2018Annual Report.pdf

THIS FILING IS
Item 1: E An lnitial(Original)
Submission
OR tr Resubmission No. _vu-G
Form 2 Approved
OMB No.1902-0028
(Expires 1213112020)
Form 3-Q Approved
OMB No.1902-0205
(Expires 1213112019)
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FERC FINANGIAL REPORT
FERC FORM No.2: Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q: Quarterly
Financial Report
These reports are mandatory under the Natural Gas Act, Sections '10(a), and 16 and 18
CFR Parts 260.1 and 260.300. Failure to report may result in criminal fines, civil
penalties, and other sanctions as provided by law. The Federal Energy Regulatory
Commission does not consider these reports to be of a confidential nature.
Exact Legal Name of Respondent (Company)
Avista Corporation
Year/Period of Report
End of 2O18lQ4
FERC FORM No. 2/3Q (02-04)
PANI
IDENTIFICATION
01 Exact Legal Name of Respondenl
Avista Corporalion
Year/Period of Report
End of 2018/Q4
03 Previous Name and Date of Change (lf name changed during yeaQ
04 Address of Principal Office at End of Year (Street, City, State, Zip Code)
141 1 East Mission Avenue, Spokane, WA 99207
05 Name of Contact Person
Ryan L. Krasselt
06 Title of Contact Person
VP, Conlroller, Prin. Acctg
07 Address of Contact Person (Street, City, State, Zip Code)
141 1 East Mission Avenue, Spokane, WA 99207
08 Telephone of Contact Person, lncluding Area Code
509-495-2273
ET
This Report ls:
(1)
(2)
An Original
A Resubmission
10 Date of Report
(Mo, Da, Yr)
04115t2019
ANNUAL CORPORATE OFFICER CERIIF]CATION
I have examined thie report and to the best of my knowledge, information, and belief all statemenls of fact contained in this report are correct statements
ofthe business affairs ofthe respondent and the financial statements, and otherfinancial information contained in this report, conform in all material
respects to the Uniform System of Accounts.
The undersigned officer certifies that:
VP, Controller, Prin. Acctg
'12 Tiile11 Name
Ryan L. Krasselt
14 Date Signed
0411512019
1 3 Signature
Ryan L. Krasselt Vr,*, tb^,t'>qf"
Titl" 18JJ^S.C. 1001 ,4k"r 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 slatements as to any matter within its jurisdiction.
FERC FORM NO. 2/sQ (02-04)Page I
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lI.lAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Reporl
End of 2018/Q4
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported
for certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Line
No.
Title of Schedule
(a)
Reference
Page No.
(b)
Date Revised
(c)
Remarks
(d)
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS
1 General lnformation 101
2 Control 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 the Year 114-116
8 Statement of Accumulated Comprehensive lncome and Hedging Activities 117
o Statement of Retained Earnings for the Year 118-119
't0 Statements of Cash Flows 120-121
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 200-201
13 Gas Plant in Service 204-209
14 Gas Property and Capacity Leased from Others 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
1B Non-Traditional Rate Treatment Afforded New Projects 217 N/A
19 General Description of Construction Overhead Procedure 218
20 Accumulated Provision for Depreciation of Gas Utility Plant 219
21 Gas Stored 220
22 lnvestrnents 222-223
23 lnvestrnents in Subsidiary Companies 224-225
24 Prepayments 230
25 Extraordinary Property Losses N/A
26 Unrecovered Plant and Regulatory Study Costs 230 N/A
27 Other Regulatory Assets 232
28 Miscellaneous Defened Debits 233
29 Accumulated Defened lncome Taxes 234-235
BALANCE SHEET SUPP0RTING SCHEDULES (Liabilities and Other Credits)
30 Capital Stock 250-251
3't Capital Stock Subscribed, Capital Stock Liability for Conversion, Premrum on Capital Stock, and
lnstallments Received on Capital Stock 252 N/A
32 Other Paid-in Capital 253
33 Discount on Capital Stock 254 N/A
34 Capital Stock Expense 254
35 Securities issued or Assumed and Securities Refunded or Retired During the Year 255
36 Long-Term Debt 256-257
37 Unamortized Debt Expense, Premium, and Discount on Long-Term Debt 258-259
FERC FORM NO.2 (REV 12-07)Page 2
2',12
230
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
dnn
ls:
Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Reporl
End of 2018/Q4
List of Schedules (Natural Gas Company) (continued)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported
for certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
Line
No.
Title 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 lnmme for Federal lncome Taxes 261
40 Taxes Accrued, Prepaid, and Charged During Year 262-263
41 Miscellaneous Current and Accrued Liabilities 268
42 Other Defened Credits 269
43 Accumulated Defened lncome Taxes-Other Property 274-275
44 Accumulated Defened lncome Taxes-Other 276-277
45 other Regulatory Liabilities 278
INCOME ACCOUNT SUPPORTING SCHEDULES
46 Monthly Quantity & Revenue Data by Rate Schedule 299 N/A
47 Gas Operating Revenues 300-301
48 Revenues from Transportation of Gas of Others Through Gathering Facilities 302-303 N/A
49 Revenues ftom Transportation of Gas of Others Through Transmission Facilities 304-305 N/A
50 306-307 N/A
51 Other Gas Revenues 308
52 Discounted Rate Seruces and Negotiated Rate Services 313 N/A
53 Gas Operation and Maintenance Expenses 317-325
54 Exchange and lmbalance Transactions 328 N/A
55 Gas Used in Utility Operations 331
56 Transmission and Compression of Gas by Others 332 N/A
57 Other Gas Supply Expenses 334
58 Miscellaneous General Expenses-Gas 335
59 Depreciation, Depletion, and Amortization of Gas Plant 336-338
60 Particulars Concerning Certain lncome Deductton and lnterest Charges Accounts 340
COMMON SECTION
61 Regulatory Commission Expenses 350-351
62 Employee Pensions and Benefts (Account 926)352
63 Distribution of Salaries and Wages 354-355
64 Charges for Outside Professional and Other Consultative Services 357
65 Transactions wittr Associated (Affiliated) Companies 358
GAS PLANT STATISTICAL DATA
66 Compressor Stations 508-509 N/A
67 Gas Storage Projects 512-513
68 Transmission Lines 514 N/A
69 Transmission System Peak Deliveries 518 N/A
70 Auxiliary Peaking Facilities 519
71 Gas Account-Natural Gas 520
72 Shipper Supplied Gas for the Cunent Quarter 521 N/A
73 System Map 522 N/A
74 Footnote Reference 551 N/A
75 Footnote Text 552
76 Stockholde/s Reports (check appropriate box)
I Four copies Wll be submitted
! No annual report to stockholders is prepared
FERC FORM NO.2 (REV 12-07)Page 3
Revenues fiom Storage Gas of Others
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lI_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t15t2019
Year/Period of Reporl
End of 2018/Q4
General lnformation
1. Provide name and tite of officer having custody of tre general corporate books of account and address of office where the general corporate books are kept and address of office
where any other corporate books of account are kept, if different from that where the general corporate books are kept.
Ryan Krasselt, Vice President and Controller, Principal Accounting Officer
1411 East Mission Avenue
Spokane, WA 99207
2. ProMde the name of the State under the laws ol which respondent is incorporated and date of incorporation. lf incorporated under a speoal law, give reference to such law. lf not
incorporated, state that fact and give the type of organization and the date organized.
State of Washington, lncorporated March 15,'1889
the authority by whidr 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 otrer seMces furnished by respondent during the year in eadr 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
FERC FORM NO.2 (12-96)Page 101
5. Have you engaged as the principal accountant to audit your fnancial statements an accountant who is not the principal accountant for your previous year's certifed fnancial
statements?
(1) n Yes...Enterthedatewfiensuchindependentaccountantwasinitiallyengaged:
(2) E No
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
l2!IAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
0411512019
Year/Period of Report
End of 2018/Q4
Corporations Controlled by Respondent
1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by
respondent at any time during the year. lf control ceased prior to end of year, give particulars (details) in a footnote.
2. lf control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held,
naming any intermediaries involved.
3. lf control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.
4. ln column (b) designate type of control of the respondent as "D" for direct, an "1" for indirect, or a "J" for joint control.
DEFINITIONS
1. See the Uniform System of Accounts for a definition of control.
2. Direct control is that which is exercised without interposition of an intermediary.
3. lndirect control is that which is exercised by the interposition of an intermediary that exercises direct control.
4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the
voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by mutual
agreement or understanding between two or more parties who together have control within the meaning of the definition of control in
the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line
No.
Name of Company Controlled
(a)
Type of Control
(b)
Kind of Business
(c)
Percent Voting
Stock Owned
(d)
Footnote
Reference
(e)
1 Avista Capital D Parent to the Company's subsidiaries 100 Alol used
2 Avista Development Maintains investrnent portfolio incl Real
Estate
100 l'/ol us*d
3 Avista Energy I lnactive 100 Alof used
4 Pentzer Corporation Parent of Bay Area Mfg and Penture
Venture Holdngs
100 Nol used
5 Bay Area Manufacturing I Holding co of AM&D dba MetalFX 100 Nof used
b Advanced Manufacturing & Develoment I Custom Sheet Metal Fabrication 89 trVot us$d
7 dba MetalFX Not used
8 Avista Capital ll D Affiliated business trust issue pref trust
sec
100 lvot used
I Avista Norhwest Resources, LLC Owns an interest in a venture fund
investment
100 lJol u-<ed
10 Steam Plant Square, LLC I Commercial office and Retail leasing 100 /Vol used
11 Courtyard Office Center, LLC I Commerical office and Retail leasing 100 lJcl used
't2 Steam Plant Brew Pub, LLC I Restaurant 0perations 100 Ncl used
13 Alaska Energy and Resources Company D Parent company of Alaska operations '100 lVol r;s*d
14 Alaska Electric Light and Power Company I Utility operations based in the city and
borough
100 llol used
15 ofJuneau, AK
16 AJT Mining Properties, lnc lnactive mining company holding
certain properties
'100 f,lol ased
17 Sneftisham Electric Company Holds certain rights to purchase the
Snettisham
100 l'/ot used
18 Hydroelc-tric project in he city &
borough of
19 Juneau, AK
20 Salix, lnc I Liquified Natural Gas Operations 100 fuof used
21 Pentzer Venture Holdings ll, lnc I Holding Company - lnactive 100 lJot used
22
23
24
25
26
27
28
29
FERC FORM NO.2 (12-96)Page {03
Avista Corporation (1)
(2\
Original (Mo, Da,
Resubmission 04t15t2019
Year/Period of Reporl
End of 2018/Q4
Security Holders and Voting Powers
1. Give the names and addresses of the 't0 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 securig has become vested with voting rights, then
show such 10 security holders as of the close of the year. Arrange the names of the security holders in the order of voting power,
commencing with the highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders.
2. 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 security. State whether voting rights are actual or
contingent; if contingent, describe the contingency.
3. lf any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination
of corporate action by any method, explain briefly in a footnote.
4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of
the respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material
information relating to exercise of the options, 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,
1 . Give date of the latest closing of the stock
book prior to end of year, and, in a footnote, state
the purpose of such closing:
2. State the total number of votes cast at the latest general
meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by prory.
Total:
By Proxy:
57354219
57353577
3. Give the date and place of
such meeting:
511012018; Spokane, WA
Line
No.
Name (Title) and Address of
Security Holder
(a)
VOTING SECURITIES
4. Number of votes as of (date): 1213112018
Total Votes
(b)
Common Stock
(c)
Preferred Stock
(d)
Other
(e)
E TOTAL votes of all voting securities 65,688,000 65,688,000
6 TOTAL number of security holders 7,447
7 TOTAL votes of security holders listed below 31,939,809 3 1,939,809
8
o BlackRock;40 E 52nd Sbeet, New York, NY 't 1,585,719
10 The Vanguard Group; 100 Vanguard Blvd, Malvem, PA 7,236,292 7,236,292
11 Magnetar Financial LLC; Evanson, lL 3,039,532 3,039,532
12 CNH Partners LLC; Greenwich, CT 2,81 6,358 2,816,358
13 SSgA Funds Management, lnc.; Boston, MA 1,829,00'l 1,829,001
14 Dimensional Fund Advisors LP; Austin, TX 1,341,432 1,341,432
'15 Goldman Sachs & Co LLC; New York, NY 1,104,163 1,1 04,1 63
16 Falcon Edge Capital LP; New York, NY 1,094,662 1,094,662
17 BNY Mellon; Boston, MA 946,846 946,846
18 Norges Bank lnvestment Management; Oslo Norway 945,804 945,804
19
20
FERC FORM NO.2 (r2-96)Page 107
7,447
1 1,585,71!
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04115t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
Line No.: 9 Column: b
Schedule Paqe: 107 Line No.: 1 Column: 1
Record date for dividend le 12114118
The holdings are pursuant to Avista's lnstitutional lnvestor Contact list provided by Proxy Solicitor DF King & Co., as of
12131118. These investors hold their shares Cede & Com and are benefical owners.
1t30t18
FERC FORM NO. 2 (12-96)Page 552.'l
1 No.;6 Column: b
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04115t2019
Year/Period of Report
2018tQ4
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 from whom the franchise rights were
acquired. lf the franchise rights were acquired without the payment of consideration, state lhat 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 pa(ies, 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 otheMise, 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 lhe 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 ofthese persons was a party or in which any such person had a
material interest.
1 1. 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 ofcustomers affected.
12. Describe fully any changes in officers, directors, major security holders and voting powers ofthe 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 (Hydro One) in Ontario. On January 23,2019, this transaction
was terminated by mutual agreement between Avista Corp. and Hydro One and certain subsidiaries thereof. As
a result, Hydro One paid Avista Corp. a $ 103 million termination fee. Reference is made to Note I 7 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 $375 million debt
issuance referenced in Note I I was approved by regulatory commissions as follows: WUTC (Docket Nos.
UE-l51822 Order0l and U-l7l210 Order0l) IPUC (CaseNo. AUV-U-I5-01 OrderNos.3340l and 33978)
and the OPUC (Docket No. UF 4302 Order No. l8-033).
7. None
8. Average annual wage increases were 2.4o/ofor non-exempt employees effbctive March 5,2018. Average
annual wage increases were 2.9o/o for exempt employees effective March 5,2018. Officers received average
increases of 5.7o/o effective February 19,2018. Certain bargaining unit employees received increases of 3.Iyo
effective March 26, 2018.
FERC FORM 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)
04t15t2019
Year/Period of Report
2018tQ4
lmportant Changes During the Quarter/Year
9. Reference is made to Note l5 of the Notes to Financial Statements.
10. None
ll.
Washington General Rate Cases and Other Proceedings
2015 General Rate Cases
In January 2016 we received an order which was reaffirmed by theWashington Utilities and Transportation
Commission (WUTC) in February 2016 that concluded our electric and natural gas general rate cases that were
originally filed with the WUTC in February 2015. New electric and natural gas rates were effective on January
n,2016.
The WUTC-approved rates were designed to provide a I .6 percent, or $8.1 million decrease in electric base
revenue, and a 7 .4 percent, or $ 10.8 million increase in natural gas base revenue. The WUTC also approved a
rate of return on rate base (ROR) of 7 .29 percent, with a common equity ratio of 48.5 percent and a 9.5 percent
return on equity (ROE).
In March 2016, the Public Counsel Unit of the Washington State Office of the Attorney General filed in
Thurston County Superior Court a Petition for Judicial Review of the WUTC's orders that concluded our 2015
electric and natural gas general rate cases. In April 2016, this matter was certified for review directly by the
Court of Appeals, an intermediate appellate court in the State of Washington.
On August 7,2018, the Court of Appeals issued an Opinion which concluded that the WUTC's use of an
attrition allowance to calculate Avista Corp.'s rate base violated Washington law. The Court struck all portions
of the attrition allowance attributable to Avista Coqp.'s rate base and reversed and remanded the case for the
WUTC to recalculate Avista Corp.'s rates without including an attrition allowance in the calculation of rate
base.
The total attrition allowance approved by the WUTC was $35.2 million, with $28.3 million related to electric
and $6.9 million related to natural gas. The Company cannot predict the outcome of this matter at this time and
cannot estimate how much, if any, of the attrition allowance may be removed from the general rate cases. The
regulatory process to address this matter has not yet been established by the WUTC. See "Note l5 of the Notes
to Financial Statements" for further discussion of this matter.
2017 General Rate Cases
On April 26,2018, the WUTC issued a final order in our electric and natural gas general rate cases that were
originally filed on May 26,2017 .ln the order, the WUTC approved new electric rates, effective on May I ,2018,
that increased base rates by 2.2 percent (designed to increase electric revenues by $ 10.8 million). The net
increase in electric base rates was made up of an increase in our base revenue requirement of $23.2 million, an
increase of $14.5 million in power supply costs and a decrease of $26.9 million for the impacts of the Tax Cuts
and Jobs Act (TCJA), which reflects the federal income tax rate change from 35 percent to 2l percent and the
FERC FORM NO.2 108.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
lmportant Changes During the Quarter/Year
amortization of the regulatory liability for plant excess deferred income taxes that was recorded as of December
3l ,2017 .
While the WUTC authorized an increase in the Energy Recovery Mechanism (ERM) baseline to reflect
increased power supply costs, it directed the parties to examine the functionality and rationale of the Company's
power cost modeling and adjust the baseline only in extraordinary circumstances if necessary to more closely
match the baseline to actual conditions.
For natural gas, the WUTC approved new natural gas base rates, effective on May 1 ,2018, that decreased base
rates by 2.4 percent (designed to decrease natural gas revenues by $2.1 million). The net decrease in natural gas
base rates was made up of an increase in base revenues of $3.4 million that was offset by a decrease of $5.5
million for the impacts from the TCJA, which reflects the federal income tax rate change and the amortization
of the regulatory liability for plant-related excess deferred income taxes that was recorded as of December 31,
2017.
In addition to the above, the WUTC also ordered, effective June l, 2018, a one-year temporary reduction of $7.9
million in our revenue requirements for electric and $3.2 million for natural gas, reflecting reductions for the
return of tax benefits associated with the non-plant excess deferred income taxes and the customer refund
liability that was established in 2018 related to the change in federal income tax expense for the period January
l, 201 8 to April 30, 201 8.
The new rates are based on a ROR of 7.50 percent with a common equity ratio of 48.5 percent and a 9.5 percent
ROE.
In our original filings, we requested three-year rate plans for electric and natural gas; however, in the final order
the WUTC only provided for new rates effective on May l, 2018.
In testimony filed in our 2017 general rate case, the WUTC Staff recommended the exclusion of our 2016
settlement costs of interest rate swaps from the cost of capital calculation. In the final order, the WUTC
disagreed with WUTC Staff and did not disallow the settlement costs of our interest rate swaps. However, the
WUTC did recommend that we make changes to our interest rate risk hedging policy to be more risk responsive
We are evaluating and making changes to our policy to meet the WUTC recommendations.
TCJA Proceedings
In February 20[9, we filed an all-party settlement agreement with the WUTC related to the electric tax benefits
that were set aside for Colstrip in the 2017 general rate case order. In the settlement agreement, the parties
agreed to utilize $10.9 million of the electric tax benefits to offset costs associated with accelerating the
depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life of those units through December 3 l,
2027 . The settlement agreement is subject to WUTC approval.
Although the parties to the settlement agreement have agreed to the acceleration of depreciation of Colstrip
FERC FORM NO.2 108.3
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Y0
04115t2019
Year/Period of Report
20181Q4
lmportant Changes During the Quarter/Year
Units 3 & 4,the settlement does not reflect any agreement with respect to the ultimate closure of Colstrip Units
3 &,4, since that decision would have to be made in conjunction with the other owners of Colstrip.
Idaho Generol Rate Cases and Other Proceedings
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 naturalgas generalrate case in2016.
The settlernent 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 naturalgas generalrate cases. New rates were effective on January 1,2018 and 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
Revenue
Increase
Base
Rate Increase
Revenue
Increase
Base
Rate IncreaseEffective Date
January 1,2018 $ 12.9 5.T/o $ 1.2 2.9/o
January 1,2019 S 4.5 l.S/o $ l.l 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.
TCJA Proceedings
On May 31,2018, the IPUC approved the all-party settlement agreement related to the income tax benefits
associated with the TCJA. Effective June 1,2018, through separate tariff schedules, until such time as these
changes can be reflected in base rates within the next general rate case, current customer rates were reduced to
reflect the reduction of the federal income tax rate to 2l percent, and the amortization of the regulatory liability
for plant-related excess deferred income taxes. This reduction reduces annual electric rates by $ I 3.7 million (or
FERC FORM NO. 2 (12-96)108.4
Name of Respondent
Avista Corporalion
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
041't512019
Year/Period of Report
2018tQ4
lmportant Changes During the Quarter/Year
5.3 percent reduction to base rates) and natural gas rates by $2.6 million (or 6.1 percent reduction to base rates).
In February 2019, we filed an all-party settlement agreement with the IPUC related to the electric tax benefits
that were set aside for Colstrip in the 201 7 general rate case order. In the settlement agreement, the parties
agreed to utilize approximately $6.4 million of the electric tax benefits to offset costs associated with
accelerating the depreciation of Colstrip Units 3 & 4, to reflect a remaining useful life of those units through
December 31,2027. The remaining tax benefits of approximately $5.8 million will be returned to customers
through a temporary rate reduction over a period of one year beginning on April I ,2019. The tax benefits being
utilized are related to non-plant excess deferred income taxes, and the customer refund liability that was
established in 2018 related to the change in federal income tax expense for the period January 1,2018 to May
31,2018. The settlement agreement is subject to IPUC approval.
Oregon General Rote Coses and Other Proceedings
2016 General Rate Case
In September 2017, the Oregon Public Utilities Commission (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.
TCJA Proceedings
In February 2019, the OPUC approved the deferral amount of $3.8 million related to 2018 income tax beneflts
associated with the TCJA. The 2018 deferred benefits are expected to be returned to customers through a
temporary rate reduction over a period of one year beginning March 1,2019. We requested to continue the
deferral of the TCJA benefits during 2019 for later return to customers, until such time as these changes can be
reflected in base rates.
12. On November 21,2017, the Board of Directors of Avista Corp. named Dennis Vermillion as President of
Avista Corp effective January 1,2018. 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.
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)
04t15t2019
Year/Period of Report
2018tQ4
lmportant Changes During the Quarter/Year
Scott Morris, who was President of Avista Corp., will remain 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.
Mr. Vermillion stood for election to the board at the annual meeting of shareholders on May 12,2018, and was
elected. As an employee director, Mr. Vermillion will receive no additional compensation, consistent with the
other employee directors of Avista Corp., as disclosed in Avista Corp.'s definitive Proxy Statement dated March
31,2017 .
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.
13. Proprietary capital is not less than 30 percent.
FERC FORM NO. 2 (12-96)108.6
Name of Respondent
Avista Corporation
This
(1)
(2')
Reoort
lxlAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Comparative Balance Sheet (Assets and Other Debits)
Line
No
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
Quarter^fear Balance
(c)
Prior Year
End Balance
12t31
(d)
1 UTILITY PLANT
2 Utility Plant (1 01-1 06, 1 14)200-201 6,004,750,680 5,650,433,358
3 Construction Work in Progress (107)200-201 1 56,563,570 151 ,271 ,170
4 TOTAL Utility Plant (Total of lines 2 and 3)200-201 6,161 ,314,250 5,801 ,704,528
5 (Less) Accum. Provision for Depr., Amort., Depl. (108, 1 1 1 , 1 15)1,991,240,383 1,876.263,672
6 Net Utility Plant (Total of line 4 less 5)4,',t70,o73,867 3,925,440,856
7 Nuclear Fuel ('t20.1 lhru 120.4, and 120.6)0
I (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)4,170,073,867 3,925,440,856
11 Utility Plant Adjustments (116)122 0 0
12 Gas Stored-Base Gas (1 '17.1)6,992,076 6,992,076
13 System Balancing Gas (1 17.2)220 0 0
14 Gas Stored in Reservoirs and Pipelines-Noncurrent (117.3)220 0 0
15 Gas Owed to System Gas (117.4)220 0 0
16 OTHER PROPERTY AND INVESTMENTS
17 Nonutility Property (121)4.474,923 3,010,81 1
18 (Less) Accum. Provision for Depreciation and Amortization (122)140,360 104,487
19 lnvestments in Associated Companies (123)222-223 11,547,000 11,547,000
20 lnvestments in Subsidiary Companies (123.1)'t53,523,686 161 ,1 31 ,682
21 (For Cost of Account 1 23.1 See Footnote P age 224, line 40)
22 Noncurrent Portion of Allowances 0 0
23 Other lnvestments (124)222-223 1,711,072 4,288,775
24 Sinking Funds (125)0 0
25 Depreciation Fund (126)0 0
26 Amortization Fund - Federal (127)0 0
27 Other Special Funds (128)18,794,801 16,722,286
28 Long-Term Portion of Derivative Assets ('175)4,842,426 2,575,446
29 Long-Term Portion of Derivative Assets - Hedges (176)0 0
30 TOTAL Other Property and lnvestments (Total of lines 17-20,22-29')194,753,548 199,171,5'13
31 CURRENT AND ACCRUED ASSETS
32 Cash (131)4,737,049 2,9',t2,504
33 Special Deposits (1 32-1 34)26,809,063 12,284,827
34 Working Funds (135)709,204 1 , 149,696
35 Temporary Cash lnvestments (136)136,712 50,305
36 Notes Receivable (141)0 0
37 Customer Accounts Receivable (142)157,729,381 174,683,07',l
38 Other Accounts Receivable (143)4,618,679 5,614,31 1
39 (Less) Accum. Provision for Uncollectible Accounts - Credit (144)5,188,090 5,170,026
40 Notes Receivable from Associated Companies (145)31 ,659,207 '1 1 ,659,1 9'1
41 Accounts Receivable from Associated Companies (146)154,548 313,553
42 Fuel Stock (151)3,982,104 3,958,296
43 0 0
FERC FORM NO.2 (REV 06-04)Page 110
0
220
224-225
222-223
Fuel Stock Expenses Undistributed (152)
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]nn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Comparative Balance Sheet (Assets and Other Debits)(continued)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year End of
QuarterA/ear 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)43,166,166 38,180,423
46 Merchandise (155)0 0
47 Other Materials and Supplies (156)0 0
48 Nuclear Materials Held for Sale (157)0 0
49 Allowances (158.1 and 158.2)0 0
50 (Less) Noncurrent Portion of Allowances 0 0
51 Stores Expense Undistributed (163)0 0
52 Gas Stored Underground-Current (164.1)220 1 1 ,609,'1 84 1',t,738,607
53 Liquefied Natural Gas Stored and Held for Processing (164.2 thru '164.3)220 0 0
54 Prepayments (165)230 20,211,526 19,333,312
55 Advances for Gas ('166 thru 167)0 0
56 lnterest and Dividends Receivable (171)166,4'18 172,493
57 Rents Receivable (172)2,516,807 2,101,931
58 Accrued Utility Revenues (173)0 0
(o Miscellaneous Current and Accrued Assets (174)398,1 32 138,513
60 Derivative lnstrument Assets (175)10,394,941 6,197,881
61 (Less) Long-Term Portion of Derivative lnstrumenl Assets (175)4,842,426 2,575,446
62 Derivative lnstrument Assets - Hedges (176)0 0
63 (Less) Long-Term Portion of Derivative lnstrument Assests - Hedges (1 76)0 0
64 TOTAL Current and Accrued Assets (Total of lines 32 thru 63)308,968,605 282,743,442
65 DEFERRED DEBITS
66 Unamortized Debt Expense (181)13,923,600 10,945,098
67 Extraordinary Property Losses (182.1)230 0 0
68 Unrecovered Plant and Regulatory Study Costs (182.2)230 0 0
69 Other Regulatory Assets ('182.3)232 598,724,109 621,273,693
70 Preliminary Survey and lnvestigation Charges (Electricx183)2,313 195,568
71 Preliminary Survey and lnvestigation Charges (Gas)(183.1 and 183.2)0
72 Clearing Accounts (1 84)28,530 69,497
73 0 0
74 Miscellaneous Deferred Debits (1 86)233 30,900,539 1 5,796,1 70
75 Deferred Losses from Disposition of Utility Plant (187)0 0
76 Research, Development, and Demonstration Expend. (188)0 0
77 Unamortized Loss on Reacquired Debt (189)10,255,271 11,879,551
78 Accumulated Deferred lncome Taxes (190)234-235 187,450,520 189,216,780
79 Unrecovered Purchased Gas Costs (191)( 40,713,156)( 37,474,157)
80 TOTAL Deferred Debits (Total of lines 66 thru 79)800.571.726 81 1,902,499
81 TOTAL Assets and Other Debits (Total of lines 10-15,30,64,and 80)5,481,359,822 5,226,250,386
FERC FORM NO.2 (REV 06-04)Page 1'11
299
Temporary Facilities (1 85)
Name of Respondent
Avista Corporation
This Reoort ls:(1) finn Original(2) l-lA Resubmission
Date of ReDort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Comparative Balance Sheet (Liabilities and Other Credits)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
QuarterA/ear
Balance
Prior Year
End Balance
't2131
(d)
1 PROPRIETARY CAPITAL
2 Common Stock lssued (20'1)250-251 1 ,110,87 1 ,767 1,109,643,921
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 Capilal (208-211)253 ( 10,696,71 1 )( 10,696,71 1)
8 lnstallments Received on Capital Stock (212)252 0 0
I (Less) Discount on Capital Stock (213)254 0 0
10 (Less) Capital Stock Expense (214)254 ( 36,316,031)( u,5o0,271)
1',!Retained Earnings (215, 215.1, 216)1 18-1 19 660,984,141 604,413,488
't2 Unappropriated Undistributed Subsidiary Earnings (216.1)'1 18-1 19 ( 16,389,107)56,'t39
13 (Less) Reacquired Capital Stock (217)0 0
14 Accumulated Other Comprehensive lncome (2'19)117 ( 7,866,070)( 8,089,542)
15 TOTAL Proprietary Capital (Total of lines 2 thru 't4)'t,773,220,O51 't,729,827,566
16 LONG TERM DEBT
17 Bonds (221)256-257 1,8'14,200,000 1,71 1 ,700,000
18 (Less) Reacquired Bonds (222)256-257 83,700,000 83,700,000
19 Advances from Associated Companies (223)256-257 51,547,000 51,547,000
20 Other Long-Term Debt (224)256-257 0 0
21 Unamortized Premium on Long-Term Debt (225)258-259 't51.0't7 159,900
22 (Less) Unamortized Discount on Long-Term DebtDr (226)258-259 1,032,761 786,481
23 (Less) Current Portion of Long-Term Debt 0 0
24 TOTAL Long-Term Debt (Total of lines 17 thru 23)1 ,781 ,165,256 1,678,920,419
25 OTHER NONCURRENT LIABIL]TIES
26 Obligations Under Capital Leases-Noncurrcnl (227)0 0
27 0 0
28 Accumulated Provision for lnjuries and Damages (228.2)245,000 245,000
29 Accumulated Provision for Pensions and Benefits (228.3)222,536,776 203,565,903
30 Accumulated Miscellaneous Operating Provisions (228.4)0 0
31 Accumulated Provision for Rate Refunds (229)'t 0,178,645 4,906,78'1
FERC FORM NO.2 (REV 06-04)Page 112
250-251
Accumulated Provision for Property lnsurance (228.1)
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort
l-XlAn
ls:
Original
f-lA Resubmission
Date of Reoort(Mo, Da, Yi)
04115t20't9
Year/Period of Report
End of 2018/Q4
Comparative Balance Sheet (Liabilities and Other Credits)(continued)
Line
No.
Title of Account
(a)
Reference
Page Number
(b)
Current Year
End of
QuarterAr'ear
Balance
Prior Year
End Balance
12t31
(d)
32 Long-Term Portion of Derivative lnstrument Liabilities '10,300,047 10,456,971
33 Long-Term Portion of Derivative lnstrument Liabilities - Hedges 0 0
34 Asset Retirement Obligations (230)18,265,985 17,481,829
35 TOTAL Other Noncurrent Liabilities (Total of lines 26 thru 34)261,526,453 236,656,484
36 CURRENT AND ACCRUED LIABILITIES
37 Current Portion of Long-Term Debt n 0
38 Notes Payable (231)190,000,000 105,000,000
39 Accounts Payable (232)103,484,597 100,959,825
40 Notes Payable to Associated Companies (233)0 0
4',|Accounts Payable to Associated Companies (234)7,329 22,197
42 Customer Deposits (235)4,783,254 4,431 ,306
43 Taxes Accrued (236)262-263 39,835,469 36,514,038
44 lnterest Accrued (237)15,509,062 15,1 59,301
Dividends Declared (238)0 0
46 0 0
47 Matured lnterest (240)0 0
48 Tax Collections Payable (241)79.542 1,533,1 87
49 Miscellaneous Current and Accrued Liabilities (242)268 56,358,807 59,386,964
50 Obligations Under Capital Leases-Current (243)0 2,402,917
5'l Derivative lnstrument Liabilities (244)14,252,910 53,752,463
52 (Less) Long-Term Portion of Derivative lnstrument Liabilities 10,300,047 '10,456,97'l
53 Derivative lnstrument Liabilities - Hedges (245)0 0
54 (Less) Long-Term Portion of Derivative lnstrument Liabilities - Hedges 0 0
55 TOTAL Current and Accrued Liabilities (Total of lines 37 thru 54)414,010,923 368,705,227
56 DEFERREO CREDITS
57 Customer Advances for Construction (252)2,142,205 1 ,584,319
58 Accumulated Deferred Investment Tax Credits (255)29,725,443 30,265,611
59 Deferred Gains from Disposition of Utility Plant (256)0 0
60 Other Deferred Credits (253)269 22,466,066 28,032,',t43
61 Other Regulatory Liabilities (254)278 527,440,814 50'.1,143,487
62 Unamortized Gain on Reacquired Debt (257)260 1,577,896 1,707,433
63 Accumulated Deferred lncome Taxes - Accelerated Amortization (281)0 0
64 Accumulated Deferred lncome Taxes - Other Property (282)497,875,564 481,835,128
65 Accumulated Deferred lncome Taxes - Other (283)170,209,'tsl 167,572,569
66 TOTAL Deferred Credits (Total of lines 57 thru 65)1,251,437,139 1,212,140,690
tl TOTAL Liabilities and Other Credits (Total of lines 15,24,35,55,and 66)5,481,359,822 5,226,250,386
FERC FORM NO.2 (REV 06-04)Page 113
45
Matured Long-Term Debt (239)
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Reoort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Statement of lncome
Quarterly
1. Enter in column (d) the balance for the reporting qua(er 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 quarler.
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
5. Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to a utility department.
Spread the amount(s) over lines 2 thru 26 as appropriate. lnclude these amounts in columns (c) and (d) totals.
7. Report amounts in account 414, Other Utility Operating lncome, in the same manner as accounts 412 and 413 above.
8. Report data for lines 8, 10 and 11 for Natural Gas companies using accounts 404.'1, 404.2, 404.3, 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 gaoss revenues or costs to which the
respect to power or gas purchases.
received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accounts.
'12. lf any notes appearing in the report to stokholders are applicable to the Statement of lncome, such notes may be included at page I22.
'l 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 yeaCs/quarter's figures are different from that reported in prior reports.
1 5. lf the columns are insufficient for reporting additional utility departments, supply the appropriate account tifes report the information in a footnote to this schedule.
Tite ofAccount
Line (a)
No.
