2016Annual Report.pdf

THIS FILING IS
Item 1: E An lnitial(Original)
Submission
OR E Resubmission No. _
Alu.a
;:i:C:lVrD
-:t 27 l,l,i !3'
Form2 Approved
OMB No.1902-0028
(Expires Ogl30nX7)
Form 3-Q Approved
"QIVIB
No.1902-0205
{txpires 'l1t3Ot2O16\
,, I i..':: 1.., i',
FERG FINANCIAL REPORT
FERC FORM No. 2= Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
These reports are mandatory under the Natural Gas Act, Sections '10(a), and 16 and 1 8
CFR Parts 260.1 and 260.300. Failure to reporl 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 20'l6lQ4
FERC FORM No.2/3Q (02-04)
YIANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
IDENTIFICATION
01 Exact Legal Name of Respondent
Avista Corporation
Year/Period of Report
End of 20161Q4
03 Previous Name and Date of Change (lf name changed during year)
04 Address of Principal Office at End of Year (Street, City, State, Zip Code)
141 1 East Mission Avenue, Spokane, WA 99207
05 Name of Conlact Person
Ryan L. Krasselt
06 Title of Contact Person
VP, Controller, Prin. Acctg Officer
07 Address of Contact Person (Street, City, State, Zip Code)
141 1 Easl Mission Avenue, Spokane, WA 39207
08 Telephone of Contact Person, lncluding Area Code
509-495-2273
This Repo( ls:(1) ffiAn Originat(2) nA Resubmission
10 Date of Report
(Mo, Da, Yr)
o3t31t2017
ANNUAL CORPORATE OFFICER CERTIFICATION
The undersigned oflicer certifies that:
I have examined this report and to the best of nry knowledge, information, and belief all statements of fact contained in this reporl are corTecl 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.
VP, Controller, Prin. Acclg Officer
12 Title11 Name
Ryan L. Krasselt
13 Signature
Ryan L. Krasselt {u* L !t*,,,u s.*14 Date Signed
a3t31t2017
Title 18, U.S.C. 1001 ,frrakes it a crime for any person knowingly and willing,y to make 10 any Agency or Department of the United Stales any
false, lictitious or ftaudtlent statements as to any matter within its jurisdiction.
FERC FORM NO. Z3Q (02-04)Page 1
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
o3t31t20't7
Year/Period of Reporl
End of 20'16/Q4
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported for
certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Line
No.
Title of Schedule
(a)
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS
1 General lnformation 't01
2 Control Over Respondent 102 N/A
3 Corporations Conholled by Respondent 103
4 Security Holders and Voting Porvers 107
5 lmportant Changes During the Year 108
6 Comparatve Balance Sheet 't 10-1 't 3
7 Statement of lncome for the Year 114-116
8 Statement of Accumulated Comprehensive lncome and Hedging Activities 117
I Statement of Retained Eamings for the Year 1 18-1 't I
10 Statements of Cash Flows 't20-121
11 Notes to Financial Statements 't22
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits)
12 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion 200-201
13 Gas Plant in Service 20/'-209
14 Gas Property and Capacity Leaed ftom Ofiers 212 N/A
15 Gas Property and Capacity Leased to Others 213 N/A
16 Gas Plant Held for Future Use 214
17 Construclion Work in Progress-Gas 216
18 Non-Traditional Rate Treatment Afbrded New Projects 217 N/A
19 General Description of Construction Overhead Procedure 2',t8
20 Accumulated Provision for Depreciation of Gas Utility Plant 2',t9
2'l Gas Stored 220
22 lnvestments 222-223
23 lnvestments in Subsidiary Companies 224-225
24 Prepayments 230
25 Extraordinary Property Losses 230 N/A
26 Unrecovered Plant and Regulatory Study Cosb 230 N/A
27 Other Regulatory Assets 232
28 Miscellaneous Defened Debits 233
29 Accumulated Deferred lncome Taxes 234-235
BALANCE SHEET SUPPORTING SCHEDULES (Liabilities and Other Credits)
30 Capital Stock 250-251
31 Capital Stock Subscribed, Capital Stock Liability for Conversion, Premium on Capital Stock, and
lnstallments Received on Capital Stock 252 N/A
32 Other Paid-in Capital 253
33 Discount on Capital Stock 254 N/A
34 Capital Stock Expense 254
35 Securities issued or Assumed and Securities Refunded or Retired During the Year 255
36 Long-Term Debt 256-257
37 Unamortized Debt Expense, Premium, and Discount on Long-Term Debt 258-259
FERC FORM NO.2 (REV 12-07)Page 2
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
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."
Line
No.
Tifle of Schedule
(a)
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
38 Unamortized Loss and Gain on Reacquired Debt 260
39 Reconciliation of Reported Net lncome with Taxable lncome for Federal lncome Taxes 261
40 Taxes Accrued, Prepaid, and Charged During Year 262-263
41 Miscellaneous Current and Accrued Liabilities 268
42 Other Defened Credits 269
43 Accumulated Deferred lncome Taxes-Other Property 274-275
44 Accumulated Deferred lncome Taxes-Other 276-277
45 Other Regulatory Liabilities 278
INCOME ACCOUNT SUPPORTING SCHEDULES
46 Monthly Quantity & Revenue Data by Rate Schedule 299 N/A
47 Gas Operating Revenues 300-301
48 Revenues from Transportation of Gas of Others Through Gahering Facilities 302-303 N/A
49 Revenues from Transportation of Gas of Others Through Transmission Facilities 304-305 N/A
50 Revenues from Storage Gas of Others 306-307 N/A
51 Other Gas Revenues 308
52 Discounted Rate Services and Negotiated Rate Services 313 N/A
53 Gas Operation and Maintenance Expenses 317-325
54 Exchange and lmbalance Transactions 328 N/A
55 Gas Used in Utility Operations 331
56 Transmission and Compression of Gas by Others 332 N/A
57 Other Gas Supply Expenses 334
58 Miscellaneous General Expenses-Gas 335
59 Depreciation, Depletion, and Amortization of Gas Plant 336-338
60 Particulars Concerning Certain lncome Deduction and lnterest Charges Accounts 340
COMMON SECTION
61 Regulatory Commission Expenses 350-351
62 Employee Pensions and Benefits (Account 926)352
63 Distribution of Salaries and Wages 354-355
64 Charges for Outside Professional and Other Consultative Services 357
65 Transactions with Associated (Affiliated) Companies 358
GAS PLANT STATISTICAL DATA
66 Compressor Stations 508-509 N/A
67 Gas Storage Projects 512-513
68 Transmission Lines 514 N/A
69 Transmission System Peak Deliveries 518 N/A
70 Auxiliary Peaking Facilities 519
71 Gas Account-Natural Gas 520
72 Shipper Supplied Gas for the Current Quarter 521 N/A
73 System Map 522 N/A
74 Footnote Reference 55'l
75 Footnote Text 552
76 Stockholde/s Reports (check appropriate box)
I Four copies will be submitted
I No annual reportto stockholders is prepared
FERC FORM NO.2 (REV 12-07)Page 3
Name of Respondent
Avista Corporation
This ReDorl ls:(1) fiRn Originat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of 2016/Q4
General lnformation
L Provide name and title of officer having custody of $e genaal corpoate books of account and address of office where the general corporate books are kept and address of office
where any other corporate books of account are kept, if different fom that where the general corporate books are kept.
Ryan Krasselt, Vice President and Controller, Principal Accounting fficer
1411 E Mission Avenue
Spokane, WA 99207
inorporated, state hat fact and give he type of organization and the date organized.
State of Washington, lncorporated March 15, 1889
he auhority by whidr he receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased.
Not Applicable
4. State he classes of utility and other services fumished by respondent during fre year in each State in which the respondent operated.
Eleclric service in the states of Washington, ldaho and Montana
Natural gas service in the states of Washington, ldaho and Oregon
statements?
(1) n Yes... Enter the date when such independent accountant was initially engaged:
(2) E No
FERC FORM NO.2 (12-96)Page 101
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
EInn
ls:
Original
nA Resubmission
Date of Report(Mo, Da, Yr)
0313112017
Year/Period of Report
End of !pl!/Q[
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. lf control ceased prior to end of year, give particulars (details) in a footnote.
2. lf control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming
any intermediaries involved.
3. lf control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
4. ln column (b) designate type of control of the respondent as "D" for direct, an "1" 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. lndirect 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 party holds a veto power over the other. Joint control may exist by mutual
agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the
Uniform System of Accounts, regardless of the relative voting rights of each party.
Line
No.
Name of Company Controlled
(a)
Type of Control
(b)
Kind of Business
(c)
Percent Voting
Stock Owned
(d)
Footnole
Reference
(e)
I Avista Capital D Parent to the Compan/s 100 Not used
2 subsidiaries
3 Avista Development Maintains investment portfolio incl Real
Estate.
100 Not used
4 Avista Energy I lnactive 100 Nol used
5 PenEer Corporation I Parent of Bay Area Mfg and Penture
Venture Hldngs
100 Not used
6 Bay Area Manufac{uring I Holding co of AM&D dba MetalFX 100 Not used
7 Advanced Manufacluring & Development I Custom mQ of electronic endosures 83 Not used
I dba MetalFX Not used
I
10 Avista Capital ll D Affiliated business tust issue pref tust
sec
100 Nof used
11 Avista Northwest Resources, LLC Ouns an interest in a venfure fund
investment
100 Nol used
12 Steam Plant Square, LLC I Commercial ofice and Retail leasing 85 Nol used
13 Courtyard Office Center, LLC I Commercial offce and retail leasing 100 Nof used
14 Steam Plant Brew Pub, LLC I Restaurant operatons 85 Not used
15
16 Alaska Energy and Resources Company D Parent company of Alaska operations 100 Not used
17 Alaska Electric Light and Power Company Utiltiy operations based in the city and
borough
100 Nol used
18 O(Juneau, AK
19 A"JT Mining Properties, lnc I lnaclive mining company holding
certain properties
100 Not used
20 Snettisham Electric Company Holds certain rights to purchase he
Snettisham
100 Not used
21 Hydroelectric project in the city &
borough of
22 Juneau, AK
23 Salix, lnc Liquefied Natural Gas Operations. See
Footnote
100 Not used
24
25
26
27
28
FERC FORM NO.2 (12-96)Page 103
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn originat
nA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of {l!/Q[
Security Holders and Voting Powers
1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book
or compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent, and
state the number of votes that each could cast on that date if a meeting were held. lf 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. lf 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. Anange the names of the security holders in the order of voting power, commencing with the
highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders.
2. lf any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with
voting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or
contingent, if contingent, describe the contingency.
3. lf 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, wanants, or rights. Speciff the amount of such securities or assets any officer, director, associated
company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to
any securities substantially all of which are outstanding in the hands of the general public where the options, warrants, or rights were
1. Give date of the latest closing of the stock
book priorto end ofyear, and, in a footnote, state
the purpose of such closing:
2. State the total number of votes cast at the latest general
meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by prory.
Total:
By Prory:
56709126
56709126
3. Give the date and place of
such meeting:
5t1A2U6
Spokane, Washington
Line
No
Name (Title) and Address of
Security Holder
(a)
VOTING SECURITIES
4. Number of votes as of (date): 1111812016
Total Votes
(b)
Common Stock
(c)
Preferred Stock
(d)
Other
(e)
5 TOTAL votes of all voting securities 62,726,621 62,726,621
o TOTAL number of security holders 8,440 8,440
7 TOTAL votes of security holders listed below 675,124 675,124
I Computershare Trust Company NA as escrow agent for:
I Wlliam A Corbus, Juneau, AK 300,000 300,000
't0 Malcolm A Menzies, Juneau, AK 1 13,301 1 13,301
11 Mark T Thies, Spokane, WA 54,678 54,678
12 Gary Ely, Llberty Lake, WA 40,000 40,000
13 Niels F Larsen & Wlhelmine J Larsen Jt Ten, Juneau, AK 39,312 39,3'12
14 Jane N MacKinnon, Juneau, AK 37,v7 37,U7
15 Roger D Woodworth, Colbert, WA 22,985 22,985
'16 T R Quinlan/A M Quinlan Trustees of Quinlan Trust 22,643 22,643
17 John F Kelly 22,576 22,576
18 T Mcleod & G Mcleod Ttees Tlm & Geri Mcleod Lv Tr, Juneau, AK 22,282 22,282
19
20
FERC FORM NO.2 (12-96)Page 107
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tA4
FOOTNOTE DATA
Schedule Pase:107 Line No.: 1 Column: 1
To pay the 1211512016 dividend.
FERC FORM NO.2 fl2-96)Pase 552.1
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tA4
lmoortant Chanoes Durino the Quarter/Year
Give details conceming the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries.
Answer each inquiry. Enter "none" or "not applicable" where applicable. lf the answer is given elsewhere 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 from whom the franchise rights were
acquired. lf the franchise rights were acquired without the payment of consideration, state that fact.
2. Acquisition of ownership in other cnmpanies by reorganization, merger, or consolidation with other companies: Give names of companies
involved, particulars conceming the transactions, name of the Commission authorizing the transaction, and reference to Commission
authorization.
3. Purchase or sale of an operaling unit or system: Briefly describe the property, and the related transactions, and cite Commission
authorization, if any was required. Give date joumal entries called for by Uniform System of Accounts were submitted to the Commission.
4. lmportant leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give efiective
dates, lengths of terms, names of parties, rents, and other conditions. State name of Commission authorizing lease and give reference to such
authorization.
5. lmportant extension or reduction of transmission or distribution system: State tenitory added or relinquished and date operations began or
ceased and cite Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate
annual revenues of each class of service.
Each natural gas company must also state major new conlinuing sour@s of gas made available to it ftom purchases, development, purchase
contracl or otherwise, giving location and approximate total gas volumes available, period of contracts, and olher parties to any such
anangements, etc.
6. Obligations incuned 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 effect and nature of any important wage scale changes during the year.
9. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings
culminated during the year.
10. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director,
security holder, voting trustee, associated crmpany or known associate of any of these persons was a party 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 affected.
'l2. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occuned during
the reporting period.
13. ln the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please
describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the
respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s).
Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.
l. None
2. None
3. None
4. None
5. None
6. Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0
million. A two-year option was exercised by the Company in May 2016 to extend the maturity of the facility
agreement to April 2021.
Balances outstanding (including letters of credit) under the Company's revolving committed lines of credit were
as follows as of December 31 ,2016 and December 31 ,2015 (dollars in thousands):
December 31, December 31,
2016 2015
Balance outstanding at end of period
Letters of credit outstanding at end of period
$120,000
$34,353
$105,000
s44,595
FERC FORM NO.2 (12-96)1 08.1
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
lmportant Changes During the Quarter/Year
In August 2016, Avista Corp. entered into a term loan agreement with a commercial bank in the amount of
$70.0 million with a maturity date of December 30,2016. Loans under this agreement were unsecured and had
a variable annual interest rate. The Company borrowed the entire $70.0 million available under this agreement,
which was used to repay a portion of the $90.0 million in first mortgage bonds that matured in August2016.
This term loan was subsequently repaid in full in December using the proceeds from the first mortgage bonds
issued in December 2016 (discussed below).
In December 2016, Avista Corp. issued and sold $175.0 million of 3.54 percent first mortgage bonds due in
2051 pursuant to a bond purchase agreement with institutional investors in the private placement market. The
total net proceeds from the sale of the bonds were used to repay the $70.0 million term loan discussed above
and to repay a portion of the borrowings outstanding under the Company's $400.0 million committed line of
credit. In connection with the execution of the bond purchase agreement, the Company cash-settled seven
interest rate swap derivatives (notional aggregate amount of $125.0 million) and paid a total of $54.0 million.
The debt issuance was approved by regulatory commissions as follows: UTC (Docket No. UE-151822 Order
01) IPUC (Case No. AVU-U- l5-01 Order No. 33401) and the OPUC (Docket W 4294 Order No. l5-305).
7. None
8. Average annual wage increases were 2.5o/o for non-exempt employees effective February 22,2016. Average
annual wage increases were 3.0%ofor exempt employees efflective February 22,2016. Officers received
average increases of 5.7o/o effective February 22,2016. Certain bargaining unit employees received increases
of 3.0%o effective March 26,2016.
9. Reference is made to Note l6 of the Notes to Financial Statements.
10. None
ll.
Washington General Rate Cases
2015 General Rate Cases
In January 2016, we received an order (Order 05) that concluded our electric and natural gas general rate cases
that were originally filed with the UTC in February 2015. New electric and natural gas rates were effective on
January 11,2016.
The UTC-approved rates are designed to provide a 1.6 percent, or $8.1 million decrease in electric base
revenue, and a7.4 percent, or $10.8 million increase in natural gas base revenue. The UTC also approved an
rate of retum on rate base (ROR) of 7.29 percent, with a common equity ratio of 48.5 percent and a 9.5 percent
retum on equity (ROE).
UTC Order Denying Industrial Customers of Northwest Utilities / Public Counsel Joint Motionfor
Clarification, UTC StaffMotion to Reconsider and WC StaffMotion to Reopen Record
On January 19,2016, the Industrial Customers ofNorthwest Utilities (ICNU) and the Public Counsel
FERC FORM NO.2 (12-96)108.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
2016/Q4
lmportant Chanqes Durinq the Quarter/Year
Unit of the Washington State Office of the Attorney General (PC) filed a Joint Motion for Clarification
with the UTC. In the Motion for Clarification, ICNU and PC requested that the UTC clariff the
calculation of the electric attrition adjustment and the end-result revenue decrease of $8.1 million. ICNU
and PC provided their own calculations in their Motion, and suggested that the revenue decrease should
have been $19.8 million based on their reading of the UTC's Order.
On January 19,2016, the UTC Stafl which is a separate party in the general rate case proceedings from
the UTC Advisory Staff, filed a Motion to Reconsider with the UTC. In its Motion to Reconsider, the
Staffprovided calculations and explanations that suggested that the electric revenue decrease should have
been a revenue decrease of $27.4 million instead of $8.1 million, based on its reading of the UTC's
Order. Further, on February 4,2016, the UTC Stafffiled a Motion to Reopen Record for the Limited
Purpose of Receiving into Evidence Instruction on Use and Application of Stafls Attrition Model, and
sought to supplement the record 'to incorporate all aspects of the Company' Power Cost Update." Within
this Motion, UTC Staff updated its suggested electric revenue decrease to $19.6 million.
None of the parties in their Motions raised issues with the UTC's decision on the natural gas revenue
increase of $10.8 million.
On February 19,2016, the UTC issued an order (Order 06) denying the Motions summarized above and
affirmed Order 05 including an $8.1 million decrease in electric base revenue.
FERC FORM NO.2 108.3
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
lmportant Changes During the Quarter/Year
PC Petitionfor Judicial Review
On March 18,2016, PC filed in Thurston County Superior Court a Petition for Judicial Review of the
UTC's Order 05 and Order 06 described above that concluded our 2015 electric and natural gas general
rate cases. In its Petition for Judicial Review, PC seeks judicial review of five aspects of Order 05 and
Order 06, alleging, among other things, that (l) the UTC exceeded its statutory authority by setting rates
for our natural gas and electric services based on amounts for utility plant and facilities that are not "used
and useful" in providing utility service to customers; (2) the UTC acted arbitrarily and capriciously in
granting an attrition adjustment for our electric operations after finding that the we did not meet the
newly articulated standard regarding attrition adjustments; (3) the UTC erred in applying the "end results
test" to set rates for our electric operations that are not supported by the record; (4) the UTC did not
correct its calculation of our electric rates after significant errors were brought to its attention; and (5) the
UTC's calculation of our electric rates lacks substantial evidence.
PC is requesting that the Court (l) vacate or set aside portions of the UTC's orders; (2) identifu the errors
contained in the UTC's orders; (3) find that the rates approved in Order 05 and reaffrrmed in Order 06
are unlawful and not fair, just and reasonable; (4) remand the matter to the UTC for further proceedings
consistent with these rulings, including a determination of our revenue requirement for electric and
natural gas services; and (5) find the customers are entitled to a refund.
On April 18,2016, PC filed an application with the Thurston County Superior Court to certify this matter
for review directly by the Court of Appeals, an intermediate appellate court in the State of Washington.
After briefing and argument, the matter was certified on April 29,2016 and accepted by the Court of
Appeals on July 29,2016. The parties are providing briefs to the Court, after which the Court will set the
matter for argument. A decision from the Court is not expected until late 2017, at the earliest.
The new rates established by Order 05 will continue in effect while the Petition for Judicial Review is
being considered. We believe the UTC's Order 05 and Order 06 finalizing the electric and natural gas
general rate cases provide a reasonable end result for all parties. If the outcome of the judicial review
were to result in an electric rate reduction greater than the decrease ordered by the UTC, it may not
provide us with a reasonable opportunity to eam the rate of retum authorized by the UTC.
2016 General Rate Cases
On December 15, 2016, the UTC issued an order related to our Washington electric and natural gas general rate
cases that were originally filed with the UTC in February 2016. The UTC order denied the Company's proposed
electric and natural gas rate increase requests of $38.6 million and $4.4 million, respectively. Accordingly, our
current electric and natural gas retail rates will remain unchanged in Washington State.
FERC FORM NO. 2 108.4
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
lmportant Changes During the Quarter/Year
Our original requests were based on a proposed ROR of 7.64 percent with a common equity ratio of 48.5
percent and a9.9 percent ROE.
On December 23,2016 we filed a Petition for Reconsideration or, in the alternative, Rehearing (Petition) with
the UTC related to our 2016 general rate cases.
The UTC's Order and Avista Corp.'s Response
The primary reason given by the UTC in reaching its conclusion is that, in our request, we did not follow
an "appropriate methodology" to show the existence of attrition, as between historical data and current
and projected data. Further, the order states that, among other things, we did not demonstrate, as a
necessary condition to being allowed an attrition adjustment, that we have suffered from chronic
under-earning caused by circumstances beyond our ability to control. We disagree with the UTC as to
various questions of fact and law.
In support of its decision, the UTC stated that we did not demonstrate that our current revenue is
insuffrcient for covering costs and providing the opportunity to earn a reasonable return during the 2017
rate period. The UTC also stated that we did not demonstrate that our capital expenditures and increased
operating costs are both necessary and immediate.
Our Petition responding to the UTC's order points to evidence in the case that demonstrates, contrary to
the UTC's findings, the following:
o Current retail rates are not sufficient for the 2077 rate period, and therefore a revenue increase is
necessary. In previously filed testimony, UTC Staffagreed that current rates were not sufficient.
o The costs associated with the growth in rate base and operating expenses are growing at a faster
pace than revenue from retail sales, and therefore a revenue adjustment is necessary to close this
gap. The revenue adjustment to close this gap is sometimes called an attrition adjustment. In
previously filed testimony, UTC Staffagreed that a revenue adjustment is necessary to close this
gap.
o All of the capital projects and operating expenses we included in the case are necessary in the time
frame proposed in order for us to continue to provide safe, reliable service to customers. No party
in the case identified a single capital project that should not be completed in the time frame we
proposed (other than Public Counsel's general opposition to Advanced Metering Infrastructure).
o We presented all of the studies and analyses in this case, consistent with our previous filings with
the UTC, and the UTC Staff acknowledged in previously filed testimony, that we provided such
studies.
o We eamed close to our allowed retum on equity during each of the years 2013 through 2015, and
into 2016. This opportunity was possible only with the revenue increases related to attrition
adjustments, and an attrition adjustment is also necessary for 2017.
FERC FORM NO.2 108.5
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
2016/Q4
lmportant Changes During the Quarter/Year
In previously filed testimony, the UTC Staff supported electric and natural gas revenue increases totaling
$28.4 million. Commissioner Jones dissented and did not support the decision. In his dissent,
Commissioner Jones supported an electric revenue increase of $26.0 million, and a natural gas increase
of $2.4 million, based on UTC Staffs analysis.
On February 27,2017, we received an order from the UTC denying our Petition and the UTC confirmed
its previous order in the case. In its order denying the Petition, the UTC generally referred back to its
prior findings and conclusions. Consistent with the original order, Commissioner Jones dissented and did
not support the decision in the latest order.
We evaluated all options for appeal of the Commission's latest order and determined that appeal of the
Commission's decision to the courts would bring a significant amount of uncertainty regarding the level
of success of such an appeal, as well as the timing of any value that might come following a process that
would take between one and two years. The Company believes greater long-term value can be achieved
through focusing on upcoming new general rate cases, than through appealing the recent decision in the
courts.
Now that the 2016 case is concluded, we will request meetings with the Commissioners to better
understand their concerns and their expectations going forward. The Company will also reach out to
Commission Staff and other parties to discuss needs and expectations prior to filing the next general rate
case. The Company plans to file a general rate case in the second quarter of 2017.
Idoho General Rate Cases
2015 General Rate Cases
In December 2015, the IPUC approved a settlement agreement between Avista Utilities and all interested
parties related to our electric and natural gas general rate cases, which were originally filed with the IPUC on
June 1, 2015. New rates were effective on January 1,2016.
The settlement agreement is designed to increase annual electric base revenues by $1.7 million or 0.7 percent
and annual natural gas base revenues by $2.5 million or 3.5 percent. The settlement is based on an ROR of 7.42
percent with a common equity ratio of 50 percent and a9.5 percent ROE.
The settlement agreement also reflects the following:
o the discontinuation of the after-the-fact earnings test (provision for earnings sharing) that was
originally agreed to as part of the settlement of our 2012 electic and natural gas general rate cases,
and
o the implementation of electric and natural gas Fixed Cost Adjustment mechanisms, as discussed
below.
FERC FORM NO.2 (12-96)108.6
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
20161Q4
lmportant Ghanges During the Quarter/Year
2016 General Rate Cases
In December 2016, the IPUC approved a settlement agreement between us and other parties in our electric
general rate case, concluding our Idaho electric general rate case originally filed in May 2016. New rates took
eflect on January l,20ll under the settlement agreement. We did not file a natural gas general rate case in
2016.
The settlement agreement increases annual electric base rates by 2.6 percent (designed to increase annual
electric revenues by $6.3 million). The settlement revenue increase is based on a ROR of 7.58 percent with a
common equity ratio of 50 percent and a 9.5 percent ROE.
In addition to the agreed upon increase in electric revenues to recover costs primarily driven by our increased
capital investments in infrastructure to serve customers, the settlement agreement includes the continued
recovery of approximately $4.1 million in costs related to the Palouse Wind Project through the PCA
mechanism rather than through base rates.
In our original request we requested an overall increase in base electric rates of 6.3 percent (designed to
increase annual electric revenues by $15.a million), effective January 1,2017.
Our original request was based on a proposed ROR of 7 .78 percent with a cornmon equity ratio of 50 percent
and a9.9 percent ROE.
Oregon General Rate Cases
2014 General Rate Cose
In March 2015, we filed an all-party settlement agreement with the OPUC related to our natural gas general rate
case, which was originally filed in September 2014. The settlement agreement was designed to increase base
natural gas revenues by $5.3 million. Included in this base rate increase is $0.3 million in base revenues that we
were already receiving from customers through a separate rate adjustment. Therefore, the net increase in base
revenues was $5.0 million, or 4.9 percent on a billed basis. The parties requested that new retail rates become
effective on April 16,2015. On April 9, 2015, the OPUC issued an Order approving the sefflement agreement
as filed.
This settlement agreement provided for an overall authorized ROR of 7.516 percent with a common equity ratio
of 51 percent and a 9.5 percent ROE.
2015 General Rate Case
On February 29,2016, the OPUC issued a preliminary order (and a final order on March 15,2016) concluding
our natural gas general rate case, which was originally filed with OPUC in May 2015. The OPUC order
approved rates designed to increase overall billed natural gas rates by 4.9 percent (designed to increase annual
natural gas revenues by $4.5 million). New rates went into effect on March 1,2016. The final OPUC order
FERC FORM NO. 2 (12-96)108.7
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t20't7
Year/Period of Report
2016/Q4
lmportant Changes DurinE the Quarter/Year
incorporated two partial settlement agreements which were entered into during November 2015 and January
2016.
The OPUC order provided an authorized ROR of 7.46 percent with a common equity ratio of 50 percent and a
9.4 percent ROE.
The November 2015 partial settlement agreement, approved by the OPUC, included a provision for the
implementation of a decoupling mechanism, similar to the Washington and Idaho mechanisms described below.
See further description and a summary of the balances recorded under this mechanism below.
2016 General Rate Case
On November 30, 2016 we filed a natural gas general rate case with the OPUC. We have requested an overall
increase in base natural gas rates of 14.5 percent (designed to increase annual natural gas revenues by $8.5
million). Our request is based on a proposed ROR of 7.83 percent with a common equity ratio of 50 percent and
a 9.9 percent ROE. The OPUC has up to l0 months to review our request and issue a decision.
12. On May 16, 2016 Marian Durkin was named Corporate Secretary, in addition to her current role as Senior
Vice President, General Counsel and Chief Compliance Officer. The former Corporate Secretary, Karen Feltes,
will retain her previous responsibilities as Senior Vice President and Chief Human Resources Officer and
continue to serve as the lead executive for the Board of Directors Compensation and Organization Committee.
On June 30,2016, Avista Corp.'s Board of Directors decided to increase the number of board members from l0
to I I and elected Scott H. Maw to fill the vacancy and serve as a director on the board effective August 1,2016.
On July 31,2016, Roger Woodworth, Vice President of Avista Corp. retired.
13. Proprietary capital is not less than 30 percent.
FERC FORM NO.2 (12-96)108.8
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
finn original
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!/Q[
Comparative Balance Sheet (Assets and Other Debits)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Cunent Year End of
QuarterfYear Balance
(c)
Prior Year
End Balancc
12t31
(d)
1 UTILITY PLANT
2 Utility Plant (1 01-1 06, 1 14)200-201 5,304,257,392 4,923,194,978
3 Construction Work in Progress (107)200-201 144,751,274 190,108,665
4 TOTAL Utility Plant (Total of lines 2 and 3)200-201 5,449,008,666 5,1 1 3,303,643
5 (Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115)1,770,511,420 1,680,907,938
6 Net Utility Plant (Total of line 4 less 5)3,678,497,246 3,432,395,705
7 Nuclear Fuel (120.1 thru 120.4, and 120.6)0 0
I (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 Utility Plant (Total of lines 6 and 9)3,678,497,246 3,432,395,705
11 Utility Plant Adjustments (1 16)122 0 0
12 Gas Stored-Base Gas (117.1)220 6,992,076 6,992,076
13 System Balancing Gas (1 17.2)220 0 0
14 Gas Slored in Reservoirs and Pipelines-Noncunent (117.3)220 0 0
15 Gas Owed to System Gas (1 17.4)220 0 0
16 OTHER PROPERW AND INVESTMENTS
't7 Nonutility Property (121 )3,058,415 2,740,379
18 (Less) Accum. Provision for Depreciation and Amortizalion (122)211,651 201 ,768
'19 lnvestments in Associated Companies (123)222-223 11,547,000 11,547,000
20 lnvestments in Subsidiary Companies (123.1)224-225 161,804,156 157,515,280
21 (For Cost of Account 1 23.1 See Footnote Page 224, line 40)
22 Noncurrent Portion of Allowances 0 0
23 Other lnvestments (124)222-223 6,945,185 23,760,324
24 Sinking Funds (125)0 0
25 Depreciation Fund (126)0 0
26 Amortization Fund - Federal (127)0 0
27 Other Special Funds (128)13,61 1 ,799 20,755,670
28 Long-Term Portion of Derivative Assets (175)5,356,765 22,687
29 Long-Term Portion of Derivative Assets - Hedges (176)0 0
30 TOTAL Other Property and lnvestments (Total ot lines 17-20,22-29)202,111,669 216,139,572
31 CURRENT AND ACCRUED ASSETS
32 Cash (131)1,373,667 2,074,149
33 Special Deposits (1 32-1 3a)7,540,762 14,430,708
34 Working Funds (135)1 ,138,883 691,896
35 Temporary Cash lnvestments (136)222-223 22,854 204,23',1
36 Notes Receivable (141)0 0
37 Customer Accounts Receivable ('l 42)172,903,052 160,488,098
38 Other Accounts Receivable (143)4,163,026 5,500,743
39 (Less) Accum. Provision for Uncollectible Accounts - Credit (144)4,961,486 4,469,344
40 Notes Receivable from Associated Companies (145)0 0
41 Accounts Receivable from Associated Companies (146)462.036 469,096
42 Fuel Stock (151)3,566,367 3,293,585
43 Fuel Stock Expenses Undistributed (152)0 0
FERC FORM NO.2 (REV 06-04)Page 110
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
End of 2016/Q4
Comparative Balance Sheet (Assets and Other Debits)(continued)
Line
No
Title of Account
(a)
Reference
Page Number
(b)
Cunent Year End of
QuarterA/ear Balance
(c)
Prior Year
End Balance
't2t31
(d)
44 Residuals (Elec) and Extracled Produds (Gas) (153)0 0
45 Plant Materials and Operating Supplies (154)37,423,657 33,931,771
46 Merchandise (155)0 0
47 Other Materials and Supplies (156)0 0
48 Nuclear Materials Held for Sale (157)0 0
49 Allowanccs (158.1 and 158.2)0 0
50 (Less) Noncunent Portion of Allowances 0 0
51 Stores Expense Undistributed ('l 63)( 86)0
52 Gas Stored Underground-Cunent (164.1)220 8,029,020 12,774,487
53 Liquefied Natural Gas Stored and Held for Processing (164.2 thru 164.3)220 0 0
54 Prepayments (165)230 14,459,235 10,580,934
55 Advances for Gas (166 thru 167)0 0
56 lnterest and Dividends Receivable ('171)107,608 39,738
57 Rents Receivable (172)1,429,562 1,749,949
58 Accrued Utility Revenues (173)0 0
59 Miscellaneous Cunent and Aerrued Assets (174)537,127 527,051
60 Derivative lnstrument Assets (175)10,644,436 706,117
61 (Less) Long-Term Portion of Derivative lnstrument Assets (175)5,356,765 22,687
62 Derivative lnstrument Assets - Hedges (176)0 0
63 (Less) Long-Term Portion of Derivative lnstrument Assests - Hedges (176)0 0
64 TOTAL Cunent and Accrued Assets (Total of lines 32 thru 63)253,482,955 242,970,522
65 DEFERRED DEBITS
66 Unamortized Debt Expense (181)11,690,5'12 11,527,001
67 Extraordinary Property Losses (1 82.1)230 0 0
68 Unrecovered Plant and Regulatory Study Costs (182.2)230 0 0
69 Other Regulatory Assets (182.3)232 622,464,411 573,031,070
70 Preliminary Survey and lnvestigation Charges (Electric)(1 83)0 467,080
71 Preliminary Survey and lnvestigalion Charges (Gas)(183.1 and 183.2)0 0
72 Clearing Accounts (184)'t3,933 527
73 Temporary Facilities (1 85)0 0
74 Miscellaneous Defened Debits (1 86)233 43,850,403 26,759,597
75 Defened 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)13,699,992 15,520,432
78 Accumulated Defened lncome Taxes (190)234-235 147,354,707 1 36,036,1 1 9
79 Unrecovered Purchased Gas Costs (191)( 30,819,635)( 17,880,236)
80 TOTAL Defened Debits (Total of lines 66 thru 79)808,254,323 745,461,590
81 TOTAL Assets and Other Debits (Total of lines 10-15,30,64,and 80)4,949,338,269 4,643,959,465
FERC FORM NO. 2 (REV 06-04)Page 111
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period ol Report
End of 2016/Q4
Comparative Balance Sheet (Liabilities and Other Credits)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
QuarterlYear
Balance
Prior Year
End Balance
12t31
(d)
1 PROPRIETARY CAPITAL
2 Common Stock lssued (201)250-251 1,052,578,756 984,603,843
3 Prefened Stock lssued (204)250-251 0 0
4 Capital Stock Subscribed (202, 205)252 0 0
5 Stock Liability for Conversion (203, 206)252 0 0
6 Premium on Capital Stock (207)252 0 0
7 Other Paid-ln Capital (208-21 1)253 ( 9,506,476)( 9,506,476)
8 lnstallments Received on Capital Stock (212)252 0 0
I (Less) Discount on Capital Stock (213)2il 0 0
10 (Less) Capital Stock Expense (214)2il ( 32,208,771\( 29,238,213)
11 Retained Eamings (21 5, 215.1, 216)118-119 582,1 56,946 536,821,476
12 Unappropriated Undistributed Subsidiary Eamings (216.1)118-119 ( 1,143,222)( 5,881,619)
13 (Less) Reacquired Capital Stock (217)250-251 0 0
14 Accumulated Other Comprehensive lncome (219)117 ( 7,s67,509)( 6,649,771)
15 TOTAL Proprietary Capital (Total of lines 2 thru 14)1,648,727,266 1,528,625,666
16 LONG TERM DEBT
17 Bonds (221)256-257 1,621,700,000 1,536,700,000
18 (Less) Reacquired Bonds (222)256-257 83,700,000 83,700,000
19 Advances from Associated Companies (223)256-257 51,547,000 51,547,000
20 Other Long-Term Debt (224)256-257 0 0
21 Unamortized Premium on Long-Term Debt (225)258-259 168,783 177,666
22 (Less) Unamortized Discount on Long-Term Debt-Dr (226)258-259 960,522 1 ,1 34,563
23 (Less) Current Portion of Long-Term Debt 0 0
24 TOTAL Long-Term Debt (Total of lines 17 thru 23)1,588,755,26'l 1,503,590,103
25 OTHER NONCURRENT LIABILITIES
26 Obligations Under Capital Leases-Noncunent (227)2,402,917 3,274,583
27 Accumulated Provision for Property lnsurance (228.1)0 0
28 Accumulated Provision for lnjuries and Damages (228.2)260,000 239,910
29 Accumulated Provision for Pensions and Benefits (228.3)226,55',t,767 201 ,453,549
30 Accumulaled Miscellaneous Operating Provisions (228.4)0 0
31 Accumulated Provision for Rate Refunds (229)6,600,086 11,476,706
FERC FORM NO.2 (REV 06-04)Page 112
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoorl ls:
[]nn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!/Q[
Comparative Balance Sheet (Liabilities and Other Credits)(continued)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Cunent Year
End of
QuarlerfYear
Balance
Prior Year
End Balance
12t31
(d)
32 Long-Term Portion of Derivative lnstrument Liabilities 41,994,092 52,248,445
33 Long-Term Portion of Derivative lnstrument Liabilities - Hedges 0 0
34 Asset Retirement Obligations (230)15,514,534 15,996,704
35 TOTAL Other Noncunent Liabilities (Total of lines 26 thru 34)293,323,396 284,689,897
36 CURRENT AND ACCRUED L]ABILITIES
37 Cunent Portion of Long-Term Debt 0 0
38 Notes Payable (231)120,000,000 105,000,000
39 Accounts Payable (232)111J24,132 109,244,954
40 Notes Payable to Associated Companies (233)5,634,684 22,',t77,680
41 Accounts Payable to Associated Companies (234)37,625 18,798
42 Customer Deposits (235)3,808,551 3,273,927
43 Taxes Accrued (236)262-263 ( 16,431,293)7,186,818
44 lnterest Accrued (237)14,676,249 14,179,5'.17
45 Dividends Declared (238)0 0
46 Matured Long-Term Debt (239)0 0
47 Matured lnterest (240)0 0
48 Tax Collections Payable (241)1,431,933 1,7s9,040
49 Miscellaneous Current and Accrued Liabilities (242)268 58,068,093 57,577,117
50 Obligations Under Capital Leases-Cunent (243)87 r,667 871,667
51 Derivative lnstrument Liabilities (244)55,O76,777 85,797,553
52 (Less) Long-Term Portion of Derivative lnstrument Liabilities 4't,994,092 52,248,445
53 Derivative lnstrument Liabilities - Hedges (245)0 0
54 (Less) Long-Term Portion of Derivative lnstrument Liabilities - Hedges 0 0
55 TOTAL Cunent and Accrued Liabilities (Total of lines 37 thru 54)312,304,326 354,838,626
56 DEFERRED CREDITS
57 Customer Advances for Construction (252)2,266,861 2,161,687
58 Accumulated Deferred lnvestment Tax Credits (255)31,501,931 12,639,187
59 Defened Gains from Disposition of Utility Plant (256)0 0
60 Other Defened Credits (253)269 15,262,118 39,790,303
61 Other Regulatory Liabilities (254)278 77,740,268 40,976,484
62 Unamortized Gain on Reac4uired Debt (257)260 1,836,970 1,966,507
63 Accumulated Defened lncome Taxes - Accelerated Amortization (281)0 0
64 Accumulated Defened lncome Taxes - Other Property (282)731,162,121 646,870,366
65 Accumulated Defened lncome Taxes - Other (283)246,457,751 227,810,639
bb TOTAL Defened Credits (Total of lines 57 thru 65)1,106,228,020 972,215,173
67 TOTAL Liabilities and Other Credits (Total of lines 15,24,35,55,and 66)4,949,338,269 4,643,959,465
FERC FORM NO.2 (REV 06-04)Page '113
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t20't7
Year/Period of Report
End of &!QQl
Statement of lncome
Quarterly
1. Enter in column (d) the balance for the reporting quarter and in column (e) the balance for the sarne three month period for the prior year.
2. Report in column (0 the quarter to date amounts for electric utility function; in column (h) the quarter to date amounts for gas utility, and in O the quarter to date amounts for
other utility funciion for the current year quarter.
other utility funclion for the prior year quarter.
4. lf 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 (0
6. Report amounts for accounts 412 end 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to a utility department.
Spread the amount(s) over lines 2 thru 25 as appropriate. lnclude these amounts in columns (c) and (d) totals.
7. Report amounts in account 414, Other Utility Operating lncome, in the same manner as ac@unts 412 and 413 above.
8. Report data for lines 8, 10 and 1 1 for Natural Gas companies using accounts 404.1, 404.2, 404.3, 407.1 and 407.2.
9. Use page 122 br important notes regarding the statement of incorne for any ac@unt thereof.
1 0. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility's
customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effecled the gross revenues or @sts to which the
contingency relates and the tax effects together with an explanation of the major faclors which affecl the rights of the utility to retain such revenues or recover amounts paid
with respect to poirrer or gas purchases.
1 1 Give concise explanations concerning significant amounts of any refunds made or receaved during the year resulting from settlement of any rate proceeding affecting
revenues received or costs incurred for po,ver or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accounts.
12. ll any notes appearing in the report to stokholders are applicable to the Statement of lncome, such notes may be included alpage 122.
1 3. Enter on page '122 a concise explanation of only those changes in accounting mehods made during the year which had an effecl on net income, including the basis of
allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes.
14. Explain in a footnote if the previous yeafs/quarter's figures are different from that reported in prior reports.
15. lf the columns are insuffcient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule.
Title of Account
Line (a)
No.
