2022Annual Report Gas.pdf

THIS FILING IS
Item 1:2 An Initial (Original)Submission OR Resubmission No.
FERC FINANCIAL REPORT
FERC FORM No. 2:Annual Report of
Major Natural Gas Companies and
Supplemental Form 3-Q:Quarterly
Financial Report
these reports are mandatory under the Natural Gas Act,Sections 10(a),and 16
and 18 CFR Parts 260.1 and 260.300.Failure to report rnay result in criminalíines, civil penalties,and other sanctions as provided by law.The Federal
Energy Regulatory Commission does not consider these reports to be of aconfidentialnature.
Exact Legal Name of Respondent (Company)Year/Period of Report:
Avista Corporation End of:2022/Q4
FERC FORM NO.2 (02-04)
RECEIVED
2023 April 28, 10:05AM
IDAHO PUBLIC
UTILITIES COMMISSION
AVU-G
INSTRUCTIONS FOR FILING FERC FORMS 2,2-A and 3-Q
GENERAL INFORMATION
l.Purpose
FERC Forms 2,2-A,and 3-Q are designed to collect financial and operational information from natural gas companies subject to thejurisdictionoftheFederalEnergyRegulatoryCommission.These reports are also considered to be a non-confidential public use forms.
Il-Who Must Submit
Each natural gas company whose combined gas transported or stored for a fee exceed 50 million dekatherms in each of the previousthreeyearsmustsubmitFERCForm2and3-Q.
Each natural gas company not meeting the filing threshold for FERC Form 2,but having total gas sales or volume transactions exceeding200,000 dekatherms in each of the previous three calendar years must submit FERC Form 2-A and 3-Q.
Newly established entities must use projected data to determine whether they must file the FERC Form 3-Q and FERC Form 2 or2-A.
III-What and Where to Submit
a.Submit FERC Form Nos.2,2-A and 3-Q electronically through the eCollection portal at httos://eCollection.ferc.cov,and according tothespecificationsintheForm2,2-A and 3-Q taxonomies..
b.The Corporate Officer Certification must be submitted electronically as part of the FERC Form 2 and 3-Q filings.
c.Submit immediately upon publication,by either eFiling or mailing two (2)copies to the Secretary of the Commission,the latestAnnualReporttoStockholdersandanyannualfinancialorstatisticalreportregularlypreparedanddistributedtobondholders,security analysts,or industry associations.Do not include monthly and quarterly reports.Indicate by checking the appropriate boxonForm2,Page 3,List of Schedules,if the reports to stockholders will be submitted or if no annual report to stockholders isprepared.Unless eFiling the Annual Report to Stockholders,mail these reports to the Secretary of the Commission at:
Secretary of the Commission
Federal Energy Regulatory Commission
888 First Street,NE
Washington,DC 20426
d.For the Annual CPA certification,submit with the original submission of this form,a letter or report (not applicable to respondentsclassifiedasClassCorClassDpriortoJanuary1,1984)prepared in conformity with the current standards of reporting which will:
i.Contain a paragraph attesting to the conformity,in all material respects,of the schedules listed below with the Commission'sapplicableUniformSystemsofAccounts(including applicable notes relating thereto and the Chief Accountant's publishedaccountingreleases),and
ii.be signed by independent certified public accountants or an independent licensed public accountant certified or licensed by aregulatoryauthorityofaStateorotherpoliticalsubdivisionoftheU.S.(See 18 C.F.R.§§158.10-158.12 for specificqualifications.)
Reference Reference Schedules Paqes
Comparative Balance Sheet 110-113
Statement of Income 114-117
Statement of Retained Eamings 118-119
Statement of Cash Flows 120-121
Notes to Financial Statements 122-123
Filers should state in the letter or report,which,if any,of the pages above do not conform to the Commission's requirements.Describe the discrepancies that exist
e.Filers are encouraged to file their Annual Report to Stockholders,and the CPA Certification Statement using eFiling.FurtherinstructionsarefoundontheCommissionwebsiteathttos://www.ferc.aov/ferc-onlinelferc-onlinelfrequently-asked-ouestions-faas-efilinoferc-online .
f.Federal,State and Local Govemments and other authorized users may obtain additional blank copies of FERC Form 2 and 2-Afreeofchargefrom:httos://www.ferc.govlindustries-datalnatural-aaslindustrv-forms .Copies may also be obtained from the PublicReferenceandFilesMaintenanceBranch,Federal Energy Regulatory Commission,888 First Street,NE.Room 2A,Washington,DC 20426 or by calling (202).502-8371
IV-When to Submit:
FERC Forms 2,2-A,and 3-Q must be filed by the dates:
a.FERC Form 2 and 2-A---by April 18th of the following year (18 C.F.R.§§260.1 and 260.2)
b.FERC Form 3-Q ---Natural gas companies that file a FERC Form 2 must file the FERC Form 3-Q within 60 days after the reporting
quarter (18 C.F.R.§ 260.300),and
c.FERC Form 3-Q -Natural gas companies that file a FERC Form 2-A must file the FERC Form 3-Q within 70 days after the
reporting quarter (18 C.F.R.§260.300).
V.Where to Send Comments on Public Reporting Burden.
The public reporting burden for the Form 2 collection of information is estimated to average 1,671.66 hours per response,including the
time for reviewing instructions, searching existing data sources,gathering and maintaining the data-needed,and completing and
reviewing the collection of information. The public reporting burden for the Form 2A collection of information is estimated to average
295.66 hours per response. The public reporting burden for the Form 3-Q collection of information is estimated to average 167 hours per
response.
Send comments regarding these burden estimates or any aspect of these collections of information,including suggestions for reducing
burden,to the Federal Energy Regulatory Commission,888 First Street NE,Washington, DC 20426 (Attention: Information Clearance
Officer);and to the Office of Information and Regulatory Affairs,Office of Management and Budget,Washington, DC 20503 (Attention:
Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if any collection of information
does not display a valid control number (44 U.S.C.§3512 (a)).
GENERAL INSTRUCTIONS
I.Prepare all reports in conformity with the Uniform System of Accounts (USofA)(18 C.F.R. Part 201).Interpret all accounting words and
phrases in accordance with the USofA.
II.Enter in whole numbers (dollars or Dth)only,except where otherwise noted. (Enter cents for averages and figures per unit where cents
are important.The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts
shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to
determine significance for reporting purposes,use for balance sheet accounts the balances at the end of the current reporting period,and
use for statementof income accounts the current year's year to date amounts.
Ill.Complete each question fully and accurately,even if it has been answered in a previous report.Enter the word "None"where it truly and
completely states the fact.
IV.For any page(s)that is not applicable to the respondent, indicate whether a schedule has been omitted by entering "NA,""NONE,"or"Not
Applicable"in column (d) on the List of Schedules, page 2.
V.Enter the month,day,and year for all dates.Use customary abbreviations.The "Date of Report"included in the header of each page
is to be completed only for resubmissions.
VI.Generally, except for certain schedules,all numbers,whether they are expected to be debits or credits,must be reported as positive.
Numbers having a sign that is differentfrom the expected sign must be reported by enclosing the numbers in parentheses.
VII. For any resubmissions, please explain the reason for the resubmission in a footnote to the data field.
VIII. Footnote and further explain accounts or pages as necessary.
IX.Do not make references to reports of previous periodslyears or to other reports in lieu of required entries,except as specifically
authorized.
X.Wherever (schedule) pages refer to figures from a previous periodlyear,the figures reported must be based upon those shown by the
reportof the previous periodlyear,or an appropriate explanation given as to why the different figures were used.
XI.Report all gas volumes in Dth unless the schedule specifically requires the reporting in another unitof measurement.
XII. Schedule specific instructions are found in the applicable taxonomy and on the applicable blank rendered form.
DEFINITIONS
I.Btu per cubic foot-The total heating value,expressed in Btu,produced by the combustion,at constant pressure,of the amount of the gas
which would occupy a volume of 1 cubic foot at a temperature of 60°F if saturated with water vapor and under a pressure equivalent to
that of 30°F,and under standard gravitational force (980.665 cm.per sec) with air of the same temperature and pressure as the gas,when
the products of combustion are cooled to the initial temperature of gas and air when the water formed by combustion is condensed to the
liquid state (called gross heating value or total heating value).
II.Commission Authorization -The authorization of the Federal Energy Regulatory Commission,or any other Commission. Name the
commission whose authorization was obtained and give date of the authorization.
Ill.Dekatherm -A unit of heating value equivalent to 10 therms or 1,000,000 Btu.
IV.Respondent-The person, corporation, licensee, agency,authority,or other legal entity or instrumentality on whose behalf the report is
made.
EXCERPTS FROM THE LAW
Natural Gas Act,15 U.S.C.717-717w
"Sec.10(a).Every natural-gas company shall file with the Commission such annual and other periodic or special reports as the Commission
may by rules and regulations or order prescribe as necessary or appropriate to assist the Commission in the proper administration of this act.
The Commission may prescribe the manner and form in which such reports shall be made and require from such natural-gas companies
specific answers to all questions upon which the Commission may need information. The Commission may require that such reports include,
among other things,full information as to assets and liabilities,capitalization, investment and reduction thereof, gross receipts,interest dues
and paid,depreciation,amortization,and other resentes,cost of facilities,costs of maintenance and operation of facilities for the production,transportation,delivery,use,or sale of natural gas,costs of renewal and replacement of such facilities,transportation,delivery,use and sale ofnaturalgas..."
"Section 16.The Commission shall have power to perform all and any acts,and to prescribe,issue,make,amend,and rescind such orders,rules,and regulations as it may find necessary or appropriate to carry out the provisions of this act.Among other things,such rules andregulationsmaydefineaccounting,technical,and trade terms used in this act;and may prescribe the form or forms of all statementsdeclarations,applications,and reports to be filed with the Commission,the information which they shall contain,and time within they shall befiled..."
General Penalties
The Commission may assess up to $1 million per day per violation of its rules and regulations.See NGA §22(a),15 U.S.C.§717t-1(a).
FERC FORM NO.2
FERC FORM NO.2
REPORTOF MAJOR NATURALGAS COMPANIES
IDENTIFICATION
02 Year/Period of Report01ExactLegalNameofRespondent
Avista Corporation End of:2022/Q4
03 Previous Name and Date of Change (if name changed during year)
04 Address of Principal Ofnce at End of Year (Street,City,State,Zip Code)
1411 East Mission Avenue,Spokane,WA 99207
05 Name of Contact Person 06 Title of Contact Person
Ryan L.Krasselt VP,Controller,Prin Acctg Officer
07 Address of Contact Person (Street,City,State,Zip Code)
1411 East Mission Avenue,Spokane,WA 99207
0C8dTelephoneofContact Person,including Area 09 T s Re rt is An Original lA Resubmission Da/t2e02fReport (Mo,Da,Yr)
509-495-2273 (2)A Resubmission
Annual Corporate Officer Certification
The undersigned officer certifies that:
I have examined this report and to the best of my knowledge,information,and belief all statements of fact contained in this report are correct
statements of the business affairs of the respondent and the financial statements,and other financial information contained in this report,
conform in all material respects to the Uniform System of Accounts.
11 Name 12 Title
Ryan L.Krasselt VP,Controller,Prin Acctg Officer
13 Signature 14 Date Signed
Ryan L.Krasselt 04/18/2023
Title 18,U.S.C.1001 makes it a crime for any person to knowingly and willingly to make to any Agency or Department of the United States
any false,fictitious or fraudulent statements as to any matter within its jurisdiction.
FERC FORM No.2 (02-04)
Page 1
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
List of Schedules (Natural Gas Company)
ReärenceLineTitleofSchedule Date Revised RemarksPageNo.No.(a)(b)(c)(d)
Identification 1 02-04
List of Schedules (Natural Gas Campnay)2 REV 12-07
GENERAL CORPORATE INFORMATION AND FINANCIALSTATEMENTS
1 General Information 101 12-96
2 Control Over Respondent 1_02 12-96
3 Corporations Controlled by Respondent 1N 12-96
4 Security Holders and Voting Powers 1077 12-96
5 Important Changes During the Year 1_08 12-96
6 Comparative Balance Sheet REV 06-04
Comparative Balance Sheet (Assets And Other Debits)1110 REV 06-04
Comparative Balance Sheet (Liabilities and Other Credits)112 REV 06-04
7 Statement of income for the Year 114 REV 06-04
8 Statement of Accumulated Comprehensive Income and 117 NEW 06-02HedgingActivities
9 Statementof Retained Eamings forthe Year 118 REV 06-04
10 Statement of Cash Flows 120 REV 06-04
11 Notes to Financial Statements REV 12-07
BALANCE SHEET SUPPORTING SCHEDULES (Assets andOtherDebits)
12 Summary of Utility Plant and Accumulated Provisions for 200 12-96Depreciation,Amortization,and Depletion
13 Gas Plant in Service _204 12-96
14 Gas Property and Capacity Leased from Others _21_2 12-96
15 Gas Property and Capacity Leased to Others 2_113 12-96
16 Gas Plant Held for Future Use _214 12-96
17 Construction Work in Progress-Gas _21_6 12-96
18 Non-Traditional Rate Treatment Afforded New Projects _21_7 NEW 12-07
19 General Description of Construction Overhead Procedure 218 REV 12-07
20 Accumulated Provision for Depreciation of Gas Utility Plant 219 12-96
21 Gas Stored 220 REV 04-04
22 Investments 222 12-96
FERC FORM No.2 (REV 12-07)
Page 2
List of Schedules (Natural Gas Company)
ÄeierenceLineTitleofSchedule Date Revised Rernarks
No.(a)Pa No.
23 Investments In Subsidiary Companies _224 12-96
24 Prepayments _2_30a 12-96
25 Extraordinary Property Losses 2_3_0b 12-96
26 Unrecovered Plant And Regulatory Study Costs _2_3_0_Q 12-96
27 Other Regulatory Assets 2:L2 REV 12-07
28 Miscellaneous Deferred Debits 233 12-96
29 Accumulated Deferred Income Taxes 234 REV 12-07
BALANCESHEET SUPPORTING SCHEDULES (Liabilities
and Other Credits)
30 Capital Stock _2_5_0 12-96
Capital Stock Subscribed,Capital Stock Liability for
31 Conversion,Premium on Capital Stock,and Installments 252 12-96
Recieved on Capital Stock
32 Other Paid-In Capital _253 12-96
33 Discount on Capital Stock 22 12-96
34 Capital Stock Expense _2¾12-96
Securities Issued Or Assumed And Securities Refunded Or35 255.1 12-96RetiredDuringTheYear
36 Long-Term Debt _256 12-96
37 Unamortized Debt Expense,Premium And Discount On Long-_258 12-96TermDebt
38 Unamortized Loss And Gain On Reacquired Debt _2¾12-96
39 Reconciliation of Reported Net Income with Taxable Income for _261 12-96FederalIncomeTaxes
40 Taxes Accrued,Prepaid And Charged During Year,Distribution _262 REV 12-07OfTaxesCharged
41 Miscellaneous Current And Accrued Liabilities _2B 12-96
42 Other Deferred Credits _269 12-96
43 Accumulated Deferred Income Taxes-Other Property (Account 27_4 REV 12-07282)
44 Accumulated Deferred Income Taxes-Other (Account 283)276 REV 12-07
45 Other Regulatory Liabilities 278 REV 12-07
INCOME ACCOUNTSUPPORTING SCHEDULES
46 Monthly Quantity &Revenue Data _2B NEW 12-08
47 Gas Operating Revenues _300 REV 12-07
48 Revenues From Transportation Of Gas Of Others Through 302 12-96GatheringFacilities
FERG FORM No.2 (REV 12-07)
Page 2
List of Schedules (Natural Gas Company)
Line Title ofSchedule Date Revised RemarksPageNo.No.(af (b)(c)(d)
49 Revenues From Transportation Of Gas Of Others Through 304 12-96TransmissionFacilities
50 Revenues From Storing Gas Of Others _3(06 12-96
51 Other Gas Revenues B 12-96
52 Discounted Rate Services And Negotiated Rate Services D NEW 12-07
53 Gas Operation And Maintenance Expenses 3R 12-96
54 Exchange And Imbalance Transactions 328 12-96
55 Gas Used In Utility Operations 21 12-96
56 Transmission And Compression Of Gas By Others 3_32 12-96
57 Other Gas Supply Expenses 334 12-96
58 Miscellaneous General Expenses-Gas 335 12-96
59 Depreciation,Depletion,and Amortization of Gas Plant 12-96
59 Section A.Summary of Depreciation,Depletion,and _336 12-96AmortizationCharges
59 Section B.Factors Used in Estimating Depreciation Charges 32 12-96
60 Particulars Conceming Certain Income Deductions And _340 12-96InterestChargesAccounts
COMMON SECTION 12-96
61 Regulatory Commission Expenses MO 12-96
62 Employee Pensions And Benefits (Account 926)1552 NEW 12-07
63 Distribution Of Salaries And Wages _354 REVISED
64 Charges For Outside Professional And Other Consultative 357 REVISEDServices
65 Transactions With Associated (Affiliated)Companies _358 NEW 12-07
GAS PLANT STATISTICALDATA
66 Compressor Stations _508 REV 12-07
67 Gas Storage Projects _512 12-96
67 Gas Storage Projects 51_3 12-96
68 Transmission Lines _5½12-96
69 Transmission System Peak Deliveries _5_1B 12-96
70 Auxilianj Peaking Facilities _51_9 12-96
71 Gas Account-Natural Gas _52_0 REV 01-11
72 Shipper Supplied Gas for the Current Quarter _521 REVISED 02-11
73 System Maps 5211 REV.12-96
FERC FORM No.2 (REV 12-07)
Page 2
List of Schedules (Natural Gas Company)
Line Title of Schedule Àef rence Date Revised Remarks
No.(a)Pa No (c)(d)
74 Footnote Reference
75 Footnote Text
76 Stockholder's Reports (check appropriate box)
Four copies will be submitted
No annual report to stockholders is prepared
FERCFORMNo.2(REV12-07)
Page 2
This report is:Name of Respondent:(1)2 An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
General Information
1.Provide name and title of officer having custody of the general corporate books of account and address of office where the generalcorporatebooksarekept,and address of office where any other corporate books of account are kept,if differentfrom that where the generalcorporatebooksarekept.
Ryan L Krasselt,VP,Controller,Prin Acctg Officer 1411 East Mission Avenue,Spokane,WA 99207Ryan L.Krasselt
VP,Controller,Prin Acctg Officer
1411 East Mission Avenue,Spokane,WA99207
2.Provide the name of the State under the laws of which respondent is incorporated,and date of incorporation.If incorporated under a
special law,give reference to such law.If not incorporated,state that fact and give the type of organization and the date organized.
WA State 3/15/1889
State of Incorporation:WA
Date of incorporation:03/15/1889
Incorporated Under Special Law:
3.If at any time during the year the property of respondent was held by a receiver or trustee,give (a)name of receiver or trustee,(b)date
such receiver or trustee took possession,(c)the authority by which the receivership or trusteeship was created,and (d)date when
possession by receiver or trustee ceased.
None
(a)Name of Receiver or Trustee Holding Property of the Respondent:None
(b)Date Receiver took Possession of Respondent Property:
(c)Authority by which the Receivership or Trusteeship was created:
(d)Date when possession by receiver or trustee ceased:
4.State the classes or utility and other services furnished by respondent during the year in each State in which the respondent operated.
Electric service in the states of Washington,Idaho and Montana Natural gas service in the states of Washington,Idaho and Oregon
5.Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for
your previous year's certified financial statements?
(1)Ü Yes
(2)2No
ERC FORM No.2 (12-96)
Page 101
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
CorporationsControlled by Respondent
Lina Name of Company ControUed pe o Kind of Business Footnote Refemnce
No.(a)(c)(e)
1 Avista Capital,Inc.D Parent to the Company's 100%subsidiaries
2 Avista Development i Investment in Real Estate 100%
3 Avista Edge,Inc.I
Investment in Technology 100°/providing high speed intemet °
4 Pentzer Corporation I
Parent of Bay Area Mfg and 100%Penture Venture Holdings
5 Pentzer Venture Holdings II I Holding Company-Inactive 100%
6 University Development
I Facilitates Property Acquisitions 100%Company,LLC
7 Avista Capital II D Affiliated business trust issued 100
pref trust Securities %
8 Avista Northwest Resources,Owns an interest in a venture 100
LLC fund investment %
9 Courtyard Office Center,LLC I Office &Retail Leasing 100
Liquified Natural Gas 10010Salix,Inc.I Operations %
11 Alaska Energy and Resources D Parent Co of Alaska Operations 100
Company (AERC)%
Alaska Electric Light and Power 10012IUtilityOperationsinJuneauCompany%
Inactive mining Co holding 10013AJTMiningProperties,Inc.I certain properties %
10014SnettishamElectricCompanyIRighttoPurchaseSnettisham
FERt:FORM No.2 (12-96)
Page 103
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of 2022/Q4(2)A Resubmission
FOOTNOTE DATA
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(p_)Concept:VotingStockOwnedByRespondentPercentage
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£u_)Concept:VotingStockOwnedByRespondentPercentage
£v)Concept:VotingStockOwnedByRespondentPercentage
(w)Concept:VotingStockOwnedByRespondentPercentage
(x)Concept:VotingStockOwnedByRespondentPercentage
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£z)Concept:VotingStockOwnedByRespondentPercentage
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£ab)Concept:VotingStockOwnedByRespondentPercentage
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£ad)Concept:VotingStockOwnedByRespondentPercentage
(ae)Concept:VotingStockOwnedByRespondentPercentage
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£ag)Concept:VotingStockOwnedByRespondentPercentage
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(as)Concept:VotingStockOwnedByRespondentPercentage
£at)Concept:VotingStockOwnedByRespondentPercentage
£a_uu)Concept:VotingStockOwnedByRespondentPercentage
£av)Concept:VotingStockOwnedByRespondentPercentage
Law_)Concept:VotingStockOwnedByRespondentPercentage
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£ay)Concept:VotingStockOwnedByRespondentPercentage
£az)Concept:VotingStockOwnedByRespondentPercentage
(ba)Concept:VotingStockOwnedByRespondentPercentage
(bb)Concept:VotingStockOwnedByRespondentPercentage
£bc)Concept:VotingStockOwnedByRespondentPercentage
£bd)Concept:VotingStockOwnedByRespondentPercentage
FERC FORM No.2 (12-96)
Page 103
This report is:Date of Report:Year/Period of Report:Name of Respondent:(1)O An OriginalAvistaCorporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Security Holders and Voting Powers
1.Give the names and addresses of the 10 security holders of the respondent who,at the date of the latest closing of the stock book or
compilation of list of stockholders of the respondent,prior to the end of the year,had the highest voting powers in the respondent,and
state the number of votes that each could cast on that date if a meeting were held.If any such holder held in trust,give in a footnote the
known particulars of the trust (whether voting trust,etc.),duration of trust,and principal holders of beneficiary interests in the trust.If the
company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the year,or if since it
compiled the previous list of stockholders,some other class of security has become vested with voting rights,then show such 10
security holders as of the close of the year.Arrange the names of the security holders in the order of voting power,commencing with
the highest.Show in column (a)the titles of officers and directors included in such list of 10 security holders.