Reference
Page
Number
{b)
Total
Cunent Year to
Date Balance
lor QuaderfYear
(c)
Total
Prior Year to Date
Balance
for Quarter/Year
(d)
Current Three
Months Ended
Quarterly Only
No Fourth Quarter
(e)
Prior Thre
l\ronths Ended
Quarterly Only
No Fourth Quarter
(f)
1 UTILITY OPERATING INCOME
2 3as Operating Revenues (400)30G301 1,41 5,1 05,861 1,46/,122,332 0 0
3 f,perating Expenses
4 Operation Expnses (401)317-325 804,773,049 820,637J2s 0 0
5 Maintenance Expenses (402)317-325 63,628,892 71,114,8',t7 0 0
6 Depreciation Expense (403)33&338 146,501,21 6 137,234,03t1 0 0
7 Depreciation Expense tor Asset Retirement Costs (403.1 )33G338 268,929 263,254 0 0
8 Amorlizalion and Deplelion of Utility Plant (404405)33&338 34,897,443 30,487,581 0 0
I Amoffzation ol Utility Plant Acu. Adjusrnent (406)33G338 99,047 99,047 0 0
10 Amo( of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.1)0 0 0 0
11 Amortizalion ol C,onversion Expenses (407.2)0 0 0 0
12 Regulatory Debits (407.3)4,692,818 4,471,02s 0 0
13 (Less) Regulatory Credits (407.4)'1't,255,06'1 8,041,294 0 0
14 Taxes Other than lncome Taxes (408.'1)262-263 105,935,344 103,2U,021 0 0
15 lncome Taxes-Federal (409.1 )262-263 21,463,627 22,710,789 0 0
16 lncome Taxes-Other (409.1 )262-263 536,050 540,802 0 0
17 Provision of Deferred lncome Taxes (410.1)2U-235 9,911,224 61,887,452 0 0
18 (Less) Provision for Delened lncome Taxes-Credit (41 1.1)2U-235 836,768 1,719,631 0 0
19 lnvestrnent Tax Credit Adjusfnent-Net (41 1.4)( 540,168)( 401,676)0 0
20 (Less) Gains from Disposition of Utility Plant (41 1.6)0 0 0 0
21 Losses from Disposition of Utility Plant (41 1.4 0 0 0 0
22 (Less) Gains fmm Disposition ol Allowances (411.8)0 0 0 0
23 Losses from Dispositon ol Allowances (41 1.9)0 0 0 0
24 Accretion Expense (41'1.10)850,233 795,991 0 0
25 TOTAL Utility Operating Expenses (Total of lines 4 thru 24)1,1 80,931,875 1,243,313,U1 0 0
26 Net Utility Opelating lncome (Total of lines 2 less 25) (Carry fonrrrard to page 1 16,
ine27)234,173,989 220,808,991 0 0
FERC FORM NO.2 (REV 06-04)Page 114
F
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lI.lAn Original
l-l A Resubmission
Date of ReDort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
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)
(i)
Gas Utility
Previous
Year to Date
(in dollars)
0)
Other Utility
Current
Year to Date
(in dollars)
(k)
Other Utility
Previous
Year to Date
(in dollars)
o
1
2 985,218,513 989,932,2s8 429,887,3s1 474,190,074 0 0
3
4 5 16,698,898 496,458,475 288,074,151 324,178,650 0 0
5 49,735,303 56,154,'163 1 3,893,589 14,960,654 0 0
b 112,612,198 1 06,657,1 39 33,889,0'18 30,576,899 0 0
7 268,929 263,254 0 0 0 0
B 26,3'15,338 22,965,702 8,582,1 05 7 ,521,879 0 U
I 99,047 99,047 0 0 0 0
10 0 0 0 0 0 0
11 0 0 0 0 0 0
12 3,843,45 1 4,261,71s 849,367 209,31 0 0 0
'13 9,688,900 7,669,732 1 ,566,1 61 371,562 0 0
14 80,790,063 77,630,348 25,145,281 25,603,673 0 0
't5 18,71'1,316 12,447,375 2,752,311 10,263,414 0 0
16 433,688 ( 14,769)102.362 555,57'l 0 0
17 5,726,144 46,542,613 4,191,080 1 5,344,839 0 0
18 953,010 '1,507,061 ( 116,242),212,s70 0 0
19 ( 520,104)( 381,612)( 20,064)( 20,064)0 0
20 0 0 0 0 0 0
21 0 0 0 0 0 il
22 0 0 0 0 0 0
23 0 0 0 0 0 0
24 850,233 795,991 0 0 0 0
25 804,922,594 814,702,648 376,009,281 428,61 0,693 0 0
26 1 80,295,91 I 17s,229,610 53,878,070 45,579,38 1 0 0
FERC FORM NO.2 (REV 06-04)Page '115
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Statement of lncome(continued)
Line
No
Tite of Account Relerence
Page
Number
(a)(b)
Total
Cunent Year to
Date Balance
for Quarter/Year
(c)
Total
Prior Year to Date
Balance
lor Ouarterffear
(d)
Current Three
Months Ended
Quarterly Only
No Fourfi Quarter
(e)
Prior Three
Months Ended
ouarlerly Only
No Fourh oua(er
(0
27 Net Utility Operating lncome (Canied foMard lrom page 1 14)234,1 73,989 220,808,991 0 0
28 OTHER INCOME AND DEDUCTIONS
29 Jther lncome
30 Nonutility Operating lncome
31 Revenues lorm Merchandising, Jobbing and Conkact Work (415)0 0 0 0
32 (Less) Costs and Expense of Merchandising, Job & Confact Work (4'1 6)0 0 0 0
33 Revenues from Nonutility 0perations (417)0 0 0 0
34 (Less) Expenses of Nonutility Operations (417.1)6,931,684 9,648,685 0 0
35 Nonoperating Rental lncome (418)( 31,262)( 24,801)0 0
36 Equity in Earnings ofSubsidiary Companies (4'18.1)119 2,392,004 2,517,761 0 0
37 lnterest and Dividend lncome (419)3,808,319 4,001,578 0 0
38 Allowance for other Funds Used During Construction (419.1)4,281,829 6,441,370 0 0
39 Miscellaneous Nonoperating lncome (421)0 0 0 0
40 Gain on Disposition of Property (421.1 )0 19,733 0 0
41 TOTAL Other lncome (Total ol lines 31 thru 40)3,519,206 3,306,956 0 0
42 Other lncome Deductions
43 Loss on Disposition ol Property (421.2)13,251 ( 17,500)0 0
44 iiliscellaneous Amortization (425)0 0 0 0
45 Donations (426.'1)340 3,563,420 3,205,496 0 0
46 Life lnsurance (426,2)2,793,863 2,967,371 0 0
47 Penalties (426.3)2,0s3 18,562 0 0
48 Expenditures lor Certain Civic, Political and Related Activities (426.4)2,073,702 1,663,123 0 0
49 Other Deductions (426.5)5,U2,674 17 ,741,930 0 0
50 TOTAL Other lncome Deductions ffotal ol lines 43 thru 49)340 13,788,963 25,578,982 0 0
51 Taxes Applic. to Other lncome and Deductions
52 Taxes other than lncome Taxes (408.2)262-263 no1 779 1 75,689 0 0
53 lncome Taxes-Federal (409.2)262-m3 ( 5,085,932)( 12,s36,s84)0 0
54 lncome Taxes-Other (409.2)tol-to5 ( 220,461)( 738,539)0 0
55 Provision lor Deferred lncome Taxes (410.2)2U-23s 34,584 7,571,606 0 0
56 (Less) Provision for Defened lncome Taxes-Credit (41 1.2)23/'-235 231,94e 440,920 0 0
57 lnvestment Tax Credit Adjustrnents-Net (41 1.5)C 0 0 0
58 (Less) lnvestment Tax Credits (420)C 0 0 0
59 TOTAL Taxes on Other lncome and Deductions (Total ol lines 52-58)( 5,210,477)( 5,968,748)0 0
60 Net Other lncome and Deductions (Total of lines 41, 50, 59)( 5,059,280)( 16,303,278)0 0
61 INTEREST CHARGES
62 lnterest on Long-Term Debt (427)87,093,842 82,342,603 0 0
63 Amortization of Debt Disc. and Expense (428)258-259 321,207 321,206 0 0
64 Amortization of Loss on Reacquired Debt (428,'1)2,582,801 2,854,749 0 0
65 (Less) Amoffzation of Premium on DebtCredit (429)254259 8,883 8,883 0 0
66 (Less) Amortization ol Gain on Reacquired Debt-Credit (429.1)t 0 0 0
67 lnterest on Debt to Associaled Companies (430)340 t 677,027 0 0
6B other lnterest Expense (431)340 6,749,1',t7 5,657,334 0 0
69 (Less) Allowance for Bonowed Funds Used During Construction-Credit (432)4,052,495 3,2U,457 0 0
70 Net lnterest Charges (Total of lines 62 thru 69)92,685,58!88,589,579 0 0
71 lncome Before Extraordinary ltems (Total of lines 27,60 and 70)136,429,12C 1 I 5,91 6,1 34 0 0
72 EXTRAORDINARY ITEMS
73 Extraordinary lncome (434)(0 0 0
74 (Less) Extraordinary Deductions (435)(0 0 0
75 Net Extraordinary ltems (Total of line 73 less line 74)(0 0 0
76 lncome Tares-Federal and Other (409.3)262-263 (0 0 0
77 Extraordinary ltems after Taxes (Total of line 75 less line 76)(0 0 0
78 Net lncome (Total of lines 71 and 77)136,4nJ20 1'1s,916,134 0 0
FERC FORM NO.2 (REV 06-04)Page 116
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
(1)
(2)
An Original
A Resubmission
(Mo, Da,
04t',t512019
Year/Period of Report
End of 20181Q4
Statement of Accumulated Comprehensive lncome and Hedging Aqtivltieg
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 (0 and (g) the amounts of other categories of other cash flow hedges.
3. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote.
Line
No.Item
(a)
Unrealized Gains
and Losses on
available-for-sale
securities
(b)
Minimum Pension
liabililty Adjustment
(net amount)
(c)
Foreign Cunency
Hedges
(d)
Other
Adjustments
(e)
1 Balance of Account 21 9 at Beginning of Preceding
Year ( 7,567,509)
2 Preceding Quarter/Year to Date Reclassifications
from Account 219 to Net lnmme
3 Preceding Quarterffear to Date Changes in Fair
Value ( 522,033)
4 Total (lines 2 and 3)( 522,033)
4 Balance of Account 219 at End of Preceding
Quarter/Year ( 8,08e,542)
6 Balance of Account 21 9 at Beginning of Current Year ( 8,089,542)
7 Cunent Ouarter/Year to Date Redassifications from
Account 219 to Net lncome
o Cunent Quarterffear to Date Changes in Fair Value 1,965,835
I Total (lines 7 and 8)223,472
10 Balance of Account 21 9 at End of Cunent
Quarterffear ( 7,866,070)
FERC FORM NO. 2 (NEW 06-02)Page '117
I( 1,742,363)
Name of Respondent
Avista Corporation
This(1)
(2)
Reoort ls:
fiRn Original
[-lA Resubmission
Date of Report(Mo, Da, Y0
04t15t2019
Year/Period of Report
End of 20181Q4
Statement of Accumulated Comprehensive !ncome and Hedqinq Activities(continued)
Line
No.
Other Cash Flow Hedges
lnterest Rate Swaps
(0
Other Cash Flow Hedges
lnsert Footnote at Line 1
to speciry categoryl
(s)
Totals for each
category of
items recorded in
Account 219
(h)
Net lncome
(Canied Foruvard
from Page 1 16,
Line 78)
(i)
Total
Comprehensive
lncome
(j)
1 ( 7,567,509)
2
3 ( 522,033)
4 ( 522,033)'l 1 5,916,1 34 1 1 5,394,101
5 ( 8,089,542)
6 ( 8,08e,542)
7 ( 1,742,363\
8 1,965,835
I 223,472 136,429,120 136,652,592
10 ( 7,866,070)
FERC FORM NO. 2 (NEW 06-02)Page 1'l7a
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t1512019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
117 Line No.:7 Column: c
Dur ng the f rst quarter of , Account g Standards Up te No.was a optewhich resul-ted in a $1.7 million bafance sheet only reclassification from Accumulated
Other Comprehensive Loss to account 439 - Adjustments to Retained Earnings. The
reclassification was the resuft of the change in federaf income tax rates from 35 percent
Lo 27 percent. Usage of account 439 requires prior EERC approval. See Page 122 Note 2 for
further discussion of the adoption of ASU No. 20LB-02 as weff as the prior FERC approval.
FERC FORM NO. 2 (12-96)Page 552.'1
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort ls:
IIlAn Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t20't9
Year/Period of Report
End of 2018/Q4
Statement of Retained Earnings
1. Report all ctranges in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year.
affected in column (b).
3. State the 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)
Contra Primary
Acmunt Affected
(b)
Cunent Quarter
Year to Date
Balance
(c)
Previous Quarter
Year to Date
Balance
(d)
UNAPPROPRIATED RETAINED EARNINGS
1 BalanceBeginning of Period s72,281,364 558,287,446
2 Changes (ldentify by prescribed retained earnings actounts)
3 Adiustrnents to Retained Earnings (Account 439)
4 TOTAL Credits to Retained Earnings (Account 439) (footnote details)1 ,7 42,363
5 TOTAL Debits to Retained Earnings (Account439) (footnote details)
6 Balance Transfened from lnmme (Acct 433 less Acct 418.'l)1 34,037,1 1 6 '1'13,398,373
7 Appropriations of Retained Earnings (Account 436)( 5,320,848)( 8,262,625)
TOTAL Appropriations of Retained Earnings (Account 436) (footnote details)
I Dividends Declared-Prefened Stock (Account 437)
10 TOTAL Dividends Declared-Prefened Stock (Account 437) (footnote details)
11 Dividends Declared-Common Stock (Account 438)
12 TOTAL Dividends Declared-Common Stock (Account 438) (footnote details)98,046,07s 92,460,231
13 Transfers from Account 21 6.1, Unappropriated Undistributed Subsidiary Earnings 1 8,837,250 1 ,318,400
14 Balance-End ofPeriod (Total oflines'1,4,5,6,8, '10,'12, and 13)628,8s2,01 8 580,543,988
15 APPR0PRIATED RETAINED EARNINGS (Account 215)
16 TOTAL Appropriated Retained Earnings (Account 2 1 5) (footnote details)37,452,971 32,132,125
17 APPR0PRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account
'18 TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account ( 5,320,848)( 8,262,6251
19 TOTAL Appropriated Retained Earnings (Accounts 21 5, 21 5.1 ) (Total of lines 32,132,123 23,869,500
20 TOTAL Retained Earnings (Accounts 215,215.1,216) (Total oflines '14 and 1 660,984,1 41 604,413,488
21 UNAPPR0PRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Acmunt 216.1)
Report only on an Annual Basis no Quarterly
22 Balance-Beginning of Year (Debit or Credit)56,1 39 ( 1,143,2221
ZJ Equity in Earnings for Year (Credit) (Account 41 8.1 )2,392,004 2,517,761
24 (Less) Dividends Received (Debit)1 0,000,000
25 Other Changes (Explain)( 1,318,400)
26 BalanceEnd of Year ( 16,389,107)56,1 39
FERC FORM NO.2 (REV 06-04)Page '118-119
( 8,837,250
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
0411512019
Year/Period of Report
2018/o,4
FOOTNOTE DATA
118 Line c
8,000,000 of the tota amount represents a correct ono rom
the subsidiaries in prior years that was not refl-ected in the activlty of account 2L61,00
FERC FORM NO. 2 ({2-96)Page 552.1
0
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lxlAn Original
l-l A Resubmission
Date of Reoort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Statement of Cash Flows
(1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) lnclude commercial paper; and (d) ldentif,
separately such items as investments, fixed assets, intangibles, etc.
(2) lnformation about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation
between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet.
(3) Operating 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
No.
Description (See lnstructions for explanation of codes)
(a)
Current Year
to Date
Ouartern/ear
Previous Year
to Date
Quarter/Year
1 Net Cash Flow from Operating Activities
2 Net lncome (Line 78(c) on page 1 16)136,429,120 115,916,134
Noncash Charges (Credits) to lncome:
4 Depreciation and Depletion 179,217,557 165,534,842
5 Amortization of defened power and gas costs, debt expense and exchange power 17,690,809 17,357,659
6 Deferred lncome Taxes (Net)8,882,835 67,298,507
7 lnvestment Tax Credit Adjustments (Net)( 540,168)( 401,676)
I Net (lncrease) Decrease in Receivables 't7,548,393 ( 8,257,764)
o Net (lncrease) Decrease in lnventory ( 4,880,128)( 4,8s8,369)
'10 Net (lncrease) Decrease in Allowances lnventory
11 Net lncrease (Decrease) in Payables and Accrued Expenses 1,753,920 49,034,221
12 Net (lncrease) Decrease in Other Regulatory Assets 1,04'.1,677 2,355,616
'13 Net lncrease (Decrease) in Other Regulatory Liabilities 28,600,265 ( 7,591,159)
14 (Less) Allowance for Other Funds Used During Construction 6,33',t,723 6,441,370
'15 (Less) Undistributed Earnings from Subsidiary Companies 2,392,OO4 2,517,761
16 Other (footnote details):
17 Net Cash Provided by (Used in) Operating Activities
'18 (Total of Lines 2 thru 16)353,451,662 390,820,147
19
20 Cash Flows from lnvestrnent Aclivities:
21 Construction and Acquisition of Plant (induding land):
22 Gross Additions to Utility Plant (less nuclear fuel)( 420,377,970)( 406,201,555)
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 22thru 27)( 420,377,97O)( 406,201,55s)
ZY
30 Acquisition of Other Noncunent Assets (d)
3l 559,980 313,974
32 Federal and state grant payments received
21 lnvestments in and Advances to Assoc. and Subsidiary Companies ( 19,855,879)( 17,160,819)
34 Contributions and Advances fom Assoc. and Subsidiary Companies 10,000,000 2,000,000
36 Associated and Subsidiary Companies
a1 Cash paid for acquisition
20 Purchase of lnvesknent Securities (a)
39 Proceeds from Sales of lnveshnent Securities (a)
FERC FORM NO.2 (REV 06-04)Page 12O
( 23,568,891 3,391,26i
Proceeds from Disposal of Noncurrent Assets (d)
Disposition of lnvestments in (and Advances to)
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04t1512019
Year/Period of Report
End of 2018/Q4
Statement of Cash Flows (continued)
Line
No.
Description (See lnstructions for explanation of codes)
(a)
Current Year
to Date
Quarterl/ear
Previous Year
to Date
QuarterfYear
40 Loans Made or Purchased
41 Collections on Loans
42 Restric'ted cash ( 277)
43 Net (lncrease) Decrease in Receivables
44 Net (lncrease) Decrease in lnventory
45 Net (lncrease) Decrease in Allowances Held for Speculation
46 Net lncrease (Decrease) in Payables and Accrued Expenses
47 Changes in other property and investments ( 2,002,301)( 2,125,513)
48 Net Cash Provided by (Used in) lnvesting Activities
49 (Total of lines 28 thru 47)( 431,676,170)( 423,174,19O)
50
51 Cash Flows from Financing Activities:
52 Proceeds from lssuance ot
53 Long-Term Debt (b)374,621,250 90,000,000
54 Preferred Stock
55 Common Stock 1,206,734 56,380,425
56 Other (footnote details):
57 Net lncrease in Short{erm Debt (c)85,000,000
58 Other (footnote details):
59 Cash Provided by Outside Sources (Total of lines 53 thru 58)460,827,984 146,380,425
bU
61 Payments for Retirement of:
62 Long-Term Debt (b)( 274,902,9',t7)( 871,667)
63 Prefened Stock
64 Common Stock
65 Other
66 Net Decrease in Short-Term Debt (c)( 15,000,000)
67 Premium paid to repurchase long-term debt
68 Dividends on Prefened Stock
69 Dividends on Common Stock ( 98,046,075)( 92,460,231)
70 Net Cash Provided by (Used in) Financing Activities
71 (Total of lines 59 thru 69)79,694,969 33,931,144
72
aa Net lncrease (Decrease) in Cash and Cash Equivalents
74 (Total ofline 18,49 and 7'l)1,470,461 1,577 ,101
75
76 Cash and Cash Equivalents at Beginning of Period 4,112,505 2,535,404
Cash and Cash Equivalents at End of Period 5,586,966 4,1',12,505
FERC FORM NO. 2 (REV 06-04)Page 120a
{ 8,184,023)( 4,117,383
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
Power an natura gas erra S
Change in special deposits
Change in other current assets
Non-cash stock compensation
Other non-current assets and liabilitiesAllowance for doubtfuf accounts
Preliminary survey and investlgation costs
Cash paid for settlement of interest rate
swaps
Cash received from settfement of interest rate
swapsGain on safe of property and equipment
Other
5(22,393,510)
(5 ,212 ,11"6)? 2trO 2r?t I JJ t
'
JL t
25, 628,211
5,235,000
(195,867)
(77,307, B42l
Page: 120 Line No.: 16 Column: b
Power and natural gas deferrafs 316531810
Change in special deposits (3,862,626)
Change in other current assets (1-,546t5341
Non-cash stock compensation 5,366,952Other non-current assets and liabil-ities (4,'183,663)
Allowance for doubtful accounts 31 9001 000
Preliminary survey and investigation costs L93,554
Cash paid for settfement of interest rate
swaps (32, \7 4 ,169)Cash received from settlement of interest rateswaps 5 ,594 ,061Gain on safe of property and equj-pment L3,250Other '7 6,568
lschedule Page: tZO tine No.: 6S Cotumn: c
Minimum tax withholdingsfor share based compensati-on (3,551r786)
Lon -term debt issuance costs 565 591
2,4'78,520
(31 t232\(51,925)
Minimum tax withholdingsfor share based compensation
Long-term debt issuance costs
(3 , 928 ,1 28)
(4 ,255 ,295)
120 Line No.: 65 Column: b
FERC FORM NO. 2 (12-96)Page 552.1
Schedule Paqe: 120 Line No.: 16 Column: c
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1st2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
1. Provide important disclosures regarding the Statement of Retained Earnings for the Year,
and Statement of Cash Flow, or any account thereof. Classify the disclosures according to each financial statement, providing a subheading for
each statement except wtere 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 contingent assets or liabilities existing at year end, and briefly explain any action initiated by the lnternal
Revenue Service involving possible assessment of additional income taxes of material amount, or a claim for refund of income taxes of a
material amount initiated by the utility. Also, briefly explain any dividends in arrears on cumulative 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 conlributions. 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
assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year's plan or trust curtailments,
terminations, transfers, or reversions of assets. Entities that participate in multiemployer postretirement benefit plans (e.9. parent company
sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, ('t) 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. 1 and, in addition, disclose the amounts
recovered through rates to settle such obligations. ldentiry 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. Where Account 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an
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 operalions, 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.
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 rate 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 omitted.
14. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which
have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in
such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of longterm
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.
1 5. Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable
and furnish the data required by the above instructions, such notes may be included herein.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Avista Corp. (the Company) is primarily an electric and natural gas utility with certain other business ventures. Avista Corp. provides
electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern 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.
FERC FORM NO. 2/3-Q (REV 12-07)122.1
material State for each year affected the
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20181Q4
Notes to Financial Statements
Alaska Electric and Resources Company (AERC) is a wholly-owned subsidiary of Avista Corp. The primary subsidiary of AERC is
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 PIan of Merger (Merger Agreement) to become a wholly-owned
subsidiary of Hydro One Limited (Hydro One). Consummation of the acquisition was subject to a number of approvals and the
satisfaction or waiver of other specified conditions. On January 23,2019, Avista Corp. and Hydro One mutually agreed to terminate
the Merger Agreement. See Note l7 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
ofAccounts and published accounting releases, which is a comprehensive basis ofaccounting 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 ofthese
subsidiaries, as required by GAAP. The accompanying financial statements include the Company's proportionate share of utility plant
and related operations resulting frorn its interests in jointly owned plants. In addition, under the 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, (8) operating revenues and resource
costs associated with settled energy contracts that are "booked ouf'(not physically delivered) and (9) non-service portion ofpension
and other postretirement benefit costs.
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
. 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.
FERC FORM NO. 2/3-Q (REV r2-07)122.2
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Regulalion
The Company is subject to state regulation in Washington, Idaho, Montana and Oregon. The Company is also subject to federal
regulation primarily by the FERC, as well as various other federal agencies with regulatory oversight of particular aspects of its
operations.
Depreciation
For utility operations, depreciation expense is estimated by a rnethod 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 3 I :
201 8 2017 2016
Avista Corp.
Ratio of depreciation to average depreciable property 3.l7yo
The average service lives for the following broad categories of utility plant in service are (in years):
3.llYo
Avista Corp
Electric thermal/other production
Hydroelectric production
Electric transmission
Electric distribution
Natural gas distribution property
Other shorter-lived general plant
Avista Corp.
Effective AFUDC rate
4t
78
58
35
46
l0
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 Staternent of Income in the line item "other expense (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 WUTC authorized Avista Corp. to calcnlate AFUDC using its allowed rate of refllrn. Beginning in 2018, to the extent amounts
calculated using this rate exceed the AFUDC amounts calculated using the FERC fonnula, Avista Corp. capitalizes the excess as a
regulatory asset. The regulatory asset is being amortized over the average useful life of Avista Corp.'s utility plant which is
approximately 30 years.
The effective AFUDC rate was the following for the years ended December 3l:
20t 8 2017 2016
Income Taxes
7.43%7.29Yo 7.29o/o
FERC FORM NO. 2/3.Q (REV 12-07)122.3
3.12o/o
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financia! Statements
Deferred income tax assets represent future income tax deductions the Company expects to utilize in future tax returns to reduce
taxable income. Deferred income tax liabilities represent future taxable income the Company expects to recognize in future tax returns.
Deferred tax assets and liabilities arise when there are temporary differences resulting from differing treatment of items for tax and
accounting purposes. 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 frorn the beginning to the end of the period. The effect on deferred income taxes from
a change in tax rates is recognized in income in the period that includes the enactment date unless a regulatory order specifies deferral
of the effect of the change in tax rates over a longer period of time. The Cornpany 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 itern 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, as well as a
tabular presentation of all the Company's deferred tax assets and liabilities.
The Company did not incur any penalties on income tax positions in 2018 or 2017 . The Company would recognize interest accrued
related to income tax positions as interest expense and any penalties incurred as income deductions.
Stock-Bas ed Compens ation
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 Cornpany'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):
201 8 )011
Stock-based compensation expense
Income tax benefits (l)
Excess tax benefits on settled share-based ernployee payments
$5,367 $
1,127
990
7,359
2,576
2,348
( I ) For 20 I 7 income tax benefits were calculated using a 3 5 percent income tax rate; however, due to the TCJA enactment, beginning
on January 1,2018 income taxbenefits are calculated using a2l percenttax rate.
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 ofeach year ifthe service condition is met. In addition to the service condition, for restricted shares granted prior to 2018, 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 Return (TSR) awards are market-based awards and Cumulative Earnings Per Share (CEPS) awards are performance
awards. 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
FERC FORM NO. 2/s-Q (REV 12-07)'t22.4
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
dividend equivalent rights, are subject to forfeiture under certain circumstances, and are subject to rneeting 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 percentof 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 cornpensation cost for these
awards is recognized over the requisite service period, provided that the requisite service period is rendered. For TSR awards, ifthe
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 rnarket metric was not met. For CEPS
awards, at the end of the three-year service period, if the internal perfonnance metric of cumulative earnings per share is not met, all
compensation cost for these awards is reversed as these awards are not considered vested.
The fair value of each TSR award is estimated on the date of grant using a statistical model that incorporates the probability of meeting
the market targets based on historical returns relative to a peer group. The estimated fair value of the equity component of CEPS
awards was estimated on the date of grant as the share price of Avista Corp. common stock on the date of grant, less the net present
value of the estimated dividends over the three-year period.
The following table summarizes the number of grants, vested and unvested shares, earned shares (based on market metrics), and other
pertinent infonnation related to the Company's stock compensation awards for the years ended December 3l:
201 8 2017
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 eamed based on market metrics
Unvested CEPS shares at end ofyear
Unrecognized compensation expense (in thousands)
$
$
$
40,66t
(53,352)
91,998
1,964 $
57,746
(s7,473)
106,05 3
I,853
r 14,390
(107,649)
158,262
218,507
2,849
80,724
(107,342\
187,r72
3,706 $
40,329
(53,699)
30, I 02
93,579
1,260 $
57,223
(53,862)
41,502
r 08,58 r
1,856
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 perfonnance 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
FERC FORM NO. 2/3-O (REV {2-07)122.5
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
0411512019
Year/Period of Report
2018tQ4
Notes to Financia! Statements
December 31, 2018 and2017, the Company had recognized cumulative compensation expense and a liability of $0.3 million and $1.5
rnillion, respectively, related to the dividend component on the outstanding and unvested share grants.
Cosh 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.
Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable. The
Company determines the allowance for utility and other customer accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues. Additionally, the Company establishes specific allowances for certain individual
accounts.Utility Plant in Semice
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 Obligotions (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 overthe 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 fiom 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 cornpleted its annual evaluation of goodwill for
potential impairment as of November 30, 2018 and determined that goodwill was not impaired at that time. There were no events or
circumstances that changed between November 30, 20 I 8 and December 3 I , 20 l8 that would more likely than not reduce the fair
values of the reporting units below their carrying amounts. 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 tkough the investment in subsidiary
companies on the FERC balance sheets (dollars in thousands):
FERC FORM NO.2/3.Q 1 122.6
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
AEL&P Other
Accumulated
Impairment
Losses Total
Balance as of Decemb er 31 . 2017 and 20 I 8 $ s2,426 $ 12,e7e $ (7,733) $ s7,672
Accurnulated 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 Cornmission (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 associated with energy colnmodity derivative instruments have been
concluded to be probable ofrecovery through future rates.
Substantially all forward contracts to purchase or sell power and natural gas are recorded as derivative assets or liabilities at estirnated
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 detennined 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 incorne statement impact. The interest rate swap
derivatives are risk management tools similar to energy commodity derivatives. Upon settlement of interest rate swap derivatives, the
regulatory asset or liability is amortized as a component of interest expense over the term of the associated debt. The Company records
an offset of interest rate swap derivative assets and liabilities with regulatory assets and liabilities, based on the prior practice of the
commissions to provide recovery through the ratemaking process.
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 Measurements
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 statelnents 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
FERC FORM NO. 2/3.Q (REV I2.07)122.7
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
in view of demand for the regulated services and the level of competition, it is reasonable to assume that rates can be
charged to and collected from customers at levels that will recover costs.
Regulatory accounting practices require that certain costs and/or obligations (such as incurred power and natural gas costs not
currently included in rates, but expected to be recovered or refunded in the future), are reflected as deferred charges or credits on the
Balance Sheets. These costs and/or obligations are not reflected in the Statements of Income until the period during which matching
revenues are recognized. The Company also has decoupling revenue deferrals. 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 certain limitations, and a regulatory asseVliability is established which will be surcharged or rebated to customers in
future periods. GAAP requires that for any altemative regulatory revenue program, like decoupling, the revenue must be expected to
be collected from customers within 24 months of the deferral to qualifi for recognition in the current period Statement of Income. Any
amounts included in the Company's decoupling program that are not expected to be collected from customers within 24 months are not
recorded in the financial statements until the period in which revenue recognition criteria are met. This could ultimately result in
decoupling revenue 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 of its regulated operations, the Company could be:
. 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 Reocquired Debt
For the Company's Washington regulatory jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions, premiums
or discounts paid to repurchase debt are amortized over the remaining life ofthe original debt that was repurchased or, ifnew debt is
issued in connection with the repurchase, these amounts are amortized over the life of the new debt. In the Company's other regulatory
jurisdictions, premiums or discounts paid to repurchase debt prior to 2007 are being amortized over the average remaining maturity of
outstanding debt when no new debt was issued in connection with the debt repurchase. The premiums and discounts costs are
recovered or returned to customers through retail rates as a component ofinterest expense.
Appropriated Retain ed 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 ofretum 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 ofreturn on an annual basis, usually during the second quarter.
TheappropriatedretainedearningsamountsincludedinretainedeamingswereasfollowsasofDecember3l (dollarsinthousands):
201 8 2017
a
Appropriated retained earnings $ 37,453 S 32,132
FERC FORM NO. 2/3-Q (REV 12-07)'t22.8
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04t1512019
Year/Period of Report
20181Q4
Notes to Financial Statements
Operating Leoses
The Company has multiple lease arrangements involving various assets, with minimum terms ranging from I to 45 years. The
following table details future minimum lease payments under these agreements (dollars in thousands):
2019 2020 2021 2022 2023 Thereafter Total
AvistaCorp.(l) $ 4,504 $ 4,394 $ 4,369 $ 4,292 $ 4,290 $ 98,962 $ l20,8ll
( I ) The minimum lease payments for Avista Corp. are primarily related to a lease of the Montana riverbed for the Company's
hydroelectric facilities on the Clark Fork River. These payments were disclosed as a generating facility contractual commitment at
the Energy Purchase Contracts footnote in prior years. These payments are included as operating expenses for the Company's
regulated operations and are recovered through base retail rates.
See Note 2 for discussion of the new lease standard that the Company adopted on January 1,2019.
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 3 I (dollars in thousands):
2017 2016
Avista Capital
AERC
Total equity in earnings of subsidiary companies
s (5,660) $
8,052
(6,942)
9,460
$ 2.392 $ 2,518
Subsequent Events
Management has evaluated the impact of events occurring after Decemb er 31 ,2018 up to February 19, 2019, 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 incured 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 3 l, 201 8, 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.
NOTE 2. NEW ACCOUNTING STANDARDS
ASU No. 20 I 4-09, "Revenue from Contracts with Customers (Topic 606) "
On January I, 201 8, the Company adopted Accounting Standards Update (ASU) No. 2014-09, which outlines a single comprehensive
model for entities to use in accounting for revenue arising frorn contracts with customers and supersedes most current revenue
recognition guidance, including industry-specific guidance.
FERC FORM NO. 2/3-Q (REV 12-07)122.9
The Company elected to use a modified retrospective method of adoption, which required a cumulative adjustment to opening retained
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
earnings (if any were identified), as opposed to a full retrospective application. The Company did not identify any adjustments required
to opening retained earnings related to the adoption ofthe new revenue standard. The Company applied the standards only to contracts
that were not completed as of the implementation date. The Company did not apply the new guidance to contracts that were completed
with all revenue recognized prior to the implementation date. In addition, total operating revenues on the Statements of Income in
years prior to 2018 would not have changed if the Company had elected to apply the full retrospective method of adoption.
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 does not expect any significant change in operating revenues or
net income going forward as a result of the adoption of this standard.
The only changes in revenue that resulted from the adoption of this ASU were related to the tirning of when revenue from
self-generated RECs is recognized.
Under ASU No. 20 l4-09, revenue associated with the sale of RECs is recognized at the tirne of generation and sale of the credits as
opposed to when the RECs are certified in the Westem Renewable Energy Generation Inforrnation System, which generally occurs
during a period subsequent to the sale. This represents a change from the Company's prior practice, which was to defer revenue
recognition until the time of certification. Revenue associated with the sale of RECs is not malerial to the financial statements and
almost all of the Cornpany's REC revenue is deferred for future rebate to retail customers. As such, the change in the timing of revenue
recognition does not have a material impact on net income.
See Note 3 for the Company's complete revellue disclosures.
ASU No.20l6-02 "Leases (Topic 842)"
In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02. This ASU introduces a new lessee
model that requires rnost 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 deterrnining 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 No. 2016-02, upon adoption, the effects of this standard must be applied using
a modified retrospective approach to the earliest period presented. The modified retrospective approach includes a number of optional
practical expedients that entities rnay elect to apply. In July 2018, the FASB issued ASU No. 20 l8- I I which provides a practical
expedient that allows companies to use an optional transition method. Under the optional transition method, a cumulative adjustment to
retained earnings during the period ofadoption is recorded and prior periods would not require restatement.
Upon adoption, the Cornpany expects to elect a package of practical expedients that will allow it to not reassess whether any expired or
existing contract is a lease or contains a lease, the lease classification ofany expired or existing leases, and the initial direct costs for
any existing leases. The Company also expects to elect practical expedients associated with hindsight, historical easements, and the
optional transition method.
Adoption of the standard will impact the Cornpany's Balance Sheet through recognition of right-of-use assets and lease liabilities for
the Company's operating leases. As of December 31, 2018, the Company estimates that it will record a right-of-use asset and lease
liability of between $65.0 million and $75.0 million.
AS(/ No. 2017-07 "Compensation-Retirement Benefits (Topic 7 I 5): Improving the Presentation of Net Periodic Pension Cost and Nel
P e r iodic P ostre tire me nt Be nefit C ost "
FERC FORM NO. 2/3.Q (REV T2-07)122.10
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
On January l, 2018, the Company adopted ASU No. 2017-07, which amended the income statement presentation of the components of
net period benefit cost for an entity's defined benefit pension and other postretirement plans. Under previous GAAP, net benefit cost
consisted ofseveral components that reflected different aspects ofan employer's financial arrangements as well as the cost ofbenefits
earned by employees. These components were aggregated and reported net in the financial statements. ASU No. 2017-07 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 prior practice, under which entities capitalized the aggregate net benefit cost to utility plant when applicable, in
accordance with FERC accounting guidance. Avista Corp. is a rate-regulated entity and all components of net benefit cost are cunently
recovered from customers as a colnponent 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 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.
The adoption of this ASU did not impact FERC regulatory reporting as the Company made an optional election to continue accounting
for pension costs under the previous method for regulatory reporting.
ASU No. 2018-02 "lncome Statement-ReportingComprehensive Income (Topic 220): Reclassification of CertainTax Effeclsfrom
,4c cumulate d Ot he r C ompre he ns ive I nc ome "
In February 2018, the FASB issued ASU No. 2018-02, which amended the guidance for reporting comprehensive income. This ASU
allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the
enactment of the TCJA in December 2017. This ASU is effective for periods beginning after December 15, 2018 and early adoption is
permitted. Upon adoption, the requirements of this 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 early adopted this standard effective January 1,2018 and elected to apply the guidance during the period ofadoption rather
than apply the standard retrospectively. As a result, the Company reclassified $1.7 million in tax benefits from accumulated other
comprehensive loss to retained eamings during the year ended December 31, 2018.
For regulatory reporting, the reclassification to retained earnings is reflected in FERC account 439 - Adjustments to Retained
Earnings. Per FERC Guidelines, the usage of account 439 requires prior FERC approval. During 2018, the Cornpany filed a request
with FERC for approval ofthe usage ofaccount 439, which was approved by the FERC on December 21.2018. The docket number
for Avista Corp.'s request was ACl9-9-000.
ASU 2018-13 "Fair Value Measuremenl Q'opic 820)"
In August 2018, the FASB issued ASU No. 2018-13, which amends the fair value measurement disclosure requirements of ASC 820.
The requirements of this ASU include additional disclosure regarding the range and weighted average used to develop significant
unobservable inputs for Level 3 fair value estimates and the elimination of certain other previously required disclosures, such as the
narrative description of the valuation process for Level 3 fair value measurements. This ASU is effective for periods beginning after
December 15,2019 and early adoption is permitted. Entities have the option to early adopt the eliminated or modified disclosure
requirements and delay the adoption of all the new disclosure requirements until the effective date of the ASU. The Company is in the
process of evaluating this standard; however, it has determined that it will not early adopt any portion of this standard as of
December 31,2018.
ASU No. 2018-11 "Compensation- Relirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)"
FERC FORM NO. 2/3-Q (REV 12-07)122.11
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t't5t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
In August 2018, the FASB issued ASU No. 2018-14, which amends ASC 715 to add, remove and/or clarify certain disclosure
requirements related to defined benefit pension and other postretirement plans. The additional disclosure requirements are primarily
narrative discussion of significant changes in the benefit obligations and plan assets. The removed disclosures are primarily
information about accumulated other comprehensive income expected to be recognized over the next year and the effects ofchanges
associated with assumed health care costs. This ASU is effective for periods beginning after Decernber 15,2021 and early adoption is
permitted. The Company is in the process of evaluating this standard; however, it has determined that it will not early adopt this
standard as of Decernber 31, 2018.
NOTE 3. REVENUE
ASC 606, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with
customers and superseded previous revenue recognition guidance, including industry-specific guidance, became effective on January l,
2018. The core principle of the revenue model is that an entity should identifu 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.
Utility Revenues
Revenue from Contracls with Customers
General
The rnajority of Avista Corp.'s revenue is from rate-regulated sales of electricity and natural gas to retail customers, which has two
performance obligations, ( I ) having service available for a specified period (typically a month at a time) and (2) the delivery of energy
to customers. The total energy price generally has a fixed cornponent (basic charge) related to having service available and a
usage-based component, related to the delivery and consumption ofenergy.
In addition, the sale of electricity and natural gas is governed by the various state utility comrnissions, which set rates, charges, terms
and conditions of service, and prices. Collectively, these rates, charges, terms and conditions are included in a "tariff," which governs
all aspects ofthe provision ofregulated services. Tariffs are only permitted to be changed through a rate-setting process involving an
independent, third-party regulator empowered by statute to establish rates that bind customers. Thus, all regulated sales by the
Company are conducted subject to the regulator-approved tariff.
Tariff sales involve the current provision of commodity service (electricity and/or natural gas) to customers for a price that generally
has a basic charge and a usage-based component. Tariffrates also include certain pass-through costs to customers such as natural gas
costs, retail revenue credits and other miscellaneous regulatory items that do not irnpact net income, but can cause total revenue to
fluctuate significantly up or down compared to previous periods. The commodity is sold and/or delivered to and consumed by the
customer simultaneously, and the provisions of the relevant tariffdetermine the charges the Company may bill the customer, payment
due date, and other pertinent rights and obligations of both parties. Generally, tariffsales do not involve a written contract. Given that
all revenue recognition criteria are met upon the delivery of energy to customers, revenue is recognized immediately at that time.
Revenues from contracts with customers are presented in the Statements of Income in the line item "Utility revenues, exclusive of
alternative revenue programs. "
U nb i I le d Revenue fr o m C o ntr ac ts w ith C us t o me rs
The determination of the volume of energy sales to individual customers is based on the reading of their meters, which occurs on a
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)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
systematic basis throughout the month (once per month for each individual customer). 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. The Company's 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):
2018 2017
Unbilled accounts receivable $ 64,463 $ 6s,801
N on- De r ivative 14/ho le sal e C onlrac l.s
The Company has certain wholesale contracts which are not accounted for as derivatives that are within the scope of ASC 606 and
considered revenue from contracts with customers. Revenue is recognized as energy is delivered to the customer or the service is
available for specified period of time, consistent with the discussion of tariff sales above.
