20190301Decision Memo.pdf

RE
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOSEPH TERRY
TERRI CARLOCK
DATE: FEBRUARY 28,2019
AVISTA'S REQUEST FOR AUTHOR;ZATION TO rSSUE COMMON
STOCK; CASE NO. AVU-U-19-01
On February l l, 2018, Avista filed an Application requesting authority to offer, issue and
sell up to 3,500,000 shares of authorized but unissued common stock. The Commission received
the fees as required by ldaho Code $ 6l-905 on February 19,2019. Staff confirmed that the
Company has at least 3,500,000 authorized but unissued shares of common stock.
Whenever the Company issues securities, it will continue to provide the "Report of
Securities Transaction," which shows the proceeds and expenses of each issuance. The
Company states that the only fees will be for underwriting, private placement, Iegal, accounting,
or similar professional or technical services.
The Company proposes selling the stock through the Periodic Offering Program, direct
sales, or underwritten transactions. The net proceeds of these issuances will be used for the
improvement or maintenance of its service; the discharge or lawful refunding of its obligations;
the reimbursement of moneys aclually expended for said puryoses from income or from other
moneys in the treasury not secured by or obtained from the issue, assumption, or guarantee of
securities; or any other purposes approved by the Commission or authorized by law.
Staff analyzed the effects on the Company's capital structure by the sale of the requested
stock and found that this should not have a major impact on the Company's capital structure and
would affect the equity percentage by less than2o/o. This will allow the Company to maintain its
debt to equity ratio.
1DECISION MEMORANDUM FEBRUARY 28,2019
STATF RECOMMENDATION
Staff recommends approval of the request for authorization to issue 3,500,000 shares of
common stock.
COMMISSION DECISION
Should the Commission approve the Company's request lor authorization to issue
3,500,000 shares of common stock?
Terry
Udmemos/Decision Memo AVU-U- I 9-0 I
?DECISION MEMORANDUM FEBRUARY 28,2419