2.If any security other than stock carries voting rights,explain in a supplemental statement how such security became vested with voting
rights and give other important details concerning the voting rights of such security.State whether voting rights are actual or
contingent;if contingent,describe the contingency.
3.If any class or issue of security has any special privileges in the election of directors,trustees or managers,or in the determination of
corporate action by any method,explain briefly in a footnote.
4.Fumish details conceming any options,warrants,or rights outstanding at the end of the year for others to purchase securities of the
respondent or any securities or other assets owned by the respondent,including prices,expiration dates,and other material
information relating to exercise of the options,warrants,or rights.Specify the amount of such securities or assets any officer,director,
associated company,or any of the 10 largest security holders is entitled to purchase.This instruction is inapplicable to convertible
securities or to any securities substantially all of which are outstanding in the hands of the general public where the options,warrants.
2.State the total number of votes cast at the
latest general meeting prior to the end of
year for election of directors of the1.Give date of the latest closing of the stock respondent and number of such votes castbookpriortoendofyear,and,in a footnote,3.Give the date and place of such meeting:
state the purpose of such closing:Lyproxy.2022-05-12
12/30/2022 65,539,433
By Proxy:
65,539,433
VOTINGSECURITIES
4.Numberof votes as of (date):
.Name (Title)and Address ofLme ¶2/30/2022
No.Security Holder
(a)Total Votes Common Stock Preferred Stock Other
(b)(c)(d)(e)
5 TOTAL votes of all voting securities
6 TOTAL number of security holders
7 TOTAL votes of security holders
listed below
BlackRock Instutional Trust,55 East8 13,682,642 13,682,64252ndStreet,New York,NY 10055
9 The Vanguard Group,100 Vanguard 9,169,360 9,169,360Blvd.,Malvem,PA 19355
State Street Corporation,1 Lincoln10 3,638,235 3,638,235Street,Boston,MA 02111
Public Sector Pension investment
Board,1250 Ren-Lvesque11 3,513,712 3,513,712BoulevardWestSuite1400,
Montral,Qubec,Canada H3B 5E9
Millenium Management LLC,39912 2,945,495 2,945,495ParkAvenueNewYork,NY 10022
First Trust Advisors LP,120 E.
13 Liberty Drive Suite 400 Wheaton,II 1,818,226 1,818,226
60187
Nuance Investments LLC,4900
14 Main Street,Suite 220 Kansas City,1,538,842 1,538,842MO64112
Dimensional Fund Advisors LP,
15 6300 Bee Cave Road Building One,1,368,575 1,368,575
Austin,TX 78746
Ameriprise Financial Inc.,55
16 Ameriprise Financial Center 1,367,884 1,367,884Minneapolis,Minnesota 55474
Bank of New York Mellon
17 Corporation,240 Greenwich Street 1,359,320 1,359,320
New York,NY 10286
FERC FORM No.2 (12-96)
Page 107
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Important Changes During the Year
Give details conceming the matters indicated below.Make the statements explicit and precise,and number them in accordance with the
inquiries.Answer each inquiry.Enter "none"or "not applicable"where applicable.If the answer is given elsewhere in the report,refer to the
schedule in which it appears.
1.Changes in and important additions to franchise rights:Describe the actual consideration and state from whom the franchise rights
were acquired.If the franchise rights were acquired without the payment of consideration,state that fact.
2.Acquisition of ownership in other companies by reorganization,merger,or consolidation with other companies:Give names of
companies involved,particulars conceming the transactions,name of the Commission authorizing the transaction,and reference to
Commission authorization.
3.Purchase or sale of an operating unitor system:Briefly describe the property,and the related transactions,and cite Commission
authorization,if any was required.Give date joumal entries called for by Uniform System of Accounts were submitted to the
Commission.
4.Important leaseholds (otherthan leaseholds for natural gas lands)that have been acquired or given,assigned or surrendered:Give
effective dates,lengths of terms,names of parties,rents,and other conditions.State name of Commission authorizing lease and give
reference to such authorization.
5.Important extension or reduction of transmission or distribution system:State territory added or relinquished and date operations
began or ceased and cite Commission authorization,if any was required.State also the approximate number of customers added or
lost and approximate annual revenues of each class of service.Each natural gas company must also state major new continuing
sources of gas made available to itfrom purchases,development,purchase contract or otherwise,giving location and approximate
total gas volumes available,period of contracts,and other parties to any such arrangements,etc.
6.Obligations incurred or assumed by respondent as guarantor for the performance by another of any agreement or obligation,including
ordinary commercial paper maturing on demand or not later than one year after date of issue:State on behalf of whom the obligation
was assumed and amountof the obligation.Cite Commission authorization if any was required.
7.Changes in articles of incorporation or amendments to charter:Explain the nature and purpose of such changes or amendments.
8.State the estimated annual effect and nature of any important wage scale changes during the year.
9.State briefly the status of any materially important legal proceedings pending at the end of the year,and the results of any such
proceedings culminated during the year.
10.Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer,
director,security holder,voting trustee,associated company or known associate of any of these persons was a party or in which any
such person had a material interest.
11.Estimated increase or decrease in annual revenues caused by important rate changes:State effective date and approximate amount
of increase or decrease for each revenue classification.State the number of customers affected.
12.Describe fully any changes in officers,directors,major security holders and voting powers of the respondent that may have occurred
during the reporting period.
13.In the event that the respondent participates in a cash management program(s)and its proprietary capital ratio is less than 30 percent
please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent,and the extent to
which the respondent has amounts loaned or money advanced to its parent,subsidiary,or affiliated companies through a cash
management program(s).Additionally,please describe plans,if any to regain at least a 30 percent proprietary ratio.
1.None
2.None
3.None
4.None
5.None
6.Reference is made to notes 10,11 and 12 of the Notes to Financial Statements.
7.None
8.Average annual wage increases were 3.7%for non-exempt employeeseffective February 28,2022.Average annual wage increases were3.9%for exemptemployees effective February 28,2022.Officers received average increases of7.1%effective Februanj 14,2022.Certainbargainingunitemployeesreceivedaverageincreasesof4.0%effective March 26,2022 and April 1,2022.
9.Reference is made to Note 15 of the Notes to Financial Statements.
10.None
11.See belowfor information on rate changes in each of our jurisdictions:
2022 Washington GeneralRate Cases
On December 12,2022,the WUTC issued an order approving the multi-party settlement agreementthat was filed in June 2022.The parties to the settlement agreementincluded,in addition to us,the Staff of the WUTC,the Alliance of Westem Energy Consumers,the NW Energy Coalition,The Energy Project,Walmart,Small BusinessUtilityAdvocatesandSierraClub.The Public Counsel Unit of the Washington Attomey General's Office (Public Counsel),while a party to the rate cases,did not join inthesettlementagreement.The settlement agreement was reached after negotiation of all issues but is "results-focused"--that is,it represents agreement among allparties(except Public Counsel)as to our overall revenue requirement,without specifying the details of any component except the rate of retum on rate base.
On December 22,2022,Public Counsel filed a Petition for Reconsiderationrequesting the WUTC to reconsider its ruling on the settlement agreement.Public Counsel'sprimaryissueisrelatedtothe"results-focused"approachused by the settling parties and approved by the WUTC.Public Counsel argues that the WUTC order approvingthisapproachdeniedPublicCounseltherighttoofferevidenceinoppositiontoasettlementorparticularcomponents,because there was no otherway to oppose a"results-focused"revenue requirement with sufficient support.Public Counsel also argues that this procedure may effectively prevent parties in future rate cases fromexercisingtheirrightstoopposesettlements.
On January 30,2023,the WUTC issued an orderdenying the Petition for Reconsideration,stating Public Counsel was afforded every opportunity to exercise its rights toopposethesettlement,and reiterated that the end results of the settlement producedrates that were equitable,fair,just,reasonableand sufficient.
The approved rates are designedto increase annual base electric revenues by $38.0 million (or 6.9 percent),effective in December 2022,and $12.5 million (or 2.1percent),effective in December 2023.The approved rates are designedto increase annual base natural gas revenues by $7.5 million (or 6.5 percent),effective inDecember2022,and $1.5 million (or 1.2 percent),effective in December2023.
To mitigate the overall impact of the revenue increases on customers,we will offset part of the 2022 base rate request with a tax customer credit.The total estimatedbenefitsofthiscredit,$27.6 million for electric customers and $12.5 million for natural gas customers,will be retumed over a two-year period from December 2022 toDecember2024.
In addition,the order approved a separate tracking mechanism and tariff for purposes of recovering existing and prospective Colstrip costs.
The WUTC approved an ROR on rate base of 7.03 percent,but the settlement does not specify an explicit ROE,cost of debt or capital structure.
These general rate cases require a subsequent review of capital pro|ects included in rates and a refund of revenues related to imprudent expenditures or those that are notusedanduseful.
2021 Idaho General Rate Cases
In September 2021,the IPUC approved the all party settlement agreement designedto increase annual base electric revenues by$10.6 million,or 4.3 percent,effectiveSeptember1,2021,and $8.0 million,or 3.1 percent,effective September 1,2022.For natural gas,the settlement agreement was designed to decreaseannual basenaturalgasrevenuesby$1.6 million,or 3.7 percent,effective September 1,2021,and increase annual base revenues by $0.9 million,or 2.2 percent,effective September1,2022.The parties agreed to use the tax customer credits,related to flow through of certain tax items,included in our original filing to offset overall proposed changes toratesoverthetwo-year plan.
The settlement was based on a 9.4 percent ROE with a common equity ratio of 50 percent and a ROR of 7.05 percent.
2021 Oregon GeneralRate Case
In January 2022,a partial settlement stipulation address¡ng cost of capital issues was filed with the OPUC in our natural gas general rate case filed in October 2021.ThepartiesagreedtoanoverallRORof7.05 percent based on a 50 percent common equity ratio and ROE of 9.4 percent.
In March 2022,a second settlement stipulation was filed with the OPUC that addressed,and resolved,all other remaining issues,and was subsequently approved by theOPUC.The settlement is designed for an overall revenue increase of $1.6 million,effective August 22,2022.The agreement was a "black box",with the only componentoftherevenuerequirementexplicitlystatedisthepreviously-agreed upon cost of capital.The parties also agreed that certain tax credits of approximately $3.0 million willbepassedthroughtocustomerstomitigatethebaserevenueincrease.
12.Effective September 1,2022,the following leadership changes occurred:
Heather Rosentrater,Senior Vice President,Energy Delivery and SharedServices,became Senior Vice President and Chief Operating
Officer.She nowoversees Energy Delivery,Energy Resources and Enterprise Technology.
Jason Thackston,Senior Vice President,Energy Resources and EnvironmentalCompliance Officer,became Senior Vice President and
Chief Strategy and CleanEnergy Officer.He now leads strategy,non-regulated investments,business transformation,clean energy,
environmental affairs,and innovation and growth.
Greg Hesler,Vice President,General Counsel,Corporate Secretaryand Chief Ethics/Compliance Officer,became Senior Vice President,
GeneralCounsel,Corporate Secretary and Chief Ethics/Compliance Officer.
Bryan Cox,Vice President,Safety and Human Resources,became Vice President,Safety and Chief People Officer.
Scott Kinney,Director of Energy Supply,became Vice President,Energy Resources.
Josh DiLuciano,Directorof Electrical Engineering,became VicePresident,Energy Delivery.
Ed Schlect,Chief Strategy Officer became Vice President,StrategyAdvisor.Schlect is partially retired and now works on a part time basis.
13.Proprietary capital is not less than 30 percent.
FERC FORM No.2 (12-96)
Page 108
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Comparative Balance Sheet (Assets And Other Debits)
eie me age Current Ÿear Ënd ofLireTitleofAccount Prior Year End Balance 12131NmberQuarterlYearBalances
2 Utility Plant (101-106,114)i 200-201 7,477,186,308 7,072,675,570
3 Construction Work in Progress (107)200-201 155,475,677 196,305,682
4 TOTAL Utility Plant (Total of lines 2 and 3)200-201 7,632,661,985 7,268,981,252
5 (Less)Accum.Provision for Depr.,Amort.,Depl 2,624,302,472 2,465,058,317(108,111,115)
6 Net Utility Plant (Total of line 4 less 5)5,008,359,513 4,803,922,935
7 Nuclear Fuel (120.1 thru 120.4,and 120.6)0 0
8 (Less)Accum.Provision for Amort.,of Nuclear 0 0FuelAssemblies(120.5)
9 Nuclear Fuel (Total of line 7 less 8)0 0
10 Net Utility Plant (Total of lines 6 and 9)5,008,359,513 4,803,922,935
11 Utility Plant Adjustments (116)122 0 0
12 Gas Stored-Base Gas (117.1)220 6,992,076 6,992,076
13 System Balancing Gas (117.2)220 0 0
14 Gas Stored in Reservoirs and Pipelines-220 0 0Noncurrent(117.3)
15 Gas Owed to System Gas (117.4)220 0 0
17 Nonutility Property (121)11,036,947 4,500,764
18 (Less)Accum.Provision for Depreciation and 103,609 247,981Amortization(122)
19 Investments in Associated Companies (123)222-223 11,547,000 11,547,000
20 Investments in Subsidiary Companies (123.1)224-225 260,760,970 225,965,713
22 Noncurrent Portion of Allowances O O
23 Other Investments (124)222-223 73,448 77,889
24 Sinking Funds (125)0 0
25 Depreciation Fund (126)0 0
26 Amortization Fund -Federal (127)0 0
27 Other Special Funds (128)11,797,054 11,152,367
28 Long-Term Portion of Derivative Assets (175)2,944,915 2,658,520
FERC FORM No.2 (REV 06-04)
Page 110
Comparative Balance Sheet (Assets And Other Debits)
Ñeieren e Rage Õurrent Ÿear Ëncl oŸLineTitleofAccount Prior YearEnd Balance 12131NumberQuarterNearBalanceNo.(a)(d)(b)(c)
29 Long-Term Portion of Derivative Assets -Hedges 0 0(176)
TOTAL Other Property and Investments (Total of30lines17-20,22-29)298,056,725 255,654,272
32 Cash (131)4,465,295 11,893,219
33 Special Deposits (132-134)66,141,689 21,477,352
34 Working Funds (135)776,205 1,227,292
35 Temporary Cash Investments (136)222-223 496,573 153,241
36 Notes Receivable (141)O 0
37 Customer Accounts Receivable (142)219,394,599 183,224,129
38 Other Accounts Receivable (143)67,155,969 50,330,014
39 (Less)Accum.Provision for Uncollectible 6,345,841 10,368,511Accounts-Credit (144)
40 Notes Receivable from Associated Companies 9,364,617 0(145)
Accounts Receivable from Associated41 787,177 738,517Companies(146)
42 Fuel Stock (151)4,252,607 4,388,454
43 Fuel Stock Expenses Undistributed (152)0 0
44 Residuals (Elec)and Extracted Products (Gas)0 0(153)
45 Plant Materials and Operating Supplies (154)73,453,924 60,277,408
46 Merchandise (155)0 0
47 Other Materials and Supplies (156)0 0
48 Nuclear Materials Held for Sale (157)0 0
49 Allowances (158.1 and 158.2)0 0
50 (Less)Noncurrent Portion of Allowances 0 0
51 Stores Expense Undistributed (163)0 0
52 Gas Stored Underground-Current (164.1)220 26,788,026 217,603,996
Liquefied Natural Gas Stored and Held for53 220 0 0Processing(164.2 thru 164.3)
54 Prepayments (165)230 28,311,482 22,973,644
55 Advances for Gas (166 thru 167)0 0
56 Interest and Dividends Receivable (171)621,880 20,633
FERC FORM No.2 (REV 06-04)
Page 110
Comparative Balance Sheet (Assets And Other Debits)
Ñeierence Page narrenfŸear Ënci ofLineTitleofAccount Prior YearEnd Balance 12/31NumberCluarterlYearBalanceNo.(a)(d)(b)(c)
57 Rents Receivable (172)4,556,651 3,665,325
58 Accrued Utility Revenues (173)0 0
59 Miscellaneous Current and Accrued Assets (174)230,226 113,893
60 Derivative Instrument Assets (175)21,142,956 4,056,941
61 (Less)Long-Term Portion of Derivative Instrument 2,944,915 2,658,520Assets(175)
62 Derivative Instrument Assets -Hedges (176)0 0
(Less)Long-Term Portion of Derivative Instrument63Assets-Hedges (176)0 0
64 TOTAL Current and Accrued Assets (Total of 518,649,120 369,117,027lines32thru63)
66 Unamortized Debt Expense (181)20,719,467 16,420,883
67 Extraordinary Property Losses (182.1)230 0 0
68 Unrecovered Plant and Regulatory Study Costs 230 0 0(182.2)
69 Other Regulatory Assets (182.3)232 912,434,228 833,162,908
70 Preliminary Survey and Investigation Charges 0 0(Electric)(183)
71 Preliminary Survey and Investigation Charges
O 0(Gas)(183.1 and 183.2)
72 Clearing Accounts (184)872,806 122,784
73 Temporary Facilities (185)0 0
74 Miscellaneous Deferred Debits (186)233 68,920,168 50,762,924
75 Deferred Losses from Disposition of Utility Plant 0 0(187)
76 Research,Development,and Demonstration 0 0Expend.(188)
77 Unamortized Loss on Reacquired Debt (189)6,177,054 6,768,288
78 Accumulated Deferred Income Taxes (190)234-235 269,470,612 256,362,574
79 Unrecovered Purchased Gas Costs (191)52,091,145 21,025,867
80 TOTAL Deferred Debits (Total of lines 66 thru 79)1,330,685,480 1,184,626,228
81 TOTAL Assets and Other Debits (Total of lines 7,162,742,914 6,620,312,53810-15,30,64,and 80)
"ERCFORMNo.2(REV06-04)
Page 110
FOOTNOTE DATA
£a)Concept:GasStoredCurrent
Fuel is accounted for within injections and withdrawal accounts.
AII gas reported is current working gas.Avista uses the inventory method to report all working gas stored.