Altern ative Revenue Programs (Decoupling)
ASC 606 retained existing GAAP associated with alternative revenue programs, which specified that alternative revenue programs are
contracts between an entity and a regulator of utilities, not a contract between an entity and a customer. GAAP requires that an entity
present revenue arising from alternative revenue programs separately from revenues arising from contracts with customers on the face
of the Statements of Income. The Company's decoupling mechanisms (also known as a FCA in ldaho) qualify as alternative revenue
programs. Decoupling revenue deferrals are recognized in the Statements of Incorne during the period they occur (i.e. during the
period of revenue shortfall or excess due to fluctuations in customer usage), subject to certain limitations, and a regulatory asset or
liability is established which will be surcharged or rebated to customers in future periods. GAAP requires that for any altemative
revenue program, like decoupling, the revenue must be expected to be collected from customers within 24 months of the deferral to
quali$, for recognition in the current period Statement of Income. Any amounts included in the Company's decoupling program that
are not expected to be collected from customers within 24 months are not recorded in the financial statements until the period in which
revenue recognition criteria are met. The amounts expected to be collected from customers within 24 months represents an estimate
which must be made by the Company on an ongoing basis due to it being based on the volumes of electric and natural gas sold to
customers on a go-forward basis.
Two acceptable methods of presenting decoupling revenue have evolved within the utility industry and a policy election is required by
the Company. The two options relate to how the collection/refund of previously recognized decoupling revenue is presented within
total revenue. The first option is the gross method, which is to amortize the decoupling regulatory asset/liability to the alternative
revenue program line item on the Statement of Income as it is collected from or refunded to customers. The cash passing between the
Company and the customers is presented in revenue from contracts with customers since it is a portion of the overall tariffpaid by
customers. This rnethod results in a gross-up to both revenue liom contracts with custorners and revenue from alternative revenue
FERC FORM NO. 2/3-Q (REV 12-07)122.13
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2U8tA4
Notes to Financial Statements
programs, but has a net zero impact on total revenue. The second option is the net method, which requires the amortization of the
decoupling regulatory asset/liability to be presented within revenue from contracts with customers such that, when netted against the
cash passing between the Company and the customers within the same line item, there is a net zero impact to revenue from contracts
with customers and total revenue. The Company has elected the gross method for the presentation of alternative revenue program
revenue, consistent with historical practice. Depending on whether the previous deferral balance being amortized was a regulatory
asset or regulatory liability, and depending on the size and direction ofthe current year deferral ofsurcharges and/or rebates to
customers, it could result in negative alternative revenue program revenue during the year.
Derivstive Revenue
Most wholesale electric and natural gas transactions (including both physical and financial transactions), and the sale of fuel are
considered derivatives, which are scoped out ofASC 606. As such, these revenues are disclosed separately from revenue from
contracts with customers. Revenue is recognized for these items upon the settlement/expiration of the derivative contract. Derivative
revenue includes those transactions which are entered into and settled within the same month.
Other Utility Revenue
Other utility revenue includes rent, revenues from the lineman training school, sales of materials, late fees and other charges that do not
represent contracts with customers. Other utility revenue also includes the provision for earnings sharing and the deferral and
amortization of refunds to customers associated with the Tax Cuts and Jobs Act (TCJA), enacted in December 2017. This revenue is
scoped out of ASC 606, as this revenue does not represent items where a customer is a party that has contracted with the Company to
obtain goods or services that are an output ofthe Company's ordinary activities in exchange for consideration. As such, these revenues
are presented separately from revenue from contracts with customers.
Other Considerations for Utility Revenues
Contracts with Multiple Performance Obligations
In addition to the tariff sales described above, which are stand-alone energy sales, the Company has bundled arrangements which
contain multiple performance obligations including some combination of energy, capacity, energy reserves and RECs. Under these
arrangements, the total contract price is allocated to the various performance obligations and revenue is recognized as the obligations
are satisfied. Depending on the source ofthe revenue, it could either be included in revenue from contracts with customers or
derivative revenue.
Gross Versus Net Presentstion
Utility-related taxes collected from customers (primarily state excise taxes and city utility taxes) are taxes that are imposed on Avista
Corp. as opposed to being imposed on its customers; therefore, Avista Corp. is the taxpayer and records these transactions on a gross
basis in revenue from contracts with customers and operating expense (taxes other than income taxes).
Utility-related taxes that were included in revenue from contracts with customers were as follows for the years ended December 3l
(dollars in thousands):
201 8 20t7
Utility-related taxes $ 58,730 $ 6r,715
Significant Judgments and Unsatisfied Performance Obligations
The vast majority of the Company's revenues are derived from the rate-regulated sale of electricity and natural gas that have two
performance obligations that are satisfied throughout the period and as energy is delivered to customers. In addition, the customers do
not pay for energy in advance ofreceiving it. As such, the Company does not have any significant unsatisfied performance obligations
FERC FORM NO. 2/3-Q (REV t2-07)122.14
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
or deferred revenues as ofperiod-end associated with these revenues. Also, the only significantjudgments involving revenue
recognition are estimates surrounding unbilled revenue and receivables from contracts with customers (discussed in detail above) and
estimates surrounding the amount of decoupling revenues which will be collected from customers within 24 months.
The Company has certain capaciry arrangements, where the Conrpany has a contractual obligation to provide either electric or natural
gas capacity to its customers for a fixed fee. Most of these arrangements are paid for in arrears by the customers and do not result in
deferred revenue and only result in receivables from the customers. The Company does have one capacity agreement where the
customer makes payments throughout the year and depending on the timing of the customer payments, it can result in an immaterial
amount of deferred revenue or a receivable from the customer. As of December 3 I , 201 8, the Company estimates it had unsatisfied
capacity performance obligations of $10.3 rnillion, which will be recognized as revenue in future periods as the capacity is provided to
the customers. These performance obligations are not reflected in the financial statements, as the Company has not received payment
for these services.
Disaggregation of Total Operating Revenue
The following table disaggregates total operating revenue by source for the year ended December 3 l, 2018 (dollars in thousands)
201 8
Avista Corp.
Revenue from contracts with customers
Derivative revenues
Alternative revenue programs
Deferrals and amortizations for rate refunds to customers
Other utility revenues
Total Avista Corp. operating revenues
$1,147 ,935
277,048
908
(t6,549)
7,456
t,416,798
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)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Utility Revenue from Contracts with Customers by Type and Service
The following table disaggregates revenue from contracts with customers associated with the Company's utility operations for the year
ended December 3 l, 2018 (dollars in thousands):
20t8
Avista Corp.
ELECTRIC OPERATIONS
Revenue from contracts with customers
Residential
Commercial and governmental
Industrial
Public street and highway lighting
Total retail revenue
Transmission
Other revenue from contracts with customers
Total revenue from contracts with customers
$
NATURAL GAS OPERATIONS
Revenue from contracts with customers
Residential
Commercial
Industrial and interruptible
Total retail revenue
Transportation
Other revenue from contracts with customers
Total revenue from contracts with customers
368,753
314,532
109,846
7,539
800,670
t7,864
27,364
$ 845,898
$ 194,340
89,341
4,753
288,434
9,103
4,500
s 302,037
NOTE 4. DERIVATIVES AND RISK MANAGEMENT
E n e rgy C o mmo dity D eriv atives
Avista Corp. is exposed to market risks relating to changes in electricity and natural gas cornmodity 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 comrnodity 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
FERC FORM NO, 2/3-Q (REV 12-07)122.',t6
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018,o.4
Notes to Financial Statements
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 ofthese projections, Avista Corp. plans and executes a series oftransactions to hedge a portion ofits
projected natural gas requirements through forward market transactions and derivative instruments. These transactions may extend as
much as four natural gas operating years (November through October) into the future. Avista Corp. also leaves a significant portion of
its natural gas supply requirements unhedged for purchase in short-tenn 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 optirnizes 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 lirnited to, wholesale market
sales ofsurplus natural gas supplies, purchases and sales ofnatural gas to optimize use ofpipeline and storage capacity, and
participation in the transportation capacity release market.
The following table presents the underlying energy commodity derivative volumes as of December 31, 2018 that are 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 (l)
MWh
Financial (l) Physical (l)
MWh mmBTUs
Financial (l) Physical (l) Financial (l) Physical (l) Financial (l)
mmBTUs MWh MWh mmBTUs mmBTUsYear
2019
2020
2021
2022
2023
Thereafter
206 941 10,732
1,t38
197
123
2,790
9s9
2,909
1,430
1,049
54,418
14,62s
4,1 00
101,293
47,225
9,670
The following table presents the underlying energy commodity derivative volumes as of December 31,2017 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(l) Financial(l) Physical(l)
MWh MWh mmB'l'tJs
Financial (l)
mmBTUs
Physical (l)
MWh
Financial ( I )
MWh
Physical ( I )
mmBTUs
Financial ( I )
mmBTUsYear
2018 763 10,572 107,580 213 1,739 3,643 67,375
FERC FORM NO. 2/3-Q (REV 12-07)122.17
426
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Y0
04115t2019
Year/Period of Report
2UAA4
Notes to Financial Statements
2019 235 737 610 6t,073 94 1,420 1,345 35,438
2020 910 16,590 589 1,430 915
2021 1,049
222
Thereafter
( I ) 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 ofAvista 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 cumency risk by purchasing Canadian currency exchange
derivatives when such commodity transactions are initiated. The foreign currency exchange derivatives and the unhedged foreign
currency risk have not had a material effect on 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.
The following table summarizes the foreign currency exchange derivatives that Avista Corp. has outstanding as of Decernber 3 I
(dollars in thousands):
201 8 2017
Number of contracts
Notional amount (in United States dollars)
Notional amount (in Canadian dollars)
$
3l
4,018 $
s,386
l8
2,552
3,241
Interest Rate Swap Derivotives
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 econornic
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):
Balance Sheet Date Number of Contracts Notional Amount
Mandatory Cash Settlement
Date
December 3l, 2018 6
6
2
70,000
60,000
25,000
2019
2020
2021
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)
04115t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
7 80,000 2022
December 31 ,2017 275,000
70,000
30,000
15,000
60,000
20t8
2019
2020
2021
2022
14
6
3
I
5
During the second quarter 2018, in connection with the issuance and sale of $375.0 million of Avista Corp. first mortgage bonds (see
Note I I ), the Company cash-settled fourteen interest rate swap derivatives (notional aggregate amount of $275.0 rnillion) and paid a
net amount of $26.6 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 of interest expense over the 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 tirne of settlement exceed the fixed swap rates.
Su mmary of Outstan ding Derivalive I nstruments
The amounts recorded on the Balance Sheet as of December 31, 2018 and December 31,2017 reflect the offsetting of derivative assets
and liabilities where a legal right of offset exists.
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2018 (in thousands):
Fair Value
Gross Gross Collateral
Net Asset
(Liability.l
on Balance
SheetDerivative and Balance Sheet Locatron
Foreign currency exchange derivatives
Derivative instrument liabilities current
Interest rate swap derivatives
Derivative instrument assets current
Long-tenn portion of derivative assets
Long-tenn portion of derivative liabilities
Energy commodity derivatives
Derivative instrument assets current
Derivative instrument liabilities current
Long-tenn portion of derivative liabilities
Total derivative instruments recorded on the balance sheet $ 46,84e$(102,453)$ s1,747 $ (3,8s7)
$$ (4s) $
(440)
(7,391)
(130)
(73, I 55)
(21,292)
$ (4s)
5,283
5,283
5,283
4,843
(6,861 )
400
31,457
4,426
37,790
13,427
270
(3,e08)
(3,43e\
FERC FORM NO.2/3-Q 1 122.19
530
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheet as of December 31,
2017 (in thousands):
Fair Value
Gross Gross Collateral
Net Asset
(Liability)
on Balance
SheetDerrvative and Balance Sheet Location
Foreign currency exchange derivatives
Derivative instrument assets current
Interest rate swap derivatives
Derivative instrument assets current
Long-term portion of derivative assets
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Energy commodity derivatives
Derivative instrument assets current
Derivative instrument liabilities current
Long-term portion of derivative liabilities
Total derivative instruments recorded on the balance sheet
$
Energy commodity derivatives
Cash collateral posted
Letters of credit outstanding
Balance sheet offsetting (cash collateral against net derivative positions)
Interest rate swap derivatives
Cash collateral posted
Letters of credit outstanding
Balance sheet offsetting (cash collateral against net derivative positions)
32$(l) $$3l
2,597
4,880
r,386
26,641
15,970
(270)
(2,304)
(63,399)
(7,s40)
(122)
(52,895)
(34,936)
28,952
6,0 l8
17,406
10,032
2,327
2,576
(34,447)
(r,s22)
1,264
(8,848)
(8,e34)
$ s1,506 $ (t6t,467) $ 62,408 $ (47,5s3)
Exposure to Demands for Collateral
Avista Corp.'s derivative contracts often require collateral (in the form ofcash or letters ofcredit) 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 rnarket 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.
ThefollowingtablepresentsAvistaCorp.'scollateral outstandingrelatedtoitsderivativeinstrumentsasofasofDecember3l (in
thousands):
201 8 2017
$78,025 $
6,500
51,217
39,458
23,000
27,438
34,970
5,000
34,970
530
530
FERC FORM NO. 2/3-Q (REV 12-07)122.20
Certain of Avista Corp.'s derivative instruments contain provisions that require the Company to maintain an "investment grade" credit
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financia! Statements
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 instrurnents 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 Decernber 3 I ( in thousands):
201 8 2017
Energy commodity derivatives
Liabilities with credit-risk-related contingent features
Additional collateral to post
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features
Additional collateral to post
Utility plant in service
Accumulated depreciation
$
7,831
6,579
$ 384.431 $
(261.997\
2,t93 $
2,193
I,336
1,336
73,514
18,770
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 southeastern
Montana, and provides financing for its ownership interest in the project. The Cornpany's share of related fuel costs as well as
operating expenses for plant in service are included in the corresponding accounts in the Statements of Income. The Company's share
of utility plant in service for Colstrip and accumulated depreciation (inclusive of the ARO assets and accumulated amortization) were
as follows as of December 3l (dollars in thousands):
201 8 2017
379,970
(25s,604\
See Note 6 for further discussion of AROs.
While the obligations and liabilities with respect to Colstrip are to be shared among the co-owners on a pro rata basis, many of the
environmental liabilities are joint and several under the law, so that if any co-owner failed to pay its share of such liability, the other
co-owners (or any one of them) could be required to pay the defaulting co-owner's share (or the entire liability).
NOTE 6. ASSET RETIREMENT OBLIGATIONS
The Company has recorded liabilities for future AROs to:
. restore coal ash containment ponds at Colstrip,
. cap a landfill at the Kettle Falls Plant,
. remove plant and restore the land atthe Coyote Springs 2 site atthe termination of the land lease, and
o 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:
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)
04t15t2019
Year/Period of Report
20't8tQ4
removal and disposal of certain transmission and distribution assets, and
abandonment and decommissioning of certain hydroelectric generation and natural gas storage facilities
In 20 I 5, the EPA issued a final rule regarding CCRs, also termed coal combustion byproducts or coal ash. Colstrip, of which Avista
Corp. is a l5 percent owner of units3 & 4, produces this byproduct. The CCR rule has been the subject of ongoing litigation. In
August 2018, the D.C. Circuit struck down provisions ofthe rule. The rule includes technical requirements for CCR landfills and
surface impoundments. The Colstrip owners developed a multi-year compliance plan to address the CCR requirements and existing
state obligations.
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 unceftainty and evolving nature of the compliance strategies that will be used and the availability of data used to
estimate costs, such as the quantity ofcoal ash present at certain sites and the volume offill that will be needed to cap and cover certain
impoundments. The Company expects to seek recovery of any increased costs related to complying with the CCR rule through
customer rates.
In addition to the above, under a 20 l2 Administrative Order on Consent, the owners of Colstrip are required to provide financial
assurance, primarily in the form ofsurety bonds, to secure each owner's pro rata share ofvarious anticipated closure and remediation
obligations. The amount of financial assurance required of each owner may, like the ARO, vary substantially due to the uncertainty and
evolving nature of anticipated closure and remediation activities, and as those activities are completed over time.
The following table documents the changes in the Company's asset retirement obligation during the years ended December 3l (dollars
in thousands):
201 8 2017
a
a
Asset retirement obligation at beginning of year
Liabilities incured
Liabilities settled
Accretion expense
Asset retirement obligation at end of year
$ 17,482 $15,515
I ,t7l
(66)
850 796
$ 18,266 $ 17,482
NOTE 7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The pension and other postretirement benefit plans described below only relate to Avista Corp. AEL&P (not discussed below)
participates in a defined contribution multiemployer plan for its union workers and a defined contribution money purchase pension
plan for its nonunion workers. METALfX (not discussed below) has a defined contribution 401(k) plan. None of the subsidiary
retirernent plans, individually or in the aggregate, are significant to Avista Corp.
Avista Corp.
The Company has a defined benefit pension plan covering the majority of all regular full-time employees at Avista Corp. that were
hired prior to January l, 2014. Individual benefits under this plan are based upon the employee's years of service, date of hire 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 minimurn
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 2018 and
2017.The Company expects to contribute $22.0 million in cash to the pension plan in 2019.
FERC FORM NO. 2/3-Q (REV 12-07)122.22
Notes to Financial Statements
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04115t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
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 ofSection 415 ofthe Internal Revenue Code of 1986 and the deferral ofsalary 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):
2019 2020 2021 2022 2023 Total2024-2028
Expected benefit payments $ 37,920 $ 38,486 $ 38,433 $ 39,018 $ 39,405 $ 210,240
The expected long-tenn 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
nraturities similar to that ofthe expected term ofpension 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 l,
2014, will have access to the retiree medical plan upon retirement; however, Avista Corp. will no longer provide a contribution toward
their medical premium.
The Company has a Health Reimbursement Arrangement (HRA) to provide employees with tax-advantaged funds to pay for allowable
medical expenses upon retirement. The amount earned by the employee is fixed on the retirement date based on the employee's years
of service and the ending salary. The liability and expense of the HRA are included as other postretirement benefits.
The Company provides death benefits to beneficiaries of executive officers who die during their term of office or after retirement.
Under the plan, an executive officer's designated beneficiary will receive a payment equal to twice the executive officer's annual base
salary at the time ofdeath (or ifdeath 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 postretirenrent benefit plans will total (dollars in thousands):
2019 2020 2021 2022 2023 ToLal2024-2028
Expected benefit payments $ 6,766 $ 6,393 $ 6,s66 $ 6,688 $ 6,740 $ 37,s81
The Company expects to contribute $7.1 million to other postretirement benefit plans in 2019, 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.
ThefollowingtablesetsforththepensionandotherpostretirementbenefitplandisclosuresasofDecember3l,20l8and20lTandthe
components ofnet periodic benefit costs for the years ended December 31, 2018 and 2017 (dollars in thousands):
Pension Benefils
Other Post-
retirement Benefits
20t8 2017 201 8 2017
Change in benefit obligation:
Benefit obligation as ofbeginning ofyear
Service cost
716,561 $
zt,6t4
666,472 $
20,406
132,947 $
3,r88
t36,453
3,220
$
FERC FORM NO. 2/3.Q (REV 12-07)122.23
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018to4
Notes to Financial Statements
Interest cost
Actuarial (gain)/loss
Plan change
Benefits paid
Benefit obligation as ofend ofyear
Change in plan assets:
Fair value ofplan assets as ofbeginning ofyear
Actual return on plan assets
Employer contributions
Benefits paid
Fair value ofplan assets as ofend ofyear
Funded status
Amounts recognized in the Balance Sheets
Current liabilities
Non-current liabilities
Net amount recognized
Accumulated pension benefit obligation
Total
Less regulatory asset
(44,001)(6,303) (6,re6)
$ 671,629 $ 7l6,s6r $ 134,053 $ 132,947
$605,652 $
(40,es4)
22,000
(42,647)
540,914 $
82,476
22,000
(39,738)
37,953 $
(1,10 I )
33,365
4,588
26,096
(48,641)
27,898
39,743
3,t 58
(4r,1l6)
4,831
(6r 0)
5,490
(6,020)
$ s44,051 $ 605,652 $ 36,852 $ 37,953
$ (127,578) $ (l l0,e0e) $ (e7,201) $ (e4,e94)
(1,477)
(126,r0r)
(r,663)
(109,246)
(s80)
(96,621\
(s2e)
(94,46s\
(127,s78) (l 10,909) (97,201) (94,994)
$ s86,398 $ 624,34s
Accumulated postretirement benefit obligation:
For retirees
For fully eligible employees
For other participants
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost $ 2,308 $
Unrecognized net actuarial loss 138,516
2,066 $
102,624
63,796 S
29,902 $
40,355 $
(s,230) $
52,441
60,354
32,891
39,702
(5,058)
44,382
$
$
$
140,824
(133,237\
104,690
(97,025)
47,21t
(46,932)
39,324
(38,899)
Accumulated other comprehensive loss for unfunded benefit
obligation for pensions and other postretirement benefit
plans $ 7,587 $
Pension Benefits
2018
7,66s $ 279 $425
Other Pos!
retirement Benetits
2017 2018 20t7
4.3l%o
3 .71o/o
5.50o/o
4.67o/o
3.7lyo
4.26Yo
5.87Yo
4.690/o
4.320
3.72o/o
5.20o/o
3.72Yo
4.23o/o
5.69%
FERC FORM NO.2/3-Q I 122.24
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation
Discount rate for annual expense
Expected long-term return on plan assets
Rate of compensation increase
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tc.4
Notes to Financia! Statements
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 (a)
Interest cost
Expected return on plan assets
Amortization of prior service cost
Net Ioss recognition
Net periodic benefit cost
$ 21,614 $
26,096
(33,018)
257
7,879
3,188 $
4,831
( 1,e73)
( r,08e)
4,232
Pension Benefits
6.00o/o
5.00Yo
2023
6.25o/o
5.00%
2024
Other
Post-retirement Bene
fits
6.50Yo
5.00Yo
2023
6.50o/o
5.00Yo
2024
201 8 2017 201 8 2017
20,406 $
27,898
(31,626)
2
9,793
3,220
5,490
( 1,899)
( 1,1 44)
4,934
$ 22,828 $ 26,473 $ 9,189 $ 10,601
(a) Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded
to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent ofall labor
and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.
See Note 2 for discussion regarding the adoption of ASU No. 2017-07 and its impact to the presentation of pension and other
postretirement benefits in the Staternents of Income and the Balance Sheets.
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
December3l,20lSby$8.1 millionandtheserviceandinterestcostby$0.6million.Aorre-percentage-pointdecreaseintheassumed
health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as of December 3 1, 20 l8 by
$6.4 million and the service and interest cost by $0.5 million.
Plan Assels
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 investrnent and
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 internal 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. ln seeking to obtain a return that aligns with the funded status of the pension plan, the
investtnent consultant recommends allocation percentages by asset classes. These recommendations are reviewed by the internal
benefits committee, which then recommends their adoption by the Finance Cornmittee. The Finance Committee has established target
FERC FORM NO. 2/3-Q (REV 12-07)122.25
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
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:
201 8 20t't
Equity securities
Debt securities
Real estate
Absolute return
37o/o
45o/o
8Yo
t0%
37%
45%
8%;o
l0o/o
The fair value of pension plan assets invested in debt and equity securities was based primarily on fair value (rnarket 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 uporr 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 frorn the
fair value hierarchy and are included as reconciling items in the tables below.
Investrnents 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 investrnents 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 redernption currently expiring in2022 and is
subject to extension.
FERC FORM NO. 2/3.Q 1 122.26
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
o4t15t20't9
Year/Period of Report
20't8tQ4
Notes to Financial Statements
The fair value of pension plan assets invested in real estate was determined by the investment manager based on three basic
approaches:
. properties are externally appraised on an annual basis by independent appraisers, additional appraisals may be
performed as warranted by specific asset or market conditions,
. property valuations are reviewed quarterly and adjusted as necessary, and
o loans are reflected at fair value.
The fair value of pension plan assets was determined as of December 3 I , 201 8 and 201 7.
The following table discloses by level within the fair value hierarchy (see Note l3 for a description of the fair value hierarchy) of the
pension plan's assets measured and reported as of December 31,2018 at fairvalue (dollars in thousands):
Levell Level2 Level3 Total
Cash equivalents $
Fixed income securities:
U.S. govemment issues
Corporate issues
International issues
Municipal issues
Mutual funds:
U.S. equity securities
International equity securities
Absolute return (l)
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate
I nternational equity securities
Partnership/closely held investments:
Absoluteretum(l)
Real estate
$ 7.061 $$ 7,061
Total $ 137,1l0 $ 267,778 $$ s44,0s l
The following table discloses by level within the fair value hierarchy (see Note l3 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):
Level 2 Total
37,078
175,908
31,561
t6,t70
37,078
175,908
3 1,561
16,170
101,720
33,141
2,249
43,303
30,944
60,6t2
4,304
t01,720
33,r4r
2,249
Cash equivalents
Fixed income securities:
U.S. govemment issues
Corporate issues
$ 20,619 $
20.305
185,272
$ 20,619
20,305
185,272
$
Level I Level 3
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)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
International issues
Municipal issues
Mutual funds:
U.S. equity securities
International equity securities
Absolute retum (l)
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commor/collective trusts:
Real estate
International equity securities
Partnership/closely held investments:
Absolute return (l)
Private equity funds (2)
Real estate
32,054
20,201
32,054
20,201
127,742
40,755
7,728
34,470
43,462
67,167
72
5,805
127,742
40,755
7,728
(2)
Total $ 176,225 $ 278,451 $$ 605,652
(l)This category invests in multiple strategies to diversifo risk and reduce volatility. The strategies include: (a) event driven,
relative value, convertible, and fixed income arbitrage, (b) distressed investments, (c) long/short equity and fixed income, and
(d) market neutral strategies.
This category includes private equity funds that invest primarily in U.S. companies.
The fair value of other postretirement plan assets invested in debt and equity securities was based primarily on market prices. The fair
value ofinvestment securities traded on a national securities exchange is determined based on the last reported sales price; securities
traded in the over-the-counter market are valued at the last reported bid price. Investment securities for which market prices are not
readily available are fair-valued by the investment manager based upon other inputs (including valuations ofsecurities that are
comparable in coupon, rating, maturity and industry). The target asset allocation was 60 percent equity securities and 40 percent debt
securities in both 2018 and 2017.
The fair value of other postretirement plan assets was determined as of December 31, 2018 and 2017
The following table discloses by level within the fair value hierarchy (see Note I 3 for a description of the fair value hierarchy) of other
postretirement plan assets measured and reported as of December 3l, 2018 at fair value (dollars in thousands):
Level I Level 2 Level 3 Total
Balancedindexmutualtunds(l) $ 36,852 $ - $ - $ 36,852
The following table discloses by level within the fair value hierarchy (see Note I 3 for a description of the fair value hierarchy) of other
postretirement plan assets measured and reported as of Decemb er 31 , 2017 at fair value (dollars in thousands):
Levell Level2 Level3 Total
Balanced index mutual funds (l )$ 37,953 $$$ 37,953
(l) The balanced index fund for 2018 and2017 is a single mutual fund that includes a percentage of U.S. equity and fixed income
securities and Intemational equity and fixed income securities.
FERC FORM NO. 2/3-Q (REV 12-07)122.28
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t20't9
Year/Period of Report
2018tQ4
Notes to Financial Statements
Avista Corp. has a salary deferral 401(k) plans that is a defined contribution plans and covers substantially all employees. Ernployees
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 ofthe salary deferred by each participant according to the schedule in the respective plan.
Employer matching contributions were as follows for the years ended December 3l (dollars in thousands):
201 8
Employer 40 1 (k) matching contributions $ 10,044 $ 8,896
The Company has an Executive Deferral Plan. This plan allows executive officers and other key employees the opportunity to defer
until the earlier oftheir retirement, tennination, disability or death, up to 75 percent oftheir 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 3 I (dollars in thousands):
201 8 2017
Deferred compensation assets and liabilities $ 8,400 $ 8,4s8
NOTE 8. ACCOUNTING FOR INCOME TAXES
Federal Income Tax Law Changes
On December 22,2017,the TCJA was signed into law. The legislation included substantial changes to the taxation of individuals as
well as U.S. businesses, multi-national enterprises, and other fypes of taxpayers. Highlights of provisions most relevant to Avista Corp.
included:
o Apermanentreductioninthestatutorycorporatetaxratefrom35percentto2l percent,beginningwithtaxyearsafter20lT;
o StatutoU provisions requiring that excess deferred taxes associated with public utility property be normalized using the
Average Rate Assurnption Method (ARAM) or the Reverse South Georgia Method for determining the timing of the return of
excess deferred 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;
o Repeal of the corporate alternative nrinimum tax (AMT);
o Bonus depreciation (expensing ofcapital 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; and
o NOL carryback deductions were eliminated, but carryforward deductions are allowed indefinitely with some annual
limitations versus the previous 2U-year linritation.
FERC FORM NO. 2/3-Q (REV {2-07)122.29
2017
401(k) Plans and Executive Deferral Plan
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2\ _A Resubmission
Date of Report
(Mo, Da, Yr)
04115t20't9
Year/Period of Report
2018tQ4
Notes to Financial Statements
As a result of the TCJA and its reduction of the corporate income tax rate from 35 percent to 2l percent (among many other changes in
the law), the Company recorded a regulatory liability associated with the revaluing of its deferred income tax assets and liabilities to
the new corporate tax rate. The total net amount of the regulatory liability for excess deferred income taxes associated with the TCJA
is $429.3 million as of December 31, 2018, compared to $434.6 million as of December 31,2017, which reflects the amounts to be
refunded to customers through the regulatory process. The Avista Corp. amounts related to utility plant commenced being returned to
customers in 2018 and the Company expects they will be returned to customers over a period of approximately 36 years using the
ARAM. The return of the regulatory liability attributable to non-plant excess deferred taxes of approximately $18.5 million (among all
jurisdictions) as of December 31, 2018 will be determined by final orders from the WUTC, IPUC and the Oregon Public Utilities
Commission (OPUC) during 2019.
Because most ofthe provisions ofthe TCJA were effective as ofJanuary l, 2018 but customers'rates included a 35 percent corporate
tax rate built in from prior general rate cases, the Company began accruing for a refund to customers for the change in federal income
tax expense beginning January 1,2018 forward. For Washington and Idaho, this accrual was recorded until all benefits priorto a
permanent rate change were properly captured through the deferral process. Refunds have begun to Washington and Idaho customers
through tariffs or other regulatory mechanisms or proceedings. For Oregon, a final order is expected during 2019 to determine the
timing of refunds to customers.
As of December 3 I , 201 8, excess accumulated deferred tax liabilities associated with the TCJA are classified as follows in the Balance
Sheet (in thousands):
Protected Unprotected Total
Washington ldaho Oregon Washington Idaho Oregon Washington Idaho Oregon
Deferred tax assets
Regulatory liabilities
59,201
256,837
26,657
115,647
8,820
38,265
) 1)<
11,824
1,465
6,409
61,926
268,661
28,122
122,056
8,891
38,571
71
306
The deferred tax assets in the table above represent the income tax gross-up ofthe excess deferred taxes (which, together with the
excess deferred tax amount, reflects the revenue amounts to be refunded to customers through the regulatory process).
Excess accumulated deferred income taxes in 2018 were amortized in the Statement of Income as follows (in thousands)
Protected Unprotected Total
Washington Idaho Oregon Washington Idaho Oregon Washington Idaho Oregon
Provision for deferred
income taxes (5,334) (2,426) (4e6) (33e) 2e0 (s,673) (2,136) (4e6)
Positive amounts reflect increases to the provision for deferred income taxes and negative amounts reflect reductions to the provision
for deferred income taxes.
Deferred Income Taxes
FERC FORM NO.2/3-Q 1 122.30
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes and tax credit carryforwards. The realization of deferred
income tax assets is dependent upon the ability to generate taxable income in future periods. The Company evaluated available
evidence supporting the realization of its deferred income tax assets and determined it is more likely than not that deferred income tax
assets will be realized.
As of December 31, 2018, the Company had $21.0 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 $7.3 million of the state tax credits. As such, the Company has recorded
a valuation allowance of $13.7 million against the state tax credit carryforwards and reflected the net amount of $7.3 million as an
asset as of December 31, 2018. State tax credits expire from 2020 to 2032.
Status of Internal Revenue Service (IRS) and State Examinations
The Company and its eligible subsidiaries file federal income tax returns. The Company also files state income tax returns in certain
jurisdictions, including Idaho, Oregon, Montana and Alaska. Subsidiaries are charged or credited with the tax effects of their
operations on a stand-alone basis. All tax years after 2013 are open for an IRS tax examination. The IRS is currently reviewing tax
years 2014 through 20 I 6 and the Company does not yet know the final status of these examinations.
The Idaho State Tax Commission notified the Company in 2018 that they would be auditing the Company's tax returns for the years
2014 through 2016. The statute of limitations for Montana and Oregon to review 2014 and earlier tax years has expired.
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 Ts-yes
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 3 l (dollars in thousands):
2018 2017
Regulatory assets for deferred income taxes
Regulatory liabilities for deferred income taxes
$91,188 $
446,187
90,315
453,817
NOTE 9. ENERGY PURCHASE CONTRACTS
Avista Corp. has contracts for the purchase offuel 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 frorn one month to twenty-five
years.
Total expenses for power purchased, natural gas purchased, fuel for generation and other fuel costs, which are included in utility
resource costs in the Statements of Income, were as follows for the years ended December 3l (dollars in thousands):
201 8 2017 201 6
Utility power resources $ 357,656 $ 380,523 $ 402,575
The following table details Avista Corp.'s future contractual commitments for power resources (including transmission contracts) and
FERC FORM NO.2/3.Q 1 122.31
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
natural gas resources (including transportation contracts) (dollars in thousands):
2019 2020 2021 2022 2023 Thereafter Total
Power resources
Natural gas resources
Total
$ 199,239 $
70,t59
t74,236 $
61,017
163,608 $
37,3t8
162,895 $
33,900
1s4,935 $
33, I 30
990,024 $ 1,844,937
298.2s3 s33,777
$ 269,398 $ 23s,2s3 $ 200,926 $ 196,795 $ 188,065 $ 1,288,277 $ 2,378,714
These energy purchase contracts were entered into as part ofAvista Corp.'s obligation to serve its retail electric and natural gas
customers' energy requirements, including contracts entered into for resource optimization. As a result, these costs are recovered either
through base retail rates or adjustments to retail rates as part ofthe power and natural gas cost deferral and recovery mechanisms.
The above future contractual commitments for power resources include fixed contractual amounts related to the Company's contracts
with certain 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
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, 2018 (principal and interest) was $65.3 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 cornmitments under these agreements (dollars in
thousands):
2019 2020 2021 2022 2023 Thereafter Total
Contractualobligations $ 29,474 $ 33,311 $ 32,291 $ 28,142 $ 28,859 $ 195,743 $ 347,820
NOTE 10. NOTES PAYABLE
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 "total debt" to "total capitalization" of Avista Corp. to be greater than 65 percent at any time. As of
December 31,2018, 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 3 I (dollars in thousands):
201 8 2017
Balance outstanding at end ofperiod
Letters ofcredit outstanding at end ofperiod
Average interest rate at end ofperiod
$ 190,000 $
$ 10,503 $
3.18%
105,000
34,420
2.26%
FERC FORM NO. 2/3-Q (REV 12-07)122.32
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20181Q4
Notes to Financia! Statements
As of December 31, 2018 and 2017 , the borrowings outstanding under Avista Corp.'s cornmitted line of credit were classified as
short-term borrowings on the Balance Sheet.
NOTE 1I. BONDS
The following details long-term debt outstanding as of December 3l (dollars in thousands):
Maturity lnterest
Year Description Rate 201 8 2017
Avista Corp. Secured Long-Term Debt
20 l8 First Mortgage Bonds
2018 Secured Medium-Term Notes
2019 First Mortgage Bonds
2020 First Mortgage Bonds
2022 First Mortgage Bonds
2023 Secured Medium-Term Notes
2028 Secured Medium-Terrn Notes
2032 Secured Pollution Control Bonds ( 1)
2034 Secured Pollution Control Bonds (l)
2035 First Mortgage Bonds
2037 First Mortgage Bonds
2040 First Mortgage Bonds
2041 First Mortgage Bonds
2044 First Mortgage Bonds
2045 First Mortgage Bonds
2047 First Mortgage Bonds
2047 First Mortgage Bonds
2048 First Mortgage Bonds (2)
2051 First Mortgage Bonds
Total secured bonds
Secured Pollution Control Bonds held by Avista
Corporation (l)
Total long-term debt
5.95%
7.39o/o-7.45%;o
5.45%
3.89o/o
5.13%
7.18%o-7.54o/o
6.37%
(l)
(l)
6.25o/o
5.70Y"
5.55Yo
4.45Yo
4.llYo
4.37%
4.23%
3.9lYo
4.35o/o
3.54Yo
90,000
52,000
250,000
13,500
25,000
66,700
17,000
150,000
r 50,000
35,000
85,000
60,000
100,000
80,000
90,000
375,000
175,000
(83,700)
$ 1,730,500 $
1,814,200 1,711,700
250,000
22,s00
90,000
52,000
250,000
13,500
25,000
66,700
17,000
150.000
150,000
3s,000
85,000
60,000
r00,000
80,000
90,000
175,000
(83,700)
1,628,000
(l)In December 2010, $66.7 million and $17.0 million of the City of Forslth, Montana Pollution Control Revenue Refunding
Bonds (Avista Corporation Colstrip Project) due in 2032 and2034, 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 2010B). The new
bonds were not offered to the public and were purchased by Avista Corp. due to market conditions. The Company expects
that at a later date, subject to market conditions, these bonds may be remarketed to unaffiliated investors. So long as Avista
Corp. is the holder of these bonds, the bonds will not be reflected as an asset or a liability on Avista Corp.'s Balance Sheets.
In May 2018, the Company issued and sold $375.0 million of 4.35 percent first mortgage bonds due in 2048 through a public
offering. The total net proceeds from the sale of the bonds were used to repay maturing long-term debt of $272.5 million,
repay the outstanding balance under Avista Corp.'s $400.0 million committed line of credit and for other general corporate
(2)
FERC FORM NO. 2/3-Q (REV l2-07)122.33
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2UAA4
Notes to Financial Statements
purposes. In connection with the issuance and sale ofthe first mortgage bonds, the Company cash-settled fourteen interest rate
swap derivatives (notional aggre9ate amount of $275.0 million) and paid a net amount of $26.6 million. See Note 4 for a
discussion ofinterest rate swap derivatives.
