20230711Decision Memo.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER ANDERSON COMMISSIONER HAMMOND COMMISSIONER LODGE
COMMISSION SECRET ARY
LEGAL
JOSEPH TERRY CLAIRE SHARP
JULY 11, 2023
AVISTA'S APPLICATION TO ISSUE UP TO 4,000,000 SHARES OF COMMON STOCK; CASE NO. A VU-U-23-02
BACKGROUND
On June 30, 2023, Avista Corporation ("Avista" or "Company") filed an Application
requesting authority to offer, issue and sell up to 4,000,000 shares of authorized but unissued
common stock. As of July 5, 2023, the Commission has not received the fees as required by
Idaho Code§ 61-905. Staff has confirmed with the Company that payment is imminently
forthcoming. The requested authority is in addition to the authority granted in Order No. 35373
issued on April 19, 2022, under which 844,787 shares remain authorized and unissued. Staff
confirmed that the Company has at least 4,844,787 (4,000,000 requested plus the 844,787
remaining from the previous order) authorized but unissued shares of common stock.
The Company states it will continue to provide the "Report of Securities Transaction"
whenever the Company issues any securities that will show the proceeds and expenses of each
issuance. 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 - 1 -JULY 11, 2023
-·
Staff analyzed the effects on the Company's capital structure from the sale of the
requested stock and it does not have a major impact on the Company's capital structure. The
requested sale of stock would affect the equity percentage by less than 2%. This will allow the
Company to maintain an acceptable debt to equity ratio.
STAFF RECOMMENDATION
Staff recommends approval of the request for authorization to issue 4,000,000 shares of
common stock once the required fees per Idaho Code § 61-905 are received.
COMMISSION DECISION
Should the Commission approve the Company's request for authorization to issue
4,000,000 shares of common stock once the required fees per Idaho Code§ 61-905 are received? Udmemos/ A VU-U-23-02 Decision Memo DECISION MEMORANDUM -2 -JULY 11, 2023