20081106final_order_no_30673.pdf

Office of the Secretary
Service Date
November 6, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION FOR AN ORDER
AUTHORIZING THE OFFERING, ISSUANCE
AND SALE OF SECURITIES NOT TO EXCEED
$225,000 000. CASE NO. A VU-08-
ORDER NO. 30673
On October 10 2008, Avista Corporation dba Avista Utilities filed an Application for
an Order authorizing Avista to offer, issue and sell up to $225 000 000 of secured debt
arrangements. Having fully considered the Application and accompanying workpapers, the
Commission enters this Order approving A vista s Application.
THE APPLICATION
A vista requests authorization to offer, issue and sell the securities, including, without
limitation, any refunding, extension, renewal or replacement of any of the securities. The net
proceeds will be used for: (a) construction, facility improvement, and maintenance programs; (b)
to retire or exchange one or more outstanding stock, bond, or note issuances; (c) to reimburse the
treasury for funds previously expended; or (d) any other purpose approved by the Commission or
authorized by law. More specifically, Avista anticipates using the proceeds to maintain liquidity
and refinance debt maturities. Avista has $25 000 000 of debt maturities in December 2008 and
a mandatory put of $83 700 000 of pollution control bonds on December 20 2008. In addition
$60 000 000 of trust preferred securities may be optionally redeemed in March 2009. Avista
requests authority to issue, redeem and reissue securities under this authority without further
Commission approval to allow additional flexibility.
No person has received or will be entitled to receive from Avista any fee (1) for
services in connection with the consummation of the issuance and sale of the above-referenced
securities, other than fees for underwriting, private placement, legal, accounting or similar
professional or technical services; or (2) for services in securing underwriters, sellers or
purchasers of the securities.
ORDER NO. 30673
FINDINGS OF FACT AND
CONCLUSIONS OF LAW
Avista is a Washington corporation qualified to do business in the State of Idaho.
A vista is a public utility engaged in the generation, purchase, transmission, distribution and sale
of electric energy and the purchase, distribution and sale of natural gas. A vista is a gas
corporation within the definition of Idaho Code ~ 61-117, an electric corporation within the
definition of Idaho Code ~ 61-119, and a public utility within the definition of Idaho Code ~ 61-
129. The Commission has jurisdiction over this Application pursuant to the provisions of Idaho
Code ~ 61-901 et seq. The Commission further finds that the Application reasonably conforms
to Rules 141 through 150 of the Commission s Rules of Procedure, IDAPA 31.01.01.141-150.
A vista has paid all lawful fees as provided by Idaho Code ~ 61-905.
The Commission further finds that the proposed transaction is in the public interest
and a formal hearing on this matter is not required.
The Commission finds that the proposed issuance is for a lawful purpose and is
within A vista s corporate powers. The proposed issuance and redemption of maturing debts
provides an opportunity for A vista to reduce borrowing costs and increase flexibility with future
refinance options. This debt authority, however, may not be used to fund stock dividends.
The Commission s approval of the issuance is not a finding of fact or a conclusion of
law that the particular use to which these funds are to be put is approved by this Order. The
issuance of an Order authorizing the proposed issuance does not constitute agency
determination/approval of the type of financing or the related costs for ratemaking purposes. The
Commission does not have before it for determination in this case and, therefore, does not
determine the effect of issuance on rates to be charged by A vista for gas or electric service to
consumers in the State of Idaho.
ORDER
IT IS HEREBY ORDERED that Avista Corporation s Application to offer, issue and
sell up to $225 000 000 in debt securities is granted.
IT IS FURTHER ORDERED that Avista is authorized to issue the securities in the
manner and for the purposes described in the Application, except for the issuance of stock
dividends, with continuing authority to refund, extend, renew or replace the same without further
order of the Commission provided that the fees, interest rates and expenses charged or incurred in
ORDER NO. 30673
connection with any transactions entered into under the authority of this Order, and any refunding,
extension, renewal or replacement thereof, are competitive with market prices for similar
transactions.
IT IS FURTHER ORDERED that Avista shall file the terms of the proposed issuance(s)
of the securities and any subsequent changes to the terms with Staff upon issuance. This
informational filing should be made seven (7) days, or as soon as possible, prior to the issuance.
IT IS FURTHER ORDERED that Avista shall file, as soon as they become available
and update as changes occur, the following:
(a) The "Report of Securities Issued " and
(b) Verified copies of any Agreement entered into pursuant to this Order.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to
the regulatory authority of the Commission with respect to rates, utility capital structure, service
accounts, valuation, estimates for determination of cost or any other matter which may come before
this Commission pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provisions of Chapter 9
Title 61 , Idaho Code, or any act or deed done or performed in connection therewith shall be
construed to obligate the State of Idaho to payor guarantee in any manner whatsoever any security
authorized, issued, assumed or guaranteed under the provisions of Chapter 9, Title 61 , Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance
of Avista s exhibits or other material accompanying the Application for any purpose other than the
issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30673
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
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day of November 2008.
MARSHA H. SMITH, COMMISSIONER
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ORDER NO. 30673