Reference
Page
Number
(b)
Total
Cunent Year to
Date Balance
for ouarterffear
(c)
Total
Prior Year to Date
Balance
for Oua(erffear
(d)
Cunent Three
Months Ended
Quarterly only
No Fourth Quarter
(e)
Prior Three
Months Ended
Quarterly Only
No Fourth Quarter
(0
I JTILIW OPERATING INCOME
2 ias Operatjng Revenues (400)30&301 1,476,215,12i 1,s30,543,739 0 0
3 )perating Expenses
4 Operation Expenses (401 )317-325 8s8,140,85(980,245,446 0 0
5 Maintenance Expenses (402)317-325 68,632,68[64,022,7s6 0 0
6 Depreciation Expense (403)33&338 1n,221,41i 122,488,7@ 0 0
7 Depreciation Expense for Asset Retirement CosE (403.1)336-338 0 0 0
8 Amortization and Depletion of Utility Plant (4H05)336-338 26,sil,221 21,544,0M 0 0
I Amortization of Utility Plant Acu. Adjustment (406)33S338 99,04i 99,047 0 n
10 Amort. of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.'l)U 0 0
11 Amortization of Conversion Expenses (407.2)0 U
12 Regulatory Debits (407,3)2,541,921 1,619,427 0 0
13 (Less) Regulatory Credits (407.4)1,790,145 12,818,909 c 0
14 Taxes Other than lncome Taxes (408.1)262-263 96,218,09€95,'109,798 c 0
15 lncome Taxes-Federal (409, 1)262-263 ( 37,366,331)5,601,404 c 0
16 lncome Taxes-Other (409, 1 )262-263 379,481 919,149 c 0
17 Provision of Defen€d lncome Taxes (410.1 )2*235 102,646,82e 65,371,809 c 0
't8 (Less) Provision for Defened lncome Taxes-Credit (41 1.1)23/-235 1,622,70e 2,423,024 c 0
19 lnvestrnent Tax Credit Adjustment-Net (41 1,4)18,862,74a 481,680 c 0
20 (Less) Gains from Disposition of Utility Plant (41 1.6)c 0 U
21 Losses from Disposition of Utility Plant (41 1.7)c 0 0 0
22 (Less) Gains ftom Disposition of Allowances (41 1.8)c 0 0 0
23 Losses ftom Disposition of Allowances (41 1.9)0 0 0 0
24 Accretion Expense (41 1.10)(0 0 0
25 TOTAL Utility Qerating Expenses (Total of lines 4 thru 24)1,263,518,1 2;1,U2,261,2%0 0
26 Net Utility operating lncome (Total of lines 2 less 25) (Carry foMard to page 1 16,
ine 271 212,696,99(18f.,282,443 0 0
FERC FORM NO.2 (REV 06-04)Page '|.14
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiAn Originat(2) [lA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 20l!/Q[
Statement of lncome
Line
No.
Elec. Utility
Cunent
Year to Date
(in dollars)
(s)
Elec. Utility
Previous
Year to Date
(in dollars)
(h)
Gas Utility
Cunent
Year to Date
(in dollars)
(i)
Gas Utility
Previous
Year to Date
(in dollars)
o
Other Utility
Current
Year to Date
(in dollars)
(k)
Other Utility
Previous
Year to Date
(in dollars)
(D
1
2 1,004,897,624 1,006,140,06 1 471,317,499 524,403,678 0 0
3
4 523,294,682 567,238,063 3v,u6,174 413,007,383 0 0
5 53,468,423 50,148,482 15,'164,266 1 0 0
b 101,769,331 95,895,130 28,452,086 26,593,579 0 0
7 0 0 0 0 0 0
8 20,106,387 16,5't9,997 6,447,838 s,024,007 0 0
I 99,047 99,047 0 0 0 0
10 0 0 0 0 0 0
11 0 0 0 0 0 0
12 2,573,428 2,650,525 ( 31,501)( 1,031,0e8)0 0
13 1,781,713 12,146,367 8,432 672,542 0 0
14 74,172,165 72,133,173 22,U5,931 22,976,625 0 0
15 ( 34,063,947)10,884,M7 ( 3,302,384)( 5,283,443)0 0
16 365,91 1 936,622 13,570 ( 17,473)0 0
17 79,435,289 54,107,931 23,211,537 1 1,263,878 0 0
18 1,397,052 2,599,365 225,6il 176,341 )0 0
19 '18,887,909 511,740 ( 25.16/.)( 30,060)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
25 836,929,860 856,379,825 426,*8,267 485,881,471 0 0
26 167,967,764 149,760,236 44,729,232 38,522,207 0 0
FERC FORM NO. 2 (REV 06-04)Page 1'i.5
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of &!!&[
Statement of lncome(continued)
Line
No.
Tifle of Account Reference
Page
Number
(a)(b)
Total
Curent Year to
Date Balance
for Quarterffear
(c)
Total
Prior Year to Date
Balance
for ouarter/Year
(d)
Cunent Three
Months Ended
Quarterly Only
No Fourth Quarter
(e)
Prior Three
Months Ended
Quarterly Only
No Fourth Ouarler
(0
27 Net Utility operating lncome (Canied forward from page 1 14)212,696,99€1ffi,282,443 0 0
28 OTHER INCOME AND DEDUCTIONS
29 Cther lncome
30 Nonutility Operating lncome
31 Revenues brm Merchandising, Jobbing and Contract Wod{ (415)c 0 0 0
32 (Less) Costs and Expense of Merchandising, Job & Contract Work (416)0 0 0
33 Revenues from Nonutility Operations (417)(0 n 0
u (Less) Expenses of Nonutility Operations (417.1)1 1,653,48i 9,566,840 0 0
35 Nonoperating Rental lnome (418)( s3s)( 939)0 0
36 Equity in Eamings of Subsidiary Companies (4'18.1)119 6,288,87€1 1,164,785 0 0
37 lnlerest and Dividend lncome (419)2,719,4tr 645,403 U 0
38 Allowance for Other Funds Used During Construction (419.1)7,298,9&7,961,552 c 0
39 Miscellaneous Nonoperating lncome (421)(795,424 0 0
40 Gain on Disposition of Property (421.1)240,297 142,552 0 0
41 TOTAL Other lncome fiotal of lines 31 thru 40)4,893,201 1 1,141,937 C 0
42 Clf|er lncome Deduclions
43 Loss on Disposition of Poperty (421.2)c 0 c 0
44 Miscellaneous Amortization (425)c 0 c 0
45 Donations (426.1)340 2,837JU 3,208,021 c 0
46 Lib lnsurance (426.2)2,589,158 3,079,994 c 0
47 Penalties (426.3)( 64,095)70,316 c 0
48 Expenditures for Certain Civic, Polithal and Related Activities (426.4)1,788,417 1,62s,650 c 0
49 Other Deduclions (426.5)1,915,238 1,386,500 c 0
50 TOTAL Other lncome Deductions Ootal of lines 43 lhru 49)340 9,065,88i 9,370,481 c 0
51 l-axes Applic. to Other lncome and Deductions
52 Taxes Oher than lnome Taxes (408.2)262-263 192,112 n2,511 c 0
53 lncome Taxes-Federal (409.2)262-%3 ( 10,041,967)( 715,329)c 0
54 I ncome Taxes-O,lher (409.2)262-263 ( 834,874)( 886,632)c 0
55 Povision for Deferred lnome Taxes (410.2)2v-235 I,585,99€1,006,935 c 0
56 (Less) Provision for Defened lncome Taxes-Crcdit (41 1.2)234-235 322,781 5,70/.,7U 0 0
57 lnveslment Tax Credit Adjustments-l.let (41 1,5)c 0 0 0
58 (Less) lnvestment Tax Credits (420)c 0 0 0
59 TOTAL Taxes on Other lncome and Deductions (Total of lines 52-58)( 9,421,513)( 6,097,249)0 0
60 Net other lncome and Deductions fiotal of lines 41, 50, 59)5,248,83:7,868,705 0 0
61 I{TEREST CHARGES
62 lnterest on Long-Term Debt (427)74,s27,23i 69,747,769 0 0
63 Amortization of Debt Disc. and Expense (428)2s8-259 458,08(419,914 0 0
64 Amortization of Loss on Reacquircd Debt (428.1)2,941,39{3,004,198 0 0
65 (Less) Amortization of Premium on Deblqedit (429)2sa2s9 8,88:8,883 0 0
66 (Less) Amortization of Gain on Reacquired Debt-Credit (429.1)(0 0 0
67 lnterest on Debt to Associated Companies (430)340 766,38!605,274 0 0
68 Other lnterest Erpense (431)340 4,386,03(2,$6,n7 0 0
69 (Less) Allowance for Bonowed Funds Used During Construction-Credit (432)2,352,52i 3,480,392 0 0
70 Net lnterest Charges (Total of lines 62 thru 69)N,717,721 72,924,107 0 0
71 lncome Before Extraordinary ltems Ootal of lines 27,60 and 70)137,228,10t 123,227,Ul 0 0
72 :XTRAORDINARY ITEMS
73 Extraordinary lncome (434)(0 0 0
74 (Less) Exkaordinary Deductions (435)(0 0 0
75 Net Extraordinary ltems (Total of line 73 less line 74)(0 0 0
76 lncome Tares-Federal and Other (409.3)%2-fr3 (0 0 0
77 Extraordinary ltems after Taxes Ootal of line 75 less line 76)(0 0
78 Net Income ootal of lines 71 and 77)137,228,10i 123,227,M1 0 U
FERC FORM NO.2 (REV 06-04)Page 116
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
5]Rn originat
nA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Statement of Accumulated Comorehensive lncome and Hedoino Activities
1. Report in columns (b) (c) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate.
2. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges.
3. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affec{ed and the related amounts in a footnote.
Line
No.Item
(a)
Unrealized Gains
and Losses on
availablejor-sale
securities
(b)
Minimum Pension
liabililg Adjustment
(net amount)
(c)
Foreign Cunency
Hedges
(d)
Other
Adjustments
(e)
I Balance ofAccount 219 at Beginning of Preceding
Year ( 7,887,881)
2 Preceding Quarterffear to Date Reclassifi cations
from Account 219 to Net lncome
3 Preceding Quarterffear to Date Changes in Fak
Value 1 ,238,1 10
4 Total (lines 2 and 3)1,238,110
5 Balance of Account 219 at End of Preceding
Ouarterffear ( 6,649,771)
6 Balance of Account 21 9 at Beginning of Current Year ( 6,649,771)
7 Cunent Quarterffear to Date Reclassifications from
Account 219 to Net lnmme
I Current Quarterffear to Date Changes in Fair Value ( 9',t7,738)
I Total (lines 7 and 8)( 917,738)
't0 Balance of Account 219 at End of Current
Quarterffear ( 7,567,509)
FERC FORM NO.2 (NEW 06-02)Page'117
Name of Respondent
Avista Corporation
This Reoort ls:(1) 5]Rn Orisinat(2) ;-1A Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 20161Q4
Statement of Accumulated Comprehensive lncome and Hedqinq Activities(continuedl
Line
No.
Other Cash Flow Hedges
lnterest Rate Swaps
0
Other Cash Flow Hedges
flnsert Foohote at Line I
to specify categoryl
(s)
Totals for eact
category of
items recorded in
Account 219
(h)
Net lncome
(Carried Forward
from Page 1 16,
Line 78)
(i)
Total
Comprehensive
lnome
fi)
1 ( 7,887,881)
2
3 I ,238,1 't 0
4 1,238,1',to 123,227,041 124,465,151
5 ( 6,U9,771)
b ( 6,e49,771)
7
8 ( 917,738)
9 ( 917,738)137,228,107 136,310,369
10 ( 7,567,509)
FERC FORM NO. 2 (NEW 06-02)Page 1l7a
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date ol Report
(Mo, Da, Yr)
03131t2017
Year/Period ol Report
End of 2016/Q4
Statement of Retained Earnings
1. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year.
affrled in column (b).
3. State the purpose and amountforeach reservation or appropriation ofretained earnings.
5. Shour dividends for each class and saies of capital stock.
Line
No
Item
(a)
Conta Primary
Account Affecled
(b)
Cunent Quarter
Year to Date
Balance
(c)
Previous Quarter
Year to Date
Balance
(d)
UNAPPROPRIATED RETAINED EARNINGS
1 Balance-Beginning of Period 517,393,547 492,987,406
2 Chanqes (ldentify by orescribed retained earninqs accounts)
3 Adjustments to Retained Earnings (Account 439)
4 TOTAL Credih to Retalned Eamings (Account 439) (footnote details)( 1,488,991)
5 TOTAL Debits to Retained Eamings (Account 439) (footnote details)
6 Balance Transferred from lncome (Accl 433 less Acci 41 8.1)130,939,231 fi2,042,256
7 Appropriations of Retained Eamings (Account 436)( 4,441,571\( 5,1s8,174)
8 TOTAL Appropriations of Retained Eamings (Account 436) (footnote details)
I Dividends Dedared-Preferred Stock (Account 437)
'10 TOTAL Dividends Declared-Prefened Stock (Account 437) (footnote details)
11 Dividends Dedared-Common Stock (Account 438)
12 TOTAL Dividends Dedared-Common Stock (Account 438) (footnote details)87,1il,240 82,396,803
13 Transfers from Account 216.'1, Unappropriated Undiskibuted Subsidiary Eamings 1,550,479 1,387,851
14 Balance-End ofPeriod (Total oflines 1,4, 5,6,8, 10, 12, and 13)562,729,017 522,551,719
15 APPROPRIATED RETAINED EARNINGS (Account 21 5)
16 TOTAL Appropriated Retained Earnings (Account 2l5) (footnote details)23,869,500 19,427,931
17 APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account
18 TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account ( 4,M1,571'l ( 5,158,174)
19 TOTAL Appropriated Retained Earnings (Accounts 215, 215.1) (Total of lines 19,427,929 14,269,757
20 TOTAL Retained Eamings (Accounb 215,215.1,216) (Total oflines 14 and 1 582,156,946 536,821,476
21 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 2'16.1 )
Report only on an Annual Basis no Quarterly
22 Balance-Beginning of Year (Debit or Credit)( s,881,619)( 1s,658,553)
23 Equity in Earnings for Year (Credit) (Account 418.'l)6,288,876 1 1,164,785
24 (Less) Dividends Received (Debit)
25 Oher Changes (Explain)( 1,550,479)( 1,387,851)
26 Balance-End ofYear ( 1,143,2221 ( s,881,619)
FERC FORM NO.2 (REV 06-04)Page 118-119
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Report(Mo, Da, Yr)
03131t2017
Year/Period of Report
End of &/Ql
Statement of Cash Flows
(t) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) lnclude commercial paper; and (d) ldentify
separately such items as investments, fixed assets, intangibles, etc.
(2) lnformation 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 Aclivities - Other: lnclude gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing
activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income
taxes paid.
(4) lnvesting Activities: lnclude at Other (line 25) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities
assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General
lnstruction 20: instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost.
Line Description (See lnstructions for explanation of codes)
(a)
Cunent Year
to Date
Quarterl/ear
Previous Year
to Date
QuarterfYear
No.
Net Cash Flow from Operating Activities
2 Net lncome (Line 78(c) on page 1 16)137,228,'.t07 123,227,041
3 Noncash Charges (Credits) to lncome:
4 Depreciation and Depletion 1 55, I 62,338 138,235,780
5 Amortization of defened power and gas costs, debt expense and exchange power 22,675,618 27,223,055
6 Defened lncome Taxes (Net)102,361 ,230 53,931,102
7 lnvestrnent Tax Credit Adjustments (Net)18,862,744 481,680
8 Net (lncrease) Decrease in Receivables ( 16,916,930)( 3,884,715)
9 Net (lncrease) Decrease in lnventory 980,885 12,267,853
'10 Net (lncrease) Decrease in Allowances lnventory
11 Net lncrease (Decrease) in Payables and Accrued Expenses ( 26,152,468)6,880,544
12 Net (lncrease) Decrease in Other Regulatory Assets ( 38,029,474)( 4,114,779)
'13 Net lncrease (Decrease) in Other Regulatory Liabilities 2,936,022 2,007,784
14 (Less) Allowance for Other Funds Used During Construction 7,298,983 7,961,552
15 (Less) Undisbibuted Eamings fiom Subsidiary Companies 6,288,876 11,164,785
16 Other (footnote details):
17 Net Cash Provided by (Used in) Operating Activities
18 (Total of Lines 2 thru 16)337,756,882 353,153,455
19
20 Cash Flows fiom lnvestrnent Aciivities:
21 Construction and Acquisition of Plant (including land):
22 Gross Additions to Utility Plant (less nuclear fuel)( 390,690,230)( 381,174,406)
23 Gross Additions to Nuclear Fuel
24 Gross Additions to Common Utility Plant
25 Gross Additions to Nonutility Plant
26 (Less) Allorance for Other Funds Used During Construction
27 Other (foohote details):
28 Cash Outflows for Plant (Total of lines 22 lhtu 27],( 390,690,230)( 381,174,406)
29
30 Acquisition of Other Noncunent Assets (d)
31 Proceeds from Disposal of Noncunent Assets (d)'t,288,524 272,897
32 Federal and state grant paymenb received 512,000 2,730,166
33 lnvestrnents in and Advances to Assoc. and Subsidiary Companies ( 16,51 7,1 1 1 )
34 Contributions and Advances fiom Assoc. and Subsidiary Companies 2,000,000
35 Disposition of lnvestments in (and Advances to)
36 Associated and Subsidiary Companies
37 Cash paid for acquisition ( 94,643)
38 Purchase of lnvestment Securities (a)
39 Proceeds fiom Sales of lnvestment Securities (a)
FERC FORM NO.2 (REV 06-04)Page 120
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[lAn Original
nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 201!/Q[
Statement of Cash Flows (continued)
Line
No.
Description (See lnstructions for explanation of codes)
(a)
Cunent Year
to Date
Quarter^/ear
Previous Year
to Date
QuarterfYear
40 Loans Made or Purchased
41 Collections on Loans
42 Restricted cash ( 2s,425)( 62,284)
43 Net (lncrease) Decrease in Receivables
44 Net (lncrease) Decrease in lnventory
45 Net (lncrease) Decrease in Allowances Held for Speculation
46 Net lnoease (Decrease) in Payables and Accrued Expenses
47 Changes in other property and investments ( 8,915,798)( 7,992,961)
48 Net Cash Provided by (Used in) lnvesting Activities
49 (Total of lines 28 hru 47)( 412,348,040)( 372,135,660)
50
51 Cash Flows from Financing Activities:
52 Proceeds from lssuance of
53 Long-Term Debt (b)245,000,000 100,000,000
54 Prefened Stock
55 Common Stock 66,952,672 1,559,840
56 0her (foohote details):
57 Net lncrease in Short-term Debt (c)15,000,000
58 Cash received for settlement of interest rate swap agreements
59 Cash Provided by Outside Sources (Total of lines 53 $ru 58)326,9s2,672 101 ,559,840
60
61 Payments for Retirement of:
ot Long-Term Debt (b)( 160,871,667)( 734,802)
63 Preferred Stock
M Common Stock ( 2,919,781)
65 Oher
bb Net Decrease in Short-Term Debt (c)
67 Premium paid to repurchase long-term debt
68 Dividends on Preferred Stock
69 Dividends on Common Stock ( 87,154,240)( 82,396,801)
70 Net Cash Provided by (Used in) Financing Activities
71 (Total of lines 59 hru 69)74,156,286 3,937,239
72
73 Net lncrease (Decrease) in Cash and Cash Equivalents
74 (Total ofline 18,49 and 71)( 434,872)( 15,044,966)
75
76 Cash and Cash Equivalenb at Beginning of Period 2,970,276 18,015,242
77
78 Cash and Cash Equivalenb at End of Period 2,535,404 2,970,276
FERC FORM NO.2 (REV 06-04)Page 120a
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
FOOTNOTE OATA
$chedule Paoe:120 Line No.: 16 Column: c
Power and natural gas deferral-s
Change in special deposits
Change in other current assets
Non-cash stock compensation
Other non-current assets and l-iabilities
Allowance for doubtful- accountsAmortization of Spokane Energy contract
Change in Coyote Springs 2 O&M LTSAPrel-iminary survey and investigation costs
Gain on sale of property and equipment
Other (2 s87 )
L,12L,2g7(13,301,265)
2,956, 640
6,9L3,6]-9
5,891,691
5 ,'7 49 , 995
g , 4gg, 494
(2,260 , 661)(30]-,2t4)
(142,552)
120 Line No.: 34 Column: c
Notesreceivablefromsubsidiaries 12,185,571
Dividends received from subsidiaries 000
Minimum tax withholdings share based compensation
Cash paid for settlement of interest rate swap
Long-term debt issuance costs
Excess tax benefits
(1,831,678)
(9,326,000)
(593,969)
120 Line No.:65 Column: c
120 Line No.: 16 Column: b
Power natura gas erra s
Change in special- deposits
Change in other current assets
Non-cash stock compensationOther non-current assets and liabilities
Alfowance for doubtful- accountsAmortization of Spokane Energy contract
Change in Coyote Springs 2 O&M LTSA
Prel-iminary survey and j-nvestigation costs
Gain on sal-e of property and equipment
Cash paid for settlement of interestrate swaps
Other
180
,4l0 ,'712 , 388(3,635,861)
1,890,105
4 ,790 , 684
6, ooo, ooo
14, 694,31 4
4 ,'7 05 ,259
46'7 ,080
(240 ,291 )
(53, 966,791 )
9,547120 Line No.:65 Column: b
Minimum tax withholdings for share based compensation
Long-term debt issuance costs
(3,072,433)
(1,698,046)
FERC FORM NO.2 fi2-96)Paqe 552.1
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
1. Provide important disclosures regarding the Balance Sheet, Statement of lncome for the Year, Statement of Retained Eamings for the Year,
and Statement of Cash Flow, or any account thereof. Classify the disclosures according 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 significant contingent assets or liabilities existing at year end, and briefly explain any action initiated by the lnternal
Revenue Service involving possible assessment of additional income taxes of material amount, or a claim for refund of income taxes of a material
amount initiated by the utility. Also, briefly explain any dividends in arrears on cumulative prefened stock.
3. Fumish details on the respondent's pension plans, post-retirement benefits other than pensions (PBOP) plans, and post-employment benefit
plans as required by instruclion no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Fumish details on
the accounting for the plans and any changes in the melhod of accounting for them. lnclude details on the accounting for transition obligations or
assets, gains or losses, the amounts deferred and the expec{ed 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.9. parent company
sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, (1) the amount of cosl 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 seftle such obligations. ldenti! any mechanism or account in which recovered funds are being placed (i.e. trust funds,
insurance policies, surety bonds). Furnish details on the accounting for the asset retirement obligations and any changes in the measurement or
method of accounting for the obligations. lnclude details on the accounting for settlement of the obligations and any gains or losses expected or
incuned on the settlement.
5. Provide a list of all environmental credits received during the reporting period.
6. Provide a summary of revenues and expenses for each tracked cost and special surcharge.
7. \Mere Account 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. See General lnstruction 17 of the Uniform System of Accounts.
8. Explain concisely any retained eamings restrictions and state the amount of retained eamings affected by such restrictions.
9. Disclose details on any significant financial changes during the reporting year to the respondent or the respondent's consolidated group that
directly affect the respondent's gas pipeline operations, including: sales, transfers or mergers of affiliates, 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. Explain concisely unseftled rate proceedings wfrere a contingency exists such that the crmpany may need to refund a material amount to the
utility's customers or that the utility may receive a material refund with respect to power or gas purchases. State for each year affecled the gross
revenues or costs to which the contingency relates and the tax effects and explain the major factors that affec{ the rights of the utility to retain such
revenues or lo recover amounts paid with respect to power and gas purchases.
11. Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rale proceeding
affectlng revenues received or costs incurred for power or gas purchases, and summarize the adjustments made to balance sheet, income, and
expense accounts.
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 apporlionments from those used in the preceding year. Also give the approximate dollar effect of such changes.
13. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading.
Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted.
1 4. For the 3Q disclosures, lhe disclosures shall be provided where events subsequent to the end of the most recent year have occurred which
have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in
such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long{erm contracts;
capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business
combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a
significant change since year end may not have occuned.
1 5. Finally, if the notes lo the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable
and fumish the data required by the above instructions, such notes may be included herein.
NOTES TO FINAI\CIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corp. (the Company) is primarily an electric and natural gas utility with certain other business ventures. Avista Corp. provides
electric distribution and transmission, and natural gas distribution services in parts of eastern Washinglon and northem Idaho. Avista
Corp. also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Corp. has electric
generating facilities in Washington, Idaho, Oregon and Montana. Avista Corp. also supplies electricity to a small number of
customers in Montana, most of whom are employees who operate Avista Corp.'s Noxon Rapids generating facility.
AERC is a wholly-owned subsidiary of Avista Corp. The primary subsidiary of AERC is AEL&P, which comprises Avista Corp.'s
FERC FORM NO. 2/3-Q 1 122.1
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
o3t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
regulated utility operations in Alaska. AERC was acquired by Avista Corp. on July l, 2014 and there are no AERC earnings included
in the overall results of Avista Corp. prior to that date. See Note 3 for information regarding the acquisition of AERC.
Avista Capital, a wholly owned non-regulated subsidiary of Avista Corp., is the parent company of all of the subsidiary companies
except AERC (and its subsidiaries). During the first half of 2014 and prior, Avista Capital's subsidiaries included Ecova, which was
an 80.2 percent owned subsidiary prior to its disposition on June 30, 2014. See Note 4 for information regarding the disposition of
Ecova.
Bosis of Reporting
The financial statements include the assets, liabilities, revenues and expenses ofthe Company and have been prepared in accordance
with the accounting requirements of the Federal Energy Regulatory Commission (FERC) as set forth in its applicable Uniform System
of Accounts and published accounting releases, which is a comprehensive basis of accounting other than accounting principles
generally accepted in the United States of America (U.S. GAAP). As required by the FERC, the Company accounts for its investment
in majority-owned subsidiaries on the equity method rather than consolidating the assets, liabilities, revenues, and expenses of these
subsidiaries, as required by U.S. GAAP. The accompanying financial statements include the Company's proportionate share of utility
plant and related operations resulting from its interests in jointly owned plants. ln addition, under the requirements of the FERC, there
are differences from U.S. GAAP in the presentation of (l) current portion of long-term debt (2) assets and liabilities for cost of
removal of assets, (3) assets held for sale, (4) regulatory assets and liabilities, (5) deferred income taxes associated with accounts
other than utility property, plant and equipment, (6) comprehensive income, (7) unamortized debt issuance costs and (8) operating
revenues and resource costs associated with settled energy contracts that are "booked out" (not physically delivered).
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the amounts reported for assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include:
o determining the market value of energy commodity derivative assets and liabilities,
o pension and other postretirement benefit plan obligations,
. contingent liabilities,
o goodwill impairment testing,
. recoverability ofregulatory assets, and
r unbilled revenues.
Changes in these estimates and assumptions are considered reasonably possible and may have a material effect on the financial
statements and thus actual results could differ from the amounts reported and disclosed herein.
System of Accounts
The accounting records of the Company's utility operations are maintained in accordance with the uniform system of accounts
prescribed by the FERC and adopted by the state regulatory commissions in Washington, Idaho, Montana and Oregon.
Regulafion
The Company is subject to state regulation in Washington, Idaho, Montana and Oregon. The Company is also subject to federal
regulation primarily by the FERC, as well as various other federal agencies with regulatory oversight of particular aspects of its
operations.
FERC FORM NO.2/3-O (REV't2-07)122.2
Name of Respondent
Avista Corporation
This Report is:
(1) XAn OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/04
Notes to Financial Statements
Operating Revenues
Operating revenues related to the sale ofenergy are recorded when service is rendered or energy is delivered to customers. The
determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis
throughout the month. At the end of each calendar month, the amount of energy delivered to customers since the date of the last meter
reading is estimated and the corresponding unbilled revenue is estimated and recorded. Our estimate of unbilled revenue is based on:
o the number of customers,
. current rates,
. meter reading dates,
. actual native load for electricity,
. actual throughput for natural gas, and
r electric line losses and natural gas system losses.
Any difference between actual and estimated revenue is automatically corrected in the following month when the actual meter reading
and customer billing occurs.
Accounts receivable includes unbilled energy revenues of the following amounts as of December 31 (dollars in thousands):
2016 2015
Unbilled accounts receivable $ 69,544 $ 59,405
Depreciation
For utility operations, depreciation expense is estimated by a method of depreciation accounting utilizing composite rates for utility
plant. Such rates are designed to provide for retirements of properties at the expiration of their service lives. For utility operations, the
ratio of depreciation provisions to average depreciable property was as follows for the years ended December 3l:
2016 2015
Ratio ofdepreciation to average depreciable property
The average service lives for the following broad categories of utility plant in service are (in years)
Electric thermaVother production
Hydroelectric production
Electric transmission
Electric distribution
Natural gas distribution property
Other shorter-lived general plant
3.1l%o 3.09%
Avista Corp.
4t
78
57
35
45
9
Taxes Other Than Income Taxes
Taxes other than income taxes include state excise taxes, city occupational and franchise taxes, real and personal property taxes and
certain other taxes not based on income. These taxes are generally based on revenues or the value ofproperty. Utility related taxes
collected from customers (primarily state excise taxes and city utility taxes) are recorded as operating revenue and expense. Taxes
FERC FORM NO. 2/3-Q 1 122.3
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t20't7
YeariPeriod of Report
2016/Q4
Notes to Financial Statements
other than income taxes consisted of the following items for the years ended December 3l (dollars in thousands):
2016 2015
Utility related taxes
Properly taxes
Other taxes
Total
$56,286 $
38,505
1,619
57,716
35,948
1,648
$ 96,410 $ 9s,312
Allowancefor Funds Used During Constraction
AFUDC represents the cost of both the debt and equity funds used to finance utility plant additions during the construction period. As
prescribed by regulatory authorities, AFUDC is capitalized as a part of the cost of utility plant. The debt component of AIUDC is
credited against total interest expense in the Statements of Income in the line item "capitalized interest." The equity component of
AFUDC is included in the Statement of Income in the line item "other income-net." The Company is permitted, under established
regulatory rate practices, to recover the capitalized AFUDC, and a reasonable return thereon, through its inclusion in rate base and the
provision for depreciation after the related utility plant is placed in service. Cash inflow related to AFUDC does not occur until the
related utility plant is placed in service and included in rate base. The effective AFUDC rate was the following for the years ended
December 3l:
2016 201s
Effective AFUDC rate 7.29%7.32Yo
Income Taxes
Deferred income tax assets represent future income tax deductions the Company expects to utilize in future tax retums to reduce
taxable income. Deferred income tax liabilities represent future taxable income the Company expects to recognize in future tax
returns. Deferred tax assets and liabilities arise when there are temporary differences resulting from differing treatment of items for
tax and accounting purposes (such as depreciation). A deferred income tax asset or liability is determined based on the enacted tax
rates that will be in effect when the temporary differences between the financial statement carrying amounts and tax basis of existing
assets and liabilities are expected to be reported in the Company's consolidated income tax retums. The deferred income tax expense
for the period is equal to the net change in the deferred income tax asset and liability accounts from the beginning to the end of the
period. The effect on deferred income taxes from a change in tax rates is recognized in income in the period that includes the
enactment date unless a regulatory order specifies deferral of the effect of the change in tax rates over a longer period oftime. The
Company establishes a valuation allowance when it is more likely than not that all, or a portion, of a deferred tax asset will not be
realized. Deferred income tax liabilities and regulatory assets are established for income tax benefits flowed through to customers.
The Company did not incur any penalties on income tax positions in 2016 or 20 I 5. The Company would recognize interest accrued
related to income tax positions as interest expense and any penalties incurred as income deductions.
S toc k- B as e d C omp e ns atio n
The Company currently issues three types of stock-based compensation awards - restricted shares, market-based awards and
performance-based awards. Historically, these stock compensation awards have not been material to the Company's overall financial
results. Compensation cost relating to share-based payment transactions is recognized in the Company's financial statements based on
the fair value of the equity or liability instruments issued and recorded over the requisite service period.
The Company recorded stock-based compensation expense (included in other operating expenses) and income tax benefits in the
Statements of Income of the following amounts for the years ended December 3l (dollars in thousands):
FERC FORM NO. 2/3-Q (REV 12-07)122.4
Name of Respondent
Avista Concoration
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03131t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
20t6 2015
Stock-based compensation expense
Income tax benefits (l)
Restricted Shares
Shares granted during the year
Shares vested during the year
Unvested shares at end ofyear
Unrecognized compensation expense at end ofyear (in thousands)
TSR Awards
TSR shares granted during the year
$7,891 $ 6,914
4,359 2,420
(1) Income tax benefits for 2016 include $1.6 million associated with excess tax benefits on settled share-based employee payments.
The excess tax benefits were recognized in the Statement of Income for 2016 due to the adoption of ASU 2016-09, effective
January l, 2016. See Note 2 for further discussion.
Restricted share awards vest in equal thirds each year over a three-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 service condition, the Company must meet a retum on equity target
in order for the Chief Executive Officer's restricted shares to vest. Restricted stock is valued at the close of market of the Company's
common stock on the grant date.
Total Shareholder Return (TSR) awards are market-based awards and Cumulative Earnings Per Share (CEPS) awards are
performance awards. CEPS awards were first granted in20l4. Both types of awards vest after a period of three years and are payable
in cash or Avista Corp. common stock at the end of the three-year period. The method of settlement is at the discretion of the
Company and historically the Company has seuled these awards through issuance of Avista Corp. common stock and intends to
continue this practice. Both types of awards entitle the recipients to dividend equivalent rights, are subject to forfeiture under certain
circumstances, and are subject to meeting specific market or performance conditions. Based on the level of attainment of the market
or performance conditions, the amount of cash paid or common stock issued will range from 0 to 200 percent of the initial awards
granted. Dividend equivalent rights are accumulated and paid out only on shares that eventually vest and have met the market and
performance con d iti ons.
For both the TSR awards and the CEPS awards, the Company accounts for them as equity awards and compensation cost for these
awards is recognized over the requisite service period, provided that the requisite service period is rendered. For TSR awards, if the
market condition is not met at the end of the three-year service period, there will be no change in the cumulative amount of
compensation cost recognized, since the awards are still considered vested even though the market metric was not met. For CEPS
awards, at the end of the three-year service period, if the internal performance metric of cumulative earnings per share is not met, all
compensation cost for these awards is reversed as these awards are not considered vested.
The fair value of each TSR award is estimated on the date of grant using a statistical model that incorporates the probability of
meeting the market targets based on historical returns relative to a peer group. The estimated fair value of the equity component of
CEPS awards was estimated on the date of grant as the share price of Avista Corp. common stock on the date of grant, less the net
present value of the estimated dividends over the three-year period.
The following table summarizes the number of grants, vested and unvested shares, earned shares (based on market metrics), and other
pertinent information related to the Company's stock compensation awards for the years ended December 3l:
20t6 2015
58,610
(52,385)
109,806
I,8s3 $
58,302
(60,37e))
106,091
1,705$
I 16,435 116,435
FERC FORM NO. Z3-Q (REV 12-07)122.5
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t3'12017
Year/Period of Report
2016/Q4
Notes to Financial Statements
TSR shares vested during the year
TSR shares earned based on market metrics
Unvested TSR shares at end ofyear
Unrecognized compensation expense (in thousands)
CEPS Awards
CEPS shares granted during the year
CEPS shares vested during the year
CEPS shares earned based on market metrics
Unvested CEPS shares at end ofyear
Unrecognized compensation expense (in thousands)
(l11,665)
132,887
222,228
3,409 $
(1 71,334))
222,734
223,697
3,219$
$
57,521
(55,835)
90,460
110,452
1,671 $
58,259
1 l 1,887
1,840
Outstanding TSR and CEPS share awards include a dividend component that is paid in cash. This component of the share grants is
accounted for as a liability award. These liability awards are revalued on a quarterly basis taking into account the number of awards
outstanding, historical dividend rate, the change in the value of the Company's common stock relative to an external benchmark (TSR
awards only) and the amount of CEPS eamed to date compared to estimated CEPS over the performance period (CEPS awards only).
Over the life of these awards, the cumulative amount of compensation expense recognized will match the actual cash paid. As of
December 31,2016 and 2015, the Company had recognized cumulative compensation expense and a liability of $1.5 million,
respectively, related to the dividend component on the outstanding and unvested share grants.
Cash and Cash Equivalents
For the purposes of the Statements of Cash Flows, the Company considers all temporary investments with a maturity of three months
or less when purchased to be cash equivalents.
A I I ow ance fo r D o u btfu I Ac c o u nts
The Company maintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable. The
Company determines the allowance for utility and other customer accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues. Additionally, the Company establishes specific allowances for certain individual
accounts.
Utility Plant in Service
The cost of additions to utility plant in service, including an allowance for funds used during construction and replacements of units
of property and improvements, is capitalized. The cost of depreciable units of property retired plus the cost of removal less salvage is
charged to accumulated depreciation.
Ass et Reti re me nt O blig at io ns
The Company records the fair value of a liability for an ARO in the period in which it is incurred. When the liability is initially
recorded, the associated costs of the ARO are capitalized as part of the carrying amount ofthe related long-lived asset. The liability is
accreted to its present value each period and the related capitalized costs are depreciated over the useful life ofthe related asset. In
addition, if there are changes in the estimated timing or estimated costs of the AROs, adjustments are recorded during the period new
information becomes available as an increase or decrease to the liability, with the offset recorded to the related long-lived asset. Upon
retirement of the asset, the Company either settles the ARO for its recorded amount or incurs a gain or loss. The Company records
regulatory assets and liabilities for the difference between asset retirement costs currently recovered in rates and AROs recorded since
FERC FORM NO.2/3.Q 1 122.6
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
asset retirement costs are recovered through rates charged to customers (see Note 7 for further discussion of the Company's asset
retirement obligations).
Goodwill
Goodwill arising from acquisitions represents the future economic benefit arising from other assets acquired in a business
combination that are not individually identified and separately recognized. The Company evaluates goodwill for impairment using a
qualitative analysis (Step 0) for AEL&P and a combination of discounted cash flow models and a market approach for the other
subsidiaries on at least an annual basis or more frequently if impairment indicators arise. The Company completed its annual
evaluation of goodwill for potential impairment as of November 30, 2016 and determined that goodwill was not impaired at that time.
While, the Company does not have any goodwill amounts recorded on its FERC balance sheets, it does have goodwill at its
subsidiaries and the amounts for goodwill are reflected in the investment in subsidiary companies.
The following amounts were recorded as goodwill at the subsidiary companies and reflected through the investment in subsidiary
companies on the FERC balance sheets (dollars in thousands):
Total
Balance as ofthe December 31,2015
Balance as of the December 31,2016
$ 52,426 S 12,979 $ (7,733) $ 57,672
s 52,426 $ 12,979 $ (7,733) $ 57,672
Accumulated impairment losses are attributable to the other businesses.
Derivative Assets and Liabilities
Derivatives are recorded as either assets or liabilities on the Balance Sheets measured at estimated fair value.
The UTC and the IPUC issued accounting orders authorizing Avista Corp. to offset energy commodity derivative assets or liabilities
with a regulatory asset or liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses
on energy commodity transactions until the period of delivery. Realized benefits and costs result in adjustments to retail rates through
PGAs, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases. The resulting regulatory assets have
been concluded to be probable ofrecovery through future rates.
Substantially all forward contracts to purchase or sell power and natural gas are recorded as derivative assets or liabilities at estimated
fair value with an offsetting regulatory asset or liability. Contracts that are not considered derivatives are accounted for on the accrual
basis until they are settled or realized unless there is a decline in the fair value of the contract that is determined to be
other-than-temporary.
For interest rate swap derivatives, Avista Corp. records all mark-to-market gains and losses in each accounting period as assets and
Iiabilities, as well as offsetting regulatory assets and liabilities, such that there is no income statement impact. The interest rate swap
derivatives are risk management tools similar to energy commodity derivatives. Upon settlement of interest rate swap derivatives, the
regulatory asset or liability is amortized as a component of interest expense over the term of the associated debt. The Company
records an offset of interest rate swap derivative assets and liabilities with regulatory assets and liabilities, based on the prior practice
of the commissions to provide recovery through the ratemaking process.
As of December 31, 20l6,the Company has multiple master netting agreements with a variety of entities that allow for
cross-commodity netting of derivative agreements with the same counterparty (i.e. power derivatives can be netted with natural gas
derivatives). In addition, some master netting agreements allow tbr the netting of commodity derivatives and interest rate swap
FERC FORM NO. 2/3-Q (REV 12-07)122.7
AEL&P Other
Accumulated
Impairment
Losses
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313'112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
derivatives for the same counterparty. The Company does not have any agreements which allow for cross-affiliate netting among
multiple affiliated legal entities. The Company nets all derivative instruments when allowed by the agreement for presentation in the
Balance Sheets.
F air Valu e M eas ureme nts
Fair value represents the price that would be received when selling an asset or paid to transfer a liability (an exit price) in an orderly
transaction between market participants at the measurement date. Energy commodity derivative assets and liabilities, defened
compensation assets, as well as derivatives related to interest rate swap derivatives and foreign currency exchange derivatives, are
reported at estimated fair value on the Balance Sheets. See Note l4 for the Company's fair value disclosures.
Regulatory Deferred Charges and Credits
The Company prepares its financial statements in accordance with regulatory accounting practices because:
. rates for regulated services are established by or subject to approval by independent third-party regulators,
o the regulated rates are designed to recover the cost ofproviding the regulated services, and
. in view of demand for the regulated services and the level of competition, it is reasonable to assume that rates can
be charged to and collected from customers at levels that will recover costs.
Regulatory accounting practices require that certain costs and/or obligations (such as incurred power and natural gas costs not
currently included in rates, but expected to be recovered or refunded in the future), are reflected as deferred charges or credits on the
Balance Sheets. These costs and/or obligations are not reflected in the Statements of Income until the period during which matching
revenues are recognized. The Company also has decoupling revenue deferrals, which began in 2015. Decoupling revenue deferrals
are recognized in the Statements oflncome during the period they occur (i.e. during the period ofrevenue shorrfall or excess due to
fluctuations in customer usage), subject to certain limitations, and a regulatory asseVliability is established which will be surcharged
or rebated to customers in future periods. GAAP requires that for any altemative regulatory revenue program, like decoupling, the
revenue must be expected to be collected from customers within 24 months of the defenal to qualify for recognition in the current
period Statement of Income. Any amounts included in the Company's decoupling program that are not expected to be collected from
customers within 24 months are not recorded in the financial statements until the period in which revenue recognition criteria are met.
This could ultimately result in decoupling revenue being recognized in a future period.