FERC FORM No.2 (REV 0644)
Page 110
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)A Resubmission
Comparative Balance Sheet (Liabilities and Other Credits)
2 Common Stock Issued (201)250-251 1,481,787,168 1,341,011,707
3 Preferred Stock Issued (204)250-251 0 0
4 Capital Stock Subscribed (202,205)252 0 0
5 Stock Liability for Conversion (203,206)252 0 0
6 Premium on Capital Stock (207)252 0 0
7 Other Paid-In Capital (208-211)253 (10,696,711)(10,696,711)
8 Installments Received on Capital Stock (212)252 0 0
9 (Less)Discount on Capital Stock (213)254 0 0
10 (Less)Capital Stock Expense (214)254 (54,094,483)(49,837,072)
11 Retained Eamings (215,215.1,216)118-119 772,567,765 781,020,474
12 Unappropriated Undistributed Subsidiary 118-119 38,974,396 4,609,991Eamings(216.1)
13 (Less)Reacquired Capital Stock (217)250-251 0 0
14 Accumulated Other Comprehensive Income (219)117 (2,058,225)(11,038,551)
15 LOTALProprietary Capital (Total of lines 2 thm 2,334,668,876 2,154,743,982
17 Bonds (221)256-257 2,307,200,000 I 2,157,200,000
18 (Less)Reacquired Bonds (222)256-257 83,700,000 83,700,000
19 Advances from Associated Companies (223)256-257 51,547,000 51,547,000
20 Other Long-Term Debt (224)256-257 0 0
21 Unamortized Premium on Long-Term Debt (225)258-259 115,483 124,367
22 (Less)Unamortized Discounton Long-Tem 258-259 841,286 757,032Debt-Dr (226)
23 (Less)Current Portion of Long-Term Debt 0 0
24 TOTAL Long-Term Debt (Total of lines 17 thru 23)2,274,321,197 2,124,414,335
26 Obligations Under Capital Leases-Noncurrent 64,284,097 66,068,171(227)
27 Accumulated Provision for Property Insurance 0 0(228.1)
FERC FORM No.2 (REV 06-04)
Page 112
Comparative Balance Sheet (Liabilities and Other Credits)
Line Title of Account ÈeÌerencefage treniŸëarÈntÏõÏ Prior Yeat End Balance 12131NumberuartPNearBalance
28 Accumulated Provision for Injuries and Damages 1,320,000 731,009(228.2)
Accumulated Provision for Pensions and Benefits29(228.3)93,900,990 153,467,368
30 Accumulated Miscellaneous Operating 0 0Provisions(228.4)
31 Accumulated Provision for Rate Refunds (229)774,805 409,971
32 Long-Term Portion of Derivative Instrument 7,891,963 4,525,064Liabilities
33 Long-Term Portion of Derivative Instrument 0 0Liabilities-Hedges
34 Asset Retirement Obligations (230)15,783,066 17,141,793
35 TOTAL Other Noncurrent Liabilities (Total of lines 183,954,921 242,343,37626thru34)
37 Current Portion of Long-Term Debt 0 0
38 Notes Payable (231)463,000,000 284,000,000
39 Accounts Payable (232)195,759,919 127,662,676
40 Notes Payable to Associated Companies (233)0 1,404,714
41 Accounts Payable to Associated Companies 114 18,595(234)
42 Customer Deposits (235)6,929,872 3,702,706
43 Taxes Accrued (236)262-263 38,520,487 41,669,378
44 Interest Accrued (237)19,663,017 16,347,042
45 Dividends Declared (238)0 0
46 Matured Long-Term Debt (239)0 0
47 Matured Interest (240)0 0
48 Tax Collections Payable (241)202,211 137,825
49 Miscellaneous Current and Accrued Liabilities 268 84,650,630 69,109,875(242)
50 Obligations Under Capital Leases-Current (243)4,348,776 4,300,958
51 Derivative Instrument Liabilities (244)34,802,627 33,326,256
52 (Less)Long-Term Portion of Derivative Instrument 7,891,963 4,525,064Liabilities
53 Derivative Instrument Liabilities -Hedges (245)0 0
54 (Less)Long-Term Portion of Derivative Instrument 0 0Liabilities-Hedges
FERC FORM No.2 (REV 06-04)
Page 112
Comparative Balance Sheet (Liabilities and Other Credits)
---
Reference Page Current Year End ofLineTitleofAccount Prior YearEnd Balance 12131NumberQuarterlYearBalanceNo.(a)(d)(b)(c}
TOTAL Current and Accrued Liabilities (Total of55 839,985,690 577,154,961lines37thru54)
57 Customer Advances for Construction (252)4,211,506 |3,624,489
Accumulated Deferred Investment Tax Credits58 28,784,445 29,313,176(255)
59 Deferred Gains from Disposition of Utility Plant 0 0(256)
60 Other Deferred Credits (253)269 48,402,602 30,183,652
61 Other Regulatory Liabilities (254)278 525,409,545 571,662,225
62 Unamortized Gain on Reacquired Debt (257)260 1,059,748 1,189,285
63 Accumulated Deferred Income Taxes -
0 0AcceleratedAmortization(281)
Accumulated Deferred Income Taxes -Other64 636,821,685 618,900,933Property(282)
Accumulated Deferred Income Taxes -Other65 285,122,699 266,782,124(283)
66 TOTAL Deferred Credits (Total of lines 57 thru 65)1,529,812,230 1,521,655,884
67 TOTAL Liabilities and Other Credits (Total of lines 7,162,742,914 6,620,312,53815,24,35,55,and 66)
ERC ¯ORM No.2 (REV 06-04)
Page 112
This report is:
Name of Respondent:(1)2 An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Statement of Income
2 Gas Operating Revenues (400)300-301 1,753,175,600 1,495,585,923
4 Operation Expenses (401)317-325 1,115,606,858 865,148,582
5 Maintenance Expenses (402)317-325 90,443,526 80,137,861
6 Depreciation Expense (403)336-338 185,002,792 177,443,227
7 Depreciation Expense for Asset 336-338 0 0RetirementCosts(403.1)
Amort.&Depl.of Utility Plant8 336-338 56,467,917 53,212,301(404405)
9 Amortization of Utility Plant Acu 336-338 0 99,047Adjustment(406)
Amort.of Prop.Losses,
10 Unrecovered Plant and Reg.0 0
Study Costs (407.1)
11 Amortization of Conversion 0 0Expenses(407.2)
12 Regulatory Debits (407.3)18,495,696 14,824,439
13 (Less)Regulatory Credits (407.4)49,733,468 52,533,715
14 Taxes Other Than Income Taxes 262-263 121,401,780 116,909,168(408.1)
15 Income Taxes-Federal (409.1)262-263 (1,018,866)846,571
16 Income Taxes-Other (409.1)262-263 789,848 876,303
17 Provision of Deferred Income 234-235 40,312,733 151,017,644Taxes(410.1)
18 (Less)Provision for Deferred 234-235 64,172,849 144,624,499IncomeTaxes-Credit (411.1)
Investment Tax Credit19 (528,730)(553,452)Adjustment-Net (411.4)
20 (Less)Gains from Disposition of 0 0UtilityPlant(411.6)
21 Losses from Disposition of Utility 0 0Plant(411.7)
22 (Less)Gains from Disposition of 0 0Allowances(411.8)
FERC FORM No.2 (REV 06-04)
Page 114
Statement of Income
23 Losses from Disposition of 0 0Allowances(411.9)
24 Accretion Expense (411.10)0 0
TOTAL Utility Operating
25 Expenses (Total of lines 4 thru 1,513,067,237 1,262,803,477
24)
26 Net Utility Operating Income 240,108,363 232,782,446(Total of lines 2 less 25)
28 OTHER INCOME AND
DEDUCTIONS
31 Revenues From Merchandising,
OJobbingandContractWork(415)
(Less)Costs and Expense of
32 Merchandising,Job &Contract 0 0
Work (416)
33 Revenues From Nonutility 75,755 299,756Operations(417)
34 (Less)Expenses of Nonutility 11,488,060 5,295,279Operations(417.1)
35 Nonoperating Rental Income (6,089)(31,838)(418)
36 Equity in Eamings of Subsidia 119 39,795,257 23,555,382Companies(418.1)
37 Interest and Dividend Income 2,112,087 3,650,892(419)
38 Allowance for Other Funds Used 804,751 589,900DuringConstruction(419.1)
39 Miscellaneous Nonoperating 0 0Income(421)
40 Gain on Disposition of Property 1,747,858 109,527(421.1)
41 TOTAL Other Income (Total of 33,041,559 22,878,340lines31thru40)
43 Loss on Disposition of Property 0 0(421.2)
44 Miscellaneous Amortization 5,616 5,616(425)
45 Donations (426.1)340 2,832,367 2,499,499
FERO FORM No.2 (REV 06-04)
Page 114
46 Life Insurance (426.2)3,588,360 3,591,498
47 Penalties (426.3)24,039 22,039
Expenditures for Certain Civic,
48 Political and Related Activities 1,731,972 1,935,266
(426.4)
49 Other Deductions (426.5)4,469,119 4,448,958
TOTAL Other Income Deductions50 340 12,651,473 12,502,876(Total of lines 43 thru 49)
Taxes Applic.to Other Income
51 and Deductions
Taxes Other Than Income Taxes52 262-263 670,496 564,779(408.2)
53 Income Taxes-Federal (409.2)262-263 (478,795)(1,628,247)
54 Income Taxes-Other (409.2)262-263 (668,970)(472,315)
55 Provision for Deferred Income 234-235 1,568,707 3,042,777Taxes(410.2)
56 (Less)Provision for Deferred 234-235 4,155,913 2,944,321IncomeTaxes-Credit (411.2)
Investment Tax Credit57 0 0Adjustments-Net (411.5)
58 (Less)Investment Tax Credits
(420)
TOTAL Taxes on Other Income
59 and Deductions (Total of lines (3,064,475)(1,437,327)
52-58)
Net Other Income and
60 Deductions (Total of lines 41,50,23,454,561 11,812,791
59)
62 Interest on Long-Term Debt (427)99,558,755 91,728,400
Amortization of Debt Disc.and63 258-259 470,608 941,948Expense(428)
64 Amoltization of Loss on 1,433,640 1,592,056ReacquiredDebt(428.1)
(Less)Amortization of Premium65 258-259 8,883 8,883onDebt-Credit (429)
66 (Less)Amortization of Gain on
Reacquired Debt-Credit (429.1)
Interest on Debt to Associated67 340 1,062,531 515,447Companies(430)
FERC FORM No.2 (REV 06-04)
Page 114
68 Other Interest Expense (431)340 9,696,574 4,860,055
(Less)Allowance for Borrowed
69 Funds Used During 3,826,333 2,367,356
Construction-Credit (432)
70 Net Interest Charges (Total of 108,386,892 97,261,667lines62thru69)
Income Before Extraordinary
71 Items (Total of lines 27,60 and 155,176,032 147,333,570
70)
73 Extraordinary Income (434)0 0
74 (Less)Extraordinary Deductions
(435)
75 Net Extraordinary Items (Total of 0 0line73lessline74)
76 Income Taxes-Federal and Other 262-263 0 0(409.3)
Extraordinary Items after Taxes77(line 75 less line 76)0 0
78 Net Income (Total of line 71 and 155,176,032 147,333,57077)
FERC FORM No.2 (REV 06-04)
Page 114
Statement of Income
1
2 1,167,462,735 1,022,015,983 585,712,865 473,569,940
3
4 702,986,085 557,603,571 412,620,773 307,545,011
5 73,669,737 64,169,603 16,773,789 15,968,258
6 142,463,452 136,516,432 42,539,340 40,926,795
7 0 0 0 0
8 42,661,543 39,430,494 13,806,374 13,781,807
9 0 99,047 0 0
10
11 0 0 0 0
12 12,678,285 9,015,832 5,817,411 5,808,607
13 44,548,411 46,406,409 5,185,057 6,127,306
14 86,410,192 87,398,430 34,991,588 29,510,738
15 (3,578,734)(1,109,426)2,559,868 1,955,997
16 (43,263)30,939 833,111 845,364
17 29,270,294 88,830,716 11,042,439 62,186,928
18 46,062,769 83,402,751 18,110,080 61,221,748
19 (528,748)(548,446)18 (5,006)
20
21
22
23
24
25 995,377,663 851,628,032 517,689,574 411,175,445 0 0
26 172,085,072 170,387,951 68,023,291 62,394,495 0 0
28
29
30
31
32
33
FERC FORM No.2 (REV 06-04)
Page 114
Statement of Income
-
-
---
FERC FORM No.2 (REV 06-04)
Page 114
E--
FERC FORM No.2 (REV 06-04)
Page 114
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Statement of Accumulated Comprehensive Income and Hedging Activities
1.Report in columns (b)(c)and (e)the amounts of accumulated other comprehensive income items,on a net-of-tax basis,where appropriate.
2.Report in columns (f)and (g)the amounts of other categories of other cash flow hedges.
3.For each category of hedges that have been accounted for as "fair value hedges",report the accounts affected and the related amounts in afootnote.
Balance ofAccount219 at
1 (14,378,164)(14,378,164)Beginning of
Preceding Year
Preceding
Quarter/Year to
Date
2 Reclassifications
from Account
219 to Net
Income
Preceding
Quarter/Year to3 3,339,613 3,339,613DateChangesin
Fair Value
4 Total (lines 2 and 3,339,613 3,339,613 147,333,570 150,673,1833)
Balance of
Account 219 at
5 End of (11,038,551)(11,038,551)
Preceding
Quarter/Year
Balance of
Account 219 at6 (11,038,551)(11,038,551)Beginning of
Current Year
Current
Quarter/Year to
Date
7 Reclassifications
from Account
219 to Net
Income
Current
Quarter/Year to8 8,980,326 8,980,326DateChangesin
Fair Value
9 tal (lines 7 and 8,980,326 8,980,326 155,176,032 164,156,358
FERC FORM No.2 (NEW 06-02)
Page 117
Statement of Accumulated Comprehensive Income and Hedging Activities
FERC FORM No.2 (NEWO6-02)
Page 117
This report is:Year/Period of Report:Date of Report:Na oCoRespadndnent:(1)O An Original 04/18/2023 End of 2022/Q4(2)A Resubmission
Statement of Retained Earnings
1 Balance-Beginning of Period 729,502,158 726,160,557
2 Changes (Identify by prescribed retained
eamings accounts)
4 Adjustments to Retained Eamings Credit (Debit)
6 Balance Transferred from Income (Account 433 115,380,775lessAccount418.1)
7 Appropriations of Retained Eamings (Account
436)
7.1 Excess Eamings (3,539,494)(6,065,368)
8 Appropriations of Retained Eamings Amount
9 Dividends Declared-Preferred Stock (Account
437)
10 Dividends Declared-Preferred Stock Amount
11 Dividends Declared-Common Stock (Account
438)
11.1 Dividends (129,264,336)(119,739,230)
12 Dividends Declared-Common Stock Amount
13 Transfers from Account 216.1,Unappropriated 5,430,852 5,368,011UndistributedSubsidiaryEamings
14 Balance-End of Period (Total of lines 1,4,5,6,8,717,509,955 729,502,15810,12,and 13)
15 APPROPRIATED RETAINED EARNINGS
(Account 215)
16 TOTAL Appropriated Retained Eamings 55,057,810 51,518,316(Account 215)(footnote details)
APPROPRIATED RETAINED EARNINGS-
17 AMORTIZATIONRESERVE,FEDERAL
(Account215.1)
18 TOTAL Appropriated Retained Eamings-
Amortization Reserve,Federal (Account 215.1)
TOTAL Appropriated Retained Eamings
19 (Accounts 215,215.1)(Total of lines of 16 and 55,057,810 51,518,316
18)
20 TOTAL Retained Eamings (Accounts 215,215.1,772,567,765 781,020,474216)(Total of lines 14 and 19)
FERC FORM No.2 (REV 06-04)
Page 118
Statement of Retained Earnings
UNAPPROPRIATED UNDISTRIBUTED21SUBSIDIARYEARNINGS(Account216.1)
Report only on an Annual Basis no Quarterly
22 Balance-Beginning of Year (Debit or Credit)4,609,991 (13,577,380)
23 4E18ityin Earnings for Year (Credit)(Account 39,795,257 23,555,382
24 (Less)Dividends Received (Debit)5,000,000 5,000,000
25 Other Changes (Explain)(430,852)(368,011)
25.1 Corporate Costs Allocated to Subsidiaries (430,852)(368,011)
26 Balance-End of Year 38,974,396 4,609,991
FERC FORM No.2 (REV 06-04)
Page 118
This report is:Year/Period of Report:Date of Report:Name of Respondent:(1)O An Original 04/18/2023AvistaCorporation End of:2022/Q4(2)A Resubmission
Statement of Cash Flows
Previus Ÿear to ÕateDescriptiõn(See Instructions for explanation.ofcodes)'CurrentYear to Date QuarterlYear,Line No..Quader/Year
2 Net Income (Line 78(c)on page 114)155,176,032 147,333,570
4 Depreciation and Depletion 241,470,709 230,655,529
5 Amortization of (Specify)(footnote details)
Amortization of deferred power and gas costs,debt5.1 (75,986,952)(50,052,091)expense and exchange power
6 Deferred Income Taxes (Net)(26,131,896)6,486,442
7 Investment Tax Credit Adjustments (Net)(528,731)(553,451)
8 Net (Increase)Decrease in Receivables (57,081,996)(25,394,061)
9 Net (Increase)Decrease in Inventory (22,224,699)(16,791,851)
10 Net (Increase)Decrease in Allowances Inventory
Net Increase (Decrease)in Payables and Accrued11 83,122,813 36,379,201Expenses
12 Net (Increase)Decrease in Other Regulatory Assets 583,561 (12,914,300)
13 Net Increase (Decrease)in Other Regulatory Liabilities 10,248,033 (219,421)
(Less)Allowance for Other Funds Used During14 6,543,085 6,923,631Construction
15 (Less)Undistributed Eamings from Subsidiary 39,795,257 23,555,382Companies
16 Other Adjustments to Cash Flows from Operating
Activities
16.1 Power and natural gas deferrals (1,797,792)544,574
16.2 Change in special deposits (141,014,015)(17,564,058)
16.3 Change in other current assets (6,946,745)2,703,327
16.4 Non-cash stock compensation 8,716,734 4,712,916
16.5 Gain on sale of property and equipment (1,747,858)(109,527)
16.6 Other 1,378,349 1,171,392
16.7 Allowance for Doubtful Accounts 3,545,696 4,134,701
16.8 Changes in other non-current asset 6,069,824 (4,576,245)
16.9 Cash settlement of interest rate swaps (17,035,230)(17,244,100)
Net Cash Provided by (Used in)Operating Activities (Total18 113,477,495 258,223,534ofLines2thru16)
FERCF RMNo.2(REVO6-04)
Page 120
Statement af Cash Flows
20 Cash Flows from Investment Activities:
21 Construction and Acquisition of Plant (including and):
22 Gross Additions to Utility Plant (less nuclear fuel)(449,340,115)(441,862,369)
23 Gross Additions to Nuclear Fuel
24 Gross Additions to Common Utility Plant
25 Gross Additions to Nonutility Plant
26 (Less)Allowance for Other Funds Used During
Construction
27 Œher Construction and Acquisition of Plant,Investment
Activities
28 Cash Outflows for Plant (Total of lines 22 thru 27)(449,340,115)(441,862,369)
30 Acquisition of Other Noncurrent Assets (d)
31 Proceeds from Disposal of Noncurrent Assets (d)1,913,172 923,995
33 Investments in and Advances to Associated and (10,836,472)(7,338,616)Subsidiary Companies
34 Contributions and Advances from Associated and 5,000,000 5,000,000SubsidiaryCompanies
36 Disposition of Investments in (and Advances to)
Associated and Subsidiary Companies
38 Purchase of Investment Securities (a)
39 Proceeds from Sales of Investment Securities (a)
40 Loan Made or Purchased
41 Collections on Loans
43 Net (Increase)Decrease in Receivables
44 Net (Increase)Decrease in Inventory
45 Net (Increase)Decrease in Allowances Held for
Speculation
46 Net increase (Decrease)in Payables and Accrued
Expenses
47 Other Adjustments to Cash Flows from Investment
Activities:
47.1 Changes in other property and investments 1,820,492 (45,145)
49 Net Cash Provided by (Used in)Investing Activities (Total (451,442,923)(443,322,135)of lines 28 thru 47)
51 Cash Flows from Financing Activities:
53 Proceeds from Issuance of Long-Term Debt (b)399,856,000 140,000,000
FERC FORM No.2 (REV 06-04)
Page 120
Statement of Cash Flows
54 Proceeds from Issuance of Preferred Stock
55 Proceeds from Issuance of Common Stock 137,778,394 89,997,928
56 Net Increase in Debt (Long Term Advances)
57 Net Increase in Short-term Debt (c)179,000,000 82,000,000
59 5C8ashProvided by Outside Sources (Total of lines 53 thru 716,634,394 311,997,928
62 Payments for Retirement of Long-Term Debt (b)(250,000,000)
63 Payments for Retirement of Preferred Stock
64 Payments for Retirementof Common Stock (141,494)
65 Other Retirements
65.1 Other U(7,143,646)(3,905,992)
66 Net Decrease in Short-Term Debt (c)
67 Other Adjustments to Financing Cash Flows
68 Dividends on Preferred Stock
69 Dividends on Common Stock (129,060,998)(118,210,572)
70 Net Cash Provided by (Used in)Financing Activities 330,429,750 189,739,870(Total of lines 59 thru 69)
74 (Total of line 18,49 and 71)(7,535,678)4,641,269
76 Cash and Cash Equivalents at Beginning of Period 13,273,752 8,632,483
78 Cash and Cash Equivalents at End of Period 5,738,074 13,273,752
FERC FORM No.2 (REV 06-04)
Page 120
This report is:Year/Period of Report:Name of Respondent:(1)O An Original Date of Report:
Avista Corporation 04/18/2023
(2)Ü A Resubmission End of:2022/Q4
FOOTNOTE DATA
fa)Concept:OtherRetirementsOfBalanceslmpactingCashFlowsFromFinancingActivities
Debt Issuance costs (5,681,390);Minimum tax withholdings (1,462,256)
FERC FORM No.2 (REV 06-04)
Page 120
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Notes to Financial Statements
1.Provide important disclosures regarding the Balance Sheet,Statement of Income for the Year,Statement of Retained Eamings for the
Year,and Statementof Cash Flow,or any account thereof.Classify the disclosures according to each financial statement,providing asubheadingforeachstatementexceptwhereadisclosureisapplicabletomorethanonestatement.The disclosures must be on the
same subject matters and in the same level of detail that would be required if the respondent issued general purpose financial
statements to the public or shareholders.
2.Fumish details as to any significant contingent assets or liabilities existing at year end,and briefly explain any action initiated by theIntemalRevenueServiceinvolvingpossibleassessmentofadditionalincometaxesofmaterialamount,or a claim for refund of income
taxes of a material amount initiated by the utility.Also,briefly explain any dividends in arrears on cumulative preferred stock.
3.Fumish details on the respondent's pension plans,post-retirement benefits other than pensions (PBOP)plans,and post-employment
benefit plans as required by instruction no.1 and,in addition,disclose for each individual plan the current year's cash contributions.
Fumish details on the accounting for the plans and any changes in the method of accounting for them.Include details on the
accounting for transition obligations or assets,gains or losses,the amounts deferred and the expected recovery periods.Also,disclose any current year's plan or trust curtailments,terminations,transfers,or reversions of assets.Entities that participate in
multiemployer postretirement benefit plans (e.g.parent company sponsored pension plans)disclose in addition to the required
disclosures for the consolidated plan,(1)the amount of cost recognized in the respondent's financial statements for each plan for the
period presented,and (2)the basis for determining the respondent's share of the total plan costs.
4.Fumish details on the respondent's asset retirement obligations (ARO)as required by instruction no.1 and,in addition,disclose the
amounts recovered through rates to settle such obligations.Identify any mechanism or account in which recovered funds are being
placed (i.e.trust funds,insurance policies,surety bonds).Fumish details on the accounting for the asset retirement obligations and
any changes in the measurementor method of accounting for the obligations.Include details on the accounting for settlement of the
obligations and any gains or losses expected or incurred on the settlement.
5.Provide a list of all environmental credits received during the reporting period.
6.Provide a summary of revenues and expenses for each tracked cost and special surcharge.
7.Where Account 189,Unamortized Loss on Reacquired Debt,and 257,Unamortized Gain on Reacquired Debt,are not used,give an
explanation,providing the rate treatment given these item.See General Instruction 17 of the Uniform System of Accounts.
8.Explain concisely any retained eamings restrictions and state the amount of retained earnings affected by such restrictions.
9.Disclose details on any significant linancial changes during the reporting year to the respondent or the respondent's consolidated
group that directly affect the respondent's gas pipeline operations,including:sales,transfers or mergers of affiliates,investments in
new partnerships,sales of gas pipeline facilities or the sale of ownership interests in the gas pipeline to limited partnerships,investments in related industries (i.e.,production,gathering),major pipeline investments,acquisitions by the parent corporation(s),anddistributionsofcapital.
10.Explain concisely unsettled rate proceedings where a contingency exists such that the company may need to refund a material
amount to the utility's customers or that the utility may receive a material refund with respect to power or gas purchases.State for each
year affected the gross revenues or costs to which the contingency relates and the tax effects and explain the major factors that affect
the rights of the utility to retain such revenues orto recover amounts paid with respect to power and gas purchases.
11.Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding
affecting revenues received or costs incurred for power or gas purchases,and summarize the adjustments made to balance sheet,
income,and expense accounts.
12.Explain concisely only those significant changes in accounting methods made during the year which had an effect on net income,
including the basis of allocations and apportionments from those used in the preceding year.Also give the approximate dollar effect of
such changes.
13.For the 3Q disclosures,respondent must provide in the notes sufficient disclosures so as to make the interim information not
misleading.Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may
be omitted.
14.For the 3Q disclosures,the disclosures shall be provided where events subsequent to the end of the most recent year have occurred
which have a material effect on the respondent.Respondent must include in the notes significant changes since the most recently
completed year in such items as:accounting principles and practices;estimates inherent in the preparation of the financial statements;
status of long-term contracts;capitalization including significant new borrowings or modifications of existing financing agreements;andchangesresultingfrombusinesscombinationsordispositions.However were material contingencies exist,the disclosure of such
matters shall be provided even though a significant change since year end may not have occurred.
15.Finally,if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are
applicable and fumish the data required by the above instructions,such notes may be included herein.
NOTESTO FINANCIAL STATEMENTS
NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
Nature ofBusiness
Avista Corp.(the Company)is primarily an electric and natural gas utility with certain other business ventures.Avista Coip.provides electric distribution and transmission,andnaturalgasdistributionservicesinpartsofeastemWashingtonandnorthemIdaho.Avista Corp.also provides natural gas distribution service in parts ofnortheastem and southwestemOregon.Avista Corp.has electric generating facilities in Washington,Idaho,Oregon and Montana.Avista Corp.also supplies electricity to a small numberof customers in Montana,most ofwhom are employees who operate the Company's Noxon Rapids generating facility.
Alaska Electric and Resource Company (AERC)is a whollyowned subsidiary of Avista Corp.The primary subsidiary ofAERC is Alaska Electric Light and Power(AEL&P),whichcomprisesAvistaCorp.'s regulated utility operations in Alaska.
Avista Capital,a wholly owned non-regulated subsidiary ofAvista Corp.,is the parent company ofall ofthe subsidiary companies except AERC (and its subsidiaries).