The following table details fllture long-term debt maturities including advances from associated companies (see Note l2) (dollars in
thousands):
2019 2020 20zl 2022 2023 Thereafter Total
Debt maturities $ 90,000 $ 52,000 $$ 250,000 $ 13,500 $ 1,376,s47 $ 1,782,047
Substantially all of Avista Corp.'s owned properties are subject to the lien of its mortgage indenture. Under the Mortgage and Deed of
Trust (Mortgage) securing its first mortgage bonds (including secured medium-term notes), Avista Corp. may issue additional first
mortgage bonds under its 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
Avista Corp. may not issue any additional first mortgage bonds (with certain exceptions in the case of bonds issued on the basis of
retired bonds) unless it has "net earnings" (as defined in the Mortgage) for any period of l2 consecutive calendar months out ofthe
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 31,2018, property
additions and retired bonds would have allowed, and the net earnings test would not have prohibited, the issuance of $1.2 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 Interest Debentures, Series B, with a principal amount of
$5 1.5 million to Avista Capital II, an afliliated business trust formed by the Company. Avista Capital II issued $50.0 rnillion 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 3l:
201 8 2017 201 6
a
a
a
Low distribution rate
High distribution rate
Distribution rate at the end of the year
2.36%
3.6l%o
3.6l%0
l.&l%o
2.36Yo
2.36y:o
1.29o/o
t.9t%:o
l.&l%o
Concurrent with the issuance of the Preferred Trust Securities, Avista Capital II issued $1.5 million of Common Trust Securities to the
Company. These Preferred Trust Securities may be redeemed at the option of Avista Capital il at any time and mature on June 1,2037
In 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 payrnent of distributions on,
and redemption price and liquidation amount for, the Preferred Trust Securities to the extent that Avista Capital II has funds available
FERC FORM NO. 2/3-Q (REV l2-07)122.34
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20't8to.4
Notes to Financial Statements
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. FAIRVALUE
The carrying values ofcash and cash equivalents, special deposits, accounts and notes receivable, accounts payable and notes payable
are reasonable estimates oftheir 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 l, but which are either directly or
indirectly observable as ofthe 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 rnarket and contractual prices for the underlying instrurnents,
as well as other relevant economic rneasures. Substantially all of these assumptions are observable in the rnarketplace throughout the
full terrn ofthe instrument, can be derived frour observable data or are supported by observable levels at which transactions are
executed in the marketplace.
Level 3 - Pricing inputs include significant inputs that are generally unobservable from objective sources. These inputs may be
used with internally developed methodologies that result in management's best estimate of fair value.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value
measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and
rnay affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The deterrnination
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 Decernber 3 I (dollars in thousands):
2018 2017
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Long-term debt (Level 2)
Long-term debt (Level 3)
Long-term debt to affiliated trusts (Level 3)
$ 1,053,s00 $
677,000
5 t,547
1,142,292 $
645,523
38, I 45
951,000 $
677,000
5t,547
1,067,783
713,147
41,882
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 parfy brokers for debt with similar risk and terms. The
price ranges obtained from the third party brokers consisted of par values of 74.00 to l2l .49, where a par value of I 00.00 represents
FERC FORM NO. 2/3-Q (REV l2-07)122.35
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20181Q4
Notes to Financial Statements
the carrying value recorded on the Balance Sheets. Level2long-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 tenns to
generate quotes for Avista Corp. bonds.
FERC FORM NO. 2/3-Q (REV 12-07)122.36
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
FERC FORM NO. 2/3-Q (REV 12-07)122.37
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
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 3 I, 20 l8 at fair value on a recurring basis (dollars in thousands):
Level I Level2
Counterparty
and Cash
Collateral
Netting (l)Level 3 Total
December 31, 2018
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreements
Interest rate swap derivatives
Deferred compensation assets :
Mutual Funds:
Fixed incorne securities
Equity securities
Total
Liabilities:
Energy cornmodity 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
December 31,2017
Assets:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
Foreign currency exchange derivatives
Interest rate swap derivatives
$$ 36,2s2 $
10,566
$ (35,982) $270
(3t)
(440)10,126
1,7 45
6,157
3l
1,745
6,157
$ 7,902 $ 46,818 $3t $ (36,4s3)$ t8,2e8
$$ 89,283 $$ (87,lee) $ 2,084
45
7,831
2,805
2,488
I
(31)2,774
2,488
I
45
6,86 r(e70)
$$ 97,159 $ 5,294 $ (88,200) $ ',t4,253
The following table discloses by level within the fair value hierarchy the Cornpany's assets and liabilities measured and reported on the
Balance Sheets as of December 3l ,2017 atfair value on a recurring basis (dollars in thousands):
Level I Level 2 Level 3
Counterparty
and Cash
Collateral
Netting (l)Total
$ 43,814 $
32
7,477
$ (42,ss0) $ t,264
(r83)
(l)
(2,s74)
3l
4,903
$
183
FERC FORtrl NO. 2/3-Q 1 't22.38
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
0411512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Deferred compensation assets:
Mutual Funds:
Fixed inconre securities
Equity securities
Total
Liabilities:
Energy commodity derivatives
Level 3 energy commodity derivatives:
Natural gas exchange agreement
Power exchange agreement
Power option agreement
Foreign currency exchange derivatives
Interest rate swap derivatives
Total
$ 8,269 $ 51,323 $183 $ (4s,308)$ 14,467
1,638
6,631
I,638
6,631
$$ 7 r,342 $
I
73,513
$ (69,988) $ 1,354
(r83)3,164
13,245
l9
(l)
(37,s44)
3,347
13,245
t9
3s,969
$$ 144,856 $ 16,6ll $ (107,716\ $ 53,751
(l) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable
master netting agreement exists. ln addition, the Company nets derivative assets and derivative liabilities against any payables and
receivables for cash collateral held or placed with these same counterparties.
The difference behveen 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 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 for the term of the
swaps and discounts the cash flows back to present value using an appropriate discount rate. The discount rate is calculated by third
party brokers according to the terms of the swap derivatives and evaluated by the Company for reasonableness, with consideration
given to the potential non-performance risk by the Company. Future cash flows of the interest rate swap derivatives are equal to the
fixed interest rate in the swap compared to the floating market interest rate multiplied by the notional amount for each period.
To establish fair value for foreign currency derivatives, the Company uses forward market curves for Canadian dollars against the US
dollar and multiplies the difference between the locked-in price and the market price by the notional amount of the derivative. Forward
foreign currency market curyes are provided by third parfy brokers. The Cornpany's credit spread is factored into the locked-in price of
the foreign exchange contracts.
FERC FORM NO. 2/3-Q (REV t2-07)122.39
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
201Ao.4
Notes to Financial Statements
Deferred compensation assets and liabilities represent funds held by the Company in a Rabbi Trust for an executive deferral plan.
These funds consist of actively traded equity and bond funds with quoted prices in active markets. The balance disclosed in the table
above excludes cash and cash equivalents of $0.5 million as of December 31, 2018 and $0.2 million as of December 31,2017.
Level 3 Fuir 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 internally developed forward price
which is based on the average O&M charges from the three surrogate nuclear power plants for the current year. The Company
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.
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 estirnates of the tirning and volume of transactions
carr 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
rnarket prices and market volatility.
In addition to the above, the Company also has power option agreements which expire in June 20 19. 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: I ) the strike price (which is an internally derived price based on a combination of
generation plant heat rate factors, natural gas market pricing, delivery and other O&M charges) and 2) estimated delivery volumes.
Due to the short duration remaining for the power option agreements and their insignificant dollar value, the Company has elected to
exclude these agreements from the below Level 3 disclosures.
The followingtable presents the quantitative information which was used to estimate the fairvalues of the Level 3 assets and liabilities
above as of December 3 I , 20 I 8 (dollars in thousands):
Fair Value
(Net) at
December 31,
20r8
Valuation
Technique Unobservable lnput Range
Power exchange agreement $(2,488) Surrogate facility
pricing
O&M charges
Transaction volumes
$40.05-$s2.s9lMWh (l)
173,465 MWhs
Natural gas exchange
agreement
(2,774) Internallyderived
weighted-average
cost ofgas
Forward purchase prices
Forward sales prices
Purchase volumes
Sales volumes
$1.44 - $1.88/mmBTU
$1.47 - $3.34lmrnBTU
I 15,000 - 310,000 mmBTUs
60,000 - 310,000 mmBTUs
( I ) The average O&M charges for the delivery year beginning in November 20 I 8 are $45.6 I per MWh.
FERC FORM NO. 2/3-Q (REV 12-07)122.40
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2\ A Resubmission
Date of Report
(Mo, Da, Yr)
04115t2019
Year/Period of Report
20181Q4
Notes to Financial Statements
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) forthe years ended Decenrber 3l (dollars in thousands):
Natural Gas
Exchange
Agreement
Power
Exchange
Agreement
Year ended December 31, 2018:
Balance as ofJanuary l,2018
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities ( l)
Settlements
Ending balance as of December 3 I , 201 8 (2)
Year ended December 31,2017:
Balance as ofJanuary 1,2017
Total gains or (losses) (realized/unrealized):
Included in regu latory assets/liabil ities ( I )
Settlernents
Ending balance as of December 31,2017 (2)
Total
$ (3,164) $ (t3,245) $ (16,409)
326
64
5,027
5,730
5 i51
5,794
$ (2,774) $ (2,488) S (s,262)
$ (s,88s) $ (13,44e) $ (1e,334)
7 )q)
(57r)
(7,674)
7,878
\4,382)
7,307
$ (3,164) $ (13,24s) $ (r6,4oe)
( 1) 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 frorn other categories ofany 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:
o 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,
r the hydroelectric licensing requirements of section l0(d) of the FPA (see Note I ), and
. certain requirements under the OPUC approval of the AERC acquisition in20l4. 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 fiom the OPUC.
As of December 31, 2018, the acquisition of the Company by Hydro One had not yet been terminated. As such, the Merger Agreement
was still in effect at that time. Under the Merger Agreement, the annual dividends were not to increase by more than $0.06 per year
over the 20 17 dividend rate, thus limiting annual dividends to $ I .49 per share.
FERC FORM NO. 2/3-Q (REV 12-07)122.41
Name of Respondent
Avista Corporation
This Report is:
(1) XAn Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t1512019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Now that the Merger Agreement has been terminated, the requirements of the OPUC approval of the AERC acquisition are the most
restrictive. Under the OPUC restriction, the amount available for dividends at December 3 I , 20 l8 was limited to $23 I . I million.
The Company has l0 million authorized shares of preferred stock. The Company did not have any preferred stock outstanding as of
December 3l, 2018 and 2017 .
Equifit Issuances
The Company has entered into four separate sales agency agreements under which the sales agents may offer and sell new shares ofthe
Company's common stock from time to time. No shares were issued under these agreements during 2018. These agreements provide
for the offering of a rnaximum of 3.8 million shares, of which approximately l.l rnillion remain unissued as of December 3 l, 2018.
Subject to the satisfaction of customary conditions (including any required regulatory approvals), the Company has the right to
increase the maximum number of shares that may be offered under these agreements.
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 clairns, controversies, disputes and other contingent matters involve litigation
or other contested proceedings. For all such matters, the Company intends to vigorously protect and defend its interests and pursue its
rights. However, no assurance can be given as to the ultimate outcome of any particular matter because litigation and other contested
proceedings are inherently subject to numerous uncertainties. For matters that affect Avista Corp.'s operations, the Company intends to
seek, to the extent appropriate, recovery ofincurred costs through the ratemaking process.
C alifor n ia Refu nd Proc ee ding
ln February 20 16, APX, a market maker in the California Refund Proceedings in whose markets Avista Energy participated in the
summer of 2000, asserted that Avista Energy and its other customer/participants may be responsible for a share of the disgorgement
penalty APX may be found to owe to Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric, the California
Attorney General, the California Department of Water Resources, and the Califomia Public Utilities Commission (together, the
"California Parties"). The penalty was the result of the FERC's finding that APX committed violations in the California market in the
summer of 2000. APX made these assertions despite Avista Energy having been dismissed in FERC Opinion No. 536 from the
on-going administrative proceeding at the FERC regarding potential wrongdoing in the California markets in the summer of 2000.
APX identified Avista Energy's share of APX's exposure to be as much as $ 16.0 million even though no wrongdoing allegations were
specifically attributable to Avista Energy. Avista Energy asserted its settlement with the California Parties in2014 insulated it from any
such liability and that as a dismissed party it would not be drawn back into the litigation. On May 3, 2018, the FERC issued an order,
Order on Compliance Filings, resolving in the Company's favor the last indirect exposure the Company had related to the California
Refund Proceedings. That order, which fully absolved the Company ofany further exposure, was not challenged and is now final and
not subject to appeal.
Cabinet Gorge Total Dissolved Gas Abatement Plan
Dissolved atmospheric gas levels (referred to as "Total Dissolved Gas" or "TDG") in the Clark Fork River exceed state of Idaho 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 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
FERC FORM NO.2/3-Q 1 122.42
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t20't9
Year/Period of Report
2018tQ4
Notes to Financial Statements
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, ofall operating and capitalized costs related to this issue.
C o llectiv e B arg aining Agreeme nts
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 Idaho representing the majority (approximately 90 percent)
of the Avista Corp.'s bargaining unit employees was approved in March 2016 and expires in March 2019. The Company is currently
negotiating a new agreement with the IBEW.
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 agreernents 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 lhe Proposed Acquisition by Hydro One
See Note l7 for information regarding the termination of the proposed acquisition of the Company by Hydro One.
In connection with the now terminated acquisition, three lawsuits were filed in the United States District Court for the Eastern District
of Washington and were subsequently voluntarily dismissed by the plaintiffs.
One lawsuit was filed in the Superior Court forthe State of Washington in and for Spokane County, captioned as follows:
c Fink v. Morris, e/ a/., No. 17203616-6 (filed September 15, 2017, arnended complaint filed October 25,2017).
This lawsuit was filed against Hydro One Limited, Olympus Holding Corp., Olyrnpus Corp. and Bank of America Merill 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. While Avista Corp. is not a narned defendant
in this lawsuit, the Company has the obligation to indemnify members of its Board of Directors.
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 cornplaint seeks
various remedies, including monetary damages, attorneys' fees and expenses. The complaint was stayed by the court until the closing
of the transaction at which time the plaintiff would have the option to file an amended complaint within 30 days of such closing. If the
amended complaint was not filed within the 30 days the suit would be dismissed. Since the transaction will not close, the status of this
lawsuit is unknown.
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.
2015 ltashington General Rate Cases
In January 2016,the Company received an order (Order 05) that concluded its electric and natural gas general rate cases that were
originally filed with the WUTC in February 2015. New electric and natural gas rates were effective on January 11,20'16.
FERC FORM NO. 2/3.Q (REV 12-07)122.43
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04115t2019
Year/Period of Report
20181Q4
Notes to Financial Statements
IVUTC Order Deryting Industrial Customers of Nortltwest Ulilities / Public Counsel Joint Motionfor Clarification, W(ITC Staff
Motion to Reconsider and WUTC StaffMotion to Reopen Record
In January 2016,the Industrial Customers of Northwest Utilities, the Public Counsel Unit of the Washington State Office of the
Attorney General (PC) and the WUTC Staff, which is a separate party in the general rate case proceedings from the WUTC Advisory
Staff, filed Motions for Clarification requesting the WUTC to clarifl, their attrition adjustment and the end result electric revenue
amounts. The Motions for Clarification suggested that the electric revenue decrease should have been significantly larger than what
was included in Order 05.
In February 2016, the WUTC issued an order (Order 06) denying the Motions summarized above and affrrming Order 05, including an
$8.1 million decrease in electric base revenue.
PC Petitionfor Judicial Review
In March 2016,PC filed in Thurston County Superior Court a Petition for Judicial Review of the WUTC's Order 05 and Order 06
described above. In April 20 I 6, this matter was certified for review directly by the Court of Appeals, an intermediate appellate court in
the State of Washington.
On August 7,2018, the Court of Appeals issued a "Published Opinion" (Opinion) which concluded that the WUTC's use of an attrition
allowance to calculate Avista Corp.'s rate base violated Washington law. In the Opinion, the Court stated that because the projected
additions to rate base in the future were not "used and useful" for service at the time the request for the rate increase was made, they
may not lawfully be included in the Company's rate base to justifr a rate increase. Accordingly, the Court concluded that the WUTC
erred in including an attrition allowance in the calculation of Avista Corp.'s electric and natural gas rate base. The Court noted,
however, that the law does not prohibit an attrition allowance in the calculation, for ratemaking purposes, of recoverable operating and
maintenance expense. Since the WUTC order provided one lump sum attrition allowance without distinguishing what portion was for
rate base and which was for operating and maintenance expenses or other considerations, the Court struck all portions ofthe attrition
allowance attributable to Avista Corp.'s rate base and reversed and remanded the case for the WUTC to recalculate Avista Corp.'s
rates without including an attrition allowance in the calculation of rate base. On October I , 20 I 8, the Court of Appeals terminated its
review of this case, remanding it back to the Thurston County Superior Court.
The total attrition allowance approved by the WUTC in Order 05 and reaffirmed in Order 06 was $35.2 million, with $28.3 million
related to electric and $6.9 million related to natural gas. The Company believes the potential amount to return to customers is limited
to the 2015 general rate cases because in subsequent Washington general rate cases (specifically those approved in April 2018), the
WUTC did not include any attrition allowance on rate base. Even though the Company believes the issue only relates to the 2015
general rate cases, the Company cannot predict the outcome of this matter at this time and cannot estimate how much, if any, of the
attrition allowance may be removed from the general rate cases or if other amounts fiom subsequent general rate cases will be
included. The Company will participate in any regulatory process that is yet to be established by the WUTC.
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 {2-07)122.44
Name of Respondent
Avisla Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
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 or AEL&P'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, of
all operating and capitalized costs related to these issues.
Under the federal licenses for its hydroelectric projects, the Cornpany is obligated to protect its property rights, including water rights.
In addition, the company holds additional non-hydro water rights. The state of Montana is examining the status of all water right claims
within state boundaries through a general adjudication. Claims within the Clark Fork River basin could adversely affect the energy
production of the Company's Cabinet Gorge and Noxon Rapids hydroelectric facilities. The state of Idaho has initiated adjudication in
northern Idaho, which will ultimately include the lower Clark Fork River, the Spokane River and the Coeur d'Alene basin. The
Company is and will continue to be a participant in these and any other relevant adjudication processes. The complexity of such
adjudications makes each unlikely to be concluded in the foreseeable future. As such, it is not possible for the Company to estimate the
impact of any outcome at this time. The Company will continue to seek recovery, through the ratemaking process, of all operating and
capitalized costs related to this issue.
NOTE 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:
o short-term wholesale market prices and sales and purchase volumes,
o the level, availability and optimization of hydroelectric generation,
o the level and availability ofthermal generation (including changes in fuel prices),
o retail loads, and
o 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,
netofwholesalesalesandsalesoffuel,andtheamountincludedinbaseretailratesforWashingtoncustomersand deferthese
differences (over the $4.0 million deadband and sharing bands) for future surcharge or rebate to customers. For 20 I 8, the Company
recognized a pre-tax benefit of $6.1 million under the ERM in Washington compared to a benefit of $4.6 million for 2017 . Total net
deferred power costs under the ERM were a liability of $34.4 million as of December 3 I , 201 8 and a liability of $23 .7 million as of
December 31, 2017 . These deferred power cost balances represent amounts due to customers. These deferred power cost balances
represent amounts due to customers. Pursuant to WUTC requirements, should the cumulative deferral balance exceed $30 million in
the rebate or surcharge direction, the Cornpany must make a filing with the WUTC to adjust customer rates to either return the balance
to customers or recover the balance from customers. Avista Corp. makes an annual filing on or before April I of each year to provide
FERC FORM NO. 2/3-Q (REV 12-07)'122.45
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
the opportunity for the WUTC staffand other interested parties to review the prudence of and audit the ERM deferred power cost
transactions for the prior calendar year. The filing in 2019 will also contain a proposed rate adjustment or refund, effective July l,
2019, due to the rebate balance exceeding $30 million.
Avista Corp. has a PCA mechanism in Idaho that allows it to modifr electric rates on October I of each year with IPUC approval.
Under the PCA mechanism, Avista Corp. defers 90 percent of the difference between certain actual net power supply expenses and the
amount included in base retail rates for its Idaho customers. The October I rate adjustments recover or rebate power costs deferred
during the preceding July-June twelve-month period. Total net power supply costs deferred under the PCA mechanism were a liability
of $7.6 million as of December 31, 201 8 and a liability of $6.1 million as of Decemb er 31 ,2017 . 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 $40.7 million
as of December 31, 2018 and a liability of $37.5 million as of December 31,2017 . 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 custorners in certain customer rate classes and assumed "norrnal" 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.
Washinglon 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.In February 2019, the WUTC approved an all-party agreement that extends the life of the mechanisms
throughtheendoftheCompany'snextgeneral ratecase,orApril l,2020,whichevercomesfirst. Inthatgeneralratecasethe
Company will seek to either make pennanent or extend the mechanisms for an additional rnulti-year tenn. 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 of rebate rate adjustments.
The decoupling mechanisms each include an after-the-fact earnings test. At the end ofeach 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
ofexcess earnings are rebated to customers through adjustments to decoupling surcharge or rebate balances. See below for a summary
of cumulative balances under the decoupling and earnings 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
Washingtondecouplingmechanisms)foraninitial termofthreeyears,beginningJanuary l,2016.Duringthefirstquarterof20 l8,the
FCA in Idaho was extended for a one-year term through Decetnber 3l , 2019. The Company expects to seek an extension of the FCAs
in its next general rate case, expected in the second quarter of2019.
FERC FORM NO. 2/3-Q (REV 12-07)122.46
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t't5t2019
Year/Period of Report
2018tQ4
Notes to Financial Statements
Ore gon Dec oupl i ng Me chani sm
In February 2016,the OPUC approved the irnplernentation of a decoupling mechanism for natural gas, sirnilar 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. In 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-third of the earnings above the 100 basis points would be deferred and later returned to customers. The eamings review is separate
from the decoupling mechanism and was in place prior to decoupling. See below for a summary of cumulative balances under the
decoupling and earnings sharing mechanisms.
Cumulative Decoupling and Earnings Shoring Mechanism Balances
As of December 31, 2018 and December 31,2017, 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,
2018 2017
Washington
Decoupling surcharge
Provision for earnings sharing rebate
Idaho
Decoupling surcharge
Provision for earnings sharing rebate
Oregon
Decoupling rebate
Provision for earnings sharing rebate
$
$
12,67t $
(6e3)
2,1s0 $
(77 4)
14,240
(3,420)
3,47 t
(2,3s0)
$ (898) $ (1,168)
NOTE 17. TERMINATION OF PROPOSED ACQUISITION BY HYDRO ONE
On July 19,2017, Avista Corp. entered into a Merger Agreement that provided for Avista Corp. to become an indirect, wholly-owned
subsidiary of Hydro One, subject to the satisfaction or waiver of specified closing conditions, including approval by regulatory
agencies. 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. comrnon stock that are owned by Hydro One and its affiliates, were to be converted autornatically into the right to receive an
amount in cash equal to $53, without interest.
Deniol by Regulalory Commissions
The closing ofthe acquisition was subject to various conditions, including, among others, receipt ofregulatory approval from the
WUTC, IPUC, MPSC, OPUC, and the RCA.
Washington - On March 27 , 2018, Avista Corp. and Hydro One filed an all-parties (including the WUTC Staffl, all-issues settlement
agreement with the WUTC recommending approval of the acquisition of the Company by Hydro One. The settlement agreement was
subject to WUTC approval.
On December 5, 2018, the Company and Hydro One received a decision from the WUTC, denying the proposed acquisition. On
December 17 , 2018, the Company and Hydro One filed a petition requesting that the WUTC reconsider its December 5, 20 18 order
FERC FORM NO. 2/3-Q (REV 12-07)122.47
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original(21 A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t20't9
Year/Period of Report
2018tQ4
Notes to Financia! Statements
denying approval of the acquisition, together with a petition requesting that the WUTC rehear the matter to accept new evidence.
Under Washington State law, the WUTC had 20 days to act on the petition for reconsideration.
On January 8, 2019, the WUTC provided notice of its deemed denial by operation of law of the filed petition to reconsider the denial
of approval for the acquisition. The WUTC did not take action on the petition within the required 20 days of its filing so the petition
was automatically denied under the state's Administrative Procedure Act. In the same notice, the WUTC also denied the petition for a
rehearing on the basis that it does not apply.
Idaho - On April 13,2018, Avista Corp. and Hydro One filed an all-issues settlement agreement (to which the IPUC Staff was a party)
with the IPUC recommending approval of the acquisition of the Company by Hydro One. The settlement agreement was subject to
IPUC approval.
On January 3 , 2019, the Company and Hydro received a decision from the IPUC, finding that the proposed acquisition was not
permitted by ldaho law Avista Corp. and Hydro One had until January 24,2019 to file a petition for reconsideration with the IPUC,
which they did not file.
Oregon - On May 25, 2018, Avista Corp. and Hydro One filed an all-parties (including the OPUC Staff), all-issues settlement
agreement with the OPUC related to the Oregon merger proceeding. The settlement agreement was subject to review and approval by
the OPUC.
On January 15,2019, due to the denial of the acquisition by the WUTC and IPUC, the OPUC issued an order suspending indefinitely
the procedural schedule in its rnerger docket until Hydro One and Avista Corp. informed the OPUC that they had sought a reversal of
the denial decisions through appeal or other means that would provide a justiciable issue for the OPUC to address.
Termination of the Merger Agreement
On January 23,2019, Avista Corp., Hydro One and certain subsidiaries thereoi entered into a Termination Agreement indicating their
mutual agreement to terminate the Merger Agreement, effective irnmediately. Pursuant to the tenns of the Termination Agreement,
Hydro One paid Avista Corp. a $103 million termination fee on January 24,2019. The termination fee will be used for reimbursing the
Company's transaction costs incurred from 2017 to2019. The balance of the termination fee remaining after payrnent of 2019
transaction costs and applicable income taxes will be used for general corporate purposes and reduces the Company's need for external
financing.
Other Information Related to the Terminated Acquisition
Due to the termination of the acquisition, all the financial commitments that were included in the various settlement agreements with
the commissions for the proposed acquisition will not occur.
The Company incurred significant acquisition costs associated with the acquisition consisting primarily of consulting, banking fees,
legal fees and employee time, and these costs are not being passed through to customers. When the Company was assuming the
transaction was going to be completed, a significant portion of these costs were not deductible for income tax purposes. Now that the
transaction has been terminated, the Company expects more of the previously incurred transaction costs to be deductible so it expects
additional tax benefits from these costs in 2019.
See Note l5 for discussion of shareholder lawsuits filed against the Company, the Company's directors, Hydro One, Olyrnpus Holding
Corp., and Olympus Corp. in relation to the Merger Agreernent and the proposed acquisition.
NOTE 18. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow infonnation consisted of the following items for the years ended December 3l (dollars in thousands):
201'7 2016
FERC FORM NO. 2/3-Q (REV 12-07)122.48
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20't8to.4
Notes to Financial Statements
Cash paid for interest
Cash paid for incorne taxes
Cash received for income tax refunds
$90,394 $
16.576
(3,02s)
88,368
3.832
(46,916',)
FERC FORM NO. 2/3-Q (REV 12-07)122.49
This Page Intentionally Left Blank
Avista Corporation (1)
(2)
An Original
A Resubmission
uale ol Repon(Mo, Da, Yr)
04115t2019
YeaflPenoo or Kepon
End of 201 8/Q4
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion
Line
No.
Item
(a)
Total Company
For the Current
Quarter^/ear
1 UTILITY PLANT
2 ln Service
Plant in Service (Classified)5,995,428,313
4 Property Under Capital Leases
5 Plant Purchased or Sold 286,320
6 Completed Construction not Classified
7 Experimental Plant Unclassified
a TOTAL Utility Plant (Total of lines 3 thru 7)5,995,714,633
o Leased to Others
'10 Held for Future Use 9,036,047
11 Construction Work in Progress 156,563,570
12 Acquisition Adjustments
13 TOTAL Utility Plant (Total of lines 8 thru 12)6,161,314,250
14 Accumulated Provisions for Depreciation, Amortization, & Depletion 't ,991 ,240,383
15 Net Utility Plant (Total of lines '13 and 14)4,170,073,867
16 DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17 ln Service:
18 Depreciation 1,895,743,265
19 Amortization and Depletion of Producing Natural Gas Land and Land Rights
20 Amortizalion of Underground Storage Land and Land Rights
21 Amortization of Other Utility Plant 95,497,118
22 TOTAL ln Service (Total of lines '18 thru 21)1,991 ,240,383
23 Leased to Others
24 Depreciation
25 Amortization and Depletion
26 TOTAL Leased to Others (Total of lines 24 and 25)
Held for Future Use
,a 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)1,991,240,383
FERC FORM NO.2 (12-96)Page 200
Name Date(Mo,Avista Corporation (1)
(2\
An Original
A Resubmission 04t15t2019
Year/Period of Report
End of 2018/Q4
Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued)
Line
No.
Electric
(c)
Gas
(d)
Other (speciff)
(e)
Common
(f)
1
2
3 4,157,842,860 't,238,294,830 599,290,623
4
I 286,320
6
7
8 4,158,129,180 1,238,294,830 599,290,623
o
't0 8,1 30,526 190,585 714,936
11 1 13,91 8,7'10 4,595,404 38,049,456
12
13 4,280,178,416 1 ,243,080,819 638,055,0'15
14 I ,450,183,'t 04 378,705,925 162,35't ,354
15 2,829,995,312 864,374,894 475,703,661
t0
17
18 1,426,663,880 377,778,951 91,300,434
19
20
21 23,519,224 926,974 71,050,920
22 1 ,450, 183,1 04 378,705,925 162,351 ,354
aa
24
25
26
27
28
29
30
31
1 ,450,183,1 04 378,705,925 162,351,354
FERC FORM NO.2 (12-96)Page 2O1
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
ReDort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period ot Report
End of 2018/Q4
Gas Plant in Service (Accounts 1O'1,1O2, {03, and 105)
1. Report belowthe original cost ofgas 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. Classify Account 106 according to prescribed accounts, on an
estimated basis if necessary, and include the entries in column (c).Also to be included in column (c) are entries for reversals of tentative distributions of
prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary
accounts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to
the account for accumulated depreciation provision. lnclude also in column (d) reversals of tentative distributions of prior year's unclassified retirements.
Attach supplemental statement showing the account distributions of these tentative classifications in columns (c) and (d),
Line
No.
Account
(a)
Balance at
Beginning of Year
(b)
Additions
(c)
1 INTANGIBLE PLANT
2 301 Organization
3 302 Franchises and Consents
4 303 MiscellaneouslntangiblePlant 2,880,555 36,309
(TOTAL lntangible Plant (Enter Total of lines 2 thru 4)2,880,555 36,309
6 PRODUCTION PLANT
7 Natural Gas Production and Gathering Plant
8 325.1 Producing Lands
o 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 Struclures
14 327 Field Compressor Station Structures
15 328 Field Measuring and Regulating Station Equipment
16 329 Other Structures
41 330 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
336 PurificationEquipment
24 337 Other Equipment
ct 338 Unsuccessful Exploration and Development Costs
to 339 Asset Retirement Costs for Natural Gas Production and
TOTAL Production and Gathering Plant (Enter Total of lines 8
PRODUCTS EXTRACTION PLANT
29 340 Land and Land Rights
30 341 Structures and lmprovements
3'1 342 Extraction and Refining Equipment
343 Pipe Lines
aa 344 Extracted Products Storage Equipment
FERC FORM NO.2 (r2-96)Page 204
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lX.lAn Original
l-lA Resubmission
Date of Reoort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Plant in Service (Accounts 10'1,102,103, 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 106 will avoid serious omissions of respondent's reported amount for plant actually in service at end of year.
6. Show in column (f) reclassifications or transfers within utility plant accounts. lnclude also in column (0 the additions or reductions of primary account
classifications arising from distribution of amounts initially recorded in Account 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 (f) only the offset to the debits or
credits to primary account classifications.
7. For Account 399, state the nature and use of plant included in this account 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 'l 02, state the property purchased or sold, name of vendor or purchaser,
and date of transaction. lf proposed joumal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of
such filing.
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End of Year
(s)
1
2
J
4 2,916,864
5 2,916,864
6
7
I
o
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
71
22
FERC FORM NO.2 (12-96)Page 2Os
Name of Respondent
Avista Corporation
ThiS
(1)
(2')
Reoort ls:
lI-lAn Original
f-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period ol Report
End of 2018/Q4
Gas Plant in Service (Accounts 101,1O2,103, 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
a1 348 Asset Retirement Cosls for Products Extraction Plant
38 TOTAL Products Extraction Plant (Enter Total of lines 29 thru 37)
39 TOTAL Natural Gas Production Plant (Enter Total of lines 27 and
40 Manufactured Gas Production Plant (Submit Supplementary 7,628
41 TOTAL Production Plant (Enter Total of lines 39 and 40)7,628
42 NATURAL GAS STORAGE AND PROCESSING PLANT
43 Underground Storage Plant
44 350.1 Land 1,306,601
45 350.2 Rights-of-Way 59,812
46 351 Structures and lmprovements 2,407,983 470,245
47 352 Wells 14,166,928 470,245
48 352.1 Storage Leaseholds and Rights 254,354
49 352.2 Reservoirs 1,667,492
50 352.3 Non-recoverable Natural Gas 5,810,31 1
51 353 Lines 1 ,1 06,781
52 354 Compressor Station Equipment 15,378,230 470,245
355 Other Equipment 1j84,923 470,245
54 356 PurificationEquipment 403,712
(E 357 Other Equipment 2,485,602 470,244
56 358 Asset Retirement Costs for Underground Storage Plant
57 TOTAL Underground Storage Plant (Enter Total of lines 44 thru 46,232,729 2,351,224
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
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
FERC FORM NO. 2 (12-s6)Page 206
Name of Respondent
Avista Corporation
This
(1)
(2t
Reoort
lx_lAn
ls:
Original
[-l A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Plant in Service (Accounts '101, 102, 103, and 'l 06) (continued)
Line
No.
Retirements
(d)
Adjustments
(e)
Transfers
(0
Balance at
End of Year
(s)
34
35
36
40 7,628
41 7,628
42
43
44 1,306,601
45 59,812
46 2,878,228
47 254,354 14,891,527
48 ( 254,354)
49 1,667,492
50 s,810,311
51 1,106,781
52 15,848,475
53 1,655,168
54 403,7',t2
EC 19,003 2,936,843
56
57 19,003 48,564,950
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
/b
77
ao
79
80
FERC FORM NO.2 (12-s6)Page 207
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
f-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Pfant in Service (Accounts 101,102,103, 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 57,46,232,729 2,351,224
82 TRANSMISSION PLAN
83 365.'1 Land and Land Rights
84 365.2 Rights-of-Way
85 366 Structures and lmprovements
86 367 Mains
6t 368 Compressor Station Equipment
88 369 Measuring and Regulating Stalion Equipment
89 37O Communication Equipment
90 371 Other Equipment
91 372 Asset Retirement Costs for Transmission Plant
92 TOTAL Transmission Plant (Enter Totals of lines 83 thru 91)
93 DISTRIBUTION PLANT
94 374 Land and Land Rights 920J02 253,449
o4 375 Structures and lmprovements 1,354,564 492,194
96 376 Mains 547,688,874 50,146,864
97 377 Compressor Station Equipment
oa 378 Measuring and Regulating Station Equipment-General 12,181,O34 366,289
oo 379 Measuring and Regulating Station Equipment-City Gate 9,087,273 123.051
100 380 Services 332,999,643 36,918,548
101 381 Meters 123,444,538 7,860,476
102 382 Meterlnstallations
103 383 House Regulators
104 384 House Regulator lnstallations
'105 385 lndustrial Measuring and Regulating Station Equipment 4,997,477 811 ,715
106 386 Other Property on Customers' Premises
107 387 Other Equipment s39
108 388 Asset Retirement Costs for Distribution Plant
109 TOTAL Distribution Plant (Enter Total of lines 94 thru 108)1,032,674,044 96,972,586
110 GENERAL PLANT
111 389 Land and Land Rights 3,367,309 239,812
112 390 Structures and lmprovements 7,160,856 15,905,931
'l 13 391 Office Furniture and Equipment 736,399 829,003
114 392 TransportationEquipment 16,989,163 1,857,028
1 'ls 393 Stores Equipment 136,789
116 394 Tools, Shop, and Garage Equipment 7,673,669 633,848
117 395 LaboratoryEquipment 340,946 28.540
118 396 Power Operated Equipment 3,996,44'1 99,967
119 397 CommunicationEquipment 3,545,025 287,337
120 398 MiscellaneousEquipment 2,367
121 Subtotal (Enter Total of lines 1 1 1 thru 120)43,948,964 19,881,466
122 399 Other Tangible Property
123 399.1 Asset Retiremenl Costs for General Plant
124 TOTAL General Plant (Enter Total of lines 121 , '122 and '123)43,948,964 19,881 ,466
125 TOTAL (Accounts '101 and 106)1,125,743,920 119,241,585
126 Gas Plant Purchased (See lnstruction 8)
127 (Less) Gas Plant Sold (See lnstruction 8)
128 Experimental Gas Plant Unclassified
129 TOTAL Gas Plant ln Service (Enter Total of lines 125lhru 128)1,125,743,920 119,241,585
FERC FORM NO.2 (12-96)Page 208
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lxlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
Gas Plant in Service (Accounts 1O1,102,103, and 106) (continued)
Line
No
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance at
End ofYear
(s)
8'r 19,003 48,564,950
82
6J
84
OE
86
87
oo
89
90
9'r
92
o2
94 1,506 7,330 1,',t79,375
95 81,839 38,1 01 1,803,020
96 706,348 90,839 597,220,229
97
98 496,068 ( 83,474)11,967,781
99 441.448 ( 47,207)8,72't,669
100 308,810 9.721 369,619,102
101 2,767,972 't28,537,042
102
103
104
105 20,122 5,789,070
106
107 539
108
109 4,824,113 15,3'10 1,124,837,827
110
111 3,607,121
112 23,945 23,042,842
113 378.871 1 , 186,531
114 1,135,236 17,710,955
115 23,988 112,80',1
116 137,328 8,1 70,1 89
117 45,311 324,175
118 4,096,408
I 't9 102,880 ( 15,310)3,714,172
120 2,367
121 1,847,559 ( 15,310)61 ,967,561
122
123
124 '1 ,847,559 ( 15,310)61 ,967,561
125 6,690,675 't,238,294,830
126
127
128
129 6,690,675 1,238,294,830
FERC FORM NO.2 (12-s6)Page 209
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
[xlAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Reporl
End of 2018/Q4
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 0riginally 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 03t0'u2007 '190,585
2 located in Coeur d'Alene, ldaho
4
5
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
31
32
33
u
35
36
37
38
ao
40
41
42
43
44
45 Total 190,585
FERC FORM NO.2 (12-96)Page 214
3
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lX.lAn Original
!A Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
Construction Work in Progress-Gas (Account {07)
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 1 ,858,215 8,772,048
2 Minor Projects under $1,000,000:
3 Gas Replace-St&Hwy 587,634 126,578
4 Cathodic Protection-Minor Blanket s25,883 92,042
5 Regulator Reliable - Blanket 324,077 1,244,629
6 Gas Revenue Blanket 313,633 377,420
7 Transportation Equip 305,651 54,655
B Gas Op Qual - Tooling, Vehicles and Material 234,',t93 90,807
o Cheney HP Reinforcement 145,459 2,999,262
10 Endpoint Compute and Productivity Systems 88,433 61,567
11 Rathdrum Prairie HP Gas Reinforcement 55,825 2,491,016
12 Gas Reinforce-Minor Blanket 54,907 34,444
13 Gas Telemetry 39,987 95,880
14 Environmental Control & Monitoring Systems 29.458
15 NSC Greene St HP Gas Main 28.344
16 Gas ERT Minor Blanket 9,346 39,500
17 Gas Regulators Minor Blanket 5,579
18 Structures & lmprov 3,757 479
19 COF Long Term Restructuring Plan Phase 2 2,657 17,064
20 Replace Deleriorating Gas System 49.273
21 Gas Meters Minor Blanket 399 99,559
22 Facilities Driven Technology lmprovements 279 49,686
23 Gas Distribution Non-Revenue Blanket ( 18,970)108,7'19
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total 4,595,404 16,804,628
FERC FORM NO.2 (12-96)Page 216
658
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
General Description of Construction Overhead Procedure
1. For each construction overhead explain: (a) the nature and extent ofwork, 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 the 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. Where a net-of{ax rale for borrowed funds is used, show the appropriate tax effect adjustment to the computations below in a manner that
clearly indicates the amount 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 pro1ects 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.