If at some point in the future the Company determines that it no longer meets the criteria for continued application of regulatory
accounting practices for all or a portion ofits regulated operations, the Company could be:
o reguired to write off its regulatory assets, and
. precluded from the future deferral ofcosts or decoupled revenues not recovered through rates at the time such
amounts are incurred, even if the Company expected to recover these amounts from customers in the future.
Unamortized Debt kpense
Unamortized debt expense includes debt issuance costs that are amortized over the life of the related debt.
Ununoilized Gain/Loss on Reacquired Debt
For the Company's Washington regulatory jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions, premiums
or discounts paid to repurchase debt are amortized over the remaining life of the original debt that was repurchased or, if new debt is
issued in connection with the repurchase, these amounts are amortized over the life of the new debt. In the Company's other
regulatory jurisdictions, premiums or discounts paid to repurchase debt prior to 2007 are being amortized over the average remaining
FERC FORM NO. Z3.Q (REV I2-07)122.8
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
2016tQ4
Notos to Financial Statements
maturity of outstanding debt when no new debt was issued in connection with the debt repurchase. The premiums and discounts are
recovered or returned to customers through retail rates as a component ofinterest expense.
App rop riate d Retain ed E arning s
In accordance with the hydroelectric licensing requirements of section l0(d) of the Federal Power Act (FPA), the Company maintains
an appropriated retained earnings account for any eamings in excess of the specified rate of return on the Company's investment in the
licenses for its various hydroelectric projects. Per section l0(d) ofthe FPA, the Company must maintain these excess eamings in an
appropriated retained earnings account until the termination of the licensing agreements or apply them to reduce the net investment in
the licenses of the hydroelectric projects at the discretion of the FERC. The Company typically calculates the earnings in excess of the
specified rate ofreturn on an annual basis, usually during the second quarter.
The appropriated retained earnings amounts included in retained earnings were as follows as of December 31 (dollars in thousands):
2016 2015
Appropriated retained eamings $ 23,869 S 19,428
Operating Leases
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from I to 45 years. Future
minimum lease payments required under operating leases having initial or remaining noncancelable lease terms in excess of one year
were not material as of December 31,2016.
Equity in Earnings (Losses) of Subsidiaries
The Company records all the earnings (losses) from its subsidiaries under the equity method. The Company had the following equity
in earnings (losses) of its subsidiaries for the years ended December 31 (dollars in thousands):
2016 201 5
Avista Capital
Alaska Energy and Resources Company
Total equity in earnings of subsidiary companies $ 6,289 $ ll,165
Subsequent Events
Management has evaluated the impact of events occurring after December 31,2016 up to February 21,2077, the date that Avista
Corp.'s U.S. GAAP financial statements were issued and has updated such evaluation for disclosure purposes through March 31,
2017. These financial statements include all necessary adjustments and disclosures resulting from these evaluations.
Contingencies
The Company has unresolved regulatory, legal and tax issues which have inherently uncertain outcomes. The Company accrues a loss
contingency if it is probable that a liability has been incurred and the amount of the loss or impairment can be reasonably estimated.
The Company also discloses losses that do not meet these conditions for accrual, if there is a reasonable possibility that a material loss
may be incurred. As of December 3 I , 20 I 6, the Company has not recorded any significant amounts related to unresolved
contingencies. See Note l6 for further discussion of the Company's commitments and contingencies.
NOTE 2. NEW ACCOUNTING STAI\IDARDS
$(1,434) $
't,723
4,857
6,309
ASU No. 2014-09, "Revenuefrom Contracts with Customers (Topic 606)"
FERC FORM NO. 2/3-Q (REV 12-07)122.9
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
In May 2014,the FASB issued ASU No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for
revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific
guidance. The core principle of the revenue model is that an entity should identiff the various performance obligations in a contract,
allocate the transaction price among the performance obligations and recognize revenue when (or as) the entity satisfies each
performance obligation. This ASU was originally effective for periods beginning after December 15,2016 and early adoption was not
permitted. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of
the Effective Date," which deferred the effective date of ASU No. 2014-09 for one year, with adoption as of the original date
permitted.
The Company has formed a revenue recognition standard implementation team that is working through several implementation issues
described below. The Company has evaluated this standard and is planning to adopt this standard in 2018 upon its effective date. The
Company is currently expecting to use a modified retrospective method of adoption, which would require a cumulative adjustment to
opening retained eamings, as opposed to a full retrospective application. The Company is not far enough along in the adoption
process to determine the amount, if any, of cumulative adjustment necessary.
Since the vast majority of Avista Corp.'s revenue is from rate-regulated sales of electricity and natural gas to retail customers and
revenue is recognized as energy is delivered to these customers, the Company does not expect a significant change in operating
revenues or net income. The Company is in the process of reviewing and analyzing certain contracts with customers (most of which
are related to wholesale sales of power and natural gas), but has not yet identified any significant differences in revenue recognition
between current GAAP and ASU 2014-09.
During the implementation process, the Company has identified several unresolved issues, the most significant of which are as
follows based on our current assessment:
Contributions in Aid of Construction - There is the potential that CIACs could be recognized as revenue upon the adoption of ASU
2014-09. Under current GAAP, CIACs are accounted for as an offset to the cost of utility plant in service.
Utililv Related Tues Collected.from Customers - There are questions on the presentation of utility related taxes collected from
customers (primarily state excise taxes and city utility taxes) on a gross basis. Under current GAAP, the Company is allowed to record
these utility related taxes on a gross basis in revenue when billed to customers with an offset included in taxes other than income taxes
in operating expenses. The Company is evaluating whether this presentation is appropriate under ASU 2014-09 or whether they
should be presented on a net basis. To qualify for gross presentation under the new guidance, the Company must perform an analysis
to determine if it is the principal or the agent in regards to utility related taxes.
Collectibilitv - There are questions regarding the requirement that collection of a sale be probable and how, or if, utilities should
consider bad debt collection mechanisms (riders, base rate adjustments, etc.) in assessing probability of collection on sales to low
income customers. Within the utility industry, there is support for and against considering these recovery mechanisms when assessing
collectibility of a sale. If the bad debt recovery mechanisms cannot be considered, there is the potential that certain sales to low
income customers cannot be recognized as revenue until payment is received from the customers, which could result in revenues
being recognized in periods other than when the energy was delivered to customers or not recognized at all.
The Company is monitoring utility industry implementation guidance as it relates to unresolved issues to determine if there will be an
industry consensus regarding accounting and presentation ofthese items.
ASU No. 2016-02 "Leases (Topic 842)."
FERC FORM NO. 2/3-Q 1 122.10
In February 2076,ihe FASB issued ASU No. 2016-02. This ASU introduces a new lessee model that requires most leases to be
Name of Respondent
Avista Comoralion
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
capitalized and shown on the balance sheet with corresponding lease assets and liabilities. The standard also aligns certain of the
underlying principles of the new lessor model with those in Topic 606, the FASB's new revenue recognition standard. Furthermore,
this ASU addresses other issues that arise under the current lease model; for example, eliminating the required use of bright-line tests
in current GAAP for determining lease classification (operating leases versus capital leases). This ASU also includes enhanced
disclosures surrounding leases. This ASU is effective for periods beginning on or after December 15, 2018; however, early adoption
is permitted. Upon adoption, this ASU must be applied using a modified retrospective approach to the earliest period presented, which
will likely require restatements of previously issued financial statements. The modified retrospective approach includes a number of
optional practical expedients that entities may elect to apply. The Company evaluated this standard and determined that it will most
likely not early adopt this standard before its effective date in 2019. The Company has formed a lease standard implementation team
that is working through the implementation process. The most significant implementation challenge identified thus far relates to
identifoing a complete population of leases and potential leases under the new lease standard. Also, the Company is monitoring utility
industry implementation guidance as it relates to several unresolved issues to determine if there will be an industry consensus,
including whether right-of-ways are considered leases. The Company cannot, at this time, estimate the potential impact on its future
financial condition, results of operations and cash flows.
ASU No. 2016-09 "Compensation-StockCompensotion (Topic 718): Improvements to Employee Share-Based Payment Accounting."
In March 2016,the FASB issued ASU No. 2016-09. This ASU simplifies several aspects of the accounting for employee share-based
payment transactions including:
e allowing excess tax benefits or tax deficiencies to be recognized as income tax benefits or expenses in the Statements of
Income rather than in Additional Paid in Capital (APIC),
. excess tax benefits no longer represent a financing cash inflow on the Statements of Cash Flows and instead will be included
as an operating activity,
. excess tax benefits and tax deficiencies will be excluded from the calculation ofdiluted earnings per share, whereas under
current accounting guidance, these amounts must be estimated and included in the calculation,
o allowing forfeitures to be accounted for as they occur, instead of estimating forfeitures, and
o changing the statutory tax withholding requirements for share-based payments.
This ASU is effective for periods beginning after December 15,2016 and early adoption is permitted. The Company early adopted
this standard during the second quarter of 2076, with a retrospective effective date of January 1,2016. The adoption of this standard
resulted in a recognized income tax benefit of $l.6 million in 2016 associated with excess tax benefits on settled share-based
employee payments. In addition, the Statement of Cash Flows for 2016 included the excess tax benefits as an operating activity rather
than as a financing activity. Periods prior to 2016 were not restated for the adoption of this accounting standard as the Company has
adopted this standard on a prospective basis beginning January 1 ,2016.
ASU No. 2017-07 "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and
Net Periodic Postretirement Benefit Cost"
In March 2017,the FASB issued ASU No. 2017-07, which amends the income statement presentation of the components of net
period benefit cost for an entity's defined benefit pension and other postretirement plans. Under current GAAP, net benefit cost
consists of several components that reflect different aspects of an employer's financial arrangements as well as the cost of benefits
eamed by employees. These components are aggregated and reported net in the financial statements. ASU 2017-07 requires entities to
(1) disaggregate the current-service-cost component from the other components ofnet benefit cost (other components) and present it
with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere
in the income statement and outside of income from operations.
FERC FORM NO. Z3.Q (REV 12.07)122.11
Name of Respondent
Avista Comoration
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial StatemenB
In addition, only the service-cost component of net benefit cost is eligible for capitalization (e.g., as part of property, plant, and
equipment). This is a change from current practice, under which entities capitalize the aggregate net benefit cost when applicable.
Because Avista Corp. is a rate-regulated entity and all components of net benefit cost are required to be capitalized within utility plant
when applicable, this will result in a Regulatory/GAAP difference because for GAAP, the other components of net benefit cost will be
capitalized as regulatory assets (because they are still allowable costs) but for regulatory reporting, they will be included in utility
plant.
This ASU is effective for periods beginning after December 15,2077 and early adoption is permitted. Upon adoption entities must
use a retrospective transition method to adopt the requirement for separate presentation in the income statement and a prospective
transition method to adopt the requirement to limit the capitalization of benefit costs to the service cost component. The Company
evaluated this standard and does not expect to early adopt this standard. Also, the Company is still evaluating the impact to its
financial statements upon adoption of this standard.
NOTE 3. BUSINESS ACQUISITIONS
Alaska Energlt snd Resources Company
On July 1,2014, the Company acquired AERC, based in Juneau, Alaska, and as of that date, AERC became a wholly-owned
subsidiary of Avista Corp.
The primary subsidiary of AERC is AEL&P, a regulated utility which provides electric services to approximately 17,000 customers in
Juneau, Alaska. In addition to the regulated utility, AERC owns AJT Mining, which is an inactive mining company holding certain
properties.
The purpose of the acquisition was to expand and diversiff Avista Corp.'s energy assets and deliver long-term value to its customers,
communities and investors.
In connection with the closing, Avista Corp. issued 4,501,441 new shares of common stock to the shareholders of AERC based on a
contractual formula that resulted in a price of $32.46 per share, reflecting a purchase price of $170.0 million, plus acquired cash, less
outstanding debt and other closing adjustments. Avista Corp. also paid S4.8 million in cash. The total fair value of all consideration
transferred was $ I 54.9 million and resulted in goodwill of $52.4 million, which is not deductible for tax purposes.
The majority of AERC's operations are subject to the rate-setting authority of the RCA and are accounted for pursuant to GAAP,
including the accounting guidance for regulated operations. The rate-setting and cost recovery provisions currently in place for
AERC's regulated operations provide revenues derived from costs, including a retum on investment, of assets and liabilities included
in rate base. Due to this regulation, the fair values of AERC's assets and liabilities subject to these rate-setting provisions were
assumed to approximate their carrying values. There were not any identifiable intangible assets associated with this acquisition. The
excess of the purchase consideration over the estimated fair values of the assets acquired and liabilities assumed was recognized as
goodwill at the acquisition date. The goodwill reflects the value paid for the expected continued growth of a rate-regulated business
located in a defined service area with a constructive regulatory environment the athactiveness of stable, growing cash flows, as well
as providing a platform for potential future growth outside of the rate-regulated electric utility in Alaska and potential additional
utility investment.
NOTE 4. DISCONTINUED OPERATIONS
On June 30,2014, Avista Capital, completed the sale of its interest in Ecova to Cofely USA Inc., an unrelated party to Avista Corp.
The sales price was $335.0 million in cash, less the payment of debt and other customary closing adjustments. At the closing of the
transaction on June 30,2014, Ecova became a wholly-owned subsidiary of Cofely USA Inc. and the Company has not had and will
FERC FORM NO. Z3.Q (REV 12-07)122.12
Name of Respondent
Avisla Corporalion
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
not have any further involvement with Ecova after such date.
The purchase price of $335.0 million, as adjusted, was divided among all the security holders of Ecova pro rata based on ownership.
After consideration of all escrow amounts received, the sales transaction provided cash proceeds to Avista Corp., net of debt, payment
to option and minority holders, income taxes and transaction expenses, of $143.7 million, and resulted in a net gain of $74.8 million.
Almost all of the net gain was recognized in 2014 with some true-ups during 2015.
NOTE 5. DERIVATIVES AND RISK MANAGEMENT
E ne rglt C ommo di4t D e riv ative s
Avista Corp. is exposed to market risks relating to changes in electricity and natural gas commodity prices and certain other fuel
prices. Market risk is, in general, the risk of fluctuation in the market price of the commodity being traded and is influenced primarily
by supply and demand. Market risk includes the fluctuation in the market price of associated derivative commodity instruments.
Avista Corp. utilizes derivative instruments, such as forwards, futures, swaps and options in order to manage the various risks relating
to these commodity price exposures. The Company has an energy resources risk policy and control procedures to manage these risks.
As part of the Company's resource procurement and management operations in the electric business, the Company engages in an
ongoing process of resource optimization, which involves the economic selection from available energy resources to serve the
Company's load obligations and the use of these resources to capture available economic value. The Company hansacts in wholesale
markets by selling and purchasing electric capacity and energy, fuel for electric generation, and derivative contracts related to
capacity, energy and fuel. Such transactions are part of the process of matching resources with load obligations and hedging the
related financial risks. These transactions range from terms of intra-hour up to multiple years.
As part of its resource procurement and management of its natural gas business, the Company makes continuing projections of its
natural gas loads and assesses available natural gas resources including natural gas storage availability. Natural gas resource planning
typically includes peak requirements, low and average monthly requirements and delivery constraints from natural gas supply
locations to the Company's distribution system. However, daily variations in natural gas demand can be significantly different than
monthly demand projections. On the basis of these projections, the Company plans and executes a series of transactions to hedge a
portion of its projected natural gas requirements through forward market transactions and derivative instruments. These transactions
may extend as much as four natural gas operating years (November through October) into the future. Avista Corp. also leaves a
significant portion of its natural gas supply requirements unhedged for purchase in short-term and spot markets.
The Company is required to plan for sufficient natural gas delivery capacity to serve its retail customers for a theoretical peak day
event. The Company generally has more pipeline and storage capacity than what is needed during periods other than a peak day. The
Company optimizes its natural gas resources by using market opportunities to generate economic value that helps mitigate fixed costs.
Avista Corp. also optimizes its natural gas storage capacity by purchasing and storing natural gas when prices are traditionally lower,
typically in the summer, and withdrawing during higher priced months, typically during the winter. However, if market conditions
and prices indicate that the Company should buy or sell natural gas during other times in the year, the Company engages in
optimization transactions to capture value in the marketplace. Natural gas optimization activities include, but are not limited to,
wholesale market sales of surplus natural gas supplies, purchases and sales of natural gas to optimize use of pipeline and storage
capacity, and participation in the transportation capacity release market.
The following table presents the underlying energy commodity derivative volumes as of December 31,2016 that are expected to be
settled in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
FERC FORM NO, 2,3-Q (REV 12-07)122.13
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Physical (l)
MWh
Financial (l )
MWh
Physical (1)
mmBTUs
Financial ( I )
mmBTUs
Physical (l )
MWh
Financial (l )
MWh
Physical (1)
mmBTUs
Financial ( I )
mmBTUsYear
2017
2018
2019
2020
2021
Thereafter
Year
2016
2017
201 8
2019
2020
Thereafter
s10
397
235
316
286
158
1,552
1,244
982
4,165
1,360
1,345
1,430
1,060
73,110
l5,l l3
4,020
907 15,475 1 10,380
52,755
29,47s
2,725
610
910
The following table presents the underlying energy commodity derivative volumes as of December 31, 2015 that were expected to be
settled in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical (l) Financial (l) Physical (l) Financial (l) Physical (l) Financial (1) Physical (l) Financial (l)
MWh MWh mmBTUs mmBTUs MWh MWh mmBTUs mmBTUs
407
397
397
235
1,954
97
17,252
675
305
455
142,693
49,200
l5,l l8
6,935
905
2,656 112,233
26,965
2,738
280
255
286
158
3,182
1,360
1,360
1,34s
1,430
r,060
483
(l) Physical transactions represent commodity transactions in which Avista Corp. will take or make delivery of either electricity or
natural gas; financial transactions represent derivative instruments with delivery of cash in the amount of benefit or cost but
with no physical delivery of the commodity, such as futures, swaps, options, or forward confacts.
The electric and natural gas derivative contracts above will be included in either power supply costs or natural gas supply costs during
the period they are settled and will be included in the various recovery mechanisms (ERM, PCA, and PGAs), or in the general rate
case process, and are expected to be collected through retail rates from customers. Any transactions that result in gains will be used to
reduce retail rates charged to customers in the future.
Foreign Currency Erchange Derivatives
A significant portion of Avista Corp.'s natural gas supply (including fuel for power generation) is obtained from Canadian sources.
Most of those ffansactions are executed in U.S. dollars, which avoids foreign currency risk. A portion of Avista Corp.'s short-term
natural gas transactions and long-term Canadian transportation contracts are committed based on Canadian currency prices and settled
within 60 days with U.S. dollars. Avista Corp. hedges a portion of the foreign currency risk by purchasing Canadian currency
exchange derivatives when such commodity transactions are initiated. The foreign currency exchange derivatives and the unhedged
foreign currency risk have not had a material effect on the Company's financial condition, results of operations or cash flows and
these differences in cost related to currency fluctuations are included with natural gas supply costs for ratemaking.
The following table summarizes the foreign currency hedges that the Company has entered into as of December 3l (dollars in
thousands):
2016 2015
FERC FORM NO. 2/3-Q (REV 12-07)122.14
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Number of contracts
Notional amount (in United States dollars)
Notional amount (in Canadian dollars)
$
2t
2,819 $
3,754
24
1,463
2,002
Interest Rate Swap Derivatives
Avista Corp. is affected by fluctuating interest rates related to a portion of its existing debl and future borrowing requirements. The
Company hedges a portion of its interest rate risk with financial derivative instruments, which may include interest rate swap
derivatives and U.S. Treasury lock agreements. These interest rate swap derivatives and U.S. Treasury lock agreements are considered
economic hedges against fluctuations in future cash flows associated with anticipated debt issuances.
The following table summarizes the unsettled interest rate swap derivatives that the Company has outstanding as of the balance sheet
date indicated below (dollars in thousands):
Mandatory Cash Settlement
Balance Sheet Date Number of Contracts Notional Amount Date
December 31,2016 75,000
275,000
70,000
20,000
60,000
2017
201 8
2019
2020
2022
6
l4
6
2
5
December 31,2015 6
J
l1
2
I
I 15,000
4s,000
24s,000
30,000
20,000
2016
2017
2018
2019
2022
During the third quarter 2016, in connection with the execution of a purchase agreement for bonds that the Company issued in
December 2016,the Company cash-settled seven interest rate swap derivatives (notional aggregate amount of $125.0 million) and
paid atotal of $54.0 million. The interest rate swap derivatives were settled in connection with the pricing of $175.0 million of Avista
Corp. first mortgage bonds that were issued in December 2016 (see Note l2). Upon settlement of interest rate swap derivatives, the
cash payments made or received are recorded as a regulatory asset or liability and are subsequently amortized as a component of
interest expense over the life ofthe associated debt. The settled interest rate swap derivatives are also included as a part ofthe
Company's cost of debt calculation for ratemaking purposes.
The fair value ofoutstanding interest rate swap derivatives can vary significantly from period to period depending on the total
notional amount of swaps outstanding and fluctuations in market interest rates compared to the interest rates fixed by the swaps. The
Company would be required to make cash payments to settle the interest rate swap derivatives if the fixed rates are higher than
prevailing market rates at the date of settlement. Conversely, the Company receives cash to settle its interest rate swap derivatives
when prevailing market rates at the time of settlement exceed the fixed swap rates.
Summary of Outslanding Derivative Instrumcnts
The amounts recorded on the Balance Sheet as of Decemb er 31, 2016 and December 31, 2015 reflect the offsetting of derivative
assets and liabilities where a legal right of offset exists.
FERC FORM NO.2/3-Q (REV 12-07)122.15
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 3 I ,
2016 (in thousands):
Fair Value
Gross Gross Collateral
Net Asset
(Liability)
in Balance
SheetDerivative and Balance Sheet Location
Foreign currency exchange derivatives
Derivative instrument liabilities current
Interest rate swap derivatives
Derivative instrument assets current
Long-term portion of derivative assets
Derivative instrument liabilities curent
Long-term portion of derivative liabilities
Energy commodity derivatives
Derivative instrument assets current
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Total derivative instruments recorded on the balance sheet
$s $ (28)$
3,393
5,754 (3e7)
(15,756)
(57,825)3,951
(16,787)
(29,598)
(29,990)
9,731
25,169
6,228
3,630
$ (23)
3,393
5,357
(6,025)
(28,705)
1,895
(7,035)
(13,289)
18,682
16,33s
13,071
$ 61,191 $ (150,381) $ 44,758 $ (44,432)
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2015 (in thousands):
Fair Value
Cross Gross Collateral
Net Asset
(Liability)
in Balance
SheetDerivative and Balance Sheet Location
Foreign currency exchange derivatives
Derivative instrument liabilities curent
Interest rate swap derivatives
Long-term portion of derivative assets
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Energy commodity derivatives
Derivative instrument assets current
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Total derivative instruments recorded on the balance sheet
s 2 $ (1e)$
1,236
67,466
6,6t3
(23,262)
(62,236)
(5s3)
(85,409)
(3e,033)
3,880
30,150
3,675
10,85 l
$ (17)
23
(19,264)
(30,679)
683
(14,268)
(21,569)
23
118
1,407
$ 76,865 $ (210,512) $ 48,556 $ (85,091)
Exposure to Demandsfor Collateral
The Company's derivative contracts often require collateral (in the form of cash or letters of credit) or other credit enhancements, or
FERC FORM NO.1 't22.16
Name of Respondent
Avista Comoration
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
reductions or terminations of a portion of the contract through cash settlement, in the event of a downgrade in the Company's credit
ratings or changes in market prices. In periods of price volatility, the level of exposure can change significantly. As a result, sudden
and significant demands may be made against the Company's credit facilities and cash. The Company actively monitors the exposure
to possible collateral calls and takes steps to mitigate capital requirements.
The following table presents the Company's collateral outstanding related to its derivative instruments as of as of December 3l (in
thousands):
2016 2015
Energy commodity derivatives
Cash collateral posted
Letters of credit outstanding
Balance sheet offsetting (cash collateral against net derivative positions)
Interest rate swap derivatives
Cash collateral posted
Letters of credit outstanding
Balance sheet offsetting (cash collateral against net derivative positions)
Energy commodity derivatives
Liabilities with credit-risk-related contingent features
Additional collateral to post
$17,134 $
24,400
9,858
28,716
28,200
14,526
34,900 34,030
3,600 9,600
34,900 34,030
Certain of the Company's derivative instruments contain provisions that require the Company to maintain an "investment grade"
credit rating from the major credit rating agencies. If the Company's credit ratings were to fall below "investment grade," it would be
in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand
immediate and ongoing collateralization on derivative instruments in net liability positions.
The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are
in a liability position and the amount of additional collateral the Company could be required to post as of December 31 (in thousands):
2016 20ls
$1,124 $
1,046
7,090
6,980
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features 73,978 85,498
Additional collateral to post 21,100 18,750
NOTE 6. JOINTLY OW}IED ELECTRIC FACILITIES
The Company has a 15 percent ownership interest in a twin-unit coal-fired generating facility, Colstrip, located in southeastern
Montana, and provides financing for its ownership interest in the project. The Company's share of related fuel costs as well as
operating expenses for plant in service are included in the corresponding accounts in the Statements of Income. The Company's share
of utility plant in service for Colstrip and accumulated depreciation (inclusive of the ARO assets and accumulated amortization) were
as follows as of December 31 (dollars in thousands):
2016 2015
Utility plant in service $ 380,406 $ 362,199
FERC FORM NO.1 122.17
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Accumulated depreciation (249,359) Q43,363)
See Note 7 for further discussion of AROs.
NOTE 7. ASSET RETIREMENT OBLIGATIONS
The Company has recorded liabilities for future AROs to:
. restore coal ash containment ponds at Colstrip,
. 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, and
. dispose of PCBs in certain transformers.
Due to an inability to estimate a range of settlement dates, the Company cannot estimate a liability for the:
. removal and disposal of certain transmission and distribution assets, and
o abandonment and decommissioning of certain hydroelectric generation and natural gas storage facilities.
On April 17,2015, the EPA published a final rule regarding coal combustion residuals (CCR), also termed coal combustion
byproducts or coal ash, in the Federal Register, and this rule became effective on October 15, 2015. Colstrip, of which Avista Corp. is
a 15 percent owner of units 3 & 4, produces this byproduct. The rule established technical requirements for CCR landfills and surface
impoundments under Subtitle D of the Resource Conservation and Recovery Act, the nation's primary law for regulating solid
waste. The Company, in conjunction with the other Colstrip owners, developed a multi-year compliance plan to strategically address
the CCR requirements and existing state obligations while maintaining operational stability. During 2015, the operator of Colstrip
provided an initial cost estimate of the expected retirement costs associated with complying with the new CCR rule. Based on the
initial assessments, Avista Corp. recorded an increase to its ARO of $12.5 million during 2015 with a corresponding increase in the
cost basis of the utility plant. During 2016, due to additional information and updated estimates, the ARO increased to $13.6 million
(including accretion of $0.7 million).
The actual asset retirement costs related to the CCR rule requirements may vary substantially from the estimates used to record the
increased ARO due to uncertainty about the compliance strategies that will be used and the preliminary nature of available data used
to estimate costs, such as the quantity of coal ash present at certain sites and the volume of fill that will be needed to cap and cover
certain impoundments. Avista Corp. will coordinate with the plant operator and continue to gather additional data in future periods to
make decisions about compliance strategies and the timing of closure activities. As additional information becomes available, Avista
Corp. will update the ARO for these changes in estimates, which could be material. The Company expects to seek recovery of any
increased costs related to complying with the new rule through customer rates.
The following table documents the changes in the Company's asset retirement obligation during the years ended December 3l
(dollars in thousands):
2016 2015
Asset retirement obligation at beginning of year
Liabilities incurred
Liabilities settled
Accretion expense
Asset retirement obligation at end of year
$15,997 $
430
(1,s29)
617
3,028
12,539
(2e)
459
s ls,sls $ 15,997
FERC FORM NO.122.18
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
NOTE 8. PENSION PLAIIS AIID OTHER POSTRETIREMENT BENEFIT PLANS
The Company has a defined benefit pension plan covering the majority of all regular full-time employees at Avista Corp. that were
hiredpriortoJanuary l,2014.Individualbenefitsunderthisplanarebasedupontheemployee'syearsofservice,dateofhireand
average compensation as specified in the plan. Non-union employees hired on or after January 1,2014 participate in a defined
conhibution 401(k) plan in lieu of a defined benefit pension plan. The Company's funding policy is to contribute at least the
minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the
maximum amounts that are currently deductible for income tax purposes. The Company contributed $12.0 million in cash to the
pension plan in 2016, $12.0 million in 2015 and $32.0 million in2014. The Company expects to contribute $22.0 million in cash to
the pension plan in 2017.
The Company also has a SERP that provides additional pension benefits to executive officers and certain key employees of the
Company. The SERP is intended to provide benefits to individuals whose benefits under the defined benefit pension plan are reduced
due to the application of Section 4 I 5 of the Internal Revenue Code of I 986 and the deferral of salary under deferred compensation
plans. The liability and expense for this plan are included as pension benefits in the tables included in this Note.
The Company expects that benefit payments under the pension plan and the SERP will total (dollars in thousands):
2017 201 8 2019 2020 2021 Total 2022-2026
Expected benefit payments $ 30,971 $ 32,014 $ 33,047 $ 34,545 $ 35,892 $ 196,322
The expected long-term rate of retum on plan assets is based on past performance and economic forecasts for the types of investments
held by the plan. In selecting a discount rate, the Company considers yield rates for highly rated corporate bond portfolios with
maturities similar to that of the expected term of pension benefits.
The Company provides certain health care and life insurance benefits for eligible retired employees that were hired prior to January l,
2014.The Company accrues the estimated cost of postretirement benefit obligations during the years that employees provide services.
The liability and expense of this plan are included as other postretirement benefits. Non-union employees hired on or after January l,
2014, will have access to the retiree medical plan upon retirement; however, Avista Corp. will no longer provide a contribution
toward their medical premium.
The Company has a Health Reimbursement Arrangement (HRA) to provide employees with tax-advantaged funds to pay for
allowable medical expenses upon retirement. The amount earned by the employee is fixed on the retirement date based on the
employee's years of service and the ending salary. The liability and expense of the HRA are included as other postretirement benefits.
The Company provides death benefits to beneficiaries of executive officers who die during their term of office or after retirement.
Under the plan, an executive officer's designated beneficiary will receive a payment equal to twice the executive officer's annual base
salary at the time of death (or if death occurs after retirement, a payment equal to twice the executive officer's total annual pension
benefit). The liability and expense for this plan are included as other postretirement benefits.
The Company expects that benefit payments under other postretirement benefit plans will total (dollars in thousands):
2017 2018 2019 2020 2021 Total2022-2026
Expected benefit payments $ 6,991 $ 7302 $ 7,580 $ 6,479 $ 6,675 $ 34,704
The Company expects to contribute $7.0 million to other postretirement benefit plans in 2017, representing expected benefit payments
to be paid during the year excluding the Medicare Part D subsidy. The Company uses a December 3l measurement date for its
FERC FORi' NO. 2/3-Q (REV t2-07)122.19
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
pension and other postretirement benefit plans.
The following table sets forth the pension and other postretirement benefit plan disclosures as of December 3 1 , 2016 and 201 5 and the
components of net periodic benefit costs for the years ended December 31, 2016,2015 and2014 (dollars in thousands):
Pension Benefits
Other Post-
retirement Benefits
2016 2015 2016 2015
Change in benefit obligation:
Benefit obligation as of beginning of year
Service cost
Interest cost
Actuarial (gain)/loss
Plan change
Cumulative adjustment to reclassifo liability
Benefits paid
Benefit obligation as of end of year
Change in plan assets:
Fair value ofplan assets as ofbeginning ofyear
Actual return on plan assets
Employer contributions
Benefits paid
Fair value ofplan assets as ofend ofyear
Funded status
Unrecognized net actuarial loss
Unrecognized prior service cost
Prepaid (accrued) benefit cost
Additional liability
Accrued benefit liability
Unrecognized prior service cost
Unrecognized net actuarial loss
Total
Less regulatory asset
(32,874) (31,061)
$ 666,472 $ 613,503 $ 136,453 $ 138,795
$517,234 $
43,212
12,000
(31,532)
539,31 l $
(4,305)
12,000
(29,772)
30,868 $
2,497
$613,503 $
18,302
27,544
39,997
634,674 $
19,791
26,117
(35,790)
(228)
138,795 $
3,205
6,1 10
(3,648)
(l,042)
(6,967)
127,989
2,925
5,1 58
12,668
(1,000)
(1,521)
(7,424)
31,312
(444)
$ 540,914 $ 517,234 $ 33,365 $ 30,868
$ (125,558) $ (96,269) $ (103,088) $ (107,927)
178,783
23
162,961
25
81,979
(8,981)
92,433
(10,180)
53,248
(178,806)
66,717
(l 62,986)
(30,090)
(72,998)
(25,674)
(82,253)
Accumulated pension benefit obligation $ 583,498 $ 542,209
Accumulated postretirement benefit obligation:
For retirees
For fully eligible employees
For other participants
Included in accumulated other comprehensive loss (income) (net of tax):
$ (12s,s58) $ (96,269) $ (103,088) $ (107,927)
65,652
34,498
38,645
$ ls$
1t6,209
$
$
$
60,670
34,429
$
$
$41,354
16$
105,925
(s,8s4) $
53,303
(6,617)
60,081
116,224
(l 08,903)
105,941
(99,414)
47,449
(47,202)
53,464
(53,341)
loss for unfunded benefitAccumulated other
FERC FORM NO.122.20
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
obligation for pensions and other postretirement benefit
plans $ 7,321 $ 6,527 $247 $123
Pension Benefits
Other Post-
retirement Benefits.
2016 20ls 2016 2015
Weighted-average assumptions as of December 3l
Discount rate for benefit obligation
Discount rate for annual expense
Expected long-term retum on plan assets
Rate of compensation increase
Medical cost trend pre-age 65 - initial
Medical cost trend pre-age 65 - ultimate
Ultimate medical cost trend year pre-age 65
Medical cost trend post-age 65 - initial
Medical cost trend post-age 65 - ultimate
Ultimate medical cost trend year post-age 65
Components of net periodic benefit cost:
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Net loss recognition
Net periodic benefit cost
4.260
4.57o/o
5.400/T,
4.78%
4.57%
4.21%
s30%
437%
Pension Benefits
4.23%
4.57%
6.03%
7.00%
5.00%
2023
7.00%
5.00%
2024
Other Post-
retirement Benefits
4.57%
4.16%
6.36%
7.00%
5.000/o
2022
7.00%
s.00%
2023
2016 2015 2016 2015
$ r 8,302 $
27,544
(27,547)
2
8,51 1
19,791 $
26,117
(28,2ee))
2
9,451
3,205 $
6,t l0
(1,861)
(1,208)
5,728
2,925
5,1 58
( 1,991)
( 1,1 99)
5,095
$ 26,812 $ 27,062 $ 11,974 $ 9,988
Plan Assets
The Finance Committee of the Company's Board of Directors approves investment policies, objectives and strategies that seek an
appropriate return for the pension plan and other postretirement benefit plans and reviews and approves changes to the investment and
funding policies.
The Company has contracted with investment consultants who are responsible for managing/monitoring the individual investment
managers. The investment managers' performance and related individual fund performance is periodically reviewed by an intemal
benefits committee and by the Finance Committee to monitor compliance with investment policy objectives and strategies.
Pension plan assets are invested in mutual funds, trusts and partnerships that hold marketable debt and equity securities, real estate,
absolute return and commodity funds. In seeking to obtain the desired return to fund the pension plan, the investment consultant
recommends allocation percentages by asset classes. These recommendations are reviewed by the intemal benefits committee, which
FERC FORM NO. 2/3-Q (REV 12-07)122.21
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
then recommends their adoption by the Finance Committee. The Finance Committee has established target investment allocation
percentages by asset classes and also investment ranges for each asset class. The target invesfrnent allocation percentages are typically
the midpoint of the established range. The target investment allocation percentages by asset classes are indicated in the table below:
2016 2015
Equity securities
Debt securities
Real estate
Absolute retum
37%
45o/o
8o/o
10%
27o/o
580
60/o
9%
The 2016 target investment allocation percentages were revised in the fourth quarter of 2016 and the pension plan assets were
subsequently reinvested during the fourth quarter of 2016 and first quarter of 2017 to move toward the new target investment
allocation percentages. The target asset allocation percentages were modified to better align the asset allocations with the funded
status of the pension plan. Future contributions to the plan will also be increased to improve the funded status of the plan.
The fair value of pension plan assets invested in debt and equity securities was based primarily on fair value (market prices). The fair
value of investment securities traded on a national securities exchange is determined based on the reported last sales price; securities
traded in the over-the-counter market are valued at the last reported bid price. lnvestment securities for which market prices are not
readily available or for which market prices do not represent the value at the time of pricing, the investment manager estimates fair
value based upon other inputs (including valuations of securities that are comparable in coupon, rating, maturity and industry).
Investments in common/collective trust funds are presented at estimated fair value, which is determined based on the unit value of the
fund. Unit value is determined by an independent trustee, which sponsors the fund, by dividing the fund's net assets by its units
outstanding at the valuation date. The Company's investments in common/collective trusts have redemption limitations that permit
quarterly redemptions following notice requirements of 45 to 60 days. The fair values of the closely held investments and partnership
interests are based upon the allocated share ofthe fair value ofthe underlying assets as well as the allocated share ofthe undistributed
profits and losses, including realized and unrealized gains and losses. Most of the Company's investments in closely held investments
and partnership interests have redemption limitations that range from bi-monthly to semi-annually following redemption notice
requirements of 60 to 90 days. One investment in a partnership has a lock-up for redemption currently expiring in2022 and is subject
to extension.
The fair value of pension plan assets invested in real estate was determined by the investment manager based on three basic
approaches:
. properties are externally appraised on an annual basis by independent appraisers, additional appraisals may be
performed as warranted by specific asset or market conditions,
. property valuations are reviewed quarterly and adjusted as necessary, and
o loans are reflected at fair value.
The fair value of pension plan assets was determined as of Decemb er 3l , 2016 and 201 5.
Pension plan other postretirement plan assets whose fair values are measured using net asset value (NAV) are excluded from the fair
value hierarchy and are included as reconciling items in the tables below.
The following table discloses by level within the fair value hierarchy (see Note 74 for adescription of the fair value hierarchy) of the
pension plan's assets measured and reported as of December 31,2016 at fair value (dollars in thousands):
FERC FORM NO. 2/3-Q (REV t2-07)122.22
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Level I
Cash equivalents $ -Fixed income securities:
U.S. government issues
Corporate issues
International issues
Municipal issues
Mutual funds:
U.S. equity securities 120,856
International equity securities 30,025
Absolute return (l) 6,622
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate
Intemational equity securities
Partnership/closely held investments:
Absolute return (1)
Private equity funds (2)
Real estate
Total
Level2 Level 3 Total
$ 10,179 $
30,919
193,563
34,145
18,888
$ 10,179
30,919
193,563
34,145
18,888
120,856
30,025
6,622
19,779
29,140
39,077
72
7,649
$ 157,503 $ 287,694 $$ s40,914
The following table discloses by level within the fair value hierarchy (see Note 14 for a description ofthe fair value hierarchy) of the
pension plan's assets measured and reported as of December 31,2015 at fair value (dollars in thousands):
Level I Level2 Level 3 Total
Cash equivalents $
Fixed income securities:
U.S. government issues
Corporate issues
International issues
Municipal issues
Mutual funds:
U.S. equity securities
Intemational equity securities
Absolute retum (1)
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/co I lective trusts:
Real estate
Partnership/closely held investments:
Absolute return (l)
87,678
40,343
13,996
86 $ 10,641 $
47,845
187,308
34,458
22,416
$ 10,727
47,845
187,308
34,458
22,416
87,678
40,343
13,996
24,147
38,302
FERC FORM NO. 2/3-Q (REV 12.07)122.23
Name of Respondent
Avista Corooration
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Private equity funds (2)
Real estate
Total
Cash equivalents
Mutual funds:
Fixed income securities
U.S. equity securities
International equity securities
Total
73
9,941
$ 142,103 $ 302,668 $s 517,234
(l) This category invests in multiple strategies to diversifu risk and reduce volatility. The strategies include: (a) event driven,
relative value, convertible, and fixed income arbitrage, (b) distressed investments, (c) long/short equity and fixed income,
and (d) market neutral strategies.
(2) This category includes private equity funds that invest primarily in U.S. companies.
The fair value of other postretirement plan assets invested in debt and equity securities was based primarily on market prices. The fair
value of investment securities traded on a national securities exchange is determined based on the last reported sales price; securities
traded in the over-the-counter market are valued at the last reported bid price. Investment securities for which market prices are not
readily available are fair-valued by the investment manager based upon other inputs (including valuations of securities that are
comparable in coupon, rating, maturity and industry). The target asset allocation was 60 percent equity securities and 40 percent debt
securities in both 2016 and 2015.
The fair value of other postretirement plan assets was determined as of Decemb er 3l , 2016 and 20 I 5.
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 31,2016 at fair value (dollars in thousands):
Level I Level 2 Level 3 Total
Cash equivalents
Mutual funds:
Balanced index fund (l)
Total
$$6$$6
33,3s9 33,3s9
$ 33,359 $6$$ 33,365
(l) The balanced index fund is a single mutual fund that includes a percentage of U.S. equity securities, fixed income securities and
International securities.
The following table discloses by level within the fair value hierarchy (see Note 14 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 3 I , 201 5 at fair value (dollars in thousands):
Level I Level2 Level 3 Total
$$e$$9
12,000
13,224
5,635
12,000
13,224
5,635
$ 30,8s9 $e$$ 30,868
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A
one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement
benefit obligation as of December 31,2016 by $8.6 million and the service and interest cost by $1.0 million. A one-percentage-point
FERC FORM NO.1 122.24
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
of December 3l,2016 by $6.7 million and the service and interest cost by $0.7 million.
101(k) Plans and Executive Deferral Plan
Avista Corp. has a salary deferral 401(k) plans that is a defined contribution plan and covers substantially all employees. Employees
can make contributions to their respective accounts in the plans on a pre-tax basis up to the maximum amount permitted by law. The
Company matches a portion of the salary deferred by each participant according to the schedule in the respective plan.
Employer matching contributions were as follows for the years ended December 3l (dollars in thousands):
2016 2015
Employer 401 (k) matching contributions $ 8,555 $ 7,875
The Company has an Executive Deferral Plan. This plan allows executive officers and other key employees the oppornrnity to defer
until the earlier of their retirement, termination, disability or death, up to 75 percent of their base salary and/or up to 100 percent of
their incentive payments. Deferred compensation funds are held by the Company in a Rabbi Trust.
