2017Annual Report.pdf

THIS FILING IS
Item 1: E An lnitial (Original)
Submission
OR tr Resubmission No. _Avu -cl Form 2 Approved
OMB No.1902-0028
(Expires 1213112020)
Form 3-Q Approved
OMB No.'1902-0205
(Expires 1213112019)
FERC FINANCIAL REPORT
FERC FORM No.2= Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
These reports are mandatory under the Natural Gas Act, Sections '10(a), and 16 and 1B
CFR Parts 260.1 and 260.300. Failure to report may result in criminal fines, civil
penalties, and other sanctions as provided by law. The Federal Energy Regulatory
Commission does not consider these reports to be of a confidential nature.
Exact Legal Name of Respondent (Company)
Avista Corporation
Year/Period of Report
End of 20171Q4
FERC FORM No. 2/3Q (02-04)
QUARTERL REPORT OF NATURAL coM S
IDENTIFICATION tl,
01 Exact Legal Name of Respondent
Avista Corporation
V"*lP.rrO ot n"l.,t
End of 2017iQ4
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'l East Mission Avenue, Spokane, WA 99207
05 Name of Contact Person
Ryan L. Krasselt
06 Title of Contact Person
VP, Controller, Prin. Acctg. Officer
07 Address of Contact Person (Street, City, State, Zip Code)
1411 East Mission Avenue, Spokane, WA 99207
Etr
This Report ls:
(1)
(2)
An Original
A Resubmission
10 Date of Report
(Mo, Da, Y0
04t11t2018
08 Telephone of Contact Person, lncluding Area Code
509495-2273
ANNUAL CORPORATE OFFICER CERTIFICATION
The undersigned officer certifies that:
I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct
statements of the business affairs of the respondent and the financial statements, and otherfinancial information contained in this report, conform in all
material respects to the Uniform System of Accounts.
11 Name
Ryan L. Krasselt
12 Title
VP, Controller, Prin. Acctg. Officer
13 Signature
Ryan L. Krasselt L^. r-. \c,aan;l ',l4 Date Signed
04t11t2018
Title 1 8, U.S.C. 1001 ,'thakes it a crime for any person knowingly and willingly to make to any Agency or Department of the United States any
false, fictitious or fraudUlent statements as to any matter within its jurisdiction.
FERC FORM NO.2/3Q (02-04)Page 1
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t',t1t2018
Year/Period of Report
End ot 20171Q4
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.
Tifle of Schedule
(a)
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS
,|General lnformation 101
2 Conhol Over Respondent 102 N/A
3 Corporations Controlled by Respondent 103
4 Security Holders and Voting Powers 107
5 lmportant Changes During the Year '108
6 Comparative Balance Sheet 110-113
7 Statement of lncome for he Year 114-116
8 Statement of Accumulated Comprehensive lncome and Hedging Activities 117
I Statement of Retained Eamings for the Year 118-119
10 Statements of Cash Flonvs 't20-12'l
11 Notes to Financial Statements 122
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits)
12 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion 200-20'l
13 Gas Plant in Service 204-209
14 Gas Property and Capacity Leased fom Others 212 N/A
15 Gas Property and Capacity Leased to Others 213 N/A
16 Gas Plant Held for Future Use 214
17 Construction Work in Progress-Gas 216
18 Non-Traditional Rate Treatment Afforded New Projects 217 N/A
19 General Description of Conskuction Overhead Procedure 218
20 Accumulated Provision for Depreciation of Gas Utility Plant 219
21 Gas Stored 220
22 lnvestments 222-223
23 lnvestments in Subsidiary Companies 224-22s
24 Prepayments 230
25 Extraordinary Property Losses 230 N/A
26 Unrecovered Plant and Regulatory Study Costs 230 N/A
27 Other Regulatory Assets 232
28 Miscellaneous Deferred 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
lnstallmenh 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)
ReDort ls:
lxlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
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.
Tite 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
4',!Miscellaneous Current and Accrued Liabilities 268
42 Other Deferred Credits 269
43 Accumulated Deferred lncome Taxes-Other Property 274-275
44 Accumulated Deferred lncome Taxes-Other 276-277
45 Oher Regulatory Liabilities 278
INCOME ACCOUNT SUPPORTING SCHEDULES
46 Monhly Quantity & Revenue Data by Rate Schedule 299 N/A
Gas Operating Revenues 300-301
Revenues from Transportation of Gas of Others Through Gathering Facilities 302-303 N/A
49 Revenues from Transportation of Gas of Othen Through Transmission Facilities N/A
50 Revenues from Storage Gas of Otfrers 306-307 N/A
51 Other Gas Revenues 308
52 Discounted Rate Services and Negotiated Rate SeMces 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 Ohers 332 N/A
57 Oher Gas Supply Expenses 334
58 Miscellaneous General Expenses-Gas 335
59 Depreciation, Depletion, and Amortization of Gas Plant 336-338
60 Particulars Concerning Certain lnmme Deduction and Interest 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
7',\Gas Account-Natural Gas s20
72 Shipper Supplied Gas for the Current Quarter 521 N/A
73 System Map 522 N/A
74 Footnote Reference 551
75 Footnote Text 552
76 Stockholder's Reports (check appropriate box)
I Four copies will be submitted
! No annual report to stockholders is prepared
FERC FORM NO.2 (REV 12-07)Page 3
47
48
304-305
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lxlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t1112018
Year/Period of Report
End o'f 20171Q4
General lnformation
1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept and address of offce
where any other corporate books of acmunt are kept if difierent from that where the general corporate books are kept.
Ryan Krasselt, Vice President and Controller, Principal Accounting Officer
141 1 East Mission Avenue
Spokane, WA 99207
incorporated, state that fact and give the type of organization and the date organized.
Slate of Washington, lncorporated March 15,1889
the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased.
Not Applicable
4. State the classes of utility and other services furnished by respondent during the year in each State in which the respondent operated.
Electric service in the states of Washington, ldaho and Montana
Natural gas service in the states of Washington, ldaho and Oregon
5, Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous yea/s certified fnancial
statements?
(1) ! Yes... Enter the date when such independent accountant was initially engaged
(2) E No
FERC FORM NO.2 (12-96)Page 10'l
Name of Respondent
Avista Corporation
This Reoort ls:(1) []nn orisinat(2) l-lA Resubmission
Date of Reoort
(Mo, Da, Yi)
04t11t2018
Year/Period of Report
End of 2017lQ4
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 pafi.
Line
No.
Name of Company Controlled
(a)
Type of Control
(b)
Kind of Business
(c)
Percent Voting
Stock Owned
(d)
Footnote
Reference
(e)
1 Avista Capital D Parent to the Company's '100 Nof used
2 subsidiaries
3 Avista Development Maintains investrnent portfolio incl Real
Estate.
100 A/of rsed
4 Avista Energy I lnactive 100 Nof used
5 Pentzer Corporation Parent of Bay Area Mfg and Penture
Venture Hldngs
100 Nof used
6 Bay Area Manufacturing I Holding co of AM&D dba MetalFX 100 Nof used
7 Advanced Manufacturing & Development I Custom mfg of electronic enclosures 89 Nof used
B dba MetalFX Nof used
I
10 Avista Capital ll D Affliliated business bust issue pref trust
sec
100 Nof used
11 Avista Northwest Resources, LLC Owns an interest in a venturefund
investment
'100 Nof used
12 Steam Plant Square, LLC I Commercial offce and Retail leasing 100 Aloi used
13 Courtyard ffice Center, LLC I Commercial office and retail leasing 100 Not used
14 Steam Plant Brew Pub, LLC I Restaurant Operations 100 Nof used
't5
16 Alaska Energy and Resources Company D Parent company of Alaska operations 100 /Vof used
17 Alaska Electric Light and Power Company Utiltiy operations based in the city and
borough
'100 Nof used
1B 0fJuneau, AK
'19 AJT Mining Properties, lnc lnactive mining company holding
certain properties
100 Not useo
20 Snettisham Elecbic Company Holds certain rights to purchase the
Snettisham
100 Nof used
21 Hydroelecbic project in the city &
borough of
22 Juneau, AK
23 Salix, lnc Liquefied Natural Gas Operations. See
Footnote
100 Noi.rsed
24
25 PenEer Venture Holdings ll, lnc I Holding Company - lnactive 100 Nof used
26
27
28
FERC FORM NO.2 (12-96)Page 103
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn originat(2) !A Resubmission
Date of Report(Mo, Da, Y0
04t'11120'18
Year/Period of Reporl
End of 2017lQ4
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 securi$
holders as of the close of the year. Arrange the names of the security holders in the order of voting power, commencing with the
highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders.
2. lt 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 securi$. 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, warrants, or rights. Specify the amount of such securities or assets any officer, director, associated
company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to
any securities substantially all of which are outstanding in the hands of the general public where the options, warrants, or rights were
1 . Give date of the latest closing of the stock
book prior to end ofyear, and, in a footnote, state
the purpose of such closing:
2. State the total number of votes cast at lhe latest general
meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by proxy.
Total:
By Proxy:
58397248
58397248
3. Give the date and place of
such meeting:
511112017: Spokane, WA
Line
No.
Name (Title) and Address of
Security Holder
(a)
VOTING SECURITIES
4. Number of votes as of (date): fl0112017
Total Votes
(b)
Common Stock
(c)
Preferred Stock
(d)
Other
(e)
5 TOTAL votes of all voting securities 64,997,1 s1 64,997,1 51
6 TOTAL number of security holders 7,908 7,908
7 TOTAL votes of security holders listed below 61,032,768 61,032,768
a
I Computershare Trust Company NA as escroil agent for registered
shareholders:
10
11 Cede & Company, New York, NY 60,621,828
12 Malcom A Menzies; Juneau AK 1 13,301 1 13,301
13 Mark T Thies; Spokane, WA 71,678
14 Scoft L Morris; Spokane, WA 41,706
15 Neib F Larsen & Wilhelmine Larsen JT Ten; Junea, AK 39,312 39,312
16 Jane N Mackinnon; Juneau, AK 37,347 37,347
17 Dennis P. Vermillion; Spokane, WA 32,884
18 Roger D. Woodworth; Colbert, WA 26,770 26,770
19 William A Dickerhoof; Palos Park, lL 25,295 25,299
20 Thomas R Quinlan or Ann M Quinlan Trustees of Quinlan Trust Juneau, AK 22,643 22,643
FERC FORM NO. 2 (12-96)Page 107
12tVpA17
60,621,82r
71,67t
4',1,701
32,88,
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
041't1t2018
Year/Period of Report
20't7tQ4
FOOTNOTE DATA
107 Line No.: 11 Column: c
Schedule Paqe: 107 Line No.: 1 Column:1
To 12115117 dividend
Per schedule 13G filed with the by Blackrock, lnc. 40 E. 52nd Street, New York, NY and the Vanguard Group, 100
Vanguard Blvd, Malvern, PA, as of December 31,2017, each held shares through Cede & Company and was a beneficial
owner ol 18.3o/o and 10 of Avista common stock
Mr. Thies holds an additional26,690 shares in a brokerage account, which are included in the totalamount registered
under Cede for total of res
Mr. Morris an additional 142,278 shares in a brokerage account, which are included in the total amount registered
under & Com for total 183 894 shares.
Mr. Vermillion holds an additional 8,689 shares in a brokerage account, which are included in the total amount registered
under Cede & Company above, for total security holdings of 41,573 shares.
FERC FORM NO. 2 (12-96)Paqe 552.1
107 Line No.: 13 Column: c
I Line No.: 14 Column: c
No.:17 Column: c
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
20171Q4
lmportant Changes During the Quarter/Year
Give details concerning 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 fom lvhom 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 companies by reorganization, merger, or consolidation with other companies: Give names of companies
involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission
authorization.
3. Purchase or sale of an operating unit or system: Briefly describe the property, and the related transactions, and cite Commission
authorization, if any was required. Give date journal 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 effective
dates, lengths of terms, names of parties, rents, and other conditions. State name of Commission authorizing lease and give reference to such
authorization.
5. lmportant extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or
ceased and cite Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate
annual revenues of each class of service.
Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase
contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such
arrangements, etc.
6. Obligations incurred 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 company 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.
1 2. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred 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. On July 19,2017, Avista Corp. entered into a definitive merger agreement to become an indirect,
wholly-owned subsidiary of Hydro One Limited, Ontario's largest electricity transmission and distribution
provider, based in Toronto. The proposed merger is subject to Avista Corp. shareholder approval and various
regulatory approvals, and the merger is expected to close in the second half of 201 8, upon receipt of such
approvals. Reference is made to Note 3 of the Notes to Financial Statements for further information.
4. None
5. None
6. Reference is made to Notes l0 and I I of the Notes to Financial Statements. In addition, the $90 million debt
issuance referenced in Notes l0 and 1 1 was approved by regulatory commissions as follows: WUTC (Docket
No. UE- I 51822 Order 0l ) IPUC (Case No. AVU-U- I 5-01 Order No. 33401) and the OPUC (Docket UF 4294
Order No. 15-305).
7. None
8. Average annual wage increases were 2.5oh for non-exempt employees effective February 20,2017. Average
annual wage increases were 3.lYo for exempt employees effective February 20,2017 . Officers received average
increases of 4.7oh effective February 20,2017.Certain bargaining unit employees received increases of 3.|yo
effective March 26, 2017 .
9. Reference is made to Note l5 of the Notes to Financial Statements.
FERC FORIU NO. 2 (12-96)1 08.1
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017to,4
lmportant Changes During the Quarter/Year
10. None
I t.
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 Washington Utilities and Transportion Commission (WUTC) in February
2015. New electric and natural gas rates were effective on January 11,2016.
The WUTC-approved rates were 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 WUTC also approved a
rate of return (ROR) on rate base of 7 .29 percent, with a common equity ratio of 48.5 percent and a 9.5 percent
Return on Equity (ROE).
WUTC Order Denying Industrial Customers of Northwest Utilities / Public Counsel Joint Motionfor
Clarification, WUTC StaffMotion to Reconsider and WUTC StaffMotion to Reopen Record
On January 19,2016, the Industrial Customers of Northwest Utilities (ICNU) and the Public Counsel
Unit of the Washington State Office of the Attorney General (PC) filed a Joint Motion for Clarification
with the WUTC. In the Motion for Clarification, ICNU and PC requested that the WUTC clarify 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 WUTC's Order.
On January 19,2016, the WUTC Staff, which is a separate party in the general rate case proceedings
from the WUTC Advisory Stafl filed a Motion to Reconsider with the WUTC. In its Motion to
Reconsider, the Staff provided calculations and explanations that suggested that the electric revenue
decrease should have been $27.4 million instead of $8.1 million, based on its reading of the WUTC's
Order. Further, on February 4,2016, the WUTC Staff filed a Motion to Reopen Record for the Limited
Purpose of Receiving into Evidence Instruction on Use and Application of Staff s Attrition Model, and
sought to supplement the record "to incorporate all aspects of the Company's Power Cost Update."
Within this Motion, WUTC Staff updated its suggested electric revenue decrease to $19.6 million.
None of the parties in their Motions raised issues with the WUTC's decision on the natural gas revenue
increase of $10.8 million.
On February 19,2016, the WUTC issued an order (Order 06) denying the Motions summarized above
and affirming Order 05, including an $8.1 million decrease in electric base revenue.
PC Petitionfor Judicial Review
On March 18,2016, PC filed in Thurston County Superior Court a Petition for Judicial Review of the
WUTC'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 ( I ) the WUTC exceeded its statutory authority by setting
rates for our natural and electric services based on amounts for and facilities that are not
FERC FORM 2 108.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
lmportant Changes During the Quarter/Year
"used and useful" in providing utility service to customers; (2) the WUTC 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 WUTC erred in applying the
"end results test" to set rates for our electric operations that are not supported by the record; (4) the
WUTC did not correct its calculation of our electric rates after significant effors were brought to its
attention; and (5) the WUTC's calculation of our electric rates lacks substantial evidence.
PC is requesting that the Court (l) vacate or set aside portions of the WUTC's orders; (2) identify the
effors contained in the WUTC's orders; (3) find that the rates approved in Order 05 and reaffirmed in
Order 06 are unlawful and not fair, just and reasonable; (4) remand the matter to the WUTC 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 certiff this matter
for review directly by the Court of Appeals, an intermediate appellate court in the State of Washington.
The matter was certified on April 29,2016 and accepted by the Court of Appeals on July 29,2016. On
Jluly 7,2017, ICNU filed a brief in support of PC and the WUTC and Avista Corp. responded. Oral
argument was held on October 24,2017 before the court. A decision from the Court is expected
sometime in 2018.
In its brief to the Court, the WUTC, while defending the use of its attrition adjustment, nevertheless
requested a partial remand back to the WUTC to reevaluate its implementation of our power cost update
as part of the 2015 general rate case, doing so by means of a supplemental evidentiary hearing. The
power cost update at issue represents approximately $12.0 million of costs.
The new rates established by Order 05 will continue in effect while the Petition for Judicial Review is
being considered. We believe the WUTC'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 WUTC, it may result
in a refund liability to customers of up to $9.5 million, which is net of a refund for Washington electric
customers of approximately $2.5 million related to the 2016 provision for earnings sharing that we have
already accrued. The potential refund liability amount is limited to 2016 revenues and would not impact
2017 revenues collected from customers.
2016 General Rate Cases
In December 2016, the WUTC issued an order related to our Washington electric and natural gas general rate
cases that were originally filed with the WUTC in February 2016. The WUTC order denied the Company's
proposed electric and natural gas rate increase requests of $38.6 million and $4.4 million, respectively.
Accordingly, our electric and natural gas retailrates remained unchanged in Washington State following the
order.
The primary reason given by the WUTC in reaching its conclusion was 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. In support of its decision, the WUTC stated that we did not demonstrate that our current revenue
was insufficient for covering costs and providing the opportunity to earn a reasonable return during the 2017
rate period. The WUTC also stated that we did not demonstrate that our capital expenditures and increased
FERC FORM NO. 2 ({2-96)108.3
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
0/,t1112018
Year/Period of Report
2017tQ4
lmportant Ghanges During the Quarter/Year
operating costs are both necessary and immediate.
We determined that an appeal of the WUTC's decision to the courts would involve 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 concluded greater long-term
value could be achieved through focusing on new general rate cases than through appealing the WUTC's
decision in the courts.
2017 General Rate Cases
On May 26,2017, we filed two requests with the WUTC to recover costs related to power supply and operating
costs as well as capital investments made since the last determination of our rate base in the 2015 Washington
general rate cases.
The two filings are summarized as follows:
Power Cost Rate Adjustment
The first filing was an electric only power cost rate adjustment (PCRA) that was designed to update and
reset power supply costs, effective September 1,2017. We requested an overall increase in billed electric
rates of 2.9 percent (designed to increase annual electric revenues by $15.0 million). On August 10,
2017,the PCRA filing was denied by the WUTC.
An increased levelof power supply costs is included in ourpending general rate case in Washington,
which is scheduled to conclude by April 26,2018. The denial of the PCRA by the WUTC does not affect
our general rate requests discussed below.
General Rate Requests
The second request related to electric and natural gas general rate cases. We filed three-year rate plans
for electric and natural gas and have requested the following for each year (dollars in millions):
Electric NaturalGas
Effective Date
Proposed
Revenue
Increase
Proposed Base
Proposed
Revenue
Increase
Proposed Base
May 1,2018 (l)
May l, 2019 (l) (2)
May l, 2020 (l) (2)
$
$
s
54.4
13.5
13.9
I t.t% $
2.s% $
2.s% $
6.6
3.7
3.8
7.5%
3.9/o
3.9/o
(l) The revenue and base rate increases in the table above reflect reductions from what was originally
filed primarily due to changes in the timing of planned capital projects.
(2) As apart of the electric rate plan, we have proposed to update power supply costs through a Power
Supply Update, the effects of which would also go into effect on May 1,2019 and May 1,2020.The
requested revenue increases for 201 9 and 2020 do not include any power supply adjustments.
Our request is based on a proposed ROR of 7 .76 percent with a common equity ratio of 50.0 percent and
a 9.9 percent ROE.
FERC FORM NO. 2 (12-96)108.4
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
lmportant Changes During the Quarter/Year
As a part of the three-year rate plan, if approved, we would not file another general rate case untilJune 1,
2020, with new rates effective no earlier than May 1,2021.
The major drivers of these general rate case requests is to recover the costs associated with our capital
investments to replace infrastructure that has reached the end of its useful life, as well as respond to the
need for reliability and technology investments required to maintain our integrated energy services grid.
Among the capital investments included in the filings are:
o Major hydroelectric investments at the Little Falls and Nine Mile hydroelectric plants.
o Generator maintenance at the Kettle Falls biomass plant that will ensure efficient generation and
operations.
o The ongoing project to systematically replace portions of natural gas distribution pipe in our service
area that were installed prior to 1987, as well as replacement of other natural gas service equipment.
o Transmission and distribution system and asset maintenance, such as wood pole replacements, feeder
upgrades, and substation and transmission line rebuilds to maintain reliability for our customers.
o Technology upgrades that support necessary business processes and operational efficiencies that
allow us to effectively manage the utility and serve customers.
o A refresh of the customer-facing website, providing relevant information, greater accessibility on
mobile devices, easier navigation, and a streamlined payment experience.
The WUTC has up to I I months to review the general rate case filings and issue a decision, which is
scheduled to be issued by April 26,2018.
On October 27 ,2017, WUTC Staff and other parties to our electric and natural gas general rate cases
filed their testimony. These parties recommended lower revenue requirements than what we proposed in
our original filings. WUTC Staff also recommended that our power cost adjustment of approximately $16
million be denied, and that the existing level of power supply costs included in base rates be continued
until either (a) our next general rate case or (b) the cumulative deferral balance in the ERM drops below
$10 million.
Additionally, the WUTC Staff recommended the exclusion of our 201 6 settlement costs of interest rate
swaps from the cost of capital calculation. The total amount of 2016 settlement costs was $54.0 million,
with approximately 60 percent of this total being allocable to Washington.
In addition to our 2016 settlement costs of interest rate swaps, we have a net regulatory asset of $8.8
million for interest rate swaps settled during 2017, and a net regulatory asset of $66.0 million for
unsettled interest rate swaps as of December 3l ,2017 related to forecasted debt issuances. Of those
amounts, approximately 60 percent are allocable to Washington. If recovery of the 2016 settlement costs
referenced above are not approved by the WUTC, this could change our current conclusion that2017
settlement costs of interest rate swaps and the unsettled interest rate swaps are probable of recovery
through rates. If we concluded that recovery of these swap settlement costs was no longer probable, we
would be required to derecognize the related regulatory assets and liabilities with an adjustment through
the income statement, and any subsequent gains and losses would be recognized through the income
statement rather than being recorded as a regulatory asset or liability.
Interest rate swaps are a tool used throughout multiple industries to manage interest rate risk. They also
provide certainty for future cash flows associated with future borrowings. Since interest costs are
FERC FORM NO. 2 (12-96)'108.5
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1112018
Year/Period of Report
2017tQ4
lmportant Changes During the Quarter/Year
included in our costs of service to be recovered from our customers, we have used this tool to manage
these costs for the benefit of our customers. The settlement of interest rate swaps results in either a
benefit or a cost to us which, in either case, has historically been reflected in rates authorized by the
WUTC in general rate cases. Accordingly, we still believe the interest rate swap payments are probable
of recovery and will continue to work through the rate case process. Depending on the outcome of this
proceeding, we could determine to not manage interest rate risk through swap transactions in the future.
Idaho General Rate Cases
2016 General Rate Cases
In December 2016, the Idaho Public Utilities Commission (IPUC) approved a settlement agreement between us
and other parties, concluding our electric general rate case originally filed in May 2016. New rates were
effective on January 1,2017. We did not file a natural gas generalrate case in 2016.
The settlement agreement increased annual electric base rates by 2.6 percent (designed to increase annual
electric revenues by $6.3 million). The settlement was based on a ROR of 7.58 percent with a common equity
ratio of 50 percent and a 9.5 percent ROE.
2017 General Rate Cases
On December 28,2017, the IPUC approved a settlement agreement between us and other parties to our electric
and natural gas general rate cases. New rates were effective on January 1,2018 and additional rate changes will
take effect on January 1, 2019.
The settlement agreement is a two-year rate plan and has the following electric and natural gas base rate
changes each year, which are designed to result in the following increases in annual revenues (dollars in
millions):
Electric Natural Gas
Effective Date
Revenue
Increase
Base
Rate lncrease
Revenue
Increase
Base
Rate Increase
January 1,2018
January 1,2019
$
$
12.9
4.5
5.7/o $
LSlo $
1.2
l.l
2.9/o
2.7/o
The settlement agreement is based on a ROR of 7 .61 percent with a common equity ratio of 50.0 percent and a
9.5 percent ROE.
As a part of the two-year rate plan the Company will not file a new general rate case for a new rate plan to be
effective prior to January 1,2020.
Oregon General Rate Cases
2015 General Rote Case
In February 2016, the Oregon Public Utilities Commission (OPUC) issued a preliminary order (and a final
order in March 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 l,
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)
04t11t2018
Year/Period of Report
2017tO4
lmportant Chanqes Durinq the Quarter/Year
2016. The final OPUC order 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
In September 2017, the OPUC approved a settlement agreement between us and other parties to our natural gas
general rate case that was filed with the OPUC in November 2016, which resolved all issues in the case.
The OPUC approved rates designed to increase annual base revenues by 5.9 percent or $3.5 million. A rate
adjustment of $2.6 million became effective October 1,2017 , and a second adjustment of $0.9 million became
effective on November 1,2017 to cover specific capital projects identified in the settlement agreement, which
were completed in October.
In addition, in the settlement agreement, we agreed to non-recovery of certain utility plant expenditures, which
resulted in a write-off of $0.8 million in the second quarter of 2017 .
The settlement agreement reflects a 7 .35 percent ROR with a common equity ratio of 50 percent and a 9.4
percent ROE.
12. On May 11,2017, John F. Kelly, lead director of the Avista Corp. Board of Directors retired from the
Board, due to him reaching the mandatory retirement age of 72. Kristianne Blake was elected by the Board of
Directors to replace Mr. Kelly as the lead director, effective at the conclusion of the annual shareholder meeting
on May ll,2017 .
On November 1,2017, Kelly Norwood, Vice President, State and Federal Regulation retired from the
Company. Kevin Christie, currently Avista Corp.'s Vice President, Customer Solutions, will assume
responsibility for the Company's rates and regulatory activities, while continuing his role in Customer
Solutions. Effective January 1,2018, Kevin Christie has been named Vice President, External Affairs and Chief
Customer Officer.
On November 2l,2017,the Board of Directors of Avista Corp. named Dennis Vermillion as President of
Avista Corp effective January I ,2018. Prior to becoming President of Avista Corp., Mr. Vermillion, served as
Avista Corp. Senior Vice President and Environmental Compliance Officer and President of Avista Utilities.
Scott Morris, who was President of Avista Corp., willremain as Chairman of the Board and Chief Executive
Officer.
Also on November 21,2017, the Board of Directors of Avista Corp. increased the number of board members
from l0 to I I and elected Mr. Vermillion to fill the vacancy and serve as a director on the board, effective
January 1,2018.
FERC FORM NO. 2 (12-96)108.7
Mr. Vermillion will stand for election to the board at the next annual meeting of shareholders on May 12,2018.
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
2017tQ4
lmportant Changes During the Quarter/Year
As an employee director, Mr. Vermillion will receive no compensation, consistent with the other employee
directors of Avista Corp., as disclosed in Avista Corp.'s definitive Proxy Statement dated March3l,2017.
Effective January 1,2018, Bryan Cox, has been named Vice President Safety and HR Shared Services. Prior to
being named as Vice President, Mr. Cox was Senior Director of HR Operations.
In addition, see item 3 above regarding the definitive merger agreement with Hydro One Limited, which will
result in Hydro One Limited purchasing all of the issued and outstanding Avista Corp. common stock upon
approval of the merger transaction.
13. Proprietary capital is not less than 30 percent.
FERC FORM NO. 2 108.8
Name of Respondent
Avista Corporation
ls:
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04111t2018
Year/Period of Report
End ot 20171Q4
Comparative Balance Sheet (Assets and Other Debits)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
QuafterfYear Balance
(c)
Prior Year
End Balance
12t31
(d)
1 UTILITY PLANT
2 Utility Plant (101-106, 114)200-20'l 5,650,433,358 5,304,257,392
3 Construction Work in Progress (107)200-20'l 't51,271,170 144,751,274
4 TOTAL Utility Plant (Total of lines 2 and 3)200-201 5,801,704,528 5,449,008,666
5 (Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115)1,876,263,672 1,770,511,420
6 Net Utility Plant (Total of line 4 less 5)3,925,440,856 3,678,497,246
7 Nuclear Fuel (120.1 thru 120.4, and 120.6)0 0
8 (Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.5)0 0
I Nuclear Fuel (Total of line 7 less 8)0 0
10 Net Utility Plant (Total of lines 6 and g)3,925,440,856 3,678,497,246
11 Utility Plant Adjustments (1 16)122 0 0
't2 Gas Stored-Base Gas (1 17.1)220 6,992,076 6,992,076
13 System Balancing Gas (117.2)220 0 0
14 Gas Stored in Reservoirs and Pipelines-Noncurrent (1 17.3)220 0 0
15 Gas Owed to System Gas (117.4)220 0 0
16 OTHER PROPERTY AND INVESTMENTS
17 Nonutility Property ('121)3,010,81 1 3,058,415
18 (Less) Accum. Provision for Depreciation and Amortization (122)104,487 2't1,651
19 lnvestments in Associated Companies ('123)222-223 11,547,000 11,547,000
20 lnvestments in Subsidiary Companies ('123.'t)224-225 161,131,682 161 ,804,1 56
21 (For Cost of Account I 23.'l See Footnote Page 224, line 40)
22 Noncurrent Portion of Allowances 0 0
23 Other lnvestments (124)222-223 4,288,775 6,945,185
24 Sinking Funds (125)0 0
25 Depreciation Fund (126)0 0
26 Amortization Fund - Federal (127)0 0
27 Other Special Funds (1 28)16,722,286 13,61 1,799
28 Long-Term Portion of Derivative Assets (1 75)2,575,446 5,356,765
29 Long-Term Portion of Derivative Assets - Hedges (1 76)0 0
30 TOTAL Other Property and lnvestments (Total of lines 17-20,22-29)199,171,513 202J11,669
31 CURRENT AND ACCRUED ASSETS
32 Cash (131)2,912,504 1,373,667
33 Special Deposits (132-1 34)12,284,827 7,540,762
34 Working Funds (135)1,149,696 1,138,883
35 Temporary Cash lnvestments (136)222-223 50,305 22,854
36 Notes Receivable (141)0 0
37 Customer Accounts Receivable ( 142)174,683,07'l 172,903,0s2
3B Other Accounts Receivable (143)5,614,311 4,163,026
39 (Less) Accum. Provision for Uncollectible Accounts - Credit (144)5,',t70,026 4,961,486
40 Notes Receivable from Associated Companies (145)1 1 ,659,191 0
41 Accounts Receivable from Associated Companies (146)313,553 462,036
42 Fuel Stock (151)3,958,296 3,566,367
43 Fuel Stock Expenses Undistributed (152)0 0
FERC FORM NO. 2 (REV 06-04)Page 110
Name Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Reoorl
(Mo, Da, Yi)
04t11t2018
Year/Period of Report
End ot 20171Q4
Comparative Balance Sheet (Assets and Other Debits)(continued)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
QuarterfYear Balance
(c)
Prior Year
End Balance
12131
(d)
44 Residuals (Elec) and Extracted Products (Gas) (153)0 0
45 Plant Materials and Operating Supplies (154)38,180,423 37,423,657
46 Merchandise (155)0 0
47 Other Materials and Supplies (156)0 0
48 Nuclear Materials Held for Sale (157)0 0
49 Allowances ('158.1 and 158.2)0 0
50 (Less) Noncurrent Portion of Allowances 0 0
51 Stores Expense Undistributed (1 63)0 ( 86)
52 Gas Stored Underground-Current (164.1)220 '11,738$07 8,029,020
53 Liquefied Natural Gas Stored and Held for Processing (164.2 thru '164.3)220 0 0
54 Prepayments (165)230 19,333,312 14,459,235
55 Advances for Gas (166 thru 167)0 0
56 lnterest and Dividends Receivable (171)172,493 107,608
57 Rents Receivable (172)2,101,93',1 1,429,562
58 Accrued Utility Revenues (173)0 0
59 Miscellaneous Current and Accrued Assets (174)138,513 537,127
60 Derivative lnstrument Assets (1 75)6,197,881 10,644,436
61 (Less) Long-Term Portion of Derivative lnstrument Assets (175)2,575,446 5,356,765
62 Derivative lnstrument Assets - Hedges (176)0 0
63 (Less) Long-Term Portion of Derivative lnstrument Assests - Hedges (1 76)0 0
04 TOTAL Current and Accrued Assets (Total of lines 32 thru 63)282,743,442 253,482,955
65 DEFERRED DEBITS
66 Unamortized Debt Expense (181)10,945,098 11,690,512
67 Extraordinary Property Losses (182.'l)230 0 0
68 Unrecovered Plant and Regulatory Study Costs ('182.2)230 0 0
69 Other Regulatory Assets (182.3)232 621,273,693 622,464,411
70 Preliminary Survey and lnvestigation Charges (Electric)(1 83)'t9s,568 0
71 Preliminary Survey and lnvestigation Charges (Gas)(183.1 and 183.2)299 0
72 Clearing Accounts (184)69,497 13,933
73 Temporary Facilities (1 85)0 0
74 Miscellaneous Deferred Debits (1 86)233 1 5,796,1 70 43,850,403
75 Deferred Losses trom Disposition of Utility Plant ( 187)0 0
76 Research, Development, and Demonstration Expend. (188)0 0
77 Unamortized Loss on Reacquired Debt (189)11,879,551 13,699,992
78 Accumulated Deferred lncome Taxes (190)23r',-235 189,216,780 147,354,707
79 Unrecovered Purchased Gas Costs (19'l)( 37,474,157)( 30,819,635)
80 TOTAL Deferred Debits (Total of lines 66 thru 79)81 1,902,499 808,254,323
81 TOTAL Assets and Other Debits (Total of lines 10-1 5,30,64,and 80)5,226,250,386 4,949,338,269
FERC FORM NO.2 (REV 06-04)Page 111
I
S:
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, YD
o4t't1t2018
Year/Period of Report
End ot 20171Q4
Comparative Balance Sheet (Liabilities and Other Credits)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
Quarter^fear
Balance
Prior Year
End Balance
't2t31
(d)
1 PROPRIETARY CAPITAL
2 Common Stock lssued (201)250-251 1,109,643,921 1,052,578,756
3 Preferred 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
Other Paid-ln Capital (208-211)253 ( 1 0,696,71 1)( 9,506,476)
8 lnstallments Received on Capital Stock (212)2s2 0 0
I (Less) Discount on Capital Stock (213)254 0 0
10 (Less) Capital Stock Expense (214)254 ( 34,500,271)( 32,208,771)
11 Retained Earnings (215, 215.1, 216\1't8-11I 604,413,488 582,156,946
12 Unappropriated Undistributed Subsidiary Earnings (216.1)118-119 56,1 39 ( 1,143,222)
13 (Less) Reacquired Capital Stock (217)250-251 0 0
14 Accumulated Other Comprehensive lncome (2'l 9)117 ( 8,089,542)( 7,567,509)
15 TOTAL Proprietary Capital (Total of lines 2 thru 14)1,729,827,566 1,U8,727,266
16 LONG TERM DEBT
17 Bonds (221)256-257 1,711,700,000 1,621,700,000
1B (Less) Reacquired Bonds (222)256-257 83,700,000 83,700,000
19 Advances from Associated Companies (223)256-257 51,il7,000 51,547,000
20 Other Long-Term Debt (224)256-257 0 0
21 Unamortized Premium on Long-Term Debt (225)258-259 159,900 168,783
22 (Less) Unamortized Discount on Long-Term DebtDr (226)258-259 786,481 960,522
23 (Less) Current Portion of Long-Term Debt 0 0
24 TOTAL Long-Term Debt (Total of lines 17 thru 23)1,678.920.4't9 1,588,755,261
25 OTHER NONCURRENT LIABILITIES
26 Obligations Under Capital Leases-Noncurrcnl (227)0 2,402,917
27 Accumulated Provision for Propefi lnsurance (228.1)0 0
28 Accumulated Provision for lnjuries and Damages (228.2)245,000 260,000
29 Accumulated Provision for Pensions and Benefits (228.3)203,565,903 226,551,767
30 Accumulated Miscellaneous Operating Provisions (228.4)0 0
31 Accumulated Provision for Rate Refunds (229)4,906,78'l 6,600,086
FERC FORM NO.2 (REV 06-04)Page 112
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ol 20171Q4
Comparative Balance Sheet (Liabilities and Other Creditsxcontinued)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
Quarterl/ear
Balance
Prior Year
End Balance
12t31
(d)
32 Long-Term Portion of Derivative lnstrument Liabilities 't0,456,971 41,994,092
33 Long-Term Portion of Derivative lnstrument Liabilities - Hedges 0 0
34 Asset Relirement Obligations (230)17,481,829 15,514,534
35 TOTAL Other Noncurrent Liabilities (Total of lines 26 thru 34)236,656,484 293,323,396
36 CURRENT AND ACCRUED LIABILITIES
37 0 0
38 Notes Payable (231)105,000,000 120,000,000
39 Accounts Payable (232)100,959,825 111,124,132
40 Notes Payable to Associated Companies (233)0 5,634,684
4',|Accounts Payable to Associated Companies (234)22,197 37,625
42 Customer Deposits (235)4,431,306 3,808,551
43 Taxes Accrued (236)262-263 36,514,038 ( 16,431,293)
44 lnterest Accrued (237)1 5,1 59,301 14,676,249
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 ,533,1 87 't,431,933
49 Miscellaneous Current and Accrued Liabilities (242)268 59,386,964 58,068,093
50 Obligations Under Capital Leases-Current (243)2,402,917 871,667
51 Derivative lnstrument Liabilities (2,14)53,752,463 55,076,777
52 (Less) Long-Term Portion of Derivative lnstrument Liabilities 10,456,971 41,994,092
53 Derivative lnstrument Liabilities - Hedges (245)0 0
54 0 0
55 TOTAL Current and Accrued Liabilities (Total of lines 37 thru 54)368,705,227 312,304,326
56 DEFERRED CREDITS
57 Customer Advances for Construction (252)1,584,319 2,266,861
58 Accumulated Deferred lnvestment Tax Credits (255)30,265,611 31 ,501,931
59 Deferred Gains from Disposition of Utility Plant (256)0 0
60 Other Deferred Credits (253)269 28,032,143 't5,262,118
61 Other Regulatory Liabilities (254)278 501,',t43,487 77,740,268
62 Unamortized Gain on Reacquired Debt (257)260 1,707,433 1,836,970
63 Accumulated Deferred lncome Taxes - Accelerated Amortization (281)0 0
64 Accumulated Deferred lncome Taxes - Other Property (282)481,835,128 731,',t62,121
65 Accumulated Deferred lncome Taxes - Other (283)167,572,569 246,457,75',1
66 TOTAL Deferred Credits (Total of lines 57 thru 65)1,212,140,690 1,106,228,020
67 TOTAL Liabilities and Other Credits (Total of lines 15,24,35,55,and 66)5,226,250,386 4,949,338,269
FERC FORM NO.2 (REV 06-04)Page 113
Current Portion of Long-Term Debt
(Less) Long-Term Portion of Derivative lnstrument Liabilities - Hedges
Name of Respondent
Avista Corporation
This ReDort ls:(1) fiRn originat(2) !A Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Statement of lncome
Quarterly
1 . Enter in column (d) the balance for the reporting quarter and in column (e) the balance for the same three month period for the prior year.
other utility function for the current year quarter.
other utility function for the prior year qua(er.