Basis ofReporting
The financial statements include the assets,liabilities,revenues and expenses ofthe Company and have been prepared in accordance with the accounting requirements ofthe Federal
Energy Regulatory Commission (FERC)as set forth in its applicable Unifonn Systems of Accounts and published accounting releases,which is a comprehensive basis of accountingotherthanaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(U.S.GAAP).As required by the FERC,the Company accounts for its investment in majority
owned subsidiaries on the equity method rather than consolidatingthe assets,liabilities,ævenues and expenses ofthese subsidiaries as required by U.S.GAAP.The accompanying
financial statements includethe Company's proportionateshareof utility plant and related opemtions resulting from its interests in jointly owned plants.In addition,under the
requirements ofthe FERC,there are differences fromU.S.GAAPinthe pæsentation of(l)current portion oflong-term debt,(2)assets and liabilities for cost ofremoval of assets,(3)
assets held for Sale,(4)regulatory assets and liabilities,(5)deferred income taxes associated with accounts other than utilityproperty,plant and equipment,(6)comprehensive income,
(7)unamortized debt issuance costs,(8)operating revenues and resource costs associated with settled energy contracts that are "booked out",(9)non-service portion ofpension and
other postretirement benefit costs,and (10)leases.
Use ofEstimates
The preparation ofthe financial statements in conformity with GAAPrequires management to make estimates and assumptions that affect the amounts reported for assets and liabilities
and the disclosure ofcontingent assets and liabilities at the date ofthe financial statements and the reported amounts ofrevenues and expenses duringthe reportingperiod.Significant
estimates include:
determining the market value of energy commodity derivative assets and liabilities,
pension and otherpostætirement benefit plan obligations,
contingent liabilities,
goodwill impainnent testing,
recoverability ofregulatory assets,and
unbilledrevenues.
Changes in these estimates and assumptions are considered reasonably possible and may have a material effect on the financial statements and thus actual results could differ from the
amounts reported and disclosed herein.
System of Accounts
The accounting records ofthe Company's utility operations are maintained in accordance with the uniform system of accounts prescribed by the FERC and adopted by the state
regulatory commissions in Washington,Idaho,Montanaand Oregon.
Regulation
The Company is subject to state regulationin Washington,Idaho,Montana,Oregon and Alaska.The Company is also subject to federal regulationprimarily by the FERC,as well as
various other federal agencies with regulatory oversight ofparticular aspects ofits operations.
Depreciation
For utility operations,depreciation expense is estimated by a method of depreciation accounting utilizing composite rates for utility plant.Such rates are designed to provide for
retirements ofpropetties at the expiration oftheir service lives.Forutility operations,the ratio ofdepreciationprovisions to average depreciable property was as follows for the yeais
ended December 31:
2022 2021
Avista Corp.
Ratio of depreciation to average depreciable property 3.50%3.54%
The average service lives for the following broad categories of utility plant in service are (in yeais):
Electric thermallotherproduction 26
Hydroelectric production 79
Electric transmission 50
Electric distribution 39
Natural gas distribution property 44
Othershorter-lived general plant 8
Allowancefor Funds UsedDuring Construction (AFUDC)
AFUDC represents the cost ofboth the debt and equity funds used to finance utility plant additions duringthe construction period.As prescribed by regulatory authorities,AFUDC iscapitalizedasapartofthecostofutilityplant.The debt component ofAFUDC is credited against total interest expense in the Statements of Income in the line item "capitalized
interest."The equity component ofAFUDC is included in the Statements ofIncome in the line item "other income-net."The Company is permitted,under established regulatory rate
practices,to recover the capitalizedAFUDC,and a reasonable retum thereon,through its inclusion in rate baseand the provision for depreciation after the related utility plant is
placed in service.Cash inflow related to AFUDC does not occuruntil the related utility plant is placed in service and included in mte base.
The WUTC and IPUC have authorized Avista Corp.to calculate AFUDC using its allowedrate ofretum.To the extent amounts calculated using this rate exceed the AFUDC amounts
calculated using the FERC formula,Avista Corp.capitalizes the excess as a regulatory asset.The ægulatory asset associated with plant in service is amortized over the average useful
life of Avista Corp.'s utilityplant whichis approximately 30 years.The regulatory asset associated withconstruction work in progress is not amortized until the plant is placed in
service.
The effective AFUDC rate was the following for the years ended December 31:
2022 2021
Avista Corp.7.12%7.19%
Income Taxes
Deferred income tax assets represent future income tax deductions the Company expects to utilize in future tax retums to reduce taxable income.Deferred income tax liabilities
represent future taxable income the Company expects to recognize in future tax retums.Deferred tax assets and liabilities arise when there are temporary differences resulting from
differing tæatment ofitems for tax and accounting purposes.Adeferred income tax asset or liabilityis determined basedon the enacted tax rates that will be in effect when the
temporary differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company's income tax retums.
The effect on deferred income taxes from a change in tax rates is æcognized in income in the period that includes the enactment date unless a regulatory order specifies deferral ofthe
effect ofthe change in tax ratesover a longerperiod oftime.The Company establishes a valuation allowance when it is more likely than not that all,or a portion,ofa deferred tax
asset will not be realized.Deferred income tax assets and liabilities and regulatory assets and liabilities am established for income tax benefits flowed through to customers.
The Company's largest deferred income tax item is the difference between the book and tax basis ofutility plant.This item results from the temporaiy difference on depreciation
expense.In early tax years,this item is recorded as a deferred income tax liabilitythat will eventually revene and become subject to income tax in later tax years.
The Company did not incur any penalties on income tax positions in 2022 or2021.The Company wouldrecognize interest accrued related to income tax positions as interest expense
and any penalties incurred as other operating expense.
Stock-Based Compensation
The Company currently issuesthree types ofstock-based compensation awards -restricted shares,market-based awards and performance-based awards.Historically,these stock
compensation awards have not been material to the Company's overall financial results.Compensation cost relating to share-based payment transactions is recognized in the
Company's financial statements based on the fair value ofthe equity instruments issued and æcorded over the requisite service period.
The Company recorded stock-based compensation expense (includedin other operating expenses)and income tax benefits in the Statements of Income ofthe following amounts for
the years ended December 31 (dollars in thousands):
2022 2021Stock-based compensation expense $7,567 $4,713Incometaxbenefits1,589 990
Excess tax expenses on settled share-based employee
payments (19 )(909 )
Restricted shareawards vest in equal thirds eachyear over 3 years and are payable in Avista Corp.common stock at the end ofeach year ifthe service condition is met.RestrictedstockisvaluedatthecloseofmarketoftheCompany's common stock on the grant date.
Total ShareholderRetum (TSR)awards are market-based awards and Cumulative Eamings PerShare (CEPS)awards are performance awards.Both types of awards vest after a period of
3 years and are payable in cash or Avista Corp.common stock at the end ofthe three-yearperiod.The method of settlement is at the discretion ofthe Company and historically the
Company has settled these awards through issuance ofAvista Corp.common stock and intends to continue this practice.Both types of awards entitle the recipients to dividend
equivalent rights,are subject to forfeiture under certain cimumstances,and are subject to meeting specific market or performance conditions.Based on the level of attainment ofthe
market or performance conditions,the amount of cashpaid or common stock issued will range from 0 to 200 percent ofthe initial awards granted.Dividend equivalent rights are
accumulated and paid out only on shares that eventually vest and have met the market and performance conditions.
The Company accounts for both the TSR awards and CEPS awards as equity awards and compensation cost for these awards is æcognized over the requisite service period,provided
that the æquisite service period is rendered.For TSR awards,ifthe market condition is not met at the end ofthe three-yearservice period,there will be no change in the cumulative
amount ofcompensation cost recognized,since the awards are still considered vested even though the market metric was not met.For CEPSawards,at the end ofthe three-year serviceperiod,ifthe intemal performance metric of cumulative eamings per share is not met,all compensation cost for these awards is reversed as theseawards are not considered vested.
The fairvalue ofeach TSR award is estimated on the date of grant using a statistical model that incorporates the probability of meeting the market targets based on historical retumsrelativetoapeergroup.The estimated fair value ofthe CEPS awards was estimated on the date of grant as the share price ofAvista Corp.common stock on the date of grant.
The following table summarizes the number of grants,vested and unvested shares,eamed shares (based on market metrics),and other pertinent information related to the Company's
stock compensation awards for the years ended December 31:
2022 2021
Restricted Shares
Sharesgranted during the year 115,746 62,594
Sharesvested duringthe year 44,829 34,854
Unvested sharesat end ofyear 157,860 96,127
Unrecognized compensation expense at end of year
(in thousands)$3,923 $2,215
TSR Awards
TSR shams granted duringthe year 69,814 64,910
TSR sharesvested during the year 43,730 77,174
TSR shares earned based on market metrics 48,890 58,652
Unvested TSR shares at end ofyear 130,567 107,854
Unrecognized compensation expense at end of year
(in thousands)$3,533 $2,653
CEPS Awards
CEPS sharesgranted during the year 69,814 64,910
CEPS shares vested during the year 43,730 38,590
CEPS shares eamed based on market metrics 26,627
Unvested CEPS sharesat end ofyear 130,567 107,854
Unrecognized compensation expense at end of year
(in thousands)$2,471 $1,223
Outstanding restricted,TSR and CEPS sham awards includea dividend component that is paid in cash.Aliability for the dividends payable related to these awards is accrued as
dividends are announced throughoutthe life ofthe award.As ofDecember 31,2022 and 2021,the Company had recognized a liability of $1.7 millionand $1.5 million,respectively,
related to the dividendequivalents payable on the outstanding and unvested sharegrants.
Cash and CashEquivalents
For the purposes ofthe Statements of Cash Flows,the Company considers all temporary investments with a maturity ofthree months or less when purchased to be cash equivalents.
Allowancefor Doubtful Accounts
The Company maintains an allowance for doubtful accounts to provide for estimated and potential losses on accounts receivable.The Company determines the allowance for utilityandothercustomeraccountsreceivablebasedonhistoricalwrite-offs as compared to accounts receivable and operating revenues.Additionally,the Company establishes specific
allowances for certain individual accounts.Utility Plant in Service
The cost of additions to utility plant in service,including AFUDC and replacements of units ofproperty and improvements,is capitalized.The cost ofdepreciable units ofpropertyætiredplusthecostofremovallesssalvageischargedtoaccumulateddepreciation.
Asset Retirement Obligations(ARO)
The Company records the fair value ofa liabilityfor an ARO in the period in which it is incurred.When the liabilityis initially recorded,the associated costs ofthe ARO arecapitalizedaspartofthecarryingamountoftherelatedlong-lived asset.The liabilityis accreted to its present value eachperiod and the related capitalizedcosts are depreciated overtheusefullifeoftherelatedasset.In addition,ifthere are changes in the estimated timing or estimated costs ofthe AROs,adjustments are recorded duringthe periodnew informationbecomesavailableasanincreaseordecreasetotheliability,with the offset recorded to the related long-lived asset.Upon retirement ofthe asset,the Company either settles the AROforitsrecordedamountorrecognizesaregulatoryassetorliabilityforthedifference,which will be surcharged/refunded to customers through the ratemaking process.The CompanyæcordsregulatolyassetsandliabilitiesforthedifferencebetweenassetretirementcostscurrentlyrecoveredinratesandAROsrecordedsinceassetretirementcostsarerecovered
through rates charged to customers (see Note 6 for further discussion ofthe Company's AROs).
Derivative Assets and Liabilities
Derivatives are recorded as either assets or liabilities on the Balance Sheetsmeasured at estimated fair value.
The Washington Utilities and Transportation Commission (WUTC)and the Idaho Public Utilities Commission (IPUC)issued accounting orders authorizingAvista Corp.to offsetenergycommodityderivativeassetsorliabilitieswitharegulatoryassetorliability.This accounting treatment is intended to defer the recognitionofmark-to-market gains and lossesonenergycommoditytransactionsuntiltheperiodofdelivery.Realized benefits and costsresult in adjustments to retail rates through Purchase Gas Adjustments (PGAs),the Energy
Recovery Mechanism (ERM)in Washington,the Power Cost Adjustment (PCA)mechanismin Idaho,and periodic general ratescases.The resulting regulatory assets associated withenergycommodity.derivative instruments have been concluded to be probable ofrecovery through future rates.
Substantially all forward contracts to purchase or sell power and natural gas are recorded as derivative assets or liabilities at estimated fair value with an offsetting regulatory asset orliability.Contracts that are not consideæd derivatives are accounted foron the accrual basis until they are settled or realized unless them is a decline in the fair value ofthe contmetthatisdeterminedtobeother-than-temporary.
For interest rate swap derivatives,Avista Corp.records all mark-to-market gains and losses in each accounting periodas assets and liabilities,as well as offsetting regulato1y assets andliabilities,such that them is no income statement impact.The interest rate swap derivatives are risk management tools similar to energy commodity derivatives.Upon settlement ofinterestrateswapderivatives,the regulatory asset or liabilityis amortized as a component ofinterest expense over the term ofthe associated debt.The Company records an offset ofinterestrateswapderivativeassetsandliabilitieswithregulatoryassetsandliabilities,based on the priorpractice ofthe commissions to provide recovery through the ratemakingprocess.
The Company has multiple master netting agreements with a variety of entities that allowfor cross-commodity netting ofderivative agreements with the same counterparty (i.e.power
derivatives canbe netted with natural gas derivatives).In addition,some master netting agreements allowfor the netting of commodity derivatives and interest rate swap derivativesforthesamecounterparty.The Company doesnot have any agreements which allow for cross-affiliate netting among multiple affiliated legal entities.The Company nets all derivative
instruments when allowedby the agreement for presentation in the Balance Sheets.
Fair Value Measurements
Fair value represents the price that would be received when selling an asset or paid to transfer a liability(an exit price)in an orderly transaction between market participants at the
measurement date.Energy commodity derivative assets and liabilities,deferred compensation assets,as well as derivatives related to interest rate swap derivatives and foreign
curæncy exchange derivatives,aæ reported at estimated fair value on the Balance Sheets.See Note 13 for the Company's fairvalue disclosures.
Regulatory Deferred Charges and Credits
The Company prepaæs its financial statements in accordance with regulatory accounting practices because:
rates forregulated services are established by or subject to approval by independent third-paity regulators,
the regulated rates are designed to recover the cost ofproviding the regulated services,and
in view ofdemand for the regulated services and the level ofcompetition,it is reasonable to assume that rates can be charged to and collected from customers
at levels that will recover costs.
Regulatory accounting practices require that certain costs and/orobligations (such as incurred powerand natural gas costsnot currently reflected in rates,but expected to be recovered
or refunded in the future),are reflected as deferred charges or credits on the Balance Sheets.These costs and/orobligations are not reflected in the Statements of Income until the
periodduring which matching revenues are recognized.The Company also has decouplingrevenue defermls.See Note 2 for discussion on decouplingrevenue deferrals.
Ifat some point in the future the Company determines that it no longermeets the criteria for continued applicationofregulatory accounting pmctices for all or a portion ofits
regulated operations,the Company could be:
required to writeoffits regulatory assets,and
precluded from the future deferral of costs or decoupled revenues not æcovered through rates at the time such amounts are incurred,even ifthe Company
expected to recover these amounts from customers in the future.
Unamortized Debt Expense
Unamortized debt expense includes debt issuance costs that are amortized over the life ofthe related debt.
Unamortized Debt Repurchase Costs
For the Company's Washington regulatory jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions,premiums and discounts paid to repurchase debt are
amoitized over the remaining life ofthe original debt that wasrepurchased or,if new debt is issued in connection with the repurchase,these amounts are amortized over the life ofthe
new debt.In the Company's other regulatory jurisdictions,premiums or discounts paid to repurchase debt prior to 2007 are being amortized over the average remaining maturity of
outstanding debt when no new debt was issued in connection with the debt repurchase.The premium and discount costs are recovered orretumed to customers through retail rates as a
component ofinterest expense.
Appropriated Retained Earnings
In accordance with the hydroelectric licensing requirements of section 10(d)ofthe Federal Power Act (FPA),the Company maintains an appropriated retained eamings account for any
eamings in excess ofthe specified rate ofretum on the Company's investment in the licenses forits various bydroelectric projects.Per section 10(d)ofthe FPA,the Company must
maintain these excesseamings in an appropriated retained eamings account until the termination ofthe licensing agreements or apply them to reduce the net investment in the
licenses ofthe hydroelectric projects at the discretion ofthe FERC.The Company calculates the eamings in excess ofthe specified rate ofretum on an annual basis,usually during the
second quarter.
The appropriated retained eamings amounts includedin retained eamings were as follows as ofDecember 31 (dollars in thousands):
2022 2021
Appropriatedretained eamings S 55,058 $51,518
Contingencies
The Company has unresolved regulatory,1egal and tax issueswhich have inherently uncertain outcomes.The Company accrues a loss contingency ifit is probable that a liability has
been incurred and the amount ofthe loss or impairnent can be reasonably estimated.The Company also discloses loss contingencies that do not meet these conditions for accrual,if
there is a reasonable possibility that a material loss may be incurred.As ofDecember 31,2022,the Company has not recorded any significant amounts related to unresolved
contingencies.See Note 15 for further discussion ofthe Company's commitments and contingencies.
Equity in Earnings (Losses)of Subsidiaries
The Company records all the eamings (losses)from its subsidiaries under the equity method.The Company had the following equity in camings (losses)ofits subsidiaries for the
years ended December31 (dollars in thousands):
2022 2021
Avista Capital $32,423 $16,645
AERC 7,372 6,910
Total equity in earnings ofsubsidiary companies $39,795 $23,555
Subsequent Events
Management has evaluated the impact of events occurring after December 31,2021 up to February 21,2023,the date that Avista Corp.'s U.S.GAAP financial statements were issued
and has updated such evaluation for disclosure purposes through the date ofthis filing.These financial statements include all necessary adjustments and disclosures resulting from
these evaluations.
NOTE 2.REVENUE
ASC 606 defines the core principleofthe revenue recognitionmodel is that an entity should identify the various performance obligationsin a contact,allocate the transaction price
among the performance obligationsand recognize revenue when (or as)the entity satisfies each perfornance obligation.
Utility Revenues
Revenue from Contracts with Customers
General
The majority of Avista Corp.'s ævenue is fromrate-regulated sales ofelectricity and natural gas to retail customers,which has two performance obligations,(1)having service
available for a specified period (typically a month at a time)and (2)the delivery ofenergy to customers.The total energy price generally has a fixed component (basic charge)related
to having service available and a usage-based component,related to the delivery and consumption of energy.The commodity is sold and/or delivered to and consumed by the
customer simultaneously,and the provisions ofthe relevant utility commission authorizationdetermine the charges the Company may bill the customer.Since all revenue recognition
criteria are met upon the delivery ofenergy to customers,revenue is recognized immediately.
In addition,the sale of electricity and natural gas is govemed by the various state utility commissions,which set rates,charges,terms and conditions ofservice,and prices.
Collectively,these rates,charges,terms and conditions are includedin a "tariff,"whichgovems all aspects ofthe provision ofregulated services.Tariffs are only permitted to be
changed through a rate-setting process involving an independent,third-party regulatorempowered by statute to establish rates that bind customen.Thus,all regulated sales by the
Company are conducted subject to the regulator-approved tariff.
Tariffsales involve the current provision ofcommodity service (electricity and/ornaturalgas)to customers for a price that generally has a basic charge and a usage-based component.
Tariffrates also include certain pass-through costs to customers such as natural gas costs,retail revenue credits and other miscellaneous regulatory items that do not impact net income,
but can causetotal revenue to fluctuate significantly up or down compared to previous periods.The commodity is sold and/or delivered to and consumed by the customer
simultaneously,and the provisions ofthe relevant tariff determine the charges the Company may bill the customer,payment due date,and other pertinent rights and obligationsof
both parties.Generally,tariff sales do not involve a written contract.Since all revenue recognitioncriteria are met upon the delivery of energy to customers,revenue is recognized
immediately at that time.
Unbilled Revenuefmm Contracts with Customers
The deternination ofthe volume ofenergy sales to individual customers is based on the reading oftheir meters,which occurs on a systematic basis throughout the month (once per
month for eachindividual customer).At the end ofeach calendar month,the amount ofenergy delivered to customers since the date ofthe last meter reading is estimated and the
corresponding unbilled revenue is estimated and recorded.The Company's estimate ofunbilled revenue is based on:
thenumberofcustomers,
tariffrates,
meter reading dates,
actual native load for electricity,
actual throughput for natural gas,and
electric line losses and natural gas system losses.
Any difference between actual and estimated revenue is automatically corrected in the following month when the meter reading and customer billing occurs.
Accounts receivable includes unbilled energy revenues ofthe following amounts as ofDecember 31 (dollars in thousands):
2022 2021Unbilledaccountsreceivable$78,873 $71,752
Non-Derivative Wholesale Contracts
The Company has certain wholesale contracts whichare not accounted for as derivatives and,accordingly,are within the scope of ASC 606 and considered revenue from contractswithcustomers.Revenue is recognized as energy is delivered to the customeror the service is available for specified period oftime,consistent with the discussion ofrate regulated
sales above.
Alternative Revenue Programs(Decoupling)
ASC 606 retained existing GAAP associated with altemative revenue programs,whichspecified that altemative revenue progmms are contracts between an entity and a regulatorofutilities,not a contract between an entity and a customer.GAAPrequires that an entity present revenue arising from altemative revenue programs separately from revenues arising from
contracts with customers on the Statements ofIncome.The Company's decouplingmechanisms (also knownas a FCAin Idaho)qualify as altemative revenue programs.Decoupling
revenue deferrals are recognized in the Statements of Income duringthe period they occur (i.e.duringthe period of revenue shortfall or excess due to fluctuations in customer usage),
subject to certain limitations,and a regulatory asset or liability is established whichwill be surcharged orrebated to customers in future periods.GAAPrequires that for any altemative
revenne program,like decoupling,the revenue must be expected to be collected from customen within 24 months ofthe deferral to qualify for recognitionin the Statements of
Income.Any amounts includedin the Company's decouplingprogmm that are not expected to be collected from customers within 24 months are not recorded in the financial
statements until the period in which revenue recognitioncriteria are met.The amounts expected to be collected from customers within 24 months represents an estimate which must be
made by the Company on an ongoingbasis due to it being based on the volumes ofelectric and natural gas sold to customers on a go-forward basis.
The Company records alternative program vevenues under the gross method,which is to amortize the decouplingregulatory asset/liability to the altemative revenue program line item
on the Statements ofIncome as it is collected from or refunded to customers.The cash passing between the Company and the customers is presented in revenue from contracts with
customers since it is a portion ofthe overall tariffpaid by customers.This method results in a gross-up to both revenue from contracts with customers and revenue from altemative
revenue programs,but has a net zero impact on total revenue.Depending on whether the previous deferral balance being amortized was a regulatory asset orregulatory liability,and
depending on the size and direction ofthe current year deferral ofsurcharges and/orrebates to customers,it could result in negative altemative revenue program revenue duringthe
year.