There were deferred compensation assets and corresponding deferred compensation liabilities on the Balance Sheets of the following
amounts as of December 3l (dollars in thousands):
2016 2015
Deferred compensation assets and liabilities $ 7,679 $ 8,093
NOTE 9. ACCOUNTING FOR INCOME TAXES
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes and tax credit carryforwards.
The realization of deferred income tax assets is dependent upon the ability to generate taxable income in future periods. The Company
evaluated available evidence supporting the realization of its deferred income tax assets and determined it is more likely than not that
deferred income tax assets will be realized.
As of December 31,2016, the Company had $17.1 million of state tax credit carryforwards of which it is expected $7.9 million may
expire unused; the Company has reflected the net amount of $9.2 million as an asset at December 31 ,2016. State tax credits expire
from 2019 to2028.
The Company and its eligible subsidiaries file consolidated federal income tax retums. The Company also files state income tax
returns in certain jurisdictions, including Idaho, Oregon and Montana. Subsidiaries are charged or credited with the tax effects of their
operations on a stand-alone basis. The Intemal Revenue Service (IRS) has completed its examination of all tax years through 2011
and all issues were resolved related to these years. The statute of limitations for the IRS to review the2012 tax year has expired,
leaving the 2013 through 2015 taxyears still open for review. The Company believes that any open tax years for federal or state
income taxes will not result in adjustments that would be significant to the financial statements.
The Company had net regulatory assets related to the probable recovery of certain defened income tax liabilities from customers
through future rates as of December 31 (dollars in thousands):
2016 2015
Regulatory assets for deferred income taxes $ 109,8s3 $ 101,240
FERC FORM NO. 2/3-Q 1 122.25
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
Regulatory liabilities for deferred income taxes 28,966 17,609
NOTE IO. ENERGY PURCHASE CONTRACTS
Avista Corp. has contracts for the purchase of fuel for thermal generation, natural gas for resale and various agreements for the
purchase or exchange of electric energy with other entities. The remaining term of the contracts range from one month to twenty-five
years.
Total expenses for power purchased, natural gas purchased, fuel for generation and other fuel costs, which are included in utility
resource costs in the Statements of Income, were as follows for the years ended December 3l (dollars in thousands):
2016 2015
Utility power resources $ 402,575 $ 511,937
The following table details Avista Corp.'s future contractual commitments for power resources (including transmission contracts) and
natural gas resources (including transportation contracts) (dollars in thousands):
2017 2018 2019 2020 2021 Thereafter Total
Power resources
Natural gas resources
Total
$ 202,494 $
95,549
187,080 $
65,230
174,28s $
s3,860
109,878 $
41,340
96,485 $
29,306
775,548 $ 7,545,770
349,468 634,753
$ 298,043 $ 252,310 $ 228,145 $ l5l,2l8 $ 125,791 $ 1,125,016 $ 2,180,523
These energy purchase contracts were entered into as part ofAvista Corp.'s obligation to serve its retail electric and natural gas
customers' energy requirements, including contracts entered into for resource optimization. As a result, these costs are recovered
either through base retail rates or adjustments to retail rates as part ofthe power and natural gas cost deferral and recovery
mechanisms.
The above future contractual commitments for power resources include fixed contractual amounts related to the Company's contracts
with certain PUDs to purchase portions of the output of certain generating facilities. Although Avista Corp. has no investment in the
PUD generating facilities, the fixed contracts obligate Avista Corp. to pay certain minimum amounts whether or not the facilities are
operating. The cost of power obtained under the contracts, including payments made when a facility is not operating, is included in
utility resource costs in the Statements of Income. The contractual amounts included above consist of Avista Corp.'s share of existing
debt service cost and its proportionate share of the variable operating expenses of these projects. The minimum amounts payable
under these contracts are based in part on the proportionate share of the debt service requirements of the PUD's revenue bonds for
which the Company is indirectly responsible. The Company's total future debt service obligation associated with the revenue bonds
outstanding at December 31,2016 (principal and interest) was $65.2 million.
In addition, Avista Corp. has operating agreements, settlements and other contractual obligations related to its generating facilities and
transmission and distribution services. The following table details future contractual commitments under these agreements (dollars in
thousands):
2017 201 8 2019 2020 2021 Thereafter Total
Contractualobligations S 33,922 $ 28,783 g 32,549 $ 32,160 $ 27,019 $ 189,000 S 343,433
NOTE 11. NOTES PAYABLE
Avhta Corp
Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0 million. A two-year option
FERC FORM NO. 2/3-Q (REV 12-07)122.26
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
03131t2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
was exercised by the Company in 2016 to extend the maturity of the facility agreement to April 202 I .
The committed line of credit agreement contains customary covenants and default provisions. The credit agreement has a covenant
which does not permit the ratio of "consolidated total debt" to "consolidated total capitalization" of Avista Corp. to be greater than 65
percent at any time. As of December 31,2016, the Company was in compliance with this covenant.
Balances outstanding and interest rates of borrowings (excluding letters of credit) under the Company's revolving committed lines of
credit were as follows as of December 31 (dollars in thousands):
2016 20l s
Balance outstanding at end ofperiod
Letters ofcredit outstanding at end ofperiod
Average interest rate at end ofperiod
Maturity
Year Description
As of December 31, 2016 and 2015, the borrowings outstanding under Avista Corp.'s committed line of credit were classified as
short-term borrowings on the Balance Sheet.
NOTE 12. BOI\DS
The following details long-term debt outstanding as of December 3l (dollars in thousands)
$ 120,000 $ 105,000
$ 34,353 S 44,595
1.50% l.l8o/o
2016 20ls
Interest
Rate
2016
201 8
201 8
2019
2020
2022
2023
2028
2032
2034
2035
2037
2040
2041
2044
2045
2047
20st
First Mortgage Bonds (l)
First Mortgage Bonds
Secured Medium-Term Notes
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
Secured Medium-Term Notes
Secured Medium-Term Notes
Secured Pollution Control Bonds (2)
Secured Pollution Control Bonds (2)
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds (3)
Total secured bonds
Secured Pollution Control Bonds held by Avista
Corporation (2)
Total long-term debt
0.84o/o
5.95o/o
7.39%-7.45%
5.45o/o
3.89%
s.13%
7.18%o-7.54o/o
6.37%
(2)
(2)
6.25%
5.70o/o
5.550/0
4.45%
4.llYo
437%
4.23o/o
3.54Yo
$$
250,000
22,500
90,000
52,000
250,000
t 3,500
25,000
66,700
17,000
150,000
1s0,000
3s,000
85,000
60,000
100,000
80,000
t 75,000
90,000
250,000
22,500
90,000
52,000
250,000
13,s00
25,000
66,700
17,000
150,000
150,000
35,000
85,000
60,000
100,000
90,000
1,621,700 1,536,700
(83,700)
$ 1,538,000 $
(83,700)
1,453,000
FERC FORM NO. Z3.Q 1 122.27
Name of Respondent
Avista Corporation
This Report is:
(1) XAn Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
(l)In August 2016, Avista Corp. entered into a term loan agreement with a commercial bank in the amount of $70.0 million
with a maturity date of December 30,2016. Loans under this agreement were unsecured and had a variable annual interest
rate. The Company borrowed the entire $70.0 million available under this agreement, which was used to repay a portion of
the $90.0 million in first mortgage bonds that matured in August 2016. This term loan was subsequently repaid in full in
December using the proceeds from the first mortgage bonds issued in December 2016 (discussed below).
In December 2010, $66.7 million and $ I 7.0 million of the City of Forsyth, Montana Pollution Control Revenue Refunding
Bonds (Avista Corporation Colstrip Project) due in2032 and2034, respectively, which had been held by Avista Corp. since
2008 and 2009, respectively, were refunded by new bond issues (Series 2010A and Series 2010B). The new bonds were not
offered to the public and were purchased by Avista Corp. due to market conditions. The Company expects that at a later date,
subject to market conditions, these bonds may be remarketed to unaffiliated investors. So long as Avista Corp. is the holder
of these bonds, the bonds will not be reflected as an asset or a liability on Avista Corp.'s Balance Sheets.
In December 2016, Avista Corp. issued and sold $175.0 million of 3.54 percent first mortgage bonds due in 2051 pursuant to
a bond purchase agreement with institutional investors in the private placement market. The total net proceeds from the sale
of the bonds were used to repay the $70.0 million term loan discussed above and to repay a portion of the bonowings
outstanding under the Company's $400.0 million committed line of credit. In connection with the execution of the bond
purchase agreement, the Company cash-settled seven interest rate swap derivatives (notional aggregate amount of $125.0
million) and paid a total of $54.0 million.
(2)
(3)
The following table details future long-term debt maturities including advances from associated companies (see Note l3) (dollars in
thousands):
2017 201 8 2019 2020 2021 Thereafter Total
Debt maturities $$ 272,500 $ 90,000$ 52,000$ -$1,175,047 $1,589,547
Substantially all of Avista Corp.'s owned properties are subject to the lien of its mortgage indenture. Under the Mortgage and Deed of
Trust (Mortgage) securing its first mortgage bonds (including secured medium-term notes), Avista Corp. may issue additional fnst
mortgage bonds under its mortgage in an aggregate principal amount equal to the sum of:
66-2/3 percent of the cost or fair value (whichever is lower) of property additions which have not previously been made the
basis of any application under the Mortgage, or
an equal principal amount of retired first mortgage bonds which have not previously been made the basis of any application
under the Mortgage, or
deposit ofcash.
However, Avista Corp. may not issue any additional first mortgage bonds (with certain exceptions in the case of bonds issued on the
basis of retired bonds) unless it has "net earnings" (as defined in the Mortgage) for any period of 12 consecutive calendar months out
of the preceding l8 calendar months that were at least twice the annual interest requirements on all mortgage securities at the time
outstanding, including the first mortgage bonds to be issued, and on all indebtedness of prior rank. As of December 3l ,2016,
property additions and retired bonds would have allowed, and the net earnings test would not have prohibited, the issuance of $ I .2
billion in aggregate principal amount of additional first mortgage bonds at Avista Corp.
NOTE 13. ADVAI{CES FROM ASSOCIATED COMPAIIIES
ln 1997, the Company issued Floating Rate Junior Subordinated Deferrable Interest Debentures, Series B, with a principal amount of
FERC FORM NO. 2/3-Q 122.28
a
Name of Respondent
Avista Corporation
This Report is:
(1) XAn OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
$51.5 million to Avista Capital II, an affiliated business trust formed by the Company. Avista Capital II issued $50.0 million of
Preferred Trust Securities with a floating distribution rate of LIBOR plus 0.875 percent, calculated and reset quarterly.
The distribution rates paid were as follows during the years ended December 31:
2016 2015
Low distribution rate
High distribution rate
Distribution rate at the end of the year
1.29%
t.8t%
l.8lo
t.t1%
7.29o/o
7.29o/o
Concurrent with the issuance of the Preferred Trust Securities, Avista Capital II issued $l.5 million of Common Trust Securities to
the Company. These debt securities may be redeemed at the option of Avista Capital II at any time and mature on June I , 2037 . ln
December 2000, the Company purchased $10.0 million of these Preferred Trust Securities.
The Company owns 100 percent of Avista Capital II and has solely and unconditionally guaranteed the payment of distributions on,
and redemption price and liquidation amount for, the Preferred Trust Securities to the extent that Avista Capital II has funds available
for such payments from the respective debt securities. Upon maturity or prior redemption of such debt securities, the Preferred Trust
Securities will be mandatorily redeemed.
NOTE 14. FAIR VALUE
The carrying values ofcash and cash equivalents, special deposits, accounts and notes receivable, accounts payable and notes payable
are reasonable estimates of their fair values. Bonds and advances from associated companies are reported at carrying value on the
Balance Sheets.
The fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to fair values derived from
unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are defined as follows:
Level 1 - Quoted prices are available in active markets for identical assets or liabilities. Active markets are those in which
transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1 , but which are either directly or
indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other
valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted
forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying
instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace
throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which
transactions are executed in the marketplace.
Level 3 - Pricing inputs include significant inputs that are generally unobservable from objective sources. These inputs may be
used with internally developed methodologies that result in management's best estimate of fair value.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value
measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgmen!
and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The
determination of the fair values incorporates various factors that not only include the credit standing of the counterparties involved
FERC FORM NO.1 122.29
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
and the impact of credit enhancements (such as cash deposits and letters of credit), but also the impact of Avista Corp.'s
nonperformance risk on its liabilities.
The following table sets forth the carrying value and estimated fair value of the Company's financial instruments not reported at
estimated fair value on the Balance Sheets as of December 3 I (dollars in thousands):
2016 2015
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Bonds (Level 2)
Bonds (Level 3)
Advances from associated companies (Level 3)
December 31,2016
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives
Natural gas exchange agreements
Power exchange agreement
Foreign curency exchange derivatives
Interest rate swap derivatives
Deferred compensation assets:
Fixed income securities
Equity securities
Total
Liabilities:
$9s l,000 $
587,000
51,547
1,048,661 S
s83,073
38,660
951,000 $
502,000
51,547
1,055,797
505,768
36,083
These estimates of fair value of long-term debt and long-term debt to affiliated trusts were primarily based on available market
information, which generally consists of estimated market prices from third parry brokers for debt with similar risk and terms. The
price ranges obtained from the third parry brokers consisted of par values of 75.00 to 122.59, where a par value of 100.00 represents
the carrying value recorded on the Balance Sheets. Level2 long-term debt represents publicly issued bonds with quoted market
prices; however, due to their limited trading activity, they are classified as Level 2 because brokers must generate quotes and make
estimates using comparable debt with similar risk and terms if there is no trading activity near a period end. Level 3 long-term debt
consists of private placement bonds and debt to affiliated trusts, which typically have no secondary trading activity. Fair values in
Level 3 are estimated based on market prices from third party brokers using secondary market quotes for debt with similar risk and
terms to generate quotes for Avista Corp. bonds.
The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on
the Balance Sheets as of December 31,2016 and 2015 at fair value on a recurring basis (dollars in thousands):
Level I Level2 Level 3
Counterparty
and Cash
Collateral
Netting (l)Total
$$ 47,994 $
5
13,099
$ (46,099) $ 1,895
(6e)
(2s)
(s)
(4,348)8,750
1,789
5,481
69
25
1,789
5,481
$ 7,270 $ 61,097 $94 $ (so,s46)$ t7,9ts
FERC FORM NO. 2/3-Q (REV 12-07)122.30
Name of Respondent
Avista Corporation
This Report is:
(1) XAn Originalel A Resubmission
Date of Report
(Mo, Da, Yr)
o3t3'U2017
Year/Period of Report
2016tA4
Notes to Financial Statements
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
Power exchange agreement
Power option agreement
Interest rate swap derivatives
Foreign currency exchange derivatives
Total
December 31,2015
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
Foreign curency exchange derivatives
Interest rate swap derivatives
Defened compensation assets:
Fixed income securities
Equity securities
Total
Liabilities:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
Power exchange agreement
Power option agreement
Foreign currency exchange derivatives
Interest rate swap derivatives
Total
$$ s6;871 $
73,978
28
$ (55,957) $914
(6e)
(2s)
5,885
13,449
76
34,730
23
(39,248)
(s)
5,954
13,474
76
$$ 130,877 $ 19,504 $ (95,304) $ 55,077
Level I Level2 Level 3
Counterparty
and Cash
Collateral
Netting (l)Total
$$ 74,637 $
2
1,548
$ (73,9s4) $ 683
(678)
(2)
1,548
1,727
5,761
678
1,727
5,761
$ 7,488 $ 76,187 S 678 $ (74,634) $ 9,719
$$ 97,193 $$ (88,480) $ 8,713
l9
85,498
5,717
21,961
124
(678)5,039
21,961
124
t7
85,498
(2)
$ 182,710 $ 27,802 $ (89,160) $ 121,352
(l) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable
master netting agreement exists. ln addition, the Company nets derivative assets and derivative liabilities against any payables
and receivables for cash collateral held or placed with these same counterparties.
The difference between the amount of derivative assets and liabilities disclosed in respective levels in the table above and the amount
of derivative assets and liabilities disclosed on the Balance Sheets is due to netting arrangements with certain counterparties. See Note
5 for additional discussion of derivative netting.
FERC FORM NO. 2/3-Q 1 122.3'.1
$
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016lA4
Notes to Financial Statements
To establish fair value for energy commodity derivatives, the Company uses quoted market prices and forward price curves to
estimate the fair value of utility derivative commodity instruments included in Level 2. In particular, electric derivative valuations are
performed using market quotes, adjusted for periods in between quotable periods. Natural gas derivative valuations are estimated
using New York Mercantile Exchange (I.[YMEX) pricing for similar instruments, adjusted for basin differences, using market quotes.
Where observable inputs are available for substantially the full term of the contract, the derivative asset or liability is included in
Level2.
To establish fair values for interest rate swap derivatives, the Company uses forward market curves for interest rates for the term of
the swaps and discounts the cash flows back to present value using an appropriate discount rate. The discount rate is calculated by
third party brokers according to the terms of the swap derivatives and evaluated by the Company for reasonableness, with
consideration given to the potential non-performance risk by the Company. Future cash flows of the interest rate swap derivatives are
equal to the fixed interest rate in the swap compared to the floating market interest rate multiplied by the notional amount for each
period.
To establish fair value for foreign currency derivatives, the Company uses forward market curves for Canadian dollars against the US
dollar and multiplies the difference between the locked-in price and the market price by the notional amount of the derivative.
Forward foreign currency market curyes are provided by third party brokers. The Company's credit spread is factored into the
locked-in price ofthe foreign exchange contracts.
Deferred compensation assets and liabilities represent funds held by the Company in a Rabbi Trust for an executive deferral plan.
These funds consist of actively traded equity and bond funds with quoted prices in active markets. The balance disclosed in the table
above excludes cash and cash equivalents of $0.4 million as of December 31,2016 and $0.6 million as of December 31,2015.
Level 3 Fuir Vslue
Under the power exchange agreement the Company purchases power at a price that is based on the average operating and
maintenance (O&M) charges from three surrogate nuclear power plants around the country. To estimate the fair value of this
agreement the Company estimates the difference between the purchase price based on the future O&M charges and forward prices for
energy. The Company compares the Level 2 brokered quotes and forward price curves described above to an intemally developed
forward price which is based on the average O&M charges from the three surrogate nuclear power plants for the current year.
Because the nuclear power plant O&M charges are only known for one year, all forward years are estimated assuming an annual
escalation. In addition to the forward price being estimated using unobservable inputs, the Company also estimates the volumes of the
transactions that will take place in the future based on historical average transaction volumes per delivery year (November to April).
Significant increases or decreases in any of these inputs in isolation would result in a significantly higher or lower fair value
measurement. Generally, a change in the current year O&M charges for the surrogate plants is accompanied by a directionally similar
change in O&M charges in future years. There is generally not a correlation between external market prices and the O&M charges
used to develop the internal forward price.
For the power commodity option agreement, the Company uses the Black-Scholes-Merton valuation model to estimate the fair value,
and this model includes significant inpu8 not observable or corroborated in the market. These inputs include: l) the strike price
(which is an internally derived price based on a combination of generation plant heat rate factors, natural gas market pricing, delivery
and other O&M charges), 2) estimated delivery volumes, and 3) volatility rates. Significant increases or decreases in any of these
inputs in isolation would result in a significantly higher or lower fair value measurement. Generally, changes in overall commodity
market prices and volatility rates are accompanied by directionally similar changes in the strike price and volatility assumptions used
in the calculation.
FERC FORM NO. Z3.Q (REV 12-07)122.32
For the natural gas commodity exchange agreement, the Company uses the same Level 2 brokered quotes described above; however,
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statemonts
the Company also estimates the purchase and shles volumes (within contractual limits) as well as the timing of those transactions.
Changing the timing of volume estimates changes the timing of purchases and sales, impacting which brokered quote is used. Because
the brokered quotes can vary significantly from period to period, the unobservable estimates of the timing and volume of transactions
can have a significant impact on the calculated fair value. The Company currently estimates volumes and timing of transactions based
on a most likely scenario using historical data. Historically, the timing and volume of transactions have not been highly correlated
with market prices and market volatility.
The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and
liabilities above as of December 31,2076 (dollars in thousands):
Fair Value
(NeQ at
December 31,
2016
Valuation
Technique Unobservable Input Range
Power exchange agreement $(13,449) Surrogate facility
pricing
O&M charges $33.59-$49.154{Wh (l)
Escalation factor
Transaction volumes
3o/o - 2017 to 2019
241,558 - 396,984 MWhs
Power option agreement (76)Black-Scholes-
Merton
Strike price $37.83/MWh - 2019
Delivery volumes
Volatility rates
$54.404,1Wh - 2018
157,517 -285,979 MWhs
0.20 (2)
Natural gas exchange
agreement
(5,885) Internallyderived
weighted-average
cost ofgas
Forward purchase
prices
Forward sales prices
Purchase volumes
Sales volumes
$1.83 - $3.06/mmBTU
$1.90 - $5.14lmmBTU
I15,000 - 310,000 mmBTUs
60,000 - 310,000 mmBTUs
(l ) The average O&M charges for the delivery year beginning in November 2016 were $39.22 per MWh. For ratemaking purposes
the average O&M charges to be included for recovery in retail rates vary slightly between regulatory jurisdictions. The average
O&M charges for the delivery year beginning in 201 6 were $44.33 for Washington and $39.22 for Idaho.
(2) The estimated volatility rate of 0.20 is compared to actual quoted volatility rates of 0.35 for 2017 to 0.26 in December 2018.
The valuation methods, significant inputs and resulting fair values described above were developed by the Company's management
and are reviewed on at least a quarterly basis to ensure they provide a reasonable estimate of fair value each reporting period.
The following table presents activity for energy commodity derivative assets (liabilities) measured at fair value using significant
unobservable inputs (Level 3) for the years ended December 31 (dollars in thousands):
Natural Gas
Exchange
Agreement
Power
Exchange
Agreement
Power
Option
Agreement Total
FERC FORM NO. 2/3-Q (REV 12-07)122.33
Name of Respondent
Avista Comoration
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
03131t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
Year ended December 31,20162
Balance as ofJanuary 1,2016
Total gains or (l osses) (realized/ wrealized) :
Included in regulatory assets/liabilities (l)
Settlements
Ending balance as of December 31,2016 (2)
Year ended December 31,2015:
Balance as ofJanuary 1,2015
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (l)
Settlements
Ending balance as of December 31,2015 (2)
$ (s,039) $ (21,96t) $ (124) $ (27,124)
259
(l,1 05)
400
8,112
48 707
7,007
$ (s,885) $ (13,449) $ (76) $ (re,41o)
$ (3s) $ (23,299) $ (424) $ (23,7s8)
(6,008)
1,004
(6,198)
7,536
300 (l 1,906)
8,540
$ (s,o3e) $ (21,e6t) $ (124) $ (27,124)
(l) All gains and losses are included in other regulatory assets and liabilities. There were no gains and losses included in either net
income or other comprehensive income during any of the periods presented in the table above.
(2) There were no purchases, issuances or transfers from other categories ofany derivatives instruments during the periods presented
in the table above.
NOTE 15. COMMON STOCK
The payment of dividends on common stock could be limited by:
. certain covenants applicable to preferred stock (when outstanding) contained in the Company's Restated Articles of
Incorporation, as amended (currently there are no preferred shares outstanding),
. certain covenants applicable to the Company's outstanding long-term debt and committed line of credit agreements,
o the hydroelectric licensing requirements of section 10(d) of the FPA (see Note 1), and
. certain requirements under the OPUC approval of the AERC acquisition in2014. The OPUC's AERC acquisition
order requires Avista Corp. to maintain a capital structure of no less than 40 percent common equity (inclusive of
short-term debt). This limitation may be revised upon request by the Company with approval from the OPUC.
The Company declared the following dividends for the year ended December 31
2016 2015
Dividends paid per common share $1.37 $1.32
Under the most restrictive of the dividend limitations discussed above, which are the requirements of the OPUC approval of the
AERC acquisition, the amount available for dividends at December 3l, 2016 was limited to $263 .4 million.
The Company has 10 million authorized shares of preferred stock. The Company did not have any preferred stock outstanding as of
December 31,2016 and 2015.
Stock Repurchose Programs
During 2014 and 2015, Avista Corp.'s Board of Directors approved programs to repurchase shares of the Company's outstanding
FERC FORM NO. 2/3-Q (REV 12-07)122.U
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
common stock. The number of shares repurchased and the total cost of repurchases are disclosed in the Statements of Equity and
Redeemable Noncontrolling Interests. The average repurchase price was $31.57 in2014 and $32.66 in 2015. All repurchased shares
reverted to the status ofauthorized but unissued shares.
Equily Issuances
In March 20l6,the Company entered into four separate sales agency agreements under which Avista Corp.'s sales agents may offer
and sell up to 3.8 million new shares of Avista Corp.'s common stock, no par value, from time to time. The sales agency agreements
expire on February 29, 2020.In 2016, I .6 million shares were issued under these agreements resulting in total net proceeds of $65.3
million, leaving 2.2 million shares remaining to be issued.
Ln2016, the Company also issued $1.7 million (net of issuance costs) of common stock under the employee plans.
NOTE 16. COMMITMENTS AIID CONTINGENCIES
In the course of its business, the Company becomes involved in various claims, controversies, disputes and other contingent matters,
including the items described in this Note. Some of these claims, controversies, disputes and other contingent matters involve
litigation or other contested proceedings. For all such matters, the Company intends to vigorously protect and defend its interests and
pursue its rights. However, no assurance can be given as to the ultimate outcome of any particular matter because litigation and other
contested proceedings are inherently subject to numerous uncertainties. For matters that affect Avista Corp.'s operations, the
Company intends to seek, to the extent appropriate, recovery of incuned costs through the ratemaking process.
California Refund Proceeding
In February 2016, APX, a market maker in the California Refund Proceedings in whose markets Avista Energy participated in the
summer of 2000, asserted that Avista Energy and its other customer/participants may be responsible for a share of the disgorgement
penalty APX may be found to owe to Pacific Gas & Electric (PG&E), Southern California Edison, San Diego Gas & Electric, the
Califomia Attorney General (AG), the California Department of Water Resources (CERS), and the California Public Utilities
Commission (together, the "Califomia Parties"). The penalty arises as a result of the FERC's finding that APX committed violations
in the Califomia market in the summer of 2000. APX is making these assertions despite Avista Energy having been dismissed in
FERC Opinion No. 536 from the on-going administrative proceeding at the FERC regarding potential wrongdoing in the Califomia
markets in the summer of 2000. APX has identified Avista Energy's share of APX's exposure to be as much as $16.0 million even
though no wrongdoing allegations are specifically attributable to Avista Energy. Avista Energy believes its settlement with the
California Parties in20l4 insulates it from any such liability and that as a dismissed pary it cannot be drawn back into the
litigation. Avista Energy intends to vigorously dispute APX's assertions of indirect liability, but cannot at this time predict the
eventual outcome.
Pacift c Northwest Refu nd Proceeding
In July 2001 , the FERC initiated a preliminary evidentiary hearing to develop a factual record as to whether prices for spot market
sales of wholesale energy in the Pacific Northwest between December 25,2000 and June 20,2001 were just and reasonable. In June
2003, the FERC terminated the Pacific Northwest refund proceedings, after finding that the equities do not justify the imposition of
refunds. In August 2007,the Ninth Circuit found that the FERC had failed to take into account new evidence of market manipulation
and that such failure was arbitrary and capricious and, accordingly, remanded the case to the FERC, stating that the FERC's findings
must be reevaluated in light of the new evidence. The Ninth Circuit expressly declined to direct the FERC to grant refunds. On
October 3,2071, the FERC issued an Order on Remand and on April 5, 2013 expanded the temporal scope of the proceeding to
permit parties to submit evidence on transactions during the period from January 1, 2000 through and including June 20, 2001.
On July ll,2012 and March 28,2073, Avista Energy and Avista Corp. filed settlements of all issues in this docket with regard to the
FERC FORM NO. 2/3-Q (REV t2-07)122.35
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Notes to Financial Statements
claims made by the City of Tacoma and the California AG (on behalf of the California Department of Water Resources). The FERC
approved the settlements and they are final.
The remaining direct claimant against Avista Corp. and Avista Energy in this proceeding was the City of Seattle, Washington
(Seattle). An evidentiary, trial type hearing before an Administrative Law Judge (ALJ) to permit parties to present evidence of
unlawful market activity was conducted in 2013.
With regard to the Seattle claims, on March 28,2074, the Presiding ALJ issued an Initial Decision finding that: l) Seattle failed to
demonstrate that either Avista Corp. or Avista Energy engaged in unlawful market activity and also failed to identify any specific
contracts at issue; 2) Seattle failed to demonstrate that contracts with either Avista Corp. or Avista Energy imposed an excessive
burden on consumers or seriously harmed the public interest; and that 3) Seattle failed to demonstrate that either Avista Corp. or
Avista Energy engaged in any specific violations of substantive provisions of the FPA or any filed tariffs or rate schedules.
Accordingly, the ALJ denied all of Seattle's claims under both section 206 and section 309 of the FPA. On N{ay 22,2015, the FERC
issued its Order on Initial Decision in which it upheld the ALJ's Initial Decision denying all of Seattle's claims against Avista Corp.
and Avista Energy. Seattle filed a Request for Rehearing of the FERC's Order on Initial Decision which was denied on December 31,
2015. Seattle appealed the FERC's decision to the Ninth Circuit. In October 2016, Seattle settled all of the matters with the remaining
parties and withdrew its appeal at the Ninth Circuit. All the remaining parties signed the settlement agreement and a petition to
dismiss the case was filed with the Ninth Circuit on October 27 , 2016. There are no remaining claims outstanding under this
proceeding. The settlement did not have a material adverse effect on the Company's financial condition, results of operations or cash
flows.
Sienu Clab and Montana Environmental Information Cenur Litigation
ln 2013, the Sierra Club and Montana Environmental Information Center (MEIC) (collectively "Plaintiffs"), filed a Complaint in the
United States District Court for the District of Montana, Billings Division, against the Owners of the Colstrip Generating Project
("Colstrip"); Avista Corp. owns a l5 percent interest in Units 3 & 4 of Colstrip. The other Colstrip co-Owners are Talen Montan4
LLC (formerly PPL Montan4 LLC, an indirect subsidiary of Talen Energy Corporation), Puget Sound Energy, Portland General
Electric Company, NorthWestern Energy and PacifiCorp. The Complaint alleged certain violations of the Clean Air Act, including the
New Source Review, Title V and opacity requirements with respect to post-January I , 2001 Colstrip projects. The Plaintiffs requested
that the Court grant injunctive and declaratory relief, order remediation of alleged environmental damages, impose civil penalties,
require a beneficial environmental project in the areas affected by the alleged air pollution and require payment of Plaintiffs' costs of
litigation and attomey fees.
The liability trial was scheduled to start on May 31,2016. The parties engaged in settlement discussions with the Plaintiffs to resolve
the claims raised in the litigation. On July 12,2076, the parties filed a proposed Consent Decree with the court which contained the
terms of the settlement of the matter with respect to all four units at Colstrip. The settlement does not include any monetary payments
by any parfy, dismisses all claims against all four units, and provides for the shut-down of units I & 2 (which are owned solely by
Talen Montana,LLC and Puget Sound Energy) no later than July,2022. The Consent Decree was entered on September 6, 2016. The
parties have petitioned the Court for costs and attomeys' fees. The Court denied the defendant's claim for fees and reduced the
plaintiffsclaimedfeesfromapproximately$3.0millionto$l.6million.OnFebruary 15,2017 theCourtissuedanOrderadopting
this resolution in full and closing the case.
The Company does not expect that this matter will have a material adverse effect on its financial condition, results of operations or
cash flows.
Cabinet Gorge Total Dissolved Gas Ahutement Plan
Dissolved atmospheric gas levels (referred to as "Total Dissolved Gas" or "TDG") in the Clark Fork River exceed state of Idaho and
FERC FORM NO. 2/3-Q (REV 12-07)122.36
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
2016/Q4
Notes to Financial Statements
federal water quality numeric standards downstream of Cabinet Gorge particularly during periods when excess river flows must be
diverted over the spillway. Under the terms of the Clark Fork Settlement Agreement (CFSA) as incorporated in Avista Corp.'s FERC
license for the Clark Fork Project, Avista Corp. has worked in consultation with agencies, tribes and other stakeholders to address this
issue. Under the terms of a gas supersaturation mitigation plan, Avista is reducing TDG by constructing spill crest modifications on
spill gates at the dam, and the Company expects to continue spill crest modifications over the next several years, in ongoing
consultation with key stakeholders. Avista Corp. cannot at this time predict the outcome or estimate a range of costs associated with
this contingency; however, the Company will continue to seek recovery, through the ratemaking process, of all operating and
capitalized costs related to this issue.
Fish Passage at Cabinet Gorge and Noxon Rapids
In 1999, the United States Fish and Wildlife Service (USFWS) listed bull trout as threatened under the Endangered Species Act. In
2010, the USFWS issued a revised designation of critical habitat for bull trout which includes the lower Clark Fork River. The
USFWS issued a final recovery plan in October 2015.
The CFSA describes programs intended to help restore bull trout populations in the project area. Using the concept of adaptive
management and working closely with the USFWS, the Company evaluated the feasibility of fish passage at Cabinet Gorge and
Noxon Rapids. The results of these studies led, in part, to the decision to move forward with development of permanent facilities,
among other bull trout enhancement efforts. Parties to the CFSA are working to resolve several issues. The Company believes its
ongoing efforts through the CFSA continue to effectively address issues related to bull trout. Avista Corp. cannot at this time predict
the outcome or estimate a range of costs associated with this contingency; however, the Company will continue to seek recovery,
through the ratemaking process, of all operating and capitalized costs related to fish passage at Cabinet Gorge and Noxon Rapids.
C o I lective B arg aini ng A g ree mcnts
The Company's collective bargaining agreements with the IBEW represent approximately 45 percent of all of Avista Corp.'s
employees. A new three-year agreement with the local union in Washington and Idaho representing the majority (approximately 90
percent) of the Avista Corp.'s bargaining unit employees was approved in March 2016 and expires in March 2019.
A three-year agreement in Oregon, which covers approximately 50 employees was set to expire in March 2017. A new three-year
agreement has been approved by the IBEW membership that will expire in March 2020.lt is still awaiting approval from the National
IBEW.
There is a risk that ifcollective bargaining agreements expire and new agreements are not reached in each ofourjurisdictions,
employees could strike. Given the magnitude of employees that are covered by collective bargaining agreements, this could result in
disruptions of our operations. However, the Company believes that the possibility of this occurring is remote.
Other Contingencies
In the normal course of business, the Company has various other legal claims and contingent matters outstanding. The Company
believes that any ultimate liability arising from these actions will not have a material impact on its financial condition, results of
operations or cash flows. It is possible that a change could occur in the Company's estimates of the probability or amount of a liability
being incuned. Such a change, should it occur, could be significant.
The Company routinely assesses, based on studies, expert analyses and legal reviews, its contingencies, obligations and commitments
for remediation of contaminated sites, including assessments of ranges and probabilities of recoveries from other responsible parties
who either have or have not agreed to a settlement as well as recoveries from insurance carriers. The Company's policy is to accrue
and charge to current expense identified exposures related to environmental remediation sites based on estimates of investigation,
cleanup and monitoring costs to be incurred. For matters that affect Avista Corp.'s or AEL&P's operations, the Company seeks, to the
FERC FORM NO. 2/3-Q (REV 12-07}122.37
Name of Respondent
Avista Comoration
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03131t2017
Year/Period of Report
2016/Q4
Notes to Financia! Statements
extent appropriate, recovery ofincurred costs through the ratemaking process.
The Company has potential liabilities under the Endangered Species Act for species of fish, plants and wildlife that have either
already been added to the endangered species list, listed as "threatened" or petitioned for listing. Thus far, measures adopted and
implemented have had minimal impact on the Company. However, the Company will continue to seek recovery, through the
ratemaking process, ofall operating and capitalized costs related to these issues.
Under the federal licenses for its hydroelectric projects, the Company is obligated to protect its property rights, including water rights.
In addition, the company holds additional non-hydro water rights. The state of Montana is examining the status of all water right
claims within state boundaries through a general adjudication. Claims within the Clark Fork River basin could adversely affect the
energy production of the Company's Cabinet Gorge and Noxon Rapids hydroelectric facilities. The state of Idaho has initiated
adjudication in northern Idaho, which will ultimately include the lower Clark Fork River, the Spokane River and the Coeur d'Alene
basin. The Company is and will continue to be a participant in these and any other relevant adjudication processes. The complexity of
such adjudications makes each unlikely to be concluded in the foreseeable future. As such, it is not possible for the Company to
estimate the impact of any outcome at this time. The Company will continue to seek recovery, through the ratemaking process, of all
operating and capitalized costs related to this issue.
NOTE 17. REGULATORY MATTERS
Power Cost Defenals and Recovery Mechanisms
Deferred power supply costs are recorded as a deferred charge on the Balance Sheets for future prudence review and recovery through
retail rates. The power supply costs deferred include certain differences between actual net power supply costs incurred by Avista
Corp. and the costs included in base retail rates. This difference in net power supply costs primarily results from changes in:
r short-term wholesale market prices and sales and purchase volumes,
o the level and availability ofhydroelectric generation,
r the level and availability of thermal generation (including changes in fuel prices), and
o retail loads.
In Washington, the ERM allows Avista Corp. to periodically increase or decrease electric rates with UTC approval to reflect changes
in power supply costs. The ERM is an accounting method used to track certain differences between actual power supply costs, net of
wholesale sales and sales of fuel, and the amount included in base retail rates for Washington customers. The Washington ERM
calculation is subject to certain deadbands and sharing bands. For 2016,the Company recognized a pre-tax benefit of $5.1 million
under the ERM in Washington compared to a benefit of $6.3 million for 2015. Total net deferred power costs under the ERM were a
liability of $21.3 million as of December 31,2016 compared to a liability of $18.0 million as of December 31,2075, and these
deferred power cost balances represent amounts due to customers.
Avista Corp. has a PCA mechanism in Idaho that allows it to modify electric rates on October I of each year with IPUC approval.
Under the PCA mechanism, Avista Corp. defers 90 percent of the difference between certain actual net power supply expenses and
the amount included in base retail rates for its Idaho customers. The October I rate adjustments recover or rebate power costs deferred
during the preceding July-June twelve-month period. Total net power supply costs deferred under the PCA mechanism were a liability
of $2.2 million as of December 31,2016 compared to an asset of $0.2 million as of December 31,2015.
Natural Gas Cost Deferrals and Recovery Mechanisms
Avista Corp. files a PGA in all three states it serves to adjust natural gas rates for: l) estimated commodity and pipeline transportation
FERC FORM NO. 2/3-Q (REV 12-07)'122.38
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
costs to serve natural gas customers for the coming year, and 2) the difference between actual and estimated commodity and
transportation costs for the prior year. Total net deferred natural gas costs to be refunded to customers were a liability of $30.8 million
as of December37,2016 compared to a liability of $17.9 million as of December 31,2015.
Decoupling and Earnings Sharing Mechanisms
Decoupling is a mechanism designed to sever the link between a utility's revenues and consumers'energy usage. In each of Avista
Corp.'s jurisdictions, each month Avista Corp.'s electric and natural gas revenues are adjusted so as to be based on the number of
customers in certain customer rate classes, rather than KWh and therm sales. The difference between revenues based on the number of
customers and revenues based on actual usage is deferred and either surcharged or rebated to customers beginning in the following
year.
llashington Decoupling and Earnings Sharing
In Washington, the UTC approved the Company's decoupling mechanisms for electric and natural gas for a five-year period
beginning January 1,2015. Electric and natural gas decoupling surcharge rate adjustments to customers are Iimited to 3 percent on an
annual basis, with any remaining surcharge balance carried forward for recovery in a future period. There is no limit on the level of
rebate rate adjustments.
The electric and natural gas decoupling mechanisms each include an after-the-fact eamings test. At the end of each calendar year,
separate electric and natural gas eamings calculations will be made for the prior calendar year. These earnings tests will reflect actual
decoupled revenues, normalized power supply costs and other normalizing adjustments. See below for a summary of cumulative
balances under the decoupling and earnings sharing mechanisms.
Idqho Fixed Cost Adjustment (FCA) and Earnings Sharing Mechanisms
In Idaho, the IPUC approved the implementation of FCAs for electric and natural gas (similar in operation and effect to the
Washington decoupling mechanisms) for an initial term of three years, beginning January 1,2016.
For the period 201 3 through 20 I 5 the Company had an after-the-fact earnings test, such that if Avista Corp., on a consolidated basis
for electric and natural gas operations in Idaho, earned more than a 9.8 percent ROE, the Company was required to share with
customers 50 percent of any earnings above the 9.8 percent. There was no provision for a surcharge to customers if the Company's
ROE was less than 9.8 percent. This after-the-fact eamings test was discontinued as part of the settlement of the Company's 2015
Idaho electric and natural gas general rates cases. See below for a summary of cumulative balances under the decoupling and eamings
sharing mechanisms.
Ore gon Dec oupling Mec hqnism
In February 2016, the OPUC approved the implementation of a decoupling mechanism for natural gas, similar to the Washington and
Idaho mechanisms described above. The decoupling mechanism became effective on March 1,2016 and there will be an oppornrnity
for interested parties to review the mechanism and recommend changes, if any, by September 2019. An earnings review is conducted
on an annual basis, which is filed by the Company with the OPUC on or before June 1 of each year for the prior calendar year. In the
annual earnings review, if the Company e.uns more than 100 basis points above its allowed retum on equity, one-third of the earnings
above the 100 basis points would be deferred and later returned to customers. The earnings review is separate from the decoupling
mechanism and was in place prior to decoupling. See below for a summary of cumulative balances under the decoupling and eamings
sharing mechanisms.
Cumulative Decoupling and Earnings Sharing Mechanism Balances
FERC FORM NO. 2/3-Q 1 122.39
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
2016/Q4
Notes to Financial Statements
As of December 31, 2016 and December 31,2015, the Company had the following cumulative balances outstanding related to
decoupling and earnings sharing mechanisms in its various jurisdictions (dollars in thousands):
December 3 l,
2016
December 3 l,
2015
Washington
Decoupling surcharge
Provision for earnings sharing rebate
Idaho
Decoupling surcharge
Provision for earnings sharing rebate
Oregon
Decoupling surcharge
Provision for earnings sharing rebate
Cash paid for interest
Cash received for income taxes, net
$
$
30,408 $
(5,1 1 3)
8,292
(5,1 84)
10,933
(3,422)
n/a
(8,814)
$ 2,027 n/a
(n/a) This mechanism did not exist during this time period.
