista Corporation
This ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 04/16/2010
Accumulate Deferr Income Taxes-Other Propert (Account 282)
1. Report the informtion called for below concing the repondenfs accunting for deferr incme taes relating to proper not subjec to acclerated amortzation.
2. At Oter (Specify), include deferrls relatng to other income and deductons.
Year/Period of Report
End of 2009/04
Balance at Amounts
Line Accunt Subdivisions Beginning Debited to
No.of Year Accunt 410.1
(a)(b)(c)
1 Accunt 282
2 Elecric 252,105,800 15,828,047
3 Gas 70,244,199 7,534,44
4 Oter (Define) (footnote details)12,542,042 4,128,701
5 Total (Enter Total of lines 2 thru 4)334,892,041 27,491,194
6 Other (Specif) (footnote details)
7 TOTAL Accunt 282 (Enter Total of lines 5 thr 334,892,041 27,491,194
8 Classifcation ofTOTAL
9 Federal Income Tax
10 State Incoe Tax
11 Local Income Tax
Amounts
Credited to
Accunt 411.1
(d)
936,721
936,721
936,721
FERC FORM NO.2 (REV 12-07)Page 274
Name of Respondent
Avista Corporation
Year/Period of ReportThis ~ort Is: Date of Report
(1) ~An Original (Mo, Da, Yr)
(2) A Resubmission 0411612010
Accumulated Deferred Income Taxes-other Propert (Account 282) (continued)
3. Provide in a footnote a summary of the type and amount of deferrd income taes reported in the beginning-o-year and end-of-year balances for deferred income taes that the
respondent estimates could be included in the development of jurisdictional reurse rates.
End of 2009/04
Changes during Changes during Adjustmnts Adjustmnts Adjustments Adjustments
Year Year Balance at Line Amounts Debit Amounts Credited Debits Debit Creit Creit End of Year No.to Accunt 410.2 to Accunt 411.2 Accl No.Amount Accunt No. Amount
(e)(f)(g)(h)(i)ú1 (k)
190 190 11,713,819 255,283,307
116,953)190 190 1,628,500 76,033,192
87,739 16,758,482
29,214)13,342,319 348,074,981
13,342,319 348,074,981
29,214)13,342,319 337,008,658
11,066,323
FERC FORM NO.2 (REV 12-07)Page 275
Name of Respondent
Avista Corporation
This ~ort Is:
(1) I.An Original
(2) A Resubmission
Accumulated Deferred Income Taxes-oher (Account 283)
1. Report the informtion called fo belo concerning the repondents accounting for deferr income taes relating to amounts rerded in Accunt 28.
2. At Oter (Spe), indude deferls relatng to other incme and deductns.
Date of Report
(Mo, Da, Yr)
04116/2010
YearlPeriod of Report
End of 2009/04
Changes During Year Changes During Year
Balance at Amounts Amounts
Line Account Subdivisions Beginning Debited to Creited to
No.of Year Account 410.1 Accunt 411.1
(a)(b)(c)(d)
1 Accunt 283
2 Elecc 48,453,294 3,135,591)301,512
3 Gas (6,439,429)6,495,357)143,255)
4 Oter (Define) (footnote details)246,729,622 (864,923)
5 Total (Total of lines 2 thru 4)288,743,487 (10,495,871)158,257
6 Oter (Spefy) (footnote details)
7 TOTAL Account 283 (Total of lines 5 thru 288,743,487 10,495,871)158,257
8 Classification ofTOTAL
9 Federal Income Tax 279,078,915
10 Slae Income Tax 9,664,572
11 Local Income Tax
FERC FORM NO. 2/3Q (REV 12-07)Page 276
Name of Respondent
Avista Corporation
Year/Period of ReportThis ~ort Is: Date of Report
(1) IlAn Original (Mo, Da, Yr)
(2) A Resubmission 04/1612010
Accumulated Deferred Income Taxes-oher (Account 283) (continued)
3. Provide in a footnote a summary of the type and amount of deferr income taes reported in the beginning-of-year and end-of-year balance for deferred income taes that the
respondent estimates could be included in the development of jurisdictional recours rates.
End of 2009/04
Changes during Changes during Adjustments Adjustmnts Adjustmnts Adjustmnts
Year Year Balance at
Line Amount Debited Amounts Credited Debit Debit Creit Creit End of Year
No.to Accunt 41 0.2 to Account 411.2 Acc No.Amount Account No. Amount
(e)(f)(g)(h)(i)ù1 (k)
541,021 15,77 182 1,291,333 44,250,108
172,486 232,857 190,283 90,821 12.942,723)
301,246)3,372,019 283 69,458 182,390 47,988,48 194,272,444
412,261 3,620.647 69,458 283 49,370,602 225,579,829
412,261 3,620,647 69,458 49,370,602 225,579,829
412,261 3,620,647 69,458 43,939,836 221,346,023
5,430,766 4,233,806
FERC FORM NO. 2/3Q (REV 12-07)Page 277
This Page Intentionally Left Blank
Name OT KesponOent I nis 0001l IS:u~te ot Keport YearwerioO ot Kepon
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
Other Regulatory Liabilties (Account 254)
1. Report below the details called for concerning other regulatory liabilties which are created through the ratemaking actions of regulatory agencies (and not
includable in other amounts).
2. For regulatory liabilties being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 254 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Provide in a footnote, for each line item, the regulatory citation where the respondent was direced to refund the regulatory liabilty (e.g. Commission Order, state
commission order, court decision).
Line Balance at Writtn off during Written off Wrin off Balance at
No.Description and Purpe of Beginning of Quarter/Period During Period During Period Creit End of Currnt
Oter Regulatory Liabilites Current Account Amount Amount Deemed QuarterNear
(a)QuarterNear Credited Refunded Non-Refundable (Q (g)
(b)(c)(d)(e)
1 Idaho Investment Tax Credit (254005)8,354,86 3,248,858 11,603,723
2 Oreaon BETC Credit (254010)128,99 190 128,99
3 Noxon, ITC (254025)1,441,110 1,441,110
4 Defer Gas Exchange (254028)1,597,80 142,495 1,597,806
5 FAS 109 Invest Tax Credit (254180)201,24 190 26,556 174,68
6 Nez Perce (254220)770,39 557 22,008 748,388
7 Oregon Senate Bil (254250)1,450,00 407 662,125 1,001,77 1,789,652
8 Rea Liability CCX CR ID (254300)754,48 407 413,97'34,512
9 Accrue Lake CDA IPA int (254325)64,410 64,410
10 BPA Res Exch Regulatory Liab (254345)2,900,393 2,900,393
11 Unrealized Currency Exchange (254399)35,54 35,54
12 Rea Liabilty Other (254700)
13 Mark to Market ST (254740)
14 Mark to Market FAS133 (254750)42,171,73¡439,754 42,611,493
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 55,429,522 2,851,459 0 9,131,850 61,709,913
FERC FORM NO. 2/3Q (REV 12-07)Page 278
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/1612010 End of 2009/04
Gas Operang Revenues
1. Report belo natural gas operating reenue for each precrbe accunt total. The amounts must be consistent wit the detailed data on succing pages.
2. Revenues in columns (b) and (c) include trnsiton co from upstream pipelines.
3. Oter Revenues in coumns (ij and (g) include reservation charges received by the pipeline plus usage charges, less revenues refleced in columns (b) through (e). Include In
columns (ij and (g) revenues for Accounts 480-495.
Revenues for Revenues for Revenues for Revenues for
Transition Transitin GRI andACA GRI andACA
Costs and Costs and
Line TakEKr-Pay TakEKr-Pay
No.
TiUe of Account Amount for Amount for Amount for Amount for
Currnt Year Preious Year Currnt Year Previous Year
(a)(b)(c)(d)(e)
1 480 Residential Sales
2 481 Commercial and Industral Sales
3 482 Oter Sales to Public Authorities
4 483 Sales for Resale
5 484 Interdepartmental Sales
6 485 Intracompany Transfers
7 487 Forfeited Discounts
8 488 Miscellaneous Servic Revenues
9 489.1 Revenues frm Transporttion of Gas of Oters
Through Gathering Facilites
10 489.2 Revenues from Transporttion of Gas of Oters
Through Transmission Facilites
11 489.3 Revenues from Transporttion of Gas of Others
Through Distrbution Facilites
12 489.4 Revenues from Storing Gas of Oters
13 490 Sales of Pro. Ext from Natural Gas
14 491 Revenues frm Natural Gas Pro. by Oters
15 492 Incidental Gasoline and Oil Sales
16 493 Rent frm Gas Propert
17 494 Interdepartental Rents
18 495 Oter Gas Revenues
19 Subtotal:
20 496 (Less) Provision for Rate Refunds
21 TOTAL:
FERC FORM NO.2 (REV 12-07)Page 300
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2)A Resubmission 04/1612010 End of 2009/04
Gas Operating Revenues
4. If increases or decreases frm previous year are not derived from previously reported figure, explain any inconsistencies in a footnote.
5. On Page 108, include information on major changes during the year, new service, and importnt rate increases or deceases.
6. Report the revenue frm trnsporttion services that are bundled wit storage services as trnsporttion service revenue.
Oter Other Total Total Dekatherm of Dekatherm of
Revenues Revenues Operating Operating Natural Gas Natral Gas
Revenues Revenues
Line
No.
Amount for Amount for Amount for Amount for Amount fo Amount for
Current Year Previous Year Current Year Previous Year Currnt Year Preious Year
(f)(g)(h)(i)ù1 (k)
1 251,021,762 276,386,377 251,021,762 276,386,377 20,797,890 21,012,476
2 145,180,519 164,305,60 145,180,519 164,305,604 13,726,339 14,042,061
3
4 155,050,847 283,746,846 155,050,847 283,746,86 43,044,654 34,896,940
5 516,261 562,758 516,261 562,758 50,236 52,608
6
7
8 173,812 165,749 173,812 165,749
9
10
11
6,067,048 6,326,969 6,067,048 6,326,969 14,458,004
12
13
14
15
16 27,766 24,703 27,766 24,703
17
18 7,906,479 4,766,852 7,906,479 4,766,852
19 565,944,494 736,285,858 565,944,494 736,285,858
20
21 565,944,494 736,285,858 565,944,494 736,285,858
FERC FORM NO.2 (REV 12-07)Page 301
Name of Respondent
Avista Corporation
This '30rt Is:
(1) l!An Original
(2) A Resubmission
Gas Operation and Maintnance Expenses
Accunt
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
Line
No.
1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production
3 Manufactured Gas Production (Submit Supplemental Statement)
4 B. Natural Gas Production
5 B1. Natural Gas Production and Gathering
6 Operation
7 750 Operation Supervision and Engineering 0 0
8 751 Production Maps and Records 0 0
9 752 Gas Well Expenses 0 0
10 753 Field Lines Expenses 0 0
11 754 Field Compressor Station Expenses 0 0
12 755 Field Compressor Station Fuel and Power 0 0
13 756 Field Measuring and Regulating Station Expenses 0 0
14 757 Purifcation Expenses 0 0
15 758 Gas Well Royalties 0 0
16 759 Other Expenses 0 0
17 760 Rents 0 0
18 TOTAL Operation (Total of lines 7 thru 17)0 0
19 Maintenance
20 761 Maintenance Supervision and Engineering 0 0
21 762 Maintenance of Structures and Improvements 0 0
22 763 Maintenance of Producing Gas Wells 0 0
23 764 Maintenance of Field Lines 0 0
24 765 Maintenance of Field Compressor Station Equipment 0 0
25 766 Maintenance of Field Measuring and Regulating Station Equipment 0 0
26 767 Maintenance of Purification Equipment 0 0
27 768 Maintenance of Drillng and Cleaning Equipment 0 0
28 769 Maintenance of Other Equipment 0 0
29 TOTAL Maintenance (Total of lines 20 thru 28)0 0
30 TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29)0 0
FERC FORM NO.2 (12-96)Page 317
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04116/2010 End of 2009/04
Gas Operation and Maintenance Expenses(continued)
Line Account Amount for Amount for
No.Current Year Previous Year
(a)(b)(c)
31 82. Products Extraction
32 Operation
33 770 Operation Supervision and Engineering 0 0
34 771 Operation Labor 0 0
35 772 Gas Shrinkage 0 0
36 773 Fuel 0 0
37 774 Power 0 0
38 775 Materials 0 0
39 776 Operation Supplies and Expenses 0 0
40 777 Gas Processed by Others 0 0
41 778 Royalties on Products Extracted 0 0
42 779 Marketing Expenses 0 0
43 780 Products Purchased for Resale 0 0
44 781 Variation in Products Inventory 0 0
45 (Less) 782 Exracted Product Used by the Utilty-Credit 0 0
46 783 Rents 0 0
47 TOTAL Operation (Total of lines 33 thru 46)0 0
48 Maintenance
49 784 Maintenance Supervision and Engineering 0 0
50 785 Maintenance of Structures and Improvements 0 0
51 786 Maintenance of Extraction and Refining Equipment 0 0
52 787 Maintenance of Pipe Lines 0 0
53 788 Maintenance of Exracted Products Storage Equipment 0 0
54 789 Maintenance of Compressor Equipment 0 0
55 790 Maintenance of Gas Measuring and Regulating Equipment 0 0
56 791 Maintenance of Other Equipment 0 0
57 TOTAL Maintenance (Total of lines 49 thru 56)0 0
58 TOTAL Products Extraction (Total of lines 47 and 57)0 0
FERC FORM NO.2 (12-96)Page 318
Name of Respondent
Avista Corporation
This ~ort Is:
(1) ~An Original
(2) A Resubmission
Gas Operation and Maintenance Expenses(continued)
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
Line
No.