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 and 41 3, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to a utility department.
Spread the amount(s) over lines 2 thru 26 as appropriate. lnclude these amounts in columns (c) and (d) totals.
7. Report amounts in account 4'14, Other Utility Operating lncome, in the same manner as accounts 412 and 413 above.
8. Report data for lines 8, '10 and 1 1 for Natural Gas companies using accounts 404.1 , 404.2, 4O4.3, 407 .1 and 407 .2.
9. Use page 122 for important notes regarding the statement of income for any account 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 effected the gross revenues or costs to which the
contingency relates and the tax effects together wrth an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid
with respect to power or gas purchases.
1 1 Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding atfecting
revenues received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accounts.
12. 11 any notes appearing in the report to stokholders are applicable to the Statement of lncome, such notes may be included at page 122.
1 3. Enter on page 122 a concise explanation of only those changes in accounting mehods made during the year which had an effect on net income, including the basis of
allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes.
14. Explain in a footnote if the previous yea/s/quarter's figures are different from that reported in prior reports.
Title of Account
Line (a)
No.
Reference
Page
Number
(b)
Total
CunentYear to
Date Balance
lor 0uarterlYear
(c)
Total
Prior Year to Date
Balance
for Quarter/Year
(d)
Cunent Three
Months Ended
Qua(erly Only
No Fourth Quarter
(e)
Prior Three
Months Ended
Quarterly Only
No Fourth Ouarter
0
1 UTILITY OPERATING INCOME
2 3as Operating Revenues (400)30G301 1,4U,122,332 1,476,215J23 0 0
3 Sperating Expenses
4 Operation Expenses (401)317-325 820,637J25 858,140,856 0 0
5 Maintenance Expenses (402)317-325 71,114,817 68,632,689 0 0
6 Depreciation Expense (403)33&338 137,234,038 130,221,417 0 0
7 Depreciation Expense for Asset Retirement Costs (403.1 )33&338 263,254 0 0 0
8 Amo(ization and Depletion of Utility Plant (404-405)33&338 30,487,s81 %,554,225 0 0
I Amo(ization ol Utility Plant Acu. Adjustment (406)JJGJJb 99,047 99,047 0 0
10 Amort. of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.1)C 0 0 0
11 Amo(ization of Conversion Expenses (407,2)C 0 0 0
12 Regulatory Debits (407,3)4,471,024 2,541,927 0 0
13 (Less) Regulatory Credits (407.4)8,041,294 1,790,145 0 0
14 Taxes Other than Income Taxes (408.1 )262-263 103,2U,021 96,21 8,096 0 0
15 lncome Taxes-Federal (409,1 )262-263 22,710,789 ( 37,366,331)0 0
16 lncome Taxes-Other (409.1)262-263 540,80i 379,481 0 0
17 Provision ol Defered lncome Taxes (410.1)234-235 61,887,4si 102,646,826 0 0
18 (Less) Provision for Defened lncome Taxes-Credit (41 1.1 )2U-235 1,719,631 1,622,706 0 0
19 lnvestment Tax Credit Adjustment-Net (41 1 .4)( 401,6761 18,862,745 0 0
20 (Less) Gains from Disposition of Utility Plant (41 1,6)C 0 0 0
21 Losses from Disposition of Utility Plant (41 1,7)C 0 0 0
22 (Less) Gains from Disposition ofAllowances (41'1.8)c 0 0 0
23 Losses from Disposition of Allowances (41'1.9)C 0 0 0
24 Accretion Expense (41 1,10)795,991 0 0 0
25 TOTAL Utility Operating Expenses (Total ol lines 4 thru 24)1,243,313,U1 1,263,518,127 0 0
26 Net Utility Operating lncome Clotal of lines 2 less 25) (Carry forward to page 1 16,
line 27)220,808,991 212,696,996 0
FERC FORM NO.2 (REV 06-04)Page 1'14
(
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Originat(2) [-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Statement of lncome
Line
No.
Elec. Utility
Current
Year to Date
(in dollars)
(s)
Elec. Utility
Previous
Year to Date
(in dollars)
(h)
Gas Utility
Current
Year to Date
(in dollars)
(D
Gas Utility
Previous
Year to Date
(in dollars)
(i)
Other Utility
Current
Year to Date
(in dollars)
(k)
Other Utility
Previous
Year to Date
(in dollars)
(t)
1
2 989,932,258 1,004,897,624 474,190,074 471,317,499 0 U
3
4 496,458,475 523,294,682 324,178,650 334,846,174 0 0
5 56,154,163 53,468,423 14,960,654 1 5,1 64,266 0 A
6 106,657,1 39 101,769,331 30,576,899 28,452,086 0
7 263,254 0 0 0 0 0
8 22,965,702 20,106,387 7 ,521,879 6,447,838 0
I 99,047 99,047 0 n 0 0
10 0 0 0 0
11 0 0 0 0 0
12 4,261,71s 2.573,428 209,31 0 ( 31,501)0 0
't3 7,669,732 1,781,713 371,562 8,432 0 0
14 77,630,348 74,172,165 25,603,673 22,045,931 U 0
'15 12,447,375 ( 34,063,947)10,263,414 ( 3,302,384)0 0
'16 ( 14,769)365,91 1 555,571 13,570 0 0
17 46,542,613 79,435,289 1 5,344,839 23,211,537 U 0
18 1,507,061 1,397,052 212,570 225,654 0 0
19 ( 381,612)18,887,909 ( 20,064)( 25,164)0 0
20 0 U 0 0 0 0
2'l 0 U 0 0 0 0
22 0 0 0 0 0 U
23 0 0 0 n 0 0
24 795,991 0 U 0 0 0
25 814,702,648 836,929,860 428,610,693 426,588,267 0 0
26 175,229,610 1 67,967,764 45,579,381 44,729,232 0 0
FERC FORM NO. 2 (REV 06-04)Page 115
I
I
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn orisinat(2) [A Resubmission
Date of Report
(Mo, Da, Y0
04t't1t2018
Year/Period of Report
End ot 20'l7lQ4
Statement of lncome(continued)
Line
No.
TiUe of Account Reference
Page
Number
(a)(b)
Total
Cunent Year to
Dale Balance
lor Quarter/fear
(c)
Total
Prior Year to Date
Balance
for 0uarter/fear
(d)
Cunent Thfee
lilonhs Ended
Qua(erly 0nly
No Fourth Quarter
(e)
Prior Three
Monhs Ended
Quarterly 0nly
No Fourth Quarter
(f)
27 Net Ulility operating lncome (Canied loMard from page 114)220,808,991 21 2,696,996 0 0
28 OTHER INCOTE AND DEDUCTIONS
29 Other lncome
30 Nonutility 0perating lncome
31 Revenues lorm Merchandising, Jobbing and Contract Work (415)0 0 0 0
32 (Less) Costs and Expense of Merchandising, Job & Contract Work (416)0 0 0 0
33 Revenues trom Nonutility Operations (41 7)0 0 0 0
34 (Less) Expenses ol Nonutility operations (41 7.1 )9,648,685 1 1,653,482 0 0
35 Nonoperating Rental lncome (418)( 24,801)( e3e)0 0
36 Equity in Eamings of Subsidiary Companles (418.1)119 2,517,761 6,288,876 0 0
37 lnterest and Dividend lncome (419)4,001,578 2,719,466 0 0
38 Allowance lorOther Funds Used During Construction (419.1)6,441,370 7,298,983 0 0
39 l\iliscellaneous Nonoperating lncome (421)0 0 0 0
40 Gain on Disposition ol Property (421 .1 )19,733 240,297 0 0
41 TOTAL ofier lncome flotal of lines 31 thru 40)3,306,956 4,893,201 0 0
42 other lncome Deductions
43 Loss on Disposition of Property (421.2)( 17,500)0 0 0
44 l\riscellaneous Amortization (425)0 0 0 0
45 Donations (426.1)340 3,205,49€2,837JU 0 0
46 Lire lnsurance (426,2)2,967,371 2,589,158 0 0
47 Penalties (426,3)18,56i ( 64,095)0 0
48 Expenditures lor Certain Civic, Political and Related Activities (426.4)1,663,1 23 1,788,417 0 0
49 Other Deductions (426.5)17 ,741,93(1,915,238 0 0
50 TOTAL Other lncome Deductions (Total ol lines 43 thru 49)340 25,578,%i 9,065,882 0 0
5'l Taxes Applic. to Other lncome and Deductions
52 Taxes Other than lncome Taxes (408.2)262-263 175,68!192,113 0 0
53 lncome Taxes-Federal (409.2)262m3 ( 12,536,s841 ( 10,041,967)0 0
54 lncome Taxes-Other (409.2)262-263 ( 738,5391 ( 834,874)0 0
55 Provision for Delened lncome Taxes (410.2)234-235 7,571,60€1,585,996 0 0
56 (Less) Provision lor Defened lncome Taxes-Credit (41 1.2)234-235 440,92C 322,781 0 0
57 lnvestment Tax Credit Adjustments-Net (41 1.5)c 0 0 0
58 (Less) lnvestnent Tax Credits (420)c 0 0 0
59 ToTAL Taxes on Other Income and Deductions (Total of lines 52-58)( 5,968,7481 ( 9,421,513)0 0
60 Net Other lncome and Deductions (Total of lines 41 , 50, 59)( 16,303,2781 5,248,832 0 0
61 INTEREST CHARGES
62 lnterest on Long-Term Debt (427)82,U2,60:74,527,233 0 0
63 Amortization of Debt Disc. and Expense (428)259259 321,20t 458,080 0 0
64 Amortization of Loss on Reacquired Debt (428,1)2,854,744 2,941,399 0 0
65 (Less) Amortization of Premium on DebtCredit (429)258-259 8,88:8,883 0 0
66 (Less) Amortization o, Gain on Reacquired Debt-Credit (429,1)C 0 0 0
67 lnterest on Debt to Associated Companies (430)340 677,02i 766,389 0 0
68 Other lnterest Expense (431)340 5,657,334 4,386,030 0 0
69 (Less) Allowance for Borrowed Funds Used During Construction-Credit (432)3,254,457 2,352,527 0 0
70 Net lnterest Charges (Total of lines 62 thru 69)88,s89,57€80,717,721 0 0
7',!lncome Before Extraordinary ltems (Total of lines 27,60 and 70)1 1 5,91 6,1 34 137,228,107 0 0
72 EXTRAORDINARY ITEMS
73 Extraordinary lncome (434)c 0 0 0
74 (Less) Extraordinary Deductions (435)c 0 0 0
75 Net Extraordinary ltems (Total of line 73 less line 74)c 0 0 0
76 lncome Taxes-Federal and other (409.3)262-263 c 0 0 0
77 Extraordinary ltems after Taxes (Total of line 75 less line 76)t 0 0 0
78 Net lncome (Total o, lines 71 and 77)1 1 5,91 6,1 34 137,2n,107 0 0
FERC FORM NO.2 (REV 06-04)Page l'16
I
I
I
I
Name of Respondent
Avista Corporation
This ReDort ls:(1) 5]Rn orisinat(2) ;lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
Statement of Accumulated Comprehensive lncome and Hedqinq 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", reporl the accounts affected and the related amounts in a footnote.
Line
No.Item
(a)
Unrealized Gains
and Losses on
available-for-sale
securities
(b)
Minimum Pension
liabililty Adjustment
(net amount)
(c)
Foreign Currency
Hedges
(d)
Other
Adjustments
(e)
1 Balance of Account 2'19 at Beginning of Preceding
Year ( 6,649,771)
2 Preceding Quarterffear to Date Reclassifi cations
from Account 219 to Net lncome
3 Preceding Quarterffear to Date Changes in Fair
Value ( 917,738)
4 Total (lines 2 and 3)( 917,738)
5 Balance of Account 219 at End of Preceding
Quarter/Year ( 7,567,509)
6 Balance of Account 219 at Beginning of Current Year ( 7,567,509)
7 Cunent Quarter/Year to Date Reclassifications fom
Account 219 to Net lncome
B Cunent Quarter/Year to Date Changes in Fair Value ( 522,033)
9 Total (lines 7 and 8)( 522,033)
10 Balance of Account 2'19 at End of Current
Quarterffear ( 8,089,542)
FERC FORM NO. 2 (NEW 06-02)Page 117
Name of Respondent
Avista Corporation
This Reoort ls:
5]Rn original
f]A Resubmission
(1 )
(2)
Date of Report(Mo, Da, Yr)
041',t1t2018
Year/Period of Report
End of 20171Q4
Statement of Accumulated Comorehensive lncome and Hedoino Activities(continuedl
Line
No.
Other Cash Flow Hedges
lnterest Rate Swaps
(0
Other Cash Flow Hedges
lnsert Footnote at Line 1
to speci! categoryl
(s)
Totals for each
category of
items recorded in
Account 219
(h)
Net lnmme
(Carried Fonvard
from Page 116,
Line 78)
(i)
Total
Comprehensive
lncome
0
1 ( 6,649,771)
2
3 ( 917,738)
4 ( 917,738)137,227,107 136,309,369
5 ( 7,567,509)
6 ( 7,567,509)
7
8 ( 522,033)
I ( 522,033)115,916,134 1 1 5,394,1 01
10 ( 8,089,542)
FERC FORM NO. 2 (NEW 06-02)Page 117a
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 2017lQ4
Statement of Retained Earnings
1. Reportallchangesinappropriatedretainedeamings,unappropriatedretainedeamings,andunappropriatedundisbibutedsubsidiaryeamingsforheyear.
affected in column (b).
3. State he purpose and amount for each reservation or appropriation of retained earnings.
5. Show dividends for each class and series of capital stock.
Line
No.
Item
(a)
Conka Primary
Account Affected
(b)
Cunent Quarter
Year to Date
Balance
(c)
Previous Quarter
Year to Date
Balance
(d)
UNAPPROPRIATED RETAINED EARNINGS
1 Balance-Beginning of Period 558,287,446 51 7,393,547
2 Changes (ldentifo by prescribed retained earnings accounb)
1 Adjustments to Retained Earnings (Account 439)
4 TOTAL Credib to Retained Eamings (Account 439) (footnote details)
5 TOTAL Debits to Retained Earnings (Account 439) (footnote details)
6 Balance Transfened from lncome (Acct 433 less Acct 418.1)1 13,398,373 1 30,939,231
7 Appropriations of Retained Eamings (Account 436)
I TOTAL Appropriations of Retained Earnings (Account 436) (footnote details)8,262,625 4,441,571
I Dividends Dedared-Prefened Stock (Account 437)
10 TOTAL Dividends Declared-Preferred Stock (Account 437) (footnote details)
11 Dividends Declared-C,ommon Stock (Acmunt 438)
12 TOTAL Dividends Declared-Common Stock (Account 438) (foohote details)92,460,231 87,154,240
13 Transfers from Account 216.1, Unappropriated Undistributed Subsidiary Eamings 1,318,400 1,550,479
14 Balance-End of Period (Total of lines 1, 4, 5, 6, 8, 10, 12, and '13)572,281,363 558,287,446
15 APPROPRIATED RETAINED EARNINGS (Account 215)
16 TOTAL Appropriated Retained Earnings (Acmunt 215) (footnote details)32,132,125 23,869,500
17 APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account
18 TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account
19 TOTAL Appropriated Retained Earnings (Acmunts 215, 215.1) (Total of lines 32,132,125 23,869,500
20 TOTAL Retained Eamings (Accounts 215,215.1,2'16) (Total oflines 14 and 1 604,413,488 582,1s6,946
21 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216 1)
Report only on an Annual Basis no Quarterly
22 Balance-Beginning of Year (Debit or Credit)( 1,143,2221 ( 5,881,619)
23 Equity in Eamings for Year (Credit) (Account 418.1)2,s17,761 6,288,876
24 (Less) Dividends Received (Debit)
25 Other Changes (Explain)( 1,318,400)( 1,s50,479)
26 Balance-End of Year 56,139 ( 1,143,222)
FERC FORM NO.2 (REV 06-04)Page 'll8-119
I
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 2O17lQ4
Statement of Cash Flo$6
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long{erm debt; (c) lnclude commercial paper; and (d) ldentify
separately such items as investments, fixed assets, intangibles, etc.
(2) lnformation about noncash invesling and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation
between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet.
(3) Operating Activities - Other: 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)Current Year
to Date
Quarterl/ear
Previous Year
to Date
Quarterl/ear
No.
(a)
1 Net Cash Flow from Operating Activities
2 Net lncome (Line 78(c) on page 1'16)115,916,134 137,228,107
J Noncash Charges (Credits) to lncome:
4 Depreciation and Depletion 165,534,842 1 55,162,338
5 Amortization of defened power and gas costs, debt expense and exchange power '17,357,659 22,675,618
6 Defened lncome Taxes (Net)67,298,507 102,361,230
7 lnvestment Tax Credit Ad.iustments (Net)( 401,676)18,862,744
I Net (lncrease) Decrease in Receivables ( 8,2s7,764)( 16,916,930)
I Net (lncrease) Decrease in lnventory ( 4,858,369)980,885
'10 Net (lncrease) Decrease in Allowances lnventory
11 Net lncrease (Decrease) in Payables and Accrued Expenses 49,034,221 ( 26,152,468)
12 Net (lncrease) Decrease in Other Regulatory Assets 2,355,616 ( 38,029,474)
't3 Net lncrease (Decrease) in Other Regulatory Liabilities ( 7,591 ,1 59)2,936,022
14 (Less) Allowance for Other Funds Used During Construction 6,441,370 7,298,983
15 (Less) Undistributed Eamings from Subsidiary Companies 2,517,76',1 6,288,876
'16 O$er (footnote details):
17 Net Cash Provided by (Used in) Operating Activities
18 (Total of Lines 2 thru 16)390,820,147 337,756,882
19
20 Cash Flows from lnvesbnent Activities:
21 Construction and Aquisition of Plant (including land):
22 Gross Additions to Utility Plant (less nuclear fuel)( 406,201,555)( 390,690,230)
23 Gross Additions to Nuclear Fuel
24 Gross Additions to Common Utility Plant
25 Gross Additions to Nonutility Plant
26 (Less) Allowance for Other Funds Used During Construction
27 Other (footnote details):
28 Cash Outflows for Plant (Total of lines 22 thru 27)( 406,201,555)( 390,690,230)
29
30 Acquisition of Other Noncunent Assets (d)
31 Proceeds from Disposal of Noncunent Assets (d)3'r3,974 't,288,524
32 Federal and state grant payments received 512,000
33 lnvestments in and Advances to Assoc. and Subsidiary Companies ( 17,160,819)( 16,517,111)
34 Contributions and Advances from Assoc. and Subsidiary Companies 2,000,000 2,000,000
2E Disposition of lnvestments in (and Advances to)
36 Associated and Subsidiary Companies
37 Cash paid for acquisrtion
38 Purchase of lnvestrnent Securities (a)
39 Proceeds from Sales of lnvestment Securities (a)
FERC FORM NO.2 (REV 06-04)Page 120
3,391,26i ( 7,763,331
I
Name Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t't1t2018
Year/Period of Report
End ot 20171Q4
Statement of Cash Flows (continued)
Line
No.
Description (See lnstructions for explanation of codes)
(a)
Currenl Year
to Date
QuarterfYear
Previous Year
to Date
Quarter^fear
40 Loans Made or Purchased
41 Collections on Loans
42 Restricted cash ( 277)( 25,425)
43 Net (lncrease) Decrease in Receivables
44 Net (lncrease) Decrease in lnventory
45 Net (lncrease) Decrease in Allotances Held for Speculation
46 Net lncrease (Decrease) in Payables and Accrued Expenses
47 Changes in other property and investrnents ( 2,125,513)( 8,915,798)
4B Net Cash Provided by (Used in) lnvesting Activities
49 (Total of lines 28 thru 47)( 423,174,190)( 412,U8,040\
50
51 Cash Flows from Financing Activities:
52 Proceeds from lssuance of:
53 Long-Term Debt (b)90,000,000 24s,000,000
54 Preferred Stock
55 Common Stock 56,380,425 66,952,672
56 Other (footnote details):
57 Net lncrease in Short{erm Debt (c)15,000,000
58 Cash received for seftlement of interest rate surap agreements
59 Cash Provided by Outside Sources (Total of lines 53 thru 58)146,380,425 326p52,672
60
61 Payments for Retirement of:
62 Long-Term Debt (b)( 871,667)( 160,871,667)
63 Preferred Stock
64 Common Stock
65 Other
66 Net Decrease in Short-Term Debt (c)( 15,000,000)
67 Premium paid to repurchase long{erm debt
68 Dividends on Prefened Stock
69 Dividends on Common Stock ( 92,460,231)( 87,',ts4,240)
70 Net Cash Provided by (Used in) Financing Activities
71 (Total of lines 59 thru 69)33,931,144 74,156,286
72
73 Net lncrease (Decrease) in Cash and Cash Equivalents
74 (Total of line 18, 49 and 71 )1,577,101 ( 434,872)
75
76 Cash and Cash Equivalents at Beginning of Period 2,535,404 2,970,276
77
78 Cash and Cash Equivalents at End of Period 4,112,505 2,535,404
FERC FORM NO.2 (REV 06-04)Page 120a
{ -4,t 17,383 ( 4,77CIt7s
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
120 Line No.: 16 Column: c
Power natural gas deferrals 1, ,408 ,987r0,7L2,388
(3 , 535, 851)
7 ,89O,705
4 , L90 ,684
6, 000,000
14 , 694 ,3'l 4
4,705,259
46't ,080(240,297)
Change in special deposits
Change in other current assets
Non-cash sLock compensationother non-current. assets and liabilities
Allowance for doubtful accountsAmortization of Spokane Energy contract
Change in Coyote Springs 2 O&M LTSAPreliminary survey and investigation costs
Gain on safe of property and equipment
Cash paid for settlement of interestrate swaps
Other
(53,966,a97)
9 ,547
Schedule Page: 120 Line No.: 16 Column: b
Power and natural gas deferrafs
Change in special deposits
Change in other current. assets
Non-cash stock compensationother non-current assets and liabilities
Allowance for doubtfuf accounts
Prefiminary survey and investigation costs
Cash paid for settlement of interest rate
swaps
Cash received from settlement of interest rate
swaps
Gain on sale of property and equipmentother
L ,889 ,235(22 ,393 ,51-0)(5,2a2,716)
7,359,327
25 , 628 ,27'7
5,235,000
(a95 ,867)
(11,301,842)
2 ,418 ,520(31,232)(st 92s)
Minimum tax withholdings for share based compensation (3,072,433)
debt issuance costs
Minimum tax withholdings for share based compensation
Longterm debt issuance costs
(3,551,786)
(565,5e7)
FERG FORM NO. 2 (I2.96)Paqe 552.1
120 Line No.:65 Column: c
1 Line No.: 65 Column: b
Name of Respondent
Avista Corporation
This Report is:
(1) XAn Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
1. Provide important disclosures regarding the Balance Sheet, Statement of lncome for the Year, Statement of Retained Earnings for the Year,
and Statement of Cash Flow, or any account thereof. Classi! 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. Furnish details as to any significant conlingent 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 malerial 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 preferred stock.
3. Furnish details on the respondent's pension plans, post-retirement benefits other than pensions (PBOP) plans, and post-employment benefit
plans as required by instruction no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Furnish details on
the accounting for the plans and any changes in the method of accounting for them. lnclude details on the accounting for transition obligations or
assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year's plan or trust curlailments,
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 cost recognized in the
respondent's financial statements for each plan for the period presented, and (2) the basis for determining the respondent's share of the total plan
costs.
4. Furnish details on the respondent's asset retirement obligations (ARO) as required by instruction no. 'l and, in addition, disclose the amounts
recovered through rates to settle such obligations. ldentiff 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
incurred 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 earnings restrictions and state the amount of retained earnings 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 unsettled rate proceedings where a contingency exists such thal the company may need to refund a material amount to the
utili$'s customers or that the utility may receive a material refund with respect to power or gas purchases. State for each year affected the gross
revenues or costs to which the contingency relates and the tax effects and explain the ma,or factors that affect the rights of the utility to retain such
revenues or to 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
affecting 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 apportionments 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 omifted.
14. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end ofthe most recent year have occurred which
have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in
such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts;
capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business
combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a
significant change since year end may not have occurred.
'15. Finally, if the notes to the financial statements relating to the respondent appearing in lhe annual report to the stockholders are applicable
and furnish the data required by the above instructions, such notes may be included herein.
NOTES TO FINANCIAL STATEMENTS
NOTE I. 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 Washington and northem ldaho. 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.
Alaska Electric and Resources Company (AERC) is a wholly-owned subsidiary of Avista Corp. The primary subsidiary of AERC is
FERC FORM NO. Z3-Q (REV 12-07)122.1
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
Alaska Electric Light and Power (AEL&P), which comprises Avista Corp.'s regulated utility operations in Alaska.
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).
On July 19,2017, Avista Corp. entered into an Agreement and Plan of Merger (Merger Agreement) to become a wholly-owned
subsidiary of Hydro One Limited (Hydro One). Consummation of the pending acquisition is subject to a number of approvals and the
satisfaction or waiver of other specified conditions. The transaction is expected to close in the second half of 20 I 8. See Note 3 for
additional information.
Basis 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 (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 GAAP. The accompanying financial statements include the Company's propottionate share of utility plant
and related operations resulting from its interests in jointly owned plants. In addition, underthe requirements of the FERC, there are
differences from 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 otherthan
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 ofcontingent assets and liabilities at the date ofthe 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,
. pension and other postretirement benefit plan obligations,
. contingent liabilities,
o goodwill impairment testing for goodwill held at subsidiaries,
. recoverability ofregulatory assets, and
o 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.
Regulation
The Company is subject to state regulation in Washington, Idaho, Montana and Oregon. The Company is also subject to federal
FERC FORM NO. 2/3-Q (REV 12-07)122.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
041't1t2018
Year/Period of Report
20171Q4
Notes to Financial Statements
regulation primarily by the FERC, as well as various other federal agencies with regulatory oversight of particular aspects of its
operations.
Utility 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
o 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 3l (dollars in thousands):
2017 2016
Unbilled accounts receivable $ 65,801 $ 69,544
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 ofproperties at the expiration oftheir service lives. For utility operations, the
ratio of depreciation provisions to average depreciable property was as follows for the years ended December 3l:
2017 2016
Ratio ofdepreciation to average depreciable property
The average service lives forthe following broad categories ofutility plant in service are (in years)
3.12o/o 3.710/o
Avista Corp.
Electric thermal/other production
Hydroelectric production
Electric transmission
Electric distribution
Natural gas distribution property
Other shorter-lived general plant
4t
78
57
35
42
l0
Taxes Other Than Income Taxes
FERC FORM NO. 2/3-Q (REV 12-07)122.3
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1',U2018
Year/Period of Report
20't7lQ4
Notes to Financial Statements
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
other than income taxes consisted of the following items for the years ended December 3l (dollars in thousands):
2017 2016
Utility-related taxes
Property taxes
Other taxes
Total
$61,715 $
40,074
1,621
56,286
38,505
1,619
$ 103,410 $ 96,410
Allowancefor Funds Used During Construction (AFUDC)
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 AFUDC 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:
2017 20t6
Effective AFUDC rate 7.29o/o 7.29o/o
Income Tsxes
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
retums. Deferred tax assets and liabilities arise when there are temporary differences resulting from differing treatment of items for
tax and accounting purposes. 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 income tax returns. 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 ofthe 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 of time. 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's largest deferred income tax item is the difference between the book and tax basis of utility plant. This item results
from the temporary difference on depreciation expense. In early tax years, this item is recorded as a deferred income tax liability that
will eventually reverse and become subject to income tax in later tax years.
See Note 8 for discussion of the Tax Cuts and Jobs Act (TCJA) and its impacts on the Company's financial statements during 201 7, as
well as a tabular presentation of all the Company's deferred tax assets and liabilities.
FERC FORtrl NO. 2/3-Q (REV 12-07)122.4
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQl A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2U7tA4
Notes to Financial Statements
The Company did not incur any penalties on income tax positions in 2017 or 201 6. The Company would recognize interest accrued
related to income tax positions as interest expense and any penalties incurred as income deductions.
Stock-Based Compensation
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):
2017 2016
Stock-based compensation expense
Income tax benefits ( I )
Excess tax benefits on settled share-based employee payments (2)
$7,359 $ 7,891
2,576 2,762
2,348 1,597
(l) Income tax benefits were calculated using a 35 percent income tax rate; however, as of December 31,2017, due to the TCJA
enactment, deferred tax assets associated with stock compensation were revalued to 2l percent. Beginning on January l, 2018
income tax benefits will be calculated using the new 2l percent tax rate.
(2) Beginning in 2016, excess tax benefits associated with the settlement of share-based employee payments are recognized in the
Statements of Income due to the adoption of Accounting Standards Update (ASU) 2016-09, effective January 1,2016. 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 return 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 Retum (TSR) awards are market-based awards and Cumulative Earnings Per Share (CEPS) awards are
performance awards. CEPS awards were first granted in2014. 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 settled 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 conditions.
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 seryice period, if the intemal 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
FERC FORM NO. Z3-Q (REV I2.07)122.5
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
meeting the market targets based on historical retums 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 ofthe 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 :
2017 2016
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
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)
57,746
(s7,473)
r 06,053
1,853 $
58,610
(52,385)
109,806
1,953$
$
$
I14,390
(107,649)
158,262
218,507
2,849 $
116,435
(t I1,665)
132,887
222,228
3,409
57,223
(s3,862)
41,502
108,58t
1,856 $
57,521
(ss,83s)
90,460
110,452
1,671
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 earned 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 31,2017 and 2016, the Company had recognized cumulative compensation expense and a liability of $ I .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.
Al low ance for Do u btful A ccou nls
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.
FERC FORM NO. 2/3-Q (REV 12-07)122.6
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
20171Q4
Notes to Financial Statements
Utility Plant in Service
The cost of additions to utility plant in service, including AFUDC 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.
Asset Retirement Obligations (ARO)
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 of the related long-lived asset. The liability is
accreted to its present value each period and the related capitalized costs are depreciated over the useful life 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 recognizes a regulatory asset or liability for the
difference, which will be surcharged/refunded to customers through the ratemaking process. The Company records regulatory assets
and liabilities for the difference between asset retirement costs currently recovered in rates and AROs recorded since asset retirement
costs are recovered through rates charged to customers (see Note 6 for further discussion of the Company's AROs).
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 30,2017 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):
AEL&P Other
Accumulated
Impairment
Losses Total
Balance as of the December 31,2016
Balance as of the December 31,2017
$52,426 $
52,426
12,979 $
12,979
(7,733) $
(7,733)
57,672
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 Washington Utilities and Transportation Commission (WUTC) and the Idaho Public Utilities Commission (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 Purchased Gas
Adjustments (PGA), the Energy Recovery Mechanism (ERM) in Washington, the Power Cost Adjustment (PCA) mechanism in
Idaho, and periodic general rates cases. The resulting regulatory assets have been concluded to be probable ofrecovery through future
FERC FORM NO. 2/3-Q (REV 12-07)122.7
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, YD
04t1',U20',t8
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 ofthe 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
liabilities, 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 ofinterest 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. See Note l6 for additional discussion regarding interest rate
swaps in the Company's 2017 Washington general rate cases.
As of December 31,2017, 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 for the netting of commodity derivatives and interest rate swap
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.
Fair Value Measu rements
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, deferred
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 l3 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 defened 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. Decoupling revenue deferrals are recognized in the
Statements of Income during the period they occur (i.e. during the period of revenue shortfall or excess due to fluctuations in
customer usage), subject to ceftain limitations, and a regulatory asset/liability is established which will be surcharged or rebated to
customers in future periods. GAAP requires that for any alternative regulatory revenue program, like decoupling, the revenue must be
expected to be collected from customers within 24 months of the deferral to qualifr 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
FERC FORM NO. 2/3-Q (REV 12-07)122.8
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 that arose during the current year 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 reQuired 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 Expense
Unamortized debt expense includes debt issuance costs that are amortized over the life ofthe related debt.
Unamortized Gain/Loss on Reacquired Debt
For the Company's Washington regulatory jurisdiction and for any debt repurchases beginning in 2007 in alljurisdictions, 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 amortized over the average remaining
maturity of outstanding debt when no new debt was issued in connection with the debt repurchase. The premiums and discounts are
recovered or retumed to customers through retail rates as a component of interest expense.
Appropriated Retained Earnings
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 earnings in excess ofthe specified rate ofreturn on the Company's investment in the
licenses for its various hydroelectric projects. Per section l0(d) of the FPA, the Company must maintain these excess earnings in an
appropriated retained eamings 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 calculates the earnings in excess of the
specified rate of return on an annual basis, usually during the second quarter.
The appropriated retained earnings amounts included in retained eamings were as follows as of December 3l (dollars in thousands):
2017 2016
Appropriated retained earn ings $ 32,132 $ 23,869
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 31,2017 .
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 3l (dollars in thousands):
2017 2016
Avista Capital $ (6,942) $ (1,434)
FERC FORM NO. 2/3-Q (REV 12.07)122.9
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
20't7tQ4
Notes to Financial Statements
AERC
Total equity in earnings of subsidiary companies
9,460 7,723$ 2,518 $ 6,289
Subsequent Events
Management has evaluated the impact of events occurring after December 37,2017 up to February 20,2018, the date that Avista
Corp.'s GAAP financial statements were issued and has updated such evaluation for disclosure purposes through the date of this
report. 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 loss contingencies that do not meet these conditions for accrual, if there is a reasonable possibility that a
material loss may be incurred. As of December 3l ,2017 , the Company has not recorded any significant amounts related to unresolved
contingencies. See Note l5 for further discussion of the Company's commitments and contingencies.
Transmission Utility Plant Write-Off Qmmaterial Correction of an Errorfrom Prior Years)
During the fourth quarter of 2017, the Company performed a detailed analysis of its capital overhead accounts associated with
transmission system planning for the four-year period of January l, 2014 through December 31 , 2017 . Based on this review, it was
determined that a portion of transmission system planning costs capitalized as part of utility plant over that time period should have
been recorded to operating expense (FERC account 561.5). The items that should have been recorded as operating expenses related to
general transmission system planning not associated with specific projects and preliminary studies and designs of transmission
systems. As a result, during 2017, the Company recorded an immaterial correction of an error from prior years which reduced utility
plant transmission assets by $1.9 million and increased operating expenses by $1.9 million. Of the total correction amount recorded in
2017, between $0.6 million to $0.7 million related to each of 20'14,2015 and2016.
NOTE 2. NEW ACCOUNTING STANDARDS
ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)"
In May 20l4,the Financial Accounting and Standards Board (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
identify 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 is effective for periods beginning after
December 15 , 2017 .
The Company will adopt this standard on January I , 201 8 using a modified retrospective method, which requires a cumulative
adjustment to opening retained earnings, as opposed to a full retrospective application. The Company has not identified any
cumulative adjustments.