NOTE 18. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information consisted of the following items for the years ended December 31 (dollars in thousands):
2016 2015
$79,183 $
(14,624)
72,405
(10,506)
FERC FORM NO. 2/3-Q (REV 12-07)122.40
Name ot Responoent
Avista Corporation
I nts
(1)
(2)
KeDOn ts:
fiRn originat
[lA Resubmission
UAIC OI KCDON(Mo, Da, Yi)
o3t31t2017
Yeaflrenoo or Keport
End of !!l!@[
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion
Line Item Total Company
For the Cunent
QuarterfYear
No.(a)
1 UTILITY PLANT
2 ln Service
3 Plant in Service (Classified)5,288,471,667
4 Property Under Capital Leases 5,8/3,742
5 Plant Purchased or Sold
b Completed Construction not Classifi ed
7 Experimental Plant Unclassified
I TOTAL Utility Plant (Total of lines 3 thru 7)5,294,315,409
I Leased to Others
10 Held for Future Use 9,941,983
11 Construction Work in Progress 144,751,274
12 Acquisition Adjustments
13 TOTAL Utility Plant (Total of lines 8 thru 12)5,449,008,666
14 Accumulated Provisions for Depreciation, Amortization, & Depletion 1,770,511,420
15 Net Utility Plant (Total of lines 13 and 14)3,678,497,246
'16 DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17 ln Service:
18 Depreciation 1,70't,243,278
'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 Utility Plant 69,268,142
22 TOTAL ln Service (Total of lines 18 thru 21)1,770,511,420
23 Leased to Others
24 Depreciation
25 Amortization and Depletion
26 TOTAL Leased to Others (Total of lines 24 and 25)
27 Held for Future Use
28 Depreciation
29 Amortization
30 TOTAL Held for Future Use (Total of lines 28 and 29)
3'l Abandonment of Leases (Natural Gas)
32 Amortizatlon of Plant Acquisition Adjustment
33 TOTAL Accum. Provisions (Should agree with line '14 above)(Total of lines 22,26,30,31, and 32)1,770,511,420
FERC FORM NO.2 (12-96)Page 200
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn ortginat
nA Resubmission
Date of Report
(Mo, Da, Yr)
03t3'u2017
Year/Period of Report
End of p!@[
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued)
Line
No
Electric
(c)
Gas
(d)
Other (speciff)
(e)
Common
(0
1
2
3 3,782,482,769 't,041,145,791 464,8r'.3,107
4 289,388 2543*5,300,000
5
6
7
8 3,782,772,157 1,041,400,145 470,143,107
9
10 9,751 ,398 190,585
11 82,968,637 7,987,8't7 53,794,820
12
13 3,875,492,192 1,049,578,547 523,937,927
14 1 ,313,645,015 337,046,928 119,819,477
'15 2,561 ,847,',177 712,531 ,619 404,1 1 8,450
16
17
18 1,294,760,452 335,655,367 70,827,459
19
20
21 18,884,562 1,391,561 48,992,019
22 1,313,645,014 337,046,928 1 19,81 9,478
23
24
25
26
27
28
29
30
3'l
32
33 1 ,31 3,645,014 337,046,928 1 19,81 9,478
FERC FORM NO.2 (12-96)Page 201
Name ol Kesponqenl
Avista Corporation
lnrs
(1)
(2)
Heoon ls:
finn originat
llA Resubmission
uate ot Kepon(Mo, Da, Yr)
03t3112017
YearHenoo ot t(epon
End of ![!flQ[
Gas Plant in Service (Accounts 101,102,'103, and 106)
1 . Report below the original cost of gas plant in service according to the prescribed accounts.
2. ln addition to Account 101, Gas Plant in Service (Classified), this page and the next include Account 102, Gas Plant Purchased or Sold, Account
103, Experimental Gas Plant Unclassified, and Account 106, Completed Construction Not Classified-Gas.
3. lnclude in column (c) and (d), as appropriate conections of additions and retirements for the current or preceding year.
4. Enclose in parenthesis credit adjustments ofplant accounts to indicate the negative effect ofsuch accounts.
5. Classify Account 106 according to prescribed accounts, on an
estimated basis if necessary, and include the entries in column (c).Also to be included in column (c) are entries for reversals of tentative distributions of
prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary
accounts 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. lnclude also in column (d) reversals of tentative distributions of prior year's unclassified retirements
Attach supplemental statement showing the accrunt distributions of these tentative classifications in columns (c) and (d),
Line
No.
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
1 INTANGIBLE PLANT
2 301 Organization
3 3O2 Franchises and Consents
4 303 MiscellaneouslntangiblePlant 4,470,328 ( 583,192)
5 TOTAL lntangible Plant (Enter Total of lines 2 thru 4)4,470,328 ( 583,192)
6 PRODUCTION PTANT
7 Natural Gas Production and Gatherinq Plant
8 325.1 Producing Lands
I 325.2 Producing Leaseholds
10 325.3 Gas Rights
11 325.4 Riqhts-of-Way
12 325.5 Other Land and Land Rights
13 326 Gas Well Structures
14 327 Field Compressor Station Structures
15 328 Field Measurinq and Regulatinq 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 Drilling and Cleaning Equipment
23 336 PurificationEquipment
24 337 Other Equipment
25 338 Unsuccessful Exploration and Development Costs
26 339 Asset Retirement Cosls 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 Riqhts
30 U1 Structures and lmprovements
31 342 Extrac{ion and Refining Equipment
32 U3 Pipe Lines
33 344 Extracted Produc{s Storaqe Equipment
FERC FORM NO.2 (12-96)Page 204
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat
(21 nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Gas Plant in Service (Accounts 10'1,'i.02,103, 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
Account 1 01 and 106 will 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 utility plant accounts. lnclude also in column (0 the additions or reductions of primary account
classifications arising from distribution of amounts initially recorded in Account 102. ln showing the clearance of Accounl 102, include in column (e) the
amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offset to the debits or credits
to primary account classifications.
7. For Account 399, state the nature and use of plant included in this accounl and if substantial in amount submit a supplementary statement showing
subaccount classification of such plant conforming to the requirements of these pages.
8. ForeachamountcomprisingthereportedbalanceandchangesinAccountl02,statethepropertypurchasedorsold,nameofvendororpurchaser,
and date of transaction. lf proposed joumal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of such
filins.
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(q)
1
2
3
4 415,249 3,471,887
5 415,249 3,471,887
6
7
8
I
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 (12-95)Page 205
Avista Corporation (1)
(2)
Original
.Resubmission
ljate ot Heport
(Mo, Da, Yr)
o3t31t2017
Year/Penod ot Report
End of !Ql!/Q[
Gas Plant in Service (Accounts 101, 102, 1 03, and '106) (continued)
Line
No.
Account
(a)
Balance at
Beginning ofYear
(b)
Additions
(c)
34 345 CompressorEquipment
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 7,628
41 TOTAL Production Plant (Enter Total of lines 39 and 40)7.628
42 NATURAL GAS STORAGE AND PROCESSING PLANT
43 Underground Storage Plant
44 350.1 Land 407,111 806,641
45 350.2 Rishts-of-Way 59,812
46 351 Structures and lmprovements 1,906,462 194,889
47 352 Wells 't3,904,797 194,889
48 352.1 Storage Leaseholds and Rights 254,354
49 352.2 Reservoirs 1,667,492
50 352.3 Non-recoverable Natural Gas 5,810,31 1
51 353 Lines 1 ,1 06,781
52 354 Compressor Station Equipment 14,876,708 194,890
53 355 Other Equipment 683,40'l 194,890
54 356 PurificationEquipment 403,712
55 357 Other Equipment 1,998,758 194,889
56 358 Asset Retirement Costs for Underground Storage Plant
57 TOTAL Underground Storage Plant (Enter Total of lines 44 thru 43,079,699 1,781,088
58 Other Storage Plant
59 360 Land and Land Rights
60 361 Structures and lmprovements
61 362 Gas Holders
62 363 PurificationEquipment
63 363.1 Liquefaction Equipment
64 363.2 Vaporizing Equipment
65 363.3 Compressor Equipment
66 363.4 Measuring and Regulatinq 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 lmprovements
73 364.3 LNG Processing Terminal Equipment
74 364.4 LNG Transportation Equipment
75 364.5 Measuring and Requlatinq 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 Nat'l Gas, Terminaling and Processing
FERC FORM NO.2 (12-96)Page 206
Name of Respondent
Avista Corporation
This
(1)
(2')
Reoort
8an
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Gas Plant in Service (Accounts 101, 102, '103, and 106) (continued)
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(fl
Balance at
End ofYear
(s)
34
35
36
37
38
39
40 7,628
41 7,628
42
43
M 1,213,752
45 59,812
46 2,101 ,351
47 169,344 13,930,342
48 254,354
49 1,667,492
50 5,810,31 1
51 1,106,781
52 15,071 ,598
53 878,291
il 403,712
55 14,677 2,178,970
56
57 184,021 44,676,766
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
FERC FORM NO.2 (12-96)Page 207
Name oI Kesponoent
Avista Corporation
lnrs
(1)
(2)
Keoon ls:
[]nn originat
[lA Resubmission
uale oI Kepon(Mo, Da, Yr)
03t31t2017
YearHenoo oI Kepon
End of 2016/Q4
Gas Plant in Service (Accounts 101, 102, 't03, and 106) (continued)
Line
No.
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
81 TOTAL Nat'l Gas Storage and Processing Plant (Total of lines 57,43,079,699 1,781,088
82 TRANSMISSION PLAN
83 365.1 Land and Land Rights
u 365.2 Rights-of-Way
85 366 Structures and lmprovements
86 367 Mains
87 368 Compressor Station Equipment
88 369 Measuring and Regulating Station Equipment
89 370 CommunicationEquipment
90 371 Other Equipment
9'l 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 886,774
95 375 Structures and lmprovements 1,329,682 ( 14,729)
96 376 Mains 462,357,449 43,326,258
97 377 Compressor Station Equipment
98 378 Measuring and Regulating Station Equipment-General 10,715,743 419,258
99 379 Measuring and Regulating Station Equipment-City Gate 9,354,043 ( 488,377)
t00 380 Services 277,347,039 28,469,585
t01 381 Meters 111,868,077 7,083j44
t02 382 Meter lnstallations
t03 383 House Regulators
t04 384 House Regulator lnstallations
t0s 385 lndustrial Measuring and Regulating Station Equipment 4,932,890 ( 21,525\
t06 386 Other Property on Customers'Premises
t07 387 Other Equipment 539
t08 388 Asset Retirement Costs for Distribution Plant
t00 TOTAL Distribution Plant (Enter Total of lines 94 thru 108)878,792,236 78,773,614
t10 GENERAL PLANT
I 1'l 389 Land and Land Rights 1,325,709
t12 390 Structures and lmprovements 5,848,464 ( 7,508)
t13 391 Office Fumiture and Equipment 634,332 19,922
114 392 Transportation Equipment 14,217,573 2,69s,887
t15 393 Stores Equipment 141,498 3,888
t16 394 Tools, Shop, and Garage Equipment 6,265,019 741,307
t17 395 LaboratoryEquipment 431,414
t18 396 Power Operated Equipment 4,700,726 148,016
r19 397 CommunicationEquipment 3,469,372 19,966
120 398 MiscellaneousEquipment 2,367
t21 Subtotal (EnterTotal oflines 111 thru 120)37,036,474 3,621,478
122 399 Other Tangible Property
123 399.1 Asset Retirement Costs for General Plant
124 TOTAL General Plant (Enter Total of lines 121,122 and 123)37,036,474 3,621 ,478
125 TOTAL (Accounts 101 and 106)963,386,365 83,592,988
126 Gas Plant Purchased (See lnstruc{ion 8)
127 (Less) Gas Plant Sold (See lnstruclion 8)
128 Experimental Gas Plant Unclassifi ed
I29 TOTAL Gas Plant ln Service (Enter Total of lines 125 thru 128)963,386,365 83,592,988
FERC FORM NO.2 (12-96)Page 2OB
Name of Respondent
Avista Corporation
This Reoort ls:(1) []nn orlginat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of {l!@[
Gas Plant in Service (Accounts 10'1,'102,'103, and 106) (continued)
Line
No
Retirements
(d)
Adjustments
(e)
Transfers
(0
Balance at
End ofYear
(q)
8'r 184,021 44,676,766
82
83
84
85
86
87
88
89
90
91
92
93
94 886,774
95 4,154 1,310,799
96 1,665,979 504,017,728
v/
98 18,404 11,116,597
99 33,383 74,303 8,906,586
r00 348,90'l 305,467,723
t01 't,466,84'1 117,484,380
t02
t03
r04
r05 4,911,365
r06
107 539
t08
r09 3,537,662 74,303 954,102,491
t10
I1l 124,007 't,449,716
t12 5,858 2,741 5,837,839
r13 32,672 621,582
114 605,297 48,353 16,356,516
115 145,386
116 107,147 6,899,179
117 88,948 342,466
118 654,749 ( 1 13,443)4,080,550
r't9 9,002 ( 74,563)3,405,773
120 2,367
121 1,503,673 ( 12,905)39,141 ,374
122
t23
124 1,503,673 ( 12,905)39,141,374
125 5,640,605 61,398 1 ,041 ,400,146
126
127
128
129 5,&0,605 61,398 1,041,400,146
FERC FORM NO.2 (12-e6)Page 209
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lllAn Original
nA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !!!!/Q[
Gas Plant Held for Future Use (Account 105)
1. Report separately each property held for future use at end of the year having an original cost of $1 ,000,000 or more. Group other
items of property held for future use.
2. For property having an original cost of $1 ,000,000 or more previously used in utility operations, now held for future use, give in
column (a), in addition to other required information, the date that utility use of such property was discontinued, and the date the original
cost was transferred to Account 105.
Line
No
Description and Location
of Property
(a)
Date Originally lncluded
in this Account
(b)
Date Expected to be Used
in Utility Service
(c)
Balance at
End of Year
(d)
1 Gas Distribution Mains and Services 03t01t2007 190.585
2 located in Coeur d'Alene, ldaho
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3'l
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total 190,585
FERC FORM NO.2 (12-96)Page 214
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDorl
Enn
ls:
Original
nA Resubmission
Date of ReDort(Mo, Da, Yi)
o3t3112017
Year/Period of Reporl
End of 2016/Q4
Construction Work in Pfogress-Gas (Account 107)
1. Report below descriptions and balances at end of year of projects in process of construction (Account 107).
2. Show items relating to "research, development, and demonstration" projects last, under a caption Research, Development,
and Demonstration (see Account 107 of the Uniform System of Accounts).
3. Minor projects (less than $1,000,000) may be grouped.
Line
No.
Description of Project
(a)
Construction Work in
Progress-Gas
(Account 107)
(b)
Estimated Additional
Cost of Project
(c)
1 Gas HP Pipeline Remediation Program 2,346,405
2 Dollar Rd Service Center Addition and Remodel 2,110,929
3 Minor Projects under $1,000,000 3,530,483 112,640,000
4
5
6 Notes
7 Estimated additional cost amounts represent a five year
8 budget total.
I
10
11
12
13
14
15
16
't7
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
M
45 Total 7,987,817 I 1 2,540,000
FERC FORM NO.2 (12-s6)Page 216
Name of Respondent
Avista Comoration
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
0313112017
Year/Period of Report
2016/Q4
General Description of Construction Overhead Procedure
1 . For each construc{ion overhead explain: (a) the nature and extent of work, etc., the overhead charges are intended to cover, (b) the general
procedure for determining the amount capitalized, (c) the method of distribution to construction jobs, (d) whether difierent rates are applied to
different types of construction, (e) basis of differentiation in rates for different types of construction, and (f) whether the overhead is directly or
indireclly assigned.
2. Show below the computation of allowance for funds used during construction rates, in accordance with the provisions of Gas Plant
lnstructions 3 (17) of the Uniform System of Accounts.
3. \Mrere a net-of-tax rate for bonowed funds is used, show the appropriate tax effec{ adjustment to the computations below in a manner that
clearly indicates the amount of reduction in the gross rate for tax effec{s.
Construction costs with a direct relationship to new construction and capital replacement activities that cannot be clearly
identified with specific projects are charged to overhead pools. The established pools are:o Construction Overhead North Gas. Construction Overhead South Gas
Poolcosts are allocated monthly to gas construction p@ects on a percent rate applied to direct project costs, excluding
AFUDC. Each pool's rate is calculated separately and applied only to the related gas construction projects for allocation.
Allowance for Funds Used During Construction is calculated system wide using a rate that is equivalent to the allowed
rate of return approved in the latest rate order from the company's primary state commission (Washington State). For
2016, Avista used a rate of 7.29o/o which is the allowed Rate of Return contained in the Washington Utilities and
Transportation Commission Final Order 05 dated January 6, 2016 for consolidated dockets UE-150204 and UG-150205.
FERC FORM NO.2 218.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lllAn Original
l-lA Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
End of pl!/Q[
General Description of Construction Overhead Procedure (continued)
COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES
1. For line (5), column (d) belon, enter the rate granted in the last rate proceeding. lf not available, use he average rate eamed during the preceding 3 years.
2. ldentify, in a footnote, the specific entity used as the source for the capital structure figures.
3. lndicate, in a foohote, if the reported rate of retum is one that has been approved in a rate case, black-box settlement rate, or an actual three-year average rate.
1. Components of Formula (Derived from ac{ual book balances and ac{ual cost rates):
Line
No.
Title
(a)
Amount
(b)
Capitalization
Ration (percent)
(c)
C6t Rate
Percentage
(d)
(1) Average Short-Term Debt S
(2) Short-Term lnterest s
(3) Long-Term Debt D d
(4) Preferred Stock P p
(5) Common Equity C c
(6) Total Capitalization
(7)Average Construction Work ln Progress Balance W
2. Gross Rate for Borrowed Funds s(SAM1 + d(D(D+P+C)) (1-(S/VV))]
3. Rate for Other Funds t1-(S/WI [p(P/(D+P+C)) + C(C/(D+P+C))]
4. Weighted Average Rate Actually Used for the Year:
a. Rate for Bonowed Funds -
b. Rate for Other Funds -
2.65
4.il
FERC FORM NO.2 (REV 12-07)Page 218a
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
EIen
ls:
Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
End of @1
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108)
1. Explain in a footnote any lmportant 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 property.
3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. lf 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. ln addition, include all costs included in retirement work in progress at year end in the appropriate functional
classifications.
4. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
5. AtlinesTand14,addrowsasnecessarytoreportall data. Additional rowsshouldbenumberedinsequence,e.g.,T.0l ,7.02,etc.
Line
No.
Item
(a)
Total
(c+d+e)
(b)
Gas Plant in
Service
(c)
Gas Plant Held
for Future Use
(d)
Gas Plant Leased
to Others
(e)
Section A. BALANCES AND CHANGES DURING YEAR
Balance Beginning of Year 316,058,414 316,0s8,414
2 Depreciation Provisions for Year, Charged to
3 (403) Depreciation Expense 22,966,032 22,966,032
4 (403.1 ) Depreciation Expense for Asset Retirement Costs
5 (41 3) Expense of Gas Plant Leased to Others
o Transportation Expenses - Clearing 1,934,53i 1,934,s37
7 Other Clearing Accounts
8 Other Clearing (Specify) (footnote details):
9
't0 TOTAL Deprec. Prov. for Year (Tohl of lines 3 hru 8)24,900,569 24,900,569
11 Net Charges for Plant Retired:
12 Book Cost of Plant Retired ( 4,618,982)( 4,618,982)
'13 Cost of Removal ( 83,181)( 83,181)
14 Salvage (Credit)I 09,1 10 109,1 10
15 TOTAL Net Chrgs for Plant Ret. (Total of lines 12 thru 14)( 4,811,273)( 4,811,2731
16 Oher Debit or Credit ltems (Describe) (footnote details):( 492,343)
17
18 Book Cost of Asset Retirement Costs
19 Balance End of Year (Total of lines 1,10,15,16 and 18)335,65s,367 335,655,367
Section B. BALANCES AT END 0F YEAR ACCORDING TO FUNCTIONAL
CLASSIFICATIONS
21 Productions-Manufacfu red Gas
22 Production and Gathering-Natural Gas
23 Products Extraction-Natural Gas
24 Underground Gas Storage
25 Other Storage Plant 1 5,483,1 92 15,483,192
26 Base Load LNG Terminaling and Processing Plant
27 Transmission
28 Distribution 304,045,605 304,045,60s
29 General 16,126,570 1 6,1 26,570
30 TOTAL (Total of lines 21 thru 29)335,655,367 335,655,367
FERC FORM NO.2 (12-96)Page 219
Name of Respondent
Avista Comoration
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t20'17
Year/Period of Report
2016/Q4
FOOTNOTE DATA
Schedule Paoe:219 Line No.: 16 Column: c
Schedule Page:219 Line No. 16
Change in RemovalWork in Progress ($492,343)
FERC FORM NO.2 fi2-96)Paoe 552.1
This Page Intentionalty Left Blank
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2) l--lA Resubmission
Date of Report
(Mo, Da, Yr)
03t31120'17
Year/Period of Report
End of 2016/Q4
Gas Stored (Accounts 117.1,117.2, 1'17.3, 117.4,164.1,164.2, and 164.3)
1. lf during the year adjustments were made to the stored gas inventory reported in columns (d), (0, (S), and (h) (such as to conect cumulative inaccuracies oi
gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and accounl charged or credited.
2. Report in column (e) all encroachments during the year upon the volumes designated as base gas, column (b), and system balancing gas, column (c), and
gas property recordable in the plant accounts.
3. State in a footnote the basis of segregation of invenlory between current and noncunent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
_tn(
No
Description
(a)
(Account
117.'.!)
(b)
(Account
117.2)
(c)
Noncunent
(Account
1',t7.3)
(d)
(Account
117 .4)
(e)
Cunent
(Account
164.1)
(0
LNG
(Account
164.2)
(s)
LNG
(Account
164.3)
(h)
Total
(i)
1 Salance at Beginning of 6,992,07(12,n4,48'19,766,563
2 3as Delivered to Storage 18,187,4s:'t8,187,452
J 3as Withdrawn fmm 22,932,91 22,932,919
4 f,ther Debits and Credits
5 3alance at End of Year 6,992,07(8,029,02r 15,021,096
6 lfi 1,2s3,06(4,631,09:5,881,152
7 {mount Per Dlh 5.580(1.733 2.5528
FERC FORM NO.2 (REV 04{,41 Page 220
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
lnvestments (Account 123,124, and 136)
1. ReportbelowinvestmentsinAccounbl23,lnvestmentsinAssociatedCompanies,l24,Oherlnvesunents,andl36,TemporaryCashlnvestments.
2. Provide a subheading for eadr account and list thereunder he information called for:
Temporary Cash lnvestmenB, also may be grouped by classes.
subject to current repayment in Account 145 and '146. Wih respec{ to each advance, shor whether fie advance is a note or open account
Line
No
Description of lnvestment
(a)(b)
Book Cost at Beginning of Year
(lf book cost is different from
cost to respondent, give cost to
respondent in a footnote and
explain difierence)
(c)
Purchases or
Additions
During he Year
(d)
1 lnvestment in Spokane Energy (123000)
2 lnvestment in Avista Capital ll (123010)11,547,000
3 Oher lnvestment - WZN Loans Sandpoint (124350)59,355
4 Ofier lnvestment - Coli Cash Value (124600)19,717,504
5 Oher lnvestrment - Coli Bonowings (124610)( 19,717,504\
6 Other lnvestment - WZN Loans Oregon (124680)23,541
7 Ofier lnvestment - WNP3 Exchange Power (124900)79,626,000
8 Ofier lnvestment - AMT WNP3 Exchange (124930)( 70,642,947\
I Temp Cash lnvestmenh (136000)22,854
10 Energy Commodity Contract (1 24020)14,694,374
11 Ofier InvestrnenlNon Affilicated LT Note Rec
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
v
35
36
37
38
39
40
FERC FORM NO.2 (12-96)Page 222
Name of Respondent
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 03t31t2017
Year/Period of Report
End of 2016/Q4
lnvestments (Account '123, 124, and 136) (continued)
3. Designate with an asterisk in column (b) any securities, notes or accounts hat were pledged, and in a footnote state the name of pledges and purpose of the pledge.
number.
5. Report in column (h) interest and dividend revenues fiom invesfnenb including sudt revenues hom securities disposed of during the year.
in the books of account if different from cost) and the selling price thereof, not including any dividend or interest adjustrnent indudible in column (h).
Line
No.
Sales or Other
Dispositions
During Year
(e)
Principal Amount or
No. of Shares at
End of Year
(0
Book Cost at End of Year
(lf book cost is different tom cost
to respondent, giye cost to
respondent in a footnote and
explain difference)
(s)
Revenues hr
Year
(h)
Gain or Loss fom
lnvestnent
Disposed of
(i)
1
2 11,547,000
3 59,355
4 ( 1,990,408)21,707,912
5 1,990,408 ( 21,707,912)
6 2,568 20,973
7 79,626,000
8 2,450,031 ( 73,092,978)
o 22,8U
10 14,694,374
11 ( 331,835)331,835
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
?o
40
FERC FORM NO.2 (12-96)Page 223
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]nn orisinal
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !pl!@[
lnvestments in Subsidiary Companies (Account 123.1)
1. Report below investments in Account 123.1, lnvestrents in Subsidiary Companies.
2. Provide a subheading for each company and list thereunder the information called for below. Sub{otal by company and give a total in columns (e), (0, (g) and (h).
(a) lnvestment in Securities-List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate.
to each advance shotv whether the advance is a note or open account. List each note giving date of issuance, maturity date, and specifying whether note is a renewal.
3. Reportseparatelytheequityinundistributedsubsidiaryeamingssinceacquisition. Thetotal incolumn(e) shouldequal heamountenteredfotAccount4lS.l.
Line
No.
Description of lnveshent
(a)
Date
Acquired
(b)
Date of
Maturity
(c)
Amount of
lnvestment at
Beginning ofYear
(d)
1 lnvestment in Avista Capital 01to'U1997 206,138,971
2 Avista Capital - Equity in Earnings ( 144,02'.t,712)
3 lnvestment in AERC 07t0112014 89,816,380
4 AERC- Equity in Earnings 5,58 t ,641
5
6
7
I
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 157,515,280
FERC FORM NO.2 (12-96)Page 224
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn originat
[-]A Resubmission
Date of Report(Mo, Da, Yr)
03131t2017
Year/Period of Report
End of 2816/Q[
lnvestments in Subsidiary Gompanies (Account 123.1) (continued)
4. Designate in a foohote, any securities, notes, or accounts hat were pledged, and state the name of pledgee and purpose of the pledge.
doc*et number.
6. Report in column (f) interest and dividend revenues from investments, including such revenues from securities disposed of during the year.
canied in the books of account if different from cost), and the selling price thereof, not induding interest adjustnents indudible in column (f).
8. Report on Line 40, column (a) the total cost of Account 123.1.
Line
No.
Equity in Subsidiary
Eamings for Year
(e)
Revenues for Year
0
Amount of lnvestment
at End of Year
G)
Gain or Loss from
lnvestment
Disposed of
0)
1 206,138,971
2 ( 1,433,856)( 145,455,568)
3 89,816,380
4 7,722,732 2.000.000 11,304,373
5
6
7
I
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
u
35
36
37
38
39
40 6,288,876 2,000,000 161,804,156
FERC FORM NO.2 (12-96)Page 225
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
o3t3112017
Year/Period of Report
End of !@Q[
Prepayments (Acct 1 65), Extraordinary Property Losses (Acct 1 82.1 ), Unrecovered Plant and Regulatory Study Costs (Acct 1 82.2)
PREPAYMENTS (ACCOUNT 1 65)
'1. Report below the particulars (details) on each prepayment.
Line
No
Nature of Payment
(a)
Balance at End
of Year
(in dollars)
(b)
I Prepaid lnsurance '1,507,107
2 Prepaid Rents
3 Prepaid Taxes
4 Prepaid lnterest
5 Miscellaneous Pre0ayments 12,952,128
6 TOTAL 14,459,235
FERC FORM NO.2 (12-96)Page 230a
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoorl ls:
fiRn original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of 4_!31Q4
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 accounts).
2. For regulatory assets being amortized, show period of amortization in column (a).
3. Minor items (570 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 "Defened 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.9. Commission Order, state
commission order, court decision).
Line
No
Desoiption and Purpose of
Ofier Regulatory Asseb
(a)
Balance at
Beginning
Cunent
Quarter/Year
(b)
Debits
(c)
Written off During
Quarterffear
Acoount
Charged
(d)
Written ofi
During Period
Amount Recovered
(e)
Written off
During Poiod
Amount Deemed
Unrecoverable
(0
Balance at End of
Cunent
QuarterfYear
(s)
1 WA Excess Nat Gas Line Extension Allowance 1,M,028 1,444,028
2 Reg Asset Post Ret Liab 235,m8,848 s,105,058 240,1 13,90€
3 Regulatory Asset FAS 109 Utility Plant 42,1U,242 s6,282,20a 98,386,44i
4 Regulatory Asset FAS109 DSIT Non Plant 51,827,593 283 50,774,151 1,053,442
5 Regulatory Asset FAS109 DFIT State Tax Cr 4,652,121 283 4,652,121
6 Regulatory Asset FAS109 WNP3 2,703,891 283 737,482 1,966,40!
7 Regulatory Asset-Spokane River Relicense 386,1 54 407 78,73e 307,418
8 Regulatory Asset-Spokane River PM&E 35s,9m 557 73,312 282,638
I Regulatory Asset-Lake CDA Fund 8,804,404 407 211,06!8,593,339
10 Regulatory Asset-Lake CDA IPA Fund 2,000,000 2,000,00c
11 Regulatory Asset-Spokane River TDG ldaho 468,893 407 117,223 351,67C
12 Reg Assets-Decoupling Surcharge 5,640 I 1,828,86C 11,834,50C
13 Regulatory Asset-Lake CDA DEF Costs 1,244,703 407 32,719 1,211,W
14 DEF CS2 & COLSTRIP 4,8n,29t 407 2,151,630 2,671,668
15 Commodity MTM St Regulatory Asset 17,2ffi,1n 244 s,89s,08s 1 1,365,088
't6 Commodity MTM Lt Regulatory Asset 32,419,72i 244 15,5m,51S 16,919,204
17 Regulatory Asset FAS143 Asset Retirement
Obligation 2,875,89t 49s,83i 3,371,735
18 Reg Asset AN-CDA Lake Settement 33,632,09(407 884,086 32,748,004
19 Reg Asset WA-CDA Lake Sefilement 747,91(407 1 52,1 18 595,798
20 Regulatuy Asset Workers Comp 2,0/.7,831 407 835,020 1,212,812
21 Regulatory Asset lD PCA Defenal 1 932,88;557 932,88i
22 Spokane River TDG 580,78t 407 290,395 290,394
23 Settled lnterest Rate Swap Asset 40,786,51i s1,092,09s 91,878,61 I
24 DSM Asset 3,167,51t 12502,131 15,669,651
25 Unsettled lnterest Rate Swaps Asset 83,972,ni 245 14,343,183 69,629,594
26 Defened ITC 8,481,28(8,481,289
27 Other Reg Assets 221,214 2*136,431 u,782
28
29
30
31
32
33
34
35
36
37
38
39
40 Total 573,031,07[117,231,ilt 97,798,167 822,1&4,111
FERC FORM NO. 2/3Q (REV 12{7)Page 232
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 03t31t2017
Year/Period of Reporl
End of !,Ql!/Q[
Miscellaneous D0ferred Debits (Account 186)
1. Report below the details called for concerning miscellaneous defened debits.
2. For any defened debit being amortized, show period of amortization in column (a)
3. Minor items (less than $250,000) may be grouped by classes.
Line
No.
Description of Miscellaneous
Defened Debits
(a)
Balance at
Beginning
of Year
(b)
Debits
(c)
Credih
Account
Charged
(d)
Credits
Amount
(e)
Balance at
End of Year
(0
1
2 Colstrip Common Fac.'t,1 10,999 406 1,1 10,999
3 Regulatory Asset-Mt Lease Pymt 270,513 540 270,513
4 Regulatory Asset-Mt Lease Pymt 676,584 540 676,584
5 Colstrip Common Fac.2,3s5,U2 2,355,U2
6 Prepaid plane Lease LT-3 yr amort 441,966 196,429 245,537
7 Misc DD- Airplane Lease-3yr amort 515,400 229,067 286,333
I Plant Alloc of Clearing Jrl 1,888,049 1,632,106 3,520,155
9 Misc Posting Suspense 1 15,295 169,179 VAR 2U,474
10 Renewable Energy-Cert Fees 21,750 557 21,750
't'l Nez Perce Settlement 145,1 13 557 5,212 1 39,901
12 Reg Asset lD-Lake CDA- 10 yr amort 147,131 506 30,975 '116,156
13 Credit Union Labor & Expense 62,978 M,379 107,357
14 Misc Work Orders <$50,000 ( 92,021)VAR 395,354 ( 487,375)
15 Subsidiary Billings 471,651 VAR 44,658 426,993
't6 Misc Defened Debits WA)16,568 1,405,199 ( 1,388,631)
17 Regulatory Assets Consv 2,1il,581 1,1 12,190 1,042,391
18 Reg Asset-Decoupling deferred 13,305,979 19,8/,6,22s 33,152,2M
19 Optional \Mnd Power ( 206,235)271,s53 65,31 8
20 Gas Telemetry equip 4,823 651 4,172
21 Defened Project Compass (lD) 4 yr 3,346,902 836,726 2,510,176
22 Saddle Mounlain East Trans Line 5,929 s3,265 59,194
23 AMI Suspense SA Base Chg out 299,407 299,407
24
25
26
27
28
29
30
31
32
33u
35
36
37
38
39 Miscellaneous Work in Progress
{0 Total 26,759,597 22,316,111 5,225,308 13,850,403
FERC FORM NO.2 (12-s6)Page 233
Name of Respondent
Avista Corporation
This
(1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of pl!/Q[
Accumulated Deferred lncome Taxes (Account 190)
1. Report he information called for below conceming the respondent's accounting for defened inmme taxes.
2, At Other (Specifr), include deferrals relating to other income and deduc{ons.
3. Provide in a footnote a summary of the type and amount of defened income taxes reported in the beginning-of-year and end-oflear balances for defened income
taxes that the respondent estimates could be included in the development ofjurisdictional recourse rates.
Line
No.
Account Subdivisiofls
(a)
Balance at
Beginning
of Year
(b)
Changes During
Year
Amounts Debited
to Account 410.1
(c)
Changes During
Year
Amornb Credited
to Account 41 1.1
(d)
1 Account 190
2 Electric 10,573,200
3 Gas 750,527
4 O$er (Define) (footnote details)124,712,392
5 Total (Total of lines 2 thru 4)136,036,'119
b Oher (Specify) (footnote details)
7 TOTAL Account 1 90 (Total of lines 5 thru 6)136,036,1 19
8 Classification of TOTAL
I Federal lncome Tax '136,036,119
10 State lncome Tax
11 Local lncome Tax
FERC FORM NO.2 (REV 12-07)Page 234
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
8nn
ls:
Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t3't2017
Year/Period of Report
End of p!@[
Accumulated Deferred lncome Taxes (Account 190) (continued)
Line
No.
Changes During
Year
Amounts Debited
to Account 410.2
(e)
Changes During
Year
Amounts Credited
to AccNnt 4'11.2
0
Adjusfnents
Debih
Account No.
(q)
Adjustrnents
Debib
Amount
(h)
AdjusEnents
Credits
Account No.
(i)
Adjusbnents
Credih
Amount
fi)
Balance at
End of Year
(k)
1
2 ( 8,988,638)19,561,838
3 ( 1,817,652)2,568,179
4 ( sl2,298)125,224,690
5 ( 11,318,588)147,3il,707
o
7 ( 11,318,588)147,3il,707
I
I ( 11,318,588)147,3il,707
10
11
FERC FORM NO.2 (REV 12-07)Page 235
Name
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 03131t2017
Year/Period of Report
End of 2016/Q4
Capital Stock (Accounts 201 and 204)
prefened stock.
2. Enbies in column (b) shwld represent the number of shares authorized by he articles of incorporation as amended to end of year.
3. Give details conceming shares of any class and saies of stock authorized to be issued by a regulatory commission which have not yet been issued.
Line
No.
Class and Series of Stoc* and
Name of Stock Exchange
(a)
Number of Shares
Auhorized by Charter
(b)
Par or Stated Value
per Share
(c)
Call Price at
End of Year
(d)
1 Acct. 201 - Common Stock lssued:
2 No Par Value 200,000,000
3 Restriced shares
4 TOTAL Common 200,000,000
5
o
7 Aoount 2M - Preferred Stock lssued 10,000,000
8
I Total Prefened 10,000,000
10
11
12
13
14
't5
'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 (12-95)Page 250
Name of Respondent
Avista Corporation
This
(1)
(2',)
Reoort ls:
lllAn Original
l-|A Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Capital Stock (Accounts 201 and 2041
4. The identification of each class of prefened stock should show the dividend rate and wheher the dividends are cumulative or nonomulative.
5. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year.
purpose of pledge.
Line
No
Outstanding per Bal. Sheet
(total amt outstanding
without reduction for amts
held by respondent)
Shares
(e)
Outstanding per Bal.
Sheet
Amount
(0
Held by
Respondent
As Reacquired
Stock (Accl 217)
Shares
(s)
Held by
Respondent
As Reacquired
Stock (Acct 217)
Cost
(h)
Held by
Respondent
ln Sinking and
Other Funds
Shares
(i)
Held by
Respondent
ln Sinking and
Other Funds
Amount
fi)
1
2 64,187,934 1,052,578,756 4,'127,608.00
3
4 64,187,934 1,052,578,756 109,806.00 4,1 27,608.00
5
6
7
8
I
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-s6)Page 251
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ) A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
FOOTNOTE DATA
Schedule Pase:250 Line No.:2 Column: i
Restricted share awards vest in equal thirds each year over a three-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 service condition, the Company must meet a return on equity target
in order for the CEO's restricted shares to vest. Restricted stock is valued at the close of market of the Company's common stock on
the grant date.
FERC FORM NO.2 (12-96)Paoe 552.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
IX,lAn Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of 2016/Q4
Other PaidJn Capital (Accounts 208-21'l)
1 . Report below the balance at the end of the year and the information specified below for the respective other paid-in capital accounts.
Provide a subheading for each account and show a total for the account, as well as a total of all accounts for reconciliation with the
balance sheet, page 1 12. Explain changes made in any account during the year and give the accounting entries effecting such change.
(a) Donations Received from Stockholders (Account 208) - State amount and briefly 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
rise 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-ln Capital (Account 21 1) - Classiff amounts included in this account according to captions that, together with
brief explanations, disclose the general nature of the transactions that gave rise to the reported amounts.
Line
No.
Item
(a)
Amount
(b)
1 Equity Transactions of Subsidiaries ( 9,506,476)
2
3
4
5
6
7
8
I
10
1',!
12
13
14
15
16
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
JI
38
39
40 Total ( 9,s06,476)
FERC FORM NO.2 (12-96)Page 253
Avista Corporation (1)
(2)
Original
Resubmission
Date ot Report
(Mo, Da, Yr)
o3t31t2017
Year/Period ot Report
End of 2016/Q4
DlscouNT oN GAPITAL STOCK (ACCOUNT 213)
'1. Repoil he balance at end of year of discount on capital stock for eadr class and series of capital stock. Use as many rows as necessary to report all data.
during he year and specify the account charged.
Line
No
Class and Series of Stock
(a)
Balance at
End ofYear
(b)
1
2
3
4
5
6
8
I
10
11
12
13
14
TOTAL
CAPITAL STOCK EXPENSE (ACCOUNT 214)
'1. Report he balance at end of year of capital stock expenses for each class and series of capital stock. Use as many rows as necessary to report all data. Number he rows in
sequence stsrting fiom the last rol number used br Discornt on Capital Stock above.
of capital stock expense and specify the account charged.
Line
No
Class and Series of Stock
(a)
Balance at
End ofYear
(b)
16 Common Stock - no par
17
18
19
20
21
22
23
24
25
26
27
28
TOTAL ( 32,208,n1)
FERC FORM NO.2 (12-96)Page 2il
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
FOOTNOTE DATA
9chedule Pase:2il Line No.:16 Column: b
Beginning Balance
lssuance of Common Stock
Payment of Minimum Tax \A/ithholdings
for Share-Based Payment awards
Vested Stock Compensation
Stock Compensation Accrual
Ending Balance
$
$
(29,238,213)
1,022,242
$
$
3,072,433
(31,835,414)
$(32,208,771)
FERC FORM NO.2 fi2-96)Page 552.1
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
Securities lssued or Assumed and Securities Refunded or Retired During the Year
1. Furnish a supplemental statement briefly describing security financing and refinancing transactions during the year and the accounting for the
securities, discounts, premiums, expenses, and related gains or losses. ldentify as to Commission authorization numbers and dates.
2. Provide details showing the full accounting for the total principal amount, par value, or stated value of each class and series of security
issued, assumed, retired, or refunded and the accounting for premiums, discounts, expenses, and gains or losses relating lo the securities. Set
forth the facts of the accounting clearly with regard to redemption premiums, unamortized discounts, expenses, and gain or losses relating to
securities retired or refunded, including the accounting for such amounts canied in the respondent's accounts at the date of the refunding or
refinancing transactions with respect to securities previously refunded or retired.
3. lnclude in the identification of each class and series of security, as appropriate, the interest or dividend rate, nominal date of issuance,
maturity date, aggregate principal amount, par value or stated value, and number of shares. Give also the issuance of redemption price and
name of the principal underwriting firm through which the security transactions were consummated.
4. Where the accounting for amounts relating to securities refunded or retired is other than that specified in General lnstruction 17 of the Uniform
System of Accounts, cite the Commission authorization for the different accounting and state the accounting method.
5. For securities assumed, give the name of the company for which the liability on the securities was assumed as well as details of the
transaclions whereby the respondenl undertook to pay obligations of another company. lf any unamortized discount, premiums, expenses, and
gains or losses were taken over onto the respondent's books, fumish details of these amounts with amounts relating to refunded securities clearly
earmarked.
ln December 2016, Avista Corp. issued and sold $175.0 million of 3.54 percent first mortgage
bonds due in 2051 pursuant to a bond purchase agreement with institutional investors in the
private placement market. The total net proceeds from the sale of the bonds were used to
repay the $70.0 million term loan discussed above and to repay a portion of the borrowings
outstanding under the Company's $400.0 million committed line of credit. ln connection with
the execution of the bond purchase agreement, the Company cash-settled seven interest rate
swap derivatives (notional aggregate amount of $125.0 million) and paid a total of $54.0
million.