Derivative Revenue
Most wholesale electric and natural gas transactions (including both physical and financial transactions),and the sale of fuel are considered derivatives,which are specifically scoped
out of ASC 606.As such,these revenues are disclosed separately from revenue from contracts with customers.Revenue is recognized for these items upon the settlement/expiration of
the derivative contract.Derivative revenue includes those transactions that are entered into and settled within the same month.
Other Utility Revenue
Other utility revenue includes rent,sales ofmaterials,late feesand other charges that do not represent contracts with customers.This revenue is scoped out of ASC 606,as this revenue
does not represent items where a customeris a paity that has contracted with the Company to obtain goods or services that are an output ofthe Company's ordinary activities in
exchange for consideration.As such,these revenues are presented separately from revenue from contracts with customers.
OtherConsiderationsfor Utility Revenues
Gross Versus Net Presentation
Utility-related taxes collected from customers (primarily state excise taxes and city utility taxes)are taxes imposed on Avista Corp.as opposed to being imposed on customers;
therefore,Avista Corp.is the taxpayer and records these transactions on a gross basis in revenue from contracts with customers and operating expense (taxes other than income taxes
Utility-related taxes that were included in revenue from contracts with customers were as follows for the years ended December 31 (dollars in thousands):
2022 2021Utility-relatedtaxes $69,931 $62,736
Significant Judgments and Unsatisfied Performance Obligations
The only significant judgments involving revenue recognitionare estimates surrounding unbilled revenue and receivables from contracts with customers and estimates surroundingtheamountofdecouplingrevenuesthatwillbecollectedfromcustomenwithin24months(discussed above).
The Company has certain capacity arrangements,where the Company has a contractual obligation to provide either electric or natural gas capacity to its customers for a fixed fee.Most ofthese arrangements are paid forin arrears by the customen and do not result in deferred revenue and only result in receivables from the customers.The Company does haveonecapacityagreementwherethecustomermakespaymentsthroughouttheyear.As ofDecember 31,2022,the Company estimates it had unsatisfied capacity performanceobligationsof$11.7 million,whichwill be recognized as revenue in future periods as the capacity is provided to the customers.These performance obligations are not reflected in thefinancialstatements,as the Company has not received payment for these services.
Disaggregationof Total Operating Revenue
2022 2021
Revenue from contracts with customers $1,410,638 $1,244,314
Derivative revenues 366,766 247,676
Altemative revenue programs (33,356)(6,635)
Deferrals and amortizations for rate refunds to customers (347)1,093
Otherutilityrevenues 9,475 9,138
Total 1,753,176 1,495,586
The following table disaggregates total operating revenue by source for the years ended December 31 (dollars in thousands):
Utility Revenue from Contracts with Customers by Type andService
The following table disaggregates revenue from contracts with customers associated with the Company's electric operations forthe years ended December 31 (dollais in thousands):
2022 2021ELECTRICOPERATIONS
Revenue from contracts with customers
Residential $414,823 $394,717
Commercial and govemmental 338,656 326,173
Industrial 118,351 117,165
Public street and highway lighting 7,483 7,472
Total retail revenue 879,313 845,527
Transmission 32,307 21,005
Other mvenue from contracts with customers 49,920 33,870
Total revenue from contracts with customers $961,540 $900,402
The following table disaggregates revenue from contracts with customers associated with the Company's natural gas operations forthe years ended December 31 (dollaisin
thousands):
2022 2021
NATURAL GAS OPERATIONS
Revenue from contracts with customers
Residential $284,452 $221,405
Commercial 139,923 100,819
Industrial and interruptible 10,471 7,796
Total retail revenue 434,846 330,020
Transportation 8,627 8,547
Otherævenue from contracts with customers 5,625 5,345
Total revenue from contracts with customers $449,098 $343,912
NOTE 3.LEASES
ASC 842 outlines a model for leaseaccounting.The core principle ofthe model is that an entity should recognize the ROU assets and liabilities from leases on the balance sheet and
depreciate or amortize the asset and liability over the term ofthe lease,as well as provide disclosure to enable users ofthe financial statements to assess the amount,timing,and
uncertainty of cash flows fmm leases.Forregulatory mporting,the FERC provided prescribed accounts for the ROU assets and liabilities,with the ROU assets being includedin utility
plant (FERC account 101)and the lease liabilities being included in capital lease obligations (FERC account 227).These accounts are different than the accounts allowedfor in
GAAP reporting,whichæsults in a FERC/GAAP difference.
Signißcant Judgments and Assumptions
The Company determines ifan arrangement is a lease,as well as its classification,at its inception.
ROU assets represent the Company's right to use an underlying asset for the lease term,and lease liabilities represent the Company's obligation to make lease payments.Operating
lease ROU assets and lease liabilities am recognized at the commencement date ofthe agreement based on the present value oflease payments over the lease term.As most ofthe
Company's leases do not provide an implicit rate,the Company uses its incæmental borrowingrate based on the information available at the commencement date to determine the
present value oflease payments.The implicit rateis used when it is readily determinable.The operating leaseROU assets also include any lease payments made and exclude lease
incentives,if any,that accrue to the benefit ofthe lessee.
Lease terns may includeoptions to extend or terninate the leasewhen it is reasonably certain the Company will exercise that option.Lease expense is recognized on a straight-line
basis over the leaseterm.The difference between lease expense and cashpaid for leased assets is recognized as a regulatory asset or regulatory liability.
Description ofLeases
OperatingLeases
The Company's most significant operating leaseis with the State of Montanaassociated with submerged land around the Company's hydroelectric facilities in the Clark Fork River
basin,whichexpires in 2046.The terms ofthis lease are subject to adjustment -dependingon the outcome of ongoinglitigation between the State of Montana and NorthWestem.In
addition,the State of Montanaand Avista Corp.are engaged in litigation regarding leaseterms,including howmuch money,ifany,the State of Montanashould retum to Avista Corp.
Amounts recorded for this lease are uncertain and amounts may change in the future depending on the outcome ofthe ongoinglitigation.Any reduction in future lease payments or
the retum ofpreviously paid amounts to Avista Corp.will be included in the future ratemaking process.
In addition to the leasewith the State of Montana,the Company also has other operating leasesfor land associated with its utility operations,as well as communication sites which
support network and radio communications within its service territory.The Company's leaseshave remaining terms of l to 71 years.Most ofthe Company's leases include options to
extend the leaseterm for periods of5 to 50 years.Options are exemised at the Company's discretion.
Certain ofthe Company's lease agreements includerental payments whichare periodically adjusted over the tern ofthe agreement based on the consumer price index.The Company's
leaseagreements do not include any material residual value guarantees or material restrictive covenants.
Avista Corp.does not æcord leases with a term of l2 months or less in the Balance Sheets.Total short-term leasecosts for the year ended December31,2022 are immaterial.
2022 2021
Operating lease cost:
Fixed lease cost $4,986 $4,970
Variable lease cost 1,567 1,180
Total operating lease cost $6,553 $6,150
The components oflease expense were as follows for the year ended December 31 (dollars in thousands):
Supplemental cash flow information related to leases was as follows for the year ended December 31 (dollars in thousands):
2022 2021
Cashpaid for amounts included in the measurement of lease liabilities:
Operating cash outflows:
Operating leasepayments $4,828 $4,805
Supplemental balance sheetinformation related to leases was as follows for December 31 (dollars in thousands):
December 31,December 31,
2022 2021
Operating Leases
Operating leaseROU assets (Utility Plant)$68,238 $70,133
Obligationsunder capital lease -current $4,349 $4,301
Obligationsunder capital lease -noncurrent 64,284 66,068
Total operating leaseliabilities $68,633 $70,369
Weighted Average RemainingLease Term
Operating leases 23.28 years 24.22 years
Weighted Average Discount Rate
Operating leases 4.28 %4.28 %
Maturitiesoflease liabilities (including principal and interest)were as follows as ofDecember31,2022 (dollars in thousands):
Operating Leases
2023 $4,850
2024 4,877
2025 4,884
2026 4,869
2027 4,880
Thereafter 86,991
Totalleasepayments $111,351
Less:imputed interest (42,718 )
Total $68,633
Maturitiesoflease liabilities (including principal and interest)were as follows as ofDecember31,2021 (dollars in thousands):
Operating Leases
2022 $4,820
2023 4,849
2024 4,875
2025 4,882
2026 4,867
Thereafter 91,845
Total lease payments $116,138
Less:imputed interest (45,769 )
Total 5 70,369
NOTE 4.DERIVATIVESAND RISKMANAGEMENT
Energy Commodity Derivatives
Avista Corp.is exposed to market risks relating to changes in electricity and natural gas commodity prices and certain other fuel prices.Market risk is,in general,the risk of
fluctuation in the market price ofthe commodity being traded and is influenced primarily by supply and demand.Market risk includes the fluctuation in the market price of associated
derivative commodity instruments.Avista Corp.utilizes derivative instruments,suchas forwards,futures,swap derivatives and options in order to manage the various risks relating to
these commodity price exposures.Avista Corp.has an energy resources risk policy and control procedures to manage these risks.
As part of Avista Corp.'s æsource procurement and management operations in the electric business,the Company engages in an ongoingprocess of resource optimization,which
involves the economic selection from available energy resources to serve Avista Corp.'s load obligations and the use ofthese resources to capture available economic value through
wholesale market transactions.These include sales and purchases of electric capacity and energy,fuel for electric generation,and derivative contracts related to capacity,energy and
fuel.Such transactions are part ofthe process ofmatching resources with load obligationsand hedginga portion ofthe related financial risks.These transactions range from terns of
intra-hourup to multiple years.
As part ofits resource pocurementand management ofits natural gas business,Avista Corp.makes continuing projections ofits natural gas loads and assesses available natural gas
resources including natural gas storage availability.Natural gas resouwe planning typically includes peak requirements,1ow and average monthly requirements and delively
constraints from natural gas supply locations to Avista Corp.'s distribution system.However,daily variations in natural gas demand can be significantly different than monthly
demand projections.Onthe basis ofthese projections,Avista Corp.plans and executes a series oftransactions to hedge a portion ofits projected natural gas requirements through
forward market transactions and derivative instruments.These transactions may extend as much as three natural gas operating years (November through October)into the future.Avista
Corp.also leaves a significant portion ofits natural gas supply requirements unhedged for purchase in short-term and spot markets.
Avista Corp.plans for sufficient natural gas delivery capacity to serve its retail customers for a theoretical peak day event.Avista Corp.generally has more pipeline and storage
capacity than what is needed during periods other than apeak day.Avista Corp.optimizes its natural gas resources by using market opportunities to generate economic value that
mitigates the fixed costs.Avista Corp.also optimizes its natural gas storage capacity by purchasing and storing natural gas when prices are traditionally lower,typically in the summer,
and withdrawingduringhigherpriced months,typically duringthe winter.However,ifmarket conditions and prices indicate that Avista Corp.should buy or sell natural gas at other
times during the year,Avista Corp.engages in optimization transactions to capture value in the marketplace.Natural gas optimization activities include,but are not limited to,
wholesale market sales ofsurplus natuml gas supplies,pumhases and sales ofnatural gas to optimizeuse ofpipeline and storage capacity,and participation in the transportation
capacity release market.
The following table presents the underlying energy commodity derivative volumes as ofDecember31,2022 that are expected to be delivered in each respective year (in thousands of
MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical (1)Financial (1)Physical (1)Financial (1)Physical (1)Financial (1)Physical (1)Financial (1)
Year MWh MWh mmBTUs mmBTUs MWh MWh mmBTUs mmBTUs
2023 5 19,140 79,253 136 1,011 4,145 29,473
2024 533 30,658 1,370 9,668
2025 450 4,895 1,115 1,125
As ofDecember 31,2022,there are no expected deliveries of energy commodity derivatives after 2025.
The following table presents the underlying energy commodity derivative volumes as ofDecember 31,2021 that were expected to be delivered in eachrespective year (in thousands
ofMWhsandmmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical (1)Financial (1)Physical (1)Financial (1)Physical (1)Financial (1)Physical (1)Financial (1)
Year MWh MWh mmBTUs mmBTUs MWh MWh mmBTUs mmBTUs
2022 129 7,114 61,405 234 452 3,933 31,485
2023 378 23,218 1,360 9,323
2024 228 3,413 1,370 228
2025 1,115
As of December 31,202 I,there were no expected deliveries of energy commodity derivatives after 2025.
(1)Physical transactions represent commodity transactions in whichAvista Corp.will take or make delivery of either electricity or natural gas;financial transactions represent
derivative instruments with delivery ofcash in the amount ofthe benefit or cost but with no physical delivery ofthe commodity,such as futures,swap derivatives,options,or
forward contracts.
The electric and natural gas derivative contracts above will be includedin either powersupply costs or natural gas supply costs during the period they are scheduled to be delivered
and will be includedin the various deferral and recovery mechanisms (ERM,PCA,and PGAs),or in the general rate case process,and are expected to be collected through ætail rates
from customers.
Foreign Currency Exchange Derivatives
Asignificant poItion ofAvista Corp.'s natural gas supply (including fuel for powergeneration)is obtained from Canadian sources.Most ofthose transactions are executed in U.S.
dollars,which avoids foreign currency risk.Aportion of Avista Corp.'s shoit-term natural gas transactions and long-term Canadian transpo1tation contracts are committed basedon
Canadian currency prices.The short term natural gas transactions are settled within 60 days with U.S.dollars.Avista Corp.hedges a portion ofthe foreign cunency risk by purchasing
Canadian currency exchange derivatives when such commodity transactions are initiated.The foreign currency exchange derivatives and the unbedged foreign currency risk have not
had a material effect on Avista Corp.'s financial condition,results of operations or cash flows and these differences in cost related to currency fluctuations are includedwith natural gas
supply costs forratemaking.
The following table summarizes the foreign currency exchange derivatives that Avista Corp.has outstanding as ofDecember 31 (dollars in thousands):
2022 2021
Numberofcontracts 19 25
Notional amount (in United States dollars)$8,563 $8,571Notionalamount(in Canadian dollars)11,659 10,957
Interest Rate Swap Derivatives
Avista Corp.is affected by fluctuating interest ratesrelated to a portion ofits existing debt,and future borrowingrequirements.Avista Corp.hedges a portion ofits interest rate riskwithfinancialderivativeinstmments,which may include interest rate swap derivatives and U.S.Treasury lock agreements.These interest rate swap derivatives and U.S Treasury lock
agreements are considered economic hedges against fluctuations in future cash flows associated with anticipated debt issuances.
The following table summarizes the unsettled inteæst rate swap derivatives that Avista Corp.has outstanding as ofthe balance sheet date indicated below(dollars in thousands):
MandatoryCash
Balance Sheet Date Numberof Contracts Notional Amount Settlement Date
December 31,2022 4 $40,000 2023
1 10,000 2024
December31,2021 13 $140,000 2022
2 20,000 2023
1 10,000 2024
See Note 11 for discussion ofthe bond purchase agreement and the related settlement ofinterest rate swaps in connection with the pricing ofthe bonds in March 2022.
The fair value of outstanding interest rate swap derivatives can vary significantly from period to period depending on the total notionalamount of swap derivatives outstanding and
fluctuations in market interest rates compared to the interest rates fixed by the swaps.Avista Corp.is required to make cash payments to settle the interest rate swap derivatives when
the fixed ratesare higherthan prevailing market rates at the date of settlement.Conversely,Avista Corp.receives cash to settle its interest rate swap derivatives when prevailing market
rates at the time of settlement exceed the fixed swap rates.
Summary of Outstanding Derivative Instruments
The amounts recorded on the Balance Sheetsas ofDecember31,2022 and December 31,2021 reflect the offsetting of derivative assets and liabilities where a legal right of offset
exists.
The following table presents the fair values and locations of derivative instruments recorded on the Balance Sheets as ofDecember 31,2022 (dollars in thousands):
Fair Value
Net Asset
(Liability)
Gross Gross Collateral on BalanceDerivativeandBalanceSheetLocationAssetLiabilityNettingSheet
Foreign currency exchange derivatives
Derivative instrument assets current S 43 $$$43
Derivative instrument liabilities curent (3)(3)
Interest rate swap derivatives
Derivative instrument assets current 8,536 8,536
Long-term portion ofderivative assets 2,648 2,648
Derivative instrument liabilities current (52)(52)
Energy commodity derivatives
Derivative instrument assets current 32,257 (22,638)9,619
Long-term portion ofderivative assets 312 (16)296
Derivative instrument liabilities current 107,902 (229,607)94,850 (26,855)
Long-term portion ofderivative liabilities 6,049 (24,530)10,589 (7,892)
Total derivative instruments recorded on the
balance sheet $157,704 $(276,846)$105,439 $(13,703)
The following table presents the fair values and locations ofderivative instruments recorded on the Balance Sheets as ofDecember 31,2021 (dollars in thousands):
Fair Value
Net Asset
(Liability)
Gross Gross Collateral on Balance
Derivativeand Balance Sheet Location Asset Liability Netting Sheet
Foreign currency exchange derivatives
Derivative instmment liabilities current $$(19 )$$(19 )Interest rate swap derivatives
Long-tern portionof derivative assets 1,149 1,149
Derivative instrument liabilities current 1,170 (25,196 )(24,026 )Long-term portionof derivative liabilities (78 )(78 )Energy commodity derivatives
Derivative instrument assets curent 1,506 (107 )1,399
Long-term portionof derivative assets 6,844 (5,335 )1,509
Derivativeinstmmentliabilitiescurent 25,771 (39,616 )9,089 (4,756 )Long-tern portion of derivative liabilities 141 (4,589 )(4,448 )Total derivative instmments recorded on the
balance sheet $36,581 $(74,940 )$9,089 $(29,270 )
Exposureto Demands for Collateral
Avista Corp.'s derivative contracts often require collateral (in the form of cash or letters of credit)or other credit enhancements,or reductions or terminations of a portion of the
contract through cash settlement.In the event ofa downgrade in Avista Corp.'s credit ratings or changes in market prices,additionalcollateral may be required.In periods of price
volatility,the level ofexposure can change significantly.As a result,sudden and significant demands may be made against Avista Corp.'s credit facilities and cash.Avista Corp.
actively monitors the exposure to possible collateral calls and takes steps to mitigate capital requirements.
The following table presents Avista Corp s collateral outstanding related to its derivative instruments as ofDecember 31 (dollars in thousands):
2022 2021Energycommodityderivatives
Cash collateral posted $171,581 $30,567
Letters of credit outstanding 49,425 34,000
Balance sheet offsetting (cash collateral against net derivative positions)105,439 9,089
There were no letters of credit outstanding related to interest rate swap derivatives as ofDecember 31,2022 and December 31,2021.
Certain ofAvista Corp.'s derivative instruments contain provisions that require Avista Corp.to maintain an "investment grade"credit rating from the major credit rating agencies.IfAvistaCorp.'s credit ratings were to fall below"investment grade,"it would be in violation ofthese provisions,and the counterparties to the derivative instruments could requestimmediatepaymentordemandimmediateandongoingcollateralizationonderivativeinstrumentsinnetliabilitypositions.
The following table presents the aggregate fair value ofall derivative instruments with credit-risk-related contingent features that are in a liabilitypositionand the amount ofadditionalcollateralAvistaCorp.could be required to post as ofDecember31 (dollars in thousands):
2022 2021Interestrateswapderivatives
Liabilities with credit-risk-mlated contingent features $52 $25,274Additionalcollateraltopost5225,274
NOTE 5.JOINTLYOWNEDELECTRICFACILITES
The Company has a 15 percent ownership interest in Units 3 and 4 ofthe Colstrip generating station,a coal-fired plant located in southeastem Montana,and provides financing forits
ownership interest in the project.Pursuant to the ownership and operating agreements among the co-owners,the Company's shareof related fuel costs as well as operating expenses for
plant in service are includedin the corresponding accounts in the Statements ofIncome.The Company's share ofutility plant in service for Colstrip and accumulated depreciation
(inclusive ofthe ARO assets and accumulated amortization)wereas follows as ofDecember31 (dollars in thousands):
2022 2021Utilityplantinservice$390,852 $395,028
Accumulated depreciation (315,223)(302,220)
See Note 6 for further discussion of AROs.
While the obligations and liabilities withrespect to Colstrip are to be shared among the co-owners on a pro-rata basis,many ofthe environmental liabilities are joint and several underthelaw,so that ifany co-owner failed to pay its share ofsuch liability,the other co-owners (or any one ofthem)could be required to pay the defaulting co-owner's share(or the entireliability).
In January 2023,the Company entered into an agnement with NorthWestem to transfer its ownership in Colstrip Units 3 and 4.The Company will ætain responsibility for remediationobligationsinexistenceatthetimethetransactioncloses.See further discussion ofthe transaction within Note 15.
NOTE 6.ASSETRETIREMENT OBLIGATIONS
The Company has recorded liabilities for futme AROs to:
restore coal ash containment ponds and coal holding areas at Co1strip,
cap a landfill at the Kettle Falls Plant,and
remove plant and restore the land at the Coyote Springs 2 site at the termination ofthe land lease.
Due to an inability to estimate a range of settlement dates,the Company cannot estimate a liabilityfor the:
removal and disposal ofcertain transmission and distribution assets,and
abandonment and decommissioning ofceitain hydroelectric generation and natural gas storage facilities.
In 2015,the EPAissued a final rule regarding CCRs.Colstrip produces this byproduct.The CCR rule has been the subject of ongoinglitigation.InAugust 2018,the D.C.Circuitstruckdownprovisionsoftherule.The rule includes technical requirements for CCR landfills and surface impoundments.The Colstrip owners developed a multi-year complianceplantoaddresstheCCRæquirementsandexistingstateobligations.
The actual asset retirement costs related to the CCR rule requirements may vary substantially from the estimates used to record the ARO due to the uncertainty and evolving nature of
the compliance strategies that will be used and the availability of data used to estimate costs,such as the quantity of coal ash present at certain sites and the volume of fill that will beneededtocapandcoverceitainimpoundments.The Company updates its estimates as new information becomes available.The Company expects to seek recovery ofany increased
costsrelated to complying with the CCR rule through the ratemaking process.
In addition to the above,undera2018 Administrative OrderonConsent and ongoingnegotiations with the MontanaDepartment ofEcological Quality,the owners ofColstrip are
required to provide financial assurance,primarily in the forn ofsurety bonds,to secureeach owner's pro-rata share ofvarious anticipated closure and remediation ofthe ash ponds andcoalholdingareas.The amount offinancial assurance required ofeach owner may,like the ARO,vary substantially due to the uncertainty and evolving nature of anticipated closure
and remediation activities,and as those activities are completed over time.
The following table documents the changes in the Company's asset retirement obligation during the years ended December31 (dollars in thousands):
2022 2021
Asset retirement obligation at beginningof year $17,142 $17,194Liabilitiesincurred825Liabilitiessettled(1,964)(1,541)
Accretion expense 605 664
Asset retirement obligation at end of year $l 5,783 $17,142
NOTE 7.PENSION PLANSAND OTHER POSTRETIREMENTBENEFIT PLANS
The pension and other postretirement benefit plans described below only relate to Avista Corp.AEL&P(not discussed below)participates in a defined contributionmultiemployer
plan for its union workers and a defined contributionmoney purchase pension plan for its nonunionworkers.None ofthe subsidiary retirement plans,individually or in the aggregate,
are significant to Avista Corp.