Accunt
59 C. Exploration and Development
60 Operation
61 795 Delay Rentals
62 796 Nonproductive Well Drillng
63 797 Abandoned Leases
64 798 Other Exploration
65 TOTAL Exploration and Development (Total of lines 61 thru 64)
66 D. Other Gas Supply Expenses
67 Operation
68 800 Natural Gas Well Head Purchases
69 800.1 Natural Gas Well Head Purchases, Intracompany Transfers
70 801 Natural Gas Field Line Purchases
71 802 Natural Gas Gasoline Plant Outlet Purchases
72 803 Natural Gas Transmission Line Purchases
73 804 Natural Gas City Gate Purchases
74 804.1 Liquefied Natural Gas Purchases
75 805 Other Gas Purchases
76 (Less) 805.1 Purchases Gas Cost Adjustments
77 TOTAL Purchased Gas (Total of lines 68 thru 76)
78 806 Exchange Gas
79 Purchased Gas Expenses
80 807.1 Well Expense-Purchased Gas
81 807.2 Operation of Purchased Gas Measuring Stations
82 807.3 Maintenance of Purchased Gas Measuring Stations
83 807.4 Purchased Gas Calculations Expenses
84 807.5 Other Purchased Gas Expenses
85 TOTAL Purchased Gas Expenses (Total of lines 80 thru 84)
o
o
o
o
o
o
o
o
o
o
0 0
0 0
0 0
0 0
0 0
383,241,588 600,873,113
0 0
0 0
20,256,209)20,372,022)
403,497,797 621,245,135
0 0
0 0
0 0
0 0
0 0
0 0
0 0
FERC FORM NO.2 (12-96)Page 319
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) DA Resubmission 04/1612010 End of 2009/04
Gas Operation and Maintenance Expenses(continued)
Line Accunt Amount for Amount for
No.Current Year Previous Year
(a)(b)(c)
86 808.1 Gas Withdrawn from Storage-Debit 46,430,654 42,570,383
87 (Less) 808.2 Gas Delivered to. Storage-Credit 28,417,046 60,553,881
88 809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit 0 0
89 (Less) 809.2 Deliveries of Natural Gas for Processing-Credit 0 0
90 Gas used in Utilit Operation-Credit
91 810 Gas Used for Compressor Station Fuel-Credit 0 0
92 811 Gas Used for Products Extraction-Credit 695,434 1,563,044
93 812 Gas Used for Other Utilty Operations-Credit 0 0
94 TOTAL Gas Used in Utiit Operations-Credit (Total of lines 91 thru 93)695,434 1,563,044
95 813 Other Gas Supply Expenses 1,744,919 1,709,497
96 TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95)422,560,890 603,408,090
97 TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96)422,560,890 603,408,090
98 2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES
99 A. Underground Storage Expenses
100 Operation
101 814 Operation Supervision and Engineering 614 20,862
102 815 Maps and Records 0 0
103 816 Wells Expenses 0 0
104 817 Lines Expense 0 0
105 818 Compressor Station Expenses 0 0
106 819 Compressor Station Fuel and Power 0 0
107 820 Measuring and Regulating Station Expenses 0 0
108 821 Purifcation Expenses 0 0
109 822 Exploration and Development 0 0
110 823 Gas Losses 0 0
111 824 Other Expenses 296,899 322,129
112 825 Storage Well Royalties 0 0
113 826 Rents 0 0
114 TOTAL Operation (Total of llnes of 101 thru 113)297,513 342,991
FERC FORM NO.2 (12-96)Page 320
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Gas Operaion and Maintenance Expenses(contnued)
Line Account Amount for Amount for
No.Current Year Previous Year
(a)(b)(c)
115 Maintenance
116 830 Maintenance Supervision and Engineering 0 0
117 831 Maintenance of Structures and Improvements 0 0
118 832 Maintenance of Reservoirs and Wells 0 0
119 833 Maintenance of Lines 0 0
120 834 Maintenance of Compressor Station Equipment 0 0
121 835 Maintenance of Measuring and Regulating Station Equipment 0 0
122 836 Maintenance of Purification Equipment 0 0
123 837 Maintenance of Other Equipment 316,063 272,006
124 TOTAL Maintenance (Total of lines 116 thru 123)316,063 272,006
125 TOTAL Underground Storage Expenses (Total oflines 114 and 124)613,576 614,997
126 B. Other Storage Expenses
127 Operation
128 840 Operation Supervision and Engineering 0 0
129 841 Operation Labor and Expenses 0 0
130 842 Rents 0 0
131 842.1 Fuel 0 0
132 842.2 Power 0 0
133 842.3 Gas Losses 0 0
134 TOTAL Operation (Total of lines 128 thru 133)0 0
135 Maintenance
136 843.1 Maintenance Supervision and Engineering 0 0
137 843.2 Maintenance of Structures 0 0
138 843.3 Maintenance of Gas Holders 0 0
139 843.4 Maintenance of Purification Equipment 0 0
140 843.5 Maintenance of Liquefaction Equipment 0 0
141 843.6 Maintenance of Vaporizing Equipment 0 0
142 843.7 Maintenance of Compressor Equipment 0 0
143 843.8 Maintenance of Measuring and Regulating Equipment 0 0
144 843.9 Maintenance of Other Equipment 0 0
145 TOTAL Maintenance (Total of lines 136 thru 144)0 0
146 TOTAL Other Storage Expenses (Total of lines 134 and 145)0 0
FERC FORM NO.2 (12-96)Page 321
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) nA Resubmission 04/16/2010 End of 2009/04
Gas Operation and Maintenance Expenses(continued)
Line Accunt Amount for Amount for
No.Current Year Previous Year
(a)(b)(c)
147 C. Liquefied Natural Gas Terminaling and Processing Expenses
148 Operation
149 844.1 Operation Supervision and Engineering 0 0
150 844.2 LNG Processing Terminal Labor and Expenses 0 0
151 844.3 Liquefaction Processing Labor and Expenses 0 0
152 844.4 Liquefaction Transportation Labor and Expenses 0 0
153 844.5 Measuring and Regulating Labor and Expenses 0 0
154 844.6 Compressor Station Labor and Expenses 0 0
155 84.7 Communication System Expenses 0 0
156 84.8 System Control and Load Dispatching 0 0
157 845.1 Fuel 0 0
158 845.2 Power 0 0
159 845.3 Rents 0 0
160 845.4 Demurrage Charges 0 0
161 (less) 845.5 Wharfage Receipts-Credit 0 0
162 845.6 Processing Liquefied or Vaporized Gas by Others 0 0
163 846.1 Gas Losses 0 0
164 846.2 Other Expenses 0 0
165 TOTAL Operation (Total of lines 149 thru 164)0 0
166 Maintenance
167 847.1 Maintenance Supervision and Engineering 0 0
168 847.2 Maintenance of Structures and Improvements 0 0
169 847.3 Maintenance of LNG Processing Terminal Equipment 0 0
170 847.4 Maintenance of LNG Transportation Equipment 0 0
171 847.5 Maintenance of Measuring and Regulating Equipment 0 0
172 847.6 Maintenance of Compressor Station Equipment 0 0
173 847.7 Maintenance of Communication Equipment 0 0
174 847.8 Maintenance of Other Equipment 0 0
175 TOTAL Maintenance (Total of lines 167 thru 174)0 0
176 TOTAL Liquefied Nat Gas Terminaling and Proc Exp (Total of lines 165 and 175)0 0
177 TOTAL Natural Gas Storage (Total of lines 125,146, and 176)613,576 614,997
FERC FORM NO.2 (12-96)Page 322
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da. Yr)
(2) riA Resubmission 04/1612010 End of 2009/04
Gas Operation and Maintenance Expenses(continued)
Line Accunt Amount for Amount for
No.Currnt Year Previous Year
(a)(b)(c)
178 3. TRANSMISSION EXPENSES
179 Operation
180 850 Operation Supervision and Engineering 0 0
181 851 System Control and Load Dispatching 0 0
182 852 Communication System Expenses 0 0
183 853 Compressor Station Labor and Expenses 0 0
184 854 Gas for Compressor Station Fuel 0 0
185 855 Other Fuel and Power for Compressor Stations 0 0
186 856 Mains Expenses 0 0
187 857 Measuring and Regulating Station Expenses 0 0
188 858 Transmission and Compression of Gas by Others 0 0
189 859 Other Expenses 0 0
190 860 Rents 0 0
191 TOTAL Operation (Total of lines 180 thru 190)0 0
192 Maintenance
193 861 Maintenance Supervision and Engineering 0 0
194 862 Maintenance of Structures and Improvements 0 0
195 863 Maintenance of Mains 0 0
196 864 Maintenance of Compressor Station Equipment 0 0
197 865 Maintenance of Measuring and Regulating Station Equipment 0 0
198 866 Maintenance of Communication Equipment 0 0
199 867 Maintenance of Other Equipment 0 0
200 TOTAL Maintenance (Total of lines 193 thru 199)0 0
201 TOTAL Transmission Expenses (Total of lines 191 and 200)0 0
202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and Engineering 968,934 939,535
205 871 Distribution Load Dispatching 0 0
206 872 Compressor Station Labor and Expenses 0 0
207 873 Compressor Station Fuel and Power 0 0
FERC FORM NO.2 (12-96)Page 323
Name of Respondent 'This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009104
Gas Operation and Maintenance Expenses(continued)
Line Accunt Amount for Amount for
No.Current Year Previous Year
(a)(b)(c)
208 874 Mains and Services Expenses 3,109,908 2,866,257
209 875 Measuring and Regulating Station Expenses-General 438,100 439,736
210 876 Measuring and Regulating Station Expenses-Industrial 9,227 36,822
211 877 Measuring and Regulating Station Expenses-City Gas Check Station 214,489 221,031
212 878 Meter and House Regulator Expenses 1,501,542 1,641,297
213 879 Customer Installations Expenses 2,477,086 2,111,891
214 880 Other Expenses 2,461,299 2,113,941
215 881 Rents 24,847 28,691
216 TOTAL Operation (Total of lines 204 thru 215)11,205,432 10,399,201
217 Maintenance
218 885 Maintenance Supervision and Engineering 198,793 156,885
219 886 Maintenance of Structures and Improvements 0 0
220 887 Maintenance of Mains 2,324,454 1,976,738
221 888 Maintenance of Compressor Station Equipment 0 0
222 889 Maintenance of Measuring and Regulating Station Equipment-General 239,035 207,875
223 890 Maintenance of Meas. and Reg. Station Equipment-Industrial 274,546 231,212
224 891 Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 60,597 29,819
225 892 Maintenance of Services 1,206,293 897,764
226 893 Maintenance of Meters and House Regulators 1,545,122 1,036,861
227 894 Maintenance of Other Equipment 201,034 143,651
228 TOTAL Maintenance (Total oflines 218 thru 227)6,049,874 4,680,805
229 TOTAL Distribution Expenses (Total of lines 216 and 228)17,255,306 15,080,006
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 503,024 433,739
233 902 Meter Reading Expenses 1,757,134 1,523,098
234 903 Customer Records and Collection Expenses 6,936,961 5,989,706
FERC FORM NO.2 (12-96)Page 324
Name of Respondent
Avista Corporation
This ~ort Is:
(1) !!An Original
(2) A Resubmission
Gas Operation and Maintenance Expenses(continued)
Date of Report
(Mo, Da, Yr)
04/1612010
Year/Period of Report
End of 2009/04
(a)
Amount for
Currnt Year
(b)
Amount for
Previous Year
(c)
Line
No.