Since the 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 will not have a significant change in operating revenues or net
income due to the application of this standard. The Company reviewed and analyzed certain contracts with customers (most of which
are related to wholesale sales ofpower and natural gas) and did not identifu any significant differences in revenue recognition
between current GAAP and ASU No. 2014-09.
FERC FORM NO.1 122.10
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20't8
Year/Period of Report
2017tQ4
Notes to Financial StatemenB
During the implementation process, the Company worked through several issues, the most significant of which are as follows:
Conlributions in Aid of Construction (CIAC) - There was the potential that CIAC could be recognized as revenue upon the adoption
of ASU No. 2014-09. Implementation guidance indicates that CIAC will continue to be accounted for as an offset to utility plant in
service.
Utility-Related Taxes Collected from Customers - There were questions on the presentation of utility-related taxes collected from
customers (primarily state excise taxes and city utility taxes) on a gross basis. Under GAAP, the Company has been 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 evaluated whether this gross presentation is appropriate under ASU 2014-09 and
determined that for Avista Corp., the current presentation will not change.
Renewable Energtt Credits (REC) - Utility industry implementation guidance indicates that revenue associated with the sale of
self-generated RECs will be recognized at the time of generation and sale of the credits as opposed to when the RECs are certified in
the Westem Renewable Energy Generation Information System, which generally occurs during a period subsequent to the sale. This
represents a change from the Company's prior practice, which has been to defer revenue recognition until the time of certification.
Revenue associated with the sale of RECs is not material to the financial statements and almost all of the Company's REC revenue is
deferred for future rebate to retail customers. As such, the change in the timing of revenue recognition will have an insignificant
impact to revenue and net income.
The Company is monitoring utility industry implementation guidance to determine if there will be further industry consensus
regarding accounting and presentation issues.
In addition to the issues described above, the Company will also have significant changes to its revenue-related footnote disclosures,
including the bifurcation of wholesale revenue into derivative and non-derivative sales. The Company continues to evaluate what
information would be most useful for users of the financial statements, including information already provided elsewhere in the
document outside the footnote disclosures. These additional disclosures will most likely include the disaggregation of revenues by
type of service, source of revenue or customer class. Also, the Company will have enhanced disclosures regarding its revenue
recognition policies and elections. The Company does not expect any material presentation changes to the base financial statements,
and only expects changes to its footnote disclosures.
ASU No. 2016-02 "Leases (Topic 812)"
In February 2016,the FASB issued ASU No. 2016-02. This ASU introduces a new lessee model that requires most leases to be
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. Under ASU 2016-02, upon adoption, the effects of this standard 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. During 2018, a proposed
ASU was issued by the FASB that provides a practical expedient that would allow companies to use an optional transition method,
which would allow for a cumulative adjustment to retained earnings during the period of adoption and prior periods would not require
restatement.
FERC FORM NO. 2/3-O (REV {2-07)122.11
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t',t'U2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
The Company evaluated ASU 201 6-02 and determined that it will not early adopt this standard before its effective date in 201 9.
The Company has formed a lease standard implementation team that is working through the implementation process. Based on work
to-date, the implementation team has identified a complete population of existing and potential leases under the new standard and has
completed its review of the agreements associated with this population. However, the team has not yet quantified the impact of
recording these leases. In addition, the team is developing a process to identify any new potential leases that may be entered into
between now and the standard implementation date in 2019.
The Company is monitoring utility industry implementation guidance as it relates to several unresolved issues to determine if there
will be an industry consensus. The Company has not yet estimated the potential impact on its future financial condition, results of
operations and cash flows.
ASU No. 20 1 6-09 " Compensation-Stock Compensation (f opic 7 I 8): Improvemenls to Employee Share-Bqsed Payment Accounting"
In March 2016,the FASB issued ASU No. 2016-09. This ASU simplified 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
lncome 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.
. requiring excess tax benefits and tax deficiencies to be excluded from the calculation ofdiluted earnings per share, whereas
under previous accounting guidance, these amounts had to be estimated and included in the calculation,
o allowing forfeitures to be accounted for as they occur, instead of estimating forfeitures, and
r changing the statutory tax withholding requirements for share-based payments.
The Company early adopted this standard during the second quarter of 2016, with a retrospective effective date of January 1,2016.
The adoption of this standard resulted in a recognized income tax benefit of $1.6 million in2016 associated with excess tax benefits
on settled share-based employee payments.
ASU No. 2017-07 "Compensation-Retirement BeneJits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net
Periodic P oslretirement Benefit Cost "
In March 2017,the FASB issued ASU No. 2017-07, which amends the income statement presentation of the components of net
periodic benefit cost for an entity's defined benefit pension and other postretirement plans. Under current GAAP, net benefit cost
consists ofseveral components that reflect different aspects ofan employer's financial arrangements as well as the cost ofbenefits
earned by employees. These components are aggregated and reported net in the financial statements. ASU No. 20l,7-07 requires
entities to ( I ) disaggregate the current service-cost component from the other components of net 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.
In addition, only the service-cost component of net benefit cost is eligible for capitalization (e.g., as part of utility plant). This is a
change from current practice, under which entities capitalize the aggregate net benefit cost to utility plant when applicable, in
accordance with FERC accounting guidance. Avista Corp. is arate-regulated entity and all components of net periodic benefit cost are
currently recovered from customers as a component of utility plant and, under the new ASU, these costs will continue to be recovered
from customers in the same manner over the depreciable lives of utility plant. As all such costs are expected to continue to be
FERC FORM NO. 2/3-Q (REV 12-07)122.12
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
recoverable, the components that are no longer eligible to be recorded as a component of utility plant for GAAP will be recorded as
regulatory assets.
This ASU is effective for periods beginning after December 15,2017 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 net periodic benefit costs to the service-cost component. The
Company did not early adopt this standard and does not expect a material impact on its future financial condition, results of operations
or cash flows upon adoption ofthis standard.
ASU 2018-02 "Income Statement-Reporting Comprehensive lncome (Topic 220): Reclassification of Certain Tax Effectsfrom
Accumulated Other Comprehensive Income "
In February 201 8, the FASB issued ASU 201 8-02, which amends the guidance for reporting comprehensive income. The ASU allows
a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the
enactment of the TCJA. This ASU is effective for periods beginning after December 15, 2018 and early adoption is permitted. Upon
adoption, the requirements of the ASU must be applied either in the period of adoption or retrospectively to each period (or periods)
in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. The Company did not early
adopt this standard as of December 31,2017 and does not expect a material impact on its future financial condition, results of
operations or cash flows upon adoption ofthis standard.
NOTE 3. PENDING ACQUISITION BY HYDRO ONE
On July 19,2017, Avista Corp. entered into a Merger Agreement, by and among Hydro One, Olympus Holding Corp., a wholly
owned subsidiary of Hydro One (US parent), and Olympus Corp., a wholly owned subsidiary of US parent (Merger Sub). Subject to
the terms and conditions of the Merger Agreement, Merger Sub will be merged with and into Avista Corp., with Avista Corp.
surviving as an indirect, wholly-owned subsidiary of Hydro One. Hydro One, based in Toronto, is Ontario's largest electricity
transmission and distribution provider.
At the effective time of the acquisition, each share of Avista Corp. common stock issued and outstanding, other than shares of Avista
Corp. common stock that are owned by Hydro One, US Parent (as defined in the Merger Agreement) or Merger Sub or any of their
respective subsidiaries, will be convefted automatically into the right to receive an amount in cash equal to $53, without interest.
Closing Conditions, Required Approvals
Consummation of the acquisition is subject to the satisfaction or waiver, if permissible under applicable law, of specified closing
conditions, including, but not limited to, (i) the approval of the acquisition by the holders of a majority of the outstanding shares of
Avista Corp. Common Stock, (ii) the receipt of regulatory approvals required to consummate the acquisition, including approval from
the FERC, the Committee on Foreign Investment in the United States (CFIUS), the Federal Communications Commission (FCC), the
WUTC, IPUC, Public Service Commission of the State of Montana (MPSC), Oregon Public Utilities Commission (OPUC), and the
Regulatory Commission of Alaska (RCA), and (iii) meeting the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of
1976 (HSR Act), as amended. Under the HSR Act and the rules and regulations promulgated thereunder, the acquisition may not be
completed until notification and report forms have been filed with the U.S. Department of Justice (DOJ) and the Federal Trade
Commission (FTC) and the applicable waiting period has expired or been terminated. Hydro One and the Company each intend to file
the required HSR notification and report forms with the DOJ and the FTC.
The transaction is expected to close in the second halfof2018 subject to remaining referenced approvals and the satisfaction or
waiver of other specified conditions.
Approvals Requested
FERC FORM NO. 2/3-Q (REV 12-07)122.13
Name of Respondent
Avista Corporation
This Report is:
(1) XAn Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t1'U2018
Year/Period of Report
20't7lQ4
Notes to Financial Statements
On September 14,2017, Avista Corp. and Hydro One filed applications for approval of the acquisition with the FERC, the WUTC,
the IPUC, the OPUC and the MPSC, requesting approval of the transaction on or before August 14,2018. However, the OPUC has
set a procedural schedule with an end date no later than September 14, 2018. On November 21 ,2017, applications for approval of the
acquisition were filed with the RCA, with a statutory deadline of May 20,2018.
ll/as h ington S ettlement
On March 27,2018, Avista Corp. and Hydro One filed an all-parties, all-issues settlement agreement in the merger proceeding before
the WUTC recommending approval of the acquisition of the Company by Hydro One. This represents a full settlement that all parties,
including the WUTC Staff, have agreed results in a net benefit to the Company's Washington customers and should be accepted by
the WUTC.
The settlement includes financial and non-financial commitments by the Company. No costs associated with the transaction will be
recovered from Avista Corp. or Hydro One customers. The Company's initial September 2017 applications for state regulatory
approval of the transaction proposed a rate credit of approximately $32 million over a l0-year period across Washington, Oregon and
Idaho. This amounted to an allocation of an approximately $20 million rate credit in Washington. The settlement, if approved, would
result in the allocation to Washington of a rate credit of approximately $3 I million over a 5-year period. In the settlement, Hydro One
and Avista Corp. have also agreed to a number of other financial commitments, including providing funding for low income
participation in new renewable energy and replacing certain manufactured homes. If the settlement is approved, the Company's
financial commitments in Washington would total approximately $44 million, including the rate credits. While negotiations with
parties in ldaho, Oregon, Montana and Alaska are still underway and will be resolved on a state-by-state basis, if the financial
commitments in each other state bore the same ratio to the Company's base revenue in such state as the financial commitments in
Washington bear to the Washington revenue, the total amount of financial commitments would be approximately $74 million, which
includes an additional $l million proposed rate credit in Alaska.
The settlement in principle also provides for the use of a portion of Avista Corp.'s excess deferred federal income taxes for the
purpose of accelerating the depreciation schedule for Colstrip Units 3 and 4 to reflect a remaining useful life of those units through
December 3l ,2027 . In addition, included in the financial commitments described above is funding toward a Colstrip community
transition fund which is intended to help the Colstrip community transition from coal-fired generation in the event of a future closure.
The settlement in principle does not reflect any agreement with respect to the ultimate closure of Units 3 and 4 as that decision would
be made in conjunction with the other owners of Colstrip.
The settlement agreement is subject to WUTC approval. The WUTC Staff s recommendation that the WUTC approve the settlement
agreement is not binding on the WUTC itself.
In addition to Hydro One, Avista Corp. and WUTC Staff, the parties to the merger proceeding include the Public Counsel Unit of the
Washington Office of Attorney General, The Energy Project, Northwest Energy Coalition, Renewable Northwest, Natural Resources
Defense Council, Sierra Club and the Washington and Northern Idaho District Council of Laborers, the Northwest Industrial Gas
Users and the Industrial Customers of Northwest Utilities.
Alaska Settlement
On April 3, 201 8, Avista Corp. and Hydro One submitted a settlement agreement in the merger proceeding before the RCA
recommending approval of the acquisition of the Company by Hydro One. The settlement agreement is with the City and Borough of
Juneau, the only intervenor in the case. Avista Corp. serves customers in Juneau, Alaska through its subsidiary utility, AEL&P.
The settlement agreement includes specific commitments that preserve the ownership structure and current operations of AEL&P,
ensure customer rates will not be impacted by the transaction, enhance community giving and provide a $l million rate credit over
five years for AEL&P's customers. This rate credit would begin at the close of the transaction.
FERC FORM NO. 2/3-Q (REV 12-07)122.14
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20'18
Year/Period of Report
20171Q4
Notes to Financial Statements
The settlement also provides that any transfer of the Snettisham Hydroelectric Project will not occur without RCA approval and a
determination that such transfer would be in the public interest, formalizes AEL&P's interconnection process and outlines a process
for a biennial AEL&P system and planning presentation.
The settlement agreement is subject to RCA review and approval. The parties have requested a decision from the RCA within 30 days
of filing the settlement agreement.
On February 9,2078, Hydro One and the Company filed a draft joint voluntary notice of the acquisition with CFIUS pursuant to
Section 721 of Title VII of the Defense Production Act of 1950, as amended, 50 U.S.C. $ 4565 (Section 721) and its implementing
regulations.
Approvals Received
On November 21 , 2017 , Avista Corp. shareholders approved the acquisition in a special meeting of shareholders. Also, on January
16, 2018 the FERC approved the acquisition.
Other Pending Required Approvals
The Company intends to file for the required approvals with the FCC pursuant to Section 3 I 0 of the Communications Act of I 934, as
amended, over the transfer of control of FCC licenses that would result from the acquisition.
Other Information Related to the Acquisition
The Merger Agreement also contains customary representations, warranties and covenants of Avista Corp., Hydro One, US Parent
and Merger Sub. These covenants include, among others, an obligation on behalf of Avista Corp. to operate its business in the
ordinary course until the acquisition is consummated, subject to certain exceptions. ln addition, the parties are required to use
reasonable best efforts to obtain any required regulatory approvals.
Avista Corp. has made certain additional customary covenants, including, among others, and subject to certain exceptions, a
customary non-solicitation covenant prohibiting Avista Corp. from soliciting, providing non-public information or entering into
discussions or negotiations concerning proposals relating to alternative business combination transactions, except as and to the extent
permitted under the Merger Agreement with respect to an unsolicited written Takeover Proposal (as defined in the Merger
Agreement) made prior to the approval of the acquisition by Avista Corp.'s shareholders if, among other things, Avista Corp.'s board
of directors determines in good faith that such Takeover Proposal is or could be reasonably expected to lead to a Superior Proposal (as
defined in the Merger Agreement) and that failure to take such actions would reasonably be expected to be inconsistent with its
fiduciary duties under applicable law. No such Takeover Proposals have been received.
The Merger Agreement may be terminated by Avista Corp. and Hydro One by mutual consent and by either Avista Corp. or Hydro
One under certain circumstances, including if the acquisition is not consummated by September 30, 2018 (subject to an extension of
up to six months by either party if all of the conditions to closing, other than the conditions related to obtaining required regulatory
approvals, the absence of a law or injunction preventing the consummation of the acquisition and the absence of a Burdensome
Condition (as defined in the Merger Agreement) in any required regulatory approval, have been satisfied). The Merger Agreement
also provides for certain additional termination rights for each of Avista Corp. and Hydro One. Upon termination of the Merger
Agreement under certain specified circumstances, including (i) termination by Avista Corp. in order to enter into a definitive
agreement with respect to a Superior Proposal, or (ii) termination by Hydro One following a withdrawal by Avista Corp.'s board or
directors of its recommendation of the Merger Agreement, Avista Corp. will be required to pay Hydro One the Company Termination
Fee of $103.0 million. Avista Corp. will also be required to pay Hydro One the Company Termination Fee in the event Avista Corp.
signs or consummates any specified alternative transaction within twelve months following the termination of the Merger Agreement
under certain circumstances. In addition, if the Merger Agreement is terminated under certain circumstances due to the failure to
FERC FORM NO. 2/3-Q (REV 12-07)122.15
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ -A Resubmission
Date of Report
(Mo, Da, Yr)
04t1'U2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
obtain required regulatory approvals, the imposition of a Burdensome Condition with respect to a required regulatory approval, or the
breach by Hydro One, US Parent or Merger Sub of their obligations in respect of obtaining regulatory approvals, Hydro One will be
required to pay Avista Corp. a termination fee of $ I 03.0 million.
The Company is incurring significant acquisition costs associated with the pending Hydro One acquisition consisting primarily of
consulting, banking fees, legal fees and employee time and are not being passed through to customers. In addition, a significant
portion ofthese costs are not deductible for income tax purposes.
See Note l5 for discussion of shareholder lawsuits filed against the Company, the Company's directors, Hydro One, Olympus
Holding Corp., and Olympus Corp. in relation to the Merger Agreement and the proposed acquisition.
NOTf, 4. DERIVATIVES AND RISK MANAGEMENT
Energy Commodity Derivatives
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, swap derivatives and options in order to manage the various
risks relating to these commodity price exposures. Avista Corp. has an energy resources risk policy and control procedures to manage
these risks.
As part of Avista Corp.'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 Avista
Corp.'s load obligations and the use of these resources to capture available economic value through wholesale market transactions.
These include sales and purchases ofelectric capacity and energy, fuel for electric generation, and derivative contracts related to
capacity, energy and fuel. Such transactions are part ofthe process ofmatching resources with load obligations and hedging a portion
of 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, Avista Corp. 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 Avista Corp.'s distribution system. However, daily variations in natural gas demand can be significantly different than
monthly demand projections. On the basis of these projections, Avista Corp. 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 ofits natural gas supply requirements unhedged for purchase in short-term and spot markets.
Avista Corp. plans for sufficient natural gas delivery capacity to serve its retail customers for a theoretical peak day event. Avista
Corp. generally has more pipeline and storage capacity than what is needed during periods other than a peak day. Avista Corp.
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 Avista Corp. should buy or sell natural gas during other times in the year, Avista Corp. 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.
FERC FORM NO. 2/3-Q (REV 12-07)122.16
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
The following table presents the underlying energy commodity derivative volumes as of December 31,2017 that are expected to be
delivered in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Cas Derivatives Electric Derivatives Gas Derivatives
Physical ( I )
MWh
Financial (l) Physical (l)
MWh mmBTUs
Financial ( I )
mmBTUs
Physical ( I )
MWh
Financial ( I )
MWh
Physical ( I )
mmBTUs
Financial ( I )
mmBTUsYear
20r8
2019
2020
2021
2022
Thereafter
426
235
763
737
10,572
6r0
9t0
213
94
1,739
1,420
589
3,643
1,345
1,430
1,049
67,375
35,438
9ls
I 07,580
61,073
r6,590
The following table presents the underlying energy commodity derivative volumes as of Decemb er 3l , 2016 that were expected to be
delivered in each respective year (in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical ( I )
MWh
Financial (l)
MWh
Physical ( I )
mmBTUs
Financial ( I )
mmBTUs
Physical ( I )
MWh
Financial ( I )
MWh
Physical (l) Financial (l)mmBTUs mmBTUsYear
2017
2018
2019
2020
2021
Thereafter
5t0
397
235
907 15,475 I10,380
s, 7ss
29,475
) 1)\
316
286
ls8
4,165
r,360
1,345
1,430
r,060
73,110
r5,r r3
4,020
1,552
1,244
9826r0
910
(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 the benefit or cost but
with no physical delivery of the commodity, such as futures, swap derivatives, options, or forward contracts.
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 delivered and will be included in the various deferral and recovery mechanisms (ERM, PCA, and PGAs), or in the
general rate case process, and are expected to be collected through retail rates from customers.
Foreign Currency Exchange Derivatives
A significant portion of Avista Corp.'s natural gas supply (including fuel for power generation) is obtained from Canadian sources.
Most of those transactions 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 curency risk have not had a material effect on Avista Corp.'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.
FERC FORM NO. 2/3-Q (REV r2-07)122.17
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1112018
Year/Period of Report
2017tQ4
Notes to Financial Statements
The following table summarizes the foreign currency exchange derivatives that Avista Corp. has outstanding as of December 3 I
(dollars in thousands):
2017 2016
Number of contracts
Notional amount (in United States dollars)
Notional amount (in Canadian dollars)
$
l8
2,552 $
3,241
2l
2,819
3,754
Interest Rate Swap Derivatives
Avista Corp. is affected by fluctuating interest rates related to a portion of its existing debt, and future borrowing requirements. Avista
Corp. 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 Avista Corp. 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 31,2017 275,000
70,000
30,000
l5,000
60,000
201 8
20t9
2020
2021
2022
t4
6
3
I
5
December 31 ,2016 6
t4
6
2
5
75,000
275,000
70,000
20,000
60,000
2017
20r 8
2019
2020
2022
During the third quarter 2017 , in connection with the execution of a purchase agreement for $90.0 million of Avista Corp. first
mortgage bonds issued in December 2017, Avista Corp. cash-settled five interest rate swap derivatives (notional aggregate amount of
$60.0 million) and paid a total of $8.8 million. 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 ofinterest expense overthe life ofthe
associated debt. The settled interest rate swap derivatives are also included as a part of Avista Corp.'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 swap derivatives outstanding and fluctuations in market interest rates compared to the interest rates fixed by the
swaps. Avista Corp. is required to make cash payments to settle the interest rate swap derivatives when the fixed rates are higher than
prevailing market rates at the date of settlement. Conversely, Avista Corp. receives cash to settle its interest rate swap derivatives
when prevailing market rates at the time of settlement exceed the fixed swap rates.
FERC FORM NO. 2/3-Q (REV 12-07)122.18
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) - A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017to,4
Notes to Financial Statements
Summary of Outstanding Derivative Instruments
The amounts recorded on the Balance Sheet as of December 31 ,2017 and December 31,2016 reflect the offsetting of derivative
assets and liabilities where a legal right ofoffset exists.
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 3 I ,
2017 (in thousands):
Fair Value
Cross Gross Collateral
Net Asset
(Liabitity)
in Balance
SheetDerivative and Balance Sheet Location
Foreign currency exchange derivatives
Derivative instrument assets cuffent
Interest rate swap derivatives
Derivative instrument assets current
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
$32$(1) $$31
2,597
4,880
1,386
26,641
15,970
(270)
(2,304)
(63,399)
(7,s40)
(122)
(52,895)
(34,936)
28,952
6,018
17,406
10,032
2,327
2,576
(34,447)
(1,522)
1,264
(8,848)
(8,934)
$ sl,s06 $ (161,467) $ 62,408 $ (47,s53)
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2016 (in thousands):
Fair Value
Gross Gross Collateral
Net Asset
(Liabilib/)
in Balance
SheetDerivative and Balance Sheet Location
Foreign currency exchange derivatives
Derivative instrument liabilities current
Interest rate swap derivatives
Derivative instrument assets current
Long-term portion of derivative assets
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Energy commodity derivatives
Derivative instrument assets curent
Derivative instrument liabilities current
$5 $ (28)$$ (23)
3,393
5 ?57
(6,025)
(28,70s)
r,895
(7,03s)
3,393
5,754
3,951
18,682
16,335
(3e7)
(l 5,756)
(57,825)
(16,787)
(29,s98)
9,731
25,169
6,228
FERC FORM NO.1 122.19
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t',t1t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
Long-term portion of derivative liabilities
Total derivative instruments recorded on the balance sheet
13,071 (29,990) 3,630 (13,289)
$ 61,191 $ (150,381) $ 44,758 $ (44,432)
Exposure to Demands for Collateral
Avista Corp.'s derivative contracts often require collateral (in the form of cash or letters of credit) or other credit enhancements, or
reductions or terminations of a portion of the contract through cash settlement. In the event of a downgrade in Avista Corp.'s credit
ratings or changes in market prices, additional collateral may be required. In periods of price volatility, the level of exposure can
change significantly. As a result, sudden and significant demands may be made against Avista Corp.'s credit facilities and cash.
Avista Corp. actively monitors the exposure to possible collateral calls and takes steps to mitigate capital requirements.
The following table presents Avista Corp.'s collateral outstanding related to its derivative instruments as of as of December 3l (in
thousands):
2017 2016
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
$39,458 $
23,000
27,438
34,970
5,000
34,970
17,134
24,400
9,858
34,900
3,600
34,900
Certain of Avista Corp.'s derivative instruments contain provisions that require the Company to maintain an "investment grade" credit
rating from the major credit rating agencies. If Avista Corp.'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 Avista Corp. could be required to post as of December 3 I (in thousands):
20t7 2016
$ r,336 $1,124
1,0461,336
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features 73,514 73,978
Additional collateral to post 18,770 2l ,100
NOTE 5. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a l5 percent ownership interest in a twin-unit coal-fired generating facility, Colstrip, located in southeastem
Montana, and provides financing for its ownership interest in the project. The Company's share of related fuel costs as well as
FERC FORM NO. 2/3-Q (REV r2-07)122.20
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04111t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 3l (dollars in thousands):
2017 2016
Utility plant in service
Accumulated depreciation
See Note 6 for further discussion of AROs.
NOTE 6. ASSET RETIREMENT OBLIGATIONS
$ 379,970 $
(255,604)
380,406
(249,359)
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
r 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.
In 201 5, the EPA issued a final rule regarding coal combustion residuals (CCR), also termed coal combustion byproducts or coal ash.
Colstrip, of which Avista Corp. is a l5 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 201 5
with a corresponding increase in the cost basis of the utility plant. During 2016 and 2017, due to additional information and updated
estimates, the ARO was adjusted during each of those years by minor amounts.
The actual asset retirement costs related to the CCR rule requirements may vary substantially from the estimates used to record the
ARO due to the uncertainty and evolving nature of the compliance strategies that will be used and the availability of 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 CCR 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):
2017 2016
Asset retirement obligation at beginning of year $ 15,515 $ 15,997
FERC FORM NO. 2/3-Q (REV 12-07)122.21
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
Liabilities incurred
Liabilities settled
Accretion expense
Asset retirement obligation at end of year
1,171 430
(1,529)
617
$ 17,482 $ 15,515
NOTE 7. PENSION PLANS AND 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
hired priorto January 1,2014. Individual benefits underthis plan are based upon the employee's years ofservice, date ofhire and
average compensation as specified in the plan. Non-union employees hired on or after January 1,2014 participate in a defined
contribution 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 $22.0 million in cash to the
pension plan in 2017 and $ 12.0 million in 201 6. The Company expects to contribute $22.0 million in cash to the pension plan in 201 8.
The Company also has a SERP that provides additional pension benefits to certain 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):
2018 2019 2020 2021 2022 Total2023-2027
Expected benefit payments $ 36,916 $ 37,613 $ 38,610 $ 38,729 $ 38,837 $ 205,395
The expected long-term rate ofreturn on plan assets is based on past performance and economic forecasts for the types ofinvestments
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,
20 14. 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 1,
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 officeros 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):
2018 2019 2020 2021 2022 Total2023-2027
Expected benefit payments $ 6,856 $ 7,064 $ 6,093 S 6,223 $ 6,288 $ 32,265
796
FERC FORM NO. 2/3-Q (REV 12-07)122.22
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2l'.t8
Year/Period of Report
2017tQ4
Notes to Financial Statements
The Company expects to contribute $6.9 million to other postretirement benefit plans in 2018, 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
pension and other postretirement benefit plans.
The following table sets forth the pension and other postretirement benefit plan disclosures as of December 3 I , 2017 and 201 6 and the
components ofnet periodic benefit costs for the years ended December 31, 2017 and 2016 (dollars in thousands):
Pension Beneflts
Other Post-
retirement Benefits
2017 2016 201'7 2016
Change in benefit obligation:
Benefit obligation as of beginning of year
Service cost
Interest cost
Actuarial (gain)/loss
Plan change
Cumulative adjustment to reclassiff liability
Benefits paid
Benefit obligation as ofend ofyear
Change in plan assets:
Fair value ofplan assets as ofbeginning ofyear
Actual retum 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
Accumulated pension benefit obligation
Accumulated postretirement benefit obligation:
For retirees
For fully eligible employees
For other participants
(4r,116) (32,874) (6,196)
$ 716,561 $ 666,472 $ 132,947 $ 136,453
$540,914 $
82,476
22,000
(39,738)
517,234 $
43,212
12,000
(31,532)
33,365 $
4,588
30,868
2,497
$ 605,652 $ 540,914 $ 37,953 $ 33,365
$666,472 $
20,406
27,898
39,743
3,1 s8
6 r 3,s03 $
18,302
27,s44
39,997
136,453 $
3,220
5,490
(6,020)
138,795
3,205
6,1 l0
(3,648)
(1,042)
(6,967)
$ (l 10,909) $
157,883
3,179
(l2s,ss8) $
178,783
23
(94,994) $
68,280
(7,782)
( 103,088)
8t,979
(8,981)
50, I 53
(161,062)
53,248
( I 78,806)
(34,496)
(60,498)
(30,090)
(72,998)
$ (110,909) $ (125,558) $ (94,994) $ (103,088)
$ 624,345 $ 583,498
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost $ 2,066 $
Unrecognized net actuarial loss 102,624
ls $
tt6,209
60,3s4 $
32,891 $
39,702 $
(5,058) $
44,382
60,670
34,429
41,354
(5,854)
53,303
$
$
$
FERC FORTI' NO.,|122.23
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
Total
Less regulatory asset
Accumulated other comprehensive loss for unfunded benefit
obligation for pensions and other postretirement benefit
plans $ 7,665 $ 7,321 $425 $247
104,690
(97,025)
116,224
( r 08,903)
39,324
(38,899)
47,449
(47,202)
Pension Benefits
Other Post-
retirement Benefits
20t7 2016 2017 2016
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
3.71o/o
4.260/o
5.87o/o
4.69%
4.260/o
4.57o/o
5.40%
4.78o/o
3.72%
4.23o/o
s.69%
6.50o/o
5.00%
2023
6.50%
5.00%
2024
4.23o/o
4.57o/o
6.03o/o
7.00o/o
5.00o/o
2023
7.00o/o
5.00o/o
2024
Pension Benefits
Other Post-
retirement Benefits
2017 2016 2017 2016
$ 20,406 $
27,898
(31,626)
2
9,793
18,302 $
27,544
(27,547))
2
8,51 I
3,220 $
5,490
(l,8ee)
(1,144)
4,934
3,205
6,1 l0
(r,861
( r ,208
5,728
$ 26,473 $ 26,812 $ 10,601 $ 11,974
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 31,2017 by $6.6 million and the service and interest cost by $0.8 million. A one-percentage-point
decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as
of December 31,2017 by $5.2 million and the service and interest cost by $0.6 million.
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
FERC FORM NO. Z3-Q (REV 12-07)122.24
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Noies to Financial Statoments
funding policies
The Company has contracted with investment consultants who are responsible for 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 a retum that aligns with the funded status of the pension plan, the
investment consultant recommends allocation percentages by asset classes. These recommendations are reviewed by the internal
benefits committee, which 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 investment allocation
percentages are typically the midpoint ofthe established range. The target investment allocation percentages by asset classes are
indicated in the table below:
20t7 2016
Equity securities
Debt securities
Real estate
Absolute retum
37o/o
45%
8o/o
l0o/o
37o/o
45o/o
8o/o
l0o/o
The fairvalue of pension plan assets invested in debt and equity securities was based primarily on fair value (market prices). The fair
value ofinvestment 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. Investment 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).
Pension plan and 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.
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 net 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 in
2022 and is subject to extension.
The fairvalue 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.
FERC FORM NO. 2/3-Q (REV 12-07)122.25
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financia! Statements
The fair value of pension plan assets was determined as of December 31,2017 and2016.
The following table discloses by level within the fair value hierarchy (see Note 13 for a description of the fair value hierarchy) of the
pension plan's assets measured and reported as of December 31,2017 at fair value (dollars in thousands):
Levell Level2 Level3 Total
Cashequivalents $ - $
Fixed income securities:
U.S. government issues
Corporate issues
International issues
Municipal issues
Mutual funds:
U.S. equity securities 127,742
International equity securities 40,755
Absolute return (l ) 7,728
Plan assets measured at NAV (not subject to hierarchy disclosure)
20,619 $$ 20,619
Common/collective trusts:
Real estate
Intemational equity securities
Partnership/closely held investments :
Absolute retum (l)
Private equity funds (2)
Real estate
Total $ 176,225 $ 278,451 $$ 605,652
The following table discloses by level within the fair value hierarchy (see Note I 3 for a description of the fair value hierarchy) of the
pension plan's assets measured and reported as of December 3l ,2016 at fair value (dollars in thousands):
Levell Level2 Level3 Total
20,305
185,272
32,054
20,201
20,305
185,272
32,0s4
20,201
127,742
40,75s
7,728
34,470
43,462
67,167
72
5,805
Cash equivalents
Fixed income securities:
U.S. govemment issues
Corporate issues
International issues
Municipal issues
Mutual funds:
U.S. equity securities
International equity securities
$$ 10,179 $
30,919
193,563
34,145
r 8,888
$ 10,179
30,9 r 9
t93,563
34,145
18,888
120,856
30,025
120,856
30,025
FERC FORM NO. 2/3-Q (REV 12-07)122.26
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
20171Q4
Notes to Financial Statements
Absolute return (l) 6,622
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate
Intemational equity securities
Partnership/closely held investments:
Absolute return (l)
Private equity funds (2)
Real estate
Total
$
6,622
19,779
29,140
39,077
72
7,649
(2)
$ 157,503 $ 287,694 $$ 540,914
(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.
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 ofinvestment 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 2017 and2016.
The fair value of other postretirement plan assets was determined as of December 31, 2017 and 2016.
The following table discloses by level within the fair value hierarchy (see Note l3 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 31, 2017 at fair value (dollars in thousands):
Levell Level2 Level3 Total
Balancedindexmutualfunds(l) $ 37,953 $ - $ - $ 37,953
The following table discloses by level within the fair value hierarchy (see Note l3 for a description of the fair value hierarchy) of
other postretirement plan assets measured and reported as of December 3 I , 2016 at fair value (dollars in thousands):
Levell Level2 Level3 Total
Cash equivalents
Balanced index mutual funds ( I )
Total
6$$$6
33,3s933,359
$ 33,359 $6$$ 33,36s
( I ) The balanced index fund for 2017 and 2016 is a single mutual fund that includes a percentage of U.S. equity and fixed income
securities and Intemational equity and fixed income securities.
401(k) Plans and Executive Deferral Plan
Avista Corp. has a salary deferral 401(k) plans that is a defined contribution plans and covers substantially all employees. Employees
FERC FORM NO. 2/3-Q (REV 12.07)122.27
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 defened 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):
20t7 2016
Employer 401 (k) matching contributions $ 8,896 $ 8,555
The Company has an Executive Defenal Plan. This plan allows executive officers and other key employees the opportunity to defer
until the earlier of their retirement, termination, disability or death, up to 75 percent of their base salary and/or up to 100 percent of
their incentive payments. Deferred compensation funds are held by the Company in a Rabbi Trust.
There were deferred compensation assets and corresponding deferred compensation liabilities on the Balance Sheets of the following
amounts as of December 31 (dollars in thousands):
2017 20t6
Deferred compensation assets and liabilities $ 8,458 $ 7,679
NOTE 8. ACCOUNTING FOR INCOME TAXES
Federal Income Tax Law Changes
On December 22,2017, the TCJA was signed into law. The legislation includes substantial changes to the taxation of individuals as
well as U.S. businesses, multi-national enterprises, and other types of taxpayers. Highlights of provisions most relevant to Avista
Corp. include:
o A permanent reduction in the statutory corporate tax rate from 35 percent to 2l percent, beginning with tax years after 201 7;
o Statutory provisions requiring that excess deferred taxes associated with public utility property be normalized using the
Average Rate Assumption Method (ARAM) for determining the timing of the return of excess defened taxes to customers.
Excess deferred taxes result from revaluing deferred tax assets and liabilities based on the newly enacted tax rate instead of
the previous tax rate, which, for most rate-regulated utilities like Avista Corp., results in a net benefit to customers that will
be deferred as a regulatory liability and passed through to customers over future periods;
. Repeal of the corporate alternative minimum tax (AMT);
o Bonus depreciation (expensing of capital investment on an accelerated basis) was removed as a deduction for property
predominantly used in certain rate-regulated businesses (like Avista Corp.), but is still allowed for the Company's
non-regulated businesses;
o The deduction for interest expense that is properly allocable to certain rate-regulated trade or businesses is still allowed under
the new law, but the deduction is now limited for the Company's non-regulated businesses; and
o NOL carryback deductions were eliminated, but carryforward deductions are allowed indefinitely with some annual
limitations versus the previous 20-year limitation.
The Company's analysis and interpretation ofthis legislation is complete as itrelatesto amounts recorded as of December3l ,2017
and based on its evaluation, the reduction of the U.S. corporate income tax rate required a revaluation of the Company's deferred
income tax assets and liabilities (including the value of our net operating loss carryforwards) during the fourth quarter of 2017,the
period in which the tax legislation was enacted. Because Avista Corp. is predominantly a rate-regulated entity, a large portion of the
net effect of the legislation was recorded as a regulatory liability on the Balance Sheets and it will be retumed to customers through
FERC FORM NO. 2/3-Q (REV 12-07)122.28
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
04111t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
the ratemaking process in future periods. The total net amount of the regulatory liability associated with the TCJA was 5434.6 million
as of December 37,2017, which is made up of $334.4 million in excess deferred taxes and $100.2 million for the income tax gross-up
of those excess deferred taxes (which, together with the excess deferred tax amount, reflects the revenue amounts to be refunded to
customers through the regulatory process). The Company expects the Avista Corp. plant related amounts will be returned to
customers over a period of approximately 36 years using the ARAM. The Company does not currently have an estimate for the
amortization period for the regulatory liability attributable to non-plant excess deferred taxes items as the Company is waiting for
additional implementation guidance from various regulatory agencies.