Avista Corp.
The Company has a defined benefit pension plan covering the majority ofall regular full-time employees at Avista Corp.that were hiæd prior to January 1,2014.Employees eligiblefortheplancontinuetoaccruebenefits.Individual benefits under this plan are based upon the employee's years ofservice,date ofhire and average compensation as specified in theplan.Non-unionemployees hired on or after January 1,2014 paiticipate in a defined contribution401(k)plan in lieu ofa defined benefit pension plan.Union employees hired on orafterJanuary1,2014 are still covered under the defined benefit pension plan.Effective December31,2023,the plan will be closed to new union employees.The Company's fundingpolicyistocontributeatleasttheminimumamountsthatarerequiredtobefundedundertheEmployeeRetirementIncomeSecurityAct,but not more than the maximum amountsthatarecurrentlydeductibleforincometaxpurposes.The Company contributed $42.0 millionin cash to the pension plan in 2022 and 2021.The Company expects to contribute$10.0 million in cash to the pension plan in 2023.
In 2022,the defined benefit pension plan lump sum payments exceeded the annual service and interest costs for the plan.This resulted in a partial settlement ofthe plan,and the
Company recorded a settlement loss of $11.8 millionfor the previously umecognized losses in the year ended December 31,2022.This loss was deferred as a regulatory asset.
The Company also has a SERPthat provides additionalpension benefits to certain executive officers and certain key employees ofthe Company.The SERPis intended to provide
benefits to individualswhose benefits under the defined benefit pension plan are reduced due to the applicationof Section 415 ofthe Intemal Revenue Code of 1986 and the deferralofsalaryunderdeferredcompensationplans.The liability and expense for this plan aæ includedas pension benefits in the tables includedin this Note.
The Company expects that benefit payments under the pension plan and the SERPwilltotal (dollars in thousands):
Total2028-
2023 2024 2025 2026 2027 2032
Expectedbenefitpayments $41,993 $41,759 $42,207 $42,517 $43,037 S 226,781
The expected long-termrateofætum on plan assets is based on past performance and economic forecasts for the types ofinvestments held by the plan.In selecting a discount rate,the
Company considers yield rates forhighly rated corporate bond portfolios with maturities similar to that ofthe expected term ofpension benefits.
The Company provides certain health care and life insurance benefits for eligible ætired employees that weæ hired prior to January 1,2014.The Company accmes the estimated cost
ofpostretirement benefit obligationsduring the years that employees provide services.The liabilityand expense ofthis plan are includedas otherpostretirement benefits.Non-union
employees hired on or after January 1,2014,will have access to the retiree medical plan upon retirement;however,Avista Corp.will no longerprovide a contribution toward their
medical premium.
The Company hasa Health Reimbursement Arrangement (HRA)to provide employees with tax-advantaged funds to pay for allowablemedical expenses upon Ietirement.The amount
eamed by the employee is fixed on the retirement date based on the employee's years ofservice and the ending salary.The liability and expense ofthe HRAare included as other
postretirement benefits.
The Company provides death benefits to beneficiaries ofexecutive officers who die duringtheir termofoffice or after retirement.Under the plan,an executive officer's designated
beneficiary will receive a payment equal to twice the executive officer's annual base salary at the time ofdeath (or if death occurs after retirement,a payment equal to twice the
executive officer's total annual pension benefit).The liability and expense for this plan are included as other postretirement benefits.
The Company expects that benefit payments underotherpostretirementbenefit plans will total (dollars in thousands):
Total 2028-
2023 2024 2025 2026 2027 2032
Expectedbenefitpayments $7,031 $7,234 $7,436 $7,585 $7,771 $40,959
The Company expects to contribute $7.0 millionto other postretirement benefit plans in 2023.The Company uses a December31 measumment date for its pension and other
postretirement benefit plans.
The following table sets forth the pension and other postretirement benefit plan disclosures as ofDecember 31,2022 and 2021 and the components ofnet periodic benefit costs for the
years ended December31,2022 and 2021 (dollars in thousands):
Other Post-
Pension Benefits retirementBenefits
2022 2021 2022 2021
Change in benefit obligation:
Benefit obligation as ofbeginning ofyear $799,042 $826,915 $167,598 $161,233
Service cost 23,877 25,306 4,369 4,114
Interest cost 26,536 26,160 5,503 5,139
Actuarial (gain)/loss (204,775)(13,997)(54,120)2,808
Plan change 3,302
Settlement (60,206)Benefitspaid (30,067)(65,342)(7,715)(5,696)
Benefit obligation as ofend ofyear $557,709 $799,042 $115,635 $167,598
Change in plan assets:
Fairvalue ofplan assets as ofbeginning ofyear $750,963 $722,024 $59,544 $52,173
Actual retum on plan assets (163,866)50,370 (10,072)7,371
Employer contributions 42,000 42,000
Settlement (60,206)
Benefitspaid (28,188)(63,431)
Fairvalueofplanassetsasofendofyear $540,703 $750,963 $49,472 $59,544
Funded status $(17,006)$(48,079)$(66,163)$(108,054)
Amounts recognizedin the Balance Sheets:
Non-current assets $13,382 $$$
Cuntnt liabilities (1,934)(1,951)(706)(684)
Non-current liabilities (28,454)(46,128)(65,457)(107,370)
Net amount recognized 5 (17,006)$(48,079)$(66,163)$(108,054)
Accumulatedpensionbenefitobligation $495,654 $685,493
Accumulated postretirement benefit obligation:
Forretirees $61,984 $78,347
For fully eligible employees $19,731 $32,144Forotherparticipants$33,920 $57,107
Included in accumulated other comprehensive loss (income)(net of tax):
Unrecognized prior service cost (credit)$4,105 $1,699 $(1,911)S (2,741)
Unrecognized net actuarial loss 83,794 94,109 13,643 48,872
Total 87,899 95,808 11,732 46,131
Less regulatory asset (85,198)(85,550)(12,375)(45,350)
Accumulated other comprehensive loss for unfunded benefit
obligationforpensionsandotherpostretirementbenefitplans $2,701 $10,258 $(643)$781
Other Post-
Pension Benefits retirement Benefits
2022 2021 2022 2021
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation 6.10%3.39%6.10%3.40%
Discount rate for annual expense 3.39%3.25%3.40%3.27%
Expected long-termretumon plan assets 5.80%5.40%4.70%4.60%
Rate of compensation increase 4.69%4.66%
Medical cost trend pre-age 65 -initial 6.25%6.00%
Medical cost trend pre-age 65 -ultimate 5.00%5.00%
Ultimate medical cost trend year pre-age 65 2028 2026
Medical cost trend post-age 65 -initial 6.25%6.00%
Medical cost trend post-age 65 -ultimate 5.00%5.00%
Ultimate medical cost trend year post-age 65 2028 2026
Pension Benefits Other Post-retirement Benefits
2022 2021 2022 2021
Components of net periodic benefit cost:
Service cost (1)$23,877 $25,306 $4,369 $4,114
Interest cost 26,536 26,160 5,503 5,139
Expected retum on plan assets (43,872)(39,088)(2,799)(2,400)
Amortization of prior service cost (credit)257 257 (1,050)(921)
Net loss recognition 4,180 6,645 3,344 3,865
Settlement loss (2)11,828
Net periodic benefit cost S 22,806 $19,280 $9,367 $9,797
(1)Total service costs in the table above are recorded to the sameaccounts as laborexpense.Laborand benefits expense is recorded to various projects based on whether the work is acapitalprojectoranoperatingexpense.Approximately40 percent ofall labor and benefits is capitalizedto utility propetty and 60 percent is expensed to utility otheroperatingexpenses.
(2)The settlement loss was defered as a regulatory asset to be amortized over futuæ periods.
PlanAssets
The Finance Committee ofthe Company's Board ofDirectors approves investment policies,objectives and strategies that seek an appropriate return for the pension plan and otherpostretirementbenefitplansandreviewsandapproveschangestotheinvestmentandfundingpolicies.
The Company hascontracted with investment consultants who are responsible for monitoringthe individual investment managers.The investment managers'performance and relatedindividualfundperformanceisperiodicallyreviewedbyanintemalbenefitscommitteeandbytheFinanceCommitteetomonitorcompliancewithinvestmentpolicyobjectivesandstrategies.
Pension plan assets are invested in mutual funds,trusts and partnerships that hold marketable debt and equity securities,real estate,and absolute retum.In seeking to obtain a retumthatalignswiththefundedstatusofthepensionplan,the investment consultant recommends allocation percentages by asset classes.These recommendations aæ mviewed by theintemalbenefitscommittee,which then recommends their adoption by the Finance Committee.The Finance Committee has established target investment allocationpercentages byassetclassesandalsoinvestmentrangesforeachassetclass.The target investment allocationpercentages are typically the midpoint ofthe established range.The target investmentallocationpercentagesbyassetclassesareindicatedinthetablebelow:
2022 2021Equitysecurities55%55%Debt securities 40%40%Real estate 5%5%Absolute retum 0%0%
The target investment allocation percentages were revised in the first quatterof2021 and the pension plan assets were reinvested to move toward the new target investment allocationpercentages.The target asset allocationpercentages were modified to better align the asset allocations with the funded status ofthe pension plan.
The fair value ofpension plan assets invested in debt and equity securities wasbasedprimarily on fair value (market prices).The fairvalue ofinvestment securities traded on anationalsecuritiesexchangeisdeterninedbasedontheæportedlastsalesprice;securities traded in the over-the-countermarket are valued at the last reported bid price.Investmentsecuritiesforwhichmarketpricesarenotreadilyavailableorforwhichmarketpricesdonotrepresentthevalueatthetimeofpricing,the investment manager estimates fair valuebaseduponotherinputs(including valuations of securities that aæ comparable in coupon,rating,maturity and industry).
Pension plan and otherpostretiæment plan assets with fair values are measured using net asset value (NAV)are excluded from the fair value hierarchy and included as reconcilingitemsinthetablesbelow.
The plan's investments in common/collective trusts have ædemption limitations that permit quarterly redemptions following notice requirements of45 to 60 days.Most ofthe plan'sinvestmentsincloselyheldinvestmentsandpartnershipinterestshaveædemptionlimitationsthatrangefrombi-monthly to semi-annually following redemption notice requirementsof60to90days.
The following table discloses by level within the fairvalue hierarchy (see Note 13 for a description ofthe fair value hierarchy)ofthe pension plan's assets measured and reported as ofDecember31,2022 at fair value (dollars in thousands):
Level 1 Level2 Level3 TotalCashequivalents$$5,110 $$5,110Fixedincomesecurities:
U.S.govemment issues 16,732 16,732Corporateissues161,180 161,180Intemationalissues23,108 23,108Municipalissues13,427 13,427Mutualfunds:
U.S.equity securities 154,442 154,442Intemationalequitysecurities58,933 58,933PlanassetsmeasuredatNAV(not subject to hierarchy
disclosure)
Common/collective trusts:
Real estate 30,406
Partnership/closely held investments:
Intemational equity securities 69,792Realestate7,573Total$213,375 $219,557 $$540,703
The following table discloses by level within the fair value hierarchy (see Note 13 for a description ofthe fairvalue hierarchy)ofthe pension plan's assets measured and reported as ofDecember31,2021 at fair value (dollars in thousands):
Levell Leve12 Level3 TotalCashequivalents$$6,259 $$6,259Fixedincomesecurities:
U.S.govemment issues 19,310 19,310Corporateissues233,496 233,496Intemationalissues34,270 34,270Municipalissues18,558 18,558Mutualfunds:
U.S.equity securities 236,552 236,552Intemationalequitysecurities112,873 112,873PlanassetsmeasuredatNAV(not subject to hierarchy
disclosure)
Common/collective trusts:
Real estate 31,040Partnership/closely held investments:
Absolute return 363Intemationalequitysecurities50,427Realestate7,815Total$349,425 $311,893 $$750,963
The fair value ofotherpostretirement plan assets invested in debt and equity securities was based primarily on market prices.The fair value ofinvestment securities traded on anationalsecuritiesexchangeisdeterminedbasedonthelastrepoitedsalesprice;securities traded in the over-the-counter market are valued at the last reported bid price.Forinvestmentsecuritiesforwhichmarketpricesarenotreadilyavailable,the investment manager deternines fair value based upon other inputs (including valuations of securities thatarecomparableincoupon,rating,maturity and industry).The target asset allocation was60 percent equity securities and 40 percent debt securities in both 2022 and 2021.
The fair value ofother postretirement plan assets was determined as ofDecember 31,2022 and 2021.
The following table discloses by level within the fair value hierarchy (see Note 13 for a description ofthe fair value hierarchy)ofother postretirement plan assets measured andreportedasofDecember31,2022 at fair value (dollars in thousands):
Level l Level2 Level 3 TotalBalancedindexmutualfund(1)$49,472 $$$49,472
The following table discloses by level within the fair value hierarchy (see Note 13 for a description ofthe fair value hierarchy)ofotherpostretirement plan assets measuæd and
reported as ofDecember 31,2021 at fair value (dollars in thousands):
Level 1 Level2 Level3 Total
Balanced index mutual fund (1)$59,545 $$$59,545
(1)The balanced index fund for2022 and 2021 is a single mutual fund that includes a percentage ofU.S.equity and fixed income securities and Intemational equity and fixed income
securities.
401(k)Plans and Executive Deferral Plan
Avista Corp.has a salary deferral 401(k)plan that is a defined contributionplan and covers substantially all employees.Employees can make contributions to theirrespective
accounts in the plans on a pre-tax basis up to the maximum amount permitted by law.The Company matches a portion ofthe salary deferred by eachparticipant according to the
schedule in the respective plan.
Employer matching contributionswere as follows for the years ended December 31 (dollars in thousands):
2022 2021
Employer401(k)matchingcontributions $13,258 $11,671
The Company has an Executive Deferral Plan.This plan allows executive officers and other key employees the opportunity to defer until the earlieroftheirretirement,termination,
disability or death,up to 75 percent oftheir base salary and/orup to 100 percent oftheir incentive payments.Deferred compensation funds are held by the Company in a Rabbi Tmst.
There were deferred compensation assets and corresponding deferred compensation liabilities on the Balance Sheets ofthe following amounts as ofDecember31 (dollars in
thousands):
2022 2021
Deferred compensation assets and liabilities $7,541 $9,513
NOTE 8.ACCOUNTING FOR INCOMETAXES
The realizationof deferred income tax assets is dependent upon the ability to generate taxable income in future periods.The Company evaluated available evidence supporting the
realizationofits deferred income tax assets and determined it is more likely than not that deferred income tax assets will be realized.
As ofDecember 31,2022,the Company had $13.6 millionofstate tax credit carryforwards.Ofthe total amount,the Company believes that it is more likely than not that it will only
be able to utilize $9.7 millionofthe state tax credits.As such,the Company has recorded a valuation allowance of $3.9 millionagainst the state tax credit caryforwards and reflected
the net amount of $9.7 millionas an asset as ofDecember 31,2022.State tax credits expire from2023 to 2036.
Status ofInternal Revenue Service (IRS)and State Examinations
The Company and its eligible subsidiaries file consolidated federal income tax retums.All tax yeaIs after 2018 are open for an IRS tax examination.
The Company also files state income tax returns in certain jurisdictions,including Idaho,Oregon,Montanaand Alaska.Subsidiaries are charged or credited with the tax effects oftheir
operations on a stand-alone basis.
All tax years after2018 are open for examination in Idaho,Oregon,Montanaand Alaska.
The Company believes that any open tax years for federal or state income taxes will not result in adjustments that would be significant to the financial statements.
NOTE 9.ENERGYPURCHASECONTRACTS
Avista Corp.has contracts for the purchase of fuel for thermal generation,natural gas for resale and various agreements for the purchase or exchange of electric energy with other
entities.The remaining term ofthe contracts range from one month to twenty-five years.
Total expenses for power purchased,natural gas purchased,fuel for generation and other fuel costs,which are included in utility resource costs in the Statements of Income,were as
follows forthe years ended December31 (dollars in thousands):
2022 2021Utilitypowerresources$660,967 $431,199
The following table details Avista Corp.'s future contractual commitments forpowerresources (including transmission contracts)and natural gas resources (including transportation
contracts)(dollars in thousands):
2023 2024 2025 2026 2027 Thereafter Total
Powerresources $245,169 $215,044 $240,214 $214,747 $185,590 $2,333,955 $3,434,719
Natural gas resources 130,921 79,366 39,192 28,046 38,591 320,377 636,493
Total $376,090 $294,410 $279,406 $242,793 $224,181 $2,654,332 $4,071,212
These energy purchase contracts were entered into as part of Avista Corp.'s obligation to serve its retail electric and natural gas customers'energy requirements,including contracts
entered into for resource optimization.These costs are recovered either through base retail rates or adjustments to retail rates as part ofthe powerand natural gas cost deferral and
recovery mechanisms.
The future contractual commitments forpowerresources include fixed contractual amounts related to the Company's contracts with Public UtilityDistricts (PUD)to purchase portions
ofthe output ofcertain generating facilities.Although Avista Corp.has no investment in the PUD generating facilities,the contracts obligateAvista Corp.to pay certain minimum
amounts whether ornot the facilities are operating.The cost ofpowerobtained under the contracts,including payments made when a facility is not operating,is includedin utility
resource costs in the Statements ofIncome.The contractual amounts includedabove consist of Avista Corp.'s shareof existing debt service cost and its proportionate share ofthe
variable operating expenses ofthese projects.The minimum amounts payable under these contracts are based in part on the proportionate share ofthe debt service requirements ofthe
PUD's revenue bonds forwhich the Company is indirectly responsible.The Company's total future debt service obligation associated with the revenue bonds outstanding at
December31,2022 (principal and interest)was $281.0 million.
In addition,Avista Corp.has operating agreements,settlements and other contractual obligationsrelated to its generating facilities and transmission and distribution services.The
expenses associated with these agreements are reflected as other operating expenses in the Statements ofIncome.The following table details future contractual commitments under
these agreements (dollars in thousands):
2023 2024 2025 2026 2027 Thereafter Total
Contractual obligations $30,562 $31,416 $32,255 $16,937 $17,343 $178,193 $306,706
NOTE 10.NOTESPAYABLE
Lines of Cmdit
Avista Corp.has a committed line oferedit in the total amount of $400 million.with expirationdate of June 2026.The Company has the option to extend for an additional one year
period (subject to customary conditions).The committed line oferedit is secured by non-transferable first mortgage bonds ofthe Company issued to the agent bank that would only
become due and payable in the event,and then only to the extent,that the Company defaults on its obligationsunder the committed line of credit.
In November2022,the Company entered into a revolving credit agreement in the amount of $50 millionwith a maturity date in November2023.In December2022,the Company
amended the agreement to add an additional $50 million,bringing the new aggregate total amount to $100 million.
Balances outstanding and interest rates ofborrowings (excludingletters of credit)under the Company's $400 millionrevolving committed line of credit due in June 2026 were as
follows as ofDecember31 (dollars in thousands):
2022 2021
Balance outstanding at end ofperiod $313,000 $284,000
Letters oferedit outstanding at end ofperiod 35,563 34,000
Average interest rate at end ofperiod 5.31%1.11%
As ofDecember 31,2022,the Company did not have any outstanding borrowingsunder the $100 millionævolving credit agreement due in November2023.
As ofDecember 31,2022 and 2021,the borrowingsoutstanding under Avista Corp.'s committed lines of credit were classified as short-term borrowingson the Balance Sheets.
2022 TermLoan
In December2022,the Company entered into a term loan agreement in the amount of $100 millionwith a maturity date ofMarch 30,2023.The initial agreement included an optiontoaddanadditional$50 millionin principal as an incremental facility,which the company exercised in December2022,bringing the total aggregate amount to $150 million.
The Company borrowed the entire $150 millionavailable under the agreement.The boirowingsoutstanding under this agreement were classified as short-term borrowingson the
Balance Sheets.On Mawh 30,2023,the Company repaid the entire $150 millionthat was outstanding as ofDecember31,2022.
2022 Letter of Credit Facility
In December2022,the Company entered into a continuing letteroferedit agreement in the aggregate amount of $50 million.Either party may terminate the agreement at any time.
As ofDecember31,2022,the Company had $18.5 millionin letters of credit outstanding under this agreement.Letters oferedit are not reflected on the Balance Sheets.Ifa letterofcreditweredrawnuponbytheholder,we wouldhave an immediate obligation to reimburse the bank that issued that letter.
Covenants and Default Pmvisions
The short-termbormwingagreements contain customary covenants and default provisions,including a change in control (as defined in the agreements).The events ofdefault undereachofthecreditfacilitiesalsoincludeacrossdefaultfromotherindebtedness(as defined)and in some cases other obligations.Most ofthe short-term borrowingagreement alsoincludeacovenantwhichdoesnotpermittheintioof"total debt"to "total capitalization"of Avista Corp.to be greater than 65 percent at any time.As ofDecember31,2022,theCompanywasincompliancewiththiscovenant.
NOTE 11.BONDS
The following details bonds outstanding as ofDecember31 (dollars in thousands):
Maturity Interest
Year Description Rate 2022 2021
Avista Corp.Secured Long-Term Debt
2022 First MortgageBonds 5.13%$$250,0002023SecuredMedium-Term Notes 7.18%-7.54%13,500 13,500
2028 Secured Medium-TennNotes 6.37%25,000 25,000
2032 Secured Pollution Control Bonds (1)(1)66,700 66,700
2034 Secured Pollution Control Bonds (1)(1)17,000 17,000
2035 First MortgageBonds 6.25%150,000 150,000
2037 First MortgageBonds 5.70%150,000 150,000
2040 First MortgageBonds 5.55%35,000 35,000
2041 First MortgageBonds 4.45%85,000 85,000
2044 First MortgageBonds 4.11%60,000 60,000
2045 First MortgageBonds 4.37%100,000 100,000
2047 First MortgageBonds 4.23%80,000 80,000
2047 First MortgageBonds 3.91%90,000 90,000
2048 First MortgageBonds 4.35%375,000 375,000
2049 First MortgageBonds 3.43%180,000 I 80,000
2050 First MortgageBonds 3.07%165,000 165,000
2051 First MortgageBonds 3.54%175,000 175,000
2051 First MortgageBonds 2.90%140,000 140,000
2052 First MoitgageBonds (2)4.00%400,000
Total Avista Corp.secured long-term bonds 2,307,200 2,157,200
Secured Pollution Control Bonds held by Avista
Corporation (1)(83,700)(83,700)
Total long-term bonds $2,223,500 $2,073,500
(1)In December2010,$66.7 millionand $17.0 millionofthe City ofForsyth,Montana Pollution Control Revenue Refunding Bonds (Avista Corporation Colstrip Project)due in
2032 and 2034,respectively,which had been held by Avista Corp.since 2008 and 2009,respectively,were refunded by new variable rate bond issues.The new bonds werenotofferedtothepublicandwerepurchasedbyAvistaCorp.due to market conditions.The Company has the ability to remarket thesebonds to unaffiliated investors at alaterdate,subject to market conditions.So long as Avista Corp.is the holderofthese bonds,the bonds will not be reflected as an asset or a liability on the Balance Sheets.