Accunt
235 904 Uncollectible Accounts
236 905 Miscellaneous Customer Accunts Expenses
237 TOTAL Customer Accunts Expenses (Total of lines 232 thru 236)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision
241 908 Customer Assistance Expenses
242 909 Informational and Instructional Expenses
243 910 Miscellaneous Customer Service and Informational Expenses
244, TOTAL Customer Service and Information Expenses (Total of lines 240 thru 243)
245 7. SALES EXPENSES
2,423,718
216,923
11,837,760
1,703,343
130,303
9,780,189
0 0
12,488,656 9,408,812
66,884 211,834
90,480 91,140
12,646,020 9,711,786
246 Operation
247 911 Supervision
248 912 Demonstrating and Sellng Expenses
249 913 Advertising Expenses
250 916 Miscellaneous Sales Expenses
251 TOTAL Sales Expenses (Total of lines 247 thru 250)
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
0 0
497,304 455,305
121,787 144,272
190,057 131,256
809,148 730,833
253 Operation
254 920 Administrative and General Salaries
255 921 Offce Supplies and Expenses
256 (Less) 922 Administrative Expenses Transferred-Credit
257 923 Outside Services Employed
258 924 Propert Insurance
259 925 Injuries and Damages
260 926 Employee Pensions and Benefits
261 927 Franchise Requirements
262 928 Regulatory Commission Expenses
263 (Less) 929 Duplicate Charges-Credit
264 930.1 General Advertising Expenses
265 930.2Miscellaneous General Expenses
266 931 Rents
267 TOTAL Operation (Total of lines 254 thru 266)
268 Maintenance
269 932 Maintenance of General Plant
270 TOTAL Administrative and General Expenses (Total of lines 267 and 269)
271 TOTAL Gas O&M Expenses (Total of lines 97,177,201,229,237,244,251, and 270)
8,396,564 7,455,414
1,544,167 1,493,583
31,272 24,846
4,291,825 4,208,920
433,137 335,230
1,111,478 2,179,076
254,246 304,978
0 0
2,131,461 2,004,112
0 0
94,868 1,060
1,278,134 1,371,393
140,882 236,320
19,645,490 19,565,240
2,435,916 2,375,293
22,081,406 21,940,533
487,804,106 661,266,434
FERC FORM NO.2 (12-96)Page 325
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Other Gas Supply Expenses (Account 813)
1. Report other gas supply expenses by descrptive tites that clearly indicae the nature of such expenses. Show maintenance expense, revaluation of monthly encrchments
rerded in Accunt 117.4, and losses on settements of imbalances and gas losses not associated with storage separaely. Indicate the functonal classifcation and purpe of propert
to which any expenses relate. List separately items of $250,000 or more.
Description Amount
Line (in dollars)
No.(a)(b)
1 Gas Resourc Management
2 Labor 689,982
3 Labor Loading 607,049
4 Oter Expenses (Professional Service, Travel, Offce Supplies, Subscriptions & Training)160,766
5
6 Amortizations of Gas operations Database 55,388
7
8 Creit Exposure Reserve
9
10
11 Regulatory Affairs
12 Labor 124,869
13 Labor Loading 106,626
14 Other Expenses (Travel)241
15
16
17
18
19
20
21
22
23
24
25 Total 1,744,921
FERC FORM NO.2 (12-96)Page 334
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation -(1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Miscellaneous General Expenses (Account 930.2)
1. Provide the infonnation requesed below on miscellaneous general expenses.
2. For Oter Expenses, sho the (a) purpe, (b) repient and (c) amount of such itms. Ust separately amounts of $250,00 or mor hower, amonts les than $250,000 may be
groupe if the number of items of so grouped is shown.
Descrption Amount
Line (in dollars)
No.(a)(b)
1 Industry association dues.~2 Experimental and general research expenses.
a. Gas Research Institute (GRI)
b. Other -.3 Publishing and distributing information and reports to stockholders, trustee, registrar, and transfer
agent fees and expenses, and other expenses of servicing outstanding securities of the respondent 48,34
4 Other expenses
5 Directors Expenses 206,100
6 Miscellaneous General Expenses 499,121
7 commumity Relations 184,655
8 Educational - Informational 11,222
9 Other Misceallaneous General Expenses 42,48
10 Other Miscellaneous Labor
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Total 1,278,134
FERC FORM NO.2 (12-96)Page 335
This Page Intentionally Left Blank
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 _End of 2009/04
Depreciation, Depletion and Amortzation of Gas Plant (Acet 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
Acquisition Adjusbnents)
1. Report in Seon A the amounts of depreaton expense, depletion and amorttion for the accunts indicted and classifed acrding to the plant functal groups shon.
2. Report in Secon B, column (b) all depreiable or amortzable plant balance to which rate are applied and show a composite total. (If mo desirable, rert by plant accunt
subaccunt or functnal classifcations other than those pr-printe in column (a). Indicate in a fotnote th manner in which column (b) balances are
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Amortzation Amortzation and Amortzation of
Expense for Depletion of Underground Storage
Line Depreation Asset Proucing Natural Land and Land
No.Functonal Classifcation Expense Retirement Gas Land and Land Rights
(Accunt 403)Costs Rights (Accunt 404.2)
(Accunt (Accunt 404.1)
(a)(b)403.1)(c)(d)(e)
1 Intangible plant 227 124,761
2 Proucton plant manufcture gas
3 Proucton and gathering plant natural gas
4 Prouct extcton plant
5 Underground gas storage plant 653,034
6 Oter storage plant
7 Base load LNG terminaling and proessing plant
8 Transmission plant
9 Distrbuton plant -12,747,783
10 General plant 658,407
11 Common plant-gas 1,921,589 1,543,020
12 TOTAL 15,980,813 227 1,667,781
FERC FORM NO.2 (12-96)Page 336
Name of Respondent This oo0rt Is:Date of Report Year/Period of Report
Avista Corporation (1) , X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04116/2010 End of 2009/04
Depreciation, Depletion and Amortization of Gas Plant (Acet 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
Acquisition Adjustments) (continued)
obtained. If average balances are used, state the meth of averaging used. For column (c) report available information for each plant functonal classifcaon liste in column (a). If
composite depreciation accounting is used. report available information called for in columns (b) and (c) on this basis. Wher the unit-of-producton method is used to determine
depreciation charges, show in a fotnote any revisions made to estimated gas reserves.
3. If provisions for depreciation were made during the year in additon to depreiation provided by application of reported rates, ste in a footnote the amounts and nature of the
provisions and the plant items to which related.
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Amortzation of Amortiztion of
Oter Limited-term Oter Gas Plant Total
Line Gas Plant (Accunt 405)(b to g)
No.(Account 404.3)Functonal Classifcation
(I)(g)(h)(a)
1 124,988 Intangible plant
2 Proucton plant manufctured gas .
3 Proucton and gathering plant natural gas
4 Prouct extcton plant
5 653,034 Underground gas storage plant
6 Oter storage plant
7 Base load LNG terminaling and procsing plant
8 Transmission plant
9 12,747,783 Distrbuton plant
10 4,839 663,246 General plant
11 2,880 3,467,489 Common plant-gas
12 7,719 17,656,540 TOTAL
FERC FORM NO.2 (12-96)Page 337
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Depreciation, Depletion and Amortzaion of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of
AcquIsition Adjustments) (continued)
4. Add rows as necessary to copletely report all data. Number the additonal rows in sequence as 2.01, 2.02, 3.01, 3.02, etc.
Section B. Factors Used in estimatIng Depreciation Charges
Applied Depreciaton
Line Plant Bases or Amortization Rates
No.Functonal Classifcation (in thousands)(percent)
(a)(b)c
1 Proucton and Gathering Plant
2 Ofshore (footnote details)
3 Onshore (footnote details)
4 Underround Gas Storage Plant (footnote details)
5 Transmission Plant
6 Ofhore (footnote details)
7 Onshore (footnote details)
8 General Plant (footnote details)
9
10
11
12
13
14
15
FERC FORM NO.2 (12-96)Page 338
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Partculars Concerning Certin Income Deductions and Interest Charges Accounts
Report the infonnation speifed belo, in the order given, for the respectve incoe deducton and interet charges accunts.
(a) Miscellaneous Amortzation (Accunt 425)-Decribe the nature of items included in this accunt the contr account charged, the total of amortzation charges for the year, and Die
period of amortization.
(b) Miscellaneous Income Deductons-Report the nature, payee, and amount of other income deductons for the year as require by Accounts 426.1, Donations; 426.2, Life Insurance;
426.3, Penalties; 426.4, Expenditures for Certin Civic, Political and Relate Activities; and 426.5, Oter Deductons, of the Unifonn System of Accunts. Amounts of less than $250,000
may be grouped by classes within the above accunts.
(c) Interet on Debt to Associated Companies (Account 430)-For each associated company that incrred interest on debt during the year, indicate the amount and intere rate
repeely for (a) advances on notes, (b) advance on open accunt. (c) notes payable, (d) accunts payable, and (e) other debt. and total interet. Explain the nature of other debt on
which interest was incurred during the year.
(d) Other Intert Expense (Accunt 431) - Report details including Die amount and interest rate for other interest charges incurred during the year.
Line Item Amount
No.(a)(b)
1 Accunt 425 - Misc. Amortzation
2 Natural gas plant acquistion adjustment frm 1991 acquisiton of CP National
3 Oreon and California distribution propertes Contr accunt 115 1,110,572
4 Total 1,110,572
5 Accunt 426.1 Donations
6 Projec Share 433,591
7 Items under $250,000 971,418
8 Total 1,405,009
9 Accunt 426.2 Life Insurance
10 Offcers life insurance (593,469)
11 SERP 1,929,642
12 Total 1,336,173
13 Accunt 426.3 Penalties
14 Item under $250,000 (19,900)
15 Total (19,900)
16 Accunt 426.4 Expenditures for Certain Civic, Political and Related Actvities
17 Items under $250,000 1,347,809
18 Total 1,347,809
19 Accunt 426.5 Oter deductons
20 Executie Deferr Compensation 1,569,914
21 Items under $250,000 116,506
22 Total 1,686,420
23 Accunt 430 Interest on debt to associated companies
24 Avista Capital" (variable rate ranged from 1.22 to 3.06 percent)952,275
25 AVA Capitl Trust III (fixed rate of 6.5 percent)
,1,005,160
26 Avista Capitl 187,069
27 Total 2,144,504
28 Account 431 Oter Intert Expense
29 Interest on natural gas deferrls 1,154,715
30 Interest on committed line of crdit (notes payable)2,532,762
31 Intere on BPB reidential exchange 46,668
32 Interest on customer deposit 78,601
33 Interest frm IRS (488,974)
34 Oter 110,495
35 Total 3,434,267
FERC FORM NO.2 (12-96)Page 340
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Regulatory Commission Expenses (Account 928)
1. Repor below details of reulatory commission expenses incurr during the currnt year (or in previous years, ff being amortzed) relating to foal ca befor a reulatory bo,
or caes in which such a body was a part.
2. In column (b) and (c), indicate whether the expenses were assesed by a reulatory body or were otherwse incrrd by the utilit.
Description Deferred in
Line (Furnish name of reulatory commission Assessed by Expenses Total Accunt 182.3
No.or body, the docket number, and a Regulatory of Expenses at Beginning
description of the case.)Commission Utility to Date of Year
(a)(b)(c)(d)(e)
1 Federal Energy Regulatory Commission
2 Charges include annual fee and license fee
3 for the Spokane River Project, the Cabinet
4 Gorge Project and Noxon Rapids Project
2,174,407 200,306 2,374,713
5
6 Washington Utilties and Transportation Commission
7 Includes annual fee and various other electric dockets
849,719 398,791 1,248,510
8
9 Includes annual fee and various other natural gas
dockets 437,753 250,746 688,499
10
11 Idaho Public Utilties Commission
12 Includes annual fee and various other electric dockets
366,389 221,758 588,147
13
14 Includes annual fee and various other natural gas
dockets 153,853 121,621 275,474
15
16 Public Utilty Commission of Oregon
17 Includes annual fee and various other dockets
496,247 365,904 862,151
18
19 Not directly assigned electric
788,336 788,336
20 Not directly assigned natural gas
305,338 305,338
21
22
23
24
25 Total 4,478,368 2,652,800 7,131,168
FERC FORM NO.2 (12-96)Page 350
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) CiA Resubmission 04/1612010 End of 2009/04
Regulatory Commission Expenses (Account 928)
3. Show in column (k) any expenses incurrd in prior years that are being amortzed. List in column (a) th period of amortization.
4. Identi separately all annual charge adjustments (ACA).
5. List in column (n, (g), and (h) expenses incurrd during year which were charges currntly to income, plant or other accounts.
6. Minor items (less than $250,000) may be grouped.
Expenses Expenses Expenses Expenses Amortized Amortzed
Incurrd Incurrd Incurr Incurred During Year During Year
Line During Year During Year During Year During Year Deferred in
No.Charged Charged Charged Accunt 182.3
Currentl To Currently To Currently To Deferred to Contra Amount End of Year
Accunt Accunt
Departent Accunt No. Amount 182.3
In (g)(h)(i)OJ (k)(I)
1
2
3
4
Electrc 928 2,374,713
5
6
7
Electrc 928 1,248,510
8
9
Natural gas 928 688,99
10
11
12
Elecc 928 588,147
13
14
Natural gas 928 275,474
15
16
17
Natural gas 928 862,151
18
19
Elecc 928 788,336
20
305,338
21
22
23
24
25 7,131,168
FERC FORM NO.2 (12-96)Page 351
Name of Respondent This wort Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/1612010 End of 2009/04
Employee Pensions and Benefits (Account 926)
1. Report below the items contained in Account 926, Employee Pensions and Benefis.
Line Expense Amount
No.(a)(b)
1 Pensions - defined benefi plans 50,589,064
2 Pensions - other
3 Post-retirement benefits other than pensions (PBOP)
4 Post- employment benefi plans
5 Oter (Specif)
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
Total I 50,589,064
FERC FORM NO.2 (NEW 12-07)Page 352
This Page Intentionally Left Blank
This 'i0rt Is:
(1) L!An Original
(2) A Resubmission
Distnbution of Salanes and Wages
Report below the disbuon of totl salaries and wages for th year. Segreate amounts orinally charged to clering accunts to Utilit Departents, Constctn, Plant Removals
and Oter Accunts, and enter such amounts in the appropriate lines and columns provided. Salaries and wages biled to the Respondent by an afliated company must be assigned to
the partcular operating functon(s) relating to the expnses.