The new issuance is based on the following state commission orders:1. Order of the Washington Utilities and Transportation Commission entered July 13,2011,
as amended on August24,2011 in Docket No. U-111176 and in Docket No. UE-151822, entered
October 29,2015;
2. Order of the ldaho Public Utilities Commission, Order No. 32338, entered August 25,2011
and Order No. 33401, entered October 23,2015;
3. Order of the Public Utility Commission of Oregon, Order No. 15305, entered October 6,
2015;
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
ln March 2016, the Company entered into four separate sales agency agreements under which Avista
Corp.'s sales agents may offer and sell up to 3.8 million new shares of Avista Corp.'s common stock,
no par value, from time to time. The sales agency agreements expire on February 29,2020.|n 2016,
1.6 million shares were issued under these agreements resulting in total net proceeds of $65.3
million, leaving 2.2million shares remaining to be issued.
ln 2016, the Company also issued $1.7 million (net of issuance costs) of common stock under the
employee plans.
FERC FORM NO.2 255.1
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of pl@{
Long-Term Debt (Accounts 221,222, 223, and 2241
224, Other Long-Term Debt.
2. For bonds assumed by the respondenl indude in olumn (a) the name of the issuing company as well as a description of the bonds.
3. For Advances fiom Associated Companies, report separately advances on notes and advan@s on open accounts. Designate demand notes as such. lnclude in column (a) names of
associated companies from whidr advances were received,
4. For receivers' certilicates, sho,v in column (a) he name of he court and date of court order under whici such certificates were issued.
Line
No
Class and Series of Obligation and
Name of Stock Exchange
(a)
Nominal Date
of lssue
(b)
Date of
Maturity
(c)
Outstanding
(Total amount
outstanding without
reduction for amts
held by respondent)
(d)
1 FMBS - SERTES A - 7.s3% DUE 05t05t2023 05/06/1 993 05t05t2023 s,500,000
2 FMBS . SERIES A . 7.54YO DUE O5IO5I20,23 05/07/1 993 05t05t2023 1,000,000
3 FMBS - SERTES A - 7.39% DUE 05/1 1/2018 05/1 1 /1 993 05t11t2018 7,000,000
4 FMBS - SERTES A - 7.45% DUE 06/11/20't8 06/09/1 993 06111t2018 1s,500,000
5 FMBS . SERIES A - 7,18"/O DUE OA 1 1 DO23 oBt12t't993 08t11t2023 7,000,000
b
7 06/03/1997 06t01t2037 5'1,547,000
8 FMBS - 6.37010 SERIES C 06/1 9/1 998 06t19t2028 25,000,000
o FMBS.5.45% SERIES 1111812004 12t0112019 90,000,000
'10 FMBS - 6.25% SERIES 11t17 t2005 12101t2035 150,000,000
11 FMBS.5.7OOIO SERIES 12t',t5t2006 07t01t2037 150,000,000
12 FMBS.5.95% SERIES 04t02t2008 06/01/2018 250,000,000
't3 FMBS.5.125% SERIES 09t22t2009 04101t2022 2s0,000,000
14 12t15t2010 10t01t2032 66,700,000
15 12t15t2010 03to'u2034 1 7,000,000
16 FMBS - 3.89% SERIES 12t20t20't0 12t20t2020 52,000,000
17 FMBS - 5.55% SERIES 12t20t2010 't2t20t2040 35,000,000
18 4.450/o SERIES DUE 12-14-2041 12t14t2011 12t14t2041 85,000,000
19 4.230lo SERIES DUE 11-25-2047 1113012012 11t29t2047 80,000,000
20 FMBS - 4.1 1Ol" SERIES 12t1812014 12t01t2044 60,000,000
21 FMBS - 4.37% SERIES 12t16t2015 12t0112045 100,000,000
22 12t15t2016 12t01t2051 175,000,000
23
24
25
26
27
28
29
30
31
32
33
34
35
Jb
37
38
39
40 TOTAL 1,673,247,000
FERC FORM NO.2 (12-96)Page 256
of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
03t31t2017
Year/Period of Report
End of 2016/Q4
Long-Term Debt (Accou nts 221, 222, 223, and 2241
5. ln a supplemental statement, give explanatory details for Accounb 223 and 224 ol nel changes during the year. With respect to long{erm advances, show for each company: (a)
principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission auborization numbers and dates.
6. lf $e respondent has pledged any of ib long-term debt securities, give partiotlars (details) in a foohote, induding name
of he pledgee and purpose of he pledge.
7. lf the respondent has any long-term securities that have been nominally issued and are nominally outstanding at end of year, desoibe such se@rities in a footnote.
difference between tlre total of column (f) and tre total Account 427, lnterest on Long-Term Debt and Account 430, lnterest on Debt to Associated Companies.
9. Give details concerning any long-term debt authorized by a regulatory commission but not yet issued.
Line
No.
lnterest for
Year
Rate
(in 7d
(e)
lnterest for
Year
Amount
(f)
Held by
Respondent
Reacquired Bonds
(Acd222)
G)
Held by
Respondent
Sinking and
Ofier Funds
0)
Redemption Price
per $100 at
End of Year
(D
1 7.530 414,150
2 7.ilo 75,400
3 7.390 517,300
4 7.450 1,154,750
5 7.180 502,600
6
7 1.806 63/,,372
I 6.370 1,592,500
I 5.450 4,905,000
10 6.2s0 9,375,000
11 5.700 8,550,000
12 5.950 14,875,000
13 5.125 12,812,500
14 1.050 4U,176 66,700,000
15 1.050 123,403 17,000,000
16 3.890 2,022,800
17 5.550 't,942,500
18 4.450 3,782,500
'19 4.230 3,384,000
20 4.110 2,466,000
21 4.370 4,370,000
22 3.540 275,333
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 74,259,2U 83,700,000
FERC FORM NO.2 (12-96)Page 257
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
2016tQ4
FOOTNOTE DATA
256 Line No.:7 Column: a
Upon issuance Avista Capital II issued 1.5 million of Common Trust Secur .I t l-estot
Company. In December 2000, the Company purchased $10.0 mil-lion of these Preferred TrustSecurities. The interest for the year discfosed in column (i) refl-ects the net amount
owed to third rties.
256 Line No.: 14 Column: a
The Company reacquired this debt in 2010. These bonds have not been retired or canceled; the plans, based
on li needs and market to remarket these bonds at a future date.
The Company reacquired this debt in 2010. These bonds have not been retired or canceled;Company plans, based
onl needs and market conditions, to remarket these bonds at a future date.
The new issuance is based on the following state commission orders:1. Order of the Washington Utilities and Transportation Commission entered July 13,2011,
as amended on August24,2011 in Docket No. U-111176 and in Docket No. UE-151822, entered
October 29,2015:
2. Order of the ldaho Public Utilities Commission, Order No. 32338, entered August 25,2011
and Order No. 33401, entered October 23,2015;
3. Order of the Public Utility Commission of Oregon, Order No. 15305, entered October 6,
2015;
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
FERC FORM NO.2 fi2-96)Paqe 552.1
256 Line No.: 15 Column: a
256 Line No.: 22 Column: a
This Page fntentionally Left Blank
Name
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t3'u2017
Year/Period of Report
End of ZI!flQ!
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181,225,2261
1. Report under separate subheadings for Unamortized Debt Expense, Unamortized Premium on Long-Term Debt and Unamortized Discount on Long-Term Debt, details of expense,
premium or discount applicable to eadr class and series of long-term debt.
2. Shor premium amounts by enclosing the figures in parentheses.
3. ln column (b) show he principal amount of bonds or oher long-term debt originally issued.
4. ln column (c) shorv he expense, premium or discount with respect to the amount of bonds or otha long-term debt originally issued.
Line
No.
Designation of
Long-Term Debt
(a)
PrincipalAmount
of Debt lssued
(b)
Total Expense
Premium or
Discount
(c)
Amortization
Period
Date From
(d)
Amortization
Period
Date To
(e)
1 FMBS - SERIES A - 7.53% DUE 05/05/2023 5,500,000 42,712 05/06/1993 05/05/2023
2 FMBS - SERTES A - 7.5406 DUE 5t0512023 1,000,000 7,766 05/07/'1993 0s/05/2023
3 FMBS - SERIES A.7.39% DUE 511112018 7,000,000 54,364 05/1 1/1993 05t11t2018
4 FMBS - SERTES A - 7 .450/0 DUE 6t 1 1 t2018 15,500,000 170,597 06/09/'1993 06111t2018
5 FMBS . SERIES A . 7,18O/O DUE 81 1 1 12023 7,000,000 54,364 08/12/1993 08111t2023
6 ADVANCE ASSOCIATED-AVISTA CAPITAL ll (ToPRS)51,547,000 1,296,086 06/03/1 1 97 06Mt2037
7 FMBS - 6.370/o SERIES C 25,000,000 158,304 06/19/1998 06119t2028
8 FMBS.5.45% SERIES 90,000,000 1,432,081 11t18t20M 12Mt2019
I FMBS.6.25% SERIES 1 50,000,000 2,180,435 11t17t2005 12Mt2035
10 FMBS.5.70% SERIES 1 50,000,000 4,924,3U 12n5n006 07Mt2037
11 FMBS.5.95% SERIES 250,000,000 3,081,419 04n2t2008 06/0 1 /201 8
12 FMBS.5.125% SERIES 250,000,000 2,859,788 09t22t2009 04Mt2022
13 FMBS.3.89% SERIES 52,000,000 385,129 12120tzyA 12t20t2020
14 FMBS - 5.55% SERIES 35,000,000 2s8,834 12n0t2ua 12nU2040
't5 Short-Term Credit Facilig 4,635,960 12t14t2011 04118t2019
16 4.45% SERTES DUE 12-14-2M1 85,000,000 692,833 12114t2011 12114t2M1
17 4.23% SERTES DUE 11-29-2047 80,000,000 730,833 11t30t2012 11t29t2M7
18 4.11% Seires Due 12-1-2(44 60,000,000 428,205 1A18m14 12Mt2M4
19 4.3706 Series Due 12-1-N45 100,000,000 590,761 12n6m15 12Mm45
20 3.54% Series Due 12-1-2051 175,000,000 1415m16 12Mt2051
21 Rahrum 2005 7'1,646 0980/2005 12MtN35
22 Debt Strategies 858 08/01/2005 08rc1/2035
23 WKSI Shelf Registration Statement 16,064 03/01/2013 03/01/2018
24
25
26
27
28
29
30
31
32
33
v
35
36
37
38
39
40
FERC FORM NO.2 (12-95)Page 258
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!@[
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181, 225, 2261
date of he Commission's authorization of treatment other than as specified by the Uniform System of Accounts.
6. ldentiff separately undisposed amounts applicable to issues which were redeemed in prior years.
Debt-Credit
Line
No.
Balance at
Beginning
ofYear
(0
Debib During
Year
(s)
Credits During
Year
(h)
Balance at
End of Year
(D
1 10,559 1,424 9,135
2 1,920 259 '1,661
3 5,254 2,175 3,079
4 17,060 6,824 10,236
5 13,893 1,812 12,081
6 301,318 14,015 287,303
7 65,959 5,277 60,682
8 343,841 85,960 257,881
I 1 ,451,378 72,569 1,378,809
10 3,475,599 161,032 3,314,567
1'l 732,469 303,090 429,379
12 1,M1,216 227,561 1,213,65s
13 193,096 38,619 154,477
14 215,702 8,628 207,074
15 1,776,797 676,51 1 571,205 1,882,1 03
16 600,702 23jU 577,598
17 666,61s 20,886 645,729
18 414,779 14,878 399,901
19 s64,16s 26,597 19,417 571,345
20 1,001,382 1,001,382
21 47,371 2,368 45,003
22 s63 29 534
23 6,205 2,900 3,305
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
FERC FORM NO.2 (12-96)Page 259
Name of Respondent
.Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
FOOTNOTE DATA
258 Line No.:20 Column: c
Expenses may change as more invo related to this issuance become known
FERC FORM NO.2 552.',|
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
[]Rn originat
nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Unamortized Loss and Gain on Reacquired Debt (Accounts 189, 257)
1. Report under separate subheadings for Unamortized Loss and Unamortized Gain on Reacquired Debt, details of gain and loss,
including maturity date, on reacquisition applicable to each class and series of long-term debt. lf gain or loss resulted from a refunding
transaction, include also the maturity date of the new issue.
2. ln column (c) show the principal amount of bonds or other long-term debt reacquired.
3. ln column (d) show the net gain or net loss realized on each debt reacquisition as computed in accordance with General lnstruction
17 of the Uniform Systems of Accounts.
4. Show loss amounts by enclosing the figures in parentheses.
5. Explain in a footnote any debits and credits other than amortization debited to Account 428.1, Amortization of Loss on Reacquired
Debt, or credited to Account 429.1, Amortization of Gain on Reacquired Debt-Credit.
Line
No.
Designation of
Long-Term Debt
(a)
Date
Reacquired
(b)
Principal
of Debt
Reacquired
(c)
Net Gain or
Loss
(d)
Balance at
Beginning
of Year
(e)
Balance at
End ofYear
(0
,|Misc Debt Repurchases I 05/1 0/1 993 ( 4,695,39s1 ( 692,787)( 513,818)
2 ADVANCE ASSOCIATED.AVISTA CAPITAL II
OoPRS)12118t2000 10,000,000 1,769,'t25 1,M5,207 996,404
3 Misc 2002 Repurdase 12t31t2002 10,000,000 2,228,153 620,760 s68,668
4 Misc 2003 Repurchase 't2t31t2003 25,330,000 315,274 99,861 92,861
5 Misc 2004 Repurchase 't2t31t2004 36,590,000 ( 7,244,895"( 785,339)( 487,046)
6 Misc 2005 Repurchase 't2t31t2005 26,000,000 ( 1,700,3711 ( 637,031)( 602,027)
7 Misc 2006 Repurdrase 12t31t2006 6,87s,000 483,582 ( 32,733)( 16,i68)
I Misc 2008 Repurdase Ccts 12t31t2008 43,132 21,705 19,009
I AVA Capital Trust lll (2022)04101t2009 60,000,000 ( 2,875,817\,( 1,452,072)( 1,222,798)
10 COLSTRIP 2010A PCRBs DUE 2032 12t14t2010 66,700,000 ( 3,709,1741 ( 2,620,408)( 2,464,740)
11 COLSTRIP 20108 PCRBs DUE 2034 12114t2010 17,000,000 ( 1,916,2971 ( 1,501,969)( 1,419,475)
12 FMBS - 7.250/6 SERIES (2040)'t2t20t2010 30,000,000 ( 5,263,822"( 4,386,518)( 4,211,057)
13 FMBS - 6.125% SERTES (2020)12t20t2010 4s,000,000 ( 6,273,6M)( 3,136,832)( 2,509,466)
14 KETTLE FALLS P C REV BONDS DUE 14 (2047)06t28t2012 4,100,000 ( 10s,020)( 95,76s)( 92,768)
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3'1
32
33
34
35
36
37
38
39
40
FERC FORM NO.2 (12-96)Page 260
Avista Corporation (1)
(2)
Original
Resubmission
Date ot Report
(Mo, Da, Yr)
03t3112017
Year/Period of Reporl
End of 2016/Q4
Reconciliation of Reported Net lncome with Taxable lncome for Feder lncome Taxes
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal lncome Tax accruals
and show computation of such tax accruals. lnclude in the reconciliation, as far as practicable, the same detail as furnished on Schedule
M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. lndicate clearly the
nature of each reconciling amount.
2. lf 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 filed, 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
No
Details
(a)
Amount
(b)
1 Net lncome for the Year (Page 116)137,228,107
2 Reconciling ltems for the Year
3
4 Taxable lncome Not Reported on Books
5 5,326,302
6
7
I TOTAL 5,326,302
9 Deductions Recorded on Books Not Deducted for Relum
10 ( 2,613,289)
11 lncome Tax Expense 74,121,263
12
13 TOTAL 71,507,974
14 lncome Recorded on Books Not lncluded in Retum
15 ( 39,942,100)
16
17
18 TOTAL ( 39,942,100)
19 Deductions on Return Not Charged Against Book lncome
20 ( 2il,132,226)
21
22
23 Equity in Sub Eamings ( 6,288,876)
24 Corporate Overhead Unallocated Subs 2,385,355
25
26 TOTAL ( 258,035,747)
27 Federal Tax Net lncome ( 83,915,464)
28 Show Computation of Tax:
29 State Tax 379,481
30 Federal Tax Net lncome, less state tax ( 83,535,983)
31 Federal fax@35%( 29,237,594)
32 Nine Mile ITC ( 19,418,459)
33 Prior years true ups and misc adjustments 1,414,639
34 Cabinet Gorge tax credits ( 166,884)
35 Total Federal Tax Expense ( 47,408,298)
FERC FORM NO.2 (12-96)Page 261
Name of Respondent
Avista Corporation
This
(1)
(2t
Reoort ls:
fiRn ortginat
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
sales taxes whidr have been charged to the accounts to which he taxed material was charged. lf the actual or estimated amounts of such taxes are known, show the amounts in a
foohote and designate wheher estimated or actual amounb.
balancing ofthis
page is not affecled by the inclusion of these taxes.
3. lnclude in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounh credlted to the
portion of prepaid taxes charged to current year, and (c) taxes paid and charged direcl to operations or accounts oher han accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in sudr manner that the total tax for ead State and subdivision can readily be ascertained.
Line
No.
Kind of Tax
(See lnstruction 5)
(a)
Balance at
Beg. ofYear
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
1 FEDERAL:
2 lncome Tax 2013 806,204
3 lncome Tax 2014 514,866
4 lncome Tax 2015 ( 18,877,196)
5 lncome Tax (Cunent)
6 Prior Retained Earnings (201 3)( 483,2571
7 Prior Retained Eaminos (2015)( 1,920,588)
8 Cunent Retained Eamings
I Total Federal ( 19,959,971)
10
11 STATE OF WASHINGTON
12 Property Tax (2014)
'13 Property Tax (2015)1 5,559,562
14 Property Tax (2016)
15 Excise Tax (2014)
16 Excise Tax (2015)2,706,5M
17 Excise Tax (20'16)
18 Natural Gas Use Tax 537
't9 Municipal Occupation Tax 2,902,651
20 Community Solar 1
21 Sales & Use Tax (2014)v4
22 Sales & Use Tax (2015)127,828
23 Sales & Use Tax (20 16)
24 Totrl Washington 21,188,412
25
26 STATE OF IDAHO:
27 lnome Tax (2013)41,220
28 lnome Tax (2014)
29 lnome Tax (2015)57
30 lnome Tax (2016)
31 Property Tax (2014)52,403
32 Property Tax (2015)3,557,972
33 Property Tax (2016)
u Sales & Use Tax (2015)12,7U
35 Sales & Use Tax (20 1 6)
36 KWH Tax (2015)24,195
37 KWH Tax (2016)
38 Franchise Tax (2015)1,526,981
39 Franchise Fee (2016)
FERC FORM NO.2 (REV 12-07)Page 262a
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
l-lA Resubmission
Date of Reoort
(Mo, Da, Yi)
03t31t2017
Year/Period of Report
End of 4l3lQl
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
5. lf any tax (exclude Federal and State income taxes) covers moe han one year, shor he required inbrmation separately for eadt tax year, identiffing he year in olumn (a).
6. Enter all adjustrnents of he accrued and prepaid tax accounts in column (f) and explain each adiusbnent in a footnote. Designate debit adjustmenb by parentheses.
authority.
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more han one utility department or account, state in a foohote he basis (necessity) of apportioning sud tax.
1 0. ltems under $250,000 may be grouped.
'| 1. Report in column (q) he applicable efieclive state income tax rate.
Line
No
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustnents
(0
Balance at
End ofYear
Taxes Acoued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lncluded in Acct 165)
(h)
1
2 806,204
3 32s,206 u0,072
4 1IU,007 ( 19,013,777)( 1,920,588)
5 ( 40,949,517)4,378,957 ( 45,328,474)
6 ( 483,257)
7 1,920,588
8 ( 3,371,2821 ( 3,371,282)
9 ( 42,211,586)( 14,634,820)( 47,536,737)
10
11
12 ( 15,470)( 18,813)1
13 271,617 15,837,020 ( 5,841)
14 16,219,999 16,2'19,999
15 1
'16 ( 7,150)2,699,353 ( 1)
17 26,587,557 22,789,011 3,798,546
18 3,569 3,452 654
19 23,1't5,318 23,09s,318 1 2,522,652
20 ( 615,995)( 696,1s1)( 25,513)
21 u4
22 127,828
23 1,124,451 967,442 '157,008
24 66,683,896 M,804,804 2 23,067,505
25
26
27 ( 100,982)( 142,202)
28 270 141,932
29 530,100 ( 215,096)( 687,891)
30 51 '1,938 500,000 1 1,938
31 ( s2,002l.401
32 3,557,985 ( 13)
33 7,145,215 3,572,839 3,572,375
v 12,7U
35 360,849 337,305 23,il4
36 824 25,019
37 414,153 383,274 30,880
38 1,526,982 1 1
39 4,440,675 2,951,606 1,489,069
FERC FORM NO.2 (REV 12-07)Page 263a
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn originat
nA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 4l!/Ql
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
sales taxes which have been charged to he accounb to which he taxed material was charged. lf he actual or estimated amounts of such taxes are known, shoir the amounts in a
foohote and designate whether estimated or actual amounB.
2. lnclude on this page, taxes paid during the year and charged direct to fnal accounts, (not charged to prepaid or acoued taxes). Enter he amounts in both columns (d) and (e). The
balancing of this .
page is not afiected by the inclusion of these taxes.
3. lnclude in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounb credited to the
portion of prepaid taxes charged to cunent year, and (c) taxes paid and charged direcl to operations or accounts oher han accrued and prepaid tax accounts.
4. List $e aggregate of each kind of tax in sudr manner that he total tax for each State and subdivision can readily be ascertained.
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Elecfic
(Account 408.1,
409.1 )
(D
Gas
(Account 408.1,
409.1 )
0
Other Utilig Dept.
(Account 408.1,
409. I )
(k)
Other lncome and
Deductions
(Account 408.2,
409.2)
(t)
I
2
3 325,206
4 ( 5,173,655)7,356,217
5 ( 34,563,043)( 5,452,168)( 10,735,729)
b
7
8
s ( 39,41 1,492)( s,452,168)( 3,379,s12)
10
11
12 ( 23,2741 952 6,8s2
13 626,771 ( 374,926)19,772
14 1 3,3s7,998 2,826,001 36,355
15
16 ( 12,176\( 1,869)6,895
17 20,023,590 5,499,149 112,573
18 3,569
19 '17,746,956 5,188,440
20
21
22
23
24 51,723,4U 13,137,747 182,447
25
26
27
28
29 ( 65,276)( 16,319)
30 435,148 76,791
31 ( 43,579)( 3,651)( 4,772\
32 4,564
33 5,694,596 1,470,048 10,575
u
35
36 824
37 414,863
38
3S 3,352,949 1,064,090
FERC FORM NO.2 (REV 12{7)Page 262b
Name Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
5. lf any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identitying the year in column (a).
6. Enter all adjustments of he accrued and prepaid tax accounts in column (f) and explain each adjustment in a foolnote. Designate debit adjustmenb by parentheses.
authority.
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more han one utility department or account, state in a foohote the basis (necessity) of apportioning such tax,
'10. ltems under $250,000 may be grouped.
'l 1. Report in column (q) the applicable effective state income tax rate
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No
Extraordinary ltems
(Account 409.3)
(m)
Oher Utility Opn.
lncome
(Account 408.1,
409.1 )
(n)
Adjustment to Ret.
Earnings
(Account 439)
(o)
Other
(p)
State/l-ocal
lncome Tax
Rate
(q)
1
2
3
4 ( 398,s55)
5 9,801,424
6
7
I ( 3,371,2821
I 6,03 1,s87
10
11
12
13
14 ( 355)
15
16
17 952,245
18
19 179,922
20 ( 61s,995)
21
22
23 1,124,451
24 1,640,268
25
zo
27
28 270
29 61 1,695
30 ( 1)
31
32 ( 4,564)
33 ( 30,005)
34
35 360,849
36
37 ( 710)
38
39 23,637
FERC FORM NO.2 (REV 12-07)Page 263b
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lI_lAn Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !pl!@[
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Kind of Tax
(See lnstruction 5)
(a)
Balance at
Beg. ofYear
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
1 Total ldaho 5,0'16,048
2
3 STATE OF MONTANA
4 lncome Tax (20'14)
5 lncome Tax (201 5)( 413,607)
6 lncome Tax (2016)
7 Property Tax (2014)9,257
8 Property Tax (2015)4,233,693
I Property Tax (2016)
10 Colstrip Generation Tax
11 KWH Tax (2015)240,112
12 KWH Tax (2016)
13 Consumer Council Fee 23
14 Public Commission Fee 60
15 Total Montana 3,994,588
16
17 STATE OF OREGON
18 lnome Tax (2014)1
19 lnome Tax (2015)( 378,037)
20 Property Tax (20'15)
21 Prooerty Tax (20'16)
22 BETC Credit (2010)( 17,483)
23 BETC Credit (20'11)( 2e,e62)
24 BETC Credit (2012)( 57,78e)
25 Glendale Requlatory Cr. 2009 34,91
26 Franchise Fee (2015)920,340
27 Franchise Fee (2016)
28 Total Oregon ( 2,420,6911
29
30 STATE OF CALIFORNIA
31 lncome Tax (20'16)
32 Total California
33
34 MISCELLANEOUS STATES:
35 lncome Tax (2013)1
36 lnome Tax (2014)28,632
37 lncome Tax (2015)
38 Total Misc States
39
FERC FORM NO.2 (REV 12-07)Page 262a.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn orisinal(2) llA Resubmission
Date of Reoort(Mo, Da, Yi)
03t31t2017
Year/Period of Report
End of ry!!/gl
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustrnents
0
Balance at
End of Year
Taxes Accrued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lncluded in Accl 165)
(h)
1 13,352,0n 12,552,117 ( 688,160)5,127,794
2
3
4 233,6U ( 74,9s0)( 233,684)
5 ( 1 1,057)119,714 ( 304,950)
b 118,720 118,720
7 ( 9,257)
I ( 422,070)3,81 '1,623
I 9,750,999 4,886,505 4,864,493
10 3,686 3,686
11 240,112
12 1,079,381 804,965 274,416
13 (3)45 36 11
14 112 93 ( 36)43
15 10,744,195 9,672,079 ( 113.970)4,952,733
16
17
'18 ( 100,000)
19 378,036 2 1
20 2,722,U9
21 2,&il,826 5,709,6s3 ( 2,854,826)
22 ( 17,483)
23 ( 2e,962)
24 ( s7,789)
25 ( 34,91 1)
26 ( 338)920,001
27 3,448,708 2,519,669 929,039
28 9,404,081 9,049,323 2 ( 2,065,931)
29
30
3t 1,600 ( 1,600)
32 1,600 ( 1,600)
33
34
35 ( 1)
36 28,632
37 ( 155,403)802,132
38 ( 155,403)802,131 28,632
39
FERC FORM NO.2 (REV 12-07)Page 263a.'l
Name of Respondent
Avista Corporation
This
(1)
(2)
Reood ls:
fiRn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of ]QMQ[
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 utility department where applicable and account charged.)
Line
No
Electric
(Account 408,1,
409.1 )
(D
Gas
(Account 408.1,
409.1)
0
Other Utility Dept.
(Account 408.1,
409.1 )
(k)
Other lncome and
Deductions
(Account 408.2,
409.2)
(t)
1 9,794,089 2,590,959 5,803
2
3
4
5 ( 1 1,057)
6 118,720
7 ( 9,257)
I ( 422,0701
I 9,750,999
10 3,686
11
12 1,079,381
13 (3)
14 112
15 10,5't0,511
16
17
18
19 ( 781)( 2,v2\
20 1,358,912 1,363,937
2',1 1.262.714 1,592,072
22
23
24
25
26
27 3,421,688
28 2,620,885 6,375,355
29
30
31
32
33
u
35
36
37 ( '155303)
38 ( 1s5,403)
39
FERC FORM NO.2 (REV 12-07)Page 262b.1
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
End of &lgg[
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Extraordinary ltems
(Account 409.3)
(m)
Ofier Utility Opn
lncome
(Account 408.1,
40e.1)
(n)
Adjustment to Ret.
Eamings
(Account 439)
(o)
Other
(p)
State/Local
lncome Tax
Rate
G)
1 961,1 71
2
3
4 233,684
5
o
7
8
9
10
11
12
13
14
15 233,684
16
17
18
19 381,1 59
20
21
22
23
24
25
26 ( 338)
27 27,020
28 407,Ul
29
30
31
32
33
34
35
36
37
38
39
FERC FORM NO.2 (REV 12-07)Page 263b.1
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
Enn
IS:
Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of zElli/az[
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Kind of Tax
(See lnstruction 5)
(a)
Balance at
Beg. ofYear
Taxes Accrued
(b)
Balance at
Beg. ofYear
Prepaid Taxes
(c)
1 COI.JNTY & MUNICIPAL
2 WA Renewable Energy ( s61)
3 Vehicle Excise Tax 2015
4 Misc.939
5 Total County ( 13,472)
6
7
I
o
10
11
12
'13
14
'15
'16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
TOTAL 7,186,818
FERC FORM NO.2 (REV 12-07)Page 262a.2
Respondent
Avista Corporation (1)
(2)
An Original
Resubmission
Date of Report(Mo, Da, Yr)
o3t31t2017
Year/Period of Report
End of !!l!@[
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustnents
(0
Balance at
End of Year
Taxes Accrued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lnduded in Acct 165)
0)
1
2 ( s44,804)( 539,726)( 5,638)
3 1 3,850
4 58,508 57,495 3)1,949
5 ( 472,446\( 482,2311 3)( 3,689)
6
7
I
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL 57,344,759 80,962,872 2 ( 16,431,293)
FERC FORM NO.2 (REV 12-07)Page 263a.2
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
Enn
ls:
Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !Ql!/Q[
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 utility department where applicable and account charged.)
Line
No.
Electric
(Account 408.1,
409.1)
(i)
Gas
(Account 408.1,
409.1 )
0)
Other Utility Dept.
(Account 408.1,
409.1)
(k)
Other lncome and
Deductions
(Account 408.2,
409.2)
(t)
I
2 561
3
4 3,304
5 3,865
6
7
8
o
10
11
12
13
14
'15
16
17
18
't9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL 3s,237,427 16,651,893 ( 3,342,800)
FERC FORM NO.2 (REV 12-07)Page 262b.2
Name of Respondent
Avista Corporation
s
(1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2!l!lQll
Taies Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Exbaordinary ltems
(Account 409.3)
(m)
Oher Utility Opn.
lncome
(Account 408.1,
409.1 )
(n)
Adjustment to Ret.
Eamings
(Account 439)
(o)
Olher
(p)
State/Local
lncome Tan
Rate
(q)
1
2 ( 545,365)
3 13,850
4 55,204
5 ( 476,31't)
b
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
to
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL 8,798,240
FERC FORM NO.2 (REV 12-07)Page 263b.2
Name of Respondent
Avista Corporation
This
(1)
(2)
s:
Original
Resubmission
Date ol Report
(Mo, Da, Yr)
03t31t2017
Year/Period ot Report
End of 2016/Q4
Miscellaneous Current and Accrued Liabilities (Account 242)
1 . Describe and report the amount of other current and accrued liabilities at the end of year
2. Minor items (less than $250,000) may be grouped under appropriate title.
Line
No.
Item
(a)
Balance at
End ofYear
(b)
1 242050- Margin Call Deposit 2,270,000
2 242060- Forest Use Permits 3,022,955
3 2423OO- FERC Admin Fee Acc 500,000
4 242310-FERC Elec Admin Chg 141,667
5 242375- MT Lease Payments 4,618,600
6 242700-Payroll EQLZTN 19,394,131
7 242770-Low lncome Energy Assit 2,463,360
8 242780- Avista Grants Eng Sustain 35,437
9 242790- Mobius 50,000
10 242830- Workers Comp Liability 1,212,8',t2
11 24291 O-Accts payable Expense Accrual 3,034,342
12 242999- Current Portion Benefit Liability 10,993,908
13 Misc Liabilities 10,330,879
14
15
'16
17
18
19 2
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 58,068,093
FERC FORM NO.2 (12-96)Page 268
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]nn originat
f-lA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of 2016/Q4
Other Deferred Credits (Account 253)
1. Report below the details called for conceming other defened credits.
2. For any deferred credit being amortized, show the period of amortization.
3. Minor items (less than $250,000) may be grouped by classes.
Line
No.Description of Other
Defened Credits
(a)
Balance at
Beginning
of Year
(b)
Debit
Contra
Account
(c)
Debit
Amount
(d)
Credits
(e)
Balance at
End of Year
(f)
,|Defer Gas Exchange (253028)1,1 25,000 1,1 25,000
2 Rathdrum Refund (253120)138,1 10 550 33,822 104,288
3 NE Tank Spill (253130)3,230 3,230
4 Bills Pole Rentals (253140)184,401 4il 21,459 162,942
5 cR-cs2 GE LTSA (253150)
6 Credit Resource Actg
7 DOC EECE Grant 17,918 7,910 25328
I Defer Comp Retired Execs (253900)
I Defer Comp Active Execs (253910)8,093,780 426 410,580 7,683,200
10 Executive lncent Plan (253920)'140,000 140,000
1'.l Unbilled Revenue (253990)u8,734 1,249,835 2,098,569
12 WA Energy Recovery Mechanism 1 1,535,183 186 8,192,200 3,342,983
13 Misc Deferred Credits 2,773,438 407 2,573,455 199,983
14 REC Deferral
15 Kettle Falls Diesel Leak 236,1 35 1 39,960 376,095
16 Energy Commodity (253020)14,694,374 124 14,694,374
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 Tota!39,790,303 2s,925,$0 1,397,705 15,262,118
FERC FORM NO.2 (12-96)Page 269
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn ortginat
[lA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of pl!/Q[
Accumulated Deferred lncome Taxes-Other Propefi (Account 282)
1. Report tre information called for below corceming he respondents accounting fo deferred income taxes relating to property not subject to accelerated amortization.
2. At Ofier (Speci[), include defenals relating to other income and deduclions.
Line
No.Account Subdivisions
(a)
Balance at
Beginning
of Year
(b)
Amounts
Debited to
Account 410.1
(c)
Amounb
Credited to
Account 41 1.1
(d)
1 Account 282
2 Eleclric 443,772,673 59,131,206
3 Gas 135,61 1,950 18,297,4n
4 Oher (Define) (foohote details)67,485,743 6,863,072
5 Total (Enter Total of lines 2 thru 4)646,870,366 u,291,755
o Oher (Specify) (footnote details)
7 TOTAL Account 282 (Enter Total of lines 5 hr 646,870,366 u,291,755
I Classification of TOTAL
I Federal lncome Tax 630,i147,007 u,291,755
10 State lncome Tax 16,423,359
11 Local lncome Tax
FERC FORM NO.2 (REV 12-07)Page 274
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]Rn originat
nA Resubmission
Date of ReDort(Mo, Da, Yi)
03t31t2017
Year/Period of Report
End of 2016/Q4
Accumulated Deferred lncome Taxes-Other Property (Account 282) (continued)
3. Provide in a foohote a summary of the type and amount of defened income taxes reported in the beginning-oflear and endotyear balances for deferred income taxes hat the
respondent estimates conld be included in the development ofjurisdictional recourse rates.
Line
No.
Changes during
Year
Amounts Debited
to Account 410.2
(e)
Changes during
Year
Amounts Credited
to Account 41 '1.2
0
Adjustnents
Debits
Acct No.
(s)
Adjusbnents
Debits
Amount
(h)
Adjustnents
Credits
Account No.
(D
Adjusbnents
Credits
Amount
0)
Balance at
End of Year
(k)
1
2 502,903,879
3 1 53,909,427
4 74,348,815
5 731,162,121
6
7 731,162,121
I
I 714,7fi,762
10 '16,423,359
11
FERC FORM NO.2 (REV 12-07)Page 275
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
Enn
IS:
Original
[lA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Peraod of Report
End of p.jllg
Accumulated Deferred lncome Taxes-Other (Account 283)
1. Report he information called for below conceming the respondent's accounting for deferred income taxes relating to amounts recorded in Account 283.
2. At Other (Specifo), include defenals relating to other income and deductions,
Line
No.
Account Subdivisions
(a)
Balance at
Beginning
of Year
(b)
Changes During Year
Amounts
Debited to
Account 410.1
(c)
Changes During Year
Amounts
Credited to
Account 41 1,1
(d)
Account 283
2 Electric 16,367,4'10 1,760,464
3 Gas ( 3,286,746)14,626
4 Ofi er (Defi ne) (footnote details)214,729,975 16,799,765
5 Total (Total of lines 2 hru 4)227,810,639 18,574,855
6 Oher (Specify) (footnote details)
7 TOTAL Account 283 (Total of lines 5 thru 227,8'10,639 18,574,855
I Classificaton of TOTAL
o Federal lncome Tax 227,810,639 18,574,855
10 State lncome Tax
11 Local lncome Tax
FERC FORM NO. 2/3Q (REV 12{7)Page 276
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!/Q{
Accirmulated Deferred lncome Taxes-Other (Account 283) (continued)
3. Provide in a foohote a summar of the type and amount of deferred income taxes reported in the beginning-otyear and end-of-year balances for deferred income taxes that the
respondent estimates could be included in the development ofjurisdictional recourse rates.
Line
No.
Changes during
Year
Amounts Debited
to Account 410.2
(e)
Changes during
Year
Amounts Credited
to Account 41 '1.2
(0
Adjustrnents
Debits
Acct. No.
(s)
Adiustrnents
Debits
Amount
0)
Adjusfnents
Credits
Account No.
(i)
Adjustments
Credits
Amount
0)
Balance at
End of Year
(k)
1
2 ( 737,482)17,390,392
3 ( 16,66e)( 3,288,789)
4 ( 4,602,839)226,926,901
5 ( 5,356,990)241,028,504
6 5,429,247 5,429,247
7 5,429,247 ( 5,356,990)246,457,751
8
0 5,429,247 ( 5,356,990)246,457,751
10
11
FERC FORM NO. 2/3Q (REV 12-07)Page 277
ame
Avista Corporation (1)
(2)
An Original
A Resubmission
uale or Kepon(Mo, Da, Yr)
03t31t2017
Yearrenoo or Kepon
End of p!!/Q[
Other Regulatory Liabilities (Account 254)
1. Report below the details called for concerning other regulatory liabilities which are created through the ralemaking actions of regulatory agencies (and not
includable in other amounts).
2. For regulatory liabilities being amortized, show period of amortlzation in column (a).
3. Minor items (50/o 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 directed to refund the regulatory liability (e.9. Commission Order, state
commission order, court decision).
Line
No.Description and Purpose of
Oher Regulatory Liabilities
(a)
Balance at
Beginning of
Cunent
Quarterffear
(b)
Written ofi during
Quarter/Period
Account
Credited
(c)
Wriften off
During Period
Amount
Refunded
(d)
Written off
During Period
Amount Deemed
Non-Refundable
(e)
Credib
(0
Balance at
End of Cunent
Quarterffear
(s)
1 daho lnvestment Tax Credit (254005)1 1,288.001 190 2.093.50(9,194,403
2 Sregon BETC (254010)1,099,87:190 88,44:1,011,429
3 Settled lnt Rate Swaps (254090)14.271.54',428 1.829.70i 12.M1.U0
4 Jnsettled lnt Rate Swaps (254100)22,68',8,726,868 8,749,555
5 =AS 109 lnvest Credit (254180)47,71"190 13.ssl 34,1 61
6 \ez Perce Qil220\616,34(557 22,W s94,332
7 daho Eamings Test (254229)760,06{2,936.80s 3.696.873I)ecouolinq Rebate 2,404,9'16 2,404,916I3PA Res Exchanse (254U5)428,6?239,001 667.625
10 f,ther Requlatorv Liabilities 1.841,65(190 27,10a 1,814,545
11 /UA ERM 6,457,27'1 1,490,399 17,947,670
12 D PCA 754,95{1,482,439 2,237,397
13 loseburg/Medford 8,72 182 8,729
14 )efened Federal ITC 3,379.01i 190 62.40C 13.528.905 16,945,522
15
16
't7
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 tO,976,481 /t,l{5,519 0 40,909,333 n,7q,268
FERC FORM NO. 2/3Q (REV 12-07)Page 278
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
[-lA Resubmission
Date of Report
(Mo, Da, Yr)
o3t3112017
Year/Period of Report
End of 20'16/Q4
Gas Operating Revenues
1. Report below natural gas operating revenues for each prescribed account total. The amounts must be consistent with he detailed data on succeeding pages.
2, Revenues in columns (b) and (c) include kansition costs from upstream pipelines.
3. Other Revenues in olumns (f) and (g) indude reservation charges received bythe pipeline plus usage charges, less revenues reflected in columns (b) through (e). lndude in
columns (0 and (g) revenues fgr Accounts 480495.
Line
No.
Title of Acmunt
(a)
Revenues for
Transition
Cosb and
Take-or-Pay
Amount for
Cunent Year
6)
Revenues for
Transition
Cosb and
Tak+or-Pay
Amount for
Previous Year
(c)
Revenues for
GRI and ACA
Amount for
Current Year
(d)
Revenues for
GRI and ACA
Amqrnt for
Previous Year
(e)
1 480 Residential Sales
2 481 Commercial and lndusfial Sales
3 482 Oher Sales to Public Authorities
4 483 Sales for Resale
5 484 lnterdepartmental Sales
6 485 lntracompany Transfers
7 487 Forfeited Dismunts
8 488 Miscellaneous Service Revenues
I 489.1 Revenues from Transportation of Gas of Others
Through Gahering Facilities
10 489.2 Revenues fiom Transportation of Gas of Others
Through Transmission Facilities
11 489,3 Revenues from Transportation of Gas of Othem
Through Distribution Facilities
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 Obers
15 492 lncidental Gasoline and Oil Sales
16 493 Rentfrom Gas Property
17 494 lnterdepartnental Renb
18 495 Other 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
Avista Corporation
This Reoort ls:(1) fiRn Orisinat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
03131t2017
Year/Period of Report
End of @[
Gas Operating Revenues
4. lf increases or decreases from previous year are not derived ftom previously reported fgures, explain any inconsistencies in a footnote.
5. 0n Page |08, indude information on major changes during the year, new service, and important rate increases or decreases.
6. Report Ure revenue fom transportation services that are bundled with storage services as transportation service revenue.
Line
No.