(2)In March 2022,the Company issued and sold $400.0 millionof4.00 percent first mortgage bonds due in 2052 through a public offering.The total net proceeds from the sale ofthe
bonds were used to repay the borrowingsoutstanding under Avista Corp.'s $400.0 millioncommitted line oferedit,as wellas $250.0 millionof maturing debt.In connection
with the pricing ofthe first mortgage bonds in March 2022,the Company cash settled thirteen interest rate swap derivatives (notionalaggregate amount of $140.0 million)and paid a net amount of $17.0 million.See Note 4 for a discussion ofinterest rate swap derivatives.
The following table details future long-term debt maturities including advances from associated affiliates (see Note 12)(dollan in thousands):
2023 2024 2025 2026 2027 Thereafter TotalDebtmaturities$13,500 $$$$$2,261,547 $2,275,047
Substantially all of Avista Corp.'s owned properties are subject to the lienoftheir respective mortgage indentures.Under the Mortgages and Deedsof Trust (Mortgages)securing theirfirstmortgagebonds(including secured medium-term notes),Avista Corp.may issue additional first mortgage bonds under their specific mottgage in an aggregate principal amountequaltothesumof:
66-2/3 percent ofthe cost or fair value (whichever is lower)ofproperty additions ofthat entity which have not previously been made the basis ofany application under that
entity's Mortgage,or
an equal principal amount ofretired first mortgage bonds ofthat entity whichhave not previously been made the basis ofany applicationunder that entity's Mortgage,or
deposit of cash.
Avista Corp.may not individually issue any additionalfirst mortgage bonds (with certain exceptions in the case ofbonds issued on the basis ofretiæd bonds)unless the particularentityissuingthebondshas"net eamings"(as defined in the Mortgage)for any period of l2 consecutive calendar months out ofthe preceding 18 calendar months that were at leasttwicetheannualinterestrequirementsonallmortgagesecuritiesatthetimeoutstanding,including the first mortgage bonds to be issued,and on all indebtedness ofpriorrank.As ofDecember31,2022,pmperty additions and retired bonds would have allowed,and the net eamings test wouldnot have prohibited,the issuance of $1.4 billion in an aggregateprincipalamountofadditionalfirstmortgagebondsatanassumedinterestrateof8percent.
On March 29,2023,the Company issued and sold $250.0 millionof5.66 percent first mortgage bonds due in 2053 through the private placement market.Aportion ofthe netproceedsfromthesaleofthebondswillbeusedfortheconstructionorimprovementofutilityfacilities,and a portion was used to refinance existing indebtedness incurred for thesepurposes.In connection with the pricing ofthe first moitgage bonds in March 2023,the Company cash settled four interest rate swap derivatives (notional aggregate amount of $40.0million)and received a net amount of $7.5 million.
NOTE 12.ADVANCES FROM ASSOCIATEDCOMPANIES
In 1997,the Company issued Floating Rate Junior Subordinated Deferrable Interest Debentures,Series B,with a principal amount of $51.5 millionto Avista Capital II,an affiliated
business tmst formed by the Company.Avista Capital II issued $50,0 millionof Preferred Trust Securities with a floating distribution rate ofthe Londoninterbank offered rate (LIBOR)
plus 0.875 percent,calculated and resetquarterly.Effective on July 3,2023,the reference to LIBOR in the formulation for the distribution rate on these securities will be replaced,by
operation oflaw,with three-month CME Term Secured Ovemight Financing Rate (SOFR),as calculated and published by CME Group Benchmark Administration,Ltd.(a successor
administrator),plus a tenor spread adjustment of0.26161.Accordingly,the distribution rate on the Preferred Trust Securities will then be three-month CME Term SOFR plus 1.13661
percent.
The distribution ratespaid were as follows duringthe years ended December 31:
2022 2021Lowdistributionrate1.05%0.99%
High distributionrate 5.64%1.10%
Distribution rate at the end ofthe year 5.64%1.05%
Concurrent with the issuance ofthe Preferred Trust Securities,Avista Capital II issued $1.5 millionof Common Trust Securities to the Company.These Preferred Trust Securities may
be redeemed at the option of Avista Capital II at any time and mature on June 1,2037.In December2000,the Company purchased $10.0 millionofthese Preferred Trust Securities.
The Company owns 100 percent of Avista Capital II and has solely and unconditionally guaranteed the payment of distributions on,and redemption price and liquidation amount foi;
the Prefered Tmst Securities to the extent that Avista Capital II has funds available for such payments from the respective debt securities.Upon maturity or priorredemption ofsuch
debt securities,the Preferred Trust Securities will be mandatorily redeemed.
NOTE 13.FAIR VALUE
The carrying values ofcash and cash equivalents,special deposits,accounts and notes receivable,accounts payable and notes payable are reasonable estimates oftheir fairvalues.
Bonds and advances from associated companies are reported at carrying value on the Balance Sheets.
The fair value hierarchy prioritizesthe inputs used to measure fair value.The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements)and the lowest priority to fair values derived fromunobservable inputs (Level 3 measurements).
The three levels ofthe fair value hierarchy are defined as follows:
Level 1 -Quoted prices are available in active markets for identical assets or liabilities.Active markets are those in whichtransactions for the asset or liabilityoccur with
sufficient frequency and volume to provide pricing information on an ongoingbasis.
Level 2 -Pricing inputs are other than quoted prices in active markets includedin Level 1,but which are either directly or indirectly observable as ofthe reporting date.Level 2
includes those financial instruments that are valued using models or other valuation methodologies.These models are primarily industry-standard models that consider various
assumptions,including quoted forward prices for commodities,time value,volatility factors,and current market and contractual prices for the underlying instruments,as wellas other
relevant economic measures.Substantially all ofthese assumptions are observable in the marketplace throughout the full term ofthe instmment,can be derived from observable data
or are supported by observable levels at whichtransactions aæ executed in the marketplace.
Level 3 -Pricing inputs includesignificant inputs that are generally unobservable from objective sources.These inputs may be used with intemally developed methodologies
that result in management's best estimate of fair value.
Financial assets and liabilities aæ classified in theirentirety based on the lowest level ofinput that is significant to the fair value measurement.The Company's assessmentofthe
significance ofa particularinput to the fairvalue measurement requiæs judgment,and may affect the valuation offairvalue assets and liabilities and their placement within the fair
value hierarchy levels.The determination ofthe fair values incorporates various factors that not only include the credit standing ofthe counteiparties involved and the impact of
credit enhancements (such as cash deposits and letters of credit),but also the impact of Avista Corp.'s nonperformance risk on its liabilities.
The following table sets forth the carrying value and estimated fair value ofthe Company's financial instruments not reported at estimated fair value on the Balance Sheetsas of
December31 (dollars in thousands):
2022 2021
Carrying Estimated Carrying Estimated
Value Fair Value Value Fair Value
Bonds(Level2)$1,113,500 $966,881 $963,500 $1,157,651
Bonds (Level 3)1,110,000 805,802 1,110,000 1,258,674
Advances from associated companies (Level 3)51,547 42,836 51,547 43,299
These estimates offairvalue oflong-term debt and long-term debt to affiliated trusts were primarily based on available market information,which generally consists of estimated
market prices from third party brokers for debt with similarrisk and terms.The price ranges obtained from the third party brokers consisted ofparvalues of60.16 to 103.85,where a par
value of l00.00 represents the carrying value recorded on the Balance Sheets.Level 2 long-term debt represents publicly issued bonds with quoted market prices;however,due to
their limited trading activity,they are classified as Level 2 because brokers must generate quotes and make estimates using comparable debt with similar risk and terms ifthere is no
trading activity near a periodend.Level 3 long-term debt consists ofprivate placement bonds and debt to affiliated trusts,whichtypically have no secondary trading activity.Fair
values in Level 3 are estimated based on market prices from third party brokers using secondary market quotes for debt with similar risk and terns to generate quotes for Avista Corp.
bonds.
The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on the Balance Sheets as ofDecember31,2022 at fair
value on a recurring basis (dollars in thousands):
Counterparty
and Cash
Collateral
Level1 Level2 Level3 Netting (1)Total
December 31,2022
Assets:
Energy commodity derivatives (2)$$146,232 $288 $(136,605)$9,915
Foreign currency exchange derivatives 43 43
Interest rate swap derivatives 11,184 11,184
Deferred compensation assets:
Mutual Funds:
Fixed income securities 1,267 1,267
Equitysecurities 6,132 6,132
Total $7,399 $157,459 $288 $(136,605)S 28,541
Liabilities:
Energy commodity derivatives (2)$$258,769 $18,022 $(242,044)$34,747
Foæign curency exchange derivatives 3 3
Interest rate swap derivatives 52 52
Total $$258,824 $18,022 $(242,044)$34,802
The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on the Balance Sheetsas ofDecember31,2021 at fair
value on a recurring basis (dollars in thousands):
Counterparty
and Cash
Collateral
Level 1 Level2 Level 3 Netting (1)Total
December 31,2021
Assets:
Energy commodity derivatives (2)$$34,119 $143 $(31,354)$2,908
Interest rate swapderivatives 2,319 (1,170)1,149Deferredcompensationassets:Mutual Funds:
Fixed income securities 1,809 1,809Equitysecurities7,594 7,594Total$9,403 $36,438 $143 $(32,524)$13,460Liabilities:
Energy commodity derivatives (2)$$41,733 $7,914 $(40,443)$9,204Foreigncuræncyexchangederivatives1919Interestrateswapderivatives25,274 (1,170)24,104Total$$67,026 $7,914 $(41,613)$33,327
(1)The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists.In addition,theCompanynetsderivativeassetsandderivativeliabilitiesagainstanypayablesandreceivablesforcashcollateralheldorplacedwiththesesamecounterparties.
(2)The level 3 energy commodity derivative balances are associated with natural gas exchange agreements
The difference between the amount ofderivative assets and liabilities disclosed in respective levels in the table above and the amount of derivative assets and liabilities disclosed ontheBalanceSheetsisduetonettingarrangementswithcertaincounterparties.See Note 4 for additional discussion ofderivative netting.
To establish fair value for energy commodity derivatives,the Company uses quoted market prices and forward price curves to estimate the fair value of energy commodity derivativeinstrumentsincludedinLevel2.In particular,electric derivative valuations are performed using market quotes,adjusted for periods in between quotable periods.Natural gasderivativevaluationsareestimatedusingNewYorkMercantileExchangepricingforsimilarinstruments,adjusted for basin differences,using market quotes.Where observable inputsareavailableforsubstantiallythefulltermofthecontract,the derivative asset or liabilityis included in Level 2.
To establish fair values for interest rate swap derivatives,the Company uses forward market curves for interest rates for the term ofthe swaps and discounts the cash flows back topresentvalueusinganappropriatediscountrate.The discount rate is calculated by third party brokers according to the terns ofthe swap derivatives and evaluated by the Companyforreasonableness,with consideration given to the potential non-performance risk by the Company.Future cash flows ofthe interest rate swap derivatives are equal to the fixedinterestrateintheswapcomparedtothefloatingmarketinterestratemultipliedbythenotionalamountforeachperiod.
To establish fair value for foreign currency derivatives,the Company uses fonvard market curves for Canadian dollars against the US dollar and multiplies the difference between thelocked-in price and the market price by the notionalamount ofthe derivative.Forward foreign currency market curves are provided by third party brokers.The Company's creditspreadisfactoredintothelocked-in price ofthe foreign exchange contracts.
Deferred compensation assets and liabilities represent funds held by the Company in a Rabbi Trust for an executive deferral plan.These funds consist of actively traded equity andbondfundswithquotedpricesinactivemarkets.
Level 3 Fair Value
Natural Gas Exchange Agreement
For the natural gas commodity exchange agreement,the Company uses the sameLevel 2 brokered quotes described above;however,the Company also estimates the pumhase andsalesvolumes(within contractual limits)as well as the timing ofthose transactions.Changing the timing ofvolume estimates changes the timing ofpurchases and sales,impactingwhichbrokeredquoteisused.Because the brokered quotes can vary significantly from period to period,the unobservable estimates ofthe timing and volume oftransactions can have
a significant impact on the calculated fairvalue.The Company currently estimates volumes and timing oftransactions basedon a most likely scenario using historical data.Historically,the timing and volume oftransactions have not been highly correlated with market prices and market volatility.
The following table presents the quantitative information which was used to estimate the fair values ofthe Level 3 assets and liabilities above as ofDecember 31,2022 (dollars inthousands):
Fair Value (Net)at
December 31,2022 Valuation Technique UnobservableInput RangeNaturalgasexchange$(17,734)Internally derived Forward purchase prices $2.89 -$4.19/mmBTU
weightedavenge $3.47 Weighted Average
costofgas
Forward sales prices $3.11 -$23.47/mmBTU
$8.88 Weighted Average
Purchase volumes 140,000 -370,000 mmBTUs
Salesvolumes 75,000 -310,000 mmBTUs
The valuation methods,significant inputs and resulting fair values described above were developed by the Company's management and are reviewed on at least a quarterly basis toensuretheyprovideareasonableestimateoffairvalueeachreportingperiod.
The following table presents activity for assets and liabilities measured at fairvalue using significant unobservable inputs (Level 3)for the years ended December31 (dollars inthousands):
Natural Gas Exchange
Agreement (1)Year ended December 31,2022:
Balance as of January 1,2022 $(7,771)Total gains or (losses)(realized/unrealized):
Included in regulatory assets (4,740)Settlements (5,223)Endingbalance as of December 31,2022 $(17,734)
Year ended December 31,2021:
Balance as of January 1,2021 $(8,410)
Total gains or (losses)(realized/unrealized):
Included in regulatory assets 4,292
Settlements (3,653)Endingbalance as ofDecember31,2021 $(7,771)
(1)There were no purchases,issuances ortransfers from other categories ofany derivatives instruments duringthe periods presented in the table above.
NOTE 14.COMMON STOCK
The payment ofdividends on common stock could be limited by:
certain covenants applicable to preferred stock (when outstanding)contained in the Company's Restated Articles of Incorporation,as amended (currently there are no
preferred shares outstanding),
certain covenants applicable to the Company's outstanding long-term debt and committed line of credit agreements,
the hydroelectric licensing requirements of section 10(d)ofthe FPA(see Note 1),and
certain requirements undertheOPUC approval ofthe AERC acquisition in 2014.The OPUC's AERC acquisition order requins Avista Corp.to maintain a capital
structure ofno less than 35 percent common equity (inclusive ofshort-tern debt).This limitation may be revised upon request by the Company with approval from theOPUC.
The æquirements ofthe OPUC approval ofthe AERC acquisition are the most restrictive.Under the OPUC restriction,the amount available for dividends at December31,2022 was$258.6 million.
The Company has 10 millionauthorized shares ofpreferæd stock.The Company did not have any preferred stock outstanding as ofDecember31,2022 and 2021.
Common Stock Issuances
The Company issued common stock in 2022 for total net proceeds of $137.8 million.Most ofthese issuances came through the Company's sales agency agmements under which the
sales agents may offer and sell new sharesofcommon stock from time to time.The Company has board and regulatory authority to issue a maximum of5.6 millionsharesunder these
agreements,ofwhich 2.3 millionremain unissued as ofDecember31,2022.In 2022,3.3 millionshareswere issued under these agreements resulting in total net proceeds of $137.2
million.
NOTE 15.COMMITMENTSAND CONTINGENCIES
In the course ofits business,the Company becomes involved in various claims,controveisies,disputes and other contingent matters,including the items described in this Note.Some
ofthese claims,controversies,disputes and other contingent matters involve litigation orother contested proceedings.For all such matters,the Company intends to vigorously protect
and defend its interests and pursue its rights.However,no assurance can be given as to the ultimate outcome ofany paiticular matter because litigation and other contested
pmeeedings are inherently subject to numerous uncertainties.For matters that affect Avista Corp.'s operations,the Company intends to seek,to the extent appropriate,recovery of
incurred costs through the ratemaking pmcess.
Boyds Fire (State of Washington Department ofNatural Resources n Avista)
In August 2019,the Company was served with a complaint,captioned "State of Washington Department ofNatural Resources v.Avista Corporation,"seeking recovery ofup to $4.4millionforfiresuppressionandinvestigationcostsandrelatedexpensesincurredinconnectionwithawildfirethatoccurredinFerryCounty,Washington in August 2018.
Specifically,the complaint alleges that the fire,whichbecame known as the "Boyds Fire,"was caused by a dead ponderosa pine tree falling into an overhead distribution line,andthat
Avista Corp.wasnegligentin failing to identify and remove the tree before it came into contact with the line.Avista Corp.disputes that the tree in question wasthe cause ofthe fire
and that it was negligentin failing to identify and remove it.Additional lawsuits have subsequently been filed by private landowners seeking property damages,and holders of
insurance subrogation claims seeking recovery ofinsurance proceeds paid.
The lawsuits were filed in the Superior Comt ofFerry County,Washington.The Company continues to vigorously defend itselfin the litigation.However,at this time the Company is
unable to predict the likelihood ofan adverse outcome or estimate a range ofpotential loss in the event ofsuch an outcome.
Road11Fire
In April 2022,Avista Corp.received a notice ofclaim from propeity owners seeking damages of $5 millionin connection with a fire that occurred in Douglas County,Washington,in
July 2020.In June 2022,those claimants filed suit in the Superior Court ofDouglas County,Washington,seeking unspecified damages.The fire,whichwas designated as the "Road
11 Fire,"occurred in the vicinity ofan Avista Corp.ll5kv line,resulting in damage to three overhead transmission stmetures.The fire occurred during a high wind event and grew to
10,000 acres before being contained.The Company disputes that it is liable forthe fire and will vigorously defend itselfin the pendinglegal proceeding;however,at this time the
Company is unable to predict the likelihood ofan adverse outcome or estimate a range ofpotential loss in the event ofsuch an outcome.
Labor Day Windstorm
General
In September2020,a severe windstormoccurred in eastem Washington and northem Idaho.The extreme weather event resulted in customer outages and multiple wildfires in the
region.
The Company has become aware ofinstances where,duringthe course ofthe storm,otherwise healthy trees and limbs,located in areas outside its maintenance right-of-way,broke
underthe extraordinary windconditions and caused damage to its energy delivery system at or near what is believed to be the potential areaof origin ofa wildfire.Those instances
includewhat has been referred to as:the Babb Road fire (nearMalden and Pine City,Washington);the Christensen Road fire (near Airway Heights,Washington);the Mile Marker49
fire (nearOrofino,Idaho);and the Kewa Field Fire (near Colville,Washington).These wildfires covered,in total,more than 25,000 acres.The Company estimates approximately 230
residential,commercial and other structuæs were impacted.With respect to the Christensen Road Fire,the MileMarker49 Fire,and the Kewa Field Fire,the Company's investigation
determined that the primary causeofthe fires was extreme high winds.To date,the Company has not found any evidence that the fires were caused by any deficiencies in its
equipment,maintenance activities or vegetation management practices.See fuither discussion belowregarding the Babb Road Fire.
In additionto the instances identified above,the Company is aware ofa 5-acre fire that occurred in Colfax,Washington,whichdamaged several residential stmetures.The Company's
investigation deterninedthat the Company's facilities were not involved in the ignition ofthis fire.
The Company's investigation has found no evidence ofnegligence with respect to any ofthe fires,and the Company will vigorously defend itself against any claims for damagesthat
may be asserted against it with respect to the wildfires arising out ofthe extæme wind event;however,at this time the Company is unable to predict the likelíhood ofan adverse
outcome or estimate a range ofpotential loss in the event ofsuch an outcome.
Babb Road Fim
In May 2021 the Company leamed that the Washington Department ofNatural Resources (DNR)had completed its investigation and issued a report on the Babb Road Fire.The Babb
Road fire covered approximately 15,000 acres and destroyed approximately 220 structures.There are no reports ofpersonal injury or death resulting from the fiæ.
The DNR report concluded,among other things,that
the fire was ignited when a branch ofa multi-dominant Ponderosa Pine tree was broken offby the wind and fell on an Avista Corp.distribution line;
the tree was located approximately 30 feet from the centerofAvista Corp.'s distribution line and approximately 20 feet beyond Avista Corp.'s right-of-way;
the tæe showed some evidence ofinsect damage,damage at the top ofthe tree from porcupines,a small area ofscatring where a lateral branch/leader (LBL)had broken
offin the past,and somepast signs of Gall Rust disease.
The DNR report concluded as follows:"It is my opinion that because ofthe unusual configuration ofthe tree,and its proximity to the powerline,a closer inspection was warranted.A
nearer inspection ofthe tæe should have revealed the cut LBL ends and its previous failure,and necessitated determination ofthe failuæ potentialofthe adjacent LBL,implicated in
starting the Babb Road Fire."
The DNR report acknowledged that,other than the multi-dominant nature ofthe tree,the conditions mentioned above would not have been easily visible without close-up inspection
of,or cutting into,the tree.The report also acknowledged that,while the presence ofmultiple tops wouldhave been visible from the nearby roadway,the tree did not fail at a v-fork
due to the presence ofmultiple tops.The Company contends that applicableinspection standards did not require a closer inspection ofthe otherwise healthy tree,nor was the
Company negligentwith respect to its maintenance,inspection or vegetation management practices.
Nine lawsuits seeking unspecified damages have been filed in connection with the Babb Road fire.These include six subrogation actions filed by insurance companies seeking
recovery for amounts paid to insuæds;two actions on behalfofindividual plaintiffs;and a class action lawsuit.All proceedings have been consolidated for discovery and pre-trial
proceedings,are pendingin the Superior Couit of Spokane County Washington,and variously assert causesofaction for negligence,private nuisance,trespassand inverse
condemnation (a theory of strict liability).
On September 16,2022,the Company filed a motion in the Superior Court of Spokane County,Washington,seeking dismissal ofthe Plaintiffs'inverse condemnation claims as a
matteroflaw on the grounds that they are not legally cognizableunder Washington law.On October 14,2022,the Superior Court heard oral argument on that motion.The Court
concluded the Company's motion involved mixed questions oflaw and fact,and,as a consequence,could not be granted at that stage ofthe proceedings;however,the Court indicated
the Company could bringthe issue before the Court again after discovery is completed.
The Company will vigorously defend itselfin the legal proceedings;however,at this time the Company is unable to predict the likelihood ofan adverse outcome or estimate a range
ofpotential loss in the event of such an outcome.