FERC FORM NO. 2 (REV 12-07)218.1
Name of Respondent
Avista Corporation
This
(1)
(2',)
Reoort
lxl An
ls:
Original
l-l A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Goneral Description of Construction Overhead Procedure (continued)
COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES
1. For line (5), column (d) belovu, enter he rate granted in he last rate proceeding. lf not available, use the average rate earned during the preceding 3 years.
2. ldenti!, in a foohote, the specific entity used as he source for he capital sbuc{ure figures.
3. lndicate, in a footnote, if the reported rate of return is one that has been approved in a rate case, black-box settement rate, or an actual three-year 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)
('l) Average Short-Term Debt S 58,2 I 5,068
(2) Short-Term lnterest S 3.00
(3) Long-Term Debt D 1,668,000,000 49.04 d s.34
(4) Preferred Stock P p
(5) Common Equity C 1,737,860,969 50.96 c 9.50
(6) Total Capitalization 3,405,860,969
(7) Averaqe Construction Work ln Progress Balance 1 62,896,875
2. Gross Rate for Borrowed Funds s(SAl{ + d[(D/(D+P+C)) (1-(S^/v))]2.75
3. Rate for Other Funds [1-(S^/v)] [p(P/(D+P+C)) + C(C/(D+P+C))]3.12
4. Weighted Average Rate Actually Used for the Year:
a. Rate for Borrowed Funds -
b. Rate for Other Funds -
3.00
3.12
FERC FORM NO.2 (REV 12-07)Page 2'l8a
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
l-I-lAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1st2019
Year/Period of Reporl
End of 20'18/Q4
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108)
1. Explain in a footnote any important adjustments during year.
2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas
plant in service, page 204-209, column (d), excluding retirements of nondepreciable property.
3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. lf the respondent has a significant amount of plant retired at year end which has not been
recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize
the book cost of the plant retired. ln addition, include all costs included in retirement work in progress at year end in the appropriate
functional classifi cations.
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, etc.
Line
No.
Item
(a)
Total
(c+d+e)
(b)
Gas Plant in
Service
(c)
Gas Plant Held
for Future Use
(d)
Gas Plant Leased
to Others
(e)
Section A. BALANCES AND CHANGES DURING YEAR
1 Balance Beginning of Year 356,537,862 356,s37,862
2 Depreciation Provisions for Year, Charged to
(403) Depreciation Expense 26,994,029 26,994,029
4 (403.1 ) Depreciation Expense for Asset Retirement Costs
5 (41 3) Expense of Gas Plant Leased to Others
6 Transportatron Expenses - Clearing 2,044,607 2,044,607
7 Other Clearing Accounts
8 Other Clearing (Specify) (footnote details):
0
10 TOTAL Deprec. Prov. for Year (Total of lines 3 thru 8)29,038,636 29,038,636
11 Net Charges for Plant Retired:
12 Book Cost of Plant Retired ( 6,690,673)( 6,690,673)
13 Cost of Removal ( 103,01 1)( 103,01 1)
14 Salvage (Credit)( 22,233)( 22,233]|
15 TOTAL Net Chrgs for Plant Ret. (Total of lines '12 thru 14)( 6,771,451)( 6,771,451]|
16 Other Debit or Credit ltems (Describe) (footnote details):( 1,026,096)
17
't8 Book Cost of Asset Retirement Costs
't9 Balance End of Year (Total of lines 1,10,15,'16 and '18)377,778,951 377,778,951
Section B. BALANCES AT END 0F YEAR ACCORDING T0
FUNCTIONAL CLASSIFICATIONS
21 Productions-Manufaciu red Gas
22 Production and Gathering-Natural Gas
23 Products Extraction-Natural Gas
24 Underground Gas Storage 17,610,170 17,610,170
25 Other Storage Plant
26 Base Load LNG Terminaling and Processing Plant
Transmission
28 Diskibution 340,259,784 340,259,784
29 General 1 9,908,997 19,908,997
30 TOTAL (Total of lines 21 thru 29)377,778,951 377,778,951
FERC FORM NO.2 (12-96)Page 219
( r,02s,0r6
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
219 Line No.: 16 Column: c
Change in RemovalWork in Progress ($1,263,580)
AFUDC Adjustment ($3,209)
Correction of Gas Storage Lease from Capital Lease (101.1) $240,693
FERC FORM NO.2 552.1
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lxlAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Stored (Accounts 117.1,117.2, 1'17.3, 117.4, 164.1,164.2, and 164.3)
1. lf during the year adjustments were made lo the stored gas inventory reported in columns (d), (0, (S), and (h) (such as to correct cumulative inaccuracies
of gas measurements), explain in a footnote 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 current and noncurrent portions. Also, state in a footnote the method used to report
storage (i.e., fixed asset method or inventory method).
-ine
No
Description
(a)
(Account
117.1)
(b)
(Account
't17.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Current
(Account
164.1)
(D
LNG
(Account
164.2)
(s)
LNG
(Account
164.3)
(h)
Total
(i)
1 Balance at Beginning of 6,992,076 1 1,738,607 18,730,683
Gas Delivered to Storage 19,279,491 19,279,491
3 3as Withdrawn from 19,408,914 19,408,S14
4 Cther Debits and Credits
5 Balance at End of Year 6,992,076 1 1,609,184 18,601,260
6 Dth 1,253,060 6,323,38i 7,576,447
7 Amount Per Dth 5.580(1.835!2.4551
FERC FORM NO.2 (REV 04-04)Page 220
Name of Respondenl
Avista Corporation
This
(1)
(2\
Reoort
LXI An
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
o4115t2019
Year/Period of Report
End of 2018/Q4
lnvestments (Account 123, 124, and '136)
'1. Report below investments in Accounts 123, lnvesfunents in Associated Companies, 124, Other lnvestments, and 136, Temporary Cash lnvestrnents.
2. Provide a subheading for each account and list thereunder the information called for:
Temporary Cash lnvestments, also may be grouped by dasses.
(b) lnvestmentAdvances-ReportseparatelyforeachpersonorcompanytheamountsofloansorinvesbnentadvanceshatareproperlyindudableinAccountl23. lndudeadvances
subjecttocurrentrepaymentinAccountl45andl46. Withrespec{toeachadvance,showwhethertheadvanceisanoteoropenaccount.
Line
No.
Description of lnvestment
(a)(b)
Book Cost at Beginning of Year
(lf book cost is different from
mst to respondent, give cost to
respondent in a footnote and
explain difference)
(c)
Purchases or
Additions
During the Year
(d)
1 lnvestrnent in Spokane Energy (123000)
2 lnvestrnent in Avista Capital ll (123010)11,547,000
3 Other lnvestment - WZN Loans Sandpoint (1 24350)59,355
4 Other lnvestrnent - Coli Cash Value (124600)23,885,740
5 Other lnvestrnent - Coli Borrowings ('124610)( 23,885,740)
6 Other lnvestrnent - WZN Loans Oregon (124680)20,009
7 Other lnvestrnent - WNP3 Exdrange Power (124900)79,626,000
8 Other lnvestrnent - AMT WNP3 Exchange (124930)( 75,543,008)
0 Temp Cash lnvestrnents (136000)50,305
10 Energy Commodity Contract (124020)
11 Other lnvesbnentNon Affilicated LT Note Rec (124820)126,419
12
'13
14
15
to
17
18
19
20
21
22
)1
t+
25
26
27
to
,o
30
3l
21
34
35
36
37
2a
39
40
FERC FORM NO.2 (12-96)Page 222
Name of Respondent
Avista Corporation
This Reoort ls:(1) lrlAn Original(2) fl A Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End ot 2018/Q4
lnvestments (Account 123, 124, and 1 36) (continued)
3. Designate with an asterisk in mlumn (b) any securities, notes or acmunts that were pledged, and in a footnote state the name of pledges and purpose of the pledge.
number.
5. Report in column (h) interest and dividend revenues from investrnents including such revenues from securities disposed of during the year.
6. ln column (i) report for ead investment disposed of during the year the gain or loss represented by the difference between cost of the investrnent (or the other amount at which
canied in the books of account if different from cost) and the selling price thereol not including any dividend or interest adjustrnent indudible in column (h).
Line
No.
Sales or Other
Dispositions
During Year
(e)
Principal Amount or
No. of Shares at
End ofYear
(0
Book Cost at End of Year
(lf book cost is different from cost
to respondent, give cost to
respondent in a footnote and
explain difference)
(s)
Revenues for
Year
0)
Gain or Loss from
lnvestrnent
Disposed of
(i)
1
2 't 1,547,000
a 59,355
4 ( 2,335,962)26,221,702
5 2,335,962 ( 26,221,702)
6 1,254 18,755
7 79,626,000
8 2,450,031 ( 77,993,039)
o ( 86,408)136,713
10
11 126,419
12
13
14
15
16
17
18
19
20
21
22
l5
24
25
26
27
28
29
30
31
32
34
1E
36
aa
2q
20
40
FERC FORM NO.2 (12-96)Page 223
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIl An Original
l-l A Resubmission
Date of Report(Mo, Da, Y0
04t15t2019
Year/Period of Report
End of 2018/Q4
lnvestments in Subsidiary Companies (Account {23.'l)
1. Report below investrnents in Account 123.1, lnvestrnents in Subsidiary Companies.
2. Provide a subheading for each mmpany and list thereunder the information called for below. Sub{otal by company and give a total in mlumns (e), (0, (g) and (h).
(a) lnvesbnent 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 givrng date of issuance, maturity date, and specifiing whether note is a renewal.
3. Reportseparatelytheequityinundistributedsubsidiaryearningssinceacquisition. Thetotal incolumn(e) shouldequal theamountenteredforAccount4'18.1.
Line
No.
Descriptron of lnvestrnent
(a)
Date
Acquired
(b)
Date of
Maturity
(c)
Amount of
lnvestment at
Beginning of Year
(d)
1 lnvestment in Avista Capital 01l01t't997 206,1 38,971
2 Avista Capital - Equity in Earnings ( 153,588,304)
J lnvestment in AERC oTto'12014 89,816,380
4 AERC- Equity in Earnings 18,764,635
5
6
7
8
0
10
11
12
13
14
15
16
17
18
19
20
tt
22
t5
24
25
26
28
29
30
31
32
11
34
35
Jb
3t
38
39
40 TOTAL Cost of Account I 23.1 $TOTAL 161,131 ,682
FERC FORM NO.2 (12-96)Page 224
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
IIlAn Original
!A Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
lnvestments in Subsidiary Companies (Account 123.1) (continued)
4. Designate in a footnote, any securities, notes, or accounts that were pledged, and state the name of pledgee and purpose of the pledge.
docket number.
6. Report in column (f) interest and dividend revenues from investnents, including such revenues from searrities disposed of during the year.
7. ln mlumn (h) report for each investment disposed of during he year, the gain or loss represented by the difference between cost of the investment (or he other amount at which
carried in tre books of account if different fom cost), and the selling price thereof, not including interest adiustrnents indudible in column (f).
8. Report on Line 40, column (a) the total cost of Account 1 23.1.
Line
No.
Equity in Subsidiary
Eamings for Year
(e)
Revenues for Year
(0
Amount of lnvestment
at End of Year
(s)
Gain or Loss from
lnvestment
Disposed of
(h)
1 206,1 38,971
2 ( 5,660,1s2)( 159,248,496)
3 89,816,380
4 8,052,196 10,000,000 16,816,83'l
5
6
7
8
I
10
11
12
41
14
15
'16
17
18
'19
20
21
22
,7
24
25
26
27
28
,o
30
31
32
11
34
35
36
71
38
39
2,392,OO4 10,000,000 153,523,686
FERC FORM NO.2 (12-96)Page 225
40
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
finn originat
l-l A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.{), Unrecovered Plant and Regulatory Study Costs (Acct 182.2)
PREPAYMENTS (ACCOUNT 1 6s)
1. Report below the particulars (details) on each prepayment.
Line
No.
Nature of Payment
(a)
Balance at End
of Year
(in dollars)
(b)
1 Prepaid lnsurance 2,025,111
2 Prepaid Rents
3 Prepaid Taxes 4,306,049
4 Prepaid lnterest
A Miscellaneous Prepayments 1 3,876,366
6 TOTAL 20,211,526
FERC FORM NO.2 (12-96)Page 23Oa
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
o4t15t2015
Year/Period of Report
2018tQ4
FOOTNOTE DATA
230 5 Column: b
10,778,461 of which is software fees
FERC FORM NO. 2 (12-96)Page 552.1
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIl An Original
I-lA Resubmission
Date of Report(Mo, Da, YQ
04t15t2019
Year/Period of Report
End of @l!/Q[
Other Regulatory Assets (Account 182.3)
1. Report below the details called for concerning other regulatory assets which are created through the ratemaking actions of regulatory agencies (and not includable
in other accounts).
2. For regulatory assets being amortized, show period of amortization in column (a).
3. Minor items (5% of the Balance at End of Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes.
4. Report separately any "Deferred Regulatory Commission Expenses" that are also repo(ed on pages 350-351, Regulatory Commission Expenses.
5. Provide in a footnote, for each line item, the rEulatory citation where authorization for the regulatory assel has been granted (e.9. Commission Order, state
commission order, court decision).
Line
No.
Description and Purpose of
Other RegulatoryAssets
(a)
Balance at
Beginning
Current
Quarter/Year
(b)
Debits
(c)
Written off During
0uarter/Year
Account
Charged
(d)
Written off
During Period
Amount Recovered
(e)
Written off
During Period
Amount Deemed
Unremverable
(0
Balance at End of
Cunent
Quarterffear
G)
1 WA Excess Nat Gas Line Extension Allowance 6,628,783 3,058,661 9,687,444
2 Reg Asset Post Ret Liab 211,7U,076 1 8,857,361 230,641,437
3 Regulatory Asset FAS 109 Utility Plant 81,590,853 283 249,912 81,340,941
4 Regulatory Asset FAS 109 DSIT Non Plant 1,673,881 283 252,9U 1,420,897
5 Regulatory Asset FAS '109 WNP3 269,399 ao,161,700 107,699
6 Regulatory Asset-Spokane River Relicense 228,682 407 78,737 '149,945
7 Regulatory Asset-Spokane River PM&E 209,327 557 73,312 136,015
8 Regulatory Asset-Lake CDA Fund 8382,273 407 21 1,065 8,171,208
I Regulatory Asset-Lake CDA IPA Fund 2,000,000 2,000,000
10 Regulatory Asset-Spokane River TDG ldaho 2U,447 407 117,223 117,224
11 Regulatory Assets-Decoupling Surdrarge 25,021,786 456 23,245,216 1,776,570
12 Regulatory Asset-Lake CDA DEF Costs 1179,263 407 32,719 1,1 46,544
13 DEF CS2 & COLSTRIP 1,314,448 407 1,314,448
14 Commodity MTM ST Regulatory Asset 24,990,699 16,437,341 41,428,040
15 Commodity MTM LT RegulatoryAsset 18,966,686 244 2,100,663 16,866,023
16 Regulatory Asset FAS 143 Asset Retirement
Obligation 3,571,371 1 ,'1 19,162 4,690,533
17 Regulatory Asset AN-CDA Lake Settlement 31,863,920 407 884,086 30,979,834
'18 Regulatory Asset WA-CDA Lake Settlement 443,678 407 152,118 291,560
19 Regulatory Asset Workers Comp 983,900 407 349,836 634,064
20 Settled lnterest RAte Swap Asset 98,764,463 27,698,273 126,462,736
21 DSM Asset 24,620,221 242 4,946,147 19,674,074
22 Unseftled lnterest Rate Swaps Asset 70,939,403 24s 63,548,634 7,390,769
23 Defened ITC 4,1 23,891 254 70,968 4,0s2,923
24 Regulatory Asset MDM System 671,660 3,358,495 4,030,1 55
25 Regulatory Asset BPA Residential Exdlange 1 37,1 39 254 46,709 90,430
26 Regulatory Asset FISERV 679,444 1,251,075 1,930,51 9
27 Regulatory Asset- AFUDC & Equity DFIT 3,506,418 3,506,41 8
28 Other Regulatory Asseta 107 107
29
30
31
32
33
34
35
36
37
38
39
40 Total 621,273,693 75,286,893 97,836,477 0 598,721,109
FERC FORM NO.2/3Q (REV 12.07)Page 232
Name of Respondent
Avista Corporation
This
(1)
(2',)
Reoort
Enn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
iriscellaneous Deferred Debits (Account 186)
1. Report below the details called for concerning miscellaneous defened 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
Deferred Debits
(a)
Balance at
Beginning
of Year
(b)
Debits
(c)
Credits
Account
Charged
(d)
Credib
Amount
(e)
Balance at
End of Year
(0
1
2 Colstrip Common Facility 1,1 10,999 1,1 10,999
3 Colstrip Common Facility 2,35s,642 2,35s,642
4 Prepaid plane Lease LT - 3 yr amort 49,1 08 931 49,108
5 Misc DD- Airplane Lease - 3yr amort 57,267 VAR 57,267
6 Plant Alloc of Clearing Journal 4,213,974 VAR 517,273 3,696,701
7 Nez Perce Settlement 1 34,689 557 5,188 129,50'l
8 Reg Asset lD - Lake CDA - 10 yr amort 85,1 8 1 506 30,974 s4,207
I Credit Union Labor & Expense 73,909 VAR 1 3,982 59,927
10 Misc Work Orders <$50,000 24,136 VAR 5,751 '18,385
11 Subsidiary Billings 1,307,882 VAR 785,662 522,220
12 Reg Asset - Decoupling deferred 3,187J26 17,8'14,438 21,001,564
13 Optional Wind Power ( 40,745)3,175 ( 37,570)
14 Gas Telemetry Equipment 8,893 10,894 19,787
'15 Deferred Project Compass (lD) 4 yr 1,673,450 407 836,726 836,724
'16 Saddle Mountain East Trans Line 1,182 235 1J82
17 AMI Suspense SA Base Chg out 758,720 107 758,720
18 Misc Deferred Debits (AN)448,694 21,799 470,493
19 Bluff Road Restoration 216,553 426 216,553
20 CIP v5 Electronic Access Controls 129,510 107 '1 29,510
21 Clarkston Heights Solar Project 27,912 27,912
22 Mutual Assistance Reimbursable 576,1 48 576,148
23 Taunton Solar Project #52 57,899 57,899
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39 Miscellaneous Work in Progress
40 Tota!r 5,796,1 70 18,512,265 3,407,896 30,900,539
FERC FORM NO.2 (12-96)Page 233
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
lX.lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t15t2019
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes (Account 190)
1. Report the information called lor below concerning the respondents accounting for deferred income taxes.
2. At Oher (Specify), indude defenals relating to other income and deductions.
3. Provide in a footnote a summary of the type and amount of defened income taxes reported in the beginning-of-year and endof-year balances for defened income
taxes that lhe 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 1 90
2 Electric 10,161,086 ( 3,830,188)( 26,833)
2 Gas 2,120,542 ( 763,297)( 68,916)
4 Other (Define) (footnote details)1 76,935,1 52 '106,889 ( 1,045,249)
5 Total (Total of lines 2 thru 4)1 89,2 1 6,780 ( 4,486,596)( 1,140,998)
6 Other (Specify) (footnote details)
7 TOTAL Account 190 (Total oflines 5 thru 6)189,216,780 ( 4,486,596)( 1,140,998)
I Classiflcation of TOTAL
I Federal lncome Tax 189,216,780 ( 4,486,596)( 1,140,998)
10 State lncome Tax
11 Local lncome Tax
FERC FORM NO.2 (REV 12-07)Page 234
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
041't5t2019
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes (Account 190) (continued)
Line
No.
Changes During
Year
Amounts Debited
to Account 410.2
(e)
Changes During
Year
Amounts Credited
to Account 41 '1.2
(0
Adjustrnenb
Debits
Acmunt No.
(s)
Adjustments
Debits
Amount
(h)
Adjustmenb
Credits
Account No.
(i)
Adlustments
Credits
Amount
0)
Balance at
End ofYear
(k)
1
2 329,895 1 4,294,336
a 256,897 3,07'1,820
4 850,422 231,946 5,080, r 74 1 70,084,364
5 850,422 231,946 5,080,'174 586,792 '187,450,520
6
7 850,422 231,946 5,080,1 74 586,792 '187,450,520
6
I 850,422 231,946 5,080,1 74 586,792 1 87,4s0,520
't0
11
FERC FORM NO.2 (REV 12-07)Page 235
Name of Respondent
Avista Corporation
This
(1)
t2)
ReDort
Enn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Capital Stock (Accounts 201 and 2041
prefened stock.
2. Entries in column (b) should represent the number of shares authorized by he artides of incorporation as amended to end of year.
3. Give details concerning shares of any dass and series of stock authorized to be issued by a regulatory commission whici have not yet been issued.
Line
No.
Class and Series of Stock and
Name of Stock Exchange
(a)
Number of Shares
Auhorized by Charter
(b)
Par or Stated Value
per Share
(c)
Call Price at
End of Year
(d)
1 Acct. 20'1 - Common Stock lssued:
2 No Par Value 200,000,000
2 Restriced shares
4 TOTAL Common 200,000,000
5
b
7 Account 204 - Preferred Stock lssued 1 0,000,000
I
q Total Preferred 1 0,000,000
10
11
12
13
14
15
'16
17
18
19
20
21
22
23
24
.E
th
27
28
,o
30
31
11
34
35
36
a7
2a
10
40
FERC FORM NO.2 (12-96)Page 25O
Name of Respondent
Avista Corporation
This
(1)
(2',)
Reoort ls:
lX_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
0411512019
Year/Period of Report
End of 2018/Q4
Capita! Stock (Accounts 201 and 2041
4. The identification of each dass of preferred stock should show the dividend rate and whether he dividends are cumulative or noncumulattve.
5. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year.
purpose of pledge.
Line
No.
Outstanding per Bal. Sheet
(total amt outstanding
without reduction for amts
held by respondent)
Shares
(e)
Outstanding per Bal.
Sheet
Amount
(0
Held by
Respondent
As Reaquired
Stock (Acc't 217)
Shares
(s)
Held by
Respondent
As Reacquired
Stock (Acct 217)
Cost
(h)
Held by
Respondent
ln Sinking and
Other Funds
Shares
(i)
Held by
Respondent
ln Sinking and
Other Funds
Amount
0)
1
2 65,688,3s6 1,110,871,767
3 91,998.00 4,7 41 ,577 .00
4 65,688,356 1 ,110,871,767 91,998.00 4,7 41 ,577 .00
5
6
7
8
o
'10
11
12
13
14
15
16
17
18
19
20
21
22
t5
24
25
26
27
28
29
30
31
aa
34
35
36
J/
38
39
40
FERC FORM NO.2 (12-96)Page 251
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
l-X-lAn
ls:
Original
IA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Reporl
End of 2018/Q4
Other Paid-ln Capital (Accounts 208-2ll)
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 (Account210) - 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 ( 1 0,696,71 1)
2
3
4
5
6
7
8
I
10
11
12
't4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
,o
30
31
32
33
34
35
36
37
38
39
40 Tota!( 10,696,711)
FERC FORM NO.2 (12-96)Page 253
13
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
Enn
ls:
Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t1512019
Year/Period of Report
End of 2018/Q4
DISCOUNT ON CAPITAL STOCK (ACCOUNT 213)
1. Repo( the balance at end of year of discount on capital stoc* for each class and series of capital stock. Use as many rows as necessary to report all data.
during the year and specity the account charged.
Line
No.
Class and Series of Stock
(a)
Balance at
End of Year
(b)
1
3
4
5
6
7
8
I
10
11
12
13
14
TOTAL
CAP|TAL STOCK EXPENSE (ACCOUNT 214)
1. Report tfre balance at end of year of capital stock expenses for eact dass and series of capital stock. Use as many rorvs as necessary to report all data. Number the rows in
sequence starting from the last row number used for Dismunt on Capital Stock above.
of capital stock expense and specify the account charged.
Line
Class and Series of Stock
(a)
Balance at
End of Year
(b)
16 ( 36,316,031)
17
18
19
tu
21
22
23
24
25
26
27
28
TOTAL ( 36,316,031)
FERC FORM NO.2 (12-96)Page zil
2
No.
Common Stock-no par
Name of Respondent
Avista Corporation
This Report is:
(1) X An OriginalQ\ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
20181Q4
FOOTNOTE DATA
Schedule Paqe:254 Line No.: 16 Column: a
Beginning Balance
lssuance Costs of Common Stock
Repurchase and Retirement of Common Stock
Tax Benefit-Options Excercised
Excess Tax Benefits on stock compensation
VESTED STOCK COMP
Stock Compensation Accrual
Ending Balance
s (34,500,271)
5 2L,tt2
s
s
5 3,928,728
s
s (5,755,501)
s (35,315,031)
FERC FORllrl NO.2 552.1
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
(1)X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
Securities lssued or Assumed and Securities Refunded or Retired During the Year
1 . Furnish a supplemental statement briefly describing security financing and refinancing transactions during the year and the accounting for
the securities, discounts, premiums, expenses, and related gains or losses. ldentify as to Commission authorization numbers and dates.
2. Provide details showing the full accounting for the total principal amount, par value, or stated value of each class and series of security
issued, assumed, retired, or refunded and the accounting for premiums, discounts, expenses, and gains or losses relating 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 May 20 18, Avista Corp. issued and sold $375.0 million of 4.35 percent first mortgage bonds due in 2048 pursuant to a
bond purchase agreement with institutional investors in the public bond 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 and $272.5 rnillion of maturing long term debt. In connection with the execution of the bond purchase agreement,
Avista Corp. cash-settled fourteen interest rate swap derivatives (notional aggregate amount of $275.0 million) and paid a
total of $26.6 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 29,2015 and Docket No. 171210 entered January 11,2018;
3. Order of the ldaho Public Utilities Commission, Order No. 33401, entered October 23,2015 and
Order No. 33978 entered January 30, 2018;
4. Order of the Public Utility Commission of Oregon, Order No. 18033, entered February 1 , 2018;
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
ln March 2016, the Company entered into four separate sales agency agreements under which Avista Corp.'s sales
agents may offer and sell up to 3.8 million new shares of Avista Corp.'s common stock, no par value, from time to time.
The sales agency agreements expire on February 29,2020. Through December 31,2018,2.7 million shares were issued
under these agreements resulting in total net proceeds of $120.0 million ($54.7 million in 2017 and $65.3 million in 2016),
leaving 1.1 million shares remaining to be issued.
FERC FORM NO. 2 (12-96)255.1
Name of Respondent
Avista Corporation
This Reoort ls:(1) fiRn originat(2\ l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t20',\9
Year/Period of Report
End of 2018/Q4
Long-Term Debt (Accounts 221,222,223, and 2241
1. ReportbyBalanceSheetAcmuntthedetailsconcerninglong{ermdebtindudedinAccount22l,Bonds,222,ReacquiredBonds,223,AdvancesfomAssociatedCompanies,and
224, Other Long-Term Debt.
2. For bonds assumed by the respondent, include in column (a) the name of the issuing mmpany as well as a desuiption 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 court order under which such certificates were issued.
Line
No.
Class and Series of Obligatron and
Name of Stock Exchange
(a)
Nominal Date
of lssue
(b)
Date of
Maturity
(c)
Outstanding
(Total amount
outstanding without
reduction for amts
held by respondent)
(d)
1 05/06/'t 993 0st05t2023 5,500,000
2 FMBS - SERIES A - 7.54 DUE 05/05/2023 05/07/1 993 0510512023 1,000,000
3 FMBS - SERIES A - 7.39% DUE 5I11I2O1B 05/1 1/1 993 05t1112018
4 FMBS - SERIES A.7.45% DUE 611112018 06/09/1 993 06t11t2018
Discount - FMBS - SERIES A - 7.45% DUE 6/1 1/201 I
6 FMBS - SERTES A - 7.18"/" DUE 8l 1 1 12023 08112t1993 08t1112023 7,000,000
7 06/03/'1997 06t01t2037 51,547,000
8 FMBS - 6.37% SERIES C 06/1 9/1 998 06t'19t2028 25,000,000
o FMBS - 5,45% SERIES 1',U18t2004 12t0112019 90,000,000
10 Discount- FMBS - 5.45% SERIES
11 FMBS.6,25% SERIES 1111712005 12101t2035 '150,000,000
12 Discount- FMBS - 6.25% SERIES
13 FMBS - 5,70% SERIES 12t15t2006 07t01t2037 1 50,000,000
14 Discount FMBS - 5.70% SERIES
15 FMBS - 5.95% SERIES 04to2t2008 06t01t2018
't6 Discount- FMBS - 5.95% SERIES
17 FMBS - 5.125% SERIES 09t22t2009 o4t01t2022 250,000,000
18 Discount- FMBS - 5.125% SERIES
'19 COLSTRIP 2010A PCRBs DUE 2032 12t15t2010 10t0'u2032 66,700,000
20 COLSTRIP 20'l0B PCRBs DUE 2034 12t1512010 03t01t2034 1 7,000,000
21 FMBS - 3.89% SERIES 12120t2010 12t20t2020 52,000,000
22 FMBS - 5.55% SERIES 1212012010 12t20t2040 35,000,000
23 4.45% SERIES DUE 12-14-2041 't2114t2011 12t14t2041 85,000,000
24 4.23% SERTES DUE 11-29-2047 11t30t2012 11t29t2047 80,000,000
.E FMBS- 4.11% SERIES 12t't812014 12t0112044 60,000,000
tb FMBS- 4.37% SERIES 12t1612015 12t0112045 1 00,000,000
27 FMBS.3.54% SERIES 12t16t2016 12t01t2051 1 75,000,000
28 FMBS 3.91% SERIES 12t14t2017 12t0112047 90,000,000
29 05t22t2018 06t01t2048 375,000,000
30
3l
32
33
34
AE
36
37
38
20
40 TOTAL 1,865,747,000
FERC FORM NO.2 (12-96)Page 256
FMBS - SERIES A - 7.53% DUE O5IO5I2O23
ADVANCE ASSOCIATED-AVISTA CAPITAL lf (ToPRS)
FMBS 4.35% SERIES
Name of Respondent
Avista Corporation (1)
(2',)
An Original
A Resubmission 04t1512019
Year/Period of Report
End of 2018/Q4
Long-Term Oebt (Accounts 221,222,223, and 2241
5. ln a supplemental statement, give explanatory details for Accounts 223 and 224 ol net changes during the year. With respeci to long-term advances, show for eadr company: (a)
principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authortzation numbers and dates.
6. lf the respondent has pledged any of its longterm debt securities, give particulars (details) in a footnote, induding name
of the pledgee and purpose of the pledge.
7. lf the respondent has any long-term seqrrities that have been nominally issued and are nominally outstanding at end of year, describe such securities in a footnote.
difference between the total of column (f) and he total Acaunl427 , lnterest on Long-Term Debt and Account 430, lnterest on Debt to Associated Companies.
9. Give details concerning any long-term debt auhorized by a regulatory commission but not yet issued.
Line
No.
lnterest for
Year
Rate
(in%)
(e)
lnterest for
Year
Amount
(0
Held by
Respondent
Reacquired Bonds
(Acd222l
(s)
Held by
Respondent
Sinking and
Other Funds
(h)
Redemption Price
per $100 at
End of Year
(i)
1 7.530 41 4,1 s0
2 7.540 75,400
1 7.390 1 86,803
4 7.450 513,222
6 7.'1 80 502,600
7 3.610 1,221,118
8 6.370 1,s92,500
I 5.450 4,905,000
10
11 6.250 9,375,000
12
4a 5.700 8,550,000
14
'15 5.950 6,197,917
'16
17 5.125 12,812,500
18
19 2.040 1,1 09,395 66,700,000
20 2.040 283,998 1 7,000,000
21 3.890 2,022,800
22 5.550 1,942,500
23 4.450 3,782,s00
24 4.230 3,384,000
,r,4.1 10 2,466,000
26 4.370 4,370,000
27 3.540 6,1 95,000
28 3.910 3,s 19,000
29 4.350 9,962,s43
30
3'l
32
?2
34
1t
36
37
38
39
40 8s,383,946 83,700,000
FERC FORM NO.2 (12-e6)Page 257
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _A Resubmission
Date of Report
(Mo, Da, YQ
04t15t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
Upon issuance Avista Capital II issued $1.5 million of Common Trust Securities to the
Company. In December 2000, the Company purchased $10.0 million of these Preferred Trust
Securities .
Scneoure,'aqe:256 Line No.: 29 Column: a
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 and Docket No.U-171210 entered January 11,2018;
2. Order of the ldaho Public Utilities Commission, Order No. 33401, entered October 23,2015 and
Order No.33978 entered January 30,2018;
3. Order of the Public Utility Commission of Oregon, Order No. 18-033, entered February 1,2018;
Order of the Public Service Commission of the State of Montana, Default Order No. 4535
FERC FORM NO. 2 ({2-96)Page 552.'l
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
[]Rn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
Unamortized Debt Exponse, Premium and Discount on Long-Term Debt (Accounts 181,225,2261
1. ReportunderseparatesubheadingsforUnamortizedDebtExpense,UnamortizedPremiumonLong-TermDebtandUnamortizedDiscountonLong-TermDebt,detailsofexpense,
premium or discount applicable to each dass and series of long-term debl
2. Show premium amounb by endosing he figures in parenheses.
3. ln mlumn (b) show he principal amount of bonds or other long-term debt originally issued.
4. ln column (c) show tre 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)
1 FMBS - SERTES A - 7.53% DUE 05/05/2023 5,500,000 42,712 05/06/1 993 05/05/2023
2 FMBS - SERIES A - 734% DUE 5IO5I2O23 1,000,000 7,766 05/07/1 993 05t0512023
,FMBS - SERIES A - 7.39"/" DUE 511112018 7,000,000 54,364 05/1 1/1993 05t1112018
4 FMBS - SERIES A - 7.45"/" DUE 611 1 12018 1 5,500,000 170,597 06/09/1 993 06/1 t/2018
5 F[/BS - SERTES A - 7.18% DUE 8t1 1 t2023 7,000,000 54,364 08t12t1993 08t1112023
6 ADVANCE ASSOCIATED-AVISTA CAPITAL ll (ToPRS)51,547,000 1,296,086 06/03/1 1 97 06t01t2037
7 FMBS - 6.37% SERIES C 25,000,000 1 58,304 06/19/'1998 06t19t2028
8 FMBS - 5.45% SERIES 90,000,000 1,432,081 11t18t2004 12t0112019
o FMBS - 6.25% SERIES 1 50,000,000 2,1 80,435 11t17t2005 12t01t2035
10 FMBS - 5,70% SERIES 1 50,000,000 4,924,304 12t15t2006 07 t01t2037
11 FMBS - 5,95% SERIES 250,000,000 3,081,4't9 04t02t2008 06/01/2018
12 FMBS - 5,125% SERIES 250,000,000 2,859,788 09t22t2009 0410112022
13 FMBS - 3.89% SERIES 52,000,000 385,129 12t20t2010 12t2012020
14 FMBS - 5.55% SERIES 35,000,000 258,834 12t20t2010 12120t2040
15 Short-Term Credit Facility 5,070,271 12114t2011 04t18t2019
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 11t30t2012 11t2912047
18 4.1 'l% Seires Due 12-1-2044 60,000,000 428,205 12t18t2014 12t01t2044
19 4.37% Series Due 12-1-2045 1 00,000,000 590,761 12t16t2015 12t01t2045
20 3.54% Series Due 12-1-2051 175,000,000 1,042,569 12t15t2016 12t01t2051
21 3.91% Series Due 12-1-2047 90,000,000 552,539 12t14t2017 1210112047
22 4.35o/o Series due 6-1-2048 375,000,000 4,625,1 98 06/0'l/20'18 06t0112048
t5 Rathrum 2005 71,646 09/30/2005 12t0112035
24 Debt Skategies 8s8 08/01/2005 08/01/2035
25 WKSI Shelf Registration Statement 16,064 03/01/201 3 03/01/20'r8
26
27
28
29
30
31
aa
aa
34
35
36
11
38
20
40
FERC FORM NO.2 (12-96)Page 258
Avista Corporation (1)
(2)
Original
Resubmission
Date of ReDort
(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181,225,2261
he date ofthe Commission's authorization of treatrnent other than as specified by the Uniform System of Accounts.
6. ldentify separately undisposed amounts applicable to issues which were redeemed in prior years.
Debt-Credit.
Line
No.
Balance at
Beginning
of Year
(0
Debib During
Year
(s)
Credib During
Year
(h)
Balance at
End of Year
(i)
1 7,711 1,424 6,287
2 1,402 259 1,143
3 904 904
4 3,412 3,412
5 1 0,269 1,812 8,457
6 273,288 14,0'15 255,273
7 55,405 5,275 50,130
8 171,921 85,960 85,961
o 1,306,240 72,569 1,233,671
10 3,1 53,535 161,032 2,992,503
11 126,289 126,289
12 986,094 227,561 758,533
't3 1 15,858 38,619 77,239
14 1 98,446 8,629 189,817
'1s 1,447 ,772 434,332 1,0'13,440
16 554,494 23,104 53 1,390
17 624,843 20,886 603,957
18 385,619 14,282 371,337
19 551,643 19,702 53'1,941
20 1,012,990 29,794 983,1 96
21 539,74'1 5,488 534,253
22 4,625,1 98 89,1 76 4,536,022
23 42,634 2,368 40,266
24 505 29 476
25 bbt 661
26
t6
29
30
31
aa
33
34
35
36
aa
20
39
40
FERC FORM NO.2 (12-96)Page 259
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
04115t2019
Year/Period of Reporl
End of 2018/Q4
Unamortized Loss and Gain on Reacquired Debt (Accounts 189, 257)
1. Report under separate subheadings for Unamortized Loss and Unamortized Gain on Reacquired Debt, details of gain and loss,
including maturity date, on reacquisition applicable to each class and series of long-term debt. lf gain or loss resulted from a refunding
transaction, include also the maturity date of the new issue.
2. ln column (c) show the principal amount of bonds or other long-term debt reacquired.
3. ln column (d) show the net gain or net loss realized on each debt reacquisition as computed in accordance with General lnstruction
17 of the Uniform Systems of Accounts.
4. Show loss amounts by enclosing the figures in parentheses.
5. Explain in a footnote any debits and credits other than amortization debited to Account 428.1, Amortization of Loss on Reacquired
Debt, or credited to Account 429.1, Amortization of Gain on Reacquired Debt-Credit.
Line
No.