In detennining this segreation of salaries and wages originally charged to clearing accunts, a method of approximation giving substantially corrct result may be used. When
reporting detail of other accounts, enter as many row as necessary numbered sequentially strtng wit 75.01, 75.02, etc.
Name of Respondent
Avista Corporation
Date of Report
(Mo, Da, Yr)
0411612010
YearlPeriod of Report
End of 2009/04
Line
No.
Classification Direct Payroll
Distrbuton
Payrol Billed
by Affliated
Companie
Alloction of
Payroll Charged
for Clearing
Accunts
(d)
Total
(a)(e)
1 Elecc
2 Operation
3 Producton
4 Transmission
5 Distrbution
6 Customer Accunts
7 Customer Service and Infonnatinal
8 Sales
9 Administrative and General
10 TOTAL Operation (Total of lines 3 thru 9)
11 Maintenance
12 Proucton
13 Transmission
14 Distrbutin
15 Administrtive and General
16 TOTAL Maintenance (Totl of lines 12 thru 15)
17 Total Operation and Maintenance
18 Producton (Total of lines 3 and 12)
19 Transmission (Total of lines 4 and 13)
20 Distrbutin (Total of line 5 and 14)
21 Customer Accounts (line 6)
22 Customer Service and Infonnational (line 7)
23 Sales (line 8)
24 Administrtive and General (Total of lines 9 and 15)
25 TOTAL Operation and Maintenance (Total of lines 18 thru 24)
26 Gas
27 Operation
28 Proucton - Manufactred Gas
29 Proucton - Natural Gas(lncluding Exploratin and Development)
30 Other Gas Supply
31 Storage, LNG Tenninaling and Proessing
32 ' Transmission
33 Distrbution
34 Customer Accunts
35 Customer Service and Infonnational
36 Sales
37 Administrative and Generl
38 TOTAL Operatin (Total of lines 28 thru 37)
39 Maintenance
40 Proucton - Manufacture Gas
41 Proucton - Natural Gas(lncluding Exploration and Development)
42 Other Gas Supply
43 Storage, LNG Tenninaling and Proesing
44 Transmission
45 Distrbuton
9,261,834
2,458,77
4,278,181
6,087,189
302,412
450,051
12,850,633
35,689,074
9,261,834
2,458,77
4,278,181
6,087,189
302,412
450,051
21,548,362
44,386,803
2,168,038
828,302
4,167,758
2,168,038
828,302
4,167,758
7,164,098
11,429,872
3,287,076
8,445,939
6,087,189
302,412
450,051
12,850,633
42,853,172
8,697,729
8,697,729
11,429,872
3,287,076
8,445,939
6,087,189
302,412
450,051
21,548,362
51,550,901
814,850 814,850
4,140,801 4,140,801
2,657,558 2,657,558
158,315 158,315
173,349 173,349
4,618,054 7,747,778
12,562,927 15,692,651
488,882
2,393,283
488,882
2,393,283
FERC FORM NO.2 (REVISED)Page 354
Name of Respondent
Avista Corporation
Line
No.
Classifcation
This ~ort Is:
(1) l!An Original
(2) A Resubmission
Distribution of Salaries and Wages (continued)
Payroll Biled
by Affliated
Companies
Date of Report
(Mo, Da, Yr)
04/16/2010
YearlPeriod of Report
End of 2009/04
(c)
Allocation of
Payroll Charged
for Clearing
Accunts
(d)
TotlDire Payroll
Distributon
(a)(b)(e)
46 Administrtie and General
47 TOTAL Maintenance (Totl of lines 40 thru 46)
48 Gas (Continued)
49 Total Operation and Maintenance
50 Proucton - Manufacture Gas (Total of lines 28 and 40)
51 Producton - Natural Gas (Including Expl. and Dev.llll. 29 and 41)
52 Other Gas Supply (Total of lines 30 and 42)
53 Storage, LNG Terminaling and Prossing (Total of ii. 31 and 43)
54 Transmision (Total of lines 32 and 44)
55 Distrbution (Total of lines 33 and 45)
56 Customer Accounts (Total of line 34)
57 Customer Service and Informational (Total of line 35)
58 Sales (Total of line 36)
59 Administrtive and General (Total of lines 37 and 46)
60 Total Operation and Maintenance (Total of lines 50 thru 59)
61 Oter Utilit Departents
62 Operation and Maintenance
63 TOTAL ALL Utilit Dept (Total of lines 25, 60, and 62)
64 Utility Plant
65 Constructon (By Utility Departents)
66 Electric Plant
67 Gas Plant
68 Oter
69 TOTAL Constrcton (Total of lines 66 thru 68)
70 Plant Removal (By Utilit Departnts)
71 Electc Plant
72 Gas Plant
73 Other
74 TOTAL Plant Removal (Total of lines 71 thru 73)
75 Oter Accounts (Specif) (footnote details)
76 TOTAL Oter Accunts
77 TOTAL SALARIES AND WAGES
2,882,165 2,882,165
814,850 814,850
488,882
6,534,084
2,657,558
158,315
173,349
4,618,054
15,445,092
3,129,724
3,129,724
488,882
6,534,084
2,657,558
158,315
173,349
7,747,778
18,574,816-- - - - -- -- -- ---- -
1,218,197
25,845,063
25,845,063
118,073,939
242,64
( 22,674,078)
( 22,674,078)
( 3,968,59)
1,460,837
3,170,985
3,170,985
114,105,480
FERC FORM NO.2 (REVISED)Page 355
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/1612010 End of 2009/04
Charges for Outside Professional and Other Consulttive Services
1. Report the infonmaton speed beow fo all charges made during the year included in any accunt (including plant accunts) for outide consultave and othr prfesional services.
These service include rate, managment, constrctn, engineering, reearch, financial, valuation, legal, accounting, purchasing, adverting,labo relatons, and public relas,
rendere for the repondent under wrin or oi arrngement, for which aggreat paments were made during the year to any corpration partership, oraniztin of any kind, or
individual (other than for service as an employee or for payments made fo medical and related services) amounting to mor than $250,000, including payments for leislatie service,
except those which should be reported in Account 426.4 Expenditures for Certin Civic, Political and Relate Actvities.
(a) Name of person or organization rendering servce.
(b) Total charges for the year.
2. Sum under a description 'Oter", all of the aformentioned services amounting to $250,000 or less.
3. Total under a descrption 'Total', the total of all of the aforementioned services.
4. Charges for outside profesional and other consultatie services provided by associated (affliated) companies should be excluded frm this schedule and be reported on Page 358,
according to the instrctons for that schedule.
Descrpton Amount
Line (in dollars)
No.(a)(b)
1 AT&T 299,664
2 Brown Contrctng & Development 515,504
3 Cerium Network 1,035,436
4 Coffman Engineers 305,065
5 Columbia Grid 380,314
6 Davis Wright Tremaine LLP 1,053,362
7 Dewey & Leboeuf LLP 966.927
8 Gard Communications 352.822
9 Gissespie Prudhon & Associates Inc 456,878
10 Golder Associates Inc 280,572
11 Hanna & Associates Inc 250,065
12 Hickey Brothers Fisheries LLC 262,200
13 Idaho Dept of Fish & Game 267,386
14 Intervoice 1.011,871
15 Jaco Constrcton Inc 557,341
16 Mckinstr Essention Inc 2,365,687
17 NRC Environmental Servic 1,016.027
18 Pacifc Gas & Elecc Company 298,860
19 Paine Hamblen LLP 475,012
20 Poe Asphalt Paving Inc 1,064,269
21 Pro Building Systems 415,255
22 Regulus Integrated Solutins LLC 394,541
23 Stoel Rives LLP 264,736
24 Thomson Reuters 575,000
25 Twisted Pines Landscape Design & Co 285,900
26 Washington Group InU Inc 312,956
27 Western Eleccit 528,533
28 Deloile & Touche LLP 1,354,915
29 Regulus Integrated Solutions 275.866
30 Oter 12,894,953
31
32 Total 30,517,917
33
34
35
FERC FORM NO.2 (REVISED)Page 357
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This ~ort Is:
(1) I!An Original
(2) A Resubmission
Gas Storage Projects
1. Report injectons and witdraals of gas for all storae projec used by repondnt
Date of Report
(Mo, Da, Yr)
04/16/2010
Year/Period of Report
End of 2009/04
(a)
Gas
Belonging to
Respondent
(Ot)
(b)
Gas
Belonging to
Oters
(Dth)
(c)
Total
Amount
(Dth)
Line
No.
Item
STORAGE OPERATIONS (in Dth)
1 Gas Delivered to Storage
2 January
3 February
4 Marc
5 April
6 May
7 June
8 July
9 August
10 September
11 October
12 November
13 Decmber
14 TOTAL (Total of lines 2 thru 13)
15 Gas Witdran from Storge
16 January
17 February
18 March
19 April
20 May
21 June
22 July
23 August
24 September
25 October
26 November
27 Decmber
28 TOTAL (Total of lines 16 thru 27)
- - -- - -- --- -- -- - -- -
(d)
39,824 39,824
13,524)13,524)
77,638 771,638
1,216,857 1,216,857
2,535,877 2,535,87
2,490,086 2,490,086
304,878 30,878
424,156 424,156
1,690,451 1,690,451
145,560 145,560
198,448 198,48
111,889 111,889
9,916,140 9,916,140
1,184,133 1,184,133
2,17,339 2,17,339
622,875 622,875
256,834 256,834
2,501 2,501
173,367 173,367
1,190,023 1,190,023
339,003 339,003
1,354,123 1,354,123
30,000 30,000
314,179 314,179
1,801,664 1,801,664
9,446,041 9,446,041
FERC FORM NO.2 (12-96)Page 512_
Name of Respondent This oo0rt Is:Date of Report YearlPeriod of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Gas Storage Projects
1. On line 4, enter the total storge capacity certficated by FERC.
2. Report total amount in Dt or other unit, as applicable on lines 2, 3. 4, 7. If quantity is coverted fr Mel to Dth, provide conversion factor in a footnote.
Line Item Total Amount
No.(a)(b)
STORAGE OPERATIONS
1 Top or Working Gas End of Year 6,113,053
2 Cushion Gas (Including Native Gas)7,730.668
3 Total Gas in Reservoir (Total of line 1 and 2)13,843,721
4 Certficated Storae Capacit 15,631,473
5 Number of Injecton - Withdrawal Wells 54
6 Number of Observation Wells 48
7 Maximum Days' Withdrawal fr Storage 346,212
8 Date of Maximum Days' Withdrawal 121812009
9 LNG Terminal Companies (in Dt)
10 Number of Tanks
11 Capacity of Tanks
12 LNG Volume
13 Recived at 'Ship Rail'
14 Transfer to Tanks
15 Witdrawn from Tanks
16 'Boil Off Vaporizaton Loss
FERC FORM NO.2 (12-96)Page 513_
Name of Respondent This wort Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) riA Resubmission 04/1612010 End of 2009/04
Auxilary Peaking Facilities
1. Report below auxilary faciliti of th repondent for meeting seasonal pek demand on the repondents system, such as underground storae projec, liquefied petrleum gas
installations, gas liquefacton plants, oil gas set, etc.
2. For column (c), for underround storage project, report the delivery capacit on February 1 of the heatng season overlapping the year-end for which this report is submited.
For other facilties, repo the rated maximum daily delivery capacities.
3. For column (d), include or exclude (as appropriate) the cost of any plant used jointly wit another facilit on the basis of predominant use, unless the auxilary peaking facilty is a
separate plant as contemplated by general instrcton 12 of the Unifonn System of Accounts.
Maximum Daily Cost of Was Facilit
Loction of Type of Delivery Capacity Facilty Operated on Day
Line Facilit Facilit of Facilit (in dollars)of Highest
No.Dth Transmission Peak
(a)(b)(c)(d)Delivery?
1
2 Chehalis, Washington Underround Natural Gas 268,667 30,546,364 Yes
3 Storage Field
4 Washington & Idaho Supply
5
6 Chehalis, Washington Underground Natural Gas 26,000 4,843,363 Yes
7 Storage Field
8 Oreon Supply
9
10 Chehalis, Washington Underground Natural Gas 2,623 ~Yes
11 Storage Field
12 Oreon Supply
13
14 Mist, Oreon Underground Natural Gas 15,000 ~Yes
15 Storage Field
16 Oreon Supply
17 ~18 Rock Springs, Wyoming Underground Natural Gas 186,125 Yes
19 Storage Field
20 Washington & Idaho Supply
21 -22 Rock Springs, Wyoming Underground Natural Gas 63,875 No
23 Storage Field
24 Washington & Idaho Supply
25
26
27
28
29
30
FERC FORM NO.2 (12-96)Page 519
Name of Respondent This oo0rt Is:Date of Report Year/Period of Report
Avista Corporation (1) X An Original (Mo, Da, Yr)
(2) FiA Resubmission 04/16/2010 End of 2009/04
Gas Account. Natural Gas
1. The purpse of this schedule is to accunt for the quantity of natral gas received and delivered by the respondent
2. Natural gas mens eithr natura gas unmixed or any mixture of natural and manufacre gas.i
3. Enter in column (c) the year to date Dlh as report in the schedules indicate for th üems of receipts and deliveries.
4. Enter in column (d) the respecve quartets Dt as reported in the schedules indicated for the üems of reipts and deliveris.
