20221213Final_Order_No_35626.pdf

ORDER NO. 35626 1

Office of the Secretary
Service Date
December 13, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AVISTA
CORPORATION’S APPLICATION FOR
AN ORDER AUTHORIZING THE
ISSUANCE OF AN ADDITIONAL
$250,000,000 IN SHORT-TERM
SECURITIES
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CASE NO. AVU-U-22-02

ORDER NO. 35626

On December 13, 2022, Avista Corporation (“Company”) applied under Idaho Code §§
61-901, et seq., for authority to secure an additional $250,000,000 in short-term securities.
Application at 1. The Company requested an order be issued by December 13, 2022. Id. The
Company represented that there is an “emergent” need, as the Company is facing gas and power
prices that are “5 to 8 times higher than normal” with “significant margin calls associated with
future commodity sales and hedging arrangements.” Id.
Pursuant to Idaho Code § 61-904, the Commission has 30 days from the filing date to issue
an order. At the Commission’s December 13, 2022, Decision Meeting, Staff recommended that
the Commission issue an order approving the requested authority due to the Company’s emergent
need. Based on our review of the record, we issue this Order approving the Application as
discussed below.
THE APPLICATION
The Company seeks authority to increase its current authority to borrow up to
$250,000,000, for a period of 12 months (“Line of Credit”) Id. The Line of Credit includes (1) a
term loan credit facility in the initial principal amount of $100,000,000, with an option to request
an additional $50,000,000 (“Bridge Loan”); (2) a $50,000,000 increase to its existing unsecured
revolving credit facility (“Accordion Loan”); and (3) a $50,000,000 bilateral uncommitted letter
of credit facility (“LC facility”) for a period of 12 months.
The Loan proceeds will be used for “(a) the Company’s acquisition, construction,
completion, extension, or improvement or facilities; (b) the improvement or maintenance of
service; (c) retirement or exchange of one or more outstanding stock, bond, or note issuances; (d)
reimbursement to treasury for funds previously expended; and (e) other purposes permitted by
law.” Id.

ORDER NO. 35626 2
STAFF REVIEW AND RECOMMENDATION
Staff recommended the Commission approve the Company’s request, and waive the public
notice requirement in Commission Rules of Procedure 141-146, IDAPA 31.01.01.141-146, and
waive the timing of the receipt of payment prior to the Order being issued under Idaho Code § 61-
909, because expediting the approval is in the public interest. Staff verified that the Company’s
current senior secured debt ratings are A- by Standard & Poor’s Rating Services (“Standard &
Poor’s”) and A3 by Moody’s Investor Services, Inc. (“Moody’s”), and that the Company’s
expected loan will have fees, interest rates, and expenses that are competitive with market prices
for similar transactions. Staff recommended that the Company notify the Commission of any credit
rating changes that may occur over the 12-month period.
FINDINGS AND DISCUSSION
The Company is a public utility in Idaho as defined by Idaho Code § 61-129 through its
operations of gas and electric corporations as defined by Idaho Code §§ 61-117 and 61-119
respectively, and engages in the generation, purchase, transmission, distribution, and sale of
electric energy and the purchase, distribution, and sale of natural gas. The Commission has
jurisdiction over the Company’s Application under Idaho Code §§ 61-901, et seq. We find that the
Company’s requested permission for authority to secure additional securities is in the public
interest and a formal hearing on this matter is not required. Further, we find that the proposed
issuance is for a lawful purpose and is within the Company’s corporate powers, that the
Application reasonably conforms to Rules 141 through 150 of the Commission’s Rules of
Procedure, IDAPA 31.01.01.141 et. seq., with the exception that we direct the Company to remit
all required fees due under Idaho Code § 61-905 as soon as possible. Additionally, we find it
noteworthy to memorialize our exemption of the public notice requirement under Commission
Rule 141.08, IDAPA 31.01.01.141.08, in this expedited review, pursuant to Commission Rules 13
and 147, IDAPA 31.01.01.13 and 147. Accordingly, given the urgency with which we are making
a decision on this matter we find that the Application is approved and the request for authority to
obtain additional financing is allowed. While we approve the Application with this Order, we
direct the Company to report any changes to its credit ratings in the next 12 months.
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. The Order also is not a Commission determination
ORDER NO. 35626 3
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 electric service.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for authority to borrow up to
$250,000,000, for a twelve-month period, is granted.
IT IS FURTHER ORDERED that the public notice requirements under Commission Rule
of Procedure 141.08, IDAPA 31.01.01.141.08, are waived pursuant to Commission Rules of
Procedure 13 and 147, IDAPA 31.01.01.13 and 147, because under the facts and timeline of this
case this requirement is impactable and the public interest will not be affected.
IT IS FURTHER ORDERED that the Idaho Code § 61-905 requirement that all fees shall
be paid prior to the issuance of an order and security authorization is waived due to the facts of
present in this case. The Company shall remit all required fees arising from this Application to the
Commission as soon as possible. See Idaho Code §§ 61-905 and 61-909.
IT IS FURTHER ORDERED that the Company shall notify the Commission of any credit
rating changes that occur over the 12-month period.
IT IS FURTHER ORDERED that the Company must continue to file quarterly reports with
the Commission setting forth the date of issuance, principal amount, interest rate, date of maturity,
and identity of payee for all promissory notes issued during the quarter. The Company must
continue to file its capitalization ratios with the quarterly reports.
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 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 materials accompanying the Application for any purpose other than
the issuance of this Order.
ORDER NO. 35626 4
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 13th day of
December 2022.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN CHATBURN, COMMISSIONER

__________________________________________
JOHN R. HAMMOND, JR., COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

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