Designation of
Long-Term Debt
(a)
Date
Reacquired
(b)
Principal
of Debt
Reacquired
(c)
Net Gain or
Loss
(d)
Balance at
Beginning
of Year
(e)
Balance at
End ofYear
(0
I Misc Debt Repurchases I 0s/1 0/1 993 ( 4,695,395)(( 227,340\
2 ADVANCE ASSOCIATED.AVISTA CAPITAL II
(ToPRS)12t18t2000 10,000,000 1 ,769,125 947,600 898,797
3 Misc 2002 Repurchase 12t31t2002 10,000,000 2,228,1s3 516,576 464,484
4 Misc 2003 Repurchase 't2t3'1t2003 25,330,000 315,274 85,861 78,860
5 Misc 2004 Repurchase 12t31t2004 36,590,000 ( 7,244,895)( 188,754)
6 Misc 2005 Repurchase 12t31t2005 26,000,000 ( 1,700,371)( 567,022],( 532,018)
7 Misc 2006 Repurchase 12t31t2006 6,875,000 483,582 ( 803)
I Misc 2008 Repurchase Costs 't2t31t2008 43,132 16,313 13,6'r7
I AVA Capital Trust lll (2022)04t01t2009 60,000,000 ( 2,875,817)( 993,523)( 764,2481
'10 COLSTRIP 2010A PCRBs DUE 2032 12t14t2010 66,700,000 ( 3,709,174)( 2,309,072)( 2,153,404)
11 COLSTRIP 20108 PCRBs DUE 2034 12t14t2010 17,000,000 ( 1,916,297)( 1,336,982)( 1,254,488)
12 FMBS - 7.25% SERTES (2040)'12t20t2010 30,000,000 ( 5,263,822)( 4,035,597)( 3,860,136)
13 FMBS - 6.125% SERTES (2020)12t20t2010 45,000,000 ( 6,273,664)( 1,882,09e)| 1,2s4,7331
14 KETTLE FALLS P C REV BONDS DUE 14 (2047\o6t28t2012 4,1 00,000 ( 1 05,020)( 89,767)( 86,767)
'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 260
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
ll_lAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 20'18/Q4
Reconciliation of Reported Net lncome with Taxable lncome for Feder lncome Taxes
1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal lncome Tax accruals
and show computation of such tax accruals. lnclude in the reconciliation, as far as practicable, the same detail as furnished on
Schedule M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. lndicate
clearly the nature of each reconciling amount.
2. lf the utility is a member of a group that files consolidated Federal tax return, reconcile reported net income with taxable net income
as if a separate return were to be filed, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State
names of group members, tax assigned to each group member, and basis of allocation, assignments, or sharing of the consolidated tax
among the group members.
Line
No.
Details
(a)
Amount
(b)
1 Net lncome forthe Year (Page 116)136,429,120
2 Reconciling ltems for the Year
3
4 Taxable lncome Not Reported on Books
5 7,471,O39
6
7
8 TOTAL 7,47't,039
I Deductions Recorded on Books Not Deducted for Return
10 61,088,735
11 Federal lncome Tax Expense 24,498,059
12 State lncome Tax Expense Adj 256,428
13 TOTAL
14 lncome Recorded on Books Not lncluded in Return
15
'16
17
18 TOTAL
19 Deductions on Return Not Charged Against Book lncome
20 ( 104,I 31 ,981)
21
22
23 Equity in Sub Earnings ( 2,392,004)
24 Corporate Overhead Unallocated Subs 'l ,059,81'1
25
26 TOTAL ( 105,464,174)
27 Federal Tax Net lncome 124,279,207
28 Show Computation of Tax:
29
30 Federd fax al 21oh 26,098,633
31
32 Prior Year True Ups ( 9,720,938)
33
34 Total Federal Tax Expense 16,377,695
35
FERC FORM NO.2 (12-96)Page 261
85,843,222
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04t1512019
Year/Period of Report
End of 20lB/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
'1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and
other sales taxes which have been charged to the accounts to which the taxed material was drarged. lf the acfual or estimated amounts of such taxes are known, show the amounts in a
footnote and designate whether estimated or actual amounb.
balancing ofthis
page is not affected by the inclusion of these taxes.
3. lnclude in column (d) taxes charged during the year, taxes charged to operations and other accounts trrough (a) accrals credited to taxes accrued, (b) amounts credited to the
portion of prepaid taxes charged to current year, and (c) taxes paid and ctrarged direct to operations or accounts other than accrued and prepaid tax accounts.
4. Listtre aggregate ofeach kind oftax in such mannerthatthe total tax for each State and subdivision can readilybe ascertained.
Line
No.
Kind of Tax
(See lnstruction 5)
(a)
Balance at
Beg. ofYear
Taxes Accrued
(b)
Balance at
Beg. ofYear
Prepaid Taxes
(c)
1 FEDERAL:
2 lncome Tax 2013
a lnmme Tax 2014 840,072
4 lnmme Tax 2016
5 lnmme Tax (2017)1,438,214
6 lncome Tax (current)
7 Prior Retained Earnings
8 Current Retained Earnings
o Total Federal 1,706,372
10
11 STATE OF WASHINGTON
12 Property Tax (20'17)16,443,03'l
'13 Property Tax (20'18)
14 Excise Tax (2016)892,951
15 Excise Tax (20'17)2,805,220
16 Excise Tax (2018)
17 Natural Gas Use Tax 500
18 Municipal Occupation Tax 3,010,959
'19 Community Solar
20 Sales & Use Tax (20'17)1 53,053
21 Sales & Use Tax (2018)
22 Total Washington 23,305,714
23
24 STATE OF IOAHO:
.A lncome Tax (2017)
26 lncome Tax (2018)
Property Tax (2017)3,874,217
28 Property Tax (2018)
29 Sales & Use Tax (2016)I
30 Sales & Use Tax (2017)10,650
3'r Sales & Use Tax (2018)
JZ KWH Tax (2017)34,973
12 KWH Tax (2018)
34 Franchise Tax (2017)1,102,379
.E Franchise Tax (2018)
36 Total ldaho
37
ao STATE OF MONTANA
20 lncome Tax (2015)439,238
FERC FORM NO.2 (REV 12-07)Page 262a
( s71p14
5,022,22t
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lIlAn Original
l-l A Resubmission
Date of ReDort(Mo, Da, Yi)
04115t2019
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Chalged (Show utllity dept where applicable and acct charged)
(continued)
5. lf any tax (exdude Federal and State income taxes) covers more han one year, show he required information separately for eadr tax year, identifying the year in column (a).
6. Enter all adjustnenb of the accrued and prepaid tax accounb in column (f) and explain each adjustrnent in a footnote. Designate debit adjustrnents by parentheses.
auhority.
number of he 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 suctr tax.
1 0. ltems under $250,000 may be grouped.
1 1. Report in column (q) he applicable effective state income tax rate.
Line
No.
(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 Acct 165)
(h)
1
2
J ( 592,4241 247,648
4 51,503 ( 520,41 1)( 13,201,943)( 2,731,101\9,032,628
6 26,220,217 1 4,59 1,1 00 ( 8,491,707)3,1 37,41 0
7
8
I 13,018,274 1 1,859,999 2,864,647
10
11
12 745,564 1 7,1 88,595
'13 18,651,695 ( 5,584)18,657,279
14 892,951
'15 21,137 2,826,357
16 26,659,277 24,043,614 2,615,663
17 3,049 3,053 496
18 23p22,427 24,1 30,655 2,802,731
19 ( 582,394)( 576,993)( 17,305)( 22,706)
20 (12)I 53,041
21 1,446,221 1,354,076 92,145
22 70,866,964 69,1 16,814 ( 17,305)25,038,559
23
24
25 ( 175,305)( 294,385)( 119,080)
26 343,757 210,000 133,757
27 25,067 3,899,284
oa 7,988,205 4,029,755 25,047 3,983,497 25,046
29 ( 1)
30 ( 545)1 0,1 05
201,308 197,21s 4,093
32 ( s,0s8)29,916
a7 418,040 386,213 31,827
34 1,102,410 ( 1)
35 4,731,532 3,712,217 ( 30)1,019,285
36 13,527,001 13,282,730 ( 94,034)5,172,458 25,046
37
38
10 ( 439,238)
FERC FORM NO.2 (REV 12-07)Page 263a
Taxes Charged
During Year
31
30
Name Respondent
Avista Corporation (1)
(2\
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
o4t15t20't9
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepaid and Gharged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and
other sales taxes which have been charged to the accounts to which the taxed material was charged. lf the actual or estimated amounts of such taxes are known, show the amounts in a
footnote and designate whether estimated or actual amounts.
balancing of this
page is not affected by he inclusion of these taxes.
3. lndude in column (d) taxes charged during the year, taxes charged to operations and other accounts hrough (a) accruals credited to taxes accrued, (b) amounts credited to the
portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax 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.
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Eledric
(Account 408.'l
409.1 )
(i)
Gas
(Account 408.1
409.1 )
0
Other Utility Dept.
(Account 408.1,
409.1 )
(k)
Other lncome and
Deductions
(Account 408.2,
409.2)
(t)
1
2
3
4
5 297,235 ( 108,227)( 9,909,943)
b 26,032,636 6,104,827 ( 6,261,394)
7
8
o 26,329,871 5,996,600 ( 16,171,337)
10
11
12 648,162 45,038 52,364
'13 14,726,881 3,836,805 88,009
14
15 21,803 ( 666)
16 21,013,778 5,538,232 107,267
17 3,049
18 18,624,892 5,192,612
19
20
21
22 55,038,565 14,612,021 247,640
,1
24
25 ( 137,147)( 24,200)
26 292,195 51,562
27 ( 846)25,913
28 6,226,432 1 ,765,710 21,110
29
30
31
32 ( s,058)
423,968
34
AE 3,613,869 1,102,971
36 10,413,413 2,896,043 47,023
JI
38
39
FERC FORM NO.2 (REV 12-07)Page 262b
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lx_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
5. lf any tax (exdude Federal and State income taxes) covers more han one year, show the required information separately for eadr tax year, identifying the year in column (a),
6. Enter all adjustrnenb of the accrued and prepaid tax acrounts in column (f) and explain eact adjusknent in a footnote. Designate debit adjustnents by parentheses.
auhority.
number ol 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.
'l '1. Report in column (q) the applicable effective state income tax rate.
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Extraordinary ltems
(Account 409.3)
(m)
Other Utility Opn.
lncome
(Account 408.1,
409.1 )
(n)
Adjustrnent to Ret.
Earnings
(Account 439)
(o)
Other
(p)
State/Local
lncome Tax
Rate
(q)
1
2
1
4
5 ( 3,481,008)
344,148
7
8
I ( 3,136,860)
10
11
12
13
14
15
'16
17
18 1 04,923
19 ( 582,394)
20 ( 12\
21 1,446,221
22 968,738
l5
24
25 ( 13,9s8)
26
27
28 ( 25,047)
29
30 ( 545)
31 201,308
32
aa ( 5,928)
34
35 1 4,692
36 170,522
aa
JO
39
FERC FORM NO.2 (REV 12-07)Page 263b
6
Name of Respondent
Avista Corporation
This
(1)
(2')
ReDort ls:
lIlAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
(continued)
Line
No.
Kind of Tax
(See lnstruclion 5)
(a)
Balance at
Beg. of Year
Taxes Accrued
(b)
Balance at
Beg. of Year
Prepaid Taxes
(c)
1 lncome Tax (20'16)118,720
2 lncome Tax (2017)( 557,908)
3 lncome Tax (2018)
4 Property Tax (201 7)s,210,680
5 Property Tax (2018)
6 Colstrip Generation Tax
7 KWH Tax (20'17)2s7,400
o KWH Tax (2018)
o Consumer Councrl Fee 53
10 Public Commission Fee 28
11 Total Montana s,468,211
12
13 STATE OF OREGON
14 lnmme Tax (2015)
15 lnmme Tax (2018)
16 Property Tax (2017)3,323,020
17 Property Tax (2018)
'18 Franchise Tax (2017)1,008,688
19 Franchise Tax (2018)
20 Total Oregon 1,008,688 3,323,020
21
22 STATE OF CALIFORNIA
23 lncome Tax (20'18)
24 Total California
25
to MISCELLANEOUS STATES:
27 lnmme Tax (2017)1
28 lncome Tax (2018)
29 Total Misc States 1
30
31 MISCELLANEOUS OTHER
32 CTR Credit for 2018
33 Misc/Diskibution
34 Timber Excise Tax
35 WA Renewable Energy
36 Thermal Fuel Tax 2,832
3t Total County 2,832
38
39
TOTAL 36,5 1 4,038 3,323,020
FERC FORM NO.2 (REV 12-07)Page 262a.1
Name of Respondent
Avista Corporation
This
(1)
(2',)
Reoort ls:
finn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepald and Charged During Year, Distribution of Taxes Gharged (Show utility dept where applicable and acct chalged)
(contlnued)
Line
No.
Taxes Charged
During Year
(d)
Taxes Paid
During Year
(e)
Adjustments
(0
Balance at
End of Year
Taxes Acrrued
(Account 236)
(s)
Balance at
End of Year
Prepaid Taxes
(lncluded in Acct 165)
(h)
1 ( 118,720\
2 50 s57,958
I 253,640 250,000 3,640
4 ( 13,875)5,1 96,805
5 11,167 ,531 5,s99,893 ( 1)5,567,637
6 3,294 3,294
7 (621 257,338
8 1 ,106,'158 858,599 247,559
I 32 25 bU
'10 124 133 19
11 12,516,842 12,166,137 ( 1)5,818,915
12
13
14 1
15 1 00,000 1 00,000
16 3,323,021 ( 3,323,021\
17 3,952,253 7,904,665 3,952,413 3,952,413
18 1,008,688
19 3,630,921 2,675,549 955,373
20 1 1 ,006,1 95 1 1,688,903 629,392 955,373 3,952,413
21
22
IJ 't,600 1,600
24 1,600 1,600
,E
26
27 1
28
29 1
30
31
1a ( 1,510)( 1,510)
22 25,046 ( 13,332)( 13,332)25,046
34
?(( 1,339,881)( 1,303,272)( 5,928)( 42,537)
36 47,318 47j43 3,007
37 ( 1,269,027)( 1,270,971r,( 19,260)( 14,484)
38
39
TOTAL 't't9,667,849 116,845,212 498,792 39,835,469 3,977,459
FERC FORM NO.2 (REV 12-07)Page 263a.'l
Name of Respondent
Avista Corporation
This
(1)
(2\
ReDort ls:
Ix]An Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/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.
Electic
(Account 408.1,
409.1 )
(i)
Gas
(Account 408.'1,
409.1 )
0)
Other Utility Dept.
(Account 408.1,
409.1 )
(k)
Other lncome and
Deductions
(Account 408.2,
409.2)
0
1
1 253,640
4 ( 13,875)
5 1 1,1 67,531
6 3,294
7 ( 62)
I 1 ,106,158
q 32
10 124
11 12,s16,842
12
13
14
15 25,000 75,000
'16 1,483,707 1,839,314
17 1,746,224 2,206,029
18
'19 3,619,236
,i 3,254,93 1 7,739,579
21
22
23 336 1,264
24 336 1,264
25
tb
27
28 600
600
30
31
32 ( 1,511)
21 26
34
AE
36
aa ( 1 485)
38
?o
TOTAL 1 07,553,958 31,244,243 ( 15,876,295)
FERC FORM NO.2 (REV 12-07)Page 262b.1
2
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort
Enn
ls:
Original
l-lA Resubmission
Date of Reoort(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Gharged (Show utility dept where applicable and acct charged)
(continued)
DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)
Line
No.
Extraordinary ltems
(Account 409.3)
(m)
Other Utility Opn
lncome
(Account 408.1,
409.1 )
(n)
Adjustment to Ret.
Earnings
(Account 439)
(o)
0ther
(p)
State/Local
lncome Tax
Rate
(q)
1
2
a
4
5
6
7
8
I
10
11
12
13
14
1(
tb
17
18
19 11,685
20 'l 1,685
21
22
IJ
24
25
26
27
28 ( 600)
29 ( 600)
30
31
2t 1
22 2s,020
34
35 ( 1,339,881)
36 47,318
37 ( 1,267,542\
38
39
TOTAL ( 3,254,057)
FERC FORM NO.2 (REV 12-07)Page 263b.1
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
04t15t2019
Year/Period of Reporl
End of 2018/Q4
Miscellaneous Current and Accrued Liabilities (Account 242)
1. Describe and report the amount of other current and accrued liabilities at the end of year,
2. Minor items (less than $250,000) may be grouped under appropriate title.
Line
No.
Item
(a)
Balance at
End of Year
(b)
1 MARGIN CALL DEPOSIT 1 ,810,000
2 FOREST USE PERMITS 2,721,611
3 AUDIT EXP ACC
4 FERC ADMIN FEE ACC 550,000
5 FERC ELEC ADMIN CHARGE 153,954
6 MT LEASE PAYMENTS 4,898,000
7 MT INVASIVE SPECIES FEE 388,331
MISC NON MON PWR EXCHANGE 12,926
9 DSM TARIFF RIDER RECLASS ( 1,343,384)
10 PAID TIME OFF 20,671,770
11 LOW INCOME ENERGY ASSIST 1,343,384
AVISTA GRANTS ENG SUSTAIN WSU-ASL 22,272
13 WORKERS COMP LIABILITY 634,064
14 ACCTS PAYABLE INVENTORY ACCRUALS-SC 56,776
15 ACCT PAYABLE EXPENSE ACCRUAL-SC 3,658,272
16 CURRENT PORTION BENEFIT LIAB 9,151 ,077
17 CLEARING ACCOUNTS 325,930
'18 GAS IMBALANCE 328,590
19 CUSTOMER ACCOUNTS 10,975,234
20
21
22
23
24
25
26
27
28
29
30
31
a)
33
34
35
36
3t
38
39
40
41
42
43
44
45 Total 56,358,807
FERC FORM NO.2 (12-96)Page 268
8
't2
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lX_lAn Original
flA Resubmission
Date of Report(Mo, Da, Yr)
041'1512019
Year/Period of Reporl
End of 2018/Q4
Other Deferred Credits (Account 253)
1 , Report below the details called for concerning other deferred credits.
2. For any deferred credit being amortized, show the period of amoffzation.
3. Minor items (less than $250,000) may be grouped by classes.
Line
No.Desoiption of Oher
Defened Credits
(a)
Balance at
Beginning
of Year
(b)
Debit
Contra
Account
(c)
Debit
Amount
(d)
Credits
(e)
Balance at
End of Year
(0
1 Defer Gas Exchange 1 ,1 25,000 1,'125,000
2 Rathdrum Refund 70,463 550 33,823 36,640
3 Kettle Falls Diesel Leak 260,093 '186 147,652 112,441
4 Bills Pole Rentals 1 63,907 20,128 1 84,035
^WA REC 176,311 675,442 851,753
6 Deferred Treasury Expense 2,127,252 131 2,122,255 4,997
7 DOC EECE Grant 26,1 05 134 26,105
8 Conservation Program Projects 112,679 186 23,660 89,019
I Defer Comp Active Execs 8,463,265 128 8,400,357
10 Executive lncent Plan 1 40,000 140,000
11 Unbilled Revenue 2,014,366 908 433,940 1,580,426
12 WA Energy Recovery Mechanism 1,684,801 8,01't,463 9,696,264
13 Misc Deferred Credits 1,163 186 1,013 150
14 Decoupling Deferred Credits 1 1,666,738 456 11,421,754 244p84
'15
'16
17
18
'19
20
21
22
23
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
4',!
42
43
44
45 Tota!28,032;t13 14,273,110 8,707,033 22,466,066
FERC FORM NO.2 (12-96)Page 269
62,90r
24
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort
IxlAn
ls:
Original
IA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes-Other Property (Account 282)
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)
I Account 282
2 Electric 3 1 9,934,303 4,280,311
3 Gas 7s,471,104 3,060,450
4 Other (Define) (footnote details)86,429,721 2,857,477
5 Total (Enter Total of lines 2 thru 4)48 1 ,83s,1 28 1 0,1 98,238
6 Other (Specify) (footnote details)
7 TOTAL Account 282 (Enter Total of lines 5 thr 481,835,128 10,1 98,238
8 Classification of TOTAL
o Federal lncome Tax 465,41 1,769 1 0,1 98,238
10 State lncome Tax 1 6,423,359
11 Local lncome Tax
FERC FORM NO.2 (REV 12-07)Page 274
'1. Report he information called for below conceming the respondent's accounting for deferred income taxes relating to property not subject to accelerated amortization.
2. At Other (Specify), indude defenals relating to oher income and deductions.
Name of Respondent
Avista Corporation
ThiS
(1)
(2')
Reoort ls:
[]nn originat
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes-Other Property (Account 282) (continued)
respondent estimates could be induded in the development ofiurisdictional recourse rates.
Line
No.
Changes during
Year
Amounts Debited
toAccount410.2
(e)
Changes during
Year
Amounb Credited
to Account 41 1.2
(0
Adjustments
Debits
Acct. No.
(s)
Adjustments
Debits
Amount
(h)
Adjustments
Credits
Account No.
(i)
Adjustments
Credits
Amount
0
Balance at
End of Year
(k)
1
t 3,351,367 327,565,981
I 1,427 ,084 79,958,638
4 1,063,747 90,350,945
(5,842,1 98 497,875,564
6
7 5,842,1 98 497,875,564
8
o 22,265,557 497,875,564
10 ( 16,423,359)
11
FERC FORM NO.2 (REV 12-07)Page 275
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t20't9
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes-Other (Account 283)
1. ReporttheinformationcalledforbelowconcemingtherespondentsaccountingfordefenedincometaxesrelatingtoamountsrecordedinAccount2S3.
2. At Other (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 4 1 0.1
(c)
Changes During Year
Amounts
Credited to
Account 41 1 .1
(d)
1 Account 283
2 Electric 6,410,231 ( 1,830,486)490,318
3 Gas ( 5,496,820)( 1,176,216)
4 Other (Define) (footnote details)161,229,911 4,853,234
Total (Total of lines 2 thru 4)162,143,322 1,846,s32 490,318
6 Other (Specify) (footnote details)5,429,247
7 TOTAL Account 283 (Total of lines 5 thru 167,572,569 1,846,532 490,318
Classification of TOTAL
0 Federal lncome Tax 167,572,569 1,846,532 490,318
'10 State lncome Tax
11 Local lncome Tax
FERC FORM NO.2/3Q (REV 12-07)Page 276
5
Name of Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Accumulated Deferred lncome Taxes-Other (Account 283) (continued)
3. Provide in a footnote a summar of the type and amount of defened income taxes reported in the beginning-of-year and end-oiyear balances for deferred income taxes that the
respondent estimates could be induded in the development ofjurisdictional recourse rates.
Line
No.
Changes during
Year
Amounts Debited
to Account 41 0.2
(e)
Changes during
Year
Amounb Credited
to Account 41 1.2
(0
Adjustments
Debib
Acct. No.
G)
Adjustments
Debits
Amount
(h)
Adjustrnents
Credits
Account No.
(i)
Adjustments
Credits
Amount
0
Balance at
End of Year
(k)
1
I 92,766 3,996,661
?7,874 ( 6,680,910)
4 I 05,283 6,704,972 1 72,893,400
(1 05,283 6,704,972 100,640 170,209,151
b 5,429,247
7 105,283 6,704,572 5,529,887 170,209,151
I
I 1 05,283 6,704,972 s,s29,887 1 70,209,1 5 1
10
11
FERC FORM NO.2/3Q (REV 12-07)Page 277
Name oI Hesponoenl
Avista Corporation
tnrs
(1)
(2)
KeDOn ts:
IXJAn Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period ol Report
End of 2018/Q4
Other Regulatory Liabilities (Account 25l1)
1. Repo( below the details called for concerning other regulatory liabilities which are created through the ratemaking actions of rEulatory agencies (and not
includable in other amounts).
2. For regulatory liabilities being amortized, show period of amoftzation in column (a).
3. Minor items (5% of the Balance at End of Year for Account 254 or amounts less lhan $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
Description and Purpose of
Other Regulatory Liabilities
(a)
Balance at
Beginning of
Cunent
Quarterffear
(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 Cunent
Quarterffear
(s)
1 ldaho lnvestment Tax Credit 7,468,1 1 i 190 1,222,862 6,245,251
2 Oreqon BETC Credit 1,111,42i 1,111,427
3 Settled lnt Rate Swaps 13,735,24(4,217,866 1 7,953,1 1 5
4 Unsettled lnt Rate Swaps 4,902,56(5,222,833 10,1 25,399
5 FAS 109 lnvest Credit 1 1,83(190 5,472 6,367
6 Nez Perce 572,32t 22,008 s50,316
7 ldaho Earninqs Test 862,78(191 88,796 7733U
B Decoupling Rebate 8,609,963 8,609,963
I Other Regulatory Liabilities 1 ,407,14!34,284 1,441,429
10 WA ERM 22,048,81 {2,699,539 24,748,354
11 ID PCA 6,'139,34;1,420,562 7,559,909
12 Deferred Federal ITC 8,247,7U 190 141,936 8,10s,848
13 Plant Excess Deferred 416,959,20(282 6,209,812 41 0,749,394
14 Non Plant Excess Deferred 1 7,634,98r 903,143 1 8,538,1 28
15 Req Liabilitv MDM Svstem 41,90i 263,219 305,126
'16 AFUDC Equity TAx Deferral 1,692,177 1,692,177
17 Exist Meters/ERTS Excess Depr Deferred 188,620 '188,620
'18 DSM TAriff Rider 284,'139 284,1 39
19 Low lncome Energy Assistance 1,343,384 1,343,384
20 Deferred CS2 & Colstrip O&M 6s8,833 658,833
21 Req Liability - TAx Reform Amortization 6,449,65'1 6,449,6s1
22
23
24
25
26
27
28
29
30
31
JZ
33
34
35
36
37
38
39
40
41
42
43
44
45 Total 501,143,487 7,690,886 0 33,988,213 527,440,814
FERC FORM NO.2/3Q (REV 12.07)Page 278
No
This Page Intentionally Left Blank
ame This
(1)
(2)Avista Corporation An Original
A Resubmission
Date of Report(Mo, Da, YD
04t15t2019
Year/Period of Report
End of 20'18/Q4
Gas Operating Revenues
1. Report below natural gas operating revenues for eadr prescribed account total. The amounts must be consistent wih the detailed data on succeeding pages.
2. Revenues in columns (b) and (c) include bansition costs from upstream pipelines.
3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) hrough (e). lndude in
mlumns (f) and (g) revenues for Accounts 480-495.
Line
No.
Tide of Account
(a)
Revenues for
Transition
Costs and
Takeor-Pay
Amount for
Cunent Year
(b)
Revenues for
Transition
Costs and
Take-or-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
481 Commercial and lndustrial Sales
3 482 Other Sales to Public Authorities
4 483 Sales for Resale
5 484 lnterdepartmental Sales
6 485 lntracompany Transfers
7 487 Forfeited Discounts
488 Miscellaneous Service Revenues
489.1 Revenues from Transportation of Gas of Others
Through Gahering Facilities
10 489.2 Revenues from Transportation of Gas of Others
Through Transmission Facilities
11 489.3 Revenues from Transportation ol Gas of Others
Through Disbibution Facilities
12 489.4 Revenues lrom Storing Gas of Others
13 490 Sales of Prod. Ext. from Natural Gas
14 491 Revenuesfrom Natural Gas Proc. by Others
15 492 lncidental Gasoline and Oil Sales
tb 493 Rentfrom Gas Property
17 494 lnterdepartmental Rents
1B 495 OtherGasRevenues
19 Subtotal:
20 496 (Less) Provision for Rate Refunds
21 TOTAL:
FERC FORM NO.2 (REV 12-07)Page 300
2
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort
lxlAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
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. OnPagel0S,includeinformationonmajorchangesduringtheyear,newseryice,andimportantrateincreasesordecreases.
6. Report he revenue fom transportation services lhat are bundled with storage services as transportation service revenue.
Line
No.
0ther
Revenues
Amount for
Current Year
(0
Other
Revenues
Amount for
Previous Year
(s)
Total
Operating
Revenues
Amount for
Cunent Year
(h)
Total
Operating
Revenues
Amount for
Previous Year
(i)
Dekatherm of
Natural Gas
Amount for
Cunent Year
0)
Dekatherm of
Natural Gas
Amount for
Previous Year
(k)
1 1 94,340,048 220,175,977 1 94,340,048 220,175,977 20,834,449 22,198,19s
2 94,094,869 1 09,897,458 94,094,869 1 09,897,458 13,622,087 14,514,777
1
4 1 37,700,61 6 143,278,875 1 37,700,61 6 143,278,875 51,383,498 55,088,826
5 271,572 315,487 271,572 31 5,487 41,215 44,1 00
6
7
8 '116,985 140,525 116,985 140,525
I
10
11
9,1 02,582 9,207327 9,102,s82 9,207,927 18,184,474 '18,932,268
12
13
14
15
16 2,678 2,693 2,678 2,693
17
1B 1,022,412 ( 6,436,726)1,022,412 ( 6,436,726)
19 436,651,762 476,582,216 436,651,762 476,582,216
20 6,764,411 2,392,142 6,764,411 2,392,142
21 429,887,351 474,190,074 429,887,351 47 4,190,074
FERC FORM NO.2 (REV 12-07)Page 30'l
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t't5t2019
Year/Period of Reporl
End of 2018/Q4
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 Others
2 Compensation for Minor or lncidental Services Provided for Others
3 Profit or Loss on Sale of Material and Supplies not Ordrnanly Purchased for Resale
4 Sales of Stream, Water, or Electricity, including Sales or Transfers to Other Departments
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 Rrght and/or Benefits Received from Others which are Realized Through Research, Development, and Demonstration Ventures
B Gains on Settlements of lmbalance Receivables and Payables
I Revenues from Penalties earned Pursuant to Tariff Provisions, including Penalties Associated with Cash-out Seftlements
10 Revenues from Shipper Supplied Gas
11 Other revenues (Speci!):
12 Misc Bills 484,356
13 Deferred Exchange Revenue 4,500,000
't4 Decoupling Deferred Revenue ( 3,961,944)
15
16
17
1B
19
20
21
22
23
24
25
26
27
28
29
30
3'l
32
33
34
35
36
JI
38
39
Total 1,022,412
FERC FORM NO.2 (12-96)Page 308
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
II_lAn Original
I-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
,|1. PRODUCTION EXPENSES
2 A. Manufactured Gas Production
3 Manufactured Gas Production (Submit Supplemental Statement)0 0
4 B. Natural Gas Production
5 B'1. Natural Gas Production and Gathering
6 Operation
7 750 Operation Supervision and Engineering 0 0
8 751 Production Maps and Records 0 0
a 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
758 Gas Well Royalties 0 U
16 759 Other Expenses 0 0
17 760 Rents 0 0
1B TOTAL Operation (Total of lines 7 thru 17)0
'19 Maintenance
20 761 Maintenance Supervision and Engineering 0 0
21 762 Maintenance of Structures and lmprovements 0 0
22 763 Maintenance of Producing Gas Wells 0 0
23 764 Maintenance of Field Lines 0 0
24 765 Maintenance of Field Compressor Station Equipment 0 0
25 766 Maintenance of Field Measuring and Regulating Station Equipment 0 0
26 767 Maintenance of Purilication Equipment 0 0
27 768 Maintenance of Drilling and Cleaning Equipment 0 0
28 769 Maintenance of Other Equipment 0 0
29 TOTAL Maintenance (Total of lines 20 thru 28)0 0
30 TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29)0 0
FERC FORM NO.2 (12-96)Page 317
15
0
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
J-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1512019
Year/Period of Report
End of 2018/Q4
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
34 771 Operation Labor 0 0
35 772 Gas Shrinkage 0 0
36 773 Fuel 0 0
37 774 Powe(0 0
38 775 Materials 0 0
39 776 Operation Supplies and Expenses 0 0
40 777 Gas Processed by Others 0 0
41 778 Royalties on Products Extracted 0 0
42 779 Marketing Expenses 0 0
43 780 Products Purchased for Resale 0 0
44 781 Variation in Products lnventory 0 0
45 (Less) 782 Extracted Products Used by the Utility-Credit 0 0
46 783 Rents 0 0
47 TOTAL Operation (Total of lines 33 thru 46)0 0
48 Maintenance
49 784 Maintenance Supervision and Engineering 0 0
50 785 Maintenance of Structures and lmprovements 0 0
51 786 Maintenance of Extraction and Refining Equipment 0 0
52 787 Maintenance of Pipe Lines 0 0
53 788 Maintenance of Extracted Products Storage Equipment 0 0
54 789 Maintenance of Compressor Equipment 0 0
55 790 Maintenance of Gas Measuring and Regulating Equipment 0 0
56 791 Maintenance of Other Equipment 0
57 TOTAL Maintenance (Total of lines 49 thru 56)0 0
58 TOTAL Products Extraction (Total of lines 47 and 57)0 0
FERC FORM NO.2 (12-96)Page 318
0
Name Respondent
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
59 C. Exploration and Development
60 Operation
61 795 Delay Rentals 0 0
62 796 Nonproductive Well Drilling 0 0
63 797 Abandoned Leases 0 0
64 798 Other Exploration 0 0
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 80'l Natural Gas Field Line Purchases 0 0
71 802 Natural Gas Gasoline Plant Outlet Purchases 0 0
72 803 Natural Gas Transmission Line Purchases 0 0
73 804 Natural Gas City Gate Purchases 214,502,540 250,078,370
74 804.1 Liquefied Natural Gas Purchases
75 805 Other Gas Purchases 0 ( 5,442)
76 (Less) 805.1 Purchases Gas Cost Adjustments ( 898,476)( 5,601 ,002)
77 TOTAL Purchased Gas (Total of lines 68 thru 76)215,401,016 255,673,930
78 806 Exchange Gas 0 0
79 Purchased Gas Expenses
80 807.1 Well Expense-Purchased Gas 0 0
81 807.2 Operation of Purchased Gas Measuring Stations 0 0
82 807.3 Maintenance of Purchased Gas Measuring Stations 0 0
83 807.4 Purchased Gas Calculations Expenses 0 0
84 807.5 Other Purchased Gas Expenses 0 0
85 TOTAL Purchased Gas Expenses (Total of lines 80 thru 84)0 0
FERC FORM NO.2 (12-96)Page 319
65
0 0
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
lxlAn
ls:
Original
J-lA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 20'18/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
86 808.1 Gas Withdrawn from Storage-Debit 19,408,914 21,687,940
87 (Less) 808.2 Gas Delivered to Storage-Credit 19,279,491 25,397,528
88 809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit 0 0
89 (Less) 809.2 Deliveries of Natural Gas for Processing-Credit 0 0
90 Gas used in Utility Operation-Credit
9'l 810 Gas Used for Compressor Station Fuel-Credit 0 0
92 811 Gas Used for Products Extraction-Credit 1,448,821 1 ,015,361
o.l 812 Gas Used for Other Utility Operations-Credit 0 0
94 TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93)1,448,821 1 ,015,361
95 813 Other Gas Supply Expenses 1,597,405 2,014,546
96 TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95)215,679,023 252,963,527
97 TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96)215,679,023 252,963,527
98 2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES
99 A. Underground Storage Expenses
't00 Operation
10'1 814 Operation Supervision and Engineering 1 5,1 79 25,153
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
1't 1 824 Other Expenses 877,951 819,775
1'.12 825 Storage Well Royalties 0 0
113 826 Rents 0 0
114 TOTAL Operation (Total of lines of 101 thru 1 '13)893,1 30 844,928
FERC FORM NO.2 (12-96)Page 320
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
lIlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t1512019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
115 Maintenance
116 830 Maintenance Supervision and Engineering 0 0
117 831 Maintenance of Structures and lmprovements 0 0
1'18 832 Maintenance of Reservoirs and Wells 0 0
1'19 833 Maintenance of Lines 0 0
120 834 Maintenance of Compressor Station Equipment 0 0
12',1 835 Maintenance of Measuring and Regulating Station Equipment 0 0
122 836 Maintenance of Purilication Equipment 0 0
123 837 Maintenance of Other Equipment 1 ,554,613 806,732
124 TOTAL Maintenance (Total of lines '1 16 thru 123)1,554,613 806,732
125 TOTAL Underground Storage Expenses (Total of lines 114 and 124)2,447,743 1,651,660
126 B. Other Storage Expenses
127 Operation
128 840 Operation Supervision and Engineering 0 0
129 841 Operation Labor and Expenses 0 0
130 842 Rents 0
131 842.1 Fuel 0 0
132 842.2 Power 0 0
133 842.3 Gas Losses 0 0
't34 TOTAL Operation (Total of lines 128 thru 133)0 0
135 Maintenance
136 843.1 Maintenance Supervision and Engineering 0 0
137 843.2 Maintenance of Structures 0 0
138 843.3 Maintenance of Gas Holders 0 0
139 843.4 Maintenance of Purification Equipment 0 0
140 843.5 Maintenance of Liquefaction Equipment 0 0
141 0 0
'142 843.7 Maintenance of Compressor Equipment 0 0
143 843.8 Maintenance of Measuring and Regulating Equipment 0 0
144 843.9 Maintenance of Other Equipment 0 0
145 TOTAL Maintenance (Total of lines 136 thru 144)0 0
146 TOTAL Other Storage Expenses (Total of lines 1 34 and 145)0 0
FERC FORM NO.2 (12-96)Page 321
0
843.6 Maintenance of Vaporizing Equipment
Name of Respondent
Avista Corporation (1)
(2\
Original (Mo, Da
A Resubmission 04t15t20't9
Year/Period of Report
End of 20'18/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
147 C. Liquefied Natural Gas Terminaling and Processing Expenses
148 Operation
149 844.1 Operation Supervision and Engineering 0
150 844.2 LNG Processing Terminal Labor and Expenses 0 0
151 844.3 Liquefaction Processing Labor and Expenses 0 U
152 844.4 Liquefaction Transportation Labor and Expenses 0 0
153 844.5 Measuring and Regulating Labor and Expenses 0 0
154 844.6 Compressor Station Labor and Expenses 0 0
'155 844.7 Communication System Expenses 0 0
156 844.8 System Control and Load Dispatching 0 0
157 845.1 Fuel 0 0
158 845.2 Power 0 0
159 845.3 Rents 0
160 845.4 Demurrage Charges 0 0
161 (less) 845.5 Wharfage Receipts-Credit 0 0
162 845.6 Processing Liquefied or Vaporized Gas by Others 0 0
163 846.1 Gas Losses 0 0
'164 846.2 Other Expenses 0 0
165 TOTAL Operation (Total of lines 149 thru 1 64)0 0
166 Maintenance
167 847.'l Maintenance Supervision and Engineering 0 0
168 847.2 Maintenance of Structures and lmprovements 0 0
169 847.3 Maintenance of LNG Processing Terminal Equipment 0 0
170 847.4 Maintenance of LNG Transportation Equipment 0 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 1 67 thru 174)0 0
't76 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)2,447,743 1,651,660
FERC FORM NO.2 (12-96)Page 322
0
0
Name of Respondent
Avista Corporation
This
(1)
(2\
Reoort ls:
[]nn originat
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
178 3. TRANSMISSION EXPENSES
179 Operation
180 850 Operation Supervision and Engineering 0 0
181 851 System Control and Load Dispatching 0 0
182 852 Communication System Expenses 0 0
183 853 Compressor Station Labor and Expenses 0 0
184 854 Gas for Compressor Station Fuel 0
185 855 Other Fuel and Power for Compressor Stations 0 0
186 856 Mains Expenses 0 0
187 857 Measuring and Regulating Station Expenses 0 0
188 858 Transmission and Compression of Gas by Others 0 0
189 859 Other Expenses 0 0
190 860 Rents 0 0
191 TOTAL Operation (Total of lines 180 thru 190)0 0
192 Maintenance
193 861 Maintenance Supervision and Engineering 0 0
194 862 Maintenance of Structures and lmprovements 0 0
'195 863 Maintenance of Mains 0 0
196 864 Maintenance of Compressor Station Equipment 0 0
197 865 Maintenance of Measuring and Regulating Station Equipment 0 0
198 866 Maintenance of Communication Equipment 0 0
199 867 Maintenance of Other Equipment 0 0
200 TOTAL Maintenance (Total of lines 193 thru 199)0 0
201 TOTAL Transmission Expenses (Total of lines 191 and 200)0 0
202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and Engineering 2,133,710 2,517,597
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
This
(1)
(2)
Reoort ls:
II.]An Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
208 874 Mains and Services Expenses 5,760,059 6,848,075
209 875 Measuring and Regulating Station Expenses-General 195,295 272,676
210 876 Measuring and Regulating Station Expenses-lndustrial 22,023 19,000
211 877 Measuring and Regulating Station Expenses-City Gas Check Station 96,654 165,259
212 878 Meter and House Regulator Expenses 697,1 01 810,264
213 879 Customer lnstallations Expenses 2,648,771 3,190,31 1
214 880 Other Expenses 3,259,800 3,2't1,115
215 881 Rents 60,361 63,758
216 TOTAL Operation (Total of lines 204 thru 21 5)14,873,774 17,098,055
217 Maintenance
218 885 Maintenance Supervision and Engineering 233,303 291,604
219 886 Maintenance of Structures and lmprovements 0 0
220 887 Maintenance of Mains 2,356,740 2,646,970
221 888 Maintenance of Compressor Station Equipment 0 0
222 889 Maintenance of Measuring and Regulating Station Equipment-General 569,260 511,713
223 890 Maintenance of Meas. and Reg. Station Equipment-lndustrial 103.774 992,1 09
224 891 Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 80,624 105,065
225 892 Maintenance of Services 1,664,336 2,018,175
226 893 Maintenance of Meters and House Regulators 2,',\43,842 2,542,797
227 894 Maintenance of Other Equipment 607,1 16 490,277
228 TOTAL Maintenance (Total of lines 218 lhru 227)7,758,995 9,598,710
229 TOTAL Distribution Expenses (Total of lines 216 and 228)22,632,769 26,696,765
230 5. CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 139,050 218,512
233 902 Meter Reading Expenses 1 ,910,839 2,264,716
234 903 Customer Records and Collection Expenses 8,035,197 s,001,055
FERC FORM NO.2 (12-96)Page 324
I
Name of Respondent
Avista Corporation
This Reoort ls:(1) []Rn original(2) flA Resubmission
Date of ReDort(Mo, Da, Yi)
0411512019
Year/Period of Report
End of 2018/Q4
Gas Operation and Maintenance Expenses(continued)
Line
No.
