20081008Application for Increase.pdf

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Corp.
2008 OCT - 8 AM 10: 05
IDAHO PUBUC
UTILITIES COr\it~/USSION
n: Jean D. Jewell, Secreta
Case No. A VU-U-08-01
Order No. 30509
Ladies/Gentlemen:
Avista Corporation requests that the Coinssion amend Case No. AVU-U-08-01, granted on Februar 29,
2008, to increase the amount of securties authorized to be issued to $550 millon. Avista would also like to
amend the parameters around the maximum interest rate and the tenor of the securties.
In Order No. 30509, the Coinssion authorized the Applicant to issue up to $350 millon of securties with a
maximum interest rate of 7% and with tenu of i 0-31 years. The Applicant now requests that the authorized
amount be increased to $550 millon with a maximum coupon rate of 8.5% and term of 5-31 years.
The Applicant has issued, of the $350,000,000 previously authorized, $250,000,000 of First Mortgage Bonds.
The 5.95% Series due 2018 of First Mortgage bonds which closed on April 3, 2008, leaves $100,000,000 in
aggregate pricipal amount of debt securties authorized pursuat to the curent authorization. The Applicant
has a substatial amount of capital expenditures in the comig years and ths additional authority will allow the
Applicant to meet those needs. Also, under the curent unpredictable and volatile market envionment the
added flexibility these amendments add would allow the Applicant to access the debt markets when the
opportty arses.
A check in the amount of $1,000.00, the maximum fee is comig under separate cover. Please do not hesitate
to contact Paul Kìball at [phone] should you need any additional inormation or have any questions.
Sincerely,~o~
Diane C. Thoren
Assistant Treasurer