20180126Decision Memo.pdf

RE:
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMIVtrSSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
JANUARY 25,2018DATE:
AVTSTA CORPORATTON'S REQUEST FOR AUTHORITY TO ISSUE UP
TO S500 MILLION DEBT SECURITIES, CASE NO. AW-U-17-01.
BACKGROUND
On December26,2017, Avista Corporation (Avista) requested authority to offer, issue
and sell up to $500 Million of secured fixed or variable rate debt. The request also includes the
ability to refund, extend, renew or replace any securities issued.
The proceeds will be used for.one or more of the following pu{poses: (a) the Company's
construction, facility improvement, and maintenance, (b) to retire or exchange one or more
outstanding stock, bond, or note issuances, (c) to reimburse treasury for previously expended
funds, and (d) for other pu{poses permitted.
Debt Securities under the authority may be issued for multiple terms from nine (9)
months to fifty (50) years. Interest rates will be established at the time of issuance based on the
established basis point spread over Treasury Yield but no greater than 8 percent.
STAFI'RECOMMENDATION
Staff recommends approval of the proposed issuance. [n addition, Staffrecommends the
authority under this initial approval be continuing.
DECISION MEMORANDUM JANUARY 25,2018I
COMMISSION DECISION
Does the Commission approve Avista's request to issue up to $500 Million of fixed or
variable rate debt? Does the Commission approve the continued authority?
flea4,/rlr:6r
Terri Carlirck
Udmcmos/ Casc No. AVU-U-17-01
2DECISION MEMORANDUM JANUARY 25, 2OI8