Account
(a)
Amount for
Current Year
(b)
Amount for
Previous Year
(c)
235 904 Uncollectible Accounts 1,856,595 2,482,594
236 905 Miscellaneous CustomerAccounts Expenses 241 ,665 222,367
237 TOTAL Customer Accounts Expenses (Total of lines 232 thru 236)1 2,1 83,346 14,189,244
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision 0 0
241 908 Customer Assistance Expenses '10,689,454 13,677,235
242 909 lnformational and lnstructional Expenses 1,180,742 981,821
243 910 Miscellaneous Customer Service and lnformational Expenses 324,966 297,636
244 TOTAL Customer Service and lnformation Expenses (Total of lines 240lhru 243)12,195,162 14,956,692
245 7. SALES EXPENSES
246 Operation
247 91 1 SupeMsion 0 0
248 912 Demonstrating and Selling Expenses 346 345
249 1,040 0
250 916 Miscellaneous Sales Expenses 0 0
25',!TOTAL Sales Expenses (Total of lines 247 lhru 250)1,386 345
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 'r0,540,964 12,818,632
255 921 Office Supplies and Expenses 1,899,662 '1,662,561
256 (Less) 922 Administrative Expenses Transferred-Credit 19.674 18,822
257 923 Outside Services Employed 3,740,550 3,072,504
258 924 Property lnsurance 448,289 429,491
259 925 lnjuries and Damages 1,607,878 1,257,759
260 926 Employee Pensions and Benefits 10,522,259 567,728
261 927 Franchise Requirements 0 0
262 928 Regulatory Commission Expenses 1,785,080 2,366,O',t2
263 (Less) 929 Duplicate Charges-Credit 0 0
264 930.1General Advertising Expenses 0 0
265 930.2Miscellaneous General Expenses 1,557,349 1,717 ,673
266 931 Rents 165,973 252,321
267 TOTAL Operation (Total of lines 254 thru 266)32,248,330 24,125,859
268 Maintenance
269 932 Maintenance of General Plant 4,579,981 4,555,212
270 TOTAL Administrative and General Expenses (Total of lines 267 and 269)36,828,311 28,68'r ,071
271 TOTAL Gas O&M Expenses (Total of lines 97 ,177 ,201 ,229,237 ,244,251, and 270)301 ,967,740 339,1 39,304
FERC FORM NO.2 (12-96)Page 325
913 Advertising Expenses
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
l-XlAn
ls:
Original
l-l A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Used in Utility Operations
1. Report below details of credits during the year to Accounts 81 0, 81 1, and 81 2.
2. lf any natural gas was used by the respondent for which a charge was not made to the appropriate operating expense or other account, list separately in column (c) the Dth of gas
used, omifting entries in column (d).
Line
No.
Purpose for lMrich Gas
Was Used
(a)
Account
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)
1 810 Gas Used for Compressor Station Fuel - Credit 2,230,115
2 81 1 Gas Used for Products Extraction - Credit 2,590,517 1,448,821
J Gas Shrinkage and Other Usage in Respondents
Own Processing
4 Gas Shrinkage, etc. for Respondents Gas
Processed by Others
5 812 Gas Used for Other Utility Operations - Credit
(Report separately for each principal use. Group
minor uses.)
6
7
8
o
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25 Total 4,820,632 1,448,821
FERC FORM NO.2 (12-96)Page 331
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort
l2!JAn
ls:
Original
! A Resubmission
Date of ReDort(Mo, Da, Yi)
0411512019
Year/Period of Report
End of 2018/Q4
Other Gas Supply Expenses (Account 813)
1. Report oher gas supply expenses by descriptive titles that dearly indicate the nature of sudr expenses. Show maintenance expenses, revaluation of monthly encroadrments
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 892,420
3 Labor Loading 320,702
4 Other Expenses (Professional Services, Travel, Transportation, Office Supplies, Training)191,077
5
6 Regulatory Affairs
7 Labor 22,581
8 Labor Loading 9,057
q Other Expenses (Travel, Transportation, Gas Technology lnstitute Paymenb)16'1,569
'10
11
12
13
14
15
16
17
18
'19
20
21
22
IJ
24
25 Total 1,597,406
FERC FORM NO.2 (12-96)Page 334
Name of Respondent
Avista Corporation
This
(1)
(2t
Reoort
lllAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t15t2019
Year/Period of Report
End of 2018/Q4
Miscellaneous General Expenses (Account 930.2)
1. Provide the information requested below on miscellaneous general expenses.
2. For Other Expenses, show the (a) purpose, (b) recipient and (c) amount of such items. List separately amounts of $250,000 or more however, amounts less than $250,000 may be
grouped if the number of items of so grouped is shown.
Line
No.
Description
(a)
Amount
(in dollars)
(b)
1 lndustry association dues.167,518
2 Experimental and general research expenses
a. Gas Research lnstitute (GRl)
b. Other
3 Publishing and distributing information and reports to stockholders, trustee, registrar, and transfer
agent fees and expenses, and other expenses of servicing outstanding securities of the respondent 124,187
4 Community Relations 6,869
5 Director Expenses 239,271
6 Education and lnformation 12,78s
7 Rating Agency Fees 60,067
I Aircraft Operations and fees 1 29,865
0 Vendors => 5000 535,1 75
10 Vendors < 5000 281,612
11
12
'13
14
15
ID
17
18
19
20
21
22
23
24
25 Total 1,557,349
FERC FORM NO.2 (12-96)Page 335
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
l-IlAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2,404.3,405) (Except Amortization of
Acquisition Adjustments)
1. Report in Section A he amounts of depreciation expense, depletion and amortization for the accounts indicated and classifed according to the plant fnctional groups shown.
subaccount or functional classifications other than those pre-printed in column (a). lndicate in a footnote the manner in which column (b) balances are
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Line
No.
Depreciation
Expense
(Account 403)
Amortization
Expense for
Asset
Retirement
Costs
(Account
403.1) (c)
Functional Classilication
(a)(b)
Amortization and
Depletion of
Producing Natural
Gas Land and Land
Rights
(Account 404.1 )
(d)
Amortization of
Underground Storage
Land and Land
Rights
(Account 404.2)
(e)
1 lntangible plant 152
2 Production plant, manufactured gas
3 Production and gathering plant, natural gas
4 Products extraction plant
5 Underground gas storage plant 1,057,975
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
I Distribution plant 24,917,412
10 General plant 'l ,0 18,642
11 Common plant-gas 6,894,989
12 TOTAL 33,889,018
FERC FORM NO.2 (12-96)Page 336
1s2
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lXlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Depreciataon, Depletion and Amortization of Gas PIant (Accts 4O3,404.1,404.2,404.3,405) (Except Amortization of
Acquisition Adjustments) (continued)
depreciation charges, show in a footnote any revisions made to estimated gas reserves.
provisions and the plant items to which related.
Section A Summary of Depreciation, Depletion, and Amortization Charges
Line
No
Amoftzation of
Other Limited-term
Gas Plant
(Account 404.3)
(0
Amortization of
Other Gas Plant
(Account 405)
(s)
Total
(b to s)
(h)
Functronal Classifcation
(a)
1 177,344 177,496 lntangible plant
2 Production plant, manufactured gas
3 Production and gathenng plant, natural gas
4 Products extraction plant
(1,057,975 Underground gas storage plant
6 Other storage plant
7 Base load LNG terminaling and processing plant
8 Transmission plant
o 24,917,412 Distribution plant
10 1,018,642 General plant
11 8,404,609 1 5,299,598 Common plant4as
12 8,581,953 42,471,123 TOTAL
FERC FORM NO.2 (12-s6)Page 337
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
fiAn originat
l-lA Resubmission
Date of Reporl(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Depreciation, Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405) (Except Amortization of
Acquisition Adjustments) (continued)
4. Addrowsasnecessarytocompletelyreportall data. Numbertheadditional rowsinsequenceas2.01,2.02,3.01,3.02,etc.
Section B. Facto6 Used in Estimating Depreciation Charges
Line
No.Functional Classification
(a)
Plant Bases
(in thousands)
(b)
Applied Depreciation
or Amortization Rates
(percent)
(c)
1 Production and Gathering Plant
2 Offshore (footnote details)
3 0nshore (footnote details)
4 Underground Gas Storage Plant (footnote details)
Transmission Plant
6 Offshore (footnote detai ls)
7 Onshore (footnote details)
8 General Plant (footnote details)
I
10
11
12
13
14
15
FERC FORM NO.2 (12-96)Page 338
5
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
lxlAn
ls:
Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t't5t2019
Year/Period of Report
End of 2018/Q4
Particulars Concerning Certain lncome Deductions and lnterest Charges Accounts
Report the information specified below, in the order given, for the respective income deduction and interest charges acmunts.
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 the year, indicate the amount and interest rate
which interest was inarned during the year.
(d) Other lnterest Expense (Account 431) - Report details induding the amount and interest rate for other interest charges incuned during the year.
Line
No
Item
(a)
Amount
(b)
1 426.10 DONATIONS 250,000
2 Items under $250,000 3,313,420
?Total 426.10 3,563,420
4 Acd. 426.20 LIFE INSURANCE
E Ofiicers Life 134,260
t)SERP 2,408,440
7 Items Under $250,000 251 ,1 63
8 Total 426.20 2,793,863
I Acct 426.30 PENALTIES
10 Items under $250,000 2,053
11 Total 426.30 2,053
12 Acc1426.40 EXPEDICTURES FOR CERTAIN ClvlC, POLITICAL AND RELATED ACTIVITIES
13 items under $250,000 2,073,702
14 Total 426.40 2,073,702
15 Acct 426.50 0THER DEDUCTI0NS
't6 Executive Deferred Compensation 194,725
17 Kirkland and Elllis LLP 1,908,627
18 Hydro 0ne Avista Acquisition 684,161
to Hanna & Assoc 484,684
20 items under $250,000 2,070,476
21 Total 426.50 5,342,673
tt Avista Capital 1,221,268
23 f olal427.67 1,221,268
24 Acct 430.0 INTEREST 0N DEBT TO ASSOC COMPANIES
25 Total 430.0
26 Acct431 OTHER INTEREST EXPENSE
)7 lnterest on eleclnc defenals 2,172,572
28 lnterest on natural gas deferrals 2,1 53,1 95
29 Interst on commifted line of credit 2,1 68,853
30 0ther 254,498
3l Total 431.0 6,749,'l '18
32
a1
34
35
FERC FORM NO.2 (12-96)Page 340
Name of Respondent
Avista Corporation
This
(1)
12)
Reoort
Enn
ls:
Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Regulatory Commission Expenses (Account 928)
or cases in which such a body was a party.
2. ln column (b) and (c), indicate whether he expenses were assessed by a regulatory body or were othenrrise incuned by the utility.
Line
No.
Description
(Furnish name of regulatory commission
or body, the docket number, and a
description of he case.)
(a)
Assessed by
Regulatory
Commission
(b)
Expenses
of
Utility
(c)
Total
Expenses
to Date
(d)
Deferred in
Account 182.3
at Beginning
of Year
(e)
1 Federal Energy Regulatory Commission
2 Charges include annual fee and license fee
3 for the Spokane River Project, the Cabinet
4 Gorge Project and Noxon Rapids Project
2,595,769 I 04,489 2,700,258
5
6 Washington Utilities and Transportation Commission
7 lncludes annual fee and various other electric dockets
1,103,122 497,527 1,600,649
8
q lncludes annual fee and various other natural gas
dockets 342,265 1 43,35 1 485,616
10
11 ldaho Public Utilities Commission
12 lncludes annual fee and various other electric dockets
577,500 159,921 737,421
13
14 lncludes annual fee and various other natural gas
dockets 148,782 40,034 '188,815
15
16 Public Utility Commission of Oregon
17 lncludes annual fee and various other dockets
605,703 153,477 759,180
18
19 Not directly assigned electric
685,897 685,897
20 Not directly assigned natural gas
351,469 351,469
21
22
aa
24
25 Total 5,373,141 2,136,'165 7,509,305
FERC FORM NO.2 (12-96)Page 350
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
lI_lAn Original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t1512019
Year/Period of Report
End of 2018/Q4
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 amortizatron
4. ldentify separately all annual charge adjustments (ACA).
5. List in column (f), (g), and (h) expenses incurred during year whid were charges cunently to income, plant, or other accounts.
6. Minor items (less than $250,000) may be grouped.
Line
No.
Expenses
lncured
During Year
Charged
Cunenfly To
Departnent
(f)
Expenses
lncurred
During Year
Charged
Cunently To
Account No.
(s)
Expenses
lncurred
During Year
Charged
Currently To
Amount
(h)
Expenses
lncuned
During Year
Deferred to
Account
182.3
(i)
Amortized
During Year
Conba
Account
(i)
Amortized
During Year
Amount
(k)
Deferred in
Account 182.3
End of Year
(t)
1
2
3
4
Electnc 928 2,707,060
5
6
7
Electric 928 1,671,938
8
o
Gas 928 s01,029
'10
11
12
Electric 928 748,986
13
14
Gas 928 1 94,806
15
16
17
Gas 928 790,72s
18
19
Electric 928 1,044,677
20
Gas 928 456,940
21
22
23
24
25 8,1 16,161
FERC FORM NO.2 (12-96)Page 351
ame
Avista Corporation (1)
(2)
An Original
A Resubmission
(Mo, Da,
o4t15t2019
Year/Period of Report
End of 2018/Q4
Employee Pensions and Benefits (Account 926)
1. Report below the items contained in Account 926, Employee Pensions and Beneflts.
Line
No.
Expense
(a)
Amount
(b)
1 Pensions - defined benelit plans 20,623,979
I Pensions - other
J Post-retirement benefits other than pensions (PBOP)8,833,830
4 Pos! employment benefit plans
E 0ther (Specify)802,787
6 Health insurance and benefits 25,892,927
7 401(K) Savings Plan '10,043,964
8 Employee Education 2,091,037
9 Allocated to capital and other expense accounts ( 57,766,265)
10
't1
12
'13
't4
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 10,522,259
FERC FORM NO.2 (NEW 12-07)Page 352
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lIlAn Original
[-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Distribution of Salaries and Wages
the particular operating function(s) relating to the expenses.
reporting 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
,Production 12,440,584 12,440,584
4 3,623,837 3,623,837
5 Distribution 8,781,520 8,781,520
6 Customer Accounts 7,560,552 7,560,552
7 Customer Servrce and lnformational 618,095 6'18,095
8 Sales
I Adminiskative and General 20,423,547 20,423,s47
'10 TOTAL Operation (Total of lines 3 thru 9)53,448,1 35 53,448,1 35
11 Maintenance
12 Production s,091,038 5,091,038
13 Transmission 1,063,818 '1,063,818
14 Distribution 3,656,607 3,656,607
15 Administrative and General 8,557,638 8,557,638
'16 TOTAL Maintenance (Total of lines 12 thru 1 5)9,8'11,463 8,557,638 1 8,369,1 0 1
17 Total 0peration and Maintenance
18 Production (Total of lines 3 and 12)17 ,531,622 17 ,531,622
19 Transmission (Total of lines 4 and 13)4,687,6s5 4,687,655
20 Distnbution (Total of lines 5 and 1 4)12,438,127 12,438,127
21 Customer Accounts (line 6)7,560,552 7,560,552
22 Customer Service and lnformational (line 7)618,09s 618,095
23 Sales (line 8)
24 Administrative and General (Total of lines 9 and 15)20,423,547 8,557,638 28,98 1,1 85
25 TOTAL Operation and Maintenance (Total of lines 18 thru 24)63,259,598 8,557,638 71,817 ,236
tb Gas
27 Operation
l6 Producton - Manufactured Gas
29 Productjon - Natural Gas(lnduding Exploration and Development)
30 Other Gas Supply 915,001 915,001
31 Storage, LNG Terminaling and Processing 9,900 9,900
32 Transmission
Distribution 5,724,403 5,724,403
34 Customer Accounts 3,268,072 3,268,072
)E Customer Service and lnformational 458,819 4s8,819
36 Sales
3l Administrative and General 8,450,852 8,450,852
20 TOTAL Operation (Total of lines 28 thru 37)18,827,047 18,827,047
39 Maintenance
40 Production - Manufactured Gas
41 Production - Natural Gas(lnduding Exploration and Development)
42 Other Gas Supply
43 Storage, LNG Terminaling and Processing
44 Transmission 1,439,174 '1,439,174
45 Distribution 2,948,156 2,948,1 56
FERC FORM NO.2 (REVISED)Page 354
Transmission
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
[]Rn original
l-lA Resubmission
Date of Report(Mo, Da, Y0
04t15t2019
Year/Period of Report
End of 2018/Q4
Distribution of Salaries and Wages (continued)
Line
No.
Classification
(a)
Direct Payroll
Distnbution
(b)
Payroll Billed
by Affiliated
Companies
(c)
Allocation of
Payroll Charged
for Clearing
Accounts
(d)
Total
(e)
46 Adminiskative and General 2,970,413 2,970,413
47 TOTAL Maintenance (Total of lines 40 thru 46)4,387,330 2,970,413 7,357,743
48 Gas (Continued)
49 Total Operation and Maintenance
50 Production - Manufactured Gas (Total of lines 28 and 40)
51 Production - Natural Gas (lncluding Expl. and Dev.)(ll. 29 and 41)
52 Other Gas Supply (Total of lines 30 and 42)915,001 915,001
53 Storage, LNG Terminaling and Processing (Total of ll. 31 and 43)9,900 9,900
54 Transmission (Total of lines 32 and 44)1,439,174 1,439,174
55 Distribution (Total of lines 33 and 45)8,672,s59 8,672,559
56 Customer Accounts (Total of line 34)3,268,072 3,268,072
EA Customer Sennce and lnformational (Total of line 35)458,819 458,8'19
58 Sales (Total of line 36)
59 Administrative and General (Total of lines 37 and 46)8,450,852 2,970,413 11,421,265
60 Total Operation and Maintenance (Total of lines 50 thru 59)23,214,377 2,970,413 26,184,790
61 Other Utility Departments
62 Operation and Maintenance
63 TOTAL ALL Utility Dept (Total of lines 25, 60, and 62)86,473,975 1 1,528,051 98,002,026
64 Utility Plant
65 Consbuction (By Utility Departments)
66 Eleckic Plant 41,798,020 6,925,464 48,723,484
67 Gas Plant 1 1,590,993 2,573,090 14,164,083
68 Other
69 TOTAL Constuction (Total of lines 66 hru 68)53,389,01 3 9,498,554 62,887,s67
70 Plant Removal (By Utility Departments)
71 Electric Plant 2,346,812 243,309 2,590,121
72 Gas Plant 449,275 46,579 495,854
73 0ther
74 TOTAL Plant Removal (Total of lines 71 thru 73)2,796,087 289,888 3,085,975
75 Other Accounts (Specify) (footnote details)48,527,472 ( 21,316,488)27,210,984
76 TOTAL Other Acmunts 48,527,472 ( 21,316,488)27,210,584
77 TOTAL SALARIES AND WAGES 19'1,'186,547 q '19'l ,'186,ss2
FERC FORM NO.2 (REVISED)Page 355
Name of Respondent
Avista Corporation
This
(1)
(2)
ReDort ls:
lIl An Original
flA Resubmission
Date of Report(Mo, Da, Yr)
04t't5t2019
Year/Period of Report
End of 2018/Q4
Charges for Outside Professional and Other Consultative Services
except those whidr 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 charges for the year.
2. Sum under a description 'Other", all of the aforementioned services amounting to $250,000 or less.
3. Total under a description "Total", the total of all of the aforementioned services.
according to the instructions for that schedule.
Line
No.
Desuiption
(a)
Amount
(in dollars)
(b)
1 CROWDSTRIKE 3,663,758
2 PATHOLOGIST REG LABORATORY 3,077,022
3 PER SE GROUP INC 2,932,86s
4 SPRAGUE PEST SOLUTIIONS 2,097,1 96
6 SANDRA WIGGINS PHOTOGRAPHY 2,073,857
6 PATTERN RECOGNITION TECHOLOGIES 2,046,730
7 HANNA AND ASSOC 1,944,839
8 LEE & HAYES 1,858,066
o ACCURATE STRIPING '1,682,503
10 WATER DIAMONDS 1,523,857
11 ORACLE AMERICA 1,321,43s
12 CAROLYN HENDRIKSON 1,259,576
13 OPTIV SECURITY 1,1 95,61 3
14 CULVER COMPANY 1,'186,528
15 CROWLEY FLECK PLLP 1,1s2,s12
16 CORP CREDIT CARD 1,147 ,547
17 FACTS INC 903,1 90
18 ENCOMPASS NORTHWEST SERVICES 899,1 28
'19 TULLETT PREBON AMERICAS CORP 831,673
20 WEST ONE PLUMBING 807,042
21 JIMS TRANSFER INC DBA 736,86 1
22 ITRON INC 660,487
23 LAKELAND RESTORATION SERVICES 644,112
24 MCCUNES INSTRUMENTS 595,995
at DR KIRK PARGE 591,965
26 RACOVERY PLANNER.COM 537,1 58
27 L & S ENGINEERING 536,724
28 PROLAWN SERVICES 5'19,450
29 THOMAS E EBZERY 5 1 4,946
30 EAGLE TECHNICAL SERVICES 512,728
31 ROTO ROOTER 511,680
32 NORTHWEST POWER POOL 505,89 1
1a MCKINSTRY ESSENTION 494,826
34 ABREMOD LLC 484,963
35 NORTHERN LIGHTS INC 483,761
FERC FORM NO.2 (REVISED)Page 357
Avista Corporation (1)
(2\
An Original
A Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Charges for Outside Professional and Other Consultative Services (continued)
Line
No.
Desoiption
(a)
Amount
(in dollars)
(b)
1 ZBA ARCHITECTURE 467,724
2 STEPHENS TIMBER CONSULTING 454,024
2 LOOMIS 430,052
4 POWER TESTING & ENERGIZATION 425,250
5 CULLIGAN SPOKANE 417,153
6 US HEALTHWORKS MEDICAL GROUP 383,931
7 LUCKY ACRES FENCING 377,559
8 FISH GUYS 361 ,1 81
o JACO ANALYTICAL 356,703
10 HACKETT GROUP 349,521
11 EVCO SOUND & ELECTRONICS 336,501
12 WALCO INC 331,684
't3 DECKERT JILLIONS 3'r8,8'r4
14 CARSON SHEET METAL WORKS INC 317,761
15 PROVIIDENCE HEALTH & SERVICES 305,553
16 ANDERSON ENVIRONMENTAL CONSULTING 305,279
17 ADVENTURES IN ADVERTISING 301,122
18 POWER CITY ELECTRIC 299,669
19 ASPECT CONSULTING 296,890
20 TIMBERLAND MANAGEMENT CO 296,373
21 BUG ZAPPER PEST CONTROL 293,959
22 UTILICAST LLC 289,652
23 SMART ENERGY CONSUMER COLLABORATIVE 283,3 14
24 BREWER PUBLIC AFFAIRS 272,360
25 ENREG GROUP INC 271,299
lb POWER ENGINEERS INC 271,034
27 JOE HALL FORD. LINCOLN-MERCURY 265,59 1
28 AFFIRMA CONSULTING 257,212
29 Subtotal 51,273,649
30 OTHER 21,910,565
31 TOTAL 73,184,214
7n
34
35
FERC FORM NO.2 (REVISED)Page 357.1
Name of Respondent
Avista Corporation
This
(1)
(2\
ReDort ls:
[]Rn originat
!A Resubmission
Date of Report(Mo, Da, Yr)
0411512019
Year/Period of Report
End of 2018/Q4
Transactions with Associated (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 "Otrer", all of the aforementioned goods and services amounting to $250,000 or less.
3. Total under a description "Total", the total of all of the aforementioned goods and services.
4. Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a footnote the basis of the allocatlon.
Line
No.
Description ofthe Good or Service
(a)
Name of Associated/Affiliated Company
(b)
Account(s)
Charged or
Credited
(c)
Amount
Charged or
Credited
(d)
1 Goods or Services Provided by Afliliated Company
2 Other Steam Plant Square 931000 1 06,500
4
I
6
7
I
I
10
11
12
13
14
{(
16
17
't8
'19
20 Goods or Services Provided for Affiliated Company
21 Corporate Support Salix 146000 342,114
22 Other Avista Development '146000 1 '12,536
23 Other Avista Capital 146000 89,779
24 Other AELP 146000 30,419
25 Other AJT Mining 146000 8,428
26 Other Steam Plant Square '146000 1 20,008
Other Court Yard Office Center 146000 56,931
28
29
30
31
32
11
34
.E
36
38
39
40
FERC FORM NO.2 (NEW 12-07)Page 358
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort ls:
lr_lAn Original
l-lA Resubmission
Date of Reoort
(Mo, Da, Yi)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Storage Projects
1. Report injections and withdrawals of gas for all storage projects used by respondent.
Line
No.
Item
(a)
Gas
Belonging to
Respondent
(Dth)
(b)
Gas
Belonging to
Others
(Dth)
(c)
Total
Amount
(Dth)
(d)
ST0RAGE 0PERATIONS (in Dth)
1 Gas Delivered to Storage
2 January '183,166 1 83,1 66
February 272,361 272,361
4 March
5 April 652,495 652,495
6 May 2,084,065 2,084,065
7 June 2,688,993 2,688,993
8 July 447,082 447,082
q August 1,522,279 1,522,279
10 September 1,499,207 1,499,207
11 October 246,784 246,784
12 November 325,1 01 32s,101
'13 December 410,402 410,402
14 TOTAL (Total of lines 2 thru 13)'10,331 ,935 1 0,331 ,935
15 Gas Withdrawn from Storaqe
'16 January 1,946,260 1,946,260
17 February 2,337,839 2,337,839
't8 March 876,342 876,342
19 April 364,854 364,8s4
20 May 303,375 303,375
21 June 3,084 3,084
22 July 176,817 176,817
August 10,228 10,228
24 September 4,485 4,485
,)\0ctober 683,649 683,64S
to November 1,582,1 s3 1,582,153
27 December 912,962 912,962
l6 TOTAL (Total of lines 16 thru 27)9,202,048 9,202,048
FERC FORM NO.2 (12-96)Page 512_
I
Name of Respondent
Avista Corporation
This
(1)
(2)
Reoort
l-I-lAn
ls:
Original
J-lA Resubmission
Date of Report(Mo, Da, Yr)
o4t1512019
Year/Period of Report
End of 2018/Q4
Gas Storage Projects
1. On line 4, enter the total storage capacity certificated by FERC.
2. Report total amount in Dth or other unit, as applicable on lines 2, 3, 4, 7. lf quantity is converted from Mcf to Dth, provide conversion faclor in a footnote.
Line
No.
Item
(a)
Total Amount
(b)
STORAGE OPERATIONS
1 Top or Working Gas End of Year 8,528,000
2 Cushion Gas (lnduding Native Gas)7,730,668
3 Total Gas in Reservoir (Total of line 1 and 2)1 6,258,668
4 Certifi cated Storage Capacity 1 6,258,668
q Number of lnjection - Withdrawal Wells 50
6 Number of Observation Wells aa
7 Maximum Days' Withdrawal from Storage
8 Date of Maximum Days'Withdrawal
o LNG Terminal Companies (in Dth)
'10 Number of Tanks
11 Capacity of Tanks
12 LNG Volume
13 Received at "Ship Rail"
14 Transferred to Tanks
15 Wrthdrawn from Tanks
'16 "Boil Off' Vaporization Loss
FERC FORM NO.2 (12-96)Page 513_
1 07,806
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
04t15t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
Schedule Page: 513 Line No.:7 Column: b
Mcf converted to Dth using a factor of 1.04
FERC FORM NO. 2 (12-96)Page 552.1
Name of Respondent
Avista Corporation
This
(1)
(2\
ReDort ls:
Ix] An Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04115t2019
Year/Period of Report
End of 2018/Q4
Auxiliary Peaking Facilities
installations, gas liquefaction plants, oil gas sets, etc.
2. For column (c), for underground storage projects, report the delivery capacity on Februar 1 of the heating season overlapping the yearend for which this report is submitted.
For other facilities, report the rated maximum daily delivery capacities.
separate plant as contemplated by general instruction 1 2 of the Uniform System of Accounts.
Line
No.
Location of
Facility
(a)
Type ol
Facility
(b)
Maximum Daily
Delivery Capacity
of Facility
Dth
(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 41,990,959 Yes
3 Storage Field
4 Washington & ldaho Supply
5
6 Chehalis, Washington Underground Natural Gas 52,000 6,573,990 Yes
7 Storage Field
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
IO Washington & ldaho Supply
17
18 Underground Natural Gas 63,875 Yes
19 Storage Field
20 Oregon Supply
21
22
l3
24
25
to
27
to
29
30
FERC FORM NO.2 (12-96)Page 519
I
Chehalis, Washington
Rod< $prings, Wyoming
Rock $prings, lA/yom ing
Name of Respondent
Avista Corporation
This Report is:
(1) X An Original
(2) _ A Resubmission
Date of Report
(Mo, Da, Yr)
o4115t2019
Year/Period of Report
2018tQ4
FOOTNOTE DATA
519 Line No.: 14 Column: a
Schedule Page: 519 Line No.: 10 Column: a
isa in the facilities not an owner,and is a fee for demand and
isa in the facilities not an and is a fee for demand 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
519 Line No.: 18 Column: a
Name of Respondent
Avista Corporation
ThiS
(1)
(2)
Reoort ls:
IXlAn Original
l-lA Resubmission
Date of Report(Mo, Da, Yr)
04t15t2019
Year/Period of Report
End of 2018/Q4
Gas Account - Natura! Gas
1. The purpose ol this schedule is lo account lor the quantity of natural gas received and delivered by the respondent.
2. Natural gas means either natural gas unmixed or any mixture ol natural and manuractured gas.
3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items ol receipts and deliveries,
4. Enter in column (d) the respective quarte/s Dth as reporcd in the schedules indicated for the items ol receipts and deliveries.
5. lndicate in a footnote the quantitles of bundled sales and transportation gas and specify the line on which such quantities are listed.
6. It the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose.
were not transported through any interstate portion of the reportrng pipeline.
8. lndicate in a footrDte the specific gas purchase expense account(s) and related to which the aggregate volumes reprted on line No. 3 relate.
reporting year, and (3) contract storage quantities,
lootnotes.
Line
No.
Item
(a)
Ref. Page No. of
(FERC Form Nos.
2t2-Al
(b)
Total Amount
of Dth
Year lo Date
(c)
Current Three
Months
Ended Amount of Dth
Quarterly Only
01 Name of System:
2 GAS RECEIVED
3 Gas Purchases (Accounts 800-805)88,817,723 22,435,592
4 Gas of Others Received for Gathering (Account 489.1 )303
5 Gas of Others Received for Transmission (Account 489.2)305
b Gas of Others Received for Distribution (Account 489.3)30'l 18,184,474 4,949,769
7 Gas of Others Received for Contract Storage (Account 489.4)307
8 Gas of Others Received for Production/Extraction/Processing (Account 490 and 49'l )
o Exdranged Gas Received from Others (Account 806)328 ( 1s3,970)( 135,913)
10 Gas Received as lmbalances (Account 806)328
11 Receipts of Respondents Gas Transported by Others (Account 858)332
12 Other Gas Withdrawn from Storage (Explain)( 1,092,942)2,172,426
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)1 05,755,285 29,421,874
17 GAS DELIVERED
18 Gas Sales (Accounts 480484)85,881,249 23,938,213
19 Deliveries of Gas Gathered for Others (Account 489.1 )
20 Deliveries of Gas Transported for Others (Actount 489.2)305
21 Deliveries of Gas Distributed for Others (Account 489.3)301 17,643,921 4,707,944
22 Deliveries of Contract Storage Gas (Account 489.4)307
Gas of Others Delivered for Production/Extractron/Processing (Account 490 and 491 )
24 Exchange Gas Delivered to Others (Account 806)328
25 Gas Delivered as lmbalances (Account 806)328
to Deliveries of Gas to Others for Transportation (Account 858)332
27 Other Gas Delivered to Storage (Explain)
l6 Gas Used for Compressor Station Fuel 509 2,230,11s 77 5,716
29 Other Deliveries and Gas Used for Other 0perations
30 Total Deliveries (Total of lines '18 thru 29)I 05,755,285 29,421,873
31 GAS LOSSES AND GAS UNACCOUNTED FOR
11 Gas Losses and Gas Unaccounted For
TOTALS
34 Total Deliveries, Gas Losses & Unaccounted For (Total of lines 30 and 32)'105,755,285 29,421,873
FERC FORM NO.2 (REV 01-11)Page 520
303
RECEIVED
?tlg tlfiY -7 fil{ 9: 3l
IMAiiO FUSLIC
.iT lLlT It S COfr,tMISSION
Avista Corp.
2018
IDAHO
State Natural Gas Annual Report
(rc 61-40s)
This Page Intentionally Left Blank
Name of Respondent
Avista Corporation
This Report is:
Jxl Rn originat
fl A Resubmission
Date of Report
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 lA4
STATEMENT OF UTILITY OPERATING INCOME - IDAHO
lnstructions
1. For each account below, report the amount attributable to the state of ldaho based on ldaho jurisdictional Results of Operations.
2. Provide any necessary important notes regarding this statement of utility operating income in a footnote in the available space at the bottom of this
Line
No.Account
(a)
Referto
Form 2
Page
(b)
TOTAL SYSTEM. IDAHO
Current Year
(c)
Prior Year
(d)
1 UTILITY OPERATING INCOME
2 300-301 408.048.751 419.787.234
5 Operatinq Expenses
4 Operation Exoenses (401 )317-325 225,812,784 231,703,973
5 317-325 20.790,728 22.074,389
b 336-338 43.999.1 08
7 Depreciation Expense for Asset Retirement Costs (403.1 )336-338
8 Amortization & Depletion of Utilitv Plant (404-405)336-338 8,900,45'1 7,955,792
I 336-338 Q.731.391\
10 Amort. of Property Losses, Unrecov Plant and Reoulatory Study Costs (407)
11 Amortization of Conversion Expenses (407)
12 2.996.413 2.991.044
13 (Less) Regulatory Credits (407.4)488.222\(1.515.051 )
14 Taxes Other Than lncome Taxes (408.1 )262-263 19,038,933 1 8,329,857
15 lncome Taxes - Federal (409.1 262-263 10,949,838 5,395,634
16 262-263
17 Provision for Deferred lncome Taxes (41 0.1)234-235 (1,50s,436)19,513,501
18 (Less) Provision for Deferred lncome Taxes-Cr. (411.1\234-235
'19 (73.017\(25.223\
20 (Less) Gains from Disposition of Utility Plant (41 1.6)
21 Losses from Disposition Of Utility Plant (41 1.7)
22 f Allowances 411.8)
23
24
25 TOTAL Utility Operatinq Expenses (Total of line 4 throuqh 24)331,097,578 347,691,633
26 Net Utilitv Operatinq lncome (Total line 2 less 25)76,951,173 72,095,601
IDAHO STATE NATURAL GAS ANNUAL REPORT 0C 614051 G.1D.114-115
Deratino Revenues (4O0)
enance ExDenses (402)
enrecirtion Fxnense (403)
edulalorv Debits {407 3)
- Other 14Og 'l )
nveslment Tax Credil Adiustment - Net (41 1 4)
osses from Disoosition of Allowances (41 'l .9)
ccrelion Fxoense (411'lO\
Name of Respondent
Avista Corporation
This Report is:
lxl Rn originat
A Resubmission
Date of Report
mm/dd/yyyy
411s12019
Year / Period of Report
End of 2018 I Q4
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
(0
Current Year
(s)
Prior Year
(h)
Current Year
(i)
Prior Year
0)
1
320.376.541 325,100,552 87,672,210 94,686,682 2
a
'169,023,992 55.788.792 63.799.711 4
17,870,09'1 19,148,674 2,920,637 2,925,715 5
38.848.826 37.220,519 7,335,630 6,778,589 6
I 7
7 ,251,034 6,461,920 1 ,609,417 1,493,872 8
(1.409.350)(2.730.776\o
10
11
2.714.347 2,822,908 282,066 168,136 12
(329.664)fi.441.279\(1 58.558)13
16,007,935 15,33i 3,030,998 2.997.28'.114
8,873,336 3,958,603 2,076,502 1,437,031 15
16
(1 ,645,1 48)139.712 3.054,9r 17
18
(1 67.785)(1 1 9,991 )(5.232\'19
20
21
22
23
24
257.077.614 265,115,927 74,019,964 82,575,706 25
63.298.927 59,984,625 13,652,246 12,110.976 26
IDAHO STATE NATURAL cAS ANNUAL REPORT (lC 61-4051 G.lD.11+115
167 904
/615
(73 772
(5 2?)
