20210430Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOSEPH TERRY
DATE:APRIL 28,2021
RE:AVISTA'S REQUESTFOR AUTHORIZATION TO ISSUE COMMONSTOCK;CASE NO.AVU-U-21-02
BACKGROUND
On April 8,2021,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 Idaho Code §61-905 on April 19,2021.This request is in addition to the
authority granted in Order No.34267 issued on March 7,2019 under which 1,265,611 shares
remain authorized and unissued.Staff confirmed that the Company has at least 4,765,611
(3,500,000 requested plus the 1,265,611 remaining from the previous order)authorized but
unissued shares of common stock.
The Company will continue to provide the "Report of Securities Transaction"that will
provide the proceeds and expenses wheneverthe Company issues any securities.The Company
states that the only fees will be for underwriting,private placement,legal,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 actually expended for said purposes 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.
DECISION MEMORANDUM -]-APRIL 28,2021
Staff calculated the effects of the sale of requested stock on the Company's capital
structure and determined it would increase the equity percentage by less than 2%,allowing the
Company to maintain its debt to equity ratio.
STAFF 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 for authorization to issue
3,500,000 shares of common stock?
sep Terry
Udmemos/AVU-U-21-02 Decision Memo
DECISION MEMORANDUM -2 -APRIL 28,2021