5. Indica in a fotnote the quantities of bundled sals and transportion gas and speci the line on which such quantities are listed.
6. If the repondent operate tw or more systems which are not intercnnect, submit separate pages to this purpose.
7. Indicte by fotnote the quantities of gas not subject to Commission reulaon which did not incur FERC reulato costs by showing (1) the local distrbutin volumes another jurisdictnal pipeline delivered 10 the
local distrbution company porton of the reportng pipeline (2) the quantities that the reportng pipeline transport or sold through it local distrbutin faciltis or intrtate facilitis and which the reportng pipeline
reived through gatering facilties or intrtate faclities, but not through any of th interstate portn of the reportng pipeline, and (3) the gatering line quantities that were not destined for interstal markt or that
were not transported through any interstate portn of the reportng pipeline.
8. Indicate in a fotnote the specifc gas purchase expense acount(s) and relatd to which the aggreate volumes reported on line NO.3 relate.
9. Indicat in a fotnote (1) the system supply quantitis of gas that are store by the reportng pipeline, during the reportng year and also reported as sales,transporttin and compression volumes by the reportng
pipeline during the same reporting year, (2) the system supply quanliies of gas that are store by th reportng pipeline during the reportng year which the reportng pipeline intends to sell or transport in a future
reportng year, and (3) contrt storage quantities.
10. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's totallrnsporttion figure. Add additnal informatn as necssary to the
footnotes.
Ref. Page No.Total Amount of Current 3 nfnths
Line Item ofFERCFonn Dth Ended Amount of Dt
No:Nos.21-A Year to Date Quarterly Only
(a)(b)(c)(d)
01 Name of System:
2 GAS RECEIVED
3 Gas Purchases (Accounts 80ll05)79,717,691 19,870,742
4 Gas of Others Received for Gathering (Account 489.1)303
5 Gas of Oters Received for Transmission (Accunt 489.2)305
6 Gas of Oters Recived for Distrbution (Accunt 489.3)301 14,458,004 3,910,620
7 Gas of Oters Received for Contrct Storage (Accunt 489.4)307
8 Exchanged Gas Recived frm Oters (Accnt 806)328
9 Gas Recived as Imbalance (Accunt 806)328 (62,096)(137,362)
10 Receipts of Respondenfs Gas Transported by Others (Account 858)332
11 Oter Gas Witdrawn frm Storage (Explain)(470,099)1,689,946
12 Gas Recived from Shippers as Compresor Station Fuel
13 Gas Received from Shippers as Lost and Unaccunted for
14 Oter Receipts (Specify) (footnote details)
15 Total Receipts (Total of lines 3 thru 14)93,643,500 25,333,946
16 GAS DELIVERED
17 Gas Sales (Accunts 480-484)34,574,465 12,404,433
18 Deliveries of Gas Gathered for Oters (Accunt 489.1)303
19 Deliveries of Gas Transported for Others (Accunt 489.2)305
20 Deliveries of Gas Distrbuted for Others (Accunt 489.3)301 14,458,004 3,910,620
21 Deliveries of Contrct Storage Gas (Accunt 489.4)307
22 Exchange Gas Delivere to Oters (Account 806)328
23 Gas Delivered as Imbalance (Accnt 806)328
24 Deliveries of Gas to Oters for Transporttion (Account 858)332 43,044,654 8,400,848
25 Oter Gas Delivered to Storage (Explain)
26 Gas Used for Compresor Station Fuel 509 1,566,377 618,045
27 Oter Deliveries (Speify) (footnote details)
28 Total Deliveries (Total of lines 17 thru 27)93,643,500 25,333,946
29 GAS UNACCOUNTED FOR
30 Proucton System Losses
31 Gathering System LosseS
32 Transmission System Losses
33 Distributon System Losses
34 Storage System Losses
35 Other Losses (Speif) (footnote detils)
36 Total Unaccunted For (Total of lines 30 thru 35)
37 Total Deliveries & Unaccunted For (Total of lines 28 and 36)93,643,500 25,333,946
FERC FORM NO.2 (REV 12-07)Page 520
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/1612010 2009/04
FOOTNOTE DATA
\Schedule Page: 103 Line No.: 3 Column: d
100 percent owned by Advantage IQ
I FERC FORM NO.2 (12-96) Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) is An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
!Schedule Page: 107 Line No.: 1 Column: 1
Closed on December 3, 2009, to pay the December 15, 2009, dividend.
I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
Column: c
Beg Ba1228,174,179
+ line 9 14,389,324
- line 14 5,574,424
+ line 16 18,361
, I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Oat Yr)
I (2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
¡Schedule Page: 250 Line No.: 2 Column: i
Restricted Shares
Restrcted shares vest in equal thirds each year over a thee-year period and are payable in A vista Corp. common stock at the end of
each year if the service condition is met. In addition to the service condition, the Company must meet a retu on equity taget in order
for the CEO's restricted shares to vest. During the vesting period, employees are entitled to dividend equivalents which are paid when
dividends on the Company's common stock are declared. Restricted stock is valued at the close of market of the Company's common
stock on the grant date. The weighted average remaining vesting period for the Company's restricted shares outstading as of
December 31, 2009 was one year. The fol1owing table sumarizes restrcted stock activity for the years ended December 31:
2009 2008 2007
Shares vested (14,36
8)
(19,96
7)
Weighted average fair value at grant date $ 20.05 $ 25.60
Intrinsic value, unvested shares at end of year (in
thousands)$ 1,552 $ 1,084 $ 606
The company has 1,250,000 shares available to be issued under a periodic offering program or continuous offerig program. This
program gives the company the abilty to from time to time though BNYCM, to issue shares into the market. The original amount
of shares authorized by State of Oregon's Public Utilty Commission, Washington Utilities and Transporttion Commission, and the
Idaho Public Utilties Commission, 2,000,000 shares with ongoing authorization until the 2,000,000 shares have been exhausted.
The company has fuher authorization from the State of Oregon's Public Utilty Commission, Washington Utilties and
Tranportation Commission, and the Idaho Public Utilties Commission to issue 5,000,000 milion shares. In 2008 the company issued
3,162,500 shares and now has 1,837,500 shares remaining and available for issuance.
I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
i (2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
!Schedule Page: 254 Line No.: 1 Column: a
Capital Stock Expense
The issuance costs decreased by $386,432 because of the reclassification of capital stock in 2009 in the amount of 509,210 and
expenses related to the Periodic Offering Program (122,779). Compensation Incentive accrual for the corporation and the subsidiaries
increased year over year due to stock-based compensation expense that the company records each period.
The following table summarizes capital stock expense activity for the years ended December 31:
Common Stock Issuance Costs
Tax Benefit on Options Exercised
Compensation Incentive accrual (Subs)
Compensation Incentive accrual
Year-end Balances
2009
13,301,168
(5,683,807)
(849,764)
00,272,805)
(3,505207)
2008
13,687,600
(5,188,673)
(540,112)
(7,871,420)
87394
I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) 2S An Onginal (Mo, Da, Yr)
(2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
¡Schedule Page: 256 Line No.: 11 Column: fl
Accounts 223 and 224 net changes during 2009
On December 31,2008, $66.7 milion ofthe City of Forsyt Montaa Pollution Control Revenue Refuding Bonds, Series
1999A (Avista Corporation Colstrip Project) due 2032 were remarketed. Avista Corp. purchased these Pollution Control Bonds and
expects that at a later date, subject to market conditions, these bonds wil be remarketed to unaffliated investors or refuded by a new
issue. Although Avista Corp. is now the holder of these Pollution Control Bonds, the bonds wil not be cancelled but wil remain
outstading under the City of Forsyth's indentue. However, so long as Avista Corp. is the holder, the bonds wil not be reflected as an
asset or a liabilty on Avista Corp.'s Consolidated Balance Sheet. In
December 2008, the City of Forsyt, Montana issued $ 1 7.0 milion of its Pollution Control Revenue Refuding Bonds, Series
2008 (Avista Corp. Colstrip Project) due 2034 on behalf of Avista Corp. The proceeds of the Bonds were used to refund $17.0 milion
of Pollution Control Revenue Refuding Bonds, Series 1999B (A vista Corp. Colstrp Project) issued by the City of Forsyt, Montana
on behalf of Avista Corp., which were subject to remarketing or refuding on December 3 1,2008. In December 2009, Avista Corp.
purchased the Bonds and expects that at a later date, subject to market conditions, the bonds wil be refunded or remarketed to
unaffliated investors. Although Avista Corp. is now the holder of these Pollution Control Bonds, the bonds wil not be cancelled but
wil remain outstanding under the City of Forsyt's indentue. However, so long as Avista Corp. is the holder, the bonds will not be
reflected as an asset or a liabilty on Avista Corp.'s Consolidated Balance Sheet.
The following table summarizes accounts 223 and 224 net activity for the years ended December 31:
Advances from associated companies
Senior Notes
Year-end Balances
2009
o
o
o
2008
1,200,000
o
1,200,000
!Schedul Page: 256 Line No.: 12 Con: g
Accounts 223 and 224 net changes during 2009
On December 31,2008, $66.7 milion of the City of Forsyt, Montana Pollution Control Revenue Refunding Bonds, Series
1999A (Avista Corporation Colstrip Project) due 2032 were remarketed. Avista Corp. purchased these Pollution Control Bonds and
expects that at a later date, subject to market conditions, these bonds wil be remarketed to unaffliated investors or refuded by a new
issue. Although Avista Corp. is now the holder of these Pollution Control Bonds, the bonds wil not be cancelled but wil remain
outstanding under the City of Forsyt's indentue. However, so long as Avista Corp. is the holder, the bonds wil not be refleèted as an
asset or a liabilty on Avista Corp.'s Consolidated Balance Sheet. In
December 2008, the City of Forsyt, Montaa issued $17.0 milion of its Pollution Control Revenue Refuding Bonds, Series
2008 (Avista Corp. Colstrip Project) due 2034 on behalf of Avista Corp. The proceeds of the Bonds were used to refud $17.0 milion
of Pollution Control Revenue Refunding Bonds, Series 1999B (Avista Corp. Colstrp Project) issued by the City of Forsyt, Montaa
on behalf of Avista Corp., which were subject to remarketing or refuding on December 31, 2008. In December 2009, Avista Corp.
purchased the Bonds and expects that at a later date, subject to market conditions, the bonds wil be refuded or remarketed to
unaffliated investors. Although Avista Corp. is now the holder of these Pollution Control Bonds, the bonds wil not be cancelled but
wil remain outstanding under the City of Forsyt's indentue. However, so long as Avista Corp. is the holder, the bonds will not be
reflected as an asset or a liabilty on Avista Corp.'s Consolidated Balance Sheet.
The following table sumarzes accounts 223 and 224 net activity for the years ended December 31:
Advances from associated companies
Senior Notes
Year-end Balances
2009
o
o
o
2008
1,200,000
o
1200,000
I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ~ An Original (Mo, Da, Yr)
I (2) A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
I$chedule Page: 335 Line No.: 5 Column: b
!Schedule Page: 335 Line No.: 5
Directors 2009
Vendor Name
HEIDI B STANLEY
BRIAN W DUNHAM
MARK RACICOT
ERIK J ANDERSON
KRISTIANNE BLAKE
JOHN F KELLY
MICHAEL L NOEL
R JOHN TAYLOR
JACK W GUSTAVEL
ROY EIGUREN
SCOTIMORRIS
Expenses
$27,025
$13,258
$3,664
$30,988
$25,040
$29,368
$19,768
$28,464
-$8,747
$27,658
$9,615
I FERC FORM NO.2 (12-96)Page 552.1
Name of Respondent This Report is:Date of Report Year/Period of Report
Avista Corporation (1) ßAn Original (Moi Da, Yr)
(2)A Resubmission 04/16/2010 2009/04
FOOTNOTE DATA
I FERC FORM NO.2 (12-96)Page 552.1
A-VU- 0
A vista Corp.
2009
IDAHO Gas Report
REeff ,'~
lMn !lIY 2 '~'Hj nli .6.' lIf ....'
1111 9: 23
This Page Intentionally Left Blank
Name of Respondent This report is:Date of Report Year Ending
( X) An Original (Mo, Da, Yr)
Avista Corp.() A Resubmission April 16, 2010 Dec. 31, 2009
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 SeNice (Classified) ,this distributions of prior year reported in column (b). Likewise, 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
Accunt 106, Completed Constrction 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 year's unclassified
indicate the negative effect of such accounts.retirements. Attach supplemental statement showing the account
5. Classify Account 106 accrding 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 OrQanization --
3 302 Franchises and Consents --
4 303 Miscellaneous Intangible Plant 168,450 -
5 TOTAL Intangible Plant (Enter Total of lines 2 thru 4)168,450 -
6 PRODUCTION PLANT
7 Manufactured Gas Production Plant
8 304 Land and Land Riahts --
9 305 Structures and Improvemenls --
10 306 Boiler Plant EQuipment --
11 307 Other Power EQuipment --
12 308 Coke Ovens --
13 309 Producer Qas eQuipment --
14 310 Water Gas Generatino Eauipment --
15 311 liQuefied Petroleum Gas Eauipment --
16 312 Oil Gas Generating EQuipment --
17 313 Generating EQuipment-Other Processes --
18 314 Col, Coke, and ash handlinQ eQuipment --
19 315 Catalytic Crackino Eauipment --
20 316 Other reforminQ eauipment --
21 317 Purification eauipment --
22 318 Residual refinino eauipment --
23 319 Gas mixina eauioment --
24 320 Other EQuipment --
25
26 TOTAL Manuafactured Gas Production Plant (Enter Total of lines 8 thru 24)--
27 PRODUCTS EXTRACTION PLANT
28 340 Land and Land Riohts --
29 341 Structures and Imorovements -.
