20220103Decision Memo.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER ANDERSON COMMISSIONER RAPER
COMMISSION SECRET ARY LEGAL WORKING FILE
JOSEPH TERRY
DECEMBER 29, 2021
AVISTA CORPORATION'S APPLICATION TO ISSUE UP TO
$400,000,000; CASE NO. A VU-U-21-03
On December 9, 2021, Avista Corporation ("Avista" or "Company") filed an Application
requesting authority to offer, issue, and sell up to $400,000,000 secured or unsecured Debt
Securities ("Debt"). The requested authority is in addition to previous authorizations given by
the Commission, of which $310,000,000 remain. The correct filing fees were received on
December 21, 2021.
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 could be either fixed or floating and 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:
Maximum Spread
Over Benchmark Debt Maturity Period Treasury Yield
Greater Less and or Secured Unsecured Than Equal to (bps) (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
4 Year 5 Year 205 235
5 Year 7 Year 210 240
7 Year 8 Year 215 245
DECISION MEMORANDUM - I -DECEMBER 29, 2021