20220106Final_Order_No_35286.pdf

ORDER NO. 35286 1
Office of the Secretary
Service Date
January 6, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA
CORPORATION’S APPLICATION TO
ISSUE UP TO $400,000,000 IN
SECURITIES
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CASE NO. AVU-U-21-03

ORDER NO. 35286

On December 9, 2021, Avista Corporation (“Avista” or “Company”), applied to the
Commission for authority to offer, issue, and sell up to $400,000,000 in either secured or unsecured
Debt Securities (“Debt”). Having fully considered the Company’s Application and Staff’s
recommendation, the Commission enters this Order authorizing the Company to offer, issue, and
sell up to $400,000,000 in either secured or unsecured Debt.
THE APPLICATION
Avista is a Washington corporation that is qualified to do business in the State of Idaho.
It is a public utility that provides electric and natural gas service to customers in northern Idaho,
eastern Washington and central and southwest Oregon. The Company requests authority to offer,
issue, and sell up to $400,000,000 in either secured or unsecured Debt. The requested authority is
in addition to previous authorizations given by the Commission, of which $310,000,000 remain.1
The Debt maturity will be established with each issuance and will not be less than nine months nor
more than fifty years. The interest rate will be decided at the time of issuance. If the Company
issues Debt with a floating rate, the interest rate will be reset periodically based on an index,
generally LIBOR, commercial paper, or Treasury Bills. If the Company issues Debt with a fixed
rate it will be at a rate based upon the maturity period of that Debt as shown on the table below:
Debt Maturity Period
Maximum Spread
Over Benchmark
Treasury Yield
Greater
Than
Less and or
Equal to
Secured
(bps)
Unsecured
(bps)
9 Months 1 Year 185 215
1 Year 2 Year 190 220
2 Year 3 Year 195 225
3 Year 4 Year 200 230

1 See Order No. 34386.
ORDER NO. 35286 2
4 Year 5 Year 205 235
5 Year 7 Year 210 240
7 Year 8 Year 215 245
8 Year 9 Year 220 250
9 Year 10 Year 230 260
10 Year 15 Year 265 295
15 Year 20 Year 240 270
20 Year 25 Year 245 275
25 Year 30 Year 245 275
30 Year Or More 255 285

STAFF REVIEW AND RECOMMENDATION
Staff believed that the proposed debt met the requirement under Idaho Code § 61-901 et
seq and that the filing complied with the IDAPA 31.01.01.141. Consistent with standard reporting
requirements established by prior orders, Staff recommended that Avista file the terms of the
proposed debt issuance(s) and subsequent changes to the terms with the Commission Staff. Staff
recommended that this informational filing be made seven days, or as soon as possible, prior to
the issuance. Staff also recommended that Avista file with the Commission the “Report or
Securities Issued” and verified copies of any agreement entered into pursuant to this order for these
issuances as soon as they become available and update if any changes occur.
Avista has $250,000,000 in long term debt maturing in April 2022. If the Company were
to refinance that debt using only the previously authorized debt, there would only be $60,000,000
left of authorized debt. Access to the debt markets is vital to capital intensive industries like
Avista. Avista is rated Baa2 by Moody’s and BBB by S&P Global ratings. Staff verified that
prudent use of these proposed issuances would have minimal risk to changing the capital ratios
significantly. Based on the foregoing, Staff recommended the Commission authorize the Company
to issue an additional $400,000,000 of Debt Securities. Additionally, Staff recommended that the
authority issued by the Commission be continual—provided Avista maintains senior secured debt
ratings that are investment grade (Baa3 for Moody’s or BBB- for S&P) and that the all-in coupon
rate does not exceed 8.0%.
COMMISSION FINDINGS AND DISCUSSION
The Company is a Washington corporation that is qualified to do business in Idaho. It
is a public utility engaged in the generation, purchase, transmission, distribution, and sale of
electric energy and natural gas. See Idaho Code § 61-129.
ORDER NO. 35286 3
The Commission has jurisdiction over the Application under Idaho Code § 61-901, et
seq. We find that the proposed issuance is in the public interest and a formal hearing on this matter
is not required. We further find that the proposed issuance is for a lawful purpose and is within the
Company’s corporate powers, that the Application conforms to Rules 141 through 150 of the
Commission’s Rules of Procedure, IDAPA 31.01.01-141-150, and that the Company has paid all
fees due under Idaho Code § 61-905. Accordingly, we find that the Application should be
approved, and the proposed financing should be allowed.
The Commission’s Order approving the proposed financing and the general purposes
to which the proceeds may be put is not a determination that the Commission approves of the
particular use to which these funds will be put. This Order also is not a Commission determination
or approval of the type of financing or the related costs for ratemaking purposes. The Commission
does not have before it for determination, and so does not determine, the effect of the proposed
transaction on rates the Company will charge for public utility service.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application to offer, issue, and sell up
to $400,000,000 in additional Debt Securities is granted. Such amount is in addition to
$600,000,000 previously authorized by the Commission in Order No. 34386, under which
$310,000,000 remains authorized but unissued. Thus, Avista will now have authority to offer,
issue, and sell up to $710,000,000 in Debt Securities, which may be secured or unsecured.
IT IS FURTHER ORDERED that the Company must file the terms of the proposed
debt issuance(s) and subsequent changes to the terms with Staff. The informational filing must be
made seven days, or as soon as possible, prior to the issuance.
IT IS FURTHER ORDERED that the Company must file with the Commission the
“Report or Securities Issued” and verified copies of any agreement entered into pursuant to this
Order as soon as they become available and update the Commission if any changes occur.
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
ORDER NO. 35286 4
to obligate the State of Idaho to pay or 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 the Company’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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 6th day
of January 2022.

ERIC ANDERSON, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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