30 342 Exraction and Refinina Eauioment .-
31 343 Pipe Lines --
32 344 Exracted Products StoraQe EQuipment .-
33 345 Compressor EQuipment --
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 204
State of Idaho
Name of Respondent This report is:
r Xl An Original
Date of Report
(Mo,Da, Yr)
Year Ending
Avista Corp.L A Resubmission April 16,2010 Dec. 31, 2009
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 offet to the debits or credits to
distributions of these amounts. Careful observnce of the primary account classifications.
above instructions and the texts of Account 101 and 106 will 7. For Accunt 399, state the nature and use of plant included in this
avoid senous 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 accunt classifications arising from Account 102, state the propert purchased or sold, name of vendor or
distribution of amounts initially recorded in Account 102. In purchaser, and date of transaction. If proposed journal entnes have
showing the clearance of Account 102, include in column (e) been filed with the Commission as required by the Uniform System of
the amounts with respect to accumulated provision for Accounts, give date of such filing.
depreciation, acquisition adjustments, etc.,
Retirements
d
Adjustments
e
Transfers
f
Balance at End of Year Line
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
FERC FORM NO.2 (ED. 12-96)Page 205
Name of Respondent This report is:Date of Report Year Ending
( Xl An Onginal (Mo, Da, Yr)
Avista Corp.() A Resubmission April 16, 2010 Dec. 31, 2009
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)(Continued)
Balance at
Line Account Beginning of Year Additions
No.la)lb)(c)
34 346 Gas Measunno and Reoulatino EQuipment --
35 347 Other EQuipment --
36 TOTAL Products Extraction Plant (Enter Total of lines 28 thru 35)--
37 TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 36)--
38 Manufactured Gas Production Planf ¡Submit Supplementary Statement)
39 TOTAL Production Plant (Enter Total of lines 37 and 38)--
40 NATURAL GAS STORAGE AND PROCESSING PLA
41 UnderQround Storace Plant
42 350.1 Land --
43 350.2 Rights-of-Wav --
44 351 Structures and Imorovements --
45 352 Wells --
46 352.1 Storace Leaseholds and Riahts --
47 352.2 Reservoirs --
48 352.3 Non-recoverable Natural Gas --
49 353 Lines --
50 354 Compressor Station Eauioment --
51 355 Measurino and Reoulatino Eauipment --
52 356 Punfication Eauipment --
53 357 Other Eauipment .-
54 TOTAL Underaround Storaae Plant (Enter Total of lines 42 thru 53)--
55 Other Storaoe Plant
56 36 Land and Land Rights --
57 361 Structures and Improvements --
58 362 Gas Holders --
59 363 Punfication Eauipment --
60 363.1 liQuefaction EQuipment --
61 363.2 Vaponzina Eauioment --
62 363.3 Compressor Eauioment --
63 363. Measuring and Reoulating Eauipment --
64 363.5 Other EQuipment --
65 TOTAL Other Storace Plant (Enter Total of lines 56 thru 64)--
66 Base Load Liauefied Natural Gas Terminalino and Processino Plant
67 364.1 Land and Land Riahts --
68 364.2 Structures and Imorovements --
69 364.3 LNG Processina Terminal Eauioment --
70 364. LNG Transooration EQuipment --
71 36.5 Measunng and Regulatinc Eauipment --
72 36.6 Compressor Station Eauipment --
73 364.7 Communications EQuipment --
74 364.8 Other Eauipment --
75 TOTAL Base Load Liq Nat'l Gas, Terminal and Procssing Plant (lines 67-4)--
76 TOTAL Nal' Gas Storaoe and Processina Plant (Total of lines 54,65 and 75)--
77 TRANSMISSION PLANT
78 365.1 Land and Land Richts --
79 365.2 Riahts-of-Wav -.
80 366 Structures and Imorovements --
State of Idaho
FERC FORM NO.2 (ED. 12-96)Page 206
State of Idaho
Name of Respondent This report is:
( X) An Original
Date of Report
(Mo, Da, Yr)
Year Ending
Avista Corp. ( ) A Resubmission April 16, 2010 Dec. 31, 2009
Retirements
d
Transfers Balance at End of Year Line
No.
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
Adjustments
e
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 Apnl16,2010 Dec. 31, 2009
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 --
82 368 Compressor Station Equipment --
83 369 Measurino and Reoulatino Equipment --
84 370 Communications Equipment --
85 371 Other Equipment --
86 TOTAL Transmission Plant (Enter Totals of lines 78 thru 85)--
87 DISTRIBUTION PLANT
88 374 Land and Land Riohts 24,670 63,135
89 375 Structures and Improvements 161,569 7,544
90 376 Mains 71,945,591 2,636,258
91 377 Compressor Station Equipment --
92 378 Measuring and Regulating Equipment-General 1,526,756 144,524
93 379 Measuring and Reoulatino EQuipment-Citv Gate 4,160,431 11,964
94 380 Services 43,839,888 1,703,266
95 381 Meters 17,867,352 922,769
96 382 Meter Installations --
97 383 House Regulators --
98 384 House Regulator Installations --
99 385 Industrial Measurino and Reoulatino Station Equipment 577,812 20,978
100 386 Other Propert on Customers' Premises --
101 386 Other Equipment --
102 TOTAL Distribution Plant (Enter Totals of lines 88 thru 101)140,104,069 5,510,438
103 GENERAL PLANT
104 389 Land and Land Rights -91,800
105 390 Structures and Improvements -930,775
391 Office Furniture and Equipment --
107 392 Transportation Equipment 927,759 142,947
108 393 Stores Equipment -44,734
109 394 Tools, Shop, and Garage Equipment 454,702 1,999
110 395 Laboratory Equipment 33,852 1,309
111 396 Power Operated Equipment 763,033 108,799
112 397 Communication Equipment 278,030 859,332
113 398 Miscellaneous Equipment -648
114 Subtotal (Enter Totals of lines 104 thru 113)2,457,374 2,182,343
115 399 Other Tanoible Propert --
116 TOTAL General Plant (Enter Totals of lines 114 and 115)2,457,374 2,182,343
117 TOTAL (Accounts 101 and 106)142,729,892 7,692,781
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 I 142,729,892 I 7,692,781 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.(1 A Resubmission April 16, 2010 Dec. 31, 2009
GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106) (Continued)
Retirements Adjustments Transfers Balance at End of Year Line
(d)(e)(f (a)No.
----81
----82
----83
----84
----85
----86
87
---.87,805 88
---169,113 89
114,906 --74,466,943 90
----91
---1,671,280 92
---4,172,395 93
34,078 --45,509,076 94
---18,790,121 95
----96
----97
----98
---598,790 99
----100
----101
148,984 --145,465,523 102
103
---91,800 104
---930,775 105
----106
---1,070,706 107
---44,734 108
---456,701 109
---35,161 110
---871,832 111
4,694 --1,132,668 112
---648 113
4,694 --4,635,025 114
----115
4,694 --4,635,025 116
153,678 --150,268,998 117
-118
-119
-120
153,678 --150,268,998 121
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/Period of Report
Avista Corp (1) An Original (Mo,Da,Yr)Original April 16, 2010
(2) A Resubmission End of 2009
GasStored (Accounts 117.1,117.2,117.3,117.4,164.1,164.2, and 164.3) . Idaho
1. If during the year adjustments were made to the stored gas inventory reported in columns (d), (f), (g), and (h) (such as to correct cumulative inaccuracies
of gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and account 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 propert recordable in the plant accunts.
3. State in a footnote the basis of segregation of inventory between current and noncurrent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
Line Description Non current Current LNG LNG
No.(Account (Accunt (Accunt (Accunt (Accunt (Account (Account Total
117.1)117.2)117.3)117.4)164.1)164.2)164.3)
(a)(b)(c)(d)(e)(f)(g)(h)(i)
1 Balance at Beginning of $-$-$-$-$8,15,902 $-$-$8,415,902
2 Gas Delivered to Storage $-$-$-$-$7,645,087 $-$-$7,645,087
3 Gas Withdrawn from $-$-$-$-$11,429,099 $-$-$11,429,099
4 Other Debits and Credits.$-$-$-$-$-$-$-$-
5 Balance at End of Year $-$-$-$-$4,631,890 $-$-$4,631,890
6 Dth ----1,604,380 --1,604,380
7 Amount Per Dth $-$-$-$-$2.89 --$2.89
. Changed to jurisdictional allocation methodology in 2009. Company used situs allocation methodology in 2008 and prior.
...-
1. Adjusment made to Account 164115 (Clay Basin) when working gas storage was empty to clear an immaterial dollar balance remaining.
"l'"
2. N/A
':
3. All gas reported is current working gas. Avista uses the inventory method to report all working gas stored.
..'....- _.~. ..;",'
.---.
:~,~~
...
_0.'-
".-'
.'.
-
FERCFORMNO.2(REV0404)Page 220
Idaho
Name of Respondent This Report Is:Date of Report Year/Penod of Report
Avlsta Corporation (1)An Onginal (Mo,Da,Yr)An Onginal (12/31/2009)Apnl16,2010 December 31, 2009
(2)A Resubmission End of
Gas Operating Revenues - Idaho
1.Report below natural gas operating revenues for each prescribed account total. The amounts must be consistent with the detailed data on succeeding pages.
2.Revenues in columns (b) and (! include transition costs from upstream pipelines.
3.0ther Revenues incolumns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected incolumns (b) through (e).
Include in columns (f) and (g) revenues for Accounts 480-495.
Revenues for Revenues for Revenues for Revenues for
Transition Transition GRI and ACA GRI andACA
Costs and Costs and
Line Take-or-Pay Take-or-Pay
No.
Title of Account Amount for Amount for Amount for Amount for
Current Year Previous Year Current Year Previous Year
(a)(b)(c)(d)(e)
1 480 Residential Sales ----
2 481 Commercial and Industnal Sales ----
3 482 Other Sales to Public Authonties ----
4 483 Sales for Resale ----.,
5 484 Interdepartmental Sales ----
6 485 Intrcompany Transfers ----
7 487 Forfeited Discounts ----
8 488 Miscellaneous Service Revenues -.--
9 489.1 Revenues from Transportation of Gas of Others ----
Through Gathenng Facilties ----
10 489.2 Revenues from Transportation of Gas of Others ----
Through Transmission Facilties -.--
11 489.3 Revenues from Transportation of Gas of Others ----
Through Distnbution Facilties ----
12 489.4 Revenues from Storing Gas of Others ----
13 490 Sales of Prod. Ext. from Natural Gas ----
14 491 Revenues from Natural Gas Proc. By Others ----
15 492 Incidental Gasoline and Oil Sales --.-
16 493 Rent from Gas Propert ----
17 494 Interdepartmental Rents ----
18 495 Other Gas Revenues ----
19 Subtotal:----
20 496 (Less) Provision for Rate Refunds ----
21 TOTAL:----
. Prepared in 2009 based on Results of Operations .1:,
.. Prepared in 2008 based on Situs
FERC FORM NO.2 (REV12-o7)Page 300
Idaho
Name of Respondent This Report Is:Date of Report Year/Penod of Report
Avista Corporation (1) An Onginal (Mo,Oa,Yr)An Onginal (12/31/2009 Apn116,2010 December 31, 2009
(2)A Resubmission End of
Gas Operating Revenues - Idaho
4.1f increases or decreases from previous year are not denved from previously reported figures, explain any inconsistencies in a footnote.
5.0n Page 108, include information on major changes dunng the year, new service, and important rate increases or decreases.
6.Report the revenue from transportation services that are bundled with storage services as transportation service revenue.
Other Other Total Total Oeka therm of Oeka therm of
Revenues Revenues Operating Operating Natural Gas Natural Gas
Revenues Revenues
Line
No.
Amount for Amount for Amount for Amount for Amount for Amount fçr
Current Year Previous Year Current Year.Previous Year..Current Year...Previous Year ....
