20240201Final_Order_No_36079.pdf

ORDER NO. 36079 1
Office of the Secretary
Service Date
February 1, 2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR AN
ORDER AUTHORIZING THE OFFERING,
ISSUANCE AND SALE OF DEBT
SECURITIES NOT TO EXCEED $300,000,000

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CASE NO. AVU-U-24-01

ORDER NO. 36079

On January 4, 2024, Avista Corporation (“Avista” or “Company”) applied for authority to
offer, issue, and sell up to $300,000,000 of secured or unsecured Debt Securities (“Debt”). Having
reviewed the record, the Commission enters this Order granting the Company’s request.
THE APPLICATION
Avista is a Washington corporation qualified to do business in the State of Idaho. It is a
public utility providing 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 $300,000,000 of Debt. The requested authority is in addition to previous
authorizations given by the Commission, of which $60,000,000 remains.1 The Debt’s maturity will
be established with each issuance and will not be less than one-year 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)
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
8 Year 9 Year 220 250

1 See Order No. 35286.
ORDER NO. 36079 2
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

COMMISSION STAFF REVIEW AND RECOMMENDATION
The Commission Staff (“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 Staff. Staff recommended that this informational filing(s) be made seven days, or as soon as
possible, before the issuance. Staff also recommended that Avista file with the Commission the
“Report or Securities Issued” and verified copies of any agreement entered into under this Order
for these issuances as soon as they become available and update if any changes occur.
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
$300,000,000 of Debt. Additionally, Staff recommended that the authority granted 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 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.
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
ORDER NO. 36079 3
fees due under Idaho Code § 61-905. We find that the Application should be approved, and the
proposed financing should be allowed.
The Commission’s Order approving the proposed debt 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
$300,000,000 in additional Debt is granted. Such amount is in addition to $400,000,000 previously
authorized by the Commission in Order No. 35386, under which $60,000,000 remains authorized
but unissued.
IT IS FURTHER ORDERED that the authority under this Order will continue during the
authorized term provided the senior secured debt rating levels remain investment grade and the
all-in coupon rate remains below 8.0%.
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, before 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 under 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 regarding rates, utility capital structure, service accounts,
valuation, estimates for determination of cost or any other matter which may come before this
Commission under 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 Chapter 9, Title 61, Idaho Code.
ORDER NO. 36079 4
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
issuing 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 1st day of
February 2024.

_________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

________________________________
Monica Barrios-Sanchez
Commission Secretary

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