Because the Company has deferred income tax assets and liabilities related to its unregulated subsidiaries and certain utility expenses
which are not being passed through to customers, the impact of the revaluation of the Company's deferred income tax assets and
liabilities was recorded as a $7.5 million (net) discrete adjustment to income tax expense in the fourth quarter of 2017, specifically
related to Avista Corp. In addition, there was a $2.7 million increase in expense at the other businesses, which is reflected in the
equity in earnings of subsidiary companies in the Statements of Income.
Because most of the provisions of the TCJA are effective as of January I , 20 I 8 (including a reduction of the income tax rate to 2 I
percent), but the Company's customers'rates continue to have the 35 percent corporate tax rate built in from prior general rate cases,
the Company filed Petitions in January 2018 with the WUTC and OPUC requesting orders authorizing the deferral of the accounting
impact of the change in federal income tax expense caused by the enactment of the TCJA (the IPUC on its own ordered deferred
accounting foralljurisdictional utilities in January 2018). The Company is requestingto deferthe impactof the change in federal
income tax expense beginning in January 2018 forward until all benefits are properly captured through the defenal and refunded to
customers through tariffs to be reviewed and implemented in future rate proceedings. The IPUC has requested a report on the
estimated overall benefit to customers related to the impacts of the TCJA by March 30, 2018. The WUTC issued a bench request in
the Company's2017 electric and natural gas general rate cases requesting such information by February 28,2018.
In March, 2018, FERC issued a show-cause order under the Federal Power Act directing the Company to propose revisions to
transmission rates or show cause why such a change should not be required. The Company is evaluting its response and will respond
to the order before the end of the second quarter, 20 I 8.
Deferred 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 defened income tax assets and determined it is more likely than not that
deferred income tax assets will be realized.
As of December 37,2017, the Company had $19.6 million of state tax credit carryforwards. Of the total amount, the Company
believes that it is more likely than not that it will only be able to utilize $8.6 million of the state tax credits. As such, the Company has
recorded a valuation allowance of $ I I .0 million against the state tax credit carryforwards and reflected the net amount of $8.6 million
as an asset as of December 31,2017. State tax credits expire from 2019 to 2028. The Company also has approximately $3.5 million of
federal tax credit carryforwards and the Company believes that it is more likely than not all the federal credits will be utilized. The
federal tax credits expire in 2036.
Status of Internal Revenue Service (IRS) Examinations
The Company and its eligible subsidiaries file consolidated federal income tax retums. The Company also files state income tax
FERC FORM NO.1 't22.29
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t't1t20't8
Year/Period of Report
2017tQ4
Notes to Financial Statements
returns in certain jurisdictions, including ldaho, Oregon, Montana and Alaska. Subsidiaries are charged or credited with the tax effects
of their operations on a stand-alone basis. The IRS has completed its examination of all tax years through 201 I and all issues were
resolved related to these years. The statute of limitations for the IRS to review the2012 and 2013 tax years has expired, and the
Company has received a notice of an IRS review in 20 I 8 for tax years 2014 through 201 6. 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.
Regulatory Assets and Liabilities Associated with Income Taxes
The Company had regulatory assets and liabilities related to the probable recovery/refund of certain deferred income tax assets and
liabilities through future customer rates as of December 3l (dollars in thousands):
2017 2016
Regulatory assets for deferred income taxes
Regulatory liabilities for deferred income taxes
$90,3r5 $
452,817
109,853
28,966
NOTE 9. 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 31 (dollars in thousands):
2017 2016
Utility power resources $ 380,523 $ 402,575
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):
2018 2019 2020 2021 2022 Thereafter Total
Power resources
Natural gas resources
Total
$ 189,262 $
77,936
185,610 $
60,942
161,596 $
48,098
149,125 $
31,428
147,573 $
31,428
$ 1,749,421
576,314
916,255
326,482
$ 267,198 $ 246,552 $ 209,694 $ 180,553 $ t79,001 $ 1,242,737 $ 2,325,735
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 defenal and recovery
mechanisms.
The above future contractual commitments for power resources include fixed contractual amounts related to the Company's contracts
with certain Public Utility Districts (PUD) to purchase portions of the output of certain generating facilities. Although Avista Corp.
has no investment in the PUD generating facilities, the fixed contracts obligate Avista Corp. to pay certain minimum amounts 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 ofexisting debt service cost and its proportionate share ofthe variable operating expenses ofthese projects. The
minimum amounts payable under these contracts are based in part on the proportionate share of the debt service requirements of the
FERC FORM NO. 2,S-Q (REV 12-07)'t22.30
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04111t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 31,2017 (principal and interest) was $63.5 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):
201 8 2019 2020 2021 2022 Thereaf'ter Total
Contractualobligations $ 32,205 $ 34,996 $ 33,961 $ 28,939 $ 33,925 $ 193,595 $ 357,621
NOTE 10. NOTES PAYABLE
Avista Corp.
Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0 million that expires in
April 2021 . The committed line of credit is secured by non-transferable first mortgage bonds of Avista Corp. issued to the agent bank
that would only become due and payable in the event, and then only to the extent, that Avista Corp. defaults on its obligations under
the committed line of credit.
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 3 I , 2017 , 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 3l (dollars in thousands):
2017 2016
Balance outstanding at end ofperiod
Letters of credit outstanding at end of period
Average interest rate at end of period
Maturity
Year Description
As of December 31,2017 and2016, the borrowings outstanding under Avista Corp.'s committed line of credit were classified as
short-term borrowings on the Balance Sheet.
NOTE II. BONDS
The following details long-term debt outstanding as of December 3l (dollars in thousands):
$ r0s,000 $ 120,000
$ 34,420 $ 34,353
2.26% 1.50o/o
2017 2016
Interest
Rate
2018
2018
2019
2020
2022
2023
2028
2032
250,000
22,500
90,000
52,000
250,000
r 3,500
25,000
66,700
250,000
22,500
90,000
s2,000
250,000
13,s00
2s,000
66,700
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 (l)
5.95o/o
7.39o/o-7.45o/o
5.45o/o
3.89%
5.13o/o
7.18o/o-7.54o/o
6.37o/o
(l)
FERC FORM NO. 2/3-Q (REV,t2-07)122.31
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t',t1t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
2034
2035
2037
2040
2041
2044
2045
2047
2047
2051
17,000
150,000
150,000
35,000
85,000
60,000
100,000
80,000
90,000
175,000
17,000
150,000
r 50,000
35,000
85,000
60,000
100,000
80,000
Secured Pollution Control Bonds (l)
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds
First Mortgage Bonds (2)
First Mortgage Bonds
Total secured bonds
Secured Pollution Control Bonds held by Avista
Corporation (2)
Total long-term debt and capital leases
(l)
6.25o/o
5.70o/o
5.55o/o
4.45o/o
4.1 lo/o
4.37%
4.23o/o
3.91%
3.54o/o 175,000
1,711,700 1,621,700
(83,700)
$ 1,628,000 $
(83,700)
1,538,000
(l)In December 2010,$66.7 million and $17.0 million of the City of Forsyth, Montana Pollution Control Revenue Refunding
Bonds (Avista Corporation Colstrip Project) due in 2032 and 2034, respectively, which had been held by Avista Corp. since
2008 and 2009, respectively, were refunded by new variable rate bond issues (Series 2010A and Series 20108). 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 2017, Avista Corp. issued and sold $90.0 million of 3.91 percent first mortgage bonds due in2047 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 a portion of the borrowings outstanding under Avista Corp.'s $400.0 million committed line
of credit. In connection with the execution of the bond purchase agreement, Avista Corp. cash-settled five interest rate swap
derivatives (notional aggregate amount of $60.0 million) and paid a total of $8.8 million.
(2)
The following table details future long-term debt maturities including advances from associated companies (see Note l2) (dollars in
thousands):
201 8 2019 2020 2021 2022 Thereafter Total
Debt maturities s 272,500 $ 90,000 $ 52,000 $$ 250,000 $ 1,0r5,047 $ 1,679,547
Substantially all of Avista Corp.'s owned properties are subject to the lien of its respective mortgage indentures. Under the Mortgage
and Deed of Trust (Mortgage) securing its first mortgage bonds (including secured medium-term notes), Avista Corp. may issue
additional first mortgage bonds under its specific mortgage in an aggregate principal amount equal to the sum of:
66-213 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.
a
a
FERC FORM NO. 2/3-Q (REV 12-07)122.32
a
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20't8
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 Avista Corp. has "net eamings" (as defined in the Mortgage) for any period of l2 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 31 ,2017 ,
property additions and retired bonds would have allowed, and the net earnings test would not have prohibited, the issuance of $ I .3
billion in aggregate principal amount of additional first mortgage bonds at Avista Corp.
NOTE 12. ADVANCES FROM ASSOCIATED COMPANIES
ln 1997, the Company issued Floating Rate Junior Subordinated Deferrable lnterest Debentures, Series B, with a principal amount of
$5 1.5 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:
20t7 2016 2015
Low distribution rate
High distribution rate
Distribution rate at the end of the year
l.&l%o
2.36%
2.36%
1.29o/o
l.8lo/o
1.81%
l.llo/o
1.29o/o
1.29o/o
Concurrent with the issuance of the Preferred Trust Securities, Avista Capital Il issued $1.5 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 1,2037.|n
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 13. 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 I - 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.
Level2 - Pricing inputs are other than quoted prices in active markets included in Level I , 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
FERC FORM NO. Z3.Q (REV {2.07)122.33
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
20't7tQ4
Notes to Financial Statements
throughout the full term of the instrument, can be derived from observable data or are suppofted 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 intemally 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 judgment,
and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The
determination ofthe fair values incorporates various factors that not only include the credit standing ofthe counterparties involved
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):
2017
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Long-term debt (Level 2)
Long-term debt (Level 3)
Advances from associated companies (Level 3)
$951,000 $
677,000
51,547
1,067,783 $
713,147
41,882
951,000 $
587,000
51,547
1,049,661
583,073
38,660
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 party brokers for debt with similar risk and terms. The
price ranges obtained from the third party brokers consisted of par values of 8l .25 to I 30.03, where a par value of 100.00 represents
the carrying value recorded on the Balance Sheets. Level 2long-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.
FERC FORM NO.1
20t6
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20't8
Year/Period of Report
2U7tA4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12.07)122.35
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4l1'U2018
Year/Period of Report
20't7lQ4
Notes to Financial Statements
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, 2017 at fair value on a recurring basis (dollars in thousands):
Level I Level 2 Level 3
Counterparty
and Cash
Collateral
Netting ( I )Total
December 31,2017
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreements
Foreign curency exchange derivatives
Interest rate swap derivatives
Deferred compensation assets:
Mutual Funds:
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 curency exchange derivatives
Interest rate swap derivatives
Total
December 31,2016
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
$$ 43,8t4 $
32
7,477
$ (42,550) $ 1,264
183 (183)
(l)
(2,574)
3l
4,903
1,638
6,631
r,638
6,631
$ 8,269 $ 51,323 $ 183 $ (4s,308) $ 14,467
$$ 71,342 $$ (69,988) $ 1,3s4
I
73,513
3,347
13,245
l9
(r83)
(1)
(37,s44)
3,164
13,245
t9
35,969
$$ 144,856 $ 16,6t1 $ (107,716) $ 53,75r
The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on
the Balance Sheets as of December 31,2016 at fair value on a recurring basis (dollars in thousands):
Level I Level2 Level 3
Counterparty
and Cash
Collateral
Netting (l)Total
$ (46,0ee) $ l,8es$$ 47,994 $
69 (6e)
FERC FORM NO. Z3.Q 1 't22.36
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1',U2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
Power exchange agreement
Foreign currency exchange derivatives
Interest rate swap derivatives
Deferred compensation assets:
Mutual Funds:
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
$ 7,270 $ 61,097 $94 $ (50,546)$ 17,915
$$ 56,871 $$ (55,957) $914
5
13,098
(2s)
(5)
(4,348)
25
1,789
5,48 r
8,750
1,789
5,48 t
5,954
13,474
76
5,885
13,449
76
23
34,730
(6e)
(2s)
(5)
(39,248)
$$ 130,877 $ 19,504 $ (95,304) $ 55,077
( I ) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable
master netting agreement exists. In 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
4 for additional discussion of derivative netting.
To establish fair value for energy commodity derivatives, the Company uses quoted market prices and forward price curves to
estimate the fair value of energy commodity derivative 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 (NYMEX) 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
Level 2.
To establish fair values for interest rate swap derivatives, the Company uses forward market curves for interest rates forthe 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 pany 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
FERC FORM NO. 2/3-Q (REV 12-07)122.37
28
73,978
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 curves 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 ofactively traded equity and bond funds with quoted prices in active markets. The balance disclosed in the table
above excludes cash and cash equivalents of $0.2 million as of December 37,2017 and $0.4 million as of December 31,2016.
Level 3 Fair Value
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, which expires in June 2019,the Company uses the Black-Scholes-Merton valuation
model to estimate the fair value, and this model includes significant inputs not observable or corroborated in the market. These inputs
include: l) the strike price (which is an internally derived price based on a combination ofgeneration plant heat rate factors, natural
gas market pricing, delivery and other O&M charges) and 2) estimated delivery volumes. Significant increases or decreases in these
inputs in isolation would result in a significantly higher or lower fair value measurement. Generally, changes in overall commodity
market prices are accompanied by directionally similar changes in the strike price used in the calculation.
For the natural gas commodity exchange agreement, the Company uses the same Level 2 brokered quotes described above; however,
the Company also estimates the purchase and sales 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 31,2017 (dollars in thousands):
Fair Value
(Net) at
December 31,
2017
Valuation
Technique Unobservable Input Range
Power exchange agreement $ (13,245) Surrogate facility O&M charges $38.87-$45.2OlMWh (1)
FERC FORM NO. 2/3-Q (REV 12-07)122.38
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
pricing Escalation factor
Transaction volumes
5o/o - 2018 to 2019
256,663 - 396,984 MWhs
Power option agreement (le)Black-Scholes-
Merton
Strike price
Delivery volumes
$36.6444Wh - 2018
s42.5I/MWh - 2018
94,221 - 190,339 MWhs
Natural gas exchange
agreement
(3,164) Intemallyderived
weighted-average
cost of gas
Forward purchase prices
Forward sales prices
Purchase volumes
Sales volumes
$1.60 - $2.07lmmBTU
$1.56 - $2.98/mmBTU
I15,000 - 310,000 mmBTUs
60,000 - 310,000 mmBTUs
( I ) The average O&M charges for the delivery year beginning in November 2017 are $41.95 per MWh.
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 offair 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 3l (dollars in thousands):
Natural Gas
Exchange
Agreement
Power
Exchange
Agreement
Power
Option
Agreement Total
Year ended December 31,20172
Balance as of January 1 , 2017
Total gai ns or ( losse s) (real izedlunre alized):
Included in regulatory assets/liabilities (l)
Settlements
Ending balance as of December 31,2017 (2)
Year ended December 31, 2016:
Balance as of January 1 , 2016
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (l)
Settlements
Ending balance as of Decemb er 31,2016 (2)
$ (5,885) $ (13,449) $ (76) $ (t9,4lo)
3,292
(s7r)
(7,674)
7,878
57 (4,325)
7,307
$ (3,164) $ (13,24s) $ (19) $ (16,428)
$ (5,039) $ (21,961) $ (r24) $ (27,124)
259
(1,105)
400
8,112
48 707
7,007
$ (s,88s) $ (t3,44e) $ (76) $ (le,4l0)
( I ) 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 of any derivatives instruments during the periods presented
in the table above.
NOTE 14. COMMON STOCK
The payment of dividends on common stock could be limited by
FERC ,|122.39
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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,
the hydroelectric licensing requirements of section l0(d) of the FPA (see Note I ),
certain requirements underthe OPUC approval of the AERC acquisition in 20l4.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, and
the Merger Agreement with Hydro One, which states Avista Corp. cannot (A) declare, authorize, set aside for
payment or pay any dividend on, or make any other distribution in respect of, any shares ofits capital stock, other
than (l ) dividends paid by any subsidiary of the Company to the Company or to any wholly owned subsidiary of the
Company, (2) quarterly cash dividends with respect to the Company common stock not to exceed the 2017 annual
per share dividend rate by more than $0.06 per year, with record dates and payment dates consistent with the
Company's current dividend practice, or (3) a "stub period" dividend to holders of record of Company common
stock as of immediately prior to the effective time of the merger equal to the product of (x) the number of days from
the record date for payment of the last quarterly dividend paid by the Company prior to the effective time of the
merger, multiplied by (y) a daily dividend rate determined by dividing the amount of the last quarterly dividend
prior to the effective time of the merger by ninety-one or (B) adjust, split, combine, subdivide or reclassify any
shares of its capital stock (see "Note 3" for additional information regarding the merger).
The Company declared the following dividends for the year ended December 3l
2017 2016
a
a
a
Dividends paid per common share $ 1.43 $1.37
Under the most restrictive of the dividend limitations discussed above, which are the requirements of the Merger Agreement with
Hydro One, the amount available for dividends at December 31,2017 was limited to $97.6 million (which is based on the number of
shares outstanding as ofDecember 31,2017 and an annual dividend of$1.49 per share that was declared on February 2,2018).
The Company has l0 million authorized shares of preferred stock. The Company did not have any preferred stock outstanding as of
December 31, 2017 and 2016.
Equity Issuances
In 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. Through December 31,2017,2.7 million shares were issued underthese agreements resulting in total
net proceeds of $120.0 million ($54.7 million in2017 and $65.3 million in 2016), leaving l.l million shares remaining to be issued.
NOTE I5. COMMITMENTS AND CONTINGENCIES
In the course of its business, the Company becomes involved in various claims, controversies, disputes and other contingent matters,
including the items described in this Note. Some of these claims, controversies, disputes and other contingent matters involve
litigation or other contested proceedings. For all such matters, the Company intends to vigorously protect and defend its interests and
FERC FORM NO. 2/3-Q (REV t2-07)'t22.40
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
o4t11t20't8
Year/Period of Report
20't7tQ4
Notes to Financial Statements
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 ofincurred costs through the ratemaking process.
California Refund Proceeding
In February 201 6, APX, a market maker in the Califomia 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 "California Parties"). The penalty arises as a result of the FERC's finding that APX committed violations
in the California market in the summer of 2000. APX is making these asseftions 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 California
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
Califomia Parties in 2014 insulates it from any such liability and that as a dismissed party 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.
Cobinet Gorge Total Dissolved Gas Abatement Plan
Dissolved atmospheric gas levels (refened to as "Total Dissolved Gas" or "TDG") in the Clark Fork River exceed state of ldaho and
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 Corp. is reducing TDG by constructing spill crest
modifications on spill gates at the dam. These modifications have been shown to be effective in reducing TDG downstream. TDG
monitoring and analysis is ongoing. Under the terms of the mitigation plan, Avista Corp. will continue to work with stakeholders to
determine the degree to which TDG abatement reduces future mitigation obligations. The Company has sought, and 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. ln 2017, parties to the CFSA reached an agreement regarding Avista Corp.'s obligations
regarding fish passage and related issues. Avista Corp. filed this agreement, which amends the original Clark Fork Settlement
Agreement, with the FERC. Avista Corp. has also initiated a license amendment and permitting efforts in support of construction of
the permanent fishway at Cabinet Gorge. Construction is expected to begin in late 2018. The Company has sought, and 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.
FERC FORM NO. 2/3-Q (REV 12-07)122.4',1
Collec'tive B argaining Agreements
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
The Company's collective bargaining agreements with the IBEW represent approximately 45 percent of all of Avista Corp.'s
employees. A three-year agreement with the local union in Washington and ldaho 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 will expire in March 2020.
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 to our operations. However, the Company believes that the possibility of this occurring is remote.
Legal Proceedings Related to the Pending Acquisition by Hydro One
See Note 3 for information regarding the proposed acquisition of the Company by Hydro One.
In connection with the proposed acquisition, as of the date of this annual report, the three lawsuits that had been filed in the United
States District Court for the Eastem District of Washington have been voluntarily dismissed by the plaintiffs. Those cases were
captioned as follows:
. Jenfrv. AvistaCorporation., etal.,No.2:17-cv-00333 (E.D. Wash.)(filed September25,2017);
c Samuelv. Avista Corporation, et al.,No.2:17-cv-00334 (E.D. Wash.) (filed September 26,2017); and
o Sharpenter v. Avista Corporation., e/ a/., No. 2:17 -cv-00336 (E.D. Wash.) (filed September 26,2017)
There remains one lawsuit that has been filed in the Superior Court for the State of Washington in and for Spokane County, captioned
as follows:
t Finkv. Morris, et al.,No. 17203616-6 (filed September 15, 2017,amended complaint filed October 25,2017).
This lawsuit was filed against Hydro One Limited, Olympus Holding Corp., Olympus Corp. and Bank of America Merrill Lynch,, as
well as all members of the Company's Board of Directors, namely Erik Anderson, Kristianne Blake, Donald Burke, Rebecca Klein,
Scott Maw, Scott Morris, Marc Racicot, Heidi Stanley, John Taylor and Janet Widmann.
The complaint generally alleges that the members of the Board breached their fiduciary duties by, among other things, conducting an
allegedly inadequate sale process and agreeing to the acquisition at a price that allegedly undervalues Avista Corporation, and that
Hydro One Limited, Olympus Holding Corp., and Olympus Corp. aided and abetted those purported breaches of duty. The aiding and
abetting claims were brought only against Hydro One Limited, Olympus Holding Corp. and Olympus Corp. The complaints seek
various remedies, including monetary damages, including attorneys' fees and expenses. The complaint has been stayed by the court
until the closing of the transaction at which time the plaintiff will have the option to file an amended complaint within 30 days of such
closing. If the amended complaint is not filed within the 30 days the suit will be dismissed.
All defendants deny any wrongdoing in connection with the proposed acquisition and plan to vigorously defend against all pending
claims; however, the Company cannot at this time predict the eventual outcome.
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 incurred. 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
FERC FORM NO. 2/3.Q (REV I2.07)122.42
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Notes to Financial Statements
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 operations, the Company seeks, to the 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.
FERC FORM NO. 2/3-Q (REV 12.07)122.43
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t'.t1t20't8
Year/Period of Report
20't7tQ4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.44
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20'18
Year/Period of Report
2017tQ4
Notes to Financial Statements
NOTE 16. REGULATORY MATTERS
Power Cost Deferrals and Recovery Mechanisms
Deferred power supply costs are recorded as a deferred charge or liability on the Balance Sheets for future prudence review and
recovery or rebate 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:
short-term wholesale market prices and sales and purchase volumes,
the level, availability and optimization of hydroelectric generation,
the level and availability of thermal generation (including changes in fuel prices),
retail loads, and
sales of surplus transmission capacity.
In Washington, the ERM allows Avista Corp. to periodically increase or decrease electric rates with WUTC 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 and defer these
differences (over the $4.0 million deadband and sharing bands) for future surcharge or rebate to customers. For 2077, the Company
recognized a pre-tax benefit of $4.6 million under the ERM in Washington compared to a benefit of $5.1 million for 2016. Total net
deferred power costs under the ERM were a liability of $23.7 million as of December 31,2017 and a liability of $21.3 million as of
December 31,2016. 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 for future surcharge or rebate to 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 $6.1 million as of December 31,2017 and a liability of $2.2 million as of
December 31,2016. These deferred power cost balances represent amounts due to customers.
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
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 $37.5 million
as of December 31,2017 and a liability of $30.8 million as of December 31,2016. These balances represent amounts due to
customers.
Decoupling and Earnings Sharing Mechanisms
Decoupling (also known as an FCA in Idaho) is a mechanism designed to sever the link between a utility's revenues and consumers'
energy usage. In each ofAvista Corp.'sjurisdictions, 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 and assumed "normal" kilowatt hour and therm sales, rather than being
based on actual kilowatt hour and therm sales. The difference between revenues based on the number of customers and "normal" sales
and revenues based on actual usage is deferred and either surcharged or rebated to customers beginning in the following year. Only
residential and certain commercial customer classes are included in decoupling mechanisms.
FERC FORM NO. 2/3-Q (REV 12-07)122.45
a
a
a
a
a
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
2017to,4
Notes to Financial Statements
l(ashington Decoupling and Earnings Sharing
In Washington, the WUTC approved the Company's decoupling mechanisms for electric and natural gas for a five-year period
beginning January l, 2015. Electric and natural gas decoupling surcharge rate adjustments to customers are limited to a 3 percent
increase on an annual basis, with any remaining surcharge balance carried forward for recovery in a future period. There is no limit on
the level ofrebate rate adjustments.
The decoupling mechanisms each include an after-the-fact eamings test. At the end of each calendar year, separate electric and natural
gas earnings calculations are made for the calendar yearjust ended. These earnings tests reflect actual decoupled revenues,
normalized power supply costs and other normalizing adjustments. If the Company earns more than its authorized ROR in
Washington, 50 percent of excess eamings are rebated to customers through adjustments to decoupling surcharge or rebate balances.
See below for a summary of cumulative balances under the decoupling and eamings sharing mechanisms.
Idaho 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 201 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, eamed 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. This after-the-fact eamings test was discontinued, effective January l,
2016,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.
Oregon Decoupling Mechanism
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. There will be an opportunity for
interested parties to review the mechanism and recommend changes, if any, by September 2019.|n Oregon, an earnings review is
conducted on an annual basis. In the annual earnings review, if the Company earns more than 100 basis points above its allowed
ROE,one-thirdoftheearningsabovethe l00basispointswouldbedeferredandlaterreturnedtocustomers.Theeamingsreviewis
separate from the decoupling mechanism and was in place prior to decoupling. See below for a summary of cumulative balances
under the decoupling and earnings sharing mechanisms.
Cumulative Decoupling and Earnings Sharing Mechanism Balances
As of December 3l ,2017 and December 31 ,2016, the Company had the following cumulative balances outstanding related to
decoupling and earnings sharing mechanisms in its various jurisdictions (dollars in thousands):
December 31, December 31,
2016
Washington
Decoupling surcharge
Provision for earnings sharing rebate
Idaho
Decoupling surcharge
Provision for earnings sharing rebate
Oregon
$
$
14,240 $
(3,420)
3,471 $
(2,350)
30,408
(s,r r3)
8,292
(5, I 84)
FERC FORM NO. 2/3-Q (REV 12-07)122.46
2017
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
20',t7tQ4
Notes to Financial Statements
Decoupling surcharge/(rebate)
Provision for earnings sharing rebate
$ (1,168) $ 2,021
Interest Rale Swaps included in the 2017 llashington General Rate Cases
On October 27,2017, WUTC Staff and other parties to Avista Corp.'s electric and natural gas general rate cases filed theirtestimony.
These parties recommended lower revenue requirements than what was proposed in Avista Corp.'s original filings. Additionally, the
WUTC Staff recommended the exclusion of the Company's 2016 seftlement costs from the cost of capital calculation. The total
amount of the 2016 settlement costs was $54.0 million, with approximately 60 percent of this total being allocable to Washington.
In addition to the settlement costs from 2016, the Company has a net regulatory asset of $8.8 million for interest rate swaps settled
during the third quarter of 2017 , and a net regulatory asset of $66.0 million for unsettled interest rate swaps as of Decemb er 31 , 2017
related to forecasted debt issuances. Of those amounts, approximately 60 percent relate to Washington. If recovery of the 2016 settled
interest rate swap settlement payments referenced above is disallowed by the WUTC, this could change the Company's current
conclusion that settlement payments related to the 201 7 settled interest rate swaps and the unsettled interest rate swaps are probable of
recovery through rates. If the Company concluded that recovery of these swap related payments were no longer probable, the
Company will be required to derecognize the related regulatory assets and liabilities with an adjustment through the income statement,
and any subsequent gains and losses would be recognized through the income statement rather than recorded as a regulatory asset or
liability.
lnterest rate swaps are a tool used throughout multiple industries to manage interest rate risk. They also provide certainty for future
cash flows associated with future borrowings. Since interest costs are included in the Company's costs of service to be recovered from
customers, the Company has used this tool to manage these costs for the benefit of the Company's customers. The settlement of
interest rate swaps results in either a benefit or a cost to the Company which, in either case, has historically been reflected in rates
authorized by the WUTC in general rate cases. Accordingly, the Company still believes the interest rate swap payments are probable
of recovery and will continue to work through the rate case process. Depending on the outcome of this proceeding, the Company
could determine to not manage interest rate risk through swap transactions in the future.
NOTE 17. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information consisted of the following items for the years ended December 3l (dollars in thousands):
2017 20t6
Cash paid for interest
Cash paid for income taxes
Cash received for income tax refunds
$88,368 $
3,932
(46,916)
79,183
4,gg l
( I 9,505)
FERC FORM NO. 2/3-Q (REV {2-07)122.47
s:
Avista Corporation (1)
(2)
Original
Resubmission
Date oI Repon
(Mo, Da, Yr)
04t11t20't8
YeailPenoo ot Repon
End ot 20171Q4
Summary o, Utility Plant and Accumulated Provisions for Deprecaation, Amortization and Depletion
Line
No.
Item
(a)
Total Company
For the Current
Quarter/Year
1 UTILITY PLANT
ln Service
3 Plant in Service (Classified)5,636,334,277
4 Property Under Capital Leases 5,777,969
5 Plant Purchased or Sold
6 Completed Construction not Classified
7 Experimental Plant Unclassified
8 TOTAL Utility Plant (Total of lines 3 thru 7)5,M2,',t'.t2,246
0 Leased to Others
10 Held for Future Use 8,321,112
11 Construction Work in Progress '151,271,',t70
12 Acquisition Adjustments
13 TOTAL Utility Plant (Total of lines 8 thru 12)5,801,704,528
14 Accumulated Provisions for Depreciation, Amortization, & Depletion 1,876,263,672
15 Net Utility Plant (Total of lines 'l 3 and 14)3,925,440,856
16 DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17 ln Service:
18 Depreciation 1,796,469,363
'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 79,794,309
22 TOTAL ln Service (Total of lines '18 thru 21)1,876,263,672
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)
31 Abandonment of Leases (Natural Gas)
32 Amortization of Plant Acquisition Adjustment
33 TOTAL Accum. Provisions (Should agree with line 14 above)(Total of lines 22,26, 30,31 , and 32)1,876,263,672
FERC FORM NO. 2 (12-96)Page 200
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lI_lAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
Endot 20'l7lQ4
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued)
Line
No.
Electric
(c)
Gas
(d)
Other (specifo)
(e)
Common
(f)
1
2
I 3,968,980,807 1,125,489,566 541,863,904
4 223.615 2U.354 5,300,000
(
b
7
8 3,969,204,422 1,125,743,920 547,163,904
I
10 8,1 30,526 190,586
11 103,841 ,950 9,974,32s 37,454,895
12
13 4,081 ,I 76,898 1,135,908,831 584,618,799
14 1,376,068,208 357,528,033 142,667,431
15 2,705,108,690 778,380,798 441,951,368
16
17
1B 1,355,247,552 356,537,862 84,683,949
19
20
21 20,820,656 990,1 71 57,983,482
22 1,376,068,208 357,528,033 142,667,43',1
23
24
25
26
27
28
29
30
31
32
33 1,376,068,208 357,528,033 142,667,431
FERC FORM NO.2 (12-96)Page 201
I
I
I
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort ls:
fiRn originat
flA Resubmission
Date of Report(Mo, Da, YQ
04t1',U2018
Year/Period of Report
End ot 20171Q4
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 corrections of additions and retirements for the current or preceding year.
4. Enclose in parenthesis credit adjustments of plant accounts to indicate the negative effect of such accounts.
5. Classifo Account 't 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 reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have nol 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 showinq the account distributions of these tentative classifications in columns (c) and (d),
Line
No.
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
I INTANGIBLE PLANT
2 301 Organization
2 302 Franchises and Consents
4 303 Miscellaneous lntangible Plant 3,471,887 25,134
(TOTAL lntangible Plant (Enter Total of lines 2 thru 4)3,47',t,887 25,134
6 PRODUCTION PLANT
7 Natural Gas Production and Gathering Plant
8 325.1 Producing Lands
325.2 Producing Leaseholds
10 325.3 Gas Rights
11 325.4 Rights-of-Way
12 325.5 Other Land and Land Rights
'13 326 Gas Well Structures
14 327 Field Compressor Station Structures
15 328 Field Measuring and Regulating Station Equipment
16 329 Other Structures
17 330 Producing Gas Wells-Well Construction
18 331 Producing Gas Wells-Well Equipment
19 332 Field Lines
20 333 Field Compressor Station Equipment
21 334 Field Measuring and Regulating Station Equipment
22 335 Drilling and Cleaning Equipment
aa 336 PurificationEquipment
24 337 Other Equipment
25 338 Unsuccessful Exploration and Development Costs
26 339 Asset Retirement Costs for Natural Gas Production and
27 TOTAL Production and Gathering Plant (Enter Total of lines B
28 PRODUCTS EXTRACTION PLANT
29 340 Land and Land Rights
30 341 Structures and lmprovements
31 342 Extraction and Refining Equipment
32 343 Pipe Lines
33 U4 Extracted Products Storage Equipment
FERC FORM NO. 2 (12-96)Pago 2O4
I
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
041't1t20't8
Year/Period of Report
End of 2017lQ4
Gas Plant in Service (Accounts'101,102,103, and 106) (continued)
including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of
Account 101 and 1 06 will avoid serious omissions of respondent's reported amount for plant actually in service at end of year.
6. Show in column (D reclassifications or transfers within utility plant accounts. lnclude also in column (f) the additions or reductions of primary account
classifications arising from dishibution of amounts initially recorded in Account 1 02. ln showing the clearance of Account 102, include in column (e) the
amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (Q 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. For each amount comprising the reported balance and changes in Account 1 02, state the property purchased or sold, name of vendor or purchaser,
and date of transaction. lf proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of such
filing.
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(s)
I
2
3
4 616,466 2,880,555
5 616,466 2,880,555
6
7
I
I
10
11
12
13
14
15
16
17
18
'19
20
21
22
23
24
25
to
27
28
29
30
31
32
11
FERC FORM NO.2 (12-96)Page 205
I I
I
Name of Respondent
Avista Corporation
This ReDort ls:(1) fiRn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1',U2018
Year/Period of Report
End ot 20171Q4
Gas Plant in Service (Accounts '101, 102, 'l 03, and 106) (continued)
Line
No.
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
34 345 CompressorEquipment
35 346 Gas Measuring and Regulating Equipment
36 347 Other Equipment
5t 348 Asset Retirement Costs for Products Extraction Plant
38 TOTAL Products Extraction Plant (Enter Total of lines 29 thru 37)
39 TOTAL Natural Gas Production Plant (Enter Total of lines 27 and
40 Manufactured Gas Production Plant (Submit Supplementary
41 TOTAL Production Plant (Enter Total of lines 39 and 40)7,628
42 NATURAL GAS STORAGE AND PROCESSING PLANT
43 Underground Storage Plant
44 350.1 Land 1,213,752 92,849
45 350.2 Rights-of-Way 59,8'12
46 351 Structures and lmprovements 2,101,351 306,632
47 352 Wells 13,930,342 306,632
48 352.1 Storage Leaseholds and Rights 254,354
49 352.2 Reservoirs 't,667,492
50 352.3 Non-recoverable Natural Gas 5,810,31 1
51 353 Lines 1,106,781
52 354 Compressor Station Equipment 15,071 ,598 306,632
53 355 Other Equipment 878,29',1 306,632
54 356 PurificationEquipment 403,7',t2
55 357 Other Equipment 2,'t78,970 306,632
56 358 Asset Retirement Costs for Underground Storage Plant
57 TOTAL Underground Storage Plant (Enter Total of lines 44 thru 44,676,766 1,626,009
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 Regulating 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 Regulating Equipment
76 364.6 Compressor Station Equipment
77 364.7 Communications Equipment
78 364.8 Other Equipment
79 364.9 Asset Retirement Costs for Base Load Liquefied Natural Gas
80 TOTAL Base Load Liquefied Nat'l Gas, Terminaling and Processing
FERC FORM NO.2 (12-96)
7,624
Page 206
Name of Respondent
Avista Corporation
This ReDort ls:(1) []Rn orisinat(2) !A Resubmission
Date of Report
(Mo, Da, Y0
0411112018
Year/Period of Report
Endot 20'l7lQ4
Gas Plant in Service (Accounts 10'1,102, 't03, and 106) (continued)
Line Retirements
(d)
Adjustments
(e)
Transfers
(0
Balance at
End of Year
(q)
34
35
36
37
38
39
40 7,628
41 7,628
42
43
44 1,306,601
45 59,812
46 2,407,983
47 70,046 14,166,928
48 254,354
49 1,667,492
50 5,810,31 I
51 1,106,781
52 15,378,230
53 1,184,923
54 403,7',t2
55 2,485,602
56
57 70,&t6 46,232,729
58
59
60
61
62
63
64
65
66
67
6B
69
70
71
72
73
74
75
76
77
78
79
80
FERC FORM NO. 2 (r2-96)Page 207
No.