(f)(g)(h)(i)ij (k)
1 53,624,836 59,551,396 53,624,836 59,551,396 4,800,343 4,909,371
2 29,413,709 32,497,767 29,413,709 32,497,767 2,954,624 2,961,019
3 ------
4 35,815,253 -35,815,253 -10,163,579 -
5 51,180 53,195 51,180 53,195 4,999 5,021
6 ------
7 ------
8 16,453 12,673 16,453 12,673 --
9 ------
------
10 ------
------
11 497,589 455,756 497,589 455,756 4,878,085 -
------
12 ------
13 ------
14 ------
15 ------
16 ------
17 ------
18 2,431,003 18,397 2,431,003 18,397 --
19 121,850,023 92,589,184 121,850,023 92,589,184 22,801,629 7,875,410
20 ------
21 121,850,023 92,589,184 121,850,023 92,589,184 22,801,629 7,875,410
. Currnt year sales for resale dollars allocated based on WAllO average monthly commodity allocation used in Results of Operations
.. Previous year sales for resale for WAllO all assigned to WA
... Current year sales for resale WAllO volumes allocated based on WAllO dollars
... Transportation volumes omitted with new format for pnor year to match last yeats report
FERC FORM NO.2 (REV12-07)Page 301
,',...
.!;
Idaho
Name of Respen This oort Is:Dat of Reprt Yea of Report
(1) X An Orgin (Mo. Do Yr)
Avis Coip.(2)0 A Resbmision Apnl16,2010 Dec 31, 200
GAS OPETION AN MAANCE EXSES
If th amou for nriou yea is no dened fr mevio fiir exnla in footnot
Amou for Amount for
Line Am Cu Yea Prviou Yea
No.(al (b c
1 1. PRODUCTION EXSES
2 A. Mad Ga Prucon -.
3 Ma Ga Pructon (Submit SUDDlem Stateen)
4 B. Nat Ga Prucon
5 B 1. Natt Ga Prcton an
6 Oion .-
7 750 Ontion Suneision and Ei2innl! ..-
8 751 Prcton MaDS and Rec --
9 752 Ga Wells Exnense --
10 753 Field Lines Exnees --
II 754 Field Comnrer Station Ex""n..s --
12 755 Field Comnr Staon Fuel an Power --
13 756 Field MeaDl an Rel!latl! Staon Exii --
14 757 Punfcation Exnese --
15 758 Gas Well Rovalties --
16 759 Ot Exes --
17 760 Rents --
18 TOAL Oion lE Tot of lines 7 tI 17)--
19 Matenace
20 761 Main Suneision an Enl!inl!--
21 762 Mace of Stnct an ImDlveint --
22 763 Mai of Prcinl! Ga Wells --
23 764 Main ofField Lin --
24 765 Mainte of Field Comnr Staon EaiDen --
25 766 Maice of Field Mea. an ReI!. Sta EaiDin --
26 767 Ma of Pucation EmiDmen --
27 768 Maite of Drllinl! an C1eain2EOinin --
28 769 Maintce of Ot i -.
29 TOAL Mate (E Tot of line 20 tI 28).-
30 TOTAL Nat Gas Prcton an Gatll! ITot of line 18 an 29)--
31 B2. Pr Excton
32 Oneon
33 770 ODraon Sunervision an Enl!ineen"--
34 771 Onration La .-
35 772 Ga Slil!e --
36 773 Fuel .-
37 774 Power --
38 775 Mana --
39 776 Onetion SUDDlies and Exri~es --
40 m Gas Prss bv Otrs --
41 778 Rovties on Prct Exir .-
42 779 Mai Exnens --
43 780 Prouct Purc for Resae --
44 781 Vanaton in Prct Inventnr -.
45 C1s) 782 Exir Pruct Use bv th Utiitv-Cit --
46 783 Rents -.
47 TOTAL ODraon fE Tot of Lines 33 tI 46 .-
FEC FORM NO.2 (E 1288)Pae 320
31121010 Form 2 pg 320-325 2009.x1s
Idaho
Name of Respondent Th~itIS:Dat of Report Yea of Report
(I) X An Origi (Mo, Da YrJ
Avist Corp.(2)0 A Resbmiion April 16.2010 Decbe 3 I, 200
GAS OPER nON AN MAANCE EXSES
~Lin Amount Cu Yea Previou Yea
No.ral b c82. Proct Exon (Contied)
48 Maice
49 784 Mai Suiiision an Eiinir --
50 785 Mai of Stnre and Imiivements --
51 786 Mace of Excton and Refin" Pmiinmen --
52 787 Mai of Pine Lins ..
53 788 Mai of Extrd Pruct Stol'e EQipmen --
54 789 Mai of ComPIr Eaipmen --
55 790 Matece of Gas Mea" and Reir. Eaipment --
56 791 Mace of Oter EaiDment --
57 TOTAL Ma tEte Tot of lines 49 tb 56)--
58 TOTAL Pruc Exon IEte Tot of lin 47 and st --
59 C. ExDloron and Develonmen
60 Oiion
61 795 Delav Rens ..
62 796 Nonuctve Well Drlin --
63 797 Abanoned Le --
64 798 Oter Exloron --
65 TOAL Exnloraon and DeveloPme I' Tot of lines 61 tb 64\--
D. Otr Gas Suonlv Expe
66 Oneion
67 800 Nat Gas Well Hea Puhas ..
68 BO. i Nat Gas Well Hea Pu, lnlDanv Tra --
69 801 Nat Gas Field Lin Pu .-
70 802 Nat Ga Gasline Plan Outlet Pnch --
71 803 Nat Gas Trmission Lie Pu .-
72 804 Nat Gas City Ga Pu 82,533.345 134,315,561
73 804.1 Liauefied Nan Gas Pu --
74 80S Ot Gas Pu -.
75 I fl...\ 80.1 Pu Gas Co Adiusen 3.287.023 3,217,554
76
77 TOAL Pu Ga CE Tot of lin 67 to 76)i 85820.3691 137,533.ii5
78 806 Exch Ga 1 -1 .
79 Pu Gas Ex
80 807. Well i:w_ft"'~_Pu Ga --
81 807.2 Oneion of Pued Gas Meariii Staons --
82 807. Main of Pued Gas Mea Staons -.
83 807. Pued Gas Cacuation Exne --
Il 807.5 Ot Pu Ga Ex -.
85 TOTAL Pu Ga Ex Tot of lines 80 tb 84\--
86 808. i Gas Withwn fr Stol'-Deit 11,455.548 ll,823.573
87 lL\ 808. Ga Deliver to Stoe-it (7.010182 (16,003035
88 809.1 Witwal ofLiauefed Nat Ga for Priii-Debit .-
89 fl..., 809.2 Deivees of Nan Ga for Prssinl!-Crit ..
90 Gas Use in Util .onsit
91 810 Gas Use fo Station Fuel-eit --
92 8 i 1 Ga Use for Pruct Exon-eit (161,510 (336.5)
93 812 Gas used fo Oter Utiit ODrationit .-
94 TOAL Ga Use in Utility OiiraonCrit ITot of lin 91 tb 93\(161,510 (336.51
95 813 Other Ga Su I 394.531 381.910
96 TOTAL Oter Gas SUDDlv Exp ITot of lin 77 78 85,86 tl 89 94,95)90.498,755 133.399020
97 TOAL Pructn Exnens I' Tot of lin 3 30.58,65 an 96\90498. 755 133,399020
FEC FORM NO.2 (E 1288)Pae 321
31121010 Form 2 pg 320- 2009.x1s
Idaho
Nam of Respond This oort Is:Dat of Reprt Yea of Repo
(1) X An Ongi (Mo.Da Yr)
Avis Corp.(2)0 A Resmission April 16,2010 Debe 31. 20
GAS OPETION AN MAANCE EXSES
Amou fo Amount for
Line Amount Cu Yea Previous Yea
No.faJ (b (c
98 2. NATI GAS STRAGE TEMIAUG AN
PROCESING EXENSE
99 A. Undenmnd Sto1'e Exi:nses
100lOition
101 814 Oiiraon Sunision an Enl!ineeril!178 6,65
102 815 Maps and Rec .-
103 816 Wells Exnenses --
104 817 LineExnens --
105 818 Com", Staon Exii --
106 819 Comnrer Station Fuel an Power --
107 820 Meal! and Rel!lati Station Exnes -.
108 821 Pucaon Exnees --
109 822 Exnloron and Develoit --
110 823 Gas Losses .-
11 824 Ot Exnens 80,741 93.643
112 825 Storae W 1:11 Rovalies --
113 826 Rents --
114 TOTAL Ontion (Ete Tota oflines 101 tI 113)80,920 99.708
115 Mainna
116 830 Ma Suiiision an Eiinl!--
117 831 Mai of Sttci an Imvem --
118 832 Maite of Resir an Wells .-
119 833 Maite of Lin --
120 834 Mai of C Staon EaiJ)ei .-
121 835 Mai of and Reiiatil! Station Eaimnnt ..
122 836 Maite of Pufication i -.
123 837 Mai of Ot Eaiiint 86742 79,072
124 TOTAL Maice ff Tot of lines 1 16 tI 123)86,742 79,072
125 TOTAL Underund Stol!e Exii ITot of lin 11 4 and 124)167,661 178780
126 B. Oth Stoe Exi:ns
127 100ion
128 84 Ontion Suneision an En2ineeril!--
129 841 Oneraon La an Exnens --
130 842 Ren --
131 842.1 Fuel --
132 842.2 Power ..
133 842.3 Gas Losss --
134 TOTAL Onration ffTot of lins 128 tI 133)-.
135 Mainace
136 843.1 Matenace Suneision and Enineeri2 ..
137 843.2 Maince of Stnct and Imnrovements --
138 843.3 Ma of Gas Holder --
139 843.4 Main of Pucation ¡¡iome -.
140 843.5 Maince of LiDcton EQipment ..
141 843.6 Mainnace of V . .liDDei .-
142 843.7 Mace of Comnss ~iiint --
143 843.8 Mainte of Meal! and Rel!latnl! EaiDDent ..
144 843.9 Ma of Ot Eainme --
145 TOTAL Mantce CEte Tot of lines 136th 144)--
146 TOTAL Ot Storal!e Ex Tota of lin 134 an 145).-
FEC FORM NO.2 (E 12-88)Page 322
31121010 For 2 pg 320-325 2009.x1s
Idaho
Nam of Responden This ROOJt Is:Dat of Repo Yea of Report
(I) X An Origin (Mo,Da. Yr)
Avis Cor.(2)0 A Resubmission April 16, 2010 Decbe 31, 200
GAS OPERTION AN MATEANCE EXSES
~Line Amoun Cut Yea Prvious Yea
No.(aJ b c
147 C. Liquefed Natra Gas Terinin and Prin
148 )oraon
149 84.1 Oøion Supeision an En2in2 ..
150 84.2 LNG Presin2 Terin La and ExDens -.
151 84.3 Liauef Prsin2 Lar and Exoes -.
152 84.4 Liquefacion Traporton Lar an Exoe ..
153 84.5 Mea2 and Rel!la Labo and Exoe ..
154 84.6 ComDress Staon Laor an Exoe --
155 84.7 Commcaon Svs Exiies -.
156 84.8 Svst Contl and Lo Disatine --
157 845.1 Fu --
158 845.2 Po --
159 845~3 Rent --
160 845.4 e0i2es -.
161 (Lss) 845.5 Wh2e Recints-Ct --
162 845.6 Prin2 Liauefied or Vairid Ga bv Oter -.
163 84.1 Gas Loss --
164 84.2 Ot Ex -.
165 TOTALOion (Ete Tot of lins 149th 164).-
166 Ma
167 847.1 Manace Suoision an Enineeri2 --
168 847.2 Mai of Strct an Imprvemts -.
169 847.3 Mate of LN Prin Ter Eqipment -.
170 847.4 Maince of LNG TraDOrton Eaimnen -.
171 847.5 Mate of Mea an Rel!lat2 Eaipment -.
172 847.6 Mia of Coinre Staon Eqipment --
173 847.7 Main of Counication i -.
174 847.8 Mainte of Oter Eqiomen --
175 TOTAL Ma (Ete Tot of lines 167 th 174)--
176 TOTAL Liauefed Nat Gas Terin2 an Prin2 ExD (lines 165 & 175)-.
177 TOTAL Nat Ga storue CE Tota of lines 125 146 and 176)167,661 178780
178 3. lRSMlSSION EXENSES
179 Oneon
180 850 Oion Supeision an Enidneeni -.
181 851 Syst Contl an Lod DisDain2 --
182 852 Commcaon Syst Exoens -.
183 853 Como Station La an Exoe -.
184 854 Ga for COßre Station Fu --
185 855 Ot Fue an Power for or Staon .-
186 856 Mai Exiies .,--
187 857 Mea and Rel!at2 Ston Ex ..
188 858 Trion an ComDreion of Gas bv Oters -.-
189 859 Ot Exoe .-
190 86 Rent -.
191 TOAL Onraon CE Tot of lin 180 th 190)-.
FEC FORM NO. i (E 12)Page 323
31121010 Form 2 pg 320-3252009.xs
Idaho
Name of Respnden This i&rt Is:Dat of Repo Yea of Rep
(1) X An Ongi (MOo Da Yr)
Avist Coip.(2)0 A Rebmssion Aprl 16, 2010 Dec 31. 200
GAS OPETION AN MAANCE EXSES
~.Line Amoun Cu Yea Prvious Yea
No.(a)b (c
3. TRSMISSION EXENSES (Conted)
192 Maintece
193 86 i Maice SUDerision and Enl!ineel!-.
194 862 Maite of Sticires an ImDrovemts -.