Other
Revenues
Amount for
Cunent Year
(0
Other
Revenues
Amount for
Previous Year
(s)
Total
Operating
Revenues
Amount for
Current Year
0)
Total
Operating
Revenues
Amount for
Previous Year
(D
Dekatherm of
Natural Gas
Amount for
Cunent Year
0)
Dekatherm of
Natural Gas
Amount for
Previous Year
(k)
195,275,153 193,825,126 1 95,275,1 53 193,825,1 26 18,656,462 '17,661,330
2 98,504,799 1 03,325,365 98,504,799 't03,325,365 12,361,947 11,767 ,225
3
4 154,435,624 208,128,979 |il,435,624 208,128,978 69,373,309 83,1 31,135
5 288,08s 281,994 288,085 281,994 37,818 33,451
6
7
I 139,015 80,331 139,01 s 80,331
9
10
11
8,338,713 7,988,080 8,338,713 7,988,080 18,U7,82s 16,723,3s3
12
13
14
15
16 3,293 3,211 3,293 3,211
17
18 17J00,272 10,770,592 17,100,272 10,770,593
19 474,08/,954 524.403,678 474,084,954 s24,403,678
20 2,767,455 2,767,455
21 471,317 ,499 524,403,678 471,317,499 524,403,678
FERC FORM NO.2 (REV 12-07)Page 301
ame
Avista Corporation (1)
(2)
An Original
Resubmission
Date ot Report
(Mo, Da, Yr)
03t31t2017
Year/Perlod of Reporl
End of 2016/Q4
Other Gas Revenues (Account 495)
Report beJow transactions of $250,000 or more included in Account 495, Other Gas Revenues. Group all transactions below $250,000
in one amount and provide the number of items.
Line
No.
Description of Transaction
(a)
Amount
(in dollars)
(b)
1 Commissions on Sale or Distibution of Gas of Others
2 Compensation for Minor or lncidental Services Provided for Others
3 Profit or Loss on Sale of Material and Supplies not Ordinarily Purchased for Resale
4 Sales of Stream, Water, or Electricity, induding Sales or Transfers to Oher Departments
5 Miscellaneous Royalties
6 Revenues ftom Dehydration and Other Processing of Gas of Others except as provided for in the lnstructions to Acmunt 495
7 Revenues for Right and/or Benefts Received ftom Others which are Realized Through Research, Development, and Demonstraton Ventures
8 Gains on Setdements of lmbalance Receivables and Payables
I Revenues from Penalties eamed Pursuant to Tariff Provisions, including Penalties Associated with Cashout Settlements
10 Revenues ftom Shipper Supplied Gas
11 Other revenues (Speciff ):
12 Misc Bills 291,066
13 Defened Exdange Revenue 4,500,000
14 Decoupling Defened Revenue 12,309,206
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
Total 17,100,272
FERC FORM NO.2 (12-96)Page 308
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Reoort
(Mo, Da, Yi)
03131t2017
Year/Period of Report
End of 2016/Q4
Gas Operation and Maintenance Expenses
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
1 1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production
3 Manufactured Gas Production (Submit Supplemental Statement)0 0
4 B. Natural Gas Production
5 81 . Natural Gas Production and Gathering
6 Operation
7 750 Operation Supervision and Engineering 0 0
8 751 Production Maps and Records 0 0
I 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 Purification 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 lmprovements 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 Drilling 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
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !.Ql!/Q[
Gas Operation and Maintenance Expenses(continued)
Line
No
Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(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 Produc{s Extracted 0 0
42 779 Marketing Expenses 0 0
43 780 Products Purchased for Resale 0 0
44 781 Variation in Products lnventory 0 0
45 (Less) 782 Extracted Products Used by the Utility-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 lmprovements 0 0
51 786 Maintenance of Extraction and Refining Equipment 0 0
52 787 Maintenance of Pipe Lines 0 0
53 788 Maintenance of Extracted 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
(1)
(2)
Reoort ls:
[]Rn originat
nA Resubmission
Date of Report(Mo, Da, Yr)
03131t2017
Year/Period of Report
End of 2016/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
59 C. Exploration and Development
60 Operation
61 795 Delay Rentals 0 0
62 796 Nonproductive Well Drilling 0 0
63 797 Abandoned Leases 0 0
64 798 Other Exploration 0 0
65 TOTAL Exploration and Development (Total of lines 61 thru 64)0 0
66 D. Other Gas Supply Expenses
67 Operation
68 800 Natural Gas Well Head Purchases 0 0
69 800.1 Natural Gas Well Head Purchases, lntracompany Transfers 0 0
70 801 Natural Gas Field Line Purchases 0 0
71 802 Natural Gas Gasoline Plant Outlet Purchases 0 0
72 803 Natural Gas Transmission Line Purchases 0 0
73 804 Natural Gas City Gale Purchases 247,457,293 319,282,550
74 804.1 Liquefied Natural Gas Purchases 0 0
75 805 Other Gas Purchases ( 1,814)0
76 (Less) 805.1 Purchases Gas Cost Adjustments ( 12,157,352)( 13,720,762)
77 TOTAL Purchased Gas (Total of lines 68 thru 76)259,612,831 333,003,312
78 806 Exchange Gas 0 0
79 Purchased Gas Expenses
80 807.1 Well Expense-Purchased Gas 0 0
81 807.2 Operation of Purchased Gas Measuring Stations 0 0
82 807.3 Maintenance of Purchased Gas Measuring Stations 0 0
83 807.4 Purchased Gas Calculations Expenses 0 0
84 807.5 Other Purchased Gas Expenses 0 0
85 TOTAL Purchased Gas Expenses (Total of lines 80 thru 84)0 0
FERC FORM NO.2 (12-96)Page 319
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) llA Resubmission
Date of Reoort(Mo, Da, Yi)
03t31t20't7
Year/Period of Report
End of p!!@[
Gas Operation and Maintenance Expenses(continued)
Line
No
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
86 808.1 Gas Withdrawn from Storage-Debit 22,932,919 45,198,194
87 (Less) 808.2 Gas Delivered to Storage-Credit 18,187,452 29,241,184
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 Utility Operation-Credit
91 810 Gas Used for Compressor Station Fuel-Credit 0 0
92 811 Gas Used for Products Extraction-Credit 566,023 446,368
93 812 Gas Used for Other Utility Operations-Credit 0 0
94 TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)566,023 446,368
95 813 Other Gas Supply Expenses 2,072,264 1,750,521
96 TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95)265,864,539 350,264,475
97 TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96)265,864,539 350,264,475
98 2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES
99 A. Underground Storage Expenses
100 Operation
10't 814 Operation Supervision and Engineering 16,127 13,588
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 Purification Expenses 0 0
109 822 Exploration and Development 0 0
110 823 Gas Losses 0 0
111 824 Other Expenses 705,893 677.721
112 825 Storage Well Royalties 0 0
113 826 Rents 0 0
114 TOTAL Operation (Total of lines of 101 thru 113)722,O20 691 ,309
FERC FORM NO.2 (12-96)Page 320
Avista Corporation (1)
(2)
Original
Resubmission
Date of Reoort
(Mo, Da, Yi)
03t31t2017
Year/Period of Report
End of !Ql!/Q[
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
1't 5 Maintenance
116 830 Maintenance Supervision and Engineering 0 0
117 831 Maintenance of Structures and lmprovements 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 804,745 648,898
124 TOTAL Maintenance (Total of lines 116 thru 123)804,745 648,898
125 TOTAL Underground Storage Expenses (Total of lines 114 and 124)1,526,765 1,340,207
126 B. Other Storage Expenses
127 Operation
128 840 Operation Supervision and Engineering 0 0
129 841 Operation Laborand 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
1U TOTAL Operation (Total of lines 128 thru 1 33)0 0
135 Mainlenance
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
1M 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 oflines 134 and 145)0 0
FERC FORM NO.2 (12-96)Page 321
Name of Respondent
Avista Corporation
This ReDort ls:(1) finn Originat(2) llA Resubmission
Date of Report(Mo, Da, Yr)
o3t31t2017
Year/Period of Report
End of 46lQl
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(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
155 844.7 Communication System Expenses 0 0
1s6 844.8 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 Demunage Charges 0 0
161 (less) 845.5 \A/harfage 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
16s 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 lmprovements 0 0
169 847.3 Maintenance of LNG Processing Terminal Equipment 0 0
170 847.4 Maintenance of LNG Transportation Equipment 0 o
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
't75 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)1,526,765 1,340,207
FERC FORM NO.2 (12-95)Page 322
Name s:
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !Ql!/Q[
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(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 lmprovements 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 2i394,089 2,335,426
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
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
[]Rn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of @4
Gas Operation and Mai ntenance Expenses(continued)
Line
No.
Account
(a)
Amounl for
Current Year
(b)
Amount for
Previous Year
(c)
208 874 Mains and Services Expenses 6,223,508 5,809,786
209 875 Measuring and Regulating Station Expenses-General 214,642 192,859
210 876 Measuring and Regulating Station Expenses-lndustrial 10,564 8,087
2',t'l 877 Measuring and Regulating Station Expenses-City Gas Check Station 137,442 131 ,087
212 878 Meter and House Regulator Expenses 1,339,147 1,069,806
213 879 Customer lnstallations Expenses 3,147,738 3,226,050
214 880 Other Expenses 3,417,U1 3,026,742
215 881 Rents 61,234 57.176
216 TOTAL Operation (Total of lines 204 thru 215)16,945,905 15,857,019
217 Maintenance
218 885 Maintenance Supervision and Engineering 330,676 179,467
219 886 Maintenance of Structures and lmprovements 0 0
220 887 Maintenance of Mains 2,564,O71 2,552,162
221 888 Maintenance of Compressor Station Equipment 0 0
222 889 Maintenance of Measuring and Regulating Station Equipment-General 485,016 53',t,220
223 890 Maintenance of Meas. and Reg. Station Equipment-lndustrial 281,286 240,023
224 891 Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 102,696 'l 1 8,017
225 892 Maintenance of Services 3,508,248 2,688,703
226 893 Maintenance of Meters and House Regulators 2,491,230 2,739,937
227 894 Maintenance of Other Equipment 432,383 349,692
228 TOTAL Maintenance (Total of lines 218 lhru 227)10,195,606 9,399,221
229 TOTAL Distribution Expenses (Total of lines 216 and 228)27,14',t,511 25,256,240
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 307,187 310,965
233 902 Meter Reading Expenses 2,334,815 2,232,796
234 903 Customer Records and Collection Expenses 8,757,532 7,748,363
FERC FORM NO.2 (12-96)Page 324
Avista Corporation (1)
(2)
Original
Resubmission
Date ol Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
235 904 Uncollectible Accounts 2,829,960 2,708,708
236 905 Miscellaneous Customer Accounts Expenses 218,799 234,815
237 TOTAL Customer Accounts Expenses (Total of lines 232 thru 236)14,448,293 13,235,647
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision 0 0
241 908 CustomerAssistance Expenses 11,349,685 7,622,111
242 909 lnformational and lnstructional Expenses 1,O37,214 886,365
243 910 Miscellaneous Customer Service and lnformational Expenses 210,950 95,402
244 TOTAL Customer Service and lnformation Expenses (Total of lines 240 lhru 243)12,597,U9 8,603,878
245 7. SALES EXPENSES
246 Operation
247 911 Supervision 0 0
248 912 Demonstrating and Selling Expenses 293 0
249 913 Advertising Expenses 0 0
250 916 Miscellaneous Sales Expenses 0 0
251 TOTAL Sales Expenses (Total of lines 247 thru 250)293 0
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 13,045,177 12,117,128
255 921 Office Supplies and Expenses 1,701,627 1,634,570
256 (Less) 922 Administrative Expenses Transferred-Credil 19,751 18,378
257 923 Outside Services Employed 2,889,143 3,629,636
258 924 Property lnsurance 456,1 30 467,995
259 925 lnjuries and Damages 1,284,519 1,353,757
260 926 Employee Pensions and Benefits 591 ,1 55 671,836
261 927 Franchise Requirements 0 0
262 928 Regulatory Commission Expenses 2,251,001 2,481,480
263 (Less) 929 Duplicate Charges-Credit 0 0
264 930. 1 General Advertising Expenses 0 878
265 930.2Miscellaneous General Expenses 1,674,151 'l,662,443
266 931 Rents 394,123 353,710
267 TOTAL Operation (Total of lines 254 thru 266)24,267,275 24,355,055
268 Maintenance
269 932 Maintenance of General Plant 4,163,915 3,826,155
270 TOTAL Administrative and General Expenses (Total of lines 267 and 269)28,431 190 28,181 ,210
271 TOTAL Gas O&M Expenses (Total of lines 97 ,177 ,201,229,237,244,251 , and 270)350,010,440 426,881,657
FERC FORM NO.2 (12-95)Page 325
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Gas Used in Utility Operations
1. Report below details of credits during the year to Accounts 81 0, 81 1, and 8'12.
2. lf any natural gas was used by the respondent for which a charge was not made to the appropriate operating expense or other account, list separately in column (c) the Dth of gas
used, omifting entries in column (d).
Line
No
Purpose for Whidr Gas
Was Used
(a)
Account
Charged
(b)
Natural Gas
Gas Used
Dth
(c)
Natural Gas
Amount of
Credit
(in ddlarc)
(d)
Natural Gas
Amount of
Credit
(in dollars)
(d)
Natural Gas
Amount of
Credit
(in dollars)
(d)
1 810 Gas Used for Compressor Station Fuel - Credit 1,301,506
2 81 1 Gas Used for Products Extraction - Credit 3,192,085 566,023
3 Gas Shrinkage and Other Usage in Respondents
Ovun Processinq
4 Gas Shrinkage, etc. for Respondent's Gas
Processed by Others
5 812 Gas Used for Other Utility Operations - Credit
(Report separately for each principal use. Group
minor uses.)
o
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Total 4,493,59'l 566,023
FERC FORM NO.2 (12-96)Page 331
Name of Respondent
Avista Comoration
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016tQ4
FOOTNOTE DATA
Schedule Paoe: 331 Line No.: 1 Column: d
Dollar value related to compressor fuel are not separately recorded. These dollars are included in total gas purchase
costs.
FERC FORM NO.2 fi2-96t Paqe 552.1
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
[]Rn originat
nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of ry!!/gl
Other Gas Supply Expenses (Account 813)
1. Report other gas supply expenses by desoiptive titles that clearly indicate the nature of such expenses. Show maintenance expenses, revaluation of monhly enooachmenb
to which any expenses relate. List separately items of $250,000 or more.
Line
No.
Description
(a)
Amount
(in dollars)
(b)
I Gas Resource Management
2 Labor 866,194
3 Labor Loadinq 797,v0
4 Oher Expenses (Professional Services, Travel, Transponation, Office Supplies, Training)201,093
5
6 Regulatory Affairs
7 Labor 33,404
8 Labor Loading 31,703
I Ofier Expenses (Travel, Transportation, Gas Tedrnology lnstitute Payments)142,529
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Total 2,072,263
FERC FORM NO.2 (12-96)Page 334
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!/Q[
Miscellaneous General Expenses (Account 930,2)
1. Provide the information requested below on miscellaneous general expenses.
2. For Other Expenses, shorrv the (a) purpose, (b) recipient and (c) amount of such items. List separately amounts of $250,000 or more however, amounts less than $250,000 may be
grouped if the number of items of so grouped is shown.
Line
No.
Description
(a)
Amount
(in dollars)
(b)
,|Industry association dues.298,630
2 Experimental and general research expenses.
a. Gas Research lnstitute (GRl)
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 I 63,1 93
4 Community Relations 32,248
5 Director Expenses 282,944
b Education and information 19,663
7 Rating Agency Fees 73,'119
8 Aircraft operation and fees 73,199
o Misc Vendors >5k 314,799
10 Misc Vendors <5k 416,356
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Total 1,674,151
FERC FORM NO.2 (12-96)Page 335
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
EInn
ls:
Original
nA Resubmission
Date of Report(Mo, Da, Yr)
o3t31t2017
Year/Period of Report
End of !Ql!/Q[
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404,3,405) (Except Amortizataon of
Acquisition Adiustments)
subaccount or functional classifications oher than those preprinted in column (a). lndicate in a footnote the manner in which column (b) balances are
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.
Depreciation
Expense
(Acount403)
Amortization
Expense for
Asset
Retirement
Costs
(Account
403.'l) (c)
Fundional Classifi cation
(a)b)
Amortizalion and
Depletion of
Producing Natural
Gas Land and Land
Rights
(Account 404.1 )
(d)
Amortization of
Underground Storage
Land and Land
Righb
(Account 404.2)
(e)
I lntangible plant 227
2 Production planl manufactured gas
3 Production and gathering plant nah,ral gas
4 Producls extaction plant
5 Underground gas storage plant 824,853
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
I Distribution plant 21,U8,622
10 General plant 792,557
11 Common plantgas 5,486,054 5,728
12 TOTAL 28,4s2,086 5,955
FERC FORM NO.2 (12-96)Page 336
Name of Respondent
Avista Corporation
This ReDort ls:
finn originat
nA Resubmission
(1)
(2)
Date ot ReDort
(Mo, Da, Yi)
03131t2017
Year/Period of Report
End of 2016/Q4
Depreciation, Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405) (Except Amortization of
Acquisition Adjustments) (continued)
depreciation charges, show in a footnote any revisions made to estimated gas reserves.
provisions and the plant items to which related,
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.
Amortization of
Ofier Limited-term
Gas Plant
(Account 404.3)
(0
Amortization of
Ofier Gas Plant
(Account 405)
G)
Total
(b to g)
(h)
Functional Classifi cation
(a)
1 362,s05 362,732 lntangible plant
2 Production plant, manufaclured gas
3 Production and gathering plant, nafural gas
4 Products exhaction plant
5 824,8s3 Undaground gas storage plant
6 Other storage plant
7 Base load LNG terminaling and processing plant
I Transmission plant
9 21,y8,622 Distribution plant
10 110,171 902,728 General plant
11 5,969,207 1 1,460,989 Common plantjas
12 6,441,883 34,899,924 TOTAL
FERC FORM NO.2 (12-95)Page 337
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn origtnat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !pl!@[
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2,404.3,405) (Except Amortization of
Acquisition Adiustments) (continued)
4. Addrowsasnecessarytocompletelyreportall data. Numbertheadditional rowsinsequenceas2,01,2.02,3.01,3.02,etc,
Section B. Factors Used in Estimating Depreciation Charges
Line
No.Funclional Classilication
(a)
Plant Bases
(in thousands)
(b)
Applied Depreciation
or Amortization Rates
(percent)
(c)
1 Production and Gathering Plant
2 Oftshore (footnote details)
3 Onshore (footnote details)
4 Underqround Gas Storaqe Plant (foohote details)
5 Transmission Plant
6 Offr hore (foohote details)
7 Onshore (footnote details)
8 General Plant (footnote details)
o
'10
11
12
13
14
15
FERC FORM NO.2 (12-96)Page 338
I
Name of Respondent
Avista Corporation
This Reoort ls:(1) fi]nn orisinat(2) l--lA Resubmission
Date of Report(Mo, Da, Yr)
03t3'U2017
Year/Period of Report
End of 20'16/Q4
Particulars Concerning Certain lncome Deductions and lnterest Charges Accounts
Report the information specified belorv, in the order given, for the respective inmme deduction and interest charges accounts.
period of amortization.
may be grouped by classes within the above accounts.
(c) lnterest on Debt to Associated Companies (Account 430)-For each associated company that incurred interest on debt during the year, indicate the amount and interest rate
which interest was incuned during the year.
(d) Other lnterest Expense (Acount 431) - Report details including the amount and interest rate for other interest charges incuned during the year.
Line
No
Item
(a)
Amount
(b)
1 Donations 426.10 2,837,164
2 Total 426.1 2,837,164
3 Life lnsurance 426.2
4 O,fficers Life 160,479
5 SERP 2,286,064
o Items under $250,000 142,615
7 Total426.2 2,589,158
8 Penalties 426.3 ( 64,095)
I Total 426.3 ( 64,095)
10 Expenditures fo Certain Civic, Political 426.4 1,788,417
11 Total 426.4 1,788,417
12 Other Deductions 426.5
13 Executive Defened Compensation 372,180
14 Pump Schedule Refund 285,000
15 Items under $250,000 1,2s8,058
16 Total 426.5 1,9'15,238
17 lnterest on Debt to Assoc Companies 430
18 Avista Capital ll 63/,,432
19 Avista Capital lnc 13't,957
20 Total 430 766,389
21 Oher lnterest Expense 431
22 lnterest on electric deferrals 625,432
23 lnterest on natural qas defernals 879,016
24 lnterest on committed line of credit 2,588,401
25 Other 293,181
26 Total 431 4,386,030
27
28
29
30
31
32
33
34
35
FERC FORM NO.2 (12-96)Page 340
Name of Respondent
Avista Corporation
This
(1)
(2)
Report ls:
IRn Originat
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of p!!/Q[
Regulatory Gommission Expenses (Account 928)
cases in which such a body was a party.
2. ln column (b) and (c), indicate whether the expenses were assessed by a regulatory body or were othenrise incuned by he utility.
Line
No
Desoiption
(Furnish name of regulatory commission
or body, the docket number, and a
dscription of the case.)
(a)
Assessed by
Regulatory
Commission
(b)
Expenses
of
Utility
(c)
Total
Expenses
to Date
(d)
Defened in
Account 182.3
at Beginning
ofYear
(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
2,246,103 ( 106,164)2,139,939
5
6 Washington Utilities and Transportation Commission
7 lncludes annual fee and various other elec{ric dockets
1,032,055 1,236,417 2,268,472
8
I lncludes annual fee and various other natural gas
dockels 304,371 334,817 639,188
10
11 ldaho Public Utilities Commission
12 lncludes annual fee and various other electric dockets
471,762 340,209 81 1,97'l
13
14 lncludes annual fee and various other natural gas
dockets 116,264 98,220 214,4U
15
'16 Public Utility Commission of Oregon
17 lncludes annual fee and various other dockets
562,683 448,061 1,010,74
'18
19 Not directly assigned electric
948,166 948,166
20 Not directly assigned natural gas
386,585 386,s85
21
22
23
24
25 Total 4,733,238 3,686,311 8,419,549
FERC FORM NO.2 (12-96)Page 350
Name of Respondent
Avista Corporation
This ReDort ls:(1) fiRn origlnat(2) nA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Regulatory Commission Expenses (Account 928)
3. Shor in column (k) any expenses inorned in prior years that are being amortized. List in coluthn (a) the period of amortization.
4. ldentiff separately all annual charge adjustmatts (ACA).
5. List in column (0, G), and (h) expenses incuned during year which were charges currently to income, plant, or other ac@unts.
6. Minor items (less than $250,000) may be grouped.
Line
No.
Expenses
lncurred
During Year
Charged
Currently To
Department
(f)
Expenss
lncurred
During Year
Charged
Currenfly To
Account No.
(o)
Expenses
lnqJned
During Year
Charged
Cunently To
Amount
(h)
Expenses
lncuned
During Year
Defened to
Account
182.3
fi)
Amortized
During Year
Contra
Account
fi)
Amortized
During Year
Amount
ft)
Defened in
Account 182.3
End ofYear
fl)
1
2
3
4
Electric 928 2,139,939
5
6
7
Eleciric 928 2,268,472
8
o
Gas 928 639,188
10
11
12
Electic 928 81 1,971
13
14
Gas 928 214,4U
15
't6
17
Gas 928 1,010,744
18
'19
Electric 928 948,166
20
Gas 928 386,585
21
22
23
24
25 8,419,549
FERC FORM NO.2 (12-96)Page 351
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2) nA Resubmission
Date of Reoort(Mo, Da, Yi)
03t31t2017
Year/Period of Report
End of 2016/Qzl
Employee Pensions and Benefits (Account 926)
1. Report below the items contained in Account 926, Employee Pensions and Benefits.
Line
No
Expense
(a)
Amount
(b)
1 Pensions - defined benefit plans
2 Pensions - other
3 Post-rethement benefts other than pensions (PBOP)
4 Post- employment beneft plans
5 CIha (Specify)
b A& G Common Training 561,961
7 Benefits Admin 29,194
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
u
35
36
37
38
39
Tota!591,155
FERC FORM NO.2 (NEW 12{7)Page 352
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Original
Resubmission
Date ol Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Distribution of Salaries and Wages
Other Accounts, and enter such amounts in the appropriate lines and columns provided. Salaries and wages billed to the Respondent by an affliated company must be asslgned to the
particular operating function(s) relatlng to the expenses,
detail of other accounts, enter as many rows as necessary numbered squentially starting witr 75:0'1, 75.02, etc.
Line
No
Classification
(a)
Direct Payroll
Distribution
(b)
Payroll Billed
by Affilhted
Companies
(c)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Total
(e)
1 Elec-bic
2 Operation
3 Production 1 1,358,057 1 1,930,143 23,288,200
4 Transmission 3,220,245 3,220,245
5 Distribution 8,375,670 8,375,670
6 Customer Accounts 7,757,556 7,757,556
7 Customer Service and lnformational 630,144 630,144
8 Sales
9 Administrative and General 19,342,684 '19,342,684
10 TOTAL Operation (Total of lines 3 thru 9)50,684,356 1 1,930,143 62,614,499
11 Maintenance
12 Production 3,887,678 3,887,678
13 Transmission 1,31 1,928 1,31 1,928
14 Distribution 3,397,070 3,397,070
'15 Adminisbative and General
'16 TOTAL Maintenance (Total of lines 12 thru 1 5)8,596,676 8,596,676
17 Total Operation and Maintenance
18 Produclion (Total of lines 3 and 12)15,245,735 I 1,930,'r43 27,175,878
19 Transmission (Total of lines 4 and 13)4,532,173 4,532,173
20 Distribution (Total of lines 5 and 14)11,772,740 11,772,740
21 Customer Accounts (line 6)7,757,556 7,757,556
22 Customer Service and Informational (line 7)630,144 630,144
23 Sales (line 8)
24 Administrative and General (Total of lines 9 and 15)19,342,684 19,342,684
25 TOTAL Operation and Maintenance (Total of lines 18 thru 24)s9,281,032 1 1,930,14:71,211,175
26 Gas
27 0peration
28 Production - Manufactured Gas
29 Produclion - Natural Gas(lnduding Exploration and Development)
30 Other Gas Supply 898,67s 898,675
31 Storage, LNG Terminalinq and Processino 7,675 7,675
32 Transmission
33 Distribution 5,389,950 5,389,950
34 Customer Accounts 8,470,701 8,470,701
35 Customer Service and lnformatonal 387,720 387,720
36 Sales
37 Administrative and General 24,859,969 24,8s9,969
38 TOTAL Operation (Total of lines 28 thru 37)40,014,690 40,014,690
39 Maintenance
40 Production - Manufactured Gas
41 Production - Natural Gas(lnduding Exploration and Development)
42 Ofter Gas Supply
43 Storaoe, LNG Terminaling and Processinq
M Transmission 1,210,230 1,210,230
45 Distribution 3,426,536 3,426,536
FERC FORM NO.2 (REV|SED)Page 354
S:
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 03t31t2017
Year/Period of Report
End of !!l!/Q[
Distribution of Salaries and Wages (continued)
Line
No
Classification
(a)
Direct Payroll
Distribution
(b)
Payroll Billed
by Affiliated
Companies
(c)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Total
(e)
46 Administrative and General 8,894,311 8,894,31 1
47 TOTAL Maintenance (Total of lines 40 thru 46)4,636,766 8,894,31'l 1 3,53 1,077
48 Gas (Contlnued)
49 Total Operalion and Maintenance
50 Production - Manufactured Gas (Total of lines 28 and 40)
51 Produclion - Natural Gas (lncluding Expl. and Dev.)(ll. 29 and 41 )
52 Other Gas Supply (Total of lines 30 and 42)898,675 898,675
53 Storage, LNG Terminalinq and Processinq (Total of ll. 31 and 43)7,675 7,675
54 Transmission (Total of lines 32 and 44)1,210,230 1,210,230
55 Distribution (Total of lines 33 and 45)8,816,486 8,8't6,486
56 Customer Accounts (Total of line 34)8,470,701 8,470,701
57 Customer Service and lnformational (Total of line 35)387,720 387,720
58 Sales (Total of line 36)
59 Adminisbative and General (Total of lines 37 and 46)24,859,969 8,894,311 33,7s4,280
60 Total Operation and Maintenance (Total of lines 50 thru 59)44,651,456 8,894,31't 53,545,767
61 Other Utility Departments
ot Operation and Maintenance
bJ TOTAL ALL Utility Dept. (Total of lines 25, 60, and 62)103,932,488 20,824,454 124,756,942
64 Utility Plant
65 Construction (By Utility Departments)
66 Electric Plant 38,997,474 1 1,373,99€50,371,470
67 Gas Planl 13,947,088 10,382,141 24,329,229
68 Other
69 TOTAL Construction (Total of llnes 66 thru 68)52,944,562 21,756,137 74,700,699
70 Plant Removal (By Utility Departmenb)
71 Electric Plant 2,293,857 452,706 2,746,563
72 Gas Plant 250,212 49,38C 299,592
73 Other
74 TOTAL Plant Removal (Total of lines 71 thru 73)2,s44,069 502,086 3,046,1s5
75 Other Accounts 43,345,354 ( 38,s95,7431 4,749,611
76 TOTAL Other Accounts 43,345,354 ( 38,595,7431 4,749,611
77 TOTAL SALARIES AND WAGES 202,766,473 4,486,934 207,2s3,407
FERC FORM NO.2 (REVISED)Page 355
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort
Elnn
ls:
Original
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of !Qj!/Q[
Charges for Outside Professional and Other Consultative Services
which should be reputed in Account 426.4 Expenditures for Certain Civic, Political and Related Activities.
(a) Name of person or organization rendering services
(b) Total charges for the year.
2. Sum under a desoiption 'Other', all of the aforementioned services amounting to $250,000 or less.
3. Total under a description 'Total', the total of all of the aforementioned services.
according to the instructions for that schedule.
Line
No
Description
(a)
Amount
(in dollars)
(b)
1 ABB Ent Software 286,207
2 Baker Conshuc{ion 1,313,478
3 Black & Veatch 301,823
4 Cinlus Design 342,316
5 Coeur D Alene Tribe 795,606
D Common Wealth Associates s70,634
7 Connective DX '1,215,896
8 Evco sound & Elecfonics 456,604
I garco construciton 438,551
10 General Electric 279,444
11 Green Mountain 285,800
12 H2E 300,803
13 Hanna and Associates 508,972
14 HRD Engineedng 259,272
15 HRD 253,391
16 Historical research associates 349,977
17 ldaho Dept of Fish and Game 275,463
18 lnternational Line Builders 303,582
19 Itron 524,s85
20 Klundt Hosmer Design 291,388
21 Land Expressions 380,827
22 Landau Associates 42S,504
23 Max J Kuney Co 948,375
24 McKinistry Essention LLC 1,296,756
25 McMillion 7,426,253
26 MWH Americas 285,210
27 Peak Reliabity 680,429
28 Power Plan w,342
2S Russel Electfical 2m,795
30 Sapere Consulting 1,218,032
31 strata 411,927
32 TD&H Engineain 366,470
33 Telvent USA 426,512
34 Tilton Excavating 269,464
35 Triniti Consulting 4,380,776
FERC FORM NO.2 (REVTSED)Page 357
Name of Respondent
Avista Corporation
This Reoort ls:
finn originat
nA Resubmission
(I)
(2)
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of 2016/Q4
Charges for Outside Professional and Other Consultative Services (continued)
Line
No.
Description
(a)
Amount
(in dollars)
(b)
1 URS Energy 2,461,744
2 US Forest Service 260,236
3 Western Electricity 455,395
4 O$er 24,293,235
5 Total 56,182,074
6
7
8
I
10
11
12
'13
14
15
'16
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
FERC FORM NO.2 (REV|SED)Page 357.1
Name of Respondent
Avista Corporation
s:
(1)
(2\
Original
Resubmission
Date of Report(Mo, Da, Yr)
03t31t2017
Year/Period of Report
End of @l!/Q[
Transactions with Associated (Affiliated) Companies
1. Report below the information called for conceming all goods or services received from or provided to associated (affiliated) ompanies amounting to more than $250,000.
2. Sum under a description 'Other', all of the aforementioned goods and services amounting to $250,000 or less.
3. Total under a description "Total", he total of all of the aforementioned goods and services.
4. Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a foohote the basis ofthe allocation.
Line
No.
Description of the Good or Service
(a)
Name of Associated/Aff liated Company
(b)
Account(s)
Charged or
Credited
(c)
Arnount
Charged or
Credited
(d)
1 Goods or Services Provided by Affliated Company
2 Oher Steam Plant Square 931000 98,100
3
4
5
b
7
8
o
10
11
12
13
14
15
16
17
18
19
20 Goods o Services Provided for Affiliated Company
21 Corporate Supprt Salix 146000 759,855
22 Corporate Support Avista Development 146000 346,058
23 Other Courtyard Office Center 146000 56,627
24 Other Steam Plant Square 146000 87,574
25 Other Avista Capital 146000 s9,632
26 Other AELP 146000 34,015
27 O,ther AJT 146000 13,070
28 Other Steam Plant Brew Pub 123,754
29
30
31
32
33
u
35
36
37
38
39
40
FERC FORM NO.2 (NEW 12-07)Page 358
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
finn originat
llA Resubmission
Date of Report(Mo, Da, Yr)
03t31t20'17
Year/Period of Report
End of p!@[
Gas Storage Proiects
1. Report injections and withdrawals of gas for all storage projects used by respondent.
Line
No.
Item
(a)
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
(c)
Total
Amount
(Dfi)
(d)
STORAGE OPERATI0NS (in Dth)
1 Gas Delivered to Storage
2 January 211,243 211,243
3 February 62,679 62,679
4 March 287,737 287,737
5 April '1,899,575 '1,899,575
6 Mav 2,725,325 2,725,325
7 June 1,814,804 '1,814,804
8 July 831,005 831,00s
I August 1,038.563 1,038,563
10 September 1,428,810 't,428,810
11 October 94,778 94,778
12 November 420,930 420,930
'13 December 155,278 155,278
14 TOTAL(Total of lines2hru 13)10,970,727 10,970,727
15 Gas Whdrawn from Storaqe
16 January 1,473,440 1,473,440
17 February 3,537,202 3,537,202
18 March 500,805 500,805
19 April 403,1 98 403,1 98
20 May 267,406 267,406
21 June 41 0,1 56 410,1 56
22 July 623,405 623,405
23 Auqust 50,330 50,330
24 September 3,457 3,457
25 0ctober 338,137 338,137
26 November 470,258 470,258
27 December 3,720,538 3,720,538
28 ToTAL (Total of lines 16 thru 27)1 1,798,332 11,798,332
FERC FORM NO.2 (12-96)Page 512_
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
nA Resubmission
Date of Report
(Mo, Da, Yr)
o3t31t2017
Year/Period of Report
End of 2016/Q4
Gas Storage Projects
1. On line 4, enter he total storage capacity cefficated by FERC.
2. Report total amount in Dfi or other unil, as applicable on lines 2, 3, 4, 7. lf quantity is converted fiom Mcf to Dfr, provide conversion factor in a footnote.
Line
No
Item
(a)
Total Amount
(b)
STORAGE OPERATIONS
1 Top or Workinq Gas End of Year 8.s28,000
2 Cushion Gas (lncluding Native Gas)7,730,668
3 Total Gas in Reservoir (Total of line I and 2)16,258,668
4 Certifi cated Storaqe Capacity 16,258,668
5 Number of lnjection - Wihdrawal Wells 54
6 Number of Observation Wells 48
7 Maximum Days' Wihdraral from Storage
8 Date of Ma<imum Days'Withdrawal 12108m16
I LNG Terminal Companies (in Dth)
10 Number of Tanks
11 Capacity of Tanks
12 LNG Volume
13 Received at'Ship Rail'
14 Transfened to Tanks
15 Withdrawn ftom Tanks
16 'Boil Off' Vaporization Loss
FERC FORM NO.2 (12-96)Page 513_
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t3'1120'17
Year/Period of Report
2016/Q4
FOOTNOTE DATA
Schedule Pase: 513 Line No.:7 Column: b
Mcf converted to Dth using a factor of 1.04
FERC FORM NO.2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Reporl
End of p!!@[
Auxiliary Peaking Facilities
installations, gas liquefaction plants, oil gas sets, etc.
For o$er facilities, report the rated maximum daily delivery capacities.
separate plant as contemplated by general instruction 12 ofthe Uniform System ofAccounts.
Line
No-
Location of
Facility
(a)
Type of
Facility
ft)
Maximum Daily
Delivery Capacity
of Facility
Dth
(c)
Cost of
Facility
(in dollars)
(d)
Was Facility
Operated on Day
of Highest
Transmission Peak
Deliverv?
1
2 Chehalis, Washington Underground Natural Gas 346,667 38,486,577
3 Storage Field
4 Washington & ldaho Supply
5
b Chehalis, Washington Underground Natural Gas 52,000 6,190,186
7 Storage Field
8 Oregon Supply
I
't0 Chehalis, Washington Underground Natural Gas 2,623
11 Storage Field
12 Oregon Supply
13
14 Rock Springs, Wyoming Underground Natural Gas 186,12s
15 Storage Field
'16 Washington & ldaho Supply
17
18 Rock Springs, Wyoming Underground Natural Gas 63,875
19 Storage Field
20 Oregon Supply
21
22
23
24
25
26
27
28
29
30
FERC FORM NO.2 (12-96)Page 519
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
03t31t2017
Year/Period of Report
2016/Q4
FOOTNOTE DATA
Schedule Paoe: 519 Line No.: 10 Column: d
tsa rtici in the facilities not an owner and is cha a fee for demand deliverabi and
isa in the facilities not an owner and is cha a fee for demand del and
Respondent is a participant in the facilities, not an owner, and is charged a fee for demand deliverability and capacity
FERC FORM NO.2 (12-96)Paqe 552.1
519 Line No.:14 Column: d
519 Line 1 :d
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiRn originat
llA Resubmission
Date of Report
(Mo, Da, Yr)
03t3112017
Year/Period of Report
End of p!!@[
Gas Account - Natural Gas
1. The purpose ofthis schedule is to account for the quantity of natural gas received and delivered by the respondent,
2, Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas,
3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items of receipB and deliveries.
4. Enter in column (d) the respective quarte/s Dth as reported in the schedules indicated for the items of receipls and deliveries.
5, lndicate in a footnote the quantities of bundled sales and transportation gas and specify the line on which such quantities are listed,
6. lfthe respondent operates two or more systems which are not interconnected, submit separate pages for this purpose.
markel or $at were not lransported thDugh any interstate portion of the reporting pipeline.
8. lndicate in a footnote the specific gas purchase expense account(s) and related to which the aggregate volumes reported on line No. 3 relate.
reporting year, and (3) contract storage quantities.
tootnotes.
Line
No.
Item
(a)
Ref, Page No. of
(FERC Form Nos.
2t2-A)
(b)
Total Amount
of Dth
Year to Date
(c)
Cunent Three Months
Ended Amount of Dth
Quarterly 0nly
(d)
0'l Name of System:
2 GAS RECEIVED
3 Gas Purchases (Accounb 800-805)101,013,255 26,060,1 55
4 Gas of Others Received for Gathering (Account 489.1)303
5 Gas of Ohers Received for Transmission (Account 489.2)305
o Gas of Others Received for Distibution (Account 489.3)301 17,837,701 4,871,645
7 Gas of Others Received for Contraci Storaqe (Account 489.4)N7
8 Gas of Others Received for Production/Extraction/Processing (Account 490 and 491 )
9 Exchanged Gas Received from Others (Account 806)328
10 Gas Received as lmbalances (Account 806)328 ( M,831)( 5s,666)
11 Receipts of Respondents Gas Transported by Others (Account 858)332
12 Oher Gas Withdrarn from Storaqe (Explain)782,618 3,800,122
13 Gas Received fiom Shippers as Compressor Station Fuel
14 Gas Received from Shippens as Lost and Unaccounted for
15 Ofier Receipts (Specify) (footnote details)
16 Total Receipts (Total of lines 3 hru 15)1 19,568,743 34,676,256
17 GAS DELIVERED
18 Gas Sales (Accounts 480484)100,429,536 29,2fi,222
19 Deliveries of Gas Gaftered for Others (Account 489.'l)303
20 Deliveries of Gas Transported for Others (Account 489.2)30s
21 Deliveries of Gas Dishibuted for O,trers (Actount 489.3)301 17.837,701 4,871,645
22 Deliveries of Contract Storage Gas (Account 489.4)307
23 Gas of Others Delivered for Production/Extraction/Processing (Account 490 and 491 )
24 Exchange Gas Delivered to Others (Account 806)328
25 Gas Delivered as lmbalances (Account 806)328
26 Deliveries of Gas to Others for Transportation (Account 858)332
27 Oher Gas Delivered to Storage (Explain)
28 Gas Used for Compressor Station Fuel s09 1,301,506 546,389
29 Oher Deliveries and Gas Used for Other Operations
30 Total Deliveries (Total of lines 18 hru 29)1 19,568,743 34,676,256
31 GAS LOSSES AND GAS UNACCOUNTED FOR
32 Gas Losses and Gas Unaccounted For
33 TOTALS
u Total Deliveries, Gas Looses & Unaccounted For (Total of lines 30 and 32)1 1 9,568,743 34,676,256
FERC FORM NO.2 (REV 01-11)Page 520
Avu-6
rl:!':1u
:.l ' " ,: i ,F'i ll: 33
, ..,it i l-,'r i
Avista Corp.
2016
IDAHO
State Natural Gas Annual Report
(rc 61-405)
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 201,6 I A4
STATEMENT OF UTILITY OPERATING INCOME - IDAHO
lnstructions
1. For each account below, report the amount attributable to the state of ldaho based on ldaho jurisdictional Results of Operations.
2. Provide any necessary important notes regarding this statement of utility operating income in a footnote in the available space at the bottom of this page
Line
No.Account
(a)
Refer to
Form 2
Page
(b)
SYSTEM - IDAHO
,|UTILITY OPERATING INCOME
2 ODeratino Revenues (400)300-301 422.538.944 438.862.9S3
3
4 Ooeration ExDenses (401)317-325 242 634.436 281 095 939
5 317-325 21.529.102 19.7'16.01 1
5 DeDreciation Exoense (403)336-334 4't.899 969 39 168 371
7 eDreciation Exoense for Asset Retirement Costs (403.1)336-338IAmortization & Deoletion of Utilitv Plant (404-405)336-338 5 806 994
I Amortization of Utilitv Plant Acouisition Adiustment (406)336-338 (1 30.829)67.304
10 RequlatorY Studv Costs (407
11 Amortization of Conversion Exoenses (407)
12 (1.905.433)
13 (Less) Reoulatorv Credits (407.4)(1.069.637)(6.351.798)
Taxes OtherThan lncome Taxes (408.1)262-263 17.246.129 17.489.467
15 lncome Taxes - Federal (409 1'l ?6?-?63 (16 777 837\2 975 069
16 - Other (409.1)262-263
17 Provision for Deferred lncome Taxes (410 1)234-235 4:055 1 95 18 662 907
18 (Less) Provision for Deferred lncome Taxes-Ct. U11.1\234-235
1S lnvestment Tax Credit Adiustment - Net 177.062\07.379\
20 (Less) Gains from Disoosition of Utilitv Plant (411.6)
21 Losses from DisDosition Of tJtilitu Plant 41',t'')
22 (Less) Gains from Disoosition of Allowances (41 t .8)
23 Losses from DisDosition of Allowances
24 Accretion Exoense (4'l 1.1 0)
25 TOTAL Utilitu C)oeralino FxDenses {Tola 376.047.452
26 Net Utilitv Ooeratino lncome (Total line 2 less 25)68.314.695 62.815.541
IDAHO STATE NATURAL GAS ANNUAL REPORT (tC 61405)G.tD.114-1 15
Name of Respondent
Avista Corporation
This Report is:En An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
STATEMENT OF UTILITY OPERATING INCOME.IDAHO
lnstructions
or in a separate schedule.