I
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDorl ls:
[]Rn originat
flA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
Endot 20'l7lQ4
Gas Plant in Servace (Accounts 101,1.02,103, 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 57,44,676,766 1,626,009
82 TRANSMISSION PLAN
83 365.1 Land and Land Rights
84 365.2 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
91 372 Asset Retirement Costs for Transmission Plant
o,TOTAL Transmission Plant (Enter Totals of lines 83 thru 91)
93 DISTRIBUTION PLANT
94 374 Land and Land Rights 886,774 33,328
95 375 Structures and lmprovements 1 ,310,799 57,540
96 376 Mains 504,017,728 r14,689,983
97 377 Compressor Station Equipment
98 378 Measuring and Regulating Station Equipment-General 11,116,597 1,278,419
99 379 Measuring and Regulating Station Equipment-City Gate 8,906,586 193,481
100 380 Services 305,467,723 27,974,481
r01 381 Meters 117,484,380 8,537,088
102 382 Meter lnstallations
103 383 House Regulators
104 384 House Regulator lnstallations
105 385 lndustrial Measuring and Regulating Station Equipment 4,91 1,365 86,112
106 386 Other Property on Customers' Premises
107 387 Other Equipment 539
108 388 Assel Retirement Costs for Distribution Plant
109 TOTAL Distribution Plant (Enter Total of lines 94 thru 108)954,',t02,491 82,850,432
110 GENERAL PLANT
111 389 Land and Land Rights 1,449,716 1 ,917,593
112 390 Structures and lmprovements 5,837,839 1,323,017
113 391 Office Furniture and Equipment 621,582 162,135
114 392 Transportation Equipment 16,356,516 847,1 90
115 393 Stores Equipment 145,386
116 394 Tools, Shop, and Garage Equipment 6,899,179 878,926
117 395 LaboratoryEquipment 342,466
118 396 Power Operated Equipment 4,080,s50 6,570
119 397 CommunicationEquipment 3,405,773 155,824
120 398 MiscellaneousEquipment 2,367
121 Subtotal (EnterTotal oflines 111 thru 120)39,14',t,374 5,291,408
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)39,141,374 5,291,408
125 TOTAL (Accounts 101 and '106)1 ,04',t ,400,146 89,792,983
126 Gas Plant Purchased (See lnstruction 8)
127 (Less) Gas Plant Sold (See lnstruction 8)
128 Experimental Gas Plant Unclassifi ed
129 TOTAL Gas Plant ln Service (Enter Total of lines 125 thru 1 28)1,041 ,400,146 89,792,983
FERC FORM NO. 2 (12-96)Page 208
I
153
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
lllAn
ls:
Original
IA Resubmission
Date of Report(Mo, Da, Yr)
0411'U2018
Year/Period of Report
Endot 2O'l7lQ4
Gas Plant in Service (Accounts 101, 102, { 03, and I 06) (continued)
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(q)
81 70,046 46,232,729
82
83
84
85
86
87
88
89
90
91
92
93
94 920J02
95 13,775 1,354,564
96 1 ,018,837 547,688,874
97
98 213,982 12,18't,034
99 17,363 4,569 9,087,273
100 442,561 332,999,&3
101 2,576,930 '123,444,538
102
103
104
105 4,997,477
106
t07 539
108
109 4,283,448 4,569 1,032,674,044
t10
t11 3,367,309
112 7,160,856
113 47,318 736,399
114 370,712 156,169 16,989,163
l'15 8,750 136,789
116 104,436 7,673,669
117 1,520 340,946
l'18 90,679 3,996,44'l
119 12,O03 ( 4,56e)3,545,025
120 2,367
121 635,418 151 ,600 43,948,964
122
123
124 635,418 151 ,600 43,948,964
125 5,605,378 156,169 1,125,743,920
126
127
128
129 5,605,378 156,169 1,125,743,920
FERC FORM NO.2 (12-96)Page 209
I I I
I
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t',t1t2018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
Schedule Pase:204 Line No.:40 Column: b
Land & Land Rights
FERC FORM NO. 2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da. Yr)
04t11t20't8
Year/Period of Report
End oI 20171Q4
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 190,586
2 located in Coeur d'Alene, ldaho
3
4
5
6
7
I
I
10
11
12
13
14
15
't6
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
4',1
42
43
44
45 Total 190,586
FERC FORM NO.2 (12-96)Page 214
Avista Corporation (1)
(2\
Original
Resubmission
Date of Report(Mo, Da, Yr)
04t'.t1t2018
Year/Period of Reporl
End ot 20171Q4
Construction Work in Progress-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 Dollar Rd Service Center Addition and Remodel 5,069,736
2 Gas Replace-St&Hwy 1,991,960 14,800,000
3 Minor Projects under $1,000,000 2,912,629 72,700,000
4
5
6 Notes
7 Estimated additional cost amounts represent a five year
8 budget total
I
'10
11
12
13
14
15
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
41
42
43
44
45 Total 9,974,325 87,500,000
FERC FORM NO. 2 (12-96)Page 216
'16
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
2017tQ4
General Description of Construction Overhead Procedure
1 . For each construction 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 different rates are applied to
different types of construction, (e) basis of differentiation in rates for different types of construction, and (f) whether lhe overhead is directly or
indirectly 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. \Mere a net-of-tax rate for borrowed funds is used, show the appropriate tax effect adjustment to the computations below in a manner that
clearly indicates the amounl of reduction in the gross rate for tax effects.
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:. Construction Overhead North Gas. Construction Overhead South Gas
Pool costs are allocated monthly to gas construction projects 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 2017, Avista used a rate of 7.29o/o, which is the allowed Rate of Return contained in the Washington Utilities
Transportation Commission Dockets UE-150204 and UG-150205 rate order issued January 6, 2016.
FERC FORM NO. 2 1 218.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[XlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1'120'18
Year/Period of Report
End ol 20171Q4
General Description of Construction Overhead Procedure (continued)
COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES
1. For line (5), column (d) below, enter he rate granted in the last rate proceeding. lf not available, use he average rate eamed during the preceding 3 years.
2. ldenti!, in a footnote, the specific entity used as he source for the capital struclure figures.
3. lndicate, in a footnote, if the reported rate of retum is one that has been approved in a rate case, black-box setflement rate, or an actual threeyear average rate.
'1. Components of Formula (Derived from actual book balances and actual cost rates):
Line
No.
Tite
(a)
Amount
(b)
Capitalization
Ration (percent)
(c)
Cost Rate
Percentage
(d)
(1) Average Short-Term Debt S
(2) Short-Term lnterest S
(3) Long-Term Debt D d
(4) Prefened Stock P p
(5) Common Equity c c
(6) Total Capitalization
(7) Average Construction Work ln Progress Balance
2. Gross Rate for Borrowed Funds s(SA /) + d[(D(D+P+C) (1-(S/W)]
3. Rate for Other Funds tl-(S/W)l [p(P/(D+P+C)) + C(C(D+P+C))]
4. Weighted Average Rate Actually Used for the Year:
a. Rate for Borrowed Funds -
b. Rate for Other Funds -
2.63
4.66
FERC FORM NO. 2 (REV 12-07)Page 218a
Name Respondent S:
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Reoort(Mo, Da, Yi)
04t11t2o',t8
Year/Period of Report
End ol 20171Q4
Accumulated Provision for Depreciation of Gas Utility Plant (Account'108)
'l . Explain in a footnote any important adjustments during year.
2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas
plant in service, page 204-209, column (d), excluding retirements of nondepreciable 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 dnd in the appropriate functional
classifications.
4. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.9., 7.01, 7 .02, elc.
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)
Sec'tion A. BALANCES AND CHANGES DURING YEAR
1 Balance Beginning of Year 335,655,367 335,655,367
2 Depreciation Provisions for Year, Charged to
a (403) Depreciation Expense 24,654,186 24,654,186
4 (403.1) Depreciation Expense for Asset Retirement Costs
E (413) Expense of Gas Plant Leased to Others
6 Transportation Expenses - Clearing 2,130,488 2,130,488
7 Other Clearing Accounts
8 Other Clearing (Specify) (footnote details):
I
10 TOTAL Deprec. Prov. for Year (Total of lines 3 thru 8)26,784,674 26,784,674
11 Net Charges for Plant Retired:
12 Book Cost of Plant Retired ( 4,934,245)( 4,934,245)
'13 Cost of Removal ( 2,307)( 2,307)
14 Salvage (Credit)
15 TOTAL Net Chrgs for Plant Ret. (Total of lines 12 thru 14)( 4,936,552)( 4,936,552)
16 Other Debit or Credit ltems (Describe) (footnote details):( 965,626)( 965,626)
17
18 Book Cost of Asset Retirement Costs
19 Balance End of Year (Total of lines 1,10,15,16 and 18)356,537,863 356,537,863
Seclion B. BALANCES AT END OF YEAR ACCORDING T0 FUNCTIONAL
CLASSIFICATIONS
21 Productions-Manufactured Gas
22 Production and Gatrering-Natural Gas
23 Products Exhaction-Natural Gas
24 Underground Gas Storage 16,327,003 16,327,003
25 Other Storage Plant
26 Base Load LNG Terminaling and Processing Plant
27 Transmission
28 Diskibution 321,663,862 321,663,862
29 General 18,546,997 18,546,997
30 TOTAL (Total of lines 21 thru 29)356,537,862 356,537,862
FERC FORM NO.2 (12-95)Page 219
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1',U2018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
Schedule Page:219 Line No.: 16 Column: c
Schedule Page: 219 Line No. 16 Column: (c)
lncludes:
Change in RemovalWork in Progress ($965,626)
FERC FORM NO. 2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) ffiRn originat
(2) l-lA Resubmission
Date of Report
(Mo, Da, Yr)
04t11t20't8
Year/Period of Report
End ot 201flp!
Gas Stored (Accounts 1 17.1, 1 17.2, 1 17.3,'1 17.4, 1 U.1, 164.2, and 1 64.3)
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 of
gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and account charged or credited.
2. Report in column (e) all encroachments during the year upon the volumes designated as base gas, column (b), and system balancing gas, column (c), and
gas property recordable in the plant accounts.
3. State in a footnote the basis of segregation of inventory between cunent and noncurrent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
-in(
No
Description
(a)
(Account
117.1)
(b)
(Account
117.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Cunent
(Account
1U.1)
(0
LNG
(Account
164.2)
(s)
LNG
(Account
164.3)
(h)
Total
0
1 Balance at Beginning ol 6,992,07€8,029,02('t5,021,096
2 Gas Delivered to Storage 25,397,52',25,397,527
3 Gas Withdrawn from 21,687,94(2'1,687,9i!0
4 Other Debits and Credits
5 Balance at End of Year 6,992,07€1 1,738,60;'t8,730,683
6 Drh 1,253,06C 5,230,441 6,483,505
7 Amount Per Dth 5.580(2.244i 2.8890
FERC FORM NO.2 (REV 04-04)Page 220
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
lnvestments (Account 123,124, and {36)
1. ReportbelowinvestmentsinAccountsl23,lnvestmentsinAssociatedCompanies,l24,Otherlnvestments,andl36,TemporaryCashlnvesbnents.
2. Provide a subheading for each acmunt and list hereunder he infonnation called for:
induded in Account 1 24, Other lnvestmenb) state number of shares, dass, and series of stock. Minor investrnenb may be grouped by dasses. lnvestmenb induded in Account 1 36,
Temporary Cash lnvestrnents, also may be grouped by dasses.
(b) lnvestment Advances-Report separately for mch person or company the amounts of loans or investnent advances that are propedy indudable in Account 123. lndude advances
subjec{tocurrentrepaymentinAccountl45and146. Wihrespecttoeachadvance,shovvwhethertheadvanceisanoteoropena@ount.
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 difference)
(c)
Purchases or
Additions
During the Year
(d)
1 lnvestment in Spokane Energy (123000)
2 lnvestment in Avista Capital ll (123010)11,547,000
3 Other lnvestrnent - WZN Loans Sandpoint (124350)59,355
4 Other lnvestrnent - Coli Cash Value (124600)21,707,912
(Other lnvestrnent - Coli Borrowings (124610)( 21,707 ,912)
6 Other lnvestrnent - WZN Loans Oregon (124680)20,973
7 Other lnvestrnent - WNP3 Exchange Power (124900)79,626,000
8 Other lnvestrnent - AMT WNP3 Exchange ('124930)( 73,092,978)
I Temp Cash lnvestrnents (136000)22,854
10 Energy Commodity Contract (124020)
11 Other lnvestment-Non Affllicated LT Note Rec (124820)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
39
40
FERC FORM NO. 2 (12-96)Page 222
Name
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
!nvestments (Account 123,124, and 136) (continued)
3. Designate witr an asterisk in column (b) any securities, notes or ac@unts hat were pledged, and in a footnote state the name of pledges and purpose of he pledge.
number.
5. Report in olumn (h) interest and dividend revenues from investnents including such revenues from securities disposed of during the year.
in the books ofaccount if different from cost) and the selling price thereof, not including any dividend or interest adiustment includible in column (h).
Line
No.
Sales or O$er
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 from cost
to respondent give cost to
respondent in a foohote and
explain difference)
(s)
Revenues for
Year
0)
Gain or Loss from
lnvestment
Disposed of
(i)
1
2 11,547,000
2 59,355
4 ( 2,177,828)23,885,740
q 2,'t77,828 ( 23,885,740)
6 9M 20,009
7 79,626,000
8 2,450,030 ( 75,543,008)
I ( 27,451)50,305
'10
11 205,416 126,4',t9
12
'13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
FERC FORM NO.2 (12-96)Page 223
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report
(Mo, Da, Y0
04t11t2018
Year/Period of Report
End of 20171Q4
lnvestments in Subsidiary Companies (Account 123.{)
1. Report below investments in Account 123.1, lnvestments in Subsidiary Companies.
2. Provide a subheading for each company and list thereunder he information called for below. Sub-total by company and give a total in columns (e), (0, (g) and (h).
(a) lnvestrnent in Securities-List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate.
to each advance show whether the advance is a note or open account. List each note giving date of issuance, maturity date, and specifying whether note is a renewal.
3. Reportseparatelytheequityinundistributedsubsidiaryearningssinceacquisition. Thetotal incolumn(e)shouldequaltheamountenteredforAccount418.'1.
Line
No.
Description of lnvestment
(a)
Date
Aquired
(b)
Date of
Maturity
(c)
Amount of
lnvestment at
Beginning of Year
(d)
1 lnvestment in Avista Capital 01t01t1997 206,1 38,971
2 Avista Capital - Equity in Earnings ( 145,455,568)
3 lnvestment in AERC 07t01t2014 89,816,380
4 AERC- Equity in Earnings 11,304,373
E
6
7
8
o
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3'r
32
33
34
35
36
37
38
39
40 TOTAL Cost of Account I 23.{ $TOTAL 161,804,156
FERC FORM NO.2 (12-96)Page 224
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t20'18
Year/Period of Report
End o'f 20171Q4
lnvestments in Subsidiary Companies (Account 123.1) (continued)
4. Designate in a footnote, any securities, notes, or accounts that tvere pledged, and state the name of pledgee and purpose of the pledge.
docket number.
6. Report in mlumn (f) interest and dividend revenues fiom investmenb, including such revenues from securities disposed of during he year.
7. In column (h) report for each investnent disposed of during the year, he gain or loss represented by he difference between cost of he investnent (or he other amount at which
carried in the books of account if different from cost), and he selling price thereof, not induding interest adjusfnents includible in mlumn (f).
8. Report on Line 40, column (a) he total cost of Account 1 23.1.
Line
No.
Equity in Subsidiary
Earnings for Year
(e)
Revenues for Year
(0
Amount of lnvestrnent
at End of Year
(s)
Gain or Loss ftom
lnvestment
Disposed of
(h)
I 206,138,97',!
2 ( 6,942,501)1,190,235 ( 153,588,304)
3 89,816,380
4 9,460,262 2,000,000 18,764,635
5
6
7
o
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
'17
38
39
40 2,517,76',1 3,190,235 161,131,682
FERC FORM NO. 2 (12-96)Page 225
This
(1)
(2)
S:
Avista Corporation An Original
A Resubmission
Date of Report(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
End of 2017lQ4
Prepayments (Acct I 65), Extraordinary Property Losses (Acct { 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)
0)
1 Prepaid lnsurance 1,655,21 1
2 Prepaid Rents
Prepaid Taxes 3,323,020
4 Prepaid lnterest
5 Miscellaneous Prepayments 1 4,355,081
6 TOTAL 19,333,312
FERC FORM NO.2 (12-96)Page 230a
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lxlAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ol 20171Q4
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 acmunts).
2. For regulatory assets being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Reprt separately any 'Defened Regulatory Commission Expenses' that are also reported on pages 350-351, Regulatory Commission Expenses.
5. Provide in a footnote, for each line item, the regulatory citation where authorization for the regulatory asset has been granted (e.9. Commission Order, state
commission order, cou( decision).
Line
No.
Description and Purpose of
o$er Regulatory Assets
(a)
Balance at
Beginning
Current
Quarter/Year
(b)
Debits
(c)
Written off During
Quarterffear
Account
Charged
(d)
Wriften off
During Period
Amount Recovered
(e)
Written off
During Period
Amount Deemed
Unrecoverable
(f)
Balance at End of
Cunent
Quarter/Year
(s)
1 WA Excess Nat Gas Line Extension Allolance 1,444,028 5,1 84,755 6,628,783
2 Reg Asset Post Ret Liab 240,1 13,906 228 28,329,830 211,784,076
3 Regulatory Asset FAS 109 Utility Plant 98,386,447 283 16,795,594 81,590,853
4 Regulatory Asset FAS 109 DSIT Non Plant 1,053,442 620,439 1,673,881
5 Regulatory Asset FAS 109 \ NP3 1,966,409 283 1,697,010 269,399
6 Regulatory Asset-Spokane River Relicense fi7,418 407 78,736 228,682
7 Regulatory Asset-Spokane Rive PM&E 282,638 557 73,311 209,327
8 Regulatory Asset-Lake CDA Fund 8,593,339 407 2'1 '1,066 8,382,213
I Regulatory Asset-Lake CDA IPA Fund 2,000,000 2,000,000
10 Regulatory Asset-Spokane River TDG ldaho 351,670 407 117,223 2U,447
11 Reg Assets-Decoupling Surcharge 1 1,834,500 13,'187,286 25,021,786
12 Regulatory Asset-Lake CDA DEF Costs 1,211,W 407 32,721 1,1 79,263
't3 DEF CS2 & Colstrip 2,671,668 407 1,357,2n 1,314,448
14 Commodity MTM ST Regulatory Asset 11,365,088 13,625,611 24,990,699
't5 Commodity MTM LT Regulatory Asset 16,91 9,204 2,047,482 18,966,686
16 Regulatory Asset FAS 143 Asset Retirement
Obligation 3,371,735 199,636 3,571,371
17 Reg Asset AN-CDA Lake Seftlement 32,748,N4 407 884,084 31,863,920
,IB Reg Asset WA-CDA Lake Seftlement 595,798 407 152,120 443,678
19 Regulatory Asset Workers Comp 1,212,812 407 228,912 983,900
20 Spokane River TDG 290,394 407 290,394
21 Setfled lnterest Rate Swap Asset 91 ,878,61 1 6,885,852 98,764,463
22 DSM Asset 15,669,651 8,950,570 24,620,221
23 Unsettled lnterest Rate Swaps Asset 69,629,s94 1,309,809 70,939,403
24 Defened ITC 8,481,289 254 4,357,398 4,1 23,891
25 Regulatory Asset MDM System 671,660 671,660
26 Regulatory Asset BPA Residential Exchange 1 37,1 39 137,139
27 Regulatory Assets FISERV 619,444 679,444
28 Oher Reg Assets u,782 254 u,782
29
30
31
32
33
34
35
36
37
38
39
40 Total 622,164,411 s3,199,683 54,690,401 0 621,273,693
FERC FORM NO.2/3Q (REV 12-07)Page 232
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
Miscellaneous Deferred Debits (Account 186)
1. Report below the details called for concerning miscellaneous deferred debits.
2. For any deferred debit being amortized, show period of amortization in column (a).
3. Minor items (less than $250,000) may be grouped by classes.
Line
No.
Description of Miscellaneous
Defened Debits
(a)
Balance at
Beginning
of Year
(b)
Debits
(c)
Credits
Account
Charged
(d)
Credits
Amount
(e)
Balance at
End of Year
(0
1
2 Colstrip Common Fac.1,1 10,999 1,1 1 0,999
3 Regulatory Asset-Mt Lease Pymt
4 Regulatory AsselMt Lease Pymt
5 Colstrip Common Fac.2,355,642 2,355,642
6 Prepaid plane Lease LT-3 yr amort 245,537 196,429 49,108
7 Misc DD- Airplane Lease-3yr amort 286,333 229,066 57,267
8 Plant Alloc of Clearing Jrl 3,520,1 55 693,81 I 4,213,974
I Misc Posting Suspense 284,474 284,474
10 Renewable Energy-Cert Fees
11 Nez Perce Settlement 139,901 557 5,212 1 34,689
12 Reg Asset lD-Lake CDA- 10 yr amort 1 16,156 s06 30,975 85,181
13 Credit Union Labor & Expense 107,357 33,448 73,909
14 Misc Work Orders <$50,000 ( 487,375)51 1,51 1 24,136
15 Subsidiary Billings 426,993 880,889 1,307,882
16 Misc Deferred Debits (WA)( 1,388,631)1,388,631
't7 Regulatory Assets Consv 1,042,391 1,042,391
18 Reg Asset-Decoupling deferred 33,152,204 29,965,078 3,187,126
19 Optional \Mnd Power 65,31 8 106,063 ( 40,745)
20 Gas Telemetry equip 4,172 4,721 8,893
21 Deferred Project Compass (lD) 4 yr 2,510,176 836,726 1,673,450
22 Saddle Mountain East Trans Line 59,194 58,012 1,182
23 AMI Suspense SA Base Chg out 299,407 459,31 3 758,720
24 MiscDeferred Debits (AN)448,694 448,694
25 Bluff Road Restoration 21 6,553 21 6,553
26 CIP v5 Elec Ac Ctl 1 29,51 0 129,510
27
28
29
30
31
32
33
34
35
36
37
38
39 Miscellaneous Work in Progress
40 Total 43,850,403 4,733,641 32,787,874 r 5,796,1 70
FERC FORM NO. 2 (12-96)Page 233
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t1112018
Year/Period of Report
End ol 20171Q4
Accumulated Deferred lncome Taxes (Account {90)
1. Report he information called for below concerning the respondent's accounting for deferred income taxes.
2. At Other (Specify), include defenals relating to other income and deductions.
3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginningof-year and end-of-year balances for deferred income
taxes that the respondent estimates could be included in the development ofjurisdictional recourse rates.
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)
1 Account 190
2 Electric 19,561,838 4,775,680 ( 27,991)
1 Gas 2,568,179 ( 273,324)( 14,435)
4 Oher (Define) (footnote details)125,224,690 ( 114,262)640,077
5 Total (Total of lines 2 thru 4)147,354,707 4,388,094 597,651
6 Oher (Specify) (footnote details)
7 TOTAL Account 190 (Total of lines 5 thru 6)147,354,707 4,388,094 597,651
o Classification of TOTAL
I Federal lncome Tax 147,354,707 4,388,094 597,651
10 State lncome Tax
11 Local lncome Tax
FERC FORM NO. 2 (REV 12-07)Page 2U
This Reoort ls:(1) fiRn originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Name of Respondent
Avista Corporation
Accumulated Deferred lncome Taxes (Account 190) (continued)
Line
No.
Changes During
Amounts Debited
to Account 410.2
(e)
Year
Changes During
Amounts Credited
to Account 41 1.2
(0
Year
Adjustments
Debib
Account No.
(s)
Adjustmenb
Debib
Amount
(h)
Adjustmenb
Credits
Account No.
(i)
Adjustments
Credits
Amount
(i)
Balance at
End of Year
(k)
1
2 27,507 4,569,174 1 0,1 61,086
2,120,542J706,526
4 39,1 69,324 440,920 89,684,527 '176,935,'152
89,684,527 189,216,780q39,197,231 440,920 5,275,700
6
7 39,197,231 440,920 5,275,700 89,684,527 189,216,780
8
I 39,197,231 440,920 5,275,700 89,684,527 1 89,2 1 6,780
10
11
-t
FERC FORM NO.2 (REV 12-07)Page 235
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
Capital Stock (Accounts 201 and204l
preferred stock.
2. Entries in column (b) should represent the number of shares auhorized by the articles of incorporation as amended to end of year.
3. Give details concerning shares of any class and series of stock authorized to be issued by a regulatory commission which have not yet been issued.
Line
No.
Class and Series of Stock and
Name of Stock Exchange
(a)(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
E
b
7 Account 204 - Prefened Stock lssued 10,000,000
B
9 Total Preferred '10,000,000
10
11
12
13
14
1E
to
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3'r
32
33
34
35
36
1a
38
39
40
FERC FORM NO.2 (12-96)Page 250
Number of Shares
Authorized by Chartu
Name of Respondent
Avista Corporation
This ReDort ls:(1) fien Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 2017lQ4
Capital Stock (Accounts 201 and 2041
4. The identification of each class of prefened stock should show the dividend rate and whether the dividends are cumulative or noncumulative.
5. State in a footnote if any capital stock that has been nominally issued is nominally oubtanding at end of year.
purpose of pledge.
Line
No.
Outstanding per 8al. Sheet
(total amt outstanding
without reduction for amts
held by respondent)
Shares
(e)
Outstanding per Bal.
Sheet
Amount
(0
Held by
Respondent
As Reaquired
Stock (Actt 217)
Shares
(s)
Held by
Respondent
As Reaquired
Stock (Acct 217)
Cost
(h)
Held by
Respondent
ln Sinking and
Oher Funds
Shares
(i)
Held by
Respondent
ln Sinking and
Other Funds
Amount
0
1
2 65,494,333 1,1 09,643,921 4,077,738.00
1
4 65,494,333 1,'109,643,921 106,0s3.00 4,077,738.00
r
6
7
8
I
10
11
12
13
14
15
'16
17
18
19
20
21
22
23
24
25
26
27
28
2S
30
JI
32
33
34
2E
36
J/
38
39
40
FERC FORM NO. 2 (12-96)Page 251
100,0$3,0t
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) - A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
Schedule Paqe: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 2 552.',|
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Year/Period of Reporl
End of 20171Q4
Other PaidJn Capital (Accounts 208-211)
1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital 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 112. 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) - Classify 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 ( 10,696,71 1)
2
3
4
5
b
I
10
11
't2
13
14
15
17
'18
'19
21
22
23
24
25
26
27
29
30
31
32
33
34
35
37
3B
39
40 Total ( 10,696,711)
FERC FORM NO.2 (12-96)Page 253
Date of Report(Mo, Da, Yr)
04t11t2018
I
16
20
28
36
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
IIJAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04111t2018
Year/Period of Report
Endof 2017lQ4
DrscouNT oN CAPITAL STOCK (ACCOUNT 213)
1. Repod he balance at end of year of discount on capital stock for eacfi class and series of capital stock. Use as many rors as necessary to report all data.
during the year and specify he account charged.
Line
No.
Class and Series of Stock
(a)
Balance at
End of Year
(b)
1
2
J
4
q
6
7
6
o
10
11
12
13
14
TOTAL
CAP|TAL STOCK EXPENSE (ACCOUNT 214)
1. Report he balance at end of year of capital stock expenses for eadt dass and series of capital stock. Use as many rows as necessary to report all data. Number the rows in
sequence starting from the last row number used for Discount on Capital Stock above.
of capital stock expense and specify the acmunt charged.
Line
No.
Class and Series of Stock
(a)
Balance at
End of Year
(b)
16
17
18
19
20
21
22
23
24
25
26
27
28
TOTAL ( 34,500,271)
FERC FORM NO.2 (12-96)Page 2il
( 34,500,271
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
20171Q4
FOOTNOTE DATA
Schedule Page:254 Line No.: 16 Column: b
Beginning Balance
lssuance Costs of Common Stock
Repurchase and Retirement of Common Stock
Tax Benefit-Options Excercised
Share withholding for taxes of equity awards
VESTED STOCK COMP
Stock Compensation Accrual
Ending Balance
5 82,208,771],5 68qJzg
ss (2,0s9)
s 3,55L,786
s
s (6,525,966)
s (34,500,271)
FERC FORM NO. 2 (12-96)Page 552.1
Name of Respondent
Avista Concoration
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
Securities lssued or Assumed and Securities Refunded or Retired Durinq 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. ldentiry 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 to 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 carried 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
transactions whereby the respondent 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, furnish details of these amounts with amounts relating to refunded securities clearly
earmarked.
(l)In December 2017, Avista Corp. issued and sold $90.0 million of 3.91 percent first mortgage bonds due in2047 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 a portion of the borrowings outstanding under Avista Corp.'s $400.0 million committed line
of credit. In connection with the execution of the bond purchase agreement, Avista Corp. cash-settled five interest rate swap
derivatives (notional aggregate amount of $60.0 million) and paid a total of $8.8 million.
The new issuance is based on the following state commission orders:
2. Order of the Washington Utilities and Transportation Commission in Docket No. UE-151822
entered October 29, 2O15;
3. Order of the ldaho Public Utilities Commission, Order No. 33401 , entered October 23,2015;
4. 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
In 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. Through December 31,2017,2.7 million shares were issued under these agreements resulting in total
net proceeds of $120.0 million ($54.7 million in2017 and $65.3 million in2016),leaving l.l million shares remaining to be issued.
FERC FORM NO. 2 (r2-96)255.',|
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
End ot 20171Q4
Long-Term Debt (Accounts 22'1,222,223, and 2241
1. ReportbyBalanceSheetAccounthedetailsconcerninglong{ermdebtincludedinAccount22l,Bonds,222,ReaquiredEonds,223,AdvancesfomAssociatedCompanies,and
224, Other Long-Term Debt.
2. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds.
3. For Advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate demand notes as such. lnclude in column (a) names of
associated companies from which advances were received.
4. For receivers' certificates, show in column (a) the name of the court and date of courl order under which such certificates were issued.
Line
No.
Class and Series of Obligation and
Name of Stoch Exchange
(a)
Nominal Date
of lssue
(b)
Date of
Maturity
(c)
Outstanding
(Total amount
outstanding wifrout
reduction for amts
held by respondent)
(d)
1 FMBS - SERIES A - 7.53% DUE O5IO5I2O23 05/06/1993 0st05t2023 5,500,000
2 FMBS - SERIES A - 7 .54O/O DUE 5I05I2O23 05/07/1993 05tost2023 1,000,000
FMBS . SERIES A - 7 .39O/O DUE 51 1 1 12018 05/1 1 /1 993 05t11t2018 7,000,000
4 FMBS - SERIES A - 7 .45O/" DUE 61 1 1 12018 06/09/1 993 06t11t2018 15,500,000
(FMBS - SERIES A . 7 .18O/" DUE 81 1 1 12023 o8,t't2t1993 08t11t2023 7,000,000
6
7 06/03/1 997 06t01t2037 5 1,547,000
8 FMBS-SERIESC-6.37%06/1 9/1 998 06t19t2028 25,000,000
I 5.45% SERIES 11t18t2004 12t0112019 90,000,000
10 FMBS - 6.25% SERIES 11t17t2005 12t0112035 150,000,000
11 FMBS - 5.70% SERIES 12t15t2006 07t0112037 150,000,000
12 FMBS - 5.95% SERIES 04t02t2008 061o1t2018 250,000,000
13 FMBS.5.125% SERIES 09t2212009 04101t2022 250,000,000
14 12t't5t2010 10t01t2032 66,700,000
15 12t15t2010 o3t01t20u 17,000,000
16 FMBS 3.89% SERIES 12t20t2010 12t20t2020 52,000,000
17 FMBS 5.55% SERIES 12t20t2010 12t20t2040 35,000,000
1B 4.45% SERTES DUE 12-14-2041 12t14t2011 12t',t4t204',1 85,000,000
19 4.23% SERTES OUE 11-25-2047 11t3012012 11t29t2047 80,000,000
20 FMBS - 4.1.I% SERIES 't2t18t2014 12t01t2044 60,000,000
21 FMBS.4,37Ol" SERIES 12t1612015 12t01t2045 1 00,000,000
22 FMBS - 3,54% SERIES 12t15t2016 12101t2051 1 75,000,000
23 't211412017 12t0',U2047 90,000,000
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 TOTAL 1,763,247,000
FERC FORM NO.2 (12-96)Page 256
ThiS
ADVANCE ASSOCIATED-AVISTA CAPITAL ll (ToPRS)
COLSTRIP 2010A PCRBs DUE 2032
COLSTRIP 20108 PCRBs DUE 2034
FMBS - 3.91% SERIES
Name Respondent
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 04111t2018
Year/Period of Report
Endot 2O17lQ4
Long-Term Debt (Accounts 22'1,222,223, and 2241
5. ln a supplemental statement, give explanatory dehils for Acmunb 223 and 224 ol nel changes during he year. With respect to long{erm advances, shorv for each company: (a)
principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates.
6. lf he respondent has pledged any of ib long{erm debt securities, give particulars (details) in a footnote, induding name
of the pledgee and purpose of he pledge.
7. lf he respondent has any long-term securities hat have been nominally issued and are nominally outstanding at end of year, describe such se@rities in a footnote.
difference between the total of column (0 and the total Accotrnt 427, lnterest on Long-Term Debt and Account 430, lnterest on Debt to Associated Companies.
9. Give details conceming any long{erm debt auhorized by a regulatory commission but not yet issued.
Line
No.
lnterest for
Year
Rate
(in 7d
(e)
lnterest for
Year
Amount
(0
Reaquired Bonds
(Acd222\
(s)
Held by
Respondent
Sinking and
Other Funds
(h)
Redemption Price
per $100 at
End of Year
(i)
1 7.530 414,150
2 7.540 75,400
2 7.390 51 7,300
4 7.450 1,154,750
5 7.180 502,600
6
7 2.232 830,592
8 6.370 1,592,500
o 5.450 4,905,000
10 6.250 9,375,000
11 5.700 8,550,000
12 5.950 14,875,000
13 5.125 12,812,500
14 1.450 535,245 66,700,000
15 1.450 136,419 17,000,000
16 3.890 2,022,800
17 5.550 1,942,500
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 6,195,000
4a 3.910 1 66,1 75
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 80,605,431 83,700,000
FERC FORM NO.2 (12-96)Page 257
Held by
Respondent
Name of Respondent
Avista Corporation
This Report is:
(1) X An Originale\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1112018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
256 Line No.:7 Column: a
Upon uance Av sta Cap ta1 rr l_ssued 1.5 o Common Trust Securities to the
Company. In December 2OOO, the Company purchased $10.0 million of these Preferred Trust
Securities.256 Line No.: 14 Column: a
The Company reacquired this debt in 2010. These bonds have not been retired or canceled; the Company plans, based
onl uid needs and market conditio to remarket these bonds at a future date.
The Company reacquired this debt in 2010. These bonds have not been retired or canceled; the Company plans, based
onl needs and market conditio 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 in Docket No. UE-151822
entered October 29, 2015;
2. Order of the ldaho Public Utilities Commission, 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 (12-96)Page 552.1
256 Line No; 15 Column: a
256 Line No.: 23 Column: a
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
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 each class and series of long{erm debt.
2. Show premium amounts by enclosing the figures in parentheses.
3. ln column (b) show the principal amount of bonds or other long-term debt originally issued.
4. ln column (c) show the expense, premium or discount with respect to the amount of bonds or other long-term debt originally issued.
Line
No.
Designation of
Long-Term Debt
(a)
Principal Amount
of Debt lssued
(b)
Total Expense
Premium or
Discount
(c)
Amortization
Period
Date From
(d)
Amortization
Period
Date To
(e)
I FMBS - SERIES A.7.53% DUE O5IO5I2O23 5,500,000 42,712 05/06/1993 05t05t2023
2 FMBS - SERIES A -7 5AO/ODUE 5N5NO23 1,000,000 7,766 05/07/1993 05t05t2023
I FMBS - SERIES A - 7.39% DUE 511112018 7,000,000 54,364 05/1 1/1993 05111t2018
4 FMBS - SERIES A - 7 .450/o DUE 6t 1 1 12018 1 5,500,000 170,597 06/09/1993 06t11t2018
5 FMBS. SERIES A - 7.18% DUE 811112023 7,000,000 54,364 08/1 2/1993 08t11t2023
6 ADVANCE ASSOCIATED-AVISTA CAPITAL ll (ToPRS)5 1,547,000 1,296,086 06/03/1 197 06t01t2037
7 FMBS . 6.37% SERIES C 25,000,000 158,304 06/19/1998 06t1912028
d FMBS.5.45% SERIES 90,000,000 1,432,081 11t18t2004 12t01t2019
I FMBS - 6.25% SERIES 150,000,000 2,180,435 11117 t2005 12101t2035
10 FMBS - 5.70% SERIES 150,000,000 4,924,304 12115t2006 07101t2037
11 FMBS - 5.95% SERIES 250,000,000 3,081,419 04t02t2008 06/01/2018
12 FMBS.5.125% SERIES 250,000,000 2,859,788 09t22t200s 04t01t2022
13 FMBS - 3,89% SERIES 52,000,000 385,129 12t2012010 12t20t2020
14 FMBS - 5.55% SERIES 35,000,000 258,834 12t2012010 12t20t2040
15 Short-Term Credit Facility s,070,271 12t14t2011 04t1812019
16 4.45% SERTES DUE 12-14-2041 85,000,000 692,833 12t14t2011 12t14t2041
17 4.23% SERTES DUE 11-29-2047 80,000,000 730,833 11130t2012 11t2912047
'18 4.1 1% Seires Due 12-1-2044 60,000,000 428,205 1211812014 12101t2044
19 4.37% Series Due 12-1-2045 100,000,000 590,761 12116t2015 12t01t2045
20 3.54% Series Due 12-1-2051 175,000,000 1,001,382 12t15t2016 12t01t2051
21 90,000,000 539,741 12t14t2017 12t01t2047
22 Rathrum 2005 71,646 09/30/2005 12t01t2035
,a Debt Strategies 858 08/01/2005 08/01/2035
24 WKSI Shelf Registration Statement 16,064 03/01/20'13 03/01/2018
25
26
27
28
29
30
31
32
33
34
2E
36
37
38
39
40
FERC FORM NO.2 (12-96)Page 258
3.91% Series Due 12-1-2047
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
04t11t2018
Year/Period of Report
End of 2017lQ4
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181,225, 2261
date of the Commission's authorization of keatment other than as specified by the Uniform System of Accounts.