195 863 Maitece of Mains --
196 864 Maice of Comnrsor Station EOmen --
197 865 Maitece of Mearinl! and Rel!. Staon F.minment --
198 866 Maitece of Communication EoiDment .-
199 867 Maice of Oter EoiDment --
20 TOTAL Ma CE Tot of lin 193 tl 199)--
201 TOTAL Tniion Exnenses lETot of lin 191 and 200)--
202 4. DISTRUTON EXENSES
203 Onon
204 870 Onon Suneision and Enl!226.325 228281
205 871 Distribuon Lo DiSPhing -.
206 872 Com""sor Staon La and Exiies --
211 873 ComDr Staon Fuel an Power --
208 874 Mai an Service Exnenss 624455 572,145
20 875 Meal! and Rel!lal! StDn Exne-Geia 50,475 91.449
21O 876 Meanii and Reirla Sttion Exnes-Instal 3.828 1,497
211 877 Meal! and Reirlatil! Ston Exnees-CitY Gat Oiec Station 123,955 65,412
212 878 Met and Ho Relllato Exne 231,791 625,492
213 879 Cu liilations Exne 670.285 538,010
214 880 Ot Exne 595.912 554.353
215 881 Ren 6,272 7.911
216 TOTAL Oion CE Tota of lins 204 tl 215)2,33.297 2.684,549
217 Mainte
218 885 Maice Suneision an F.ineel!48,908 11.989
219 886 Ma of Stn an ImDroem .-
220 887 Ma of Ma 397,750 187.300
221 888 Mai of Staon EoÌDme --
222 889 Mai of Mes. an ReI!. StaEaiD.-Geneia 76,152 68.814
223 890 Maice of Mes. and Rel!. Sta Enuin.- Industral 106.90 117.759
22 891 Mai of Mes. and ReI!. Sta EoiD.-Citv Gate Oiec StatiDn 30,130 13.09
225 892 Mai of Serices 315,53 26,467
226 893 Maian of Mete and House Re""latlS 303.320 276.775
227 894 Mainten of Ot EauiDinnt 9,991 8,861
228 TOTAL Maintece æiTot of lin 218 tl 227)1.288.700 945,055
229 TOTAL Distributon Ex te Tot of lin 216 an 228)3,821.99 3.629,604
23 5. CUSTME ACCUNT EXENSES
231 Oneon
232 901 SW;ision 116.99 100.364
233 90 Met Reainii Exnens 171.601 144.938
234 903 Cu Rec an Collecon Ex""""1.498.297 1,295,628
235 90 Uncollecble Accts 563.693 394,139
236 90 Miscellan Cust Ac Exnens 50,451 30151
237 TOAL Cuer Accounts Ex Tot of lin 232 tl 236)2,401.032 1.965.220
FEC FORM NO.2 (E U-8)Page 324
31121010 Form 2 pg 320325 2009.xs
Idaho
Nam of Responden Th
r
Is: Dat of Re Yea of Report
(I) X AnOrgin (Mo. Da, Yr)
Avis Corp.(2)0 A Rebmission Apnl16,2010 Deber 31. 200
GAS OPETION AN MAANCE EXSES
H th amou for mevious yea is not derved from oniouslv reDOrt fi2U, exDlai in fooot~Lin Amout Cu Yea Prvious Yea
No.fal b (c
238 6. CUSTME SERVICE AN INORMTIONAL EXSES
239 Oiin24907 Suoeision --
241 908 Cumer Asisce Ex""n.."2 204.411 1,770.146
242 90 Inonon an Inon Exne.-s 60 9.671
243 910 Misllan Cume Serièe and Infnnon Exri 30.20 30426
24 TOTAL Cumer Serice an Inormion Ex 240 th 243)..245 7. SAL EXSES
24 ODion
247 911 Suoeision --
248 912 Demonti and Sellin!! Exne 147.20 137142
249 913 Adveiin!! Exii 23.58 24186
250 916 Misllaneo Sales Exoens 23478 13
251 TOTAL Sales ExDees tEnt Tot of lines 247 th 250l 194,276 161,340
252 8. ADMINITRTI AN GEN EXSES
253 onon
254 920 Adme an Gera Sales 1.958.742 1,706 522
255 921 Ofce SUDlies and Ex""~'"343125 331787
256 lLsS) (922) Adinve Eiiii Traer-C.(10,567 78.395
257 92 Outside Seric Emlove 1.003,04 973034
258 92 Pr Ince 101,28 77,46
259 925 In' unes an DlI 369.269 40.250
26 926 EmDloyee Penion an Benfits 45,431 57,688
261 927 Fra Reairen --
262 928 Reirarrv Commion Exoe 347002 398134
263 I fLss)(929) Dulicate Ch!!es-C.--
26 930.1 Ge Advertintl Exoe 21768 .
265 930.2 Miellan Ge Exoenses 284,234 308157
26 931 Rent 25.657 48.00
267 TOTAL Ooraon lE Tot of lin 254 tI 266)4.488.976 4,298,648
268 Mainte
269 935 Maite of Gene Plant 1 585.6221 591(17
270 TOTAL Adive and Gera Exii ITot of lin 267 and 269)i 5,074,5981 4,889725 1
271 TOTAL Ga O. andM. Exn (Lin"" 97,177 201 229,237,24.251 ,and 270l 1 104 393,544 1 146,0339321
NUMBER OF GA DEPARTM EMLOYEE
1. Th da on nu of emloyee shd be report conson emloyee in a fooot.
for the payrll peod ending nea to Ocbe 31, or 3. Th nube of emloyee asignle to the ga
any payrll peod eng 60 days beore or af Oc de fr join fuon of cobinon utilities
ber3L.may be det by este on th bais of employe
2. If th renden's payrll for th rert peod eqivalen Sho th es num of eqivalent
inludes any spal conson penn inlude such emoye at to th ga depnt frm join
i on lin 3 and show th nu of such sneia fuon.
I. Pavrll Pe Ende fD) De 31 200
2. Tot Reiar Full-Tun P-mnlnvee 241 28
3. Tot Pa- Tun an Temno Emolovee allocon of Gene Emolove oi 1
4. Tota Emlovee 241 29
FEC FORM NO.2 (E 128)Page 325
31121010 Form 2 pg 320-25 2009.xs
Name of Respondent This Report Is:Date of Report Year of Report
(1 )I:An Original (Mo, Da, Yr)
Avista Corp.(2)D A Resubmission April 16, 2009 Dec. 31, 2008
DISTRIBUTION MAINS
Show Particulars Called for Concerning 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"1,774,080 1,093 1,772,987
2 Steel Wrapped 2"t04"649,440 10,539 638,901
3 Steel Wrapped 4"to 8"385,440 42 385,482
4 Steel Wrapped 8" to 12"5,280 692 4,588
5 Steel Wrapped Over 12"0 0
6
7
8 Plastic Less than 2"5,353,920 69,110 5,423,030
9 Plastic 2" to 4"1 ,462,560 28,792 1 ,491 ,352
10 Plastic 4" to 8"538,560 8,295 546,855
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 10,169,280 106,239 12,324 10,263,195
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 4/16/2010 12131/2009
SERVICE PIPES GAS
Show the particulars called for concerning the line service pipe in possession of the respondent at the close of the year.
Number at Number ~umber Remove Number Average
Line Type Diameter Beginning Added or Abandoned at Close Length
No.in Inches of Year DuringYeal During Year of Year in Feet
(a)(b)(c)(d)(e)(f (g)
1 Steel Wrapped l' or Less 12,390 131 12,259 Not
2 Steel Wrapped 1" thru 2"176 31 207 Available
3 Steel Wrapped 2" thru 4"4 4 8
4 Steel Wrapped 4" thru 8"0 1 1
5 Steel Wrapped Over 8"0 0
6
7
8 Plastic l' or Less 60,327 2,914 57,413
9 Plastic 1" thru 2"229 21 250
10 Plastic 2" thru 4"7 3 10
11 Plastic 4" thru 8"0 2 2
12 Plastic Over 8" 0 0
13
14 Other Unknown 580 373 207
15
16
17 TOTALS 73,713 62 3,418 70,357
,
State of Idaho
FERC FORM NO.2 Page 514-8
Name of Respondent This (K)f Is:Date of Report Year of Report
(l) X An Original (Mo, Da, Yr)
Avista Corp.(2)D A Resubmission April 16, 20 io Dec. 31, 2009
CUSTOMER'S METERS
OwnedLineSizeTypeMakeCapacityBegining Added Retired OwnedNo.
of Year During Year During Year End of Year (a)(b)(c)(d)(e)(f)(g)(h)i Detailed information not available.
2
3
4
5
6
7
8
9
io
II
12
13
14
15
16 TOTAL 73,776 946 74,722
State of Idaho
FERC FORM NO.2 Page 514-C
Name of Respo This Report Is: An original
I Date of Report
Year/Period of Report
Avista Corp (1) An Original (Mo.Da,Yr)April 16, 2010 2009
2) A resubmission End of
Gas Account-Natra Gas - Idaho
1. The purpse of this schedule is to account for the quanti of natural gas received and delivered by the respondent.
2. Natural gas means either natural gas unmixd or any mixure of natural and manufactured gas.
3. Enter in columnC the year to date Dlh as reported in the schedules indicated for the kem so f receipts and deliveries.
4. Enter in column(d) the repective quarter's Dt as reported In the schedules indicated for the item so f receipts and deliveri.
5. Indicate in a footnote the quantities of bundled sales and trnsportation gas and specif the line on which such quantiles are listed.
6. If the respondent operates tw or more systems which are not interconnected, submit separate pages for this purpose.
7. Indicate 'by foot note the quantities of gas not subjec to Commission reulation which did not incur FERC reulatory costs by showng(1) the local distribution volumes another jurisdictional pipeline delivere to the
local dislnbuton company portion of the reporting pipeline(2) the quantities that the repong pipeline transported or sold through it local dislnbution facilities or intratate facilities and which the reportng pipeline
received through gathering facilities or intrastate facililes, but not through any of the interstate portion of the reporting pipeline, and (3) the gathering line quantities that were not destined for interstate market or that
were not transpoed throgh any interstate portio of th reporting pipeline.
8. Indicate in a footnote the specifc gas purchase expense account(s) and related to which the aggregate volumes reported on line No.3 relate.
g. Indicate in a footnote(1) the system supply quantities of gas that are stored by the reporting pipeline, during the reportng year and also reported as sales, trnsportation and compression volumes by the reporting
pipeline during the same reporting year. (2) the system supply quantities of gas that are stored by the reporting pipeline during the reportng year which the reporting pipeline intends to sell or trnsport in a Mure
reporting year. and (3) contract storage quantities.
10. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's lotal trnsporttion figure. Addadditional infonnation as necessary to the o'
footnotes.
Ref. Page No.Total Amount of Currt 3 months
Line Item ofFERC Fon Dth Ended Amount of Dth
No.Nos.212.A Year to Date Quarterly Only
, "
(a)(b)Ic)(d)
01 Name of System:'.2 GA RECEIVED
3 Gas Purchases (Acounts 800-805)18,125,516
-":
4 Gas of Others Received for Gatherlna (Acunt489.1)303 .-
5 Gas of Oters Receid for Transmission (Account489.2)305 ..
6 Gas of Others Received far Distribution (Account489.3)301 4,878,085 1,242,259
7 Gas of Others Received for Contract StoraQe (Account489.4)307 .-
8 Exchanged Gas Received from Others IAccount806)328
"--
9 Gas Received as Imbalances (AccounI806)328 16,514 (30.817)
10 Receipts of Respondenls Gas Transported by Oters (Account8581 332 ..-"
11 Other Gas Wlhdrawn from Storage (Explain) "(152,94)447,65
12 Gas Received frm Shippers as Compresor Statian Fuel --
13 Gas Receivd from Shippers as Lost and Unaccounled for .-
14
.
15 Totl Receipts (Tota of lines 3 thru 14)22,867,167 5,992,739
16 GA DELIVERED
17 Ga Sales (Accounts 48D-)7.759,965 2.906,612
18 Deliveries of Gas Gathere for Oters (Account 489.1)303 ..
19 Deliveries of Ga Transpored for Others (Account 489.2)305 .-,
20 Deliveries of Ga Distributed for Others (Account 489.3) 301 4,878,085 1,242.259
21 Deliveries of Contract Storage Gas (Account 489.4) 307 .-
22 Exchange Gas Delivered to Oters (Account 806)328 .-
23 Gas Delivered as Imbalances (Account 806)328 -.
24 Deriverls of Gas to Others for Transportation (Account 8581 332 9.807,417 1,747,724
25 Other Gas Delivere to Storage (Exlainl".-
26 GasUsed for Comprssor Station Fuel 509 421.699 "....
27
28 Total Deliveries (Total of lines 17thru 27)22,867,167 5,992,739 ,
29 GA UNACCOUNTED FOR
30 Production System Losses ,-.",
31 Gathering System Losses -.;.
32 Transmission System Losses -''':''
33 Distribution System Losses --_-0.
34 StoraQe System Losses .'-
35
36 Total Unaccounted For (Total of lines 30 thru 35)-..,
37 .,Total Delieris & Unaccounted For (Total of lines 28 and 36)22,867,167 5,992.739
. .._.
¡;,
FERCFORMNO.2(REV12-G7)Page 520
:.i