3. Explain in a footnote if the previous year's figures are different from those reported in prior reports.
ELECTRIC UTILITY GAS UTILITY OTHER UTILITY Line
No.Cunent Year
(e)
Prior Year
(f)
Current Year
(s)
Prior Year
(h)
Current Year
(i)
Prior Year
0)
1
327.785.819 331.496.092 94.753.125 107.366.901 2
3
175.575.735 195.429.218 67.059.10'l 85.666.721 4
7,939,683 3,589,419 7 5
35.445 852 33.285.897 6.453.1 17 5.842 474 6
7
5.493.620 4.756.344 1.319.431 1.050.550 8
67.304 304 (1 98.1 33)I
'10
11
(875.823)168 136 (1 029 61 12
(1.069.637)(6.279.256)'13
4,563.595 14,785,60'l 2 6A2 534 14
(15.820.013)3.447.734 (957.824\15
16
37.444 693 15.094.760 4.610.502 3.568 147 17
18
('l6s 388)(67.203)(7.674\110 176)19
20
21
22
23
24
r,505.640 276.357.84,718.609 99.690.382 25
58.280.1 79 55.1 39.022 10.034.s'16 7.676.519 26
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.405)G.lD.'114-1 15
Name of Respondent
Avista Corporation
This Report is:
F-l an originat
I a Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
SUMMARY OF UTILIW PLANT ANO ACCUi,IULATED PROVISIONS FOR DEPRECIATION. AMORTIZATION AND DEPLETION - IOAHO
lnstructions
1. Report below the original cost of utility plant in service necessary to furnish utility service to customers in the state of ldaho, and the
accumulated provisions for depreciation, amortization, and depletion attributable to that plant in service.
2. Report in column (c) the amount for electric function, in @lumn (d) the amount for gas function, in columns (e), (f), and (g) report other (specify),
Line
No Account
(a)
Total Company
End of Current Year
(b)
Electric
(c)
1 Ljtilitv Plant
2 ln Service
3 Planl in Service (Classified)1.668.908.657 1.304.963.369
4 Prooertv [Jnder Caoital Leases 166.781 9't.823
5 Plant Purchased or Sold
6 Comoleted Construction not Classifi ed
7 Exoerimental Plant Unclassifi ed
8 Total ffotal lines 3 throuoh 7)'l 't .305.055.'t 92
I Leased to Others
'10 Held for Future Use 352.937 162.352
11 tn 26 774 01 4
12 Acouisition Adiustments
13 fotal Utilitv Plant ffotal lines I throuoh '12)1 696 928 791 't 331.SS3 558
14 Accumulated Provision for Debrecialion AmorliTation end Denletion 5A2.567.602 469.712.3A5
15 Net utilitv Plant (Line 13less line 14)1.114.361.'t 89 a62.2A1.173
16 Delail of Accumulated Provision for Denrecialion. Amortization. and Deoletion
17 ln Service
18 Deorecialion 564.438.471 465.274.982
19 Amortization and Deoletion of Producino Natural Gas Lands / Land Riohts
20 Amortization of Underoround Storaoe Lands / Land Riohts
21 Amortization of Other Utilitv Plant 1 8.1 29.1 31 4.437.403
22 8 58 567 6,02 469 712 385
23 Leased to Others
24 Deorecialion
25 Amortization and Deoletion
26 Tolal Leased lo Olhers
27 Held for Future ljse
28 Deorecialion
29 Amortization
30 Total Held for Future Use
31 Abandonment of Leases (Natural Gas)
32 Amortization of Plant Acquisition Adiustment
33 Total Accumulated Provision (Total lines 22.26. 30. 31.321 582,567,602 449712 345
IDAHO STATE NATURAL GAS ANNUAL REPORT (lc 6T405)G.1D.200-201
Name of Respondent
Avista Corporation x
This Report is:
An Original
I n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION . IDAHO
lnstructions
and in column (h) common funclion.
3. ln order to accurately reflect utility plant in service necessary to fumish utility service to cuslomers in the state of ldaho, electric and gas
plant not directly assigned is allocated to the state of ldaho as appropriate and included in column (c) and (d).
Gas
(d)
Other (Specify)
(e)
Other (Specify)
(D
Other (Specify)
(s)
Common
(h)
Line
No
1
2
224.078.244 139.857.044 3
74.958 4
5
6
7
224.153 202 139.867.044 8
o
190.585 10
724.402 11
12
225.068.1 89 139.867.044 13
75.993.'t 23 36,862.094 14
149.075.066 1 03 004 950 15
16
17
75 678 555 23.4A4.934 18
19
20
314 568 13.377.160 21
75.9S3.1 23 36.862.094 22
23
24
25
26
27
2A
29
30
31
32
75.993 123 36.862.094 33
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 51405)G.tD.200-201
Name of Respondent
Avista Corporation
This Report is:
I nn originat
I n Resubmission
Date of Report
mm/dd/yyyy
3t31t20't7
Year / Period of Report
End of 2016 / Q4
GAS PLANT lN SERVICE - IDAHO (Account 101,102,103 and 106)
lnstructions
1 . Report below the original cost of gas plant in service necessary to fumish natural gas utility service to customers in the state of ldaho.
lnclude gas plant not directly assigned as allocated to the state of ldaho.
2. ln addition to Account 101, Gas Plant in Service (Classified), this page and the next include Account 102, Gas Plant Purchased or Sold; Account
103, Experimental Gas Plant Unclassified; and Account 106, Completed Construction Not Classified-Gas.
3. lnclude in column (c) or (d), as appropriate, corrections of additions and retirements for the current or preceding year.
4. For revisions to the amount of initial asset retirement costs capitalized, include by primary plant account increases in column (c), additions, and
reduclions in column (e), adjustments.
5. Enclose in parentheses credit adjustments of plant accounts to indicate the negative effect of such amounts.
6. Classify Account 1 06 according to prescribed accounts, on an estimated basis if necessary, and include the entries in column (c). Also to be included
in column (c) are entries for reversals of tentative distributions of prior year in column (b). Likewise, if the respondent has a significant amount of plant
retirements which have not been classified to primary accounts 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. lnclude also in column (d) distributions of
Line
No.Account
(a)
Balance
Beginning of Year
(b)
Additions
(c)
1
2 301 Oroanization
3 3O2 Franchises and Consents
4 303 MiscellaneouslntanqiblePlant 1 098 537 {5 9'19)
5 TOTAL lntanoible Plant fTotal of lines 2. 3 and 4)1.098.537 (5.S19)
6 PRODUCTION PLANT
7
8 325.1 Producino Lands
I 325.2 Producino Leaseholds
10
11 325.4 Riohts-of-Wev
12 325.5 Other Land and Land Riohts
'13
14 327 Field Comoressor Station Slruclures
15 Station
'16 329 Other Stnrctures
17 330 Producino Gas Wells-Well Construclion
18
19 332 Field Lines
20 333 Field ComDressor Station Eouioment
?1 Station
22 335 Drillino and Cleanino Eouiomenl
23 336 PurificationEouiDment
?4
25 338 ljnsuccessful Exoloration and Develonment Costs
26 339 Asset Retirement Costs for Natural Gas Production and Gatherino Planl
27 8
28 Products Extraction Plant
29 340 Land and Land Riohts
30
3'r 342 Extraction and Refinino Eouiomenl
32 343 Pioe Lines
33
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61.405)G.tD.204-205
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
GAS PLANT lN SERVICE - IDAHO (Account 101,102,103 and '106)
lnstructions
these tentative classifications in columns (c) and (d), including the reversals of the prior year's tenlative account distributions of these amounts. Careful
observance of these instructions and the texts of Accounts 1 01 and '106 will avoid serious omissions of the reported amount of respondent's plant
actually in service at end of year.
7. Show in column (f) reclassifications or transfers within utility plant accounts. lnclude also in column (f) the additions or reductions of primary account
classifications arising from distribution of amounts initially recorded in Account '102; include in column (e) the amounts with respect to accumulated
provision for depreciation, acquisition adjustments, etc., and show in column (0 only the offset to the debits or credits distributed in column (0 to primary
account classiflcations.
8. For Account 399, state the nature and use of plant included in this account, and, if substantial in amount, submit a supplementary statement showing
subaccount classification of such plant conforming lo the requirement of these pages.
9. ForeachaccountcomprisingthereportedbalanceandchangesinAccountl02,statethepropertypurchasedorsold,nameof vendororpurchase,and
dateoftransaction. lfproposedjoumal entrieshavebeenfiledasrequiredbytheUniformSystemofAccounts,givealsothedateofsuchfiling.
Retirements
(d)
Adjustments
(e)
Transfers
(D
Balance
End of Year
(s)
Line
No.
1
2
3
123.383 67,670 1.036.905 4
1 23 383 67.670 1 036 905 5
6
7
8
I
10
11
12
13
14
15
16
17
18
'ls
20
21
22
23
24
25
26
27
28
29
30
31
32
33
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61-405)G.rD.204-20s
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 20'16 / Q4
GAS PLANT lN SERVICE - IDAHO (Account 101. 102. 103 and 106) (Continued)
Line
No.Account
(a)
Balance
Beginning of Year
(b)
Additions
(c)
34 345 ComoressorEouinment
35 346 Gas Measurino and Reoulatino Eouioment
36
37
38 TOTAL Products Extraction Plant (Total of lines 29 throuoh 371
39 TOTAL Natural Gas Production Plant (Total lines 27 and 38)
40 Manufactured Gas Production Plant (Subm t SuDolementarv Schedule)
41 TOTAL Production Plant (Total lines 39 and 401
42 NATURAL GAS STORAGE AND PROCESSING PLANT
43 Underqround Storaoe Plant
44 350.1 Land 119 412
45 350.2 Riohts-of-Wav 17.549
46 538.942 1.469
47 352 Wells 1.469
48 352.1 Storaoe Leaseholds and Riohts 74 628
49 59.657
50 352.3 Non+ecoverable Natural Gas 1 57? 533
51 353 Lines 306 450
5?3.509.181 1.469
53 355 Other Eouioment 1 1.469
54 356 PurificationEouioment 114.449
55 569.458 1.469
56
57 TOTAL ljnderoround Sloraoe Plant 10 873 812 7 345
58 Plant
59 360 Land and Land Riohts
60 36'l Structures and lmDrovements
61
62 363 PurificationEouiomenl
63 363.1 Liouefaction EouiDment
64
65 363.3 Comoressor Eouioment
66 363.4 Measurino and Reoulatino EouiDment
67 363.5 Other Eouioment
68 363.6 Asset Retirement Costs for Other Storaoe Plant
69 TOTAL Other Storaoe Plant (Total of lines 58 throuoh 68)
70 Base I oad I i(luF-fie., Natrrral Gas Termin,no and Processino Plant
7'.!364.1 Land and Land Riohts
7?and
73
74 364.4 LNG Transoorlation EouiDment
75
7B 364.6 Compressor Station EquiDment
77 7
78 364.8 Other Eouioment
7g
80
TOTAL Base Load Liquefied Natural Gas Terminaling and Processing Plant (Total lines 71
throuoh 79)
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61-405)G.tD.206-207
Name of Respondenl
Avista Corporation
This Report is:
lx-l nn orisinat
t] A Resubmission
Date of Report
mm/dd/yyyy
3131t2017
Year / Period of Report
End of 2016 / Q4
GAS PLANT lN SERVICE - IDAHO (Account 101. 102. 103 and 106) (Continued)
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance
End of Year
(s)
Line
No.
34
35
36
37
38
39
40
41
42
43
217 077 336.489 44
78 17.627 45
52.811 46
17,365 3.821 .206 47
330 74.958 48
264 RO 49
6.968 'l 579 501 50
1.357 307.807 51
65.971 3.576.621 52
51,243 237 893 53
525 118.974 54
48.621 619.548 55
56
462.610 11.343.767 57
58
59
60
61
62
53
64
65
66
67
68
59
70
7',!
72
73
74
75
76
77
78
79
80
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.rD.206-207
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
PLANT IN SERVICE.102 103 and
Balance
No.Account Beginning of Year Additions
81
82
1 't2 7.345
83 365 1 Lanrl enrl I end Riohts
84 355.2 Riohts-of-Wav
85 366 Structures and lmorovements
86
87 368 Comoressor Station Eduioment
88 369 Measurino and Reoulatino Station EouiDment
89
90 371 Olher Fouioment
91 372 Asset Retirement Costs for Transmission Plant
92 TOTAL Transmission Plant fiotal lines 83 throuoh 91)
93 DISTRIBUTION PI ANT
g4 374 Land and Land Riohts 87.803
95 and 5?7
s6 376 Mains 98 707.859 6.817.540
97 377 Comoressor Station Eouioment
98 378 Measurino and Reoulatino Station EouiomenlGeneral 28.547
99 379 lvleasrrrino end Reoulalino Slalion Fduioment-Citv Gate 4 3s1 667 1 25.009
100 380 Services 62.254.631 6.617.727
10'l 381 Meters ,|400.217
102 382 Meter lnstallations
103 383 House Reoulators
104 384 House Reoulator lnstallations
385 lndilslrial [/
106 386 Olher Probertu on Customers' Premises
107 387 Other EouiDment
10t 388 Asset Retir on Plenl
109 TOTAL Distribution Plant (Tolal lines 94 throuoh '108)'191 .91 5.929 13.989.667
11
11'l 38S Land and Lenrl Riohts
112 390 Structures and lmorovements
5 919
114 392 Transoortation Eouioment 2.792.577 365.507
115 393 Stores Eouioment
11 214 A?5
117 395 LaboratorvE6uiDmenl 83.767
118 396 Power Ooerated Eouioment 1.120.443 148.0 16
397 Commlrniml
120 398 MiscellaneousEouiDment
121 Subtotal fiotal of Lines 1 t I throuoh 120)5.818.794 738.267
122 399 Other Tano E Pronertv
123 399.'l Asset Retiremenl Cosls for General Plant
124 TOTAL General Plant fTotal of lines 121. 122 and 123\5.818.794 738.267
TOTAT (Accnilnls 1 14 729 36rJ
126 Gas Plant Purchased (See lnstruction 8)
127 (Less) Gas Plant Sold (See lnstruction 8)
124 Fxnerimenlal Gas P
129 TOTAL Gas Plant in Service (Total of lines 125 throuoh 128)209707 072 14 729.360
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.208-209
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
GAS PLANT IN 1
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance
End of Year
(s)
Line
No.
462.610 81
82
83
84
85
86
87
88
89
90
91
92
93
2 94
364 739 g5
't9.672 4.874 't 05.510.701 96
97
1.934 247 2261 696 s8
3'l ,666 58.297 4.503.307 oo
46 472 100
23.545.142 '101
102
104
(1)769.995 105
106
107
'108
99 744 5.122 58.297 205.869.271 109
110
111
112
9.708 129 205 1't3
175.980 30 550 (144 170\2.868.4S4 114
1t5
30.978 fi9.220\'t t36 823 'fi6
23.677 '13 923 74.O13 117
17A 843 't8.1 10 (1 13.443)994.483 't't 8
17.061 (58.557)'I 19
120
41 8 986 8'1.354 (316.1 70)5.903.259 121
122
123
41 8 986 81.354 (3'16.170)5.903.259 124
642.113 616.756 Q57.873\125
126
127
124
64? ',113 616.756 (257.873\224.153.202 129
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.208-209
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
I n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Feriod of Report
End of 20'16 lQ4
cAS STOREO -IOAHO (Accounts 117.1,117.2, 117.3,161.1, '16'f.2, and 16tt.3)
lnstructions
1. lf during the year adjustments were made to the stored gas inventory reported in columns (d), (0, (S), and (h) (such as to correct cumulative
inaccuracies of gas measurements), explain in a footnote (in the available space at the bottom of this page or in a separate schedule) 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 property recordable in the plant accounts.
3. State in a footnote, in the available space at the bottom of this page or in a separate schedule, the basis of segregation of inventory between current
and noncunenl portions. Also, state in a footnote the method used to report storage (i.e., fixed asset method or inventory method).
Line
No.
Description
(a)
(Account
117.'.!)
(b)
(Account
117.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Cunent
(Account
1 64.1 )
0
LNG
(Account
'164.2)
(o)
LNG
(Account
164.3)
(h)
Total
(i)
1 Balance at beoinnino ofvear 1.772.478 7 550 M6 9323.',124
2 Gas delivered to storaoe 5.434.910 5.434.910
3 Gas withdrawn from sloraoe 6.479.654 6 A79 65a
4 Other debits and credits
5 Balance at end of vear 't 772 474 6.505.902 8.278.380
6 Drh 317.648 3.760.637 I O7A ?45
7 Amount Der Dth 5.58 'l 73 203
(1) Fuel is accounted for within injections and withdrawal accounts.
(2) All gas reported is cunent working gas. Avista uses the inventory method to report all working gas stored.
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC G1.4Os)G.lD.220
Name of Respondent
Avista Corporataon
This Report is:EE An Original
A Resubmission
Date of Report
mn/ddryWy
3t3112017
Year / Period of Report
End of 2016 I Q4
GAS OPERATING REVENUES . IDAHO
lnstructions
1. Report below natural gas operating revenues attributable to the state of ldaho for each prescribed account total in accordance with jurisdictional
Results of Operations.
2. Revenues in columns (b) and (c) include transition costs from upstream pipelines.
3. Other Revenues in columns (0 and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns
(b) through (e). lnclude in columns (0 and (g) revenues for Accounts 480-495.
Line
No.Account
(a)
Revenues for
Transition Costs
and Take-or-Pav
Revenues for
GRI and ACA
Cunent Year
(b)
Previous Year
(c)
Current Year
(d)
Previous Year
(e)
1 480 Residential Sales
2
3 482 Other Sales to Public Authorities
4
5 484 lnlerdeDarlmental Sales
b 485 lntracomoanv Transfers
7 rl87 Forfeited Discounts
8 488 Miscellaneous Service Revenues
9 489.'l Revenues from Transportation of Gas for Others
throuoh Gatherino Facilities
10 489.2 Revenues from Transportation of Gas for Others
throuoh Transmission Facilities
11 489.3 Revenues from Transportation of Gas for Others
throuoh Distribution Facilities
12 489.4 Revenues from Storino Gas of Others
13 490 Sales of Producis Extracted from Nature Gas
't4 491 Revenues from Natural Gas Processed bv Others
15
16 493 Rent from Gas Prooertv
17 494 lnterdeoartmental Rents
18 495 Other Gas Revenues (1)
19 Subtotal
20 496 (Less) Provision for Rate Refunds
21 TOTAL
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.300-301
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
Endo 2016/Q4
GAS OPERATING REVENUES - IDAHO
lnstructions
4. lf increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote in the
available space at the bottom of this page or attached in a separate schedule.
5. See pages 108 in the FERC Form 2, lmportant Changes During the QuarterIYear, for information on major changes during 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
Revenues
Total
Operating
Revenlres
Dekatherm of
Natural Gas Line
No.
Current Year
(0
Previous Year
(s)
Current Year
(h)
Previous Year
(i)
Current Year
0)
Previous Year
(k)
4'l .491.0S3 40 281 41,491,093 40.281.230 4.543.723 4 200 673
19,653,995 21,156,972 19.6s3.99s 21.156.972 2.824.894 2.740.469 2
3
29.343.836 29.343.835 43 924 530 13.454.785 17.692.494 4
29.913 35.335 29.913 35.335 4.141 4.410 5
6
7
10.056 5,892 10,056 5,892 I
10
494,874 435,048 494,874 435,048 5,584,501 4,450,678 11
12
't3
14
15
't6
't7
3.729.3s8 1.527.894 3,729,358 1.527 .894 18
94.753.125 07 366 901 94.753j25 107.365.S0'l 1S
20
94.753.12s 1 94 753 125 107 366 901 21
('l) Sales for Resale and Defened Exchange dollars are allocated based on the Washington i ldaho monthly commodity allocations used in
Results of Operations.
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 6,I.405}G.tD.300-301
Name of Respondent
Avista Corporation x
This Report is
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
GAS OPERATION AND MAINTENANCE EXPENSES . IDAHO
lnstructions
1. For each prescribed accounl below, reporl operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lftheamountforpreviousyearisnotderivedfrompreviouslyreportedflgures,explaininafootnote.
Line
No.Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
1 1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production
3 Manufactured Gas Production (Submit Suoolemental Statement)
4 B. Natural Gas Production
5 81. Natural Gas Production and Gatherino
7 750 Ooeration Suoervision and Enoineerino
I 751 Production Maos and RecordsI752 Gas Well Expenses
10 753 Field Lines Exoenses
11 754 Field Compressor Station Expenses
12 755 Field Comoressor Station Fuel and Power
on Expenses
14 757 PurificationExoenses
5
'16 759 Other Exoenses
17 760 Rents
18 TOTAL Operation (Total of lines 7 throuqh 17)
19 l\ilaintenance
20
21 762 Maintenance of Structures and lmorovements
S
23 764 Maintenance of Field Lines
4
25 766 Maintenance of Field Measurino and Reoulatino Station Eouioment
767 Maintenance of Purification Equioment
27 768 Maintenance of Drillino and Cleanino Eouioment
2a
29 TOTAL Maintenance (Total of lines 20 throuoh 28)
30 S lines 18 and
|DAHO STATE NATURAL GAS ANNUAL REPORT (rC 51{05}G.tD.317
Name of Respondent
Avista Corporation
This Report is:
x An Original
A Resubmission
Date of Report
mm/dd/yyW
313112017
Year / Period of Report
End of 2016 I 04
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lf the amount for previous year is not derived from previously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
31
32 Ooeralion
33 770
34
35 772 GasShrinkaoe
37 774 Powet
38
39 776 Ooeration SuDDlies and ExDenses
40 777 Gas Processed bv Others
41 778 Rovalties on Products Extracted
42 779 Marketino Exoenses
43
44 781 Variation in Products lnventorv
45
46 783 Rents
47 TOTAL Ooeration (Total of line 33 throuoh z i)
48 Maintenance
49 784 Maintenance
50 785 Maintenance of Structures and lmDrovements
51 786 Maintenan@ of Extraction and Refin nd Folrinmenl
52
53 788 Maintenance of Exlracted Products
55 790 and
56
57 TOTAL Maintenance (Total of lines 49 throuoh 56)
58 AL Extraction
IOAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.t0.318
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 lA4
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lftheamountforpreviousyearisnotderivedfrompreviouslyreportedfigures,explaininafootnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
59 C. Exoloration and Develooment
60 ODeration
6'r 795 Delav Rentals
62
63 797 Abandoned Leases
64 798 Other Exoloration
65 lines 61
66 D- Other Gas Suonlv Exoenses
67 Ooeration
68 800 Natural Gas Well Head Purchases
59 800 1 Naturel Ges Well Heerl Plrrchases lnfracomnanv Transfers
70 801 Natural Gas Field Line Purchases
71 802 Natural Gas Gasoline Plant Outlet Purchases
72 803 Natrrral Gas Transmission I ine Prrrr rases
73 804 Natural Gas Citv Gate Purchases 52.495.820 70.619.764
74 804.1 Liouefied Natural Gas Purchases
75
76 805.1 (Less) Purchased Gas Cost Adiustments
77 TOTAL Other Gas Suoolv Exoenses (Total of lines 68 throuoh 76)52.495.820 70.619.764
7A
79 Purchased Gas Exoenses
80 807.1 Well Exoense-Purchased Gas
81
82 807.3 Maintenance of Purchased Gas Measurino Stations
83
a4 807 5 Other Purchased Gas Exnenses o44 741 3 861 400
85 TOTAL Purchased Gas Exoenses (Total of lines 80 throuoh 84)'1.o44.744 3.86 t .400
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.319
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t31t20',t7
Year / Period of Report
End of 2016 / Q4
GAS OPERATION AND MAINTENANCE EXPENSES. IOAHO
lnstructions
1 . For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lftheamountforpreviousyearisnotderivedfrompreviouslyreportedfigures,explaininafootnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
86
87 it
88 809.'l Natural
89 Deliveries of
90
91 810 Gas ljsed for Comoressor Station Fuel-Credit
92 811 Used for Products redil (131 255\(1 00 430)
93
94 TOTAL Gas Ljsed in utilitv Ooerations-Credit (Total of lines 91 throuoh 93)(13'l .2s5)(100.430)
95 813 Other Gas Suoolv Exoenses 455 427 379 006
96 77 53.854.735 74.759.740
97 TOTAL Production Eroenses (Total oflines 3. 30. 58.65. and 96)53.864.736 74.759.740
98 NATURAL GAS
99
100 Ooeration
101 814 Ooeration Suoervision and Enoineerinq 3 987
102
103 816 Wells Exoenses
't04 817 Lines Exoense
105
't06 819 Comoressor Slation Fuel and Power
107
'108 821 PurificationExDenses
10s 822 Exoloration and Develooment
110 823 Gas Losses
147 952 1 7C 6ss
112 825 Storaoe Well Rovellies
113 826 Rents
lines 1 192 705 183 642
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.tD.320
Name of Respondent
Avista Corporation x
This Report is:
An Original
[] n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
GAS OPERATION AND MAINTENANCE EXPENSES . IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lf the amount for previous year is not derived from previously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
115 Maintenance
116 830 n eintenence Suoervision anr, Fn.neennd
't17 831 Maintenance of Structures and lmorovements
't 18 832 Maintenance of Reservoirs and Wells
120 834 l\Iaintenanee of Comnressor Station Eouiomenl
't21 835 Maintenance of Measurino and Reoulatino Stalion Eouioment
'123 172 r]1,1
124 TOTAL Maintenance (Total of lines 116 throuoh 123)214.273 't72.O14
125 TOTAL Underoround Storaoe Exoenses (Total of lines 114 and124\406.978 355.656
'126 B Olher Storaoe Exnenses
't27 Ooeration
124 and
129 A41 Ooeration Labor and Exnenses
130 842 Rents
131
132 842.2 Power
133 842-3 Gas Losses
134 of lines 128 1
136 843-1 Maintenance Suoervision and Enoineerino
137 843.2 Maintenance of Structures
't 38
139 843.4 Maintenance of Purification Eouioment
141 843.6 Maintenance of Vaoorizind Eduioment
142 843.7 Maintenance of Comoressor Eouioment
143
144 843.9 Maintenance of Other Eduibment
145 Maintenance of lines t 36 1
't46 TOTAI Other Stomoe Fxnenses /Tolal of I nes 134 and 145)
IDAHO STATE NATURAL GAS ANNUAL REPORT (C 61405)G.1D.321
Name of Respondent
Avista Corporation
This Report is:
I nn originat
I n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I A4
GAS OPERATION AND MAINTENANCE EXPENSES - IDAHO
lnstructions
1 . For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lftheamountforpreviousyearisnotderivedfrompreviouslyreportedfigures,explaininafootnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
147 C Liouefied Natrrral Gas Terminalino and Processino Exoenses
148 Ooeration
149 844.1 a
'150 844.2 LNG Processinq Terminal Labor and Expenses
151 844.3 Liouefaction Processino Labor and Exoenses
152 844.4 Liouefaction Transoortation Labor and Exoenses
153
154 844.6 Comoressor Station Labor and Exoenses
155 844.7 Communication Svstem Exoenses
'156 and
157 845 'l Fuel
158 845.2 Power
15q 845.3 Rents
'160 845.4 Demurraoe Charoes
161 845.5 (Less) Wharfaoe Receiots-Credit
16,2
163 845.1 Gas Losses
'164 846.2 Other Exoenses
166 [/laintenance
167 847.'l Maintenance Suoervision and Enoineerino
168 .2 Maintenance of
'169 847 3 [raintenance nf I NG Processino Terminal Eouioment
170 847.4 Maintenance of LNG TransDortation EouiDmenl
171 847.5 Maintenance of
'172 847 6 l\Iainlenenm n
't73 847.7 Mainlenance of Communication Eouioment
174 847.8 Maintenance of Other Eouioment
175 TOTAL Maintenance I 174
176 TOTAL Liouefied Nat Gas Terminalino and Proc Exo ffiotal of lines 165 and '175)
177 Natural Gas 75)406 978 355 656
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 6'405)G.lD.322
Name of Respondent
Avista Corporation
This Report is:
I an originat
! n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 I Q4
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions
'1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lf the amount for previous year is not derived from previously reported figures, explain in a footnote
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
178 3. TRANSMISSION EXPENSES
179 oeration
'180 no
181 851 Svstem Control and Load Disnalchind
182 852 Communication Svstem Exoenses
183 853 Comoressor Station Labor and Exoenses
184 854 Gas for Compressor Station Fuel
185 855 Other Fuel and Power for Comoressor Stalions
187 857 Measurino and Requlatino Station ExDenses
188 858 Transmission and Comoression of Gas bv Others
18(
1S0 860 Rents
191 TOTAL Ooeration (Total of lines 180 throuoh 190)
192
1S3
194 862 Maintenance of Structures and lmorovements
195 863 Maintenance of Mains
196 864 lt/aintenance of Comoressor Stalion :ouiDment
197 865 Maintenance of Measurino and Reoulatino Station Eouioment
198 866 Maintenance of Communication EouiDment
'19S
200 TOTAL Maintenance (Total of lines 193 throuoh 199)
202 4. DISTRIBUTION EXPENSES
?o?loeration
204 no 472.647 407.611
205 871 Distribulion Load Disoatchino
206 Labor and
207
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.tD.323
Name of Respondent
Avista Corporation
This Report is:
I nn originat
A Resubmission
Date of Report
mm/dd/yyyy
3t3112017
Year / Period of Report
End of 2016 / Q4
GAS OPERATION AND MAINTENANCE EXPET.ISES . IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lftheamountforpreviousyearisnotderivedfrompreviouslyreportedfigures,explaininafootnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
208 874 Mains and Services ExDenses 929 926
209 875 Measurino and Reoulatino Station xnenses-General 32.387 39.681
210 2.088 1.205
212 Meter and House 224.092 167.592
213 823.546 845.023
214 880 Other ExDenses 683.725 555.450
215 881 Rents 14 33'.1 10 516
3.60S.442 3.029.2s8
217 l\raintenance
218 885 and 89 956 55 617
220 887 l\Iaintenance of Mains 405.932 365.872
221 888 r Fnrrinmenl
78.169 62.927
223 890 Maintenance of ileasurino and Reoulatino Station EouiDment-lndustrial 65.092 93.850
224 891 Maintenance of Meas. and Reo. S on Fnilinment-Citv Gate Check Stetion 48 979 63 901
of 1.075.201 568.326
226 893 Maintenance of ltileters and House Reoulators 685.032 721.823
227 894 Maintenance of Other Eouioment 54 610
2.s',t9.347 2.085.926
229 fOTAL Distribution Exnenses fTotal of lines 216 and 228\6.128.789 5.1 16.1 84
230
232 901 Suoervision 71.954 75.163
233 902 Meter Readino ExDenses 226 450,
234 Records and 1.984.758 1.822.871
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61.405)G.tD.324
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
I n Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 20'16 lQ4
GAS OPERATION AND MAINTENANCE EXPENSES - IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2- lf the amount for previous year is not derived from previously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
235 904 Uncollectible Accounts 673.323 641.673
236 905 Miscellaneorrs Crrstomer Amorrnls xDenses 52.058 55.626
237 TOTAL Customer Accounts Expenses (Total of lines 232 throuqh 236)3,013.048 2.821.783
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision
24'l 908 Customer Assistance Exoenses 't 2s4 619 137 617
242 234.435 182.155
243 910 Miscellaneous Customer Service and lnformational Expenses 50,1 91 22.600
244 TOTAL Customer Service and lnformational Exoenses (Total of lines 240 throuoh 243)1 539 245 342 372
?45
246 Operation
247 91 1 Suoervision
and
249 913 Advertisino Expenses
250 916 Miscellaneous Sales Exoenses
?51 lines 247
252
253 Ooeration
254 920 Administrative and General Salaries 2.707.331 2.344 626
255 348.142 306.482
256 922 (Less) Administrative ExoensesTransfened-Credit (5 869)(5.054)
257 586.793 6S1 808
2s8 924 ProDertv lnsurance 94 334 89.331
259 925 lniuries and Damaoes 265 49S 258 446
260 1',ts.920 128.010
26'l 927 FranchiseReouirements
262 928 Reoulatorv Commission ExDenses 294 735 323 403
263
264 930.'l General Advertisino ExDenses 322.322
General
266 93'l Rents 85.336 70.552
267 TOTAL Ooeration (Total of lines 254 throuoh 256)4.529.926
268
269 932 Maintenance of General Plant 744.577
270 267 and 5.695.724 5.274.503
271 TOTAL Gas O&M Expenses (Total of lines 97 , 177 ,201 , 229. 237 , 244, 251 , 270),648,520 88,670,238
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.325
Name of Respondent
Avista Corporation
This Report is:
[] Rn originat
fl a Resubmission
Date of Repo(
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
GAS TRANSMISSION MAINS .IDAHO
lnstructions
1 . Report below the requested details of transmission mains in system operated by respondent at end of year in the state of ldaho.
2. Report separately any lines held under a title other than full ownership. Designate such lines with an asterisk and in a footnote (in the available
space at the bottom of this page or attached in a separate schedule) state the name of owner or oo-owner, nature of respondent's title, and
percent ownership if jointly owned.
Line
No.
Kind of
Material
(a)
Diameter of
Pipe
in lnches
(b)
Total Length in Use
Beginning of Year
in Feet
(c)
Laid During Year
in Feet
(d)
Taken Up
or Abandoned
During Year
in Feet
(e)
Total Length
in Use
End of Year
in Feet
(f)
1
2
3
4
5
5
7
8
I
10
1',l
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2A
27
2A
29
30
31
32
33
34
36
38
39
40
NOTE:
ln accordance with the definitions established in the Uniform System of Accounts for production, transmission, and distribution plant, the Company's
gas mains are appropriately classified as distribution prcperty for accounting purposes (see definitions 29 (B) and (C)).
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61{05)G.tD.514
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/cld/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
GAS DISTRIBUTION MAII{S - IDAHO
lnstructions
't . Report below the requested details of distribution mains in system operated by respondent at end of year in the state of ldaho.
2. Report separately any lines held under a title other than full ownership. Designate such lines with an asterisk and in a footnote (in the available
space at the bottom of this page or attached in a separate schedule) state the name of owner or co-owner, nature of respondent's title, and
percent ownership if jointly owned.
Line
No.
Kind of
Material
(a)
Diameter of
Pipe
in lnches
(b)
Total Length in Use
Beginning ofYear
in Feet
(c)
Laid During Year
in Feet
(d)
Taken Up
or Abandoned
During Year
in Feet
(eI
Total Length
in Use
End ofYear
in Feet
tfl
1 Steel Wraooed Less than 2"1 .759.613 1.584 1.758.029
2 Steel Wraooed 62',1 403 519 186
3 Steel WraDDed 4" to 8"411.629 411.629
4 Steel Wrannad 8" to 12"'t2.197 12.197
5 Sleel Wraooed Over 1 2"
6
7
8 Plastic Less than 2"5.582.S66 87.543 5.670.509IPlastic1 ,495,1 38 1,507,546
10 Plastic 4" to 8"623.'t38 8.554 631.752
11 Plaslic 8" to 12"
't2 Plastic Over 12"
13
't4
15
16
17
't8
19
20
21
22
23
24
25
26
27
28
29
30
31
33
34
35
36
37
38
39
40
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.4{15)G.tD.514A
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/ywy
3t31t2017
Year / Period of Report
End of 2016 I Q4
SERVICE PIPES - GAS .IDAHO
lnstructions
1 . Report below the requested details of line service pipe in possession of the respondent at the end of the year in the state of ldaho.
Line
No.
Type of
Material
(a)
Diameter of
Pipe
in lnches
(b)
Number of
Service Pipes
Beginning of Year
(c)
Added
During Year
(c)
Retired
During Year
(d)
Number of
Service Pipes
End ofYear
(e)
Average
Length
in Feet
(fl
1 Steel Wraooed 1 " or Less 't1 433 't1 11 444 (1)
2 Steel Wraooed 1" to 2"191 1 190 (1)
Steel Wraoned 2" to 4"6 6 (1)
4 Steel Wraooed 4" to 8"1 (1)
5 Steel Wraoned Over 8"(1)
A Steel Wraooed Unknown 379 44 335 11)
7
8 Plastic 1 " or Less 60.308 2 302 62 610 (1
I Plastic "to2"267 4 271 fi)
10 Plastic 2" lo 4"11 1 (1
11 Plastic 4" to 8"a 1 4 (1)
12 Plastic Over 8"(1)
'13 Plastic Unknown 2.130 71 2.059 (1)
14
15 Other Unknown 22 11 11 (1
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
(1) lnformation not available.
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61,105)G.rD.5148
Name of Respondent
Avista Corporation
This Report is:EE An Original
A Resubmission
Date of Report
mm/dd/yyW
3131t20't7
Year / Period of Report
End of 2016 I Q4
REGULATORS-GAS-IDAHO
lnstructions
1 . Report below the requested details of gas regulators in possession of the respondent at the end of the year in the state of ldaho.
Line
No.
Size
(a)
Type
(b)
Make
(c)
Capacity
(d)
ln Service
Beginning of Year
(e)
Added During
Year
(n
Retired During
Year
(o)
ln Plant
End of Year
(h)
1
2 No Data available
3
4
5
6
7
I
I
10
11
12
't3
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
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 614{15)G.tD.514C
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
3t3',U2017
Year / Period of Report
End of 2016 /Q4
CUSTOMER METERS - GAS. IDAHO
lnstructions
1 . Report below the requested details of gas customer meters in possession of the respondent at the end of the year in the state of ldaho.
Line
No.
Size
(a)
Type
(b)
Make
(c)
Capacity
(d)
ln Service
Beginning ofYear
(e)
Added During
Year
(fl
Retired During
Year
(o\
ln Plant
End of Year
(h)
'|Alt AI Ail Ail 79.407 3.676 2.624 80.459
2
3
4
5
6
7
8I
10
11
12
13
14
15
16
't7
18
19
21
23
24
25
26
27
28
30
32
33
34
35
36
37
38
39
40
(1) The Company's systems do not supply meter information tracking by type of meter
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 51.105)G.tD.s14D
Name of Respondent
Avista Corporation
This Report is:
E An originat
E A Resubmission
Date of Report
mm/dd/yyyy
3t31t2017
Year / Period of Report
End of 2016 / Q4
GAS ACCOUNT. NATURAL GAS. IDAHO
lnstructions
1. Thepurposeof thisscheduleistoaccountforthequantityof natural gasreceivedanddeliveredbytherespondentforserviceinthestateof ldaho.
2. Natural gasmeanseithernatural gasunmixedoranymixtureof natural andmanufacturedgas.
3. Enter in column (c) the year-to-date Dth as reported in the schedules indacated for the items of receipts and deliveries.
4. lndicateinafootnote(intheavailablespaceatthebottomofthispageorinaseparateschedule) thequantitiesof bundledsalesandtransportationgas
and speciry the line on which such quantities are listed.
5. lftherespondentoperalestwoormoresystemswhicharenotinterconnected,submitseparatepagesforthispurpose.
6. lndicatebyfootnotethequantitiesofgasnotsubjecttoFERCregulationwhichdidnotincurFERCregulatorycostsbyshowing(1)thelocal distribution
volumes another jurisdictional pipeline delivered to the local distribution company portion of the reporting pipeline, (2) the quantities that the reporting
pipeline transported or sold through its local distribution facilities or intrastate facilities and which the reporting pipeline received through gathering
facilities or intrastate facilities, but not through any of the interstate portion of the pipeline, and (3) the gathering line quantities that were not destined for
interstate market or that were not transported through any interstate portion of the reporting pipeline.
7. lndicate in a footnote the speciflc gas purchase expense account(s) and related to which the aggregate volumes report on line 3 relate.
8. lndicateinafootnote(1)thesystemsupplyquantitiesof gasthatarestoredbythereportingpipelineduringthereportingyearandalsoreportedassales,
transportation 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 reporting yearwhich the reporting pipeline intends to sell or transport in a future reporting year, and (3) contract
storage quantities.
9. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's total transportation
figure. Add additional information as necessary to the footnotes.
Line
No.Account
(a)
Refer to
Fom 2
Page
(b)
Amount of Dth
Year to Date
(c)
Amount of Dth
Current 3 Months Ended
Quafterly Only
(d)
1 Name of Svstem
2
3 Gas Purchases (Accounts 800-805)2'1.098.503
4 489.1 303
6 Gas of Others Received for Transmission (Account 489-2)305
6 30'1 5 584 501
7 Gas of Others Received for Contract Storaoe (Account 489.4)307
8 JZO
I Gas Received as lmbalances (Account 806)328 17.846
10 nt 332
11 Other Gas Withdrawn from Storaoe (Exolain)229.450
12
'13 Gas Received from Shiooers as Lost and Unaccounted For
14
15 Total Receiots (Tolal of lines 3 throuoh 14)26 930 300
16 GAS DELIVERED
17 Gas Sales (Accounts 480-484)20.846.758
18 Deliveries of Gas Gathered for Others (Account 489.'l )303
19 Deliveries of Gas Transoorted for Others (489 2)305
20 Deliveries of Gas Distributed for Others (Account 489.3)301 5.584.501
21 Deliveries of Contract Storaoe Gas (Account 489 4'l 307
22 Exchanoe Gas Delivered to Others (Account 806)324
23 328
24 Deliveries of Gas to Others for Transoortation (Account 858)332
25
26 Gas Used for Comoressor Stalion Fuel 509 499.041
27
28 Total Deliveries (Total of lines 17 throuoh 27)26 930 300
29 GAS UNACCOUNTED FOR
30 Production System Losses
31 Gatherino Svslem Losses
32
33 Distribution Svstem Losses
34
35 Other Losses (Soecifu) (footnote details)
36 lines 30
37 Total Deliveries and Gas Unaccounled For fTotal of lines 28 and 36)26 930 300
(1) Represents net gas withdrawals and injections.
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.405)G.tD.520