6. ldentify separately undisposed amounts applicable to issues which were redeemed in prior years.
DeblCredit.
Line
No.
Balance at
Beginning
of Year
(0
Debits During
Year
(s)
Credits During
Year
(h)
Balance at
End of Year
tU
1 9,135 1,424 7,711
2 1,661 259 1,402
3,079 2,175 904
4 10,236 6,824 3,412
5 12,081 1,812 10,269
6 287,303 14,015 273,288
7 60,682 5,277 55,405
oo 257,881 85,960 171,921
I 1,378,809 72,569 1,306,240
10 3,314,567 161,032 3,153,535
11 429,379 303,090 126,289
12 1,21 3,655 227,s61 986,094
13 154,477 38,619 1 15,858
14 207,074 8,628 198,446
'15 1,882,1 03 434,311 868,642 1,M7,772
'16 577,598 23,104 554,494
17 645,725 20,886 624,843
't8 399,901 14,282 385,61 I
19 571,345 19,702 551,643
20 1,001,382 41,082 29,474 1,012,990
21 539,741 539,741
22 45,003 2,369 42,634
23 534 29 505
24 3,305 2,644 661
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 Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
20't7tQ4
FOOTNOTE DATA
Schedule Page:258 Line No.:21 Column: a
Expenses may change as more invoices related to this issuance become known
FERC FORM NO. 2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) f-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
Endot 20'l7lQ4
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
1 Misc Debt Repurchases I 05/1 0/1 993 ( 4,695,3951 ( 513,818)( 334,849)
2 ADVANCE ASSOCIATED-AVISTA CAPITAL II
(ToPRS)12t't8t2000 1 0,000,000 1,769,1 25 996,404 947,600
3 Misc 2002 Repurchase 't2t31t2002 10,000,000 2,228,153 568,668 5'16,576
4 Misc 2003 Repurchase 12t31t2003 25,330,000 315,274 92,861 85,861
5 Misc 2004 Repurchase 12t31t2004 36,590,000 ( 7,244,855"( 487,046)( 188,754)
6 Misc 2005 Repurchase 12t3112005 26,000,000 ( 1,700,3711 ( 602,027)( 567,022)
Misc 2006 Repurchase 12131t2006 6,785,000 483,58i ( 16,768)( 803)
I Misc 2008 Repurctase Cosb 12131t2008 43,132 19,009 16,313
I AVA Capital Trust lll (2022)04t01t2009 60,000,000 ( 2,87s,817"( 1,222,758)( 993,523)
10 C0LSTRIP 20'l0A PCRBs DUE 2032 12t14t2010 66,700,000 ( 3,709,714)( 2,464,740)( 2,309,072)
11 COLSTRIP 20108 PCRBs DUE 2034 12t14t2010 1 7,000,000 ( 1,916,297)( 1,419,47s)( 1,336,982)
12 FMBS - 7.25% SERTES (2040)12t20t2010 30,000,000 ( 5,263,8221 ( 4,211,057)( 4,035,597)
13 FMBS - 6.'t25% SERTES (2020)12t2012010 45,000,000 ( 6,273,6641 ( 2,509,466)( 1,882,099)
14 KETTLE FALLS P C REV BONDS DUE 14 (20471 06128t2012 4,1 00,000 ( 105,020)( 92,768)( 89,767)
'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 (12-96)Page 260
Name of Respondent
Avista Corporation
This ReDort ls:(1) SRn originat
(2) !A Resubmission
Date of Reoort(Mo, Da, Yi)
04111t2018
Year/Period of Report
End of 2017lQ4
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 utilig 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 1 16)1 1 5,916,1 34
2 Reconciling ltems for the Year
3
4 Taxable lncome Not Reported on Books
5 6,893,813
6
7
I TOTAL 6,893,813
I Deductions Recorded on Books Not Deducted for Return
10 ( 11,694,698)
11 lncome Tax Expense 76,873,300
12
13 TOTAL 65,178,602
14 lncome Recorded on Books Not lncluded in Return
'15 '17,341,039
16
TOTAL 17,341 ,039
19 Deductions on Return Not Charged Against Book lncome
20 ('t77,9'10,892)
21
22
23 Equity in Sub Earnings ( 2,517,761)
24 Corporate Overhead Unallocated Subs 2,028,306
25
26 TOTAL ( 't78,400,347)
27 Federal Tax Net lncome 26,929,24'l
28 Show Computation of Tax:
29 State Tax 343,796
30 Federal Tax Net lncome, less state tax 26,585,445
3t Federal Tax @ 35%9,304,906
32 Prior year true ups and misc adjuslments 914,587
33 Cabinet Gorge tax credits ( 45,288)u
35 Total Federal Tax Expense 10,174,205
FERC FORM NO. 2 (12-96)Page 261
17
18
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) nA Resubmission
Dale of Report(Mo, Da, Yr)
04t1112018
Year/Period of Report
End of 20171Q4
Taxes Accrued, Prepaid and Gharged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
sales taxes which have been charged to the accounts to which the 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 amounts.
2. lnclude on this page, taxes paid during the year and charged direct to fnal accounts, (not charged to prepaid or accred taxes). Enter the amounts in bottt mlumns (d) and (e). The
balancing of this
page is not affected by he inclusion of these taxes.
3. lnclude in column (d) taxes charged during tre year, taxes charged to operations and other accounts through (a) accrals credited to taxes accrued, (b) amounts credited to he
portion of prepaid taxes drarged to cunent year, and (c) taxes paid and charged direct to operations or accounts other than acqued and prepaid tax accounts.
4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained.
Line
No.
Kind of Tax
(See lnstruction 5)
(a)
Balance at
Beg. of Year
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
I FEDERAL:
2 lncome Tax 201 3 806,204
3 lncome Tax 20 14 840,072
4 lncome Tax 20'16 ( 4s,328,474)
5 lncome Tax (Cunent)
6 Prior Retained Earnings ( 483,257)
7 Current Retained Earninqs ( 3,371,282\
I Total Federal ( 47,536,737)
q
10 STATE OF WASHINGTON
11 Property Tax (2015)( 5,841)
12 Property Tax (2016)1 6,21 9,999
13 Property Tax (2017)
14 Excise Tax (2016)3,798,546
15 Excise Tax (20'17)
16 Natural Gas Use Tax 654
17 Municipal Occupation Tax 2,922,652
18 Community Solar ( 25,513)
19 Sales & Use Tax (2016)157,008
20 Sales & Use Tax (201 7)
21 Total Washington 23,067,505
22
23 STATE OF IDAHO:
24 lncome Tax (2016)I 1,938
25 lncome Tax (2017)
26 Property Tax (2015)(13)
27 Property Tax (2016)3,572,375
28 Property Tax (20'17)
,o Sales & Use Tax (2016)23,544
30 Sales & Use Tax (2017)
31 KWH Tax (2016)30,880
32 KWH Tax (2017)
33 Franctise Tax (2015)1
34 Franchise Tax (20'16)1,489,069
35 Franchise Tax (2017)
36 Total ldaho 5,127,794
aa
38 STATE OF MONTANA
39 lncome Tax (20'15)
FERC FORM NO.2 (REV 12-07)Page 262a
( 304,9501
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
lxlAn
ls:
Original
I-lA Resubmission
Date of Report(Mo. Da, Yr)
04t11t2018
Year/Period of Report
Endot 20'l7lQ4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by parentheses.
authority.
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
1 0. ltems under $250,000 may be grouped.
1 1. Report in column (q) the applicable effective state income tax rate.
Line
No.
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustments
(0
Balance at
End of Year
Taxes Accrued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lnduded in Accl 165)
(h)
1
2 ( 806,204)
I 840,072
4 2,068,973 ( 46,053,256)( 3,365,669)( 571,914)
A 3,745,880 2,625,000 317,334 1,438,214
6 3,371,282
7 483,257
8 5,814,853 ( 43,428,256)1,706,372
I
10
11 6,1 96 355
12 ( 7s9,669)I 5,460,330
13 16,441,185 ( 1,846)16,443,031
14 2,643 2,908,238 892,95'l
15 28,031,229 25,226,008 ( 1)2,805,220
16 4,007 4,161 500
17 25,200,143 25,1 1 1,836 3,010,959
18 ( 565,612)( 573,821)17,304
19 157,006 (2)
20 1,222,829 1,069,778 2 153,053
21 69,582,95'l 69,362,045 17,303 23,305,714
22
23
24 ( 108,778)53,160 1s0,000
25 880,920 850,000 ( 30,920)
26 't3
27 399 3,572,775 1
2B 7,760,619 3,886,402 3,874,217
29 1 23,544 1
30 253,484 242,834 10,650
3'l 2,110 32,990
32 385,767 350,795 1 34,973
33 ( 1)
34 1,489,067 (2\
35 4,865,724 3,763,347 2 1j02,375
36 14,040,259 14,264,914 1 19,081 5,022,220
37
38
39 ( 118,670)( 862,858)439,238
FERC FORM NO.2 (REV 12-07)Page 263a
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lx.lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1'U2018
Year/Period of Report
Endot 2O17lQ4
Taxes Accrued, Prepaid and Charged During Year, Distribution o, Taxes Charged (Show utility dept where applicable and acct charged)
sales taxes which have been charged to he accounts to which the taxed material was charged. lf the actual or estimated amounts of such taxes are knolvn, show he amounts in a
foohote and designate whether estimated or aciual amounts.
2. lndude on this page, taxes paid during tre year and charged direcl to final accounts, (not charged to prepaid or accred taxes). Enter the amounb in boh columns (d) and (e). The
balancing ofthis
page is not affecled by he inclusion of hese taxes.
3. lndude in column (d) taxes charged during tre year, taxes drarged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounts credited to he
portion of prepaid taxes charged to olnent year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts.
4. List the aggregate of each kind of tax in sudr manner that the total tax for each State and suMivision can readily be ascertained.
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
Oher Utility Dept.
(Account 408.1,
409.1)
(k)
Other lncome and
Deductions
(Acmunt 408.2,
409.2)
(t)
1
2
2
4 171,271 1,065,1 17
q 11,527,025 9,947,372 ( 13,246,491)
6
7
8 1 1,698,300 9,947,372 ( 12,181,374),
9
10
11 5,162 509 524
12 ( 680,586)( 102,902)23,464
13 13,431,429 2,973,756 36,000
14 3,019 ( 377)
15 21,449,491 6,481,557 100,181
16 4,007
17 1 8,964,825 6,106,478
18
19
20
21 53,177,347 1 5,459,021 160,169
22
23
24 ( 87,022)( 21,756)
25 748,781 132J38
to 13 ( 1)
27 5,378
28 6,132,304 1,640,896 10,338
29
30
31 2,770
32 38s,767
33
34
35 3,633,461 1,213,396
36 10,821,452 2,964,673 10,338
37
38
39 ( 118,670)
FERC FORM NO.2 (REV 12-07)Page 262b
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn Originat(2) [-lA Resubmission
Date of Report(Mo, Da, Y0
04t1112018
Year/Period of Report
End of 20171Q4
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, identifying the year in column (a).
6. Enter all adlustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by parentheses.
authority.
number of the appropriate balance sheet plant account or subaccount.
9. For any tax apportioned to more than one utility deparlment or accrunt, state in a foohote the basis (necessity) of apportioning suctr tax.
10. ltems under $250,000 may be grouped.
1 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/Local
lncome Tax
Rate
(q)
1
2
J
4 832,585
^( 4,482,030)
6
7
o ( 3,649,445)
I
10
11 1
12 355
13
14 1
15
16
17 1 28,840
18 ( 565,612)
19
20 1,222,829
21 786,414
22
23
24
25 1
26 1
27 ( 4,979)
28 ( 22,9191
29 1
30 253,484
31 ( 660)
32
33
34
35 r8,867
36 243,796
37
38
39
FERC FORM NO.2 (REV 12-07)Page 263b
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
04t11t2018
Year/Period of Report
End ol 2O17lQ4
Taxes Accrued, Prepaid and Gharged 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. of Year
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
1 lnmme Tax (2016)118,720
2 lnmme Tax (2017)
2 Property Tax (20'16)4,864,493
4 Property Tax (2017)
Colstrip Generation Tax
6 KWH Tax (2016)274,416
7 KWH Tax (2017)
8 Consumer Council Fee 11
o Public Commission Fee 43
10 Total Montana 4,952,733
11
12 STATE OF OREGON
'13 lncome Tax (2015)1
14 lncome Tax (2016)
15 lncome Tax (20'17)
16 Property Tax (2016)( 2,854,826)
17 Property Tax (2017)
18 BETC Credit (2010)( 17,483)
19 BETC Credit (201 'l)( 29,962)
20 BETC Credit (2012)( 57,789)
21 Glendale Regulatory Cr. 2009 ( 34,911)
22 Franchise Tax (2016)929,039
23 Frandise Tax (20'17)
24 Total Oregon ( 2,065,931)
25
26 STATE OF CALIFORNIA
27 lncome Tax (2015)
28 lncome Tax (2016)( 1,600)
29 lncome Tax (2017)
30 Total California ( 1,600)
31
'\t MISCELLANEOUS STATES:
aa lncome Tax (2014)28,632
34 lncome Tax (2017)
35 Total Misc States 28,632
36
37 MISCELLANEOUS OTHER
38 CTR Credit for 20'17
39 Misc/Distribution
FERC FORM NO.2 (REV 12-07)Page 262a.1
Name of Respondent
Avista Corporation
This ReDort ls:(1) finn originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2o'.t8
Year/Period of Report
End ot 20171Q4
Taxes Accrued, Prepaid and Chargod During Year, Distributaon of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustments
(0
Balance at
End of Year
Taxes Accrued
(Account 236)
(s)
Balance at
End of Ymr
Prepaid Taxes
(lncluded in Acct 165)
(h)
1 50 50 118,720
2 ( 557,908)( 557,908)
3 ( 18,407)4,846,086
4 10,435,'rs4 5,224,474 5,21 0,680
5 3,107 3,1 07
6 274,416
7 1,126,703 869,303 257,400
95 53 53
I 193 208 28
10 10,870,3'17 10,354,839 5,468,211
11
12
13 100,000 100,000 ( 1)
14 100,000 100,000
15 100,000 100,000
16 2,855,005 179
17 3,322,842 6,645,862 3,323,020
18 17,483
19 29,962
20 57,789
21 34,911
22 929,039
23 3,877,693 2,869,005 1,008,688
24 10,495,685 10,744,085 ( 1)1,008,688 3,323,020
25
26
27 1,844 1,844
28 1,600
29 1,600 '1,600
30 5,044 3,444
31
32
33 ( 28,632)
34 1 1
35 ( 28,632\1 1
36
37
38 ( 1,3e9)( 1,399)
39 22,s64 35,896 13,332
FERC FORM NO.2 (REV 12-07)Page 263a.1
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t1'U2018
Year/Period of Report
End of 2017lQ4
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.
Eleckic
(Account 408.1,
409.1)
(i)
Gas
(Acmunt 408.1,
409.1 )
0)
Other Utility Dept.
(Account 408.1,
409.1 )
(k)
Other lncome and
Deductlons
(Account 408.2,
409.2)
(t)
1 50
2 ( 557,908)
1 ( 18,407)
4 1 0,435,1 54
5 3,107
6
7 1,126,703
8 95
q 193
10 1 0,870,317
11
12
13 100,000
14 100,000
15 100,000
16 1,262,754 1,592,251
17 1,483,708 1,839,1 34
18 17,483
19 29,962
20 57,789
21 34,91 1
22
ZJ 3,858,975 18,719
24 2,746,462 7,730,505 18,719
25
26
ll 1,844
28 1,600
2S 1,600
30 5,044
31
32
33 ( 28,6321
34 243
AE ( 28,389)
36
37
38 ( 1,399)
39 1,092
FERC FORM NO. 2 (REV 12-07)Page 262b.1
Avista Corporation (1)
(2)
Original
Resubmission
Date of Reporl
(Mo, Da, Y0
04t11t2o',t8
Year/Period of Report
End of 201 7/Q4
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.
Exkaordinary ltems
(Account 409.3)
(m)
Other Utility Opn.
lncome
(Account 408.'1,
409.1 )
(n)
Adjustment to Ret.
Earnings
(Acount 439)
(o)
Other
(p)
State/Local
lncome Tax
Rate
(q)
1
2
3
4
5
6
7
8
o
10
11
12
13
14
15
16
17
18
19
20
21
22
23 (1)
24 (1)
25
26
27
28
29
30
31
32
33
34 ( 243)
35 ( 243)
36
37
ao
39 21,472
FERC FORM NO.2 (REV 12-07)Page 263b.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lx_lAn Original
[-lA Resubmission
Date of Report(Mo, Da, YQ
04t1',12018
Year/Period of Report
End ot 20171Q4
Taxes Accrued, Prepaid and Chargod During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Kind of Tax
(See lnstruc'tion 5)
(a)
Balance at
Beg. of Year
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
1 Timber Excise Tax
2 WA Renewable Energy ( 5,638)
3 Thermal Fuel Tax 1,949
4 ( 3,689)
6
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
TOTAL ( 16,431,293)
FERC FORM NO.2 (REV 12-07)Page 262a.2
Total County
Name of Respondent
Avista Corporation
s:
(1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, Y0
04t11t2018
Year/Period of Report
End of 20'17lQ4
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)
Adjustments
(0
Balance at
End of Year
Taxes Accrued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lncluded in Accl 165)
(h)
1 5,246 5,246
2 ( 918,69e)( 918,410)5,927
1 33,079 32,196 2,832
4 ( 859,209)( 846,471)19,259 2,832
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
aa
33
34
1r
36
37
38
39
TOTAL 1 09,921,268 60,454,600 155,643 36,514,038 3,323,020
FERC FORM NO.2 (REV 12-07)Page 263a.2
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lXlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1112018
Year/Period of Report
End ot 20171Q4
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 )
(i)
Other Utility Dept.
(Account 408.1,
409.1)
(k)
Other lncome and
Deductions
(Account 408.2,
40e 2)
0
1 s,246
2
4 4,939
6
7
o
I
10
11
12
13
14
15
16
17
18
19
20
21
22
a1
24
25
26
27
28
29
30
31
32
1a
34
35
36
37
38
39
TOTAL 89,31 3,878 36,1 06,61 5 ( 12,015,598)
FERC FORM NO.2 (REV 12-07)Page 262b.2
Name Respondent Date(Mo,Avista Corporation (1)
(2)
Original
Resubmission 04t11t2018
Year/Period of Report
End ot 20171Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Gharged (Show utlllty dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utility department vvhere applicable and account charged.)
Line
No.
Extraordinary ltems
(Account 409.3)
(m)
Oher Utility Opn.
lncome
(Accomt 408.1,
409.1)
(n)
Adjustment to Ret.
Earnings
(Acomnt 439)
(o)
Oher
(p)
State/Local
lncqne Tax
Rate
G)
I
2 ( 918,699)
3 33,079
4 ( 864,148)
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
TOTAL ( 3,483,627)
FERC FORM NO. 2 (REV 12-07)Page 263b.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
20171Q4
FOOTNOTE DATA
Schedule Paqe:262.2 Line No.:4 Column: a
This should read as: TotalOther
FERC FORM NO. 2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
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 of Year
(b)
,|Margin Call Deposit (242050)2,270,000
2 Forest Use Permits (242060)2,893,742
3 FERC Admin Fee (242300)499,998
4 FERC Electric Admin Fee (242310)141,664
5 MT Lease Payments (242375)4,798,800
6 MT lnvasive Species Fee (242385)388,331
7 Paid Time ott (242700)20,0't0,012
I Low lncome Energy Assist (242770)1,463,975
I Avista Grants Eng Sustain WSU (242780)26,318
10 Workers Comp Liability (242830)983,900
11 Accts Payable lnventory Accruals (242900)228,400
12 Accts Payable Expense Accrual (2429'10)5,057,641
Current Portion-Benefi t Liab (242999)11,s43,946
14 Clearing Accounts 602,693
'15 Prepayments 2U,328
16 Customer Accounts 7,762,907
17 Misc Reclasses 480,309
'18
't9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
u
35
36
37
38
39
40
41
42
43
44
45 Total 59,386,964
FERC FORM NO.2 (12-96)
13
Page 268
Name of Respondent
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
04t11120't8
Year/Period of Report
End o'f 20171Q4
Other Deferred Credits (Account 253)
Line
No.Description of Other
Defened Credits
(a)
Balance at
Beginning
of Year
0)
Debit
Contra
Account
(c)
Debit
Amount
(d)
Credits
(e)
Balance at
End of Year
(0
I Defer Gas Exchange (253028)1,125,000 1,1 25,000
2 Rathdrum Refund (253120)1 04,288 550 33,825 70,463
3 NE Tank Spill (253130)3,230 552 3,230
4 Bills Pole Rentals (253140)162,942 965 I 63,907
5 WA REC 176,31 1 'r76,31'l
6 Deferred Treasury Expense 2,127,252 2,127,252
7 DOC EECE Grant 25,828 277 26,105
B Conservation Program Projects 112,679 112,679
I Defer Comp Active Execs (253910)7,683,200 780,065 8,463,265
10 Executive lncent Plan (253920)140,000 1 40,000
't1 Unbilled Revenue (253990)2,098,s69 908 84,203 2,014,366
12 WA Energy Recovery Mechanism 3,342,983 186 1,658,182 1,684,801
13 Misc Deferred Credits 199,983 407 198,820 1,163
14 Decoupling Deferred Credits 1 1,666,738 1 1,666,738
15 Kettle Falls Diesel Leak 376,095 186 1 16,002 260,093
16
't7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
3B
39
40
41
42
43
44
45 Total 15,262,118 2,094,262 14,861,287 28,0?2,143
FERC FORM NO.2 (12-96)Page 269
'1. Report below the details called for concerning other deferred 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.
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
[]Rn originat
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t11t2018
Year/Period of Report
End ol 20171Q4
Accumulated Deferred lncome Taxes-Other Property (Account 282)
1. Report the information called for belovu concerning the respondenfs accounting for deferred income taxes relating to property not subjecl to accelerated amortization.
2. At Oher (Specify), indude defenals relating to other income and deductions.
Line
No.Account Subdivisions
(a)
Balance at
Beginning
of Year
(b)
Amounts
Debited to
Account 410.1
(c)
Amounts
Credited to
Account 41 1.1
(d)
1 Account 282
2 Electric s02,903,879 42,058,648
Gas 153,909,427 1 7,383,562
4 Other (Define) (footnote details)74,348,81 5 '12,080,906
5 Total (Enter Total of lines 2 thru 4)731,162,121 71,s23,116
6 Oher (Specify) (footnote details)
7 TOTAL Account 282 (Enter Total of lines 5 thr 731,162,121 71,523,116
I Classification of TOTAL
9 Federal lncome Tax 714,738,762 71,523,116
10 State lncome Tax 1 6,423,359
11 Local lncome Tax
FERC FORM NO.2 (REV 12-07)Page 274
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Accumulated Deferred lncome Taxes-Other Property (Account 282) (continued)
3. Provide in a footnote a summary of the type and amount of defened income taxes reported in the beginning-of-year and end-of-year balances for defened income taxes that lhe
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
(f)
Adjustments
Debib
Acct. No.
(s)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
(i)
Balance at
End of Year
(k)
1
2 225,028,224 31 9,934,303
95,821,885 75,471,104
4 86,429,721
5 320,850,109 481,835,128
6
7 320,850,109 48'1,835,'128
8
I 320,850,109 465,41 1,769
10 1 6,423,359
11
FERC FORM NO.2 (REV 12-07)Page 275
I
I
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Year/Period of Report
End of 2017lQ4
Accumulated Deferred lncome Taxes-Other (Account 283)
1. Report tre information called for belorn concerning the respondenfs accounting for deferred income taxes relating to amounts recorded in Account 283.
2. At Oher (Specify), indude 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 411.'l
(d)
1 Account 283
2 Electric 1 7,390,392 ( 9,881,479)523,661
J Gas ( 3,288,789)( 5,798,489)
4 Other (Define) (footnote details)226,926,901 587,954
q Total (Total of lines 2 hru 4)241,028,504 ( 15,092,014)523,661
b Other (Speci!) (footnote details)5,429,247
7 TOTAL Account 283 (Total of lines 5 hru 246,457,751 ( 15,092,014)523,661
o Classifcation of TOTAL
I Federal lncome Tax 246,457,751 ( 15,092,014)523,661
'10 State lncome Tax
11 Local lncome Tax
FERC FORM NO.2/3Q (REV 12-07)Page 276
Date of Report
(Mo, Da, Y0
04t't'U2018
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Y0
04t11t2018
Year/Period of Report
End of 2017lQ4
Accumulated Deferred lncome Taxes-Other (Account 283) (continued)
3. Provide in a footnote a summary of the type and amount of defened income taxes reported in the beginning-of-year and end-of-year balances for defened 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
(f)
Adjustmenb
Debits
Acct. No.
(s)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
0)
Balance at
End of Year
(k)
1
575,021 6,410,231
3 3,590,458 ( 5,496,820)
4 ( 31,155,687)35,129,257 161,229,911
(( 31,155,687)3,590,458 35,704,278 162,143,322
6 5,429,247
7 ( 31,1s5,687)3,590,458 35,704,278 167,572,569
8
9 ( 31,155,687)3,590,458 35,704,278 1 67,572,569
10
11
FERC FORM NO. 2/3Q (REV 12-07)Page 277
I
2
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort
lllAn
ls:
Original
!A Resubmission
Date of ReDort(Mo, Da, Yi)
04t't1t2018
YeauHenoo or Kepon
Endot 2!)fl9!
Other Regulatory Liabilities (Account 254)
1. Report below the details called for concerning other regulatory liabilities which are created through the ratemaking actions of regulatory 4encies (and not
includable in other amounts).
2. For regulatory liabilities being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 254 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Provide in a footnote, for each line item, the regulatory citation where the respondent was directed to refund the regulatory liability (e.9. Commission Order, state
commission order, court decision).
Line
No.Description and Purpose of
Other Regulatory Liabilities
(a)
Balance at
Beginning of
Cunent
Ouarter/Year
(b)
Written off during
Quarter/Period
Account
Credited
(c)
Written off
During Period
Amount
Refunded
(d)
Written off
During Period
Amount Deemed
Non-Refundable
(e)
Credits
(0
Balance at
End of Current
Quarter/Year
(s)
1 ldaho lnvestment Tax Credit 9,1 94,401 190 1,726,290 7,468,1 1 3
2 Oregon BETC Credit 1,011,42 99,998 1 ,111,427
3 Settled lnt Rate Swaps 12,441,U(1,293,409 13,735,249
4 Unsettled lnt Rate Swaps 8,749,55{182 3,846,989 4,902,566
5 FAS 109 lnvest Credit 34,1 61 190 22,322 1 1 ,839
6 Nez Perce 594,33'557 22,008 572,324
7 ldaho Earnings Test 3,696,87i 407 2,834,093 862,780
8 Decouplinq Rebate 2,4U,91(456 2,404,916
I BPA Res Exchange 667,62r 407 667,625
10 Other Requlatory Liabilities '1,814,54t 190 407,400 1,407,145
11 WA ERM 17 ,947,67(4,101,14s 22,048,8'15
't2 ID PCA 2,237,39i 3,901,950 6,139,347
13 Deferred Federal ITC 16,945,521 182 8,697,73t 8,247,7U
14 Plant Excess Deferred 416,959,206 416,959,206
15 Non Plant Excess Deferred 17,634,985 17,634,985
16 Reg Liability MDM System 41,907 41,907
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
36
37
38
39
40
41
42
43
44
45 Total n,7$,268 20,629,:181 0 /U4,032,600 $t,113,187
FERC FORM NO. 2/3Q (REV 12-07)Page 278
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort ls:
lI_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
End ol 20'l7lQ4
Gas Operating Revenues
1. Report belor natural gas operating revenues for eadr prescribed account total. The amounts must be consistent with the detailed data on succeeding pages.
2. Revenues in columns (b) and (c) include transition cosb from upstream pipelines.
3. Oher Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) through (e). lnclude in
columns (f) and (g) revenues for Accounts 480-495.
Line
No.
Tite of Account
(a)
Revenues for
Transition
Costs and
Take-or-Pay
Amount for
Cunent Year
(b)
Revenues for
Transition
Costs and
Takeor-Pay
Amount for
Previous Year
(c)
Revenues for
GRI and ACA
Amount for
Cunent Year
(d)
Revenues for
GRI and ACA
Amount for
Previous Year
(e)
1 480 Residential Sales
2 481 Commercial and lndustrial Sales
J 482 Other Sales to Public Authorities
4 483 Sales for Resale
5 484 lnterdepartmental Sales
6 485 lntracompany Transfers
7 487 Forfeited Discounts
o 488 Miscellaneous Service Revenues
I 489.1 Revenues fom Transportation of Gas of Others
Through Gathering Facilities
10 489,2 Revenues from Transportation of Gas of Others
Through Transmission Facilities
11 489.3 Revenues from Transportation of Gas of Others
Through Distribution Facilities
12 489.4 Revenues from Storing Gas of Others
't3 490 Sales of Prod. Ext. from Natural Gas
14 491 Revenues fiom Natural Gas Proc. by Others
15 492 lncidental Gasoline and Oil Sales
'16 493 Rentfrom Gas Property
17 494 lnterdepartmental Rents
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 (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
Gas Operating Revenues
4. lf increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote.
5. 0n Page 1 08, include 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,
Line
No.
Oher
Revenues
Amount for
Cunent Year
(0
Other
Revenues
Amount for
Previous Year
(s)
Total
Operating
Revenues
Amount for
Cunent Year
(h)
Total
0perating
Revenues
Amount for
Previous Year
(D
Dekatherm of
Natural Gas
Amount for
Cunent Year
0)
Dekatherm of
Natural Gas
Amount for
Previous Year
(k)
1 220,175,977 195,275,153 220,175,977 195,275,153 22j98,195 18,656,462
2 109,897,458 98,504,799 109,897,458 98,504,799 14,514,777 12,361,947
J
4 143,278,875 154,435,624 143,278,875 154,435,624 55,088,826 69,373,309
(315,487 288,085 31 5,487 288,085 44,100 37,818
6
7
8 140,525 139,015 140,525 139,015
9
10
11
9,207,927 8,338,713 9,207,927 8,338,713 1 8,932,268 18,047,825
12
13
14
15
'16 2,693 3,293 2,693 3,293
17
18 ( 6,436,726)17,100272 ( 6,436,726)17,100,272
'19 476,582,216 474,084,954 476,582,216 474,084,954
20 2,392,142 2,767,455 2,352,142 2,767,455
21 474,190,074 471,317,499 474,190,074 471,317,499
FERC FORM NO.2 (REV 12-07)Page 301
ThiS
Avista Corporation (1)
(2)
Original
Resubmission
Date of Reoort(Mo, Da, Yi)
04111t2018
Year/Period of Report
End of 20lZ&[
Other Gas Revenues (Account 495)
Report below 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 Distribution of Gas of Ohers
2 Compensation for Minor or lncidental Services Provided for Others
3 Profit or Loss on Sale of Material and Supplies not Ordinanly Purchased for Resale
4 Sales of Stream, Water, or Eleclricity, including Sales or Transfers to Other Deparbnents
5 Miscellaneous Royalties
6 Revenues from Dehydration and Other Processing of Gas of Others except as provided for in the lnstructions to Account 495
7 Revenues for Right and/or Benefits Received from Others which are Realized Through Research, Development, and Demonstration Ventures
8 Gains on Seftlements of lmbalance Receivables and Payables
I Revenues from Penalties earned Pursuant to Tariff Provisions, including Penalties Associated with Cash-out Settlements
10 Revenues from Shipper Supplied Gas
11 Other revenues (Specify):
12 Misc Bills 437.402
13 Deferred Exchange Revenue 4,500,000
14 Decoupling Deferred Revenue ( 11,374,127)
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
Total ( 6,436,725)
FERC FORM NO.2 (12-96)Page 308
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ol 20171Q4
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
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 1B and 29)0 0
FERC FORM NO.2 (12-96)Page 317
I
I
I
0
Avista Corporation (1)
(2)
Original
Resubmission
Date of Report(Mo, Da, Yr)
o4t11t2018
Year/Period of Report
End of 2017lQ4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
31 82. Products Extraction
32 Operation
33 770 Operation Supervision and Engineering 0 0
u 771 Operation Labor 0
35 772 GasShrinkage 0 0
36 773 Fuel 0 0
37 774 Power 0 0
3B 775 Materials 0
39 776 Operation Supplies and Expenses 0 0
40 777 Gas Processed by Others 0 0
4'l 778 Royalties on Products Extracted 0 0
42 779 Marketing Expenses 0 0
43 780 Products Purchased for Resale 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
56 791 Maintenance of Other Equipment 0 0
57 TOTAL Maintenance (Total of lines 49 thru 56)0 0
5B TOTAL Products Extraction (Total of lines 47 and 57)0 0
FERC FORM NO.2 (12-96)Page 318
I
0
0
0
I
0
Name of Respondent
Avista Corporation
This Reoort ls:(1) []An originat(2) [-lA Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2o',t8
Year/Period of Report
Endol 2O17lQ4
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 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
73 804 Natural Gas City Gate Purchases 250,078,370 247,457,293
74 8M.1 Liquefied Natural Gas Purchases 0 0
75 805 Other Gas Purchases ( 5,442)( 1,814)
76 (Less) 805.1 Purchases Gas CostAdjustments ( 5,601,002)( 12,157,352)
77 TOTAL Purchased Gas (Total of lines 68 thru 76)255,673,930 259,612,831
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
B3 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
I
795 Delay Rentals
0
Name of Respondent
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 04t1'U2018
Year/Period of Report
End ot 20171Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
86 808.1 Gas Wthdrawn from Storage-Debit 21,687,940 22,932,919
87 (Less) 808.2 Gas Delivered to Storage-Credit 25,397,s28 18,187,452
88 809.1 \Mthdrawals 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
9'l 810 Gas Used for Compressor Station Fuel-Credit 0 0
92 811 Gas Used for Products Extraction-Credit I ,015,361 566,023
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)I ,015,361 566,023
95 813 Other Gas Supply Expenses 2,014,546 2,072,264
96 TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95)252,963,527 265,864,539
97 TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96)252,963,527 265,864,539
98 2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES
99 A. Underground Storage Expenses
100 Operation
'101 814 Operation Supervision and Engineering 25,'.t53 16,127
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 819,775 705,893
112 825 Storage Well Royalties 0 0
113 0 0
114 TOTAL Operation (Total of lines of 101 thru 1 13)844,928 722,020
FERC FORM NO.2 (12-96)Page 320
826 Rents
Name of Respondent
Avista Corporation
This ReDort ls:(1) []Rn originat(2) f-lA Resubmission
Date of Reoort
(Mo, Da, Yi)
04t1112018
Year/Period of Report
End of 20171Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
115 Maintenance
'1 '16 830 Maintenance Supervision and Engineering 0 0
117 831 Maintenance of Structures and lmprovements 0 0
't 18 832 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 Purilication Equipment 0 0
123 837 Maintenance of Other Equipment 806,732 804,745
124 TOTAL Maintenance (Total of lines 116 thru 123)806,732 804,745
125 TOTAL Underground Storage Expenses (Total of lines 114 and 124)1,651,660 1,526,765
126 B. Other Storage Expenses
127 Operation
't28 840 Operation Supervision and Engineering 0 0
129 841 Operation Labor and Expenses 0 0
130 842 Rents 0 0
131 842.1 Fuel 0 0
132 842.2Power 0 0
133 842.3 Gas Losses 0 0
1U TOTAL Operation (Total of lines 128 thru '133)0 0
135 Maintenance
136 843.1 Maintenance Supervision and Engineering 0 0
137 843.2 Maintenance of Structures 0 0
138 843.3 Maintenance of Gas Holders 0
139 843.4 Maintenance of Purification Equipment 0 0
140 843.5 Maintenance of Liquefaction Equipment 0 0
141 843.6 Maintenance of Vaporizing Equipment 0 0
142 843.7 Maintenance of Compressor Equipment 0 0
143 843.8 Maintenance of Measuring and Regulating Equipment 0 0
144 843.9 Maintenance of Other Equipment 0 0
't45 TOTAL Maintenance (Total of lines 136 thru 144)0 0
146 TOTAL Other Storage Expenses (Total of lines '134 and 145)0 0
FERC FORM NO.2 (12-96)Page 321
I
I
0
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
lx_lAn
ls:
Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ol 20171Q4
Gas Operation and Maintenance Expenses(continued)
Line
No
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
147
148 Operation
149 844.'l Operation Supervision and Engineering 0 0
150 8,14.2 LNG Processing Terminal Labor and Expenses 0 0
151 8214.3 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
1U 844.6 Compressor Station Labor and Expenses 0 0
155 844.7 Communication System Expenses 0 0
156 844.8 System Control and Load Dispatching 0 0
157 845.1 Fuel 0 0
158 845.2 Power 0 0
't 59 845.3 Rents 0 0
160 845.4 Demurrage Charges 0 0
16'l (less) 845.5 Wrarfage Receipts-Credit 0 0
162 845.6 Processing Liquefied or Vaporized Gas by Others 0 0
163 846.1 Gas Losses 0 0
164 846.2 Other Expenses 0 0
165 TOTAL Operation (Total of lines 149 thru 164)0 0
166
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
't70 847.4 Maintenance of LNG Transportation Equipment 0 0
171 847.5 Maintenance of Measuring and Regulating Equipment 0 0
172 847.6 Maintenance of Compressor Station Equipment 0 0
173 847.7 Maintenance of Communication Equipment 0 0
174 847.8 Maintenance of Other Equipment 0 0
175 TOTAL Maintenance (Total of lines 167 thru 174)0 0
176 TOTAL Liquefied Nat Gas Terminaling and Proc Exp (Total of lines 165 and 175)0 0
177 TOTAL Natural Gas Storage (Total of lines 125,146, and '176)1,651,660 1,526,765
FERC FORM NO.2 (12-96)Page 322
C. Liquefied Natural Gas Terminaling and Processing Expenses
Maintenance
Name of Respondent
Avista Corporation
This ReDort ls:(1) finn Originat(2) !A Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 2017lQ4
Gas Operation and llaintenance 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
189 859 Other Expenses 0 0
190 860 Rents 0 0
't 9'1 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 1 93 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 2,517,597 2,394,089
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
0
Name of Respondent
Avista Corporation (1)
(2)
Original (Mo, Da,
Resubmission 04t1'U2018
Year/Period of Report
End ot 20171Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
208 874 Mains and Services Expenses 6,848,075 6,223,508
209 875 Measuring and Regulating Station Expenses-General 272,676 214,642
210 876 Measuring and Regulating Station Expenses-lndustrial 19,000 10,564
211 877 Measuring and Regulating Station Expenses-City Gas Check Station 165,259 137,442
212 878 Meter and House Regulator Expenses 810,264 1,339,147
213 879 Customer lnstallations Expenses 3,190,311 3,147,738
214 880 Other Expenses 3,211,115 3,417,541
215 881 Rents 63,758 61,234
216 TOTAL Operation (Total of lines 204 thru 215)17,098,055 16,945,905
217 Maintenance
218 885 Maintenance Supervision and Engineering 291,604 330,676
219 886 Maintenance of Structures and lmprovements 0 0
220 887 Maintenance of Mains 2,646,970 2,564,O71
221 888 Maintenance of Compressor Station Equipment 0 0
222 889 Maintenance of Measuring and Regulating Station Equipment-General 511,713 485,016
223 890 Maintenance of Meas. and Reg. Station Equipmentlndustrial 992,1 09 281,286