Name of Respondent
Avista Corporation x
This Report is.
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I Q4
lnstructions
1 . Report below the original cost of utility plant in service necessary to furnish utility service to customers in the state of ldaho, and the
accumulated provisions for depreciation, amortization, and depletion attributable to that plant in service.
2. Report in column (c) the amount for electric function, in column (d) the amount for gas function, in columns (e), (0, and (g) report other (specify),
Line
No.Acrount
(a)
Total Company
End of Current Year
(b)
Electric
(c)
I Utility Plant
2 ln Service
Plant in Service (Classified)1,852.643,131 1.423.286.524
4
Plant Purchased or Sold 99,095 99,095
6
7 Experimental Plant Unclassified
8 Total (Total lines 3 throuqh 7)1.852.742.226 1.423.385,619
v
10 Held for Future Use 352.937 162.352
11 Construction Work in Prooress 4 34.669.276
12 icquisition Adiustments
13 Total Utilitv Plant (Total lines 8 throuoh 12)1.896.499.579 1,458,217 .247
14 and 1 522,811,960
15 Net Utility Plant (Line 13less line 14)1,236.601.391 935,405,287
16 Detail of Accumulated Provision for Deoreciat on. Amortization. and Deoletion
17 ln Service
18 Depreciation 634.126.208 516,717.192
19 as Lands / Land
20 Amortization of Underqround Storaqe Lands / Land Riqhts
21 6,094,768
22 Total (Total lines 18 throuqh 21)659,898,1 88 522,811,960
aa Leased to Others
24 Depreciation
25 and
26 Total Leased to Others
27 Held for Future Use
28 Depreciation
29 Amortization
31 Abandonment of Leases (Natural Gas)
32 Amortization of Plant Acouisition Adiustment
33 lines 31 659,898,1 88 522,81 1,960
IDAHO STATE NATURAL GAS ANNUAL REPORT (C 61405)G.1D.200-201
Name of Respondent
Avista Corporation
This Report is.
An Original
A Resubmission
Date of Report
mm/dd/ywy
4115t2019
Year / Period of Repo(
End of 2018 I Q4
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION .IDAHO
!nstructions
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)
(0
Other (Specify)
(s)
Common
(h)
Line
No.
1
2
262.375.334 166,981,273 3
4
5
6
7
262,375,334 166,981,273 o
I
190.585 '10
443.513 8.291.627 11
12
263,009,432 175,272.900 13
88,545,884 48,540,344 14
174,463,548 126,732.556 15
'16
17
88,347,078 29,061,938 18
19
20
1 98.806 19.478.406 21
88.545.884 48,540,344 22
23
24
ZA
26
27
28
l3
JU
32
88,545,884 48.540.344
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.200-201
EE
Name of Respondent
Avista Corporation
This Report is.
Jxl Rn original
I A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I Q4
GAS PLANT lN SERVICE - IDAHO (Account 101,1O2,103 and 106)
lnstructions
1. Report below the original mst 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 1 02, 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 column (b). Likewise, if the respondent has a significant amount of plant
retirements which have not been classified to primary accounts at the end of the year, include in column (d) a tentative distribution of such retirements,
on an estimated basis, with appropriate contra entry to the accrunt 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 30'1 Oroanization
?
4 303 Miscellaneous lntanqible Plant 907.700 1 0,082(907,700 10.082
6 PRODUCTION PLANT
7 Natural Gas Production and Gatherinq Plant
8
I 325.2 Producinq Leaseholds
10 325.3 Gas Rights
11 325.4 Riqhts-of-Wav
12 325.5 Other Land and Land Riqhts
13
14 327 Field Compressor Station Structures
15
16
17 330 Producinq Gas Wells-Well Construction
18 331 Producing Gas Wells-Well Equipment
19
20 333 Field Compressor Station Equipment
21
22 335 and
23 336 Purification Equipment
24
25 338 Unsuccessful Exploration and Development Costs
26
27 'otal of lines 8
28 Products Extraction Plant
29 340 Land and Land Rights
30 and
31 342 Extraction and Refininq Equipment
32
22 344 Extracted Products Storaqe Equipment
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61.I05)G.lD.204-205
30? Franchises and Consents
lntanoible Plant (Total of lines 2 3 and 4)
3251 Producinolends
326' Gas Well Stnr..trrres
324 Field Measurino and Reoulatino Stetion Eouioment
329 Other Structrrres
33? Field I ines
334 Field Measurino and Reouletino Station Fouinment
337 Other Fouinmenl
339 Asset Retirement Costs for Natural Gas Produciion and Gatherino Plant
343 Pine I ines
Name of Respondent
Avista Corporation
This Report is:
Jx_l nn originat
I A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I A4
nt and
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 1 01 and 1 06 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 (0 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 (f) to primary
account classifi cations.
8. For Account 399, state the nature and use of plant included in this account, and, if substantial in amount, submit a supplementary statement showing
subaccount classification of such plant conforming to the requirement of these pages.
9. For each account comprisang the repoded balance and changes in Account 1 02, 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
J
(7,365)910,417 4
(7,365)910,417 A
b
7
8
10
11
12
13
14
15
16
18
20
21
22
z3
24
26
27
28
30
31
32
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.204-205
Name of Respondent
Avista Corporation
This Report is:
lxl Rn originat
! A Resubmission
Date of Repo(
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 I Q4
PLANT IN SERVICE - IDAHO 101 103 and
Balance
No.Account Beginning of Year Additions
(a)
34 345 ComoressorEouioment
346 Gas Measuring and Requlatinq Equ pment
36 347 Other Equipment
JI
38 TOTAL Products Extraction Plant (Total of lines 29 throuqh 37)
TOTAL Natural Gas Production Plant (Total lines 27 and 38)
40
41 TOTAL Production Plant (Total lines 39 and 40)
42 NATURAL GAS STORAGE AND PROCE {G PLANT
43 Underqround Storaqe Plant
44 350.1 Land 358.727
45 1 8,506
46 351 Structures and lmprovements 708.528
47 ,075,856
48 352.1 Storaoe Leaseholds and Riqhts 78.697
49 352.2 Reservoirs
50 352.3 Non-recoverable Natural Gas 1,658,288
51 353 Lines 323.161
52 744
53 355 Other Eouipment 335.475
54 356 Purification Equipment
qq 357 Other Equipment 736,1 68
56 358 Asset Retirement Costs for Underqround Storaoe Plant
57 1 ,321,969
58 Other Storaqe Plant
59 360 Land and Land Riqhts
60
61 362 Gas Holders
62 363 PurificationEouioment
64 363.2 Vaporizinq Eouipment
65
66 363.4 Measurinq and Requlatinq Equipment
67 363.5 Other Eouioment
363.6 Asset Retirement Costs for Other I itoraoe Plant
69 TOTAL Other Storaqe Plant (Total of lines 58 throuqh 68)
70
71
72 364.2 Structures and lmprovements
t5 364.3 LNG Processing Terminal Equipment
74 364.4 LNG Transportation Equipment
75 364.5 Measurino and Reoulatino Eouioment
76
77 364.7 Communications Equioment
78 364.8 Other Equipment
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 71
throuqh 79)
]DAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.206-207
348
35O 2 Riohts-of-Wav
352 Wells
354 Comnressor Stelion Fduinment
llnderororind Storaoe Plent
361 Stnrctlrres end lmnrovements
363 1 liouefa.lion Fduinment
363 3 ComDressor Eouioment
364 'l I and en.l I and Riohts
364 6 Comnressor Station Fouinment
Name of Respondent
Avista Corporation
This Report is:
I Rn originat
l--l A Resubmission
Date of Report
mm/dd/ywy
4t15t2019
Year / Period of Report
End of 2018 I Q4
GAS
Retirements Adjustments Transfers
Balance
End of Year
Line
No.
(e)
34
?^
36
a7
38
39
40
41
42
43
(7,623)351 .'104 44
(24\1 45
1 30,368 838.896 46
611 47
48
49
(2.144\1,656,144 50
322.743 51
126,318 967 52
130.851 466.326 53
16'54
124,461 860,629 55
56
627,461 1 949 57
58
60
61
62
63
64
65
67
68
69
IU
72
73
74
75
78
79
80
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.1D.206-207
Name of Respondent
Avista Corporation
This Report is:
[xl An orisinat
f--l A Resubmission
Date of Report
mm/dd/yyyy
4t15nU9
Year / Period of Report
End of 2018 t Q4
Line
No.Acmunt
Balance
Beginning of Year Additions
and Processi Plant 57 69 and 12,321,969
a)TRANSMISSION PLANT
84 365.2 Riqhts-of-Wav
85 366 Structures and lmorovements
86 367 Mains
87 368 Compressor Station Eouipment
89 370 CommunicationEouipment
90
91 372 Asset Retirement Costs for Transmission Plant
92
93
T
94 374 Land and Land Riqhts 127.350 5,500
95 89.896
96 376 Mains 114,307,035 9,670,20s
97 377 Compressor Station EouiDment
2,376,509 159,322
oo 379 Measurinq and Reoulatino Station EouiDment-Citv Gate 4.510.621 91,963
100 74 5.860.768
101 381 Meters 23,891,044 409.912
102 382 Meterlnstallations
103 383 House
104 384 House Requlator lnstallations
105 176.240
106 386 Other Propertv on Customers' Premises
107 387 Other Eouioment
109 TOTAL Distribution Plant (Total lines 94 throuqh 108)221,049,650 16,463,806
110 GENERAL PLANT
112 390 Structures and lmprovements
113 I
114 392 Transportation Equipment 2,949,771 181.162
1 '15 393 Stores Equipment
116 1 75,535
117 395 Laboratory Equipment 70,627
118 396 Power Ooerated Eouioment 99.967
718,407 5,070
120 398 Miscellaneous Equipment
121 Subtotal (Total of Lines 1 1 1 through 1 20)461,742
123 399.1 Asset Retirement Costs for General Plant
124 TOTAL General Plant (Total of lines 121. 'll 2 and 123\,112,591 461.742
125 TOTAL (Accounts '10 1 and 106)240,391,910 16,935,630
126 Gas Plant Purchased (See lnstruction 8)
128 Experimental Gas Plant Unclassifi ed
129 910 16,935,630
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405}G.tD.208-209
355 1 Land end I end Riohls
359 lvleeslrrino end Reoulrtind Station Fdlrinment
371 Other EouiDment
ANT
375 Structrrres end lmorovements
378 lvleaslrrino end Reorrlrtino Station Forrinment-General
380 Servic€s
385 lndlrstrial Jvleesrrrino and Reoulatino Slation FoUinment
388 Asset Retirement Costs for Distrihrrtion Pl:nt
389 I and and I and Ridhts
391 Oftice Furniture end Eduioment
394 Tools Shon and Geraoe Folrinment
397 Communimtion Forrinment
399 Other Tandible Pro6ertv
ess) Gas Plant Sold {See lnstnrction 8)
Gas Plant in Seruim (Total of lines 125 throuoh 128)
Name of Respondent
Avista Corporation
This Report is:
lx-l An originat
I A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I Q4
a
Retirements
(d)
Adjustments
(e)
Transfers
(f)
Balance
End of Year
(s)
Line
No.
627.461 12,949,430 81
82
83
84
85
86
87
oo
89
90
91
92
93
't32 8s0 94
12.412 39 (7.055)445,494 95
122,060 10,044 3.940 123.869.164 96
97
91,932 (39.491)5.1 85 2,409.593 98
141,210 547 15,310 1 99
36,368 1 80,530,739 100
5,1 39,379
102
103
104
2.748 1 929.220 105
107
108
406.730 (28,858)5, 156,759 242,234,627 109
110
112
1 05,053 67.747 113
32.026 Q0.207)3,078,700 114
115
26,356 (84,214)1,311 ,578 116
1 1,951 (2.1 08)56,568 117
10.058 (7,060)(15.310)691,049 119
120
185.444 Q2,719)( 1 5,31 0)6,280,860 121
122
123
185.444 (92,719)(15.310)6,280,860 124
592,174 498,5 1 9 5.141.449 262.375.334 125
126
127
128
592.174 498,5 1 9 5,141,449 262,375,334 129
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405}G.tD.208-209
This Page Intentionalty Left Blank
Name of Respondent
Avista Corporation
This Report is:
I nn originat
I A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year i Period of Report
End of 2UB lA4
GAS STORED - IDAHO t
lnstructions
1. lf during the year adjustments were made to the stored gas inventory reported in columns (d), (0, (S), and (h) (such as to correct cumulative
inaccuracies of gas measurements), explain in a footnote (in the available space at the bottom of this page or in a separate schedule) the reason for
the adjustments, the Dth and dollar amount of adjustment, and account charged or credited.
2. Report in column (e) all encroachments during the year upon the volumes designated as base gas, column (b), and system balancing gas, column (c),
and gas property recordable in the plant accounts.
3. State in a footnote, in the available space at the bottom of this page or in a separate schedule, the basis of segregation of inventory between current
and 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
117.11
(b)
(Account
117.2)
(c)
Noncurrent
(Account
117.3)
(d)
(Account
117.4)
(e)
Current
(Account
164.1)
(0
LNG
(Account
164.2)
(s)
LNG
(Acc,ount
164.3)
(h)
Total
(i)
1 Balance at beginninq of year 1.772.474 8,000.085 9,772,563
2 Gas delivered to storaqe 5,744,',t12 5.744.172
J Gas withdrawn from storaoe 5,430.385 5,430,385
4 )ther debits and credits
5 Balance at end of vear 1.772,478 8,313,872 10,086,350
o Dth 317,648 4.531.387 4,849.035
7 Amount per Dth 5.58 1.83 2.O8
(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 (IC 61.405)G.1D.220
Name of Respondent
Avista Corporation
This Report is:
lxl nn orisinal
I A Resubmission
Date of Report
mm/dd/yryy
4t15t2019
Year / Period of Report
End of 2018 / Q4
GAS OPERATING REVENUES. IDAHO
lnstructions
1. Report below natural gas operating revenues attributable to the state of ldaho for each prescribed account total in accordance with jurisdictional
Results of Operations.
2. Revenues in columns (b) and (c) include transition costs from upstream pipelines.
3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns
(b) through (e). lnclude in columns (0 and (g) revenues for Accounts 480-495.
Line
No.Account
(a)
Revenues for
Transition Costs
and Take-or-Pav
Revenues for
GRI and ACA
Current Year
(b)
Previous Year
(c)
Current Year
(d)
Previous Year
(e)
1 480 Residential Sales
2 481 Commercial and lndustrial Sales
3
4 483
5 484 lnterdepartmental Sales
b I
7 487
488 Miscellaneous Service Revenues
489.1 Revenues from Transportation of Gas for Others
throuoh Gatherino Facilities
10 489.2 Revenues from Transportation of Gas for Others
throuqh Transmission Facilities
11 489.3 Revenues from Transportation of Gas for Others
through Distribution Facilities
12 489.4 Revenues from Storinq Gas of Others
13 490 Sales of Products Extracted from Natural Gas
14 levenues from Natural Gas Processed >v Others
15 492 ncidental Gasoline and Oil Sales
16 493 Rentfrom Gas Property
17 494 lnterdepartmental Rents
18 495 Other Gas Revenues (1)
19
20 496 (Less) Provision for Rate Refunds
21 TOTAL
IDAHO STATE NATURAL GAS ANNUAL REPORT (tC 61.40s1 G.tD.300-301
Other Sales lo Public Aulhorilies
Sales for Resale rl)
Forfeited f)iscorrnls
otel
Name of Respondent
Avista Corporation x An Original
A Resubmrssion
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I Q4
GAS OPERATING REVENUES. IDAHO
lnstructions
4. lf increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote in the
available space at the bottom of this page or attached in a separate schedule.
5. See pages 108 in the FERC Form 2, lmportant Changes During the Quarter^fear, 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.
Cunent Year
(0
Previous Year
(s)
Current Year
(h)
Previous Year
(i)
Current Year
0)
Previous Year
(k)
41.800.464 45.661 .813 41,800,464 45.661.813 5.1 65.897 5.360.236 1
18,770,855 21,992,152 18.770.855 21,992,152 3,251,939 3,449,267 2
3
26.621.409 26.456.040 26.621.409 26.456.040 10.432.851 9.089.780 4
29,055 32,211 29.055 32.211 4,733 4,843 5
b
7
7,546 8,788 7.546 8.788 8
o
10
600,212 584.996 600,212 584,996 4,644,358 5,496,1 29 11
12
'13
14
15
16
17
893, 1 87 (49.31 8)893.1 87 (49.318)18
88,722,728 94,686,682 88.722.728 94,686,682 19
(1 .050.518)(1,050,518)20
87.672.210 94.686,682 87.672,210 94.686.682 21
(1) Sales for Resale and Deferred Exchange dollars are allocated based on the Washington / ldaho monthly commodity allocations used in
Results of Operations.
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.40s)G.1D.300-301
This Report is:
Name of Respondent
Avista Corporation
This Report is:
[x I nn originat
! A Resubmission
Date of Report
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 I A4
GAS OPERATION AND MAINTENANCE EXPENSES. IDAHO
lnstructions
1. For each prescribed account below, report operation and maintenance expenses as allocated by the Results of Operations model to the state of
ldaho.
2. lf the amounl for previous year is not derived from previously reported figures, explain in a footnote.
Line
No.Account
(a)
Amount for
Cunent Year
(b)
Amount for
Previous Year
(c)
1 1. PRODUCTION EXPENSES
2
3 Manufactured Gas Production (Submit Supplemental Statement)
4 B. Natural Gas Production(
6 )peration
7 750 Operation Suoervision and Enqineerinq
8 751 Production Maps and Records
o
10 753 Field Lines Expenses
11 754 Field Compressor Station Expenses
12 755 ower
IJ and Station
14 757 PurificationExpenses
15 758 Gas Well Royalties
'16
17 760 Rents
18 TOTAL Operation (Total of lines 7 throuqh 17)
'19
)n 76'l Maintenance Supervision and Engineerinq
21 762 Maintenance of Structures and lmprovements
22 763 Maintenance of Producing Gas Wells
23
24 765 Maintenance of Field Compressor Station Equipment
766 Maintenance of Field Measurinq and Requlatinq Station Equipment
26 767 Maintenance of Purification Eouioment
27 768
28 of
29 TOTAL Maintenance (Total of lines 20 throush 28)
30 TOTAL Natural Gas Production and Gatherinq (Total oflines 18 and 29)
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.tD.317
, MenufaclLrred Gas Produclion
- Natural Gas Production and Galherino
752 Ges Well Exoenses
759 Other Fxoenses
-snance
764 Mainlenance of Field I ines
Name of Respondent
Avista Corporation
This Report is:
lx-l nn originat
I A Resubmission
Date of Report
mm/dd/Ww
4t15t2019
Year / Period of Report
End of 2018 I Q4
GAS OPERATION AND MAINTENANCE EXPENSES . IDAHO
lnstructions
1. For each prescribed acmunt 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)
B2.
32
33 770 Operation Supervision and Enqineering
34 771 Operation Labor
35
36
37 774 Power
38 775
39
40 777 Gas Processed bv Others
41 778
42
43 780 Products Purchased for Resale
44 781 Variation
45 782 (Less) Extracted Products Used bv tie Utilitv-Credit
46 783 Rents
47 TOTAL Operation (Total of line 33 throuqh 46)
48 Maintenance
49
50 785 Maintenance of Structures and lmprovements
51 786 Maintenance of Extraction and Refininq Eouipment
52 of
53 788 Maintenance of Extracted Products Storaqe Equipment
54 789 Maintenance of Compressor Equipment
55
56 791 Maintenanceof OtherEquipment
57 TOTAL Maintenance (Total of lines 49 through 56)
58 lines 47 and
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.|D.318
oeralion
772 GasShrinkaoe
773 Ftel
776 Oneralion Srrnnlies end Fxnenses
779 Merketino Fxnenses
784 Maintenance Srrneryision end Fnoineerino
790 Maintenance of Gas Measurino and Reoulatino Eouioment
Name of Respondent
Avista Corporation
Date of Report
mm/dd/yyyy
4115t2019
Year i Period of Report
End of 2018 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)
59 C. Exploration and Develooment
60 Operation
ot 795 Delay Rentals
62 796 Nonproductive Well Drillinq
OJ 797 Abandoned Leases
64 798 Other Exploration
65 otal lines 61 th
bb D. Other Gas Supplv Expenses
67 Operation
68 800 Natural Gas Well Head Purchases
69 800.1 Natural Gas Well Head Purchases. lntrammoanv Transfers
70 Line Purchases
71 802 Natural Gas Gasoline Plant Outlet Purchases
72 803 Natural Gas Transmission L IASES
t5 804 Natural Gas City Gate Purchases 43,755,809 51,810,449
74 804.1 Liquefied Natural Gas Purchases
75 805 Other Gas Purchases
76 805.1 (Less) Purchased Gas CostAdiustments
77 of lines 68 throuqh 76)sl ,8'10,449
78 806 Exchanqe Gas
79 Purchased Gas Exoenses
80 807.1 Well Expense-Purchased Gas
81 807.2 Operation of Purchased Gas Measurinq Stations
82 807.3 Maintenance of Purchased (
83
84 807.5 Other Purchased Gas Expenses (313.787)(1.494.183)
85 TOTAL Purchased Gas Exoenses t lines 80 throuqh 84)7 (1 ,494,183)
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61405)G.tD.319
This Report is:
I Rn original
[-l A Resubmission
)asrrrino Stations
Name of Respondent
Avista Corporation
This Report is:
lx-l nn orisinal
A Resubmission
Date of Report
mm/dd/ywy
4l't5t2019
Year / Period of Report
End of 2018 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)
86 Wthdrawn from
87 808.2 (Less) Gas Delivered to Storaqe-Credit
88
89 809.2 (Less) Deliveries of Natural Gas for Processinq-Credit
90
91 Used for Station
92 811 (218,992')
93 for Other
94 TOTAL Gas Used in Utilitv Operations-Credit (Total of lines g1 throuqh 93)(218.992\
95 450,354 437.921
96 TOTAL Other Gas Suoolv ExDenses (Total of lines 77 .78. 85, 86 throuqh 89, 94, 95)43,558.1 70 50.535.1 95oa43i,558,170 50,535,1 952. NATURAL GAS STORAGE. TERMINA -ING AND PROCESSING EXPENSES
oo A. Underqround Storaoe Exoenses
100 Operation
814 Operation Supervision and Enqineerinq 6.203 7.782
102 815 MaDS and Records
103
104 817 Lines Expense
105
19 Station Fuel and Power
107 820
108
'109 822 ExDloration and DeveloDment
1'10
111 824 Other Expenses 245,107 229,162
112 825
114 TOTAL ODeration (Total of lines 101 throuqh 113)236.944
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.320
as for Processind-Debit
Lrel-Credit
1ns-Credit
30. 58.65. and 96)
(Denses
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 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)
115 Maintenance
116 830 Maintenance Supervision and Enoineerinq
118 832 Maintenance of Reservoirs and Wells
119 833 Maintenance of Lines
120 834
121 835 Maintenance of Measurinq and Requlatinq Station Equipment
123 837 Maintenance of Other Equipment 225,516
124 TOTAL Maintenance (Total of lines 116 throuqh 123)434,019 225.516
125 nes 114 462.460
126 B. Other Storaoe Exoenses
128 840 Operation Suoervision and Enoineerinq
129 841 ODeration Labor and Exoenses
130 842 Rents
131 842.1 Fuel
842.2 Pan'tet
133 842.3 Gas Losses
134 TOTAL ODeration (Total of lines 128 throuoh '1 33)
136 843.1 Maintenance Supervision and Enqineerinq
137 843.2 Maintenance of Structures
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification Equipment
140 843.5 Maintenance of Liouefaction Equioment
141 843.6 Maintenance of Vaporizinq Equipment
142 843.7 Maintenance of Compressor Equipment
144 843.9 Maintenance of Other Equipment
145 TOTAL Maintenance (Total of lines 136 throuqh 144)
146 1
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405I G.1D.321
831 [ilaintenanm of Stnrctrrres and lmnrovements
836 lvlaintenanm of Prrrifiaition Fouioment
oeration
lnanm
843 8 l\Iaintenanm of Measrrrino end Reoulatino Fouinment
Name of Respondent
Avista Corporation x
This Report is:
An Original
A Resubmission
Date of Report
mm/dd/ywy
4t15t2019
Year / Period of Report
End of 2018 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)
147 C. Liquefied Natural Gas Terminalinq and Processing Expenses
148 Operation
149
150 844.2 LNG Processinq Terminal Labor and Expenses
152 844.4 Liquefaction Transportation Labor and Expenses
153
154 844.6 Station Labor and
155 7
844.8 System Control and Load Dispatcl nq
157 845.1 Fuel
159 845.3 Rents
160
161 845.5
162 845.6 Processino Liouefied or Vaporized Gas bv Others
164 846.2 Other Expenses
165 AL 1
167 847.1 Maintenanc€ Supervision and Enqineennq
't68
169 M7.3 Maintenance of LNG Proc€ssinq Terminal Equipment
170
171 '.5 Maintenance of
172 847.6 Maintenance of Compressor Station Equipment
174 847.8 Maintenance of Other Eouipment
175
176 TOTAL Liquefied Nat Gas Terminaling anc Proc ExD (Total of lines 165 and I 75)
177 TOTAL Natural Gas Storaqe (Total oflines 125,146, and 176)685,329 462,460
IDAHO STATE NATURAL GAS ANNUAL REPORT (]C 61405)G.lD.322
844'l Oner:tion Srrneruision and Fnoineerind
844 3 [ iorrefaction Processino Labor and Exoenses
844 5 lvleasurino and Redulatino Labor and Exoenses
845 2 Power
845-4 DemurraoeCharoes
8461 Gaslosses
aintenrnm
847 2 Mainlenanm of Structrrres and lmorovements
847 4 fvlaintenane of t NG TransDortation Eouioment
847 7 lvlainten2nce of Commrrnimtion Fouioment
Meintenanm (Total of lines 167 throuoh '174)
Name of Respondent
Avista Corporation
This Report is:
lxl An original
l--l A Resubmission
Date of Report
mm/dd/ywy
4t15t2019
Year / Period of Report
End of 2018 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 ftom 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
180 850 Operation Supervision and Enqineerinq
181 851 Svstem Control and Load Dispatchino
182
183 853 Compressor Station Labor and Expenses
185 855 Other Fuel and Power for Compressor Stations
t60 856 Mains Exoenses
187 and Station
188 858 Transmission and Compression of Gas bv Others
190 860 Rents
191
192 [/laintenance
193 861 Maintenance Supervision and Enoineerinq
194
195 863 Maintenance of Mains
196 864 Maintenance of Compressor Station Eouioment
and
198 866 Maintenance of Communication Eouipment
199
200 TOTAL Maintenance (Total of lines 193 throuqh 1 99)
201 TOTAL Transmission (Total of lines 191 and 200)I
203
204 870 Operation Suoervision and Enoineerino 522.805
206 872 Compressor Station Labor and Expenses
207
IDAHO STATE NATURAL GAS ANNUAL REPORT (lC 61.405)G.1D.323
nerrtion
852 Commrrnietion Svslem Fxnenses
854 Gas for Comnressor Station Fuel
859 Other Fxnenses
. Ooeration (Total of lrnes 180 throuoh 190)
852 Maintenanm of Structlrres and lmorovements
867 Meintenane of Other Fouinment
peration
471 Distribrilion I oed Disnetchino
Name of Respondent
Avista Corporation
This Report is:
[x I nn originat
l-_l A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 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)
208 874 Mains and Services Exoenses 't,596,669
209 and xpenses-General 42,619 54.080
210 876 Measurino and Reoulatino Station Expenses-lndustrial 5.881
211 34.645 77,563
212 878 Meter and House Requlator Expenses 166.245 200.902
213 879 Customer 606,564 714,082
214 880 Other Expenses 661.1 76 582.803
215 881 Rents 1 3,530
216 btal of lines 204 't 215\3,587,889 3,768,3'1s
217 Maintenance
218 neering 103,949 87.967
219 886 Maintenance of Structures and lmprovements
220 852 338,861
ntenance of
222 889 Maintenance of Measurinq and Requlatinq Station Equipment-General 87,285
223 of 32.397 45,007
224 891 Maintenance of Meas. and Req. Station Equipment-City Gate Check Station 35,836
225 260,420 486.926
Maintenance of Meters and House 747.O20 650.549
227 894 Maintenance ofOther Equipment 77,674
228 otal of lines 218 1,541,365 1 ,81 0, '1 05
229 TOTAL Distribution Expenses (Total of lines 216 and 228\5.578.420
230
231
232 901 Supervision 51,963
Readi 1 50,816 168,487
234 903 Customer Records and Collection Expenses 2,008,955
IDAHO STATE NATURAL GAS ANNUAL REPORT (lc 61.{051 G.1D.324
887 Maintenance of Mains
892 Maintenanm of Seruims
peration
Name of Respondent
Avista Corporation
This Report is:
lx-l An orisinat
l-_l A Resubmission
Date of Report
nm/dd/ywy
4t15t2019
Year / Period of Report
End of 2018 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 Accounts 590.364
236 905 Miscellaneous Customer Accounts Expenses 6s,329 52,879
237 TOTAL Customer Accounts Exoenses (Total of lines 232 throuoh 236)2.769.624 2.872.648
238 E AND INFORMATIONAL EXPENSES
239 Operation
241 908 CustomerAssistance Expenses 1,429,160 1,500,469
242 297.122 209,595
243 910 Miscellaneous Customer Service and lnformational Expenses 80,646 71,053
244 TOTAL Customer Service and lnformational Exoenses (Total of lines 240 throuoh 243)1.807,528 1.781,117
245 7. SALES EXPENSES
246 Operation
248 912 Demonstratino and Sellinq Expenses
249 913 Advertisino Exoenses
250 916 Miscellaneous Sales Expenses
251 TOTAL Sales Exoenses (Total of lines 247 throuoh 250)
252
253 Operation
254 920 Administrative and General Salaries 2,659,826 2,543.147
255 921 and 322,243
256 922 (Less)Administrative ExpensesTransferred-Credit (5.446)(5,391)
592.274
258 924 Propertv lnsurance 85,520 84,762
259 925 lniuries and Damaaes 232,818 241,399
260 140.336 111.543
261 927 Franchise Requirements
262 928 RequlatorvCommission Expenses 282.253 31 9,080
264 930.1 General Advertisinq Expenses
zba 930.2 Miscellaneous General Exoenses 309.476 340.673
266 931 Rents 55,162
267 TOTAL Ooeration (Total of lines 254 throuqh 266)4,814,271 4,605.492
268 Maintenance
269 932 Maintenance of General Plant 945,253 890,094
and otal of lines 267 and 7 5,495,586
271 TOTAL Gas O&M Expenses (Total of lines 97 , 177 , 201 , 229, 237 , 244, 251 , 270)59,709,429 66,125,426
IDAHO STATE NATURAL GAS ANNUAL REPORT (tC 61405)G.1D.325
907 SuDeruision
909
911 Suoeruision
ADTVIINISTRATIVF AND GFNFRAI FXPFNSFS
923 Outside Seruies FmDlovecl
926 Emolovee Pensions and Benefits
929 (l ess) Dlrnlimte Cheroes-Credit
Name of Respondent
Avista Corporation
This Report is:
lxl An originat
f_-l A Resubmission
Date of Report
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 I Q4
GAS TRANSMISSION MAINS - IDAHO
lnstructions
1. Report below the requested details of transmission mains in system operated by respondent at end of year in the state of ldaho.
2. Report separately any lines held under a title other than full ownership. Designate such lines with an asterisk and in a footnote (in the available
space at the bottom of this page or attached in a separate schedule) state the name of owner or co.owner, nature of respondent's title, and
percent ownership if jointly owned.
Line
No.
Kind of
Material
(a)
Diameter of
Pape
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
(n
1
2
J
4
5
6
7
8
o
10
11
12
13
14
15
16
17
19
)i
21
23
24
26
27
28
30
31
32
33
34
35
JO
5l
38
39
40
NOTE:
ln accordance with the definitions established in the Uniform System of Accounts for production, transmission, and distribution plant, the Company's
gas mains are appropriately classified as distribution property for accounting purposes (see definitions 29 (B) and (C)).
IDAHO STATE NATURAL GAS ANNUAL REPORT(IC 61405}G.1D.514
Name of Respondent
Avista Corporation
This Report is:
lxl An orisinat
I A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I A4
GAS DISTRIBUTION MAINS - IDAHO
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 cG.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
(n
1 Steel Wraooed Less than 2"1.756.033 1.756.033
Steel Wraooed 2" lo 4"619,962 619,962
J Steel Wrapped 4" to 8"429.475 429.475
4 Steel Wraooed 8" to 12"12.197 12.197
E Steel Wraooed Ovet 12"
6
7
8 Plastic Less than 2"5.769.984 5.769.984
9 Plastic 2" lo 4"1,521 ,601 1,521 ,601
10 Plastic 4" to 8"632.771 632,771
11 Plastic 8" to 12"
12 Plastic Over 1 2"
13
14
15
16
17
'18
19
20
21
22
23
24
)A
27
29
30
31
32
33
34
37
38
39
40
TDAHO STATE NATURAL GAS ANNUAL REPORT 0C 614051 G.lD.514A
Name of Respondent
Avista Corporation
This Report is:
lFl An orisinat
I-l A Resubmission
Date of Report
mm/dd/yyw
4t15t2019
Year / Period of Report
End of 2018 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 rn the state of ldaho.
Line
No.
Type of
Material
(a)
Diameter of
Pipe
in lnches
(b)
Number of
Service Pipes
Beginning of Year
(c)
Added
During Year
(c)
Retared
During Year
(d)
Number of
Service Pipes
End of Year
(e)
Average
Length
in Feet
(o
1 Steel Wraooed 1 " or Less 11,379
2 Steel WraoDed 1" lo 2"183 183
Steel Wraooed 2" lo 4"7 7
4 Steel Wraooed 4" to 8"1 1
Steel Wraooed Over 8"
6 Steel Wraooed Unknown 304 304
7
Plastic 1" or Less 64,937 64.937 (1)
I Plastic 1" lo 2"277 277 (1)
10 Plastic 2" lo 4"12 12 (1)
11 Plastic 4'to 8"J 3 (1)
12 Plastic Over 8"(1)
13 Plastic Unknown 1,224 1,224 (1)
14
15 Other Unknown 5 (1)
16
17
18
19
20
21
22
23
24
25
26
28
29
JU
31
JJ
34
35
36
37
JO
39
40
(1) lnformation not available.
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405)G.tD.514B
(1)
('l )
('t )
('l )
('t I
(1)
Name of Respondent
Avista Corporation
This Report is:
lxl nn originat
l--l A Resubmission
Date of Report
mm/dd/yyyy
4t15t2019
Year / Period of Report
End of 2018 I Q4
REGULATORS.GAS-IDAHO
lnstructions
1 . Report below the requested details of gas regulators in possession of the respondent at the end of the year rn the state of ldaho.
Line
No.
Size
(a)
Type
(b)
Make
(c)
Capacity
(d)
ln Service
Beginning of Year
(e)
Added During
Year
(o
Retired During
Year
(q)
ln Plant
End of Year
(h)
1
2 No Data available
o
4
5
6
7
8
o
10
11
12
'13
14
15
16
17
18
10
20
21
22
23
24
26
27
28
29
30
31
a)
33
34
?t
5b
3l
38
5v
40 Total
IDAHO STATE NATURAL GAS ANNUAL REPORT (IC 61405}G.lD.514C
Name of Respondent
Avista Corporation
This Report is.
lxl nn originat
l-l A Resubmission
Date of Report
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 I Q4
CUSTOMER METERS - GAS . IDAHO
lnstructions
1 . Report below the requested details of gas customer meters in possession of the respondent at the end of the year in the state of ldaho.
Line
No.
Size
(a)
Type
(b)
Make
(c)
Capacity
(d)
ln Service
Beginning of Year
(e)
Added During
Year
(0
Retired During
Year
(q)
ln Plant
End of Year
(h)
1 Ail Ail Ail AI 81,329 81,329
2
J
4
5
o
7
8
o
10
11
12
14
15
17
18
19
20
21
22
23
24
.E
26
27
28
)o
30
31
33
34
35
Jb
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{05}G.lD.514D
Name of Respondent
Avista Gorporation
This Report is:
lxl en original
! A Resubmission
Date of Report
mm/dd/yyyy
411512019
Year / Period of Report
End of 2018 I A4
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 specifr 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 showing (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 local distribution facilities or intrastate facilities and which the reporting pipeline received through gathering
facilities or intrastate facilities, but not through any ofthe interstate portion ofthe 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 which the aggregate volumes report on line 3 relate.
8. lndicateinafootnote(1)thesystemsupplyquantitiesofgasthatarestoredbythereportingpipelineduringthereportingyearandalsoreportedassales,
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)
Referto
Form 2
Page
(b)
Amount of Dth
Year to Date
(c)
Amount of Dth
Current 3 Months Ended
Quarterly Only
(d)
1 Name of System
2
3 Gas Purchases (Accounts 800-805)19,854,816
4 Gas of Others Received for Gatherino (Account 489.1 )303
Gas of Others Received for Transmission (Account 489.2)305
6 Recerved 301 4.644.358
7 Gas of Others Received for Contract Storage (Account 489.4)307
8 Exchanqed Gas Received from Others (Account 806)328
9 Gas Received as lmbalances (Account 806)328 .(21.142\
10 Receipts of Resoondent's Gas Transoorted rv Others tAccount 858)332
11 Other Gas Wthdrawn from Storage (Explain)332.004
12 Gas Received from Shippers as Compressor Station Fuel
13 Gas Received from Shiooers as Lost and Unaccounted For
14
15 Total Receipts (Total of lines 3 throuqh 14)24.146.028
16 GAS DELIVERED
17 Gas Sales (Accounts 480-484)1 8,905,957
18 303
19 Deliveries of Gas Transported for Others (489.2)305
20 Deliveries of Gas Distributed for Others (Account 489.3)301 4,644,358
21 Deliveries of Contract Storaqe Gas (Account 489.4)307
22 328
zc Gas Delivered as lmbalances (Account 858)328
24 Deliveries of Gas to Others for Transportation (Account 858)332
25 Other Gas Delivered to Storaoe (ExDlain) (1)
26 Gas Used for Compressor Station Fuel 509 595.713
27 Other Deliveries (Specify) (footnote details)
28 Total Deliveries (Total of lines 17 throuqh 27)24,146,028
29
30 Production System Losses
31 Gatherino System Losses
32 Transmission Svstem Losses
JJ
34 Storaqe System Losses
35 Other Losses (Specifv) (footnote details)
36
37 Total Deliveries and Gas Unaccounted For (Total of lines 28 and 36)24,146,028
(1) Represents net gas withdrawals and injections.
IDAHO STATE NATURAL GAS AttilUAL REPORT (tC 6140s)G.1D.520
rer ReceiDts f Soecifu) (footnole details)
eliveries of Gas Gathered for Others (Account 489 'l l
xchanoe Gas Delivered to Others (Accounl 806)
:oR
stribution Svslem I osses