224 891 Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 105,065 102,696
225 892 Mainlenance of Services 2,018,175 3,508,248
226 893 Maintenance of Meters and House Regulators 2,542,797 2,491,230
227 894 Maintenance of Other Equipment 490,277 432,383
228 TOTAL Maintenance (Total of lines 218 lhtu 227)9,598,710 10,195,606
229 TOTAL Distribution Expenses (Total of lines 2'16 and 228)26,696,765 27 ,141,51',!
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 90'l Supervision 218,512 307.187
233 902 Meter Reading Expenses 2,264,716 2,334,815
234 903 Customer Records and Collection Expenses 9,001,055 8,757,532
FERC FORM NO.2 (12-96)Pago 324
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]Rn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
235 904 Uncollectible Accounts 2,482,594 2,829,960
236 905 Miscellaneous Customer Accounts Expenses 222,367 218,799
237 TOTAL Customer Accounts Expenses (Total of lines 232 thru 236)14,189,244 14,448,293
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision 0 0
241 908 CustomerAssistance Expenses 13,677,235 11,349,685
242 909 lnformational and lnstructional Expenses 981,821 1,037 ,214
243 910 Miscellaneous Customer Service and lnformational Expenses 297,636 210,950
244 TOTAL Customer Service and lnformation Expenses (Total of lines 240 lhtu 243)'t4,956,692 12,597,849
245 7. SALES EXPENSES
246 Operation
247 9'1 1 Supervision 0 0
248 912 Demonstrating and Selling Expenses 345 293
249 913 Advertising Expenses 0 0
250 916 Miscellaneous Sales Expenses 0 0
251 TOTAL Sales Expenses (Total of lines 247 lhru 250)345 293
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 12,818,632 13,045,177
255 921 Office Supplies and Expenses 1,662,561 't,701,627
256 (Less) 922 Adminiskative Expenses Transferred-Credit 18,822 19,751
257 923 Outside Services Employed 3,072,504 2,889,143
258 924 Property lnsurance 429,491 456,1 30
259 925 lnjuries and Damages 1,257 ,759 't,284,519
260 926 Employee Pensions and Benefits 567,728 591 ,155
261 927 Franchise Requirements 0 0
262 928 Regulatory Commission Expenses 2,366,O12 2,251,001
263 (Less) 929 Duplicate Charges-Credit 0 0
264 930. 1 General Advertising Expenses 0 0
265 930.2Miscellaneous General Expenses 1,717,673 't,674,',t51
266 252,321 394J23
267 TOTAL Operation (Total of lines 254 thru 266)24,125,859 24,267,275
268 Maintenance
269 932 Maintenance of General Plant 4,555,212 4,163,915
270 TOTAL Administrative and General Expenses (Total of lines 267 and 269)28,681 ,071 28,431,190
271 TOTAL Gas O&M Expenses (Total of lines 97 ,177 ,201 ,229,237,2M,251, and 270)339,139,304 350,010,,140
FERC FORM NO.2 (12-96)Page 325
I
931 Rents
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
lIlAn Original
IA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 2017lQ4
Gas Used in Utility Operations
1. Report below details of credits during the year to Accounts 810, 81 1, and 812.
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, omitting entries in mlumn (d).
Line
No.
Purpose for Which Gas
Was Used
(a)
Acmunt
Charged
(b)
Natural Gas
Gas Used
Dth
(c)
Natural Gas
Amount of
Credit
(in dollars)
(d)
Natural Gas
Amount of
Credit
(in dollars)
(d)
Natural Gas
Amount of
Credit
(in dollars)
(d)
1 81 0 Gas Used for Compressor Station Fuel - Credit 2,126,456
2 811 Gas Used for Products Exhaction - Credit 2,519,863 1,015,361
J Gas Shrinkage and Other Usage in Respondent's
Own Processing
4 Gas Shrinkage, etc. for Respondenfs Gas
Processed by Others
E 812 Gas Used for Other Utility Operations - Credit
(Report separately for each principal use. Group
minor uses.)
6
7
8
I
10
11
12
13
14
'15
'16
17
18
19
20
21
22
,1
24
25 Total 4,646,319 1,015,361
FERC FORM NO. 2 (12-96)Page 33t
Name of
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report
(Mo, Da, Yr)
04111t2018
Year/Period of Report
End of 2017lQ4
Other Gas Supply Expenses (Account 813)
to which any expenses relate. List separately items of $250,000 or more.
Line
No.
Description
(a)
Amount
(in dollars)
(b)
1 Gas Resource Management
2 Labor 862,81 5
J Labor Loading 786,280
4 Other Expenses (Professional Services, Travel, Transportation, Office Supplies, Training)165,095
5
6 Regulatory Affairs
7 Labor 16,303
8 Labor Loading 15,109
o Other Expenses (Travel, Transportation, Gas Technology lnstitute Payments)1 68,944
10
11
12
13
14
15
16
17
'18
19
20
21
22
23
24
25 Total 2,0't4,546
FERC FORM NO.2 (12-96)Page 334
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lxlAn Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t1112018
Year/Period of Report
End ol 20171Q4
Miscellaneous General Expenses (Account 930.2)
1. Provide the information requested below on miscellaneous general expenses.
2. For Other Expenses, show tre (a) purpose, (b) recipient and (c) amount of such items. List separately amounts of $250,000 or more horever, amounts less than $250,000 may be
grouped if the number of items of so grouped is shown.
Line
No.
Descriptron
(a)
Amount
(in dollars)
(b)
1 lndustry association dues.303,296
2 Experimental and general research expenses.
a. Gas Research lnstitute (GRl)
b. Other
a 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 170,332
4 Other expenses
5 Community Relations 10,762
6 Director Expenses 274,411
7 Education and information 12,749
8 Rating agency fees 57,423
I Aircraft Operations fees 58,709
10 Misc Vendor >5K 755,353
11 Misc Vendor <5K 74,638
12
't3
14
15
16
17
18
19
20
21
22
23
24
25 Total 1,717 ,673
FERC FORM NO.2 (12-96)Page 335
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Reoort
(Mo, Da, Yi)
04t11t2018
Year/Period of Report
End of 2QlZ&l
Depreciation, Depletion and Amortization of Gas Plant (Accts 403,404.1,4U.2,404.3,405) (Except Amortization of
Acquisition Adjustments)
'1. Report in Section A he amounb of depreciation expense, depletion and amortization for the accounb indicated and classified according to the plant fnctional groups shown.
subaccount or functional classifications other than those pre-printed in column (a). lndicate in a footnote tre manner in which column (b) balances are
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.
Depreciation
Expense
(Account 403)
Amortization
Expense for
Asset
Retirement
Costs
(Account
403.1) (c)
Functional Classifi cation
(a)(b)
Amortization and
Depletion of
Producing Natural
Gas Land and Land
Righb
(Account 404.1 )
(d)
Amortization of
Underground Storage
Land and Land
Rights
(Account 404.2)
(e)
1 lntangible plant 227
2 Production plant, manufactured gas
2 Production and gathering plant, natural gas
4 Products extraction plant
q Underground gas storage plant 913,855
b Oher storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
o Distribution plant 22,556,742
10 General plant 743,579
11 Common plant-gas 5,922,723
12 TOTAL 30,576,899 227
FERC FORM NO.2 (12-96)Page 336
Name of Respondent
Avista Corporation
This Reoort ls:(1) l{An Original
(2) [-lA Resubmission
Date of Report(Mo, Da, Yr)
04t't'12018
Year/Period of Report
End ot 20'l7lQ4
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 4U.2,404.3,405) (Except Amortazation of
Acquisition Adiustments) (continued)
depreciation charges, shontr in a footnote any revisions made to estimated gas reserves.
provisions and the plant items to which relaled.
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.
Amortization of
Other Limited-term
Gas Plant
(Account 404.3)
(0
Amortization of
Other Gas Plant
(Acmunt 405)
(g)
Total
(b to s)
(h)
Functional Classification
(a)
1 214,849 215,076 lntangible plant
2 Production plant, manufactured gas
1 Production and gathering plant, natural gas
4 Products extraction plant
q 913,855 Underground gas storage plant
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
9 22,996,742 Distribution plant
10 743,579 General plant
11 7,306,803 13,229,526 Common plantgas
12 7,521,652 38,098,778 TOTAL
FERC FORM NO. 2 (12-96)Page 337
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End of 20171Q4
Depreclation, Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405) (Except Amortization of
Acquisition Adiustmsnts) (continued)
4. Addrowsasnecessarytocompletelyreportall data. Numbertheadditional rowsinsequenceas2.01,2.02,3.01,3.02,etc.
Section B. Factors Used in Estamating Depreciation Charges
Line
No.Functional Classifi cation
(a)
Plant Bases
(in housands)
(b)
Applied Depreciation
or Amortization Rates
(percent)
(c)
1 Production and Gathering Plant
2 Offshore (footnote details)
a Onshore (footnote details)
4 Underground Gas Storage Plant (footnote details)
5 Transmission Plant
6 Offshore (footnote details)
7 Onshore (foohote details)
8 General Plant (footnote details)
o
10
11
12
13
14
15
FERC FORM NO.2 (12-96)Page 338
Name of Respondent
Avista Corporation
This ReDort ls:(1) fiRn originat(2) !A Resubmission
Date of Report(Mo, Da, Yr)
04t1112018
Year/Period of Report
End ot 20171Q4
Particulars Concerning Certain lncome Deductions and lnterest Charges Accounts
Report the information specified below, in he order given, for the respective income deduction and interest charges accounts.
period of amortization.
may be grouped by dasses within the above accounts.
(c) lnterest on Debt to Associated Companies (Account 430)-For each associated company that incuned interest on debt during he year, indicate the amount and interest rate
whict interest was incuned during the year.
(d) Other lnterest Expense (Account 431) - Report details including the amount and interest rate for other interest charges incurred during the year.
Line
No.
Item
(a)
Amount
(b)
1 Donations 426.1 3,205,496
2 Total 426.1 3,205,496
1 Life lnsurance 426.2
4 Officers Life 156,373
5 SERP 2,628,713
6 Items under $250,000 182,285
7 Total 426.2 2,967,371
6 Penalties 426.3 '18,562
9 Total 426.3 18,562
'10 Expenditure for certain Civic, Political 426.4 1,663,123
11 Total 426.4 1,663,1 23
12 Other Deductions 426.5
13 Executive Delerred Comp 1,333,552
14 Pump Sctedule Refund
15 Advertising-Hanna & Associates 537,460
16 Hydro one Avista Acquisition 1 3,187,645
17 Items under $250,000 2,683,273
18 Total 426.5 17,741,530
19 lnterest on Debt to Assoc Companies 430
20 Avista Capital ll 830,592
21 Avista Capital lnc ( 153,565)
22 Total 430 677,027
23 Oher lnterest Expense 431
24 lnterest on eleckic deferrals 834,222
25 lnterest on natural gas deferrals 1,1 85,994
26 lnterest on committed line of credit 2,900,231
27 Other 736,887
28 Total 431 5,657,334
29
30
31
32
33
34
35
FERC FORM NO.2 (12-96)Page 340
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
fiRn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t1'U20',t8
Year/Period of Report
End ol 20171Q4
Regulatory Commissaon Expenses (Account 928)
cases in which such a body was a party.
2. ln column (b) and (c), indicate wheher the expenses rvere assessed by a regulatory body or were otherwise incurred by he utility.
Line
No.
Description
(Fumish name of regulatory commission
or body, he docket number, and a
description of the case.)
(a)
Assessed by
Regulatory
Commission
ft)
Expenses
of
Utility
(c)
Total
Expenses
to Date
(d)
Defened in
Account 182.3
at Beginning
of Year
(e)
1 Federal Energy Regulatory Commission
2 Charges include annual fee and license fee
J for the Spokane River Project, the Cabinet
4 Gorge Project and Noxon Rapids Project
2,526,991 63,658 2,590,650
5
6 Washington Utilities and Transportation Commission
7 lncludes annual fee and various other electric dockets
1,039,372 1,109,434 2,1 48,806
B
I lncludes annual fee and various other natural gas
dockets 301,362 299,167 600,529
10
11 ldaho Public Utilities Commission
12 lncludes annual fee and various other electric dockets
557,289 338,524 895,81 3
13
14 lncludes annual fee and various other natural gas
dockets 140,322 1 00,053 240,375
15
16
17 lncludes annual fee and various other dockets
591,921 535,1 37 1,127,058
'18
19 Not directly assigned electric
941,449 941,449
20 Not directly assigned natural gas
398,050 398,050
21
22
23
24
25 Total 5,157,257 3,785,472 8,942,730
FERC FORM NO.2 (12-96)Page 350
Public Utility Commission of Oregon
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn originat(2) [-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1112018
Year/Period of Report
End of 20171Q4
Regulatory Commission Expenses (Account 928)
3. Show in column (k) any expenses incuned in prior years that are being amortized. List in column (a) the period of amortization.
4. ldentify separately all annual charge adjustnents (ACA).
5. List in column (f), (g), and (h) expenses incuned during ymr which were charges drnently to income, plant, or oher accounb.
6. Minor items (less than $250,000) may be grouped.
Line
No.
Expenses
lncuned
During Year
Charged
Cunently To
Department
(fl
Expenses
lncurred
During Year
Charged
Cunently To
Account No.
(q)
Expenses
lncrned
During Year
Charged
Cunently To
Amount
(h)
Expenses
lncuned
During Year
Defened to
Account
182.3
(i)
Amortized
During Year
Contra
Account
(i)
Amortized
During Year
Amounl
(k)
Defened in
Account 182.3
End of Year
(t)
1
2
4
Electric 928 2,590,650
5
6
7
Electric 928 2,148,806
8
I
Gas 928 600,s29
10
11
12
Electric 928 895,81 3
13
14
Gas 928 240,375
15
16
17
Gas 928 1,127,058
18
19
Electric 928 941,449
20
Gas 928 398,050
21
22
23
24
25 8,942,730
FERC FORM NO.2 (12-96)Page 351
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Y0
o4111t2018
Year/Period of Report
End ol 20171Q4
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-retirement benefits otrer than pensions (PBOP)
4 Post employment benefit plans
5 Other (Specify)
6 A&G Common Training - GD service 565,866
7 Benefits Admin - GD service 1,862
8
I
10
't1
12
13
14
15
16
17
,IB
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Total 567,728
FERC FORM NO. 2 (NEW 12-07)Page 352
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Originat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ot 20171Q4
Distribution of Salaries and Wages
Oher 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 assigned to the
particular operating function(s) relating to the expenses.
detail of other accounts, enter as many rows as necessary numbered sequentially starting with 75.01, 75.02, etc.
Line
No.
Classification
(a)
Direct Payroll
Distribution
(b)
Payroll Billed
by Affiliated
Companies
(c)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Total
(e)
1 Electric
2 Operation
3 Production 11,732,722 11,732,722
4 Transmission 3,246,1 96 3,246,196
5 Distribution 8,042,074 8,042,074
Customer Accounts 7,505,286 7,505,286
7 Customer Seryice and lnformational 661,988 661,988
8 Sales
9 Adminiskative and General 1 9,3 10,835 19,310,835
10 TOTAL Operation (Total of lines 3 thru 9)50,499,1 01 50,499,101
11 Maintenance
12 Production 4,276,704 4,276,704
13 Transmission 1,228,398 1,228,358
14 Dishibution 3,928,339 3,928,339
15 Adminiskative and General 1 5,1 65,81 2 1 5,1 65,81 2
16 TOTAL Maintenance (Total of lines 12 thru 15)9,433,441 1 5,1 65,81 2 24,599,253
17 Total Operation and Maintenance
18 Produc{ion (Total of lines 3 and 12)1 6,009,426 16,009,426
19 Transmission (Total of lines 4 and '13)4,474,594 4,474,594
20 Distribution (Total of lines 5 and 14)1 1,970,413 1 1,970,413
21 Customer Accounts (line 6)7,505,286 7,505,286
22 Customer Service and lnformational (line 7)661,988 661,988
23 Sales (line 8)
24 Administrative and General (Total of lines I and '15)I 9,31 0,835 15,'t65,812 34,476,647
25 TOTAL Operation and Maintenance (Total of lines 18 thru 24)59,932,542 15,165,812 75,098,354
26 Gas
27 Operation
28 Production - Manufactured Gas
29 Production - Natural Gas(lncluding Exploration and Development)
30 Other Gas Supply 879,1 18 879,1 18
31 Storage, LNG Terminaling and Processing 1 1,709 1 1,709
32 Transmission
33 Disbibution 5,377,631 5,377,631
34 Customer Accounts 3,230,554 3,230,554
35 Customer Service and lnformational 347,530 347,530
36 Sales
37 Adminiskative and General 7,748,519 7,748,519
38 TOTAL Operation (Total of lines 28 thru 37)1 7,595,061 1 7,595,06 1
39 Maintenance
40 Production - Manufactured Gas
41 Production - Natural Gas(lncluding Exploration and Development)
42 Other Gas Supply
43 Storage, LNG Terminaling and Processing
44 Transmission 1,231,446 1,231,446
45 Distribution 3,128,408 3,1 28,408
FERC FORM NO.2 (REVISED)Page 354
6
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Originat(2) [-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
End ol 20'l7lQ4
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 Adminishative and General 5,557,1 98 5,557,'198
47 TOTAL Maintenance (Total of lines 40 thru 46)4,359,854 5,557,198 9,917,052
48 Gas (Continued)
49 Total Operation 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)879,1 18 879,1 18
53 Storage, LNG Terminaling and Processing (Total of ll. 31 and 43)1 1,709 1 1,709
54 Transmission (Total of lines 32 and 44\1,231,446 1,231,446
55 Distribution (Total of lines 33 and 45)8,506,039 8,506,039
56 Customer Accounb (Total of line 34)3,230,554 3,230,554
57 Customer Service and lnformational (Total of line 35)347,530 347,530
58 Sales (Total of line 36)
59 Administrative and General (Total of lines 37 and 46)7,748,519 5,557,198 13,305,717
60 Total Operation and Maintenance (Total of lines 50 thru 59)21,954,915 5,557,198 27,512,113
61 Oher Utility Departments
62 Operation and Maintenance
63 T0TAL ALL Utility Dept. (Total of lines 25, 60, and 62)81,887,457 20,723,01C 1 02,61 0,467
64 Utility Plant
65 Construction (By Utility Departmenb)
66 Electric Plant 42,214,060 14,220,767 56,434,827
67 Gas Plant I 0,529,300 4,917,591 15,446,89't
68 Other
69 TOTAL Construction (Total of lines 66 thru 68)52,743,360 19,138,358 71,881,718
70 Plant Removal (By Utility Departments)
71 Eleckic Plant 2,310,427 575,573 2,886,000
72 Gas Plant 365,185 90,974 456,159
t5 Other
74 TOTAL Plant Removal (Total of lines 71 hru 73)2,675,612 666,547 3,342,1 59
75 Other Accounts (Specify) (footnote details)46,773,566 ( 40,527,939)6,245,627
/b TOTAL Other Acmunts 46,773,566 ( 40,527,939)6,245,627
77 TOTAL SALARIES AND WAGES 184,079,995 (24)1 84,079,971
FERC FORM NO.2 (REVISED)Page 355
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
ll-lAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t11t2018
Year/Period of Report
End ot 20171Q4
Charges for Outside Professional and Other Gonsultative Servaces
than for services as an employee or for paymenb made for medical and related services) amounting to more tran $250,000, including payments for legislative seMces, except hose
which should be reported in Account 426.4 Expenditures for Certain Civic, Political and Related Activities.
(a) Name of person or organization rendering services.
(b) Total cfiarges for the year.
2. Sum under a description "Oher", all of the aforementiorcd 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 hat schedule.
Line
No.
Description
(a)
Amount
(in dollars)
(b)
1 Abremod LLC 273,943
2 Aclara Technologies 398,767
3 Alcatel 708,800
4 Alden Research Laboratory 307,582
5 Associated Construction 1,092,619
6 Bernardo Wills Architects 392,983
7 Cerium Networks 369,380
I Cirrus Design 478,465
I Coeur D Alene Tribe 721,105
10 Columbia Grid 254,121
11 Common Wealth Assoc 1,329,701
12 Connective DX lnc 928,977
13 Davis Wright Tremaine 267,211
14 Garco Construclion 5,263,535
15 General Electric 522,120
16 H2E lnc 273,453
17 Hamon Custodis lnc 388,906
18 Hanna & Associates 615,874
19 HDR Engineering lnc 1,500,022
20 H lckey Brothers research 279,376
21 ldaho Dept Rlsh & Game 378,353
22 Itron lnc 2,073,769
23 Kekst and Co 367,910
24 Klundt Hosmer Design 253,189
,).Land Expressions 272,471
26 Landau Associates 304,61 1
27 Lydig Conskuction 1,884,007
28 McKinstry Essention 440,663
29 Mcmillen LLC 1,605,307
30 Menill Lynch 9,374,969
31 Open Text 664,973
1U Oracle America 339,782
33 Parametrix lnc 272,276
34 Peak Reliability 638,771
35 Pillsbury Wnthrop 318,931
FERC FORM NO.2 (REVTSED)Page 357
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn originat(2) [-lA Resubmission
Date of Report
(Mo, Da, Yr)
0411'U2018
Year/Period of Report
End of 20'17/Q4
Charges for Outside Professional and Other Consultative Services (continued)
Line
No.
Desoiption
(a)
Amount
(in dollars)
(b)
I Potelco lnc 532,007
2 Rhodes Crane & Rigging 389,000
1 Shamrock Paving 1,679,496
4 Slayden Constructors 1,755,654
5 Spirae lnc 552,142
6 Stantec Consulting 426,405
7 Strata 402,700
I Sunrise Engineering 349,145
q Telvent USA 993,790
10 Tilton Excavaton 362,267
11 Triniti Consulting 7,181,673
12 URS Energy & Conshuction 281,230
13 Vandervert conskuc,ti on 1,663,495
14 Volt Management 289,830
15 Western Electricity 479,540
16 Wolfe Architectural Group 298,975
17 ZBA Architechture 560,599
'18 Other Misc Vendors 21,527,237
19
20 Total 75,282,107
21
22
23
24
25
26
27
28
29
30
3'r
32
33
34
35
FERC FORM NO.2 (REVISED)Page 357.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) []nn Originat(2) [-lA Resubmission
Date of Report(Mo, Da, Yr)
04t't1t2018
Year/Period of Report
End ol 20171Q4
Transactions with Assocaated (Affiliated) Companies
1. Report below the information called for concerning all goods or services received from or provided to associated (affiliated) companies amounting to more than $250,000.
2. Sum under a description "Othe/', all of the aforementioned goods and seMces amounting to $250,000 or less.
3. Total under a description "Total", the total of all of he 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 footnote the basis of the allocation.
Line
No.
Description of the Good or Service
(a)
Name of Associated/Affiliated Company
(b)
Account(s)
Charged or
Credited
(c)
Amount
Charged or
Credted
(d)
1 Goods or Services Provided by Affiliated Company
2 Other Steam Plant Square 931000 106,500
4
5
6
7
d
I
10
11
12
13
14
15
16
17
18
19
20 Goods or SeMces Provided for Affiliated Company
21 Corporate Support Salix 146000 620,675
22 0her Avista Development 145000 113,724
23 Other Avista Capital 146000 66,385
24 Oher AELP 146000 39,532
25 other AJT Mining 146000 6,074
26 Other Steam Plant Square 146000 107,588
27 Other Court Yard Oflice Center 146000 58,191
ao Other Steam Plant Brew PUb 146000 48,865
29
30
31
au
aa
34
35
36
37
38
39
40
FERC FORM NO.2 (NEW 12-07)Page 358
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lX_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t11t2018
Year/Period of Report
Endot 20'l7lQ4
Gas Storage Projects
1. Report injections and withdrawals of gas for all storage projecb used by respondent.
Line
No.
Item
(a)
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
(c)
Total
Amount
(Dth)
(d)
STORAGE 0PERATIONS (in Dth)
1 Gas Delivered to Storage
2 January 525,090 525,090
3 February 1 50,547 1 50,547
4 March 131,264 131,264
5 April 1,248,151 1,248,151
6 May 2,683,258 2,683,258
7 June 2,218,445 2,218,445
8 July 886,281 886,281
I August 1,030,051 1,030,051
10 September 1,651,942 1,651,942
11 0ctober 81,613 81,613
12 November 2't4,085 214,085
13 December 4,950 4,950
14 TOTAL (Total of lines 2 thru 13)10,825,677 10,825,677
15 Gas lMhdrawn from Storage
16 January 2,886,897 2,886,897
17 February 1,495,710 1,495,710
18 March 703,71 0 703,71 0
19 April 201,240 201,240
20 May 6,884 6,884
21 June 447,625 447,625
22 July 51 8,266 518,266
23 August 203,109 203,109
24 September 10,944 10,944
25 October 502,960 502,960
26 November 2't0,843 210,843
27 December 3,047,267 3,047,267
28 TOTAL (Total of lines '16 thru 27)1 0,235,455 10,235,455
FERC FORM NO.2 (12-96)Page 512_
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn Originat(2) l-lA Resubmission
Date of Report
(Mo, Da, Yr)
04111t2018
Year/Period of Report
End ot 2O17lQ4
Gas Storage Projects
1. On line 4, enter he total storage capacity certificated by FERC.
2. Report total amount in Dh or other unit, as applicable on lines 2, 3, 4, 7. lf quantity is converted from Mcf to Dth, provide conversion factor in a foohote.
Line
No.
Item
(a)
Total Amount
(b)
STORAGE OPERATIONS
1 Top or Working Gas End of Year 8,528,000
2 Cushion Gas (lncluding Native Gas)7,730,668
1 Total Gas in Reservoir (Total of line 1 and 2)1 6,258,668
4 Certifi cated Storage Capacity 1 6,258,668
5 Number of lnjection - Withdrawal Wells 50
6 Number of Observation Wells an
7 Maximum Days' Withdrawal from Storage
8 Date of Maximum Days'Withdrawal 01106t2017
o LNG Terminal Companies (in Dth)
't0 Number of Tanks
11 Capacity of Tanks
12 LNG Volume
'13 Received at'Ship Rail"
14 Transferred to Tanks
15 Withdrawn from 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)
04t1112018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
Line No.:7 Column: b
Mcf to Dth using a factor of '1.04
FERC FORM NO. 2 (12-96)Paqe 552.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn orisinat(2) l-lA Resubmission
Date of Report(Mo, Da, Yr)
04111t2018
Year/Period of Report
End of 2017lQ4
Auxiliary Peaking Facilities
installations, gas liquefaction plants, oil gas seb, etc.
For other facilities, report the rated maximum daily delivery capacities.
separate plant as contemplated by general instruction 1 2 of the Unifom System of Accounb.
Line
No.
Location of
Facility
(a)
Type of
Facility
(b)
Maximum Daily
Delivery Capacity
of Facility
Dfr
(c)
Cost of
Facility
(in dollars)
(d)
Was Facility
Operated on Day
of Highest
Transmission Peak
Delivery?
1
2 Chehalis, Washington Underground Natural Gas 346,667 39,88s,633 Yes
2 Storage Field
4 Washington & ldaho Supply
5
6 Chehalis, Washington Underground Natural Gas 52,000 6,347,098 Yes
7 Storage Field
I Oregon Supply
o
10 Underground Natural Gas 2,623 Yes
11 Storage Field
12 Oregon Supply
13
14 Underground Natural Gas 186,125 Yes
15 Storage Field
16 Washington & ldaho Supply
17
18 Underground Natural Gas 63,875
19 Storage Field
20 Oregon Supply
21
22
23
24
25
26
tt
28
29
30
FERC FORM NO.2 (12-96)Page 519
Ch€halis, Washington
Rock Sprinqs, Wominq
Rock Spdngs, Wyoming Yes
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) - A Resubmission
Date of Report
(Mo, Da, Yr)
04t11t2018
Year/Period of Report
2017tQ4
FOOTNOTE DATA
Line No.: 10 Column: a
519 Line 14 Column: a
a in the not an owner and is a fee for demand deliverabil and ca
a in the not an owner and is a fee for demand deliverabil 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)Page 552.1
Line No.: 18 Column: a
Name of Respondent
Avista Corporation
This Reoort ls:(1) []nn Original(2) l-lA Resubmission
Date of Report(Mo, Da, Y0
04t11t2018
Year/Period of Report
End ol 20171Q4
Gas Account - Natural Gas
1. The purpose of this schedule is to account lor the quantity ot natural gas received and delivered by the respondent.
2. Natural gas means either natural gas unmixed or any mixture ol natural and manufactured gas.
3, Enter in column (c) the year to date Dth as reported in the schedules ifidicated for the items of receipts and deliveries.
4. Enter in column (d) the respective qua(eis Dth as reported in the schedules indicated for the items of receipts and deliveries.
5. lndicate in a footnote the quantities ol bundled sales and transportation gas and specify the line on which such quantities are listed,
6. lf the respondent operates tuo or more systems which are not interconnecled, submit separate pages for this purpose.
market or that were not transported through any interstate portion of the reporting pipeline.
L lndicate in a footnote the specilic gas purchase expense account(s) and related to which the aggcgate volumes reported on line No. 3 relate.
reporting year, and (3) contract storage quantilies.
,ootnotes.
Line
No
Item
(a)
Ref. Page No. of
(FERC Form Nos.
2t2-A\
(b)
Total Amount
of Dth
Year to Date
(c)
Cunent Three Monhs
Ended Amount of Dth
Quarterly 0nly
(d)
01 Name of System:
2 GAS RECEIVED
J Gas Purchases (Accounts 800{05)94,471,083 23,811,174
4 Gas of Others Received for Gathering (Account 489.1 )303
5 Gas of Others Received for Transmission (Account 489.2)305
6 Gas of Others Received for Distribution (Account 489.3)301 1 8,932,268 4,805,844
7 Gas of Others Received for Contract Storage (Account 489.4)307
a Gas of Ottrers Received for Production/Extracton/Processing (Account 490 and 491)
I Exchanged Gas Received from Others (Account 806)328
10 Gas Received as lmbalances (Account 806)328 100,623 57,509
11 Receipts of Respondenfs Gas Transported by Others (Account 858)332
12 Other Gas Withdrawn from Storage (Explain)( 599,352)3,427,562
13 Gas Received from Shippers as Compressor Station Fuel
14 Gas Received from Shippers as Lost and Unaccounted for
15 Other Receipts (Specify) (footnote details)
16 Total Receipts (Total of lines 3 thru 15)112,904,622 32,102,089
17 GAS DELIVERED
18 Gas Sales (Accounts 480-484)91,84s,898 26,448,276
19 Deliveries of Gas Gathered for Others (Account 489.1 )303
20 Deliveries of Gas Transported for Others (Account 489.2)305
21 Deliveries of Gas Distributed for Others (Account 489.3)301 18,622,211 4,805,844
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 509 2,126,456 847,969
29 Other Deliveries and Gas Used for Other Operations
30 Total Deliveries (Total of lines 18 thru 29)1 12,594,565 32,102,089
3'r GAS LOSSES AND GAS UNACCOUNTED FOR
32 Gas Losses and Gas Unaccounted For
33 TOTALS
34 Total Deliveries, Gas Losses & Unaccounted For (Total oflines 30 and 32)1 12,594,565 32,102,089
FERC FORM NO. 2 (REV 01-11)Page 520
II
AVU- G
Avista Corp.
2017
IDAHO
State Natural Gas Annual Report
(IC 61-405)
:j -'' iltr'r\
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
STATEMENT OF UTILITY OPERATING INCOME - IDAHO
lnstructions
'l . For each account beloiv, 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
Line
No.Account
(a)
Refer to
Form 2
Page
(b)
TOTAL SYSTEM - IDAHO
Current Year
(c)
Prior Year
(d)
1 UTILITY OPERATING INCOME
2 300-301 419,787,234 422,538.944
3 Ooeratino Exoenses
4 317-325 231 973 242,634.836
5 Maintenance ExDenses (402)317-325 22.074.389 21.529.102
b 336-338 43,999,108 41,899,969
7 DeDreciation Exoense for Asset Retirement Costs (403.'1)336-338
8 &of Plant 336-338 7.955.792 6.813.051
o 336-338 r,731,391)(1 30,829)
10 Amort. of Propertv Losses. Unrecov Plant and Requlatorv Studv Costs (407)
11
12 Requlatorv Debits (407.3)2.991.044 201.332
13 (1,515,051)(1,069,637)
14 Taxes Other Than lncome Taxes (408.1 )262-263 1 8,329.857 17.246.129
15 262-263 (16.777.837\
16 - Other (409. 1)262-263
17 lncome 234-235 19,613,501 42,055,195
'18 (Less) Provision for Deferred lncome Taxes-Ct. (411.1\234-235
19 fi25.223't fi77.062\
20 (Less) Gains from Disoosition of Utilitv Plant (411.6)
21 of Plant
22 (Less) Gains from t soosition of Allowances (411.8)
23 Losses from Disposition of Allowances (4'l'1.9)
24 Accretion Exoense
25 TOTAL Utility Operatinq Expenses (Total of line 4 throush 24)347,691,633 354.224,249
26 Net Utilitv Ooeratino 7"68,314,695
IOAHO STATE NATURAL GAS ANNUAL REPORT 0C 61.405)G.|D.114-115
Deratino Revenlres /4OO\
Deretion FYnenseq 1401 )
enreciatinn Fxnense 14O3\
mortizati6n of t ltilitv Plant Acorrisition Adiustment (406)
ess) Rmrrlaloru Credits 1407 4)
ncome Taxes - Federal (409 1)
nvesfment Tav Crcdit Adiilstment - Net (4'l 1 4'l
Name of Respondent
Avista Corporation
This Report is:
I nn originat
I n Resubmission
Date of Report
mm/dd/yyyy
4t1',v2018
Year / Period of Report
End of 2017 I 04
STATEMENT OF UTILITY OPERATING INCOME - IDAHO
lnstructions
page 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.Current Year
(e)
Prior Year
(f)
Current Year
(s)
Prior Year
(h)
Current Year
(i)
Prior Year
0)
1
325,1 00,552 327,785,81 9 94,686,682 94,753,125 2
J
167,904,262 175,575,735 63,799,711 67,059,1 01 4
19.148.674 17.939.683 2.925.7',15 3.589.419
37,220,519 35,446,852 6,778,589 6,453.117 o
7
6,461,920 5,493,620 1.493.872 1,319,431 8
(2.730.776\67.304 (615)(198,1 3r l9
10
11
2.822.908 33. 1 96 I 68.1 36 168.136 12
(1,441,279\1 (73,772)13
1 5,332,575 "t4,563,595 2.997.282 2.682.534 14
3.958.603 n5.820.1 ,437,031 @57.824\15
16
16,558,5 12 37,444,693 3,054,989 4,610,502 17
18
(1 19,991)( 1 69,388)6.232)0,674\''t9
20
21
22
23
24
265.115.927 269.505 640 84.7'18.60!25
59,984,625 58,280,179 12.110.976 '10,034,5'16 26
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 51405)G.tD.114-115
a2 575706
Name of Respondent
Avista Corporation
This Report is:Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4EEAn Original
A Resubmission
PLANT DEPRECIA'AND
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 atributable to that plant in service.
2. Report in column (c) the amount for electric function, in column (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 Utilitv Plant
2 ln Service
3 Plant in Service (Classified)1.771.308.752 1.371.092.224
4 Leases 149,697 71,000
5 Plant Purchased or Sold
6 Completed Construction not Classified
7 Plant Unclassified
8 1 .771 .458.449 1 ,371 .163.224ILeased to Others
10 Held for Future Use 162.3s2
11 Construction Work in Prooress 37.852.376 31.075.'135
12 Acquisition Adiustments
13 1,809.663.762 1.402.400.711
14 62 496,615,896
'15 Net Utilitv Plant (Line 13 less line 14)1.188.291.574 905.784.8'15
16 Detail of Accumulated Provision for Depreciation, Amortization, and Depletion
17
18 Deoreciation 60(r.410.318 491,458,762
19 Amortization and Deoletion of Producino Natural Gas Lands / Land Riohts
20 Amortization of Underoround Storaoe Lands / Land Riqhts
21 of Other Plant 20.961,870 5.1 57, 1 34
22 Total (Total lines 18 throuoh 21)621 372 188 496,615,896
23 Leased to Others
24 Depreciation
25 Amortization and Deoletion
26
27 Held for Future Use
28 DeDreciation
29 Amortization
30 Total Held for Future Use
31
JZ Amortization of Plant Acouisition Adiustment
33 Total Accumulated Provision (Total lines 22, 26, 30, 31, 321 621.372.188 496.615.896
IOAHO STATE NATURAL GAS ANNUAL REPORT (rc 6T405)G.1D.200-201
,LETION .IDAHO
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
I n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 20'17 lQ4
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION .IOAHO
lnstructions
and in column (h) common function.
3. ln order to accurately reflect utility plant in service necessary to furnish utility service to customers 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)
(f)
Other (Specify)
(s)
Common
Line
No.
1
2
240.313.213 't 59,903,315 a
78,697 4
5
o
7
240,391 ,910 159.903.315 o
q
'190.585 10
282,626 6,494,615 11
12
240,865,',t21 166.397.930 13
81.782.571 42.973,721 14
159.082.550 123.424,209 15
16
17
81.546.489 27.405.067 18
19
20
236.O82 15.568.654 21
81.782.571 42.973,721 22
23
24
z5
26
27
28
29
30
31
32
81.782.571 42,973,721 33
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.200-201
(h)
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t1112018
Year / Period of Report
End of 2017 I 04
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 furnish 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 1 01 , 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
reductions in column (e), adjustments.
5. Enclose in parentheses credit adjustments of plant accounts to indicate the negative effect of such amounts.
6. 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 in mlumn (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 INTANGIBLE PLANT
2
302 Franchises and Consents
4 1,036,905 7,200
5 TOTAL lntanoible Plant (Total of lines 2. 3. and 4)1.036.905 7.200
b PRODUCTION PLANT
7 and
8 325.1 Producino Lands
v 325.2 Producinq Leaseholds
10
11 325.4 Riohts-of-Wav
12 325.5 Other Land and Land Riqhts
13
14 327 Field Comoressor Station Structures
15 328 Field and
16
17 330 Producino Gas Wells-Well Construction
18 331 Producinq Gas Wells-Well Equipment
19 332 Field Lines
20 333 Field Comoressor Station Equipment
21 334 Field Measurinq and Requlatinq Stat on Equipment
22
23 336 PurificationEouiDment
24
25
26 339 Asset Retirement Costs for Natural Gas Production and Gatherino Plant
27 TOTAL Natural Gas Production and Gather ng Plant (Total of lines 8 throuqh 26)
28
29 340 Land and Land Riohts
30 and
31
32 343 Pipe Lines
33 Products
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.204-205
301 C)roanization
3O3 llismllanmrrs lntandihlePlent
325 3 Gas Ridhts
326 Gas Well StnrcJrrres
329 Other Stnr.Jrrres
335 Drillino and Cleanino Eduioment
337 Other Fouinment
338 lJnsrrcmssfrrl Fxoloration and Develooment Costs
Products ExtracJion Plant
342 Extraction and Re-finino Eouioment
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 20'17 lO4
lnstructions
these tentative classifications in columns (c) and (d), including the reversals of the prior year's tentative account distributions of these amounts. Careful
observance of these instructions and the texts of Accounts 101 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 (f) only the offset to the debits or credits distributed in column (0 to primary
account classifications.
8. For Account 399, state the nature and use of plant included in this account, and, if substantial in amount, submit a supplementary statement sho,vrng
subaccount classification of such plant conforming to the requirement of these pages.
9. For each account comprising the reported balance and changes in Account 102, state the property purchased or sold, name of vendor or purchase, and
date of transaction. lf proposed journal entries have been filed as required by the Uniform System of Accounts, give also the date of such filing.
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance
End of Year
(s)
Line
No.
1
2
3
176,593 40. 1 88 907.700 4
1 76,593 40,'t88 907,700 E
6
7
8
o
10
11
12
13
14
15
16
17
18
,,19
20
21
23
24
25
26
21
28
29
31
32
33
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 51405)G.1D.204-205
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t20',t8
Year / Period of Report
End of 2017 I Q4
GAS PLANT IN ,|
Line
No.Account
(a)
Balance
Beginning of Year
(b)
Additions
(c)
34
35 346 Gas Measurino and Reoulatino EouiDment
Jb 347 Other EquiDment
38 TOTAL Products Extraction Plant (Total of lines 29 throuqh 37)
20 TOTAL Natural Gas Production Plant (Tota lines 27 and 38)
40
41 TOTAL Production Plant (Total lines 39 and 40)
42 NATURAL GAS STORAGE AND PROCESS |ING PLANT
43 Plant
44 350.1 Land 336,489
45 350.2 Riqhts-of-Wav
46 593.222 fi.542\
47 352 Wells 3.821.206 n.542\
48 352.'1 Storaqe Leaseholds and Riqhts
49 59.92'l
50 352.3 Non+ecoverable Natural Gas 1,579,501
51 353 Lines
52 3.576.621 n.542\
53 355 Other Eouioment 237,893 fi.542\
54 356 PurificationEquiDment
55 619.il8 1.542\
56 358 Asset Retirement Costs for Underqround Storaqe Plant
57 11.U3.767 (7.710\
58
59 360 Land and Land Riohts
bU and
61
62 363 PurificationEouioment
63 1
64 363.2 Vaoorizino Eouioment
b5 363.3 Comoressor Eouioment
and
o/363.5 Other Eouioment
68 363.6 Asset for Other
IU Base Load Liouefied Natural Gas Terminalinq and Processino Plant
71 36,4.1 Land and Land Riohts
72
73 364.3 LNG Processino Terminal Eouioment
74 364.4 LNG Transportation Equipment
76 364.6 Comoressor Station Equioment
77 364.7 Communications Eouipment
78
79 364.9 Asset Retirement Costs for Base Load Liquefied Natural Gas
80
TOTAL Base Load Liquefied Natural Gas Terminaling and Processing Plant (Total lines 7'l
throuoh 79)
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.206-207
EE
it Suoolementarv Schedule)
toreoe Plant
rrouoh 68)
t
x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
GAS PLANT lN SERVICE - IDAHO (Account 101.1O2.103 and 106) (Continued)
Retirements
(d)
Adjustments
(e)
Transfers
0
Balance
End of Year
(s)
Line
No.
34
35
Jb
37
38
39
40
41
42
43
22.238 358.727 44
879 18,506 45
1 16.848 708,528 46
256,192 4.075.856 47
3,739 78,697 48
2.989 62,910 49
78.787 1.658.288 50
1 323,161 51
265.665 52
99,124 335.475 53
5,935 124,909 54
118.162 55
56
985.912 12.321,969 57
58
59
60
61
62
bJ
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61{05)G.lo.206-207
Name of Respondent
Avista Corporation
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
I n Resubmission
Date of Report
mm/dd/ywy
4t11t2018
Year / Period of Report
End of 2017 I Q4
No.Account
Balance
Beginning of Year Additions
81 TOTAL Natural Gas Storaqe and Processinq Plant (Total of lines 57, 69 and 80)11,343,767 0.710\
B2 TRANSMISSION PLANT
83 365.'1 Land and Land Rio ')ts
84 365.2 Riohts-of-Wav
85 366 Structures and lmprovements
86
87 368 Comoressor Station Equipment
88 369 and ouioment
89
90 371 Other Eouioment
91 Asset Retirement
92 TOTAL Transmission Plant 9'r
93 DISTRIBUTION PLANT
94 Land and Land 39.545
95 364.739 10.287
96 376 Mains 105,5'10,701 8,845,826
97 377 Compressor Station Equipment
98 2.261.696 1 26.501
99 379 Station 4,503,307 7.314
5.92s.886
101 381 Meters 23,545.142 345.902
102 382 Meterlnstallations
103
104 384 House Reoulator lnstallations
105 385 769,995 (14,268)
106 386 Other Property on Customers' Premises
107 387 Other Eouioment
108 388 Asset Retirement Costs for Distrib on Plant
TOTAL Distribution Plant (T 205.869.271 15.286.993
110 GENERAL PLANT
111 389 Land and Land Riohts
112 390 Structures and lmorovements
113 391 Office Furniture and EouiDment 129.209 46, 1 00
114 392 Transportation EquiDment r,868,494 99,357
115
116 394 Tools. Shoo. and Garaoe EouiDment 1 ,1 36,823 245,362
117 395 LaboratoryEouiDment
118 994.483
119 397 Communication Eouioment 700.237 42.865
120
121 Subtotal (Total of Lines 11'throuoh 120)5.903.259 433,684
122 399 Other Tanoible Prooertv
Retirement Plant
124 122 and 5.903,259 433,684
125 TOTAL (Accounts 101 and '106)224,153.202 15,720,167
126 Gas Plant Purchased (See
127 (Less) Gas Plant Sold (See lnstruction 8)
Plant
129 1 224.153,202 15.720.167
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.208-209
367 Mains
370 Commrrnimtian Forrinment
375 Stnrctrrres and lmorovements
378 ilIeasrrrino anri Redulatino Station EouiDment-General
38O Seruices
383 Horrse Reor rlators
393 Stores Fotrinment
396 Po\ /er Oneraterl Forrinment
3qB iiliscnllanmr rs Fdr rinmcnt
Name of Respondent
Avista Corporation
This Report is:
I nn original
I n Resubmission
Date of Report
mm/dd/yyyy
4t1'v2018
Year / Period of Report
End of 2017 I Q4
Balance
End of Year
Line
Retirements Adjustments Transfers No.
985,912 12,321.969 81
82
83
84
85
86
87
B8
89
91
92
93
127.350 94
375.026 OA
51,201 1,709
97
11,774 86 2,376,509 98
99
45.434 74.706.338 100
23.891,044 101
103
104
755.727 '105
106
107
108
108,409 1,795 109
110
111
112
1 3,555 (1 7.365)144,389 '113
(1 8,080)114
115
22.089 (1 13.483)1,246,613 116
410
2.838 (8.861)982.784 '118
119
120
38,892 (185.460)6,112,591 121
123
38,892 (185.460)6,1 12,591 124
323.894 125
126
127
128
323,894 842.435 240,39 1,910 129
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.208-209
(24
442 435
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
! n Resubmission
Date of Report
mm/dcl/yWy
4t11t2018
Year / Period of Report
End of 2017 I Q4
GAS STORED - IDAHO (Accounts 1'17.1.117.2. 117.3. 164.1,164.2, and 164.3)
lnstructions
1. lf during the year adjustments were made to the stored gas inventory reported in mlumns (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 noncurrent 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
117.1\
(b)
(Account
117.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Current
(Account
164.1)
(f)
LNG
(Account
164.2)
G)
LNG
(Account
164.3)
(h)
Total
(i)
1 Balance at beginninq of year 't.772.474 6.505.902 8,278,380
2 Gas delivered to storaoe 7.72',t,789 7,721 ,789
J Gas withdrawn from storaqe 6,227,606 6.227.606
4 Other debits and credits
5 Balance at end of vear 1.772,478 8,000,085 9,772,563
6 Dth 31 7,648 3.571.467 3.889.115
7 Amount oer Dth 5.58 2.24 2.51
(1 ) Fuel is accounted for within iniections and withdrawal accounts.
(2) All gas reported is current working gas. Avista uses the inventory method to report all working gas stored
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.tD.220
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 20'17 / Q4
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 (f) and (g) revenues for Accounts 480-495.
Line
No.Account
(a)
Revenues for
Transition Costs
and Take-or-Pav
Revenues for
GRI and ACA
Current Year
(b)
Previous Year
(c)
Current Year
(d)
Previous Year
(e)
I
2 481 Commercial and lndustrial Sales
3
4 483 Sales for Resale (1)
E
6 485 lntracomoanv Transfers
7 Discounts
8 488 Miscellaneous Service Revenues
9 489.1 Revenues from Transportation of Gas for Others
throuqh Gatherinq Facilities
10 489.2 Revenues from Transportation of Gas for Others
through Transmission Facilities
11 489.3 Revenues from Transportation of Gas for Others
throuoh Distribution Facilities
12 from
13
14 491 Revenues from Natural Gas Processed by Others
15
16 493 Rent ftom Gas Prooertv
17
18 495 Other Gas Revenues (1)
't9 Subtotal
20 496 (Less) Provision for Rate Refunds
21 TOTAL
IDAHO STATE NATURAL GAS ANNUAL REFORT (IC 51405)G.1D.300-301
480 Residential Sales
12 Other Sales to Prrhlic Arfhorities
lnterdenartmentrl 52les
4
490 Sales of Producls FxtrecJed from Natural Gas
492 lncidental Gasoline and Oil Sales
lnterdeDartmentel Rents
Name of Respondent
Avista Corporation
This Report is:
x An Original
I n Resubmission
Date of Report
mm/dd/ywy
4111t2018
Year / Period of Report
Endo 2017 lQ4
lnstructions
4. lf increases or decreases from previous year are not derived ftom previously reported figures, explain any inconsistencies in a footnote in the
available space at the bottom of this page or aftached in a separate schedule.
5. See pages 1 08 in the FERC Form 2, lmportant Changes During the Quarter/Year, 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
Revenues
Dekatherm of
Natural Gas Line
No.
Current Year
(f)
Previous Year
(s)
Current Year
(h)
Previous Year
(.)
Current Year
(i)
Previous Year
(k)
45.661.813 41.491.093 45.661.813 41.491.093 5.360.236 4.543.723 1
21,992,152 19,653,995 21,992,152 1 9,653,995 3,449,267 2,824,894 2
3
26,456,040 29,343,836 26,456,040 29,343,836 9,089,780 13,454,785 4
32.211 29.913 32.211 29.913 4.843 4.141 5
6
7
8,788 1 0,056 8,788 1 0,056 8
o
'10
584,996 494.874 584,996 494,874 5,496,129 5,584,501 11
12
13
14
15
16
17
(49.318)3.729.358 (49.318)3.729.358 18
94.586.582 94 753 125 94.585 682 94 753 125
20
94.686.682 94,753,125 94,686,682 94,753,125
(1) Sales for Resale and Deferred Exchange dollars are allocated based on the Washington / ldaho monthly commodity allocations used in
Results of Operations.
|DAHO STATE NATURAL GAS ANNUAL REPORT (rC 614{t5}G.tD.300-301
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dcilyWy
4t11t20't8
Year / Period of Report
End of 2017 I Q4
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions
1. For each prescribed accrunt 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 prevtously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
1
2 A. Manufactured Gas Production
3
4 B. Natural Gas Production
5 Production
6 Operation
7 750
8 751 Production MaDs and RecordsI752 Gas Well Expenses
10
't1 754 Field Compressor Station Expenses
12 755 Field Compressor Station Fuel and Po\,\er
13 756 Field and on Expenses
14
tR 758 Gas Well Rovalties
16
17 760 Rents
18 of lines
19 Maintenance
20 76't Maintenance and
21 762 Maintenance of Structures and lmprovements
22 763 Maintenance of Producinq Gas Wells
23 7M Maintenance of Field Lines
24 765 Maintenance of Field
25 Station
26 767 Maintenance of Purification Equipment
27
28 769 Maintenance of Other Eauipment
29
30 TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29)
IDAHO STAIE NATURAL GAS ANNUAL REPORT (IC 61405)G.|D.317
no
leenno
ation Fouinmenf
This Report is:EE An Original
A Resubmission
Date of Report
mm/dd/ywy
4t1',U2018
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 82. Products Extraction
32 Operation
33 770 Ooeration Suoervision and Enoineerino
34 771 Operation Labor
36 773 Fuel
38 775 Materials
40 777 Gas Processed by Others
41 on
42 779 Marketino Exoenses
43
44 781 Variation in Products lnventory
45 782 (Less) Extracted Products Used by the Utility-Credit
46 783 Rents
47
48 Maintenance
49 and
50 785 Maintenance of Structures and lmorovements
51 786 Maintenance Extraction and
52 787 Maintenance of Pipe Lines
53
54 789 Maintenance of Compressor Equipment
55 790 Maintenance of Gas Measurino and teoulatino EouiDment
56 791 Maintenance of Other Eouipment
58 TOTAL Products Extraction (Total oflines 47 and57\
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.318
Name of Respondent
Avista Corporation
Year / Period of Report
End of 2017 I Q4
1eeflno
no For rinmenl
toraoe Fol rinment
) 561
Name of Respondent
Avista Corporation x
This Report is:
An Original
! e Resubmission
Date of Report
mm/dcl/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
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)
59 C. Exoloration and Develooment
60 Operation
61 795 Delav Rentals
oz 796 Nonproductive Well Drilling
63 797 Abandoned Leases
64 798 Other Exploration
65 61
66 D. Other Gas Suoolv Exoenses
67 Operation
68 800 Natural Gas Well Head Purchases
69 Well Head
70 801 Natural Gas Field Line Purchases
71 Gas Gasoline
72 803 Natural Gas Transmission Line Purchases
73 Natural Gate 5 t.81 \.449 52,495,820
74 804.1 Liouefied Natural Gas Purchases
75 805 Other Gas Purchases
76 805.1 (Less) Purchased Gas CostAdiustments
77 Other Gas 51,810,449 52,495.820
78
79 Purchased Gas Expenses
80 807.1 Well Exoense-Purchased Gas
81 807.2 Operation of Purchased Gas Measuring Stations
82
83 807.4 Purchased Gas Calculations Expenses
84 (1.494.1 83)'1.044.744
85 TOTAL Purchased Gas ExDenses (Total of lines 80 throush 84)(1.494.1 83)1,044,744
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61{05)G.ID.319
ntracomDanv Trensfers
rrrchases
of lines 68 throlroh 76I
Name of Respondent
Avista Corporation
This Report is:
lxl An originat
I n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
AND
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 ftom previously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
86 808.1 Gas Withdrawn from Storaqe-Debit
87 808.2 (Less) Gas Delivered to Storaoe-Credit
88 809.1 Withdrawals of Liquefied Natural Gas for Processinq-Debit
809.2 (Less) Deliveries of Natural Gas for Processino-Credit
90 Gas Used in Utilitv ODeration-Credit
810 Gas Used for Comoressor Station :uel-Credit
92 811 Gas Used for Products Extraction-Credit (218.992)(1 31,255)
93
94 TOTAL Gas Used in Utilitv Operations-Credit (Total of lines 91 throuqh 93)Q18.992\(131.255\
95 813 437.921 455.427
Ub TOTAL Other Gas SuDDlv Exoenses (Total of lines 77.78.85.86 throuoh 89. 94. 95)50,535,195 53,864,736
97 Production lines 50.535.195 53.864.736
98 2. NATURAL GAS STORAGE. TERMINALING AND PROCESSING EXPENSES
99
100 Ooeration
101 814 Operation Supervision and Enqineerinq 4.753
102 8"15 Maps and Records
103 8"16 Wells Expenses
104 817 Lines Exoense
105 818 Comoressor Station Exoenses
819 ComDressor Station Fuel and Power
107 820 Measurino and Requlatino Station Exoenses
109 822 Exoloration and Development
110 823 Gas Losses
111 824 Other Expenses 229.162 187.952
112 825 Storaoe Well Rovalties
114 TOTAL Ooeration (Total of lines 101 throuoh 1 1 3)236,944 192.705
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.1D.320
812 Gas t lserl for Other t ltilitv ODerations-Credit
t lnderoror rnd Storaoe Fxnenses
821 PrrrifimtionFxnenses
826 Rents
Name of Respondent
Avista Corporation
This Report is:
I nn originat
f] n Resubmission
Date of Report
mm/dcl/yyyy
411112018
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions't. For each prescribed ac@unt 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.Acmunt
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
115 Maintenance
116 830 Maintenance Supervision and Enqineering
117
'l '18 832 Maintenance of Reservoirs and Wells
11 Lines
120 834 Maintenance of Comoressor Station Equipment
of
122 836 Maintenance of Purification Eouioment
of Other 225,516 214,273
124 214.273
125 TOTAL Underoround Storaqe Expenses (T 462.460 406,978
126 B. Other Storaoe ExDenses
127 )peration
128
129 841 and
130 842 Rents
13'l 842.1 Fuel
132
133 842.3 Gas Losses
TOTAL Operation (Total of lines 128 throug r 133)
135 Maintenance
136 843.1 Maintenance Supervision and Eng neering
137 843.2 Maintenance of Structures
138 of
139 843.4 Maintenance of Purification Eouioment
141 843.6 Maintenance of Vaoorizino Eouioment
of
143
'144 43.9 Maintenance of Other Eouipment
145
146 TOTAL Other Storaoe Exoenses (Total of lines '134 and 145)
IDAHO STATE NATURAL GAS ANNUAL REPORT (C 61405)G.tD.321
Year / Period of Report
End of 2017 I Q4
831 Mainlenancn of Stnr.Jrrres and lmbrovements
TOTAL l\Iaintenancn (Totel of lines 1'15 throuoh 123)
840 Ooeration Suoervision and Enoineerino
Porcr
843 5 t\r2intenanee of I iorrefacJion Folrinment
843.8 Maintenance of Measurino and Reoulatino Eouioment
TOTAL t\ilaintenen.€ (Total of lines 136 throuoh 144)
Name of Respondent
Avista Corporation
This Report is:
lxl An originat
f] n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
GAS OPERATION AND
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)
147 C. Liouefied Natural Gas Terminalino and Processino Exoenses
148 Operation
149 844.1 Ooeration Suoervision and Enoineerino
150 844.2
151 844.3 Liouefaction Processino Labor and Exoenses
152 844.4
15r ]44.5 Measurino and Reoulatino Labor and Exoenses
154 844.6 Compressor Station Labor and Expenses
1s6 844.8 System Control and Load Dispatching
157
158 845.2 Power
159
160 845.4 Demurraoe Charqes
162 845.6 Processinq Liquefied or Vaoorized Gas bv Others
163
164 846.2 Other Expenses
165
166 Maintenance
167 847.1 Maintenance Supervision and Eng neerino
168 847.2 Maintenance of Structures and lmprovements
'169 847.3 Maintenance of LNG Processinq Terminal Eouioment
170 847.4 Maintenance of LNG Transoortation Equipment
171 847.5 Maintenance of Measurino and Reoulatino EouiDment
172 847.6 Maintenance of Compressor Station Equipment
174 847.8 Maintenance of Other Equipment
176 TOTAL Nat Gas and Proc
17i 462.460 406,978
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.0051 G.tD.322
7 Commrrnic-ation Svstem Exoenses
845 1 Fuel
845 3 Rents
845 5 /l ess) Wharfaoe Rec€iots-Credit
Oneration lTotal of lines 149 throrroh '164)
7 Maintenance of Communic2tion Eouioment
Meintenanc€ (Total of lines 167 throuoh 174)
Natrrral Gas Storaoe (Total of lines 125 146 and 176)
Name of Respondent
Avista Corporation
This Report is:EE An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
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)
178 3. TRANSMISSION EXPENSES
179 Ooeration
180 850 Ooeration Suoervision and Enqineerinq
181
182 852 Communication Svstem Expenses
1U 854 Gas for Compressor Station Fuel
and Power
186 856 Mains ExDenses
857 Measurinq and Requlating Station xpenses
188 858 Transmission and Compression of Gas by Others
189 859 Other Expenses
190 860 Rents
191 TOTAL Operation (Total of lines '180 throuq r 190)
192 Maintenance
193 861 Maintenance Supervision and Enqineering
194
195 863 Maintenance of Mains
196
197 865 Maintenance of Measurinq and Requlatinq Station Equipment
199 867 Maintenance of Other EouiDment
200
201 TOTAL Transmission (Total of lines 191 and 200)
203 Operation
870 Operation Supervision and Enqineer nq 522,80s 472,647
205 871 Distribution Load Dispatchinq
Station Labor and
207
IDAHO STATE NATURAL GAS ANNUAL REPORT(IC 61405I G.tD.323
10
luiDment
lment
rrorroh 199)
Name of Respondent
Avista Corporation
This Report is:
E-l Rn originat
! n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
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)
208 874 Mains and Services Exoenses 1.596.669 1.298.273
875 Measurinq and Requlatinq Station :xpenses-General 54,080 32,387
210 876 Measurino and Reoulatino Station Exoenses-lndustrial 5.881 2.088
877 Measurinq and Requlatinq Station :xpenses-City Gas Check Station 77,563 58,353
212 878 Meter and House Requlator Expenses 200.902 224.O92
714,082 823,546
214 880 Other Exoenses 582.803 683.725
881 Rents 1 3,530 14.331
216 TOTAL Ooeration (Total of lines 204 throuoh 215)3.609.442
217 Maintenance
218 885 Maintenance Suoervision and Eno neeflng 89,956
219 886 Maintenance of Structures and lmprovements
220 887 Maintenance of Mains 405.932
221 888 Maintenance of Compressor Station Equipment
222 78.159
223 890 Maintenance of Measurinq and Requlatinq Station Equipment-lndustrial 45.007 65.092
224 891 Maintenance of Meas. and Reo.tation EquipmentCity Gate Check Station 48,979
225 892 Maintenanceof Services 486.926 1.075.201
226 893 Maintenance of Meters and House legulators 650,549 685,032
227 894 Maintenance of Other Eouioment 77.674 70.986
1 ,810,1 05 2,519,347
229 TOTAL Distribution Expenses (Total of lines 216 and228\5.578.420 6.128,789
230 5. CUSTOMER ACCOUNTS EXPENSE
231 Operation
232 901 Supervision 71.954
233 902 Meter Readinq Expenses '168.487 230,955
234 903 Customer Records and Collection Exoenses .008 95s 1984.758
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.{05)G.tD.324
Year / Period of Report
Endot _2017 lQ4
879 Customer lnst2ll2tions Fxmnses
Meintenenm (Tot2l of lines 2'lS lhtottdh )27\
Name of Respondent
Avista Corporation
This Report is:EE An Original
A Resubmission
Year / Period of Report
End of 2017 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
Current Year
(b)
Amount for
Previous Year
(c)
235 904 Uncollectible Accounts 590.3M 673.323
236 905 Miscellaneous CustomerAccounts Expenses 52,879 52,058
237 TOTAL Customer Accounts Expenses (Total of lines 232 through 236)2.872.648 3.013.048
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Suoervision
241 908 Customer Assistance Expenses 1.254.619
242 209,595 234.435
243 910 Miscellaneous Customer Service and lnformational Expenses 71,053 50,191
244 AL Service and 1.781.117 1.539.245
245 7. SALES EXPENSES
246 Operation
247 911 Suoervision
248 912 Demonstrati and
249 913 Advertisino Exoenses
250 916 Miscellaneous Sales Expenses
251 TOTAL Sales Exoenses (Total of lines 247 throuqh 250)
252 8. ADMINISTRATIVE AND GENERAL
253 Ooeration
254 920 Administrative and General Salaries .543.747 2.707.331
255 322.243 348.142
256 922 (Less) Administrative Expenses Transferred-Credit (5,391)(5,869)
257 592.274 586.793
258 924 Prooertv lnsurance 94,334
and 241.399 265.499
260 926 Emolovee Pensions and Benefits 111,543 115,920
261 Franchise
262 928 RequlatorvCommission Expenses 319,080 294,735
263
2U 930.1 General Advertisino ExDenses 347,704
265 930.2 Miscellaneous General Expenses 340.673
266 931 Rents 55,162 85,336
267 TOTAL Operation (Total of lines 254 throuqh 266)4.605.492 4.839.925
268 Maintenance
269 932 Maintenance of General Plant 890,094 855,799
270 AL Administrative and 5.495.586 5.695.724
271 TOTAL Gas O&M lines 97 77 ,725,426 70,648,520
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.rD.32s
Date of Report
mm/dd/ywy
4t11t2018
909
921 Office Srronlies and Fxnenses
923 Orrtside Seruices Fmnloved
q29 (l essl Drrnlimte Chardes-Credil
6(
Name of Respondent
Avista Corporation
Thas Report is.
Jxl An orisinat
! a Resubmission
Date of Report
mm/dd/yyyy
4111t2018
Year / Period of Report
End of 2017 I Q4
GAS TRANSMISSION MAINS. II
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 owrership. 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 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
(D
1
2
.1
4
5
6
7
o
Y
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
32
34
JO
38
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 property for accounting purposes (see definitions 29 (B) and (C)).
IDAHO STATE NATURAL GAS ANNUAL REPORT (tC 61405)G.1D.514
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
lnstructions
1 . 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'owrer, 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
(0
1 Steel Wrapped Less than 2"1.758.029 1,756,033
2 Steel Wraooed 2" to 4"619,186 776 6 1 9,962
a Steel Wrapped 4" to 8"411.629 429.475
4 Steel Wraooed 8" lo 12"12,197 12.197
5 Steel Wrapped Ovet 12"
6
7
8 Plastic Less than 2"5.670.509 99.475 5.769.984IPlastic1,507,546 14,055 1,s21.601
10 Plastic 4" to B"631.752 '1.019 632.771
11 Plastic 8" to 12"
12 Plastic Over 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
38
39
40
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.tD.s14A
EE
2" to 4"
Name of Respondent
Avista Corporation
This Report is:
lx-l nn ortginal
! n Resubmission
Date of Report
mm/dctyyw
4t1'U2018
Year / Period of Report
End of 2017 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
SeNice Pipes
Beginning of Year
(c)
Added
During Year
(c)
Retired
During Year
(d)
Number of
Service Pipes
End of Year
(e)
Average
Length
in Feet
(f)
1 Steel WraDDed 1" or Less 11.444 65 1 1,379 (1)
2 Steel Wraooed 1" lo 2"190 7 183 (1)
Steel Wrapped 2" lo 4"o 1 7 (1)
4 Steel WraoDed 4'to 8"1 1 (1)
Steel Wrapped Over 8"(1)
b Steel WraDoed Unknown 335 31 304 (1)
7
8 Plastic 1 " or Less 62,610 64,937 (1)
I Plastic 1" to 2"271 b 277 (1)
10 Plastic 2" to 4"10 2 12 (1)
11 Plastic 4" to 8"4 1 3 (1)
12 Plastic Over 8"(1)
13 Plastic Unknown 2.059 835 1,224 (1)
14
15 Other Unknown 11 6 5 (1)
16
17
18
'19
20
21
22
23
24
25
26
27
2A
29
30
31
32
33
34
CE
36
37
38
39
40
(1) lnformation not available.
|DAHO STATE NATURAL GAS ANNUAL REPORT 0C 61405)G.tD.5148
Name of Respondent
Avista Corporation
This Report is:
lxl nn originat
f] n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
REGULATORS.
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
(f)
Retired During
Year
(o)
ln Plant
End of Year
(h)
1
2 No Data available
J
4
5
A
7
8
o
10
't'l
12
13
14
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 Total
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.lD.s14C
Name of Respondent
Avista Corporation
This Report is:
lxl An originat
I n Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
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 of Year
(e)
Added During
Year
(f)
Retired During
Year
(d)
ln Plant
End of Year
(h)
1 Ail All Ail Ail 80.459 2.910 2.040 81.329
2
3
4
E
6
10
12
14
16
7
18
19
20
22
23
24
25
26
28
29
30
31
32
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 (IC 61.405)G.tD.514D
Name of Respondent
Avista Corporation
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t11t2018
Year / Period of Report
End of 2017 I Q4
GAS ACCOUNT - NATURAL GAS - IDAHO
lnstructions
1 . The purpose of this schedule is to account for the quantity of natural gas received and delivered by the respondent for service in the state of ldaho.
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 receipts and deliveries.
4. lndicate in a footnote (in the available space at the bottom of this page or in a separate schedule) the quantities of bundled sales and transportation gas
and specify the line on which such quantities are listed.
5. lf the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose.
6. lndicate by footnote the quantities of gas not subject to FERC regulation which did not incur FERC regulatory costs by showng (1) the local 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 Iocal 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 specific gas purchase expense account(s) and related to lvhich the aggregate volumes report on line 3 relate.
8. lndicate in a footnote (1 ) the system supply quantities of gas that are stored by the reporting pipeline during the reporting year and also reported as sales,
transportation and compression volumes by the reporting pipeline during the same reporting yeat, (2) the system supply quantities of gas that are stored
by the reporting pipeline during the reporting year which 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
Form 2
Page
(b)
Amount of Dth
Year to Date
(c)
Amount of Dth
Current 3 Months Ended
Quartely Only
(d)
1 Name of System
2
J Gas Purchases (Accounts 800-805)20.408.1 I 3
4 Received for 303
R Gas of Others Received for Transmission (Account 489.2)305
t)of Others Received for Distribution 301 5,496, 129
7 Gas of Others Received for Contract Storaqe (Account 489.4)307
8 Received from 328
q Gas Received as lmbalances (Account 806)328 (7.538)
10 Receipts of Respondent's Gas Transported b 332
11 Other Gas Withdrawn from Storaoe (Exolain)(193.'t76)
12 Gas Received from Shippers as Compressor Station Fuel
13 Gas Received from ShioDers as Lost and Unaccounted For
14 Other Receipts (Specifv) (footnote details)
'15 I 25.703.528
'16 GAS DELIVERED
17 Gas Sales (Accounts 480484)19.507.822
18 Deliveries of Gas Gathered for Others (Acmunt 489. 1)303
19 305
20 Deliveries of Gas Distributed for Others (Account 489.3)301 5,496,129
21 307
22 Exchanqe Gas Delivered to Others (Account 806)328
23 Gas Delivered as lmbalances (Account 858)328
Deliveries of Gas to Others for Transportation (Account 858)332
25 Delivered to
26 Gas Used for Comoressor Station Fuel 509 699.577
27
28 Total Deliveries (Total of lines '17 throuqh 27)25.703.528
29
30 Production System Losses
31 Gatherino Svstem Losses
32 Transmission System Losses
JJ Distribution System Losses
34 Storaqe Svstem Losses
35
36 Total Gas Unaccounted For (Total of lines 30 through 35)
37 25.703.528
(1) Represents net gas withdrawals and injections.
IDAHO STAIE NATURAL GAS ANNUAL REFORT (IC 614O5I G.tD.520
EE
489 1)
rers (Amlrnt 858)
489 4)
Total of lines 28 and 36)
Lorenz, Karen
From:
Sent:
To:
Cc:
Subject:
Attachments:
Categories:
Hi Karen,
Matsunaga, Roy (US - Portland) <[e-mail]>
Thursday, April 26, 2018 3:36 PM
Lorenz, Karen
Haslip, David (US - Portland); Krasselt, Ryan
lExternall Ql AC Materials
30115a Audit Committee Communications QI FY 2018.pdf; 11314A Avista Corp. Audit
Service Plan - FY 2018(4-25-2018 2.59.15 PM).pdf; Draft Rep Letter.pdf; FERC
Engagement Letter.pdf; Draft Appendix A.PDF; 2018 Deloitte GAAP Audit Engagement
Letter.pdf
Audit Committee
Here are our documents. They should be included in the following ordera
r(,eptoc- .- \a^d s.o+L1. 30115a A mittee Communications Q1 FY 2018 9\6,J
La.nCq
11314A Audit fu(ue-
2018 Deloitte %Pry"
FERC Engagement Letter -aq ?%r'co
fl
(
4
5
6
r
\a-ruse@rry;t"- - goo**.rrtltl( - Toc4:r-tb
Let me know if you have any questions or concerns.
Thanks,
Roy
This message (including any attachments) contains confidential information intended for a specific individual
and purpose, and is protected by law. If you are not the intended recipient, you should delete this message and
any disclosure, copying, or distribution of this message, or the taking of any action based on it, by you is strictly
prohibited.
v.E.1
Draft Rep Letter
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For questions or concerns, plea