Colstrip
Colstrip Owners Arbitration and Litigation
Colstrip Units 3 and 4 are owned by the Company,PacifiCorp,Portland General Electric (PGE),and Puget Sound Energy (PSE)(collectively,the "Westem Co-Owners"),as well as
NorthWestem and Talen Montana,LLC (Talen),as tenants in common under an Ownership and Operating Agreement,dated May 6,1981,as amended (O&O Agreement),in the
percentages set forth below:
Co-Owner Unit 3 Unit 4
Avista 15%15%
PacifiCorp 10%10%
PGE 20%20%
PSE 25%25%
NorthWestem 30%
Talen 30%
Colstrip Units 1 and 2,owned by PSE and Talen,were shut down in 2020 and are in the process ofbeing decommissioned.The co-owners ofUnits 3 and4 also own undividedinterestsinfacilitiescommontobothUnits3and4,as well as in certain facilities common to all four Colstrip units.
The Washington Clean Energy Transformation Act (CETA),among otherthings,imposes deadlines by whicheach electric utility must eliminate from its electricity ratesinWashingtonthecostsandbenefitsassociatedwithcoal-fired resources,such as Colstrip.The practical impact of CETAisthat electricity from such resoumes,including Colstrip,maynolongerbedeliveredtoWashingtonretailcustomersafter2025.
The co-owners ofColstrip Units 3 and 4 have differing needs for the generating capacity ofthese units.Accordingly,certain business disagreements have arisen among the co-owners,including,disagreements as to the requirements for shutting down these units.NorthWestern has initiated arbitration pursuant to the O&O Agreement to resolve these businessdisagreements,and two actions have been initiated to compel arbitration ofthose disputes:one by Talen in the MontanaThirteenth Judicial District Court for Yellowstone County,and one by the Western Co-Owners,whichis pending in MontanaFederal District Court.In light ofthe ownership agreements discussed below,the Colstrip owners agreed to stay boththelitigationandthearbitrationuntilMawh2023,at whichtime the proceedings wouldresume absent additionalagreement between the owners.
In addition,the Westem Co-Owners commenced legal proceedings in the MontanaFederal District Court challengingthe constitutionality oftwo changes to Montanalaw enacted in
2021.The first,Senate Bill 265,purported to modify the provisions in the O&O Agreement governing arbitration ofdisputes;and the second,SenateBill 266,made it a violation ofMontana's Consumer Protection Act (MC30-14-103 et seq.)for an ownerofColstrip to either fail to fund its shareof operating costs,or to attempt to bring about a closure ofone orbothunitswithoutunanimousconsent.In September2022,a Magistrate Judge issued proposed Findings and an Order fmding that both Senate Bill 265 and 266 wereunconstitutionaland,in October2022,the District Court Judge adopted the Magistrate's findings and recommendations in full.
Agreement Between Talen Energy and Puget Sound Energy
In September2022,the Company received notice that PSE and Talen entered into an agreement through which PSE has agreed to transfer its 25 percent ownership in Colstrip Units 3and4toTalenattheendof2025.The terms and conditions ofthe agreement are similarin most respects to the NorthWestem Transaction discussed below.
Agreement Between Avista and NorthWestern
On January 16,2023,the Company entered into an agreement with NorthWestern under which the Company will transfer its 15 percent ownership in Colstrip Units 3 and 4 toNorthWestern.There is no monetary exchange includedin the transaction.The transaction is scheduled to close on December31,2025 or such other date as the parties mutually agree
upon.
Under the agreement,the Company will remain obligatedthrough the close ofthe transaction to pay its share of(i)operating expenses,(ii)capital expenditures,but not in excessoftheportionallocableproratatotheportionofusefullifeexpiredthroughthecloseofthetransaction,and (iii)except for certain costs relating to post-closing activities,siteremediationexpenses.In addition,the Company would enter into a vote sharing agreement underwhich it would retain its voting rights with respect to decisions relating to
remediation.
The Company will retain its Colstrip transmission system assets,whichare excluded fiom the transaction.
Under the Colstrip O&O Agreement,eachofthe other owners ofColstrip will have a 90-day period in whichto evaluate the transaction and determine whether to exercise theirrespectiverightsoffirstrefusalastoaportionofthegenerationbeingtumedovertoNorthWestem.
The transaction is subject to the satisfaction ofcustomary closing conditions including the receipt ofany required regulatory approvals,as well as NorthWestern's ability to enterinto
a new coal supply agreement by December31,2024.
The Company doesnot expect this transaction to have a material impact on its financial results.
Burnett et al.v.Talen et al.
Multiple property owners have initiated a legal proceeding (titled Bumett et al.v.Talen et al.)in the MontanaDistrict Court for Rosebud County against Talen,PSE,Pacificorp,PGE,Avista Corp.,NoithWestern,and Westmoreland Rosebud Mining.The plaintiffs allege a failure to contain coal dust in connection with the operation of Colstrip,and seek unspecifieddamages.The parties agreed to temporarily stay the litigation as a result ofthe bankmptcy proceedings initiated by Talen,which agreement was not impacted by the stipulation to liftthestayforpurposesoftheMontanalitigationandarbitration.The Company will vigomusly defend itselfin the litigation,but at this time is unable to predict the outcome,nor anamountorrangeofpotentialimpactintheeventofanoutcomethatisadversetotheCompany's interests.
Westmomland MinePermits
Two lawsuits have been commenced by the MontanaEnvironmental Infornation Center,challengingcertain permits relating to the operation ofthe Westmoreland Rosebud Mine,which provides coal to Colstrip.In the first,the Montana District Court for Rosebud County issued an ordervacating a permit for one areaofthe mine.In the second,the MontanaFederalDistrictComtissuedfindingsandrecommendedthatadecisionapprovingexpansionofthemineintoanewareashouldbevacated,but recommending that the decision nottakeeffectfor365daysfromthedateofafinalorder.Both decisions may be subject to appellate review.Avista Corp.is not a party to either ofthese proceedings,but is continuing tomonitortheprogressofbothlawsuitsandassesstheimpact,ifany,ofthe proceedings on Westmoreland's ability to meet its contractual coal supply obligations.
National Park Service (NPS)-Natural and Cultural Damage Claim
In March 2017,the Company accessedproperty managed by the National Park Service (NPS)to prevent the imminent failure ofa power pole that was surrounded by flood waterin theSpokaneRiver.The Company voluntarily reported its actions to the NPS several days later.Thereafter,in March 2018,the NPS notified the Company that it might seekrecovery forunspecifiedcostsanddamagesallegedlycausedduringtheincidentpursuanttotheSystemUnitResourceProtectionAct(SURPA),54 U.S.C.100721 et seq.In January 2021,theUnitedStatesDepaitmentofJustice(DOJ)requested that the Company and the DOJ renew discussions ielating to the matter.In July 2021,the DOJ communicated that it may seekdamagesofapproximately$2 million in connection with the incidentfor alleged damage to "natural and cultuml resources".In addition,the DOJ indicated that it may seektreble
damages undertheSURPAand state law,bringing its total potential claim to approximately $6 million.
The Company disputes the positiontaken by the DOJ with respect to the incident,as well as the nature and extent ofthe DOrs alleged damages,and will vigorously defend itselfinanylitigationthatmayarisewithrespecttothematter.The Company and the DOJ have agreed to engage in discussions to undentandtheirrespective positions and determinewhetheraresolutionofthedisputemaybepossible.However,the Company cannot predict the outcome ofthe matter.
Rathdrum,Idaho Natural Gas1ncident
In October2021,there was an incident in Rathdrum,Idaho involving the Company's natural gas infrastructure.The incident occurred after a third party damaged those facilitiesduringthecoulseofexcavationwork.The incident resulted in a fire which destroyed one residence and resulted in minor injuries to the occupants.On January 23,2023,the CompanywasservedwithalawsuitfiledintheDistrictCourtofKootenaiCounty,Idaho by one property owner,seeking unspecified damages.The Company intends to vigorously defend itselfinthisaction.
Other Contingencies
In the normal course ofbusiness,the Company has various other legal claims and contingent matters outstanding.The Company believes that any ultimate liabilityarising from theseactionswillnothaveamaterialimpactonitsfmancialcondition,results of operations or cash flows.It is possible that a change could occur in the Company's estimates oftheprobabilityoramountofaliabilitybeingincurred.Such a change,should it occur,could be significant.
The Company routinely assesses,based on studies,expert analysis and legal reviews,its contingencies,obligations and commitments for remediation of contaminated sites,includingassessmentsofrangesandprobabilitiesofæcoveriesfromotherresponsiblepartieswhoeitherhaveorhavenotagreedtoasettlementaswellasrecoveriesfrominsurancecarriers.TheCompany's policy is to accrue and charge to current expense identified exposures related to environmental remediation sites based on estimates of investigation,cleanup andmonitoringcoststobeincurred.
The Company has potential liabilities under the Endangered Species Act and similar state statutes for species of fish,plants and wildlife that have either already been added to theendangeredspecieslist,listed as "threatened"orpetitionedfor listing.Thus far,measures adopted and implemented have had minimal impact on the Company.However,the Companywillcontinuetoseekrecovery,through the ratemaking process,ofall operating and capitalized costs related to these issues.
Under the federal licenses forits hydroelectric projects,the Company is obligatedto protect its property rights,including water rights.In addition,the Company holds additionalnon-hydm water rights.The State of Montanais examining the status ofall water right claims within state boundaries through a general adjudication.Claims within the Clark Fork River
basin could adversely affect the energy productionofthe Company's Cabinet Gorge and Noxon Rapids hydmelectric facilities.The state ofIdaho has initiated adjudicationin
northem Idaho,which will ultimately includethe lowerClark Fork River,the Spokane River and the Coeur d'Alene basin.The Company is and will continue to be a participantintheseandanyotherrelevantadjudicationprocesses.The complexity ofsuch adjudications makes each unlikely to be concluded in the foreseeable future.As such,it is not possiblefortheCompanytoestimatetheimpactofanyoutcomeatthistime.The Company will continue to seekrecovery,through the ratemaking process,ofall costs related to this issue.
NOTE16.REGULATORYMATTERS
PowerCost Deferrals and Recovery Mechanisms
Deferred powersupply costs are recorded as a deferred charge or liabilityon the Balance Sheetsfor future prudence review and recovery or rebate through retail rates.The power
supply costs deferred include certain differences between actual net powersupply costs incurred by Avista Corp.and the costs included in base retail rates.This difference in net powersupplycostsprimarilyresultsfromchangesin:
short-term wholesale market prices and sales and purchase volumes,
the level,availability and optimization ofhydroelectric generation,
the level and availability ofthernal generation (including changes in fuel prices),
retail loads,and
sales of surplus transmission capacity.
In Washington,the ERM allows Avista Corp.to periodically increase or decreaseelectric rates with WUTC approval to reflect changes in powersupply costs.The ERMis an
accounting method used to track certain differences between actual power supply costs,net of wholesale sales and sales of fuel,and the amount includedin base retail rates for
Washington customers and defer these differences (over the $4.0 milliondeadband and sharing bands)for future surcharge or rebate to customers.For2022,the Company recognized a
pre-tax expense of $10.9 millionunder the ERM in Washington compared to a pre-tax expense of $7.7 millionfor 2021.Total net deferred power costs under the ERM were an asset of
$30.5 millionas ofDecember31,2022 and a liabilityof $11.9 millionas ofDecember 31,2021.The deferred powercost asset balance at December31,2022 represents amounts due
from customers.Pursuant to WUTC requirements,should the cumulative deferal balance exceed $30 millionin the rebate or surcharge direction,the Company must make a filing
with the WUTC to adjust customerrates to either return the balance to customers or recover the balance from customers.Avista Corp.makes an annual filing on,or before,April 1 of
each year to provide the opportunity for the WUTC staff and other interested parties to review the prudence of,and audit,the ERM deferred powercost transactions for the prior
calendar year.The cumulative surcharge balance as ofDecember 31,2022 exceeded $30 millionand as a result,the Company's April 2023 filing contained a proposed rate surcharge
to be received from customers over a one-year period,with new rates effective July 1,2023.
Avista Corp.has a PCAmechanism in Idaho that allows it to modify electric rates on October 1 ofeach year with IPUC approval.Under the PCAmechanism,Avista Corp.defers 90
percent ofthe difference between certain actual net powersupply expenses and the amount included in base retail rates for its Idaho customers.The October 1 rate adjustments recover
orrebate powercosts deferred duringthe preceding July-June twelve-month period.Total net powersupply costs deferred under the PCAmechanism were an asset of $16.3 million as
ofDecember 31,2022 and $10.8 millionas ofDecember 31,2021.Deferred power cost assets represent amounts due from customers and liabilities represent amounts due to
customers.
Natural Gas Cost Deferrals andRecovery Mechanisms
Avista Corp.files a PGAin all three statesit servesto adjust natural gas rates for 1)estimated commodity and pipelinetransportation costs to selve natural gas customets for the
coming year;and 2)the difference between actual and estimated commodity and transportation costs for the prior year.Total net deferred natum1 gas costs were an asset of $52.1millionasofDecember31,2022 and $21.0 millionas ofDecember31,2021.Asset balances represent amounts due from customers and liabilities represent amounts due to customers.
Decoupling and EarningsSharingMechanisms
Decoupling(also knownas an FCAin Idaho)is a mechanism designed to sever the link between a utility's revenues and consumers'energy usage.In each of Avista Corp.'s
jurisdictions,Avista Corp.'s electric and natural gas revenues are adjusted so as to be basedon the numberofcustomers in certain customerrate classes and assumed "normal"kilowatt
hourand therm sales,mther than being based on actual kilowatt hour and thern sales.The difference between revenues based on the numberof customers and "normal"sales and
revenues based on actual usage is deferred and eithersurcharged orrebated to customers beginningin the following year.Only residential and certain commercial customer classes are
included in decouplingmechanisms.
Washington Decouplingand EarningsSharing
In Washington,the WUTC approved the Company's decouplingmechanisms for electric and natural gas for a Sve-year period beginningJanuary 1,2015.In 2019,the WUTC
approved an extension ofthe mechanisms for an additional Sve-year term through March 31,2025,with one modification in that new customers added after any test periodwouldnot
be decoupled until included in a future test period.
Electric and natural gas decoupling surcharge rate adjustments to customers are limited to a 3 percent increase on an annual basis,with any remaining surcharge balance carried
forward for recovery in a future period.There is no limiton the level ofrebate rate adjustments.
The decouplingmechanisms each includean after-the-fact eamings test.At the end ofeach calendar year,separate electric and natural gas eamings calculations are made for the
calendar year just ended.These eamings tests reflect actual decoupled revenues,normalized powersupply costs and othernormalizing adjustments.Throughthe 2022 general rate
cases,the Company modified its eamings test so that ifthe Company eams more than 0.5 percent higher than the rate ofretum authorized by the WUTC in the multi-yearrate plan,the
Company would defer these excess revenues and laterretum them to customers.
Idaho FCA and EarningsSharingMechanisms
In Idaho,the IPUC approved the implementation ofFCAs for electric and natural gas through March 31,2025.
Omgon DecouplingMechanism
In Oregon,the Company has a decouplingmechanism for natural gas.An eamings review is conducted on an annual basis.In the annual eamings review,ifthe Company eams more
than 100 basis points above its allowedretum on camings,one-third ofthe eamings above the 100 basis points wouldbe deferred and laterretumed to customers.The eamings review
is separate fromthe decouplingmechanism and was in place priorto decoupling.
Cumulative Decouplingand EarningsSharingMechanism Balances
As ofDecember31,2022 and December 31,2021,the Company had the following cumulative balances outstanding related to decouplingand eamings sharing mechanisms in its
various jurisdictions (dollars in thousands):
December 31,December 31,
2022 2021
Washington
Decoupling(rebate)surcharge $(13,210)$13,522
Idaho
Decouplingrebate $(7,889)$(1,450)
Provision for earnings sharing rebate (686)(686)
Oregon
Decouplingsurcharge $2,853 $3,152
There were no eamings sharing rebates associated with Washington and Oregon as ofDecember 31,2022 and December 31,2021.
2022 Washington General Rate Cases
In June 2022,the Company and certain other parties entered into a Settlement Agreement that resolved all issues in the Company's electric and natural gas general rate cases originally
filed in January 2022.The Public Counsel Unit ofthe Washington Attorney General's Office (Public Counsel),while a party to the rate cases,did not join in the Settlement Agæement.
The Settlement Agreement wasreached afternegotiationofall issues but is "results-focused"--that is,it represents agreement among all parties (except Public Counsel)as to the
Company's overall revenue requirement,without specifying the details ofany component except the rate ofretum on rate base.On December 12,2022,the WUTC issued an order
approving the multi-paity Settlement Agreement.
On December22,2022,Public Counsel filed a Petition forReconsideration requesting the WUTC to reconsider its ruling on the Settlement Agreement.Public Counsel's primary issue
is related to the "results-focused"approach used by the settling parties and approved by the WUTC.
On January 30,2023,the WUTC issued an order denying the Petition for Reconsideration,stating that Public Counsel was afforded eve1yopportunity to exercise its rights to oppose
the settlement,and reiterated that the end results ofthe settlement produced rates that were equitable,fair,just,reasonable and sufficient.
NOTE 17.SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information consisted ofthe following items for the years ended December 31 (dollars in thousands):
2022 2021
Cashpaidforinterest $101,077 $92,143
Cash paid for income taxes 532 1,476
Cash received for income tax refunds (86)(22,330)
NOTE 18.SUBSEQUENTEVENTS
The Company hasevaluated its subsequent events,noting the following events have occurred subsequent to December31,2022:
The Company entered an agreement withNorthwestem to transfer its ownership of Colstrip by December31,2025.See further discussion ofthe agreement within Note
15.
Effective April 1,2023,The Company extended its contract to purchase the output of Lancaster through 2041.The Company is currently evaluating the impact ofthisextensiononthefmancialstatements.
Effective January 1,2023,the Climate Commitment Act (CCA)went into effect in the State of Washington.The law requires the Company to secureenough carbonallowancestocoverthecarbonemissionsoveracertainamounteachyear.The Company will purchase allowances recorded as inventory,and will record emissionsobligationsandemissionsexpenseassociatedwithsales.As allowances are used and retired,the Company will remove both the inventoly and emissions obligationfromthebalancesheet.The Company expects to purchase allowances forits Washington natuml gas and Idaho electric opemtions.Effective January 1,2023,the CompanyreceivedregulatoryapprovalinWashingtontodeferincrementalcostsrelatedtocomplyingwiththeCCAforitsnaturalgasoperations.
FERC FORM No.2 (REV 12-07)
Page 122.1
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)A Resubmission
Summary of Utility Plantand Accumulated Provisions for Depreciation,Amortization and Depletion
1 UTILITYPLANT
3 Plantin Service (Classified)7,397,867,336 5,085,219,499 1,586,288,461 726,359,376
4 Property Under Capital Leases 68,237,837 68,237,837
5 PlantPurchased or Sold
6 Completed Construction not
Classified
7 Experimental PlantUnclassified
TOTAL Utility Plant (Total of lines 38thru7)7,466,105,173 5,085,219,499 1,586,288,461 794,597,213
9 Leased to Others
10 Held for Future Use 10,818,719 9,363,493 190,585 1,264,641
11 Construction Work in Progress 155,475,677 119,839,270 6,229,421 29,406,986
12 Acquisition Adjustments 262,416 262,416
13 TOTAL Utility Plant(Total of lines 8 7,632,661,985 5,214,684,678 1,592,708,467 825,268,840
Accumulated Provisions for
14 Depreciation,Amortization,&2,624,302,472 1,848,976,646 479,998,420 295,327,406
Depletion
15 4etUtility Plant(Total of lines 13 and 5,008,359,513 3,365,708,032 1,112,710,047 529,941,434
DETAILOFACCUMULATED
16 PROVISIONSFOR
DEPRECIATION,AMORTIZATION
AND DEPLETION
18 Depreciation 2,422,934,895 1,814,695,451 479,138,993 129,100,451
Amortization and Depletion of
19 Producing Natural Gas Land and
Land Rights
20 Amortization of Underground
Storage Land and Land Rights
21 Amortization of Other Utility Plant 201,367,577 34,281,195 859,427 166,226,955
22 TOTAL In Service (Total of lines 18 2,624,302,472 1,848,976,646 479,998,420 295,327,406thru21)
24 Depreciation
25 Amortization and Depletion
26 TOTAL Leased to Others (Total of
lines 24 and 25)
FERCFORMNo.2 (12-96)
Page 200
Summary of Utility Plant and Accumulated Provisions for Depreciation,Amortization and Depletion
ŸotaÏÜompany ÉorLineltemtheCurrent Electric Gas Other(Specify)Common
No.(a)QuarterlYear (c){d){e)(f)
(b)
28 Depreciation
29 Amortization
30 TOTAL Held for Future Use (Total of
lines 28 and 29)
31 Abandonment of Leases (Natural
Gas)
32 Amortization of PlantAcquisition
Adjustment
TOTAL Accum.Provisions (Should
33 agree with line 14 above)(Total of 2,624,302,472 1,848,976,646 479,998,420 295,327,406
lines 22,26,30,31,and 32)
FERCFORM No.2 (12-96)
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This report is:
Name of Respondent:(1)O An Original Date of Report Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Gas Plant in Selvice (Accounts 101,102,103,and 106)
2 301 Organization
3 302 Franchise and Consents
4 303 MiscellaneousintangiblePlant 2,664,583 289,098 24,125 2,929,556
Total Intangible Plant(Total of5 2,664,583 289,098 24,125 2,929,556lines2thru4)
6 PRODUCTIONPLANT
7 Natural Gas Production and
Gathering Plant
8 325.1 Producing Lands
9 325.2 Producing Leaseholds
10 325.3 Gas Rights
11 325.4 Rights-of-Way
12 325.5 Other Land and Land Rights
13 326 Gas Well Structures
14 327 Field Compressor Station
Structures
15 328 Field Measuring and
Regulating Station Structures
16 329 Other Structures
17 330 Producing Gas Wells-Well
Construction
18 331 Producing Gas Wells-Well
Equipment
19 332 Field Lines
20 333 Field Compressor Station
Equipment
21 334 Field Measuring and
Regulating Station Equipment
22 335 Drilling and Cleaning
Equipment
23 336 Purification Equipment
24 337 Other Equipment
25 338 Unsuccessful Exploration and
Development Costs
339 Asset Retirement Costs for
26 Natural Gas Production and
Gathering Plant
27 Total Production and GatheringPlant(Total of lines 8 thru 26)
Gas Plant in Service (Accounts 101,102,103,and 106)
28 PRODUCTSEXTRACTION
PLANT
29 340 Land and Land Rights
30 341 Structures and Improvements
31 342 Extraction and Refining
Equipment
32 343 Pipe Lines
33 344 Extracted Products Storage
Equipment
34 345 Compressor Equipment
35 346 Gas Measuring and
Regulating Equipment
36 347 Other equipment
37 348 Asset Retirement Costs for
Products Extraction Plant
38 Total Products Extraction Plant
(Total of lines 29 thru 37)
39 Total Natural Gas Production Plant
(Total of lines 27 and 38)
Manufactured Gas Production
40 Plant (Submit supplementary 59,924 59,924
information in a footnote)
41 Total Production Plant (Total of 59,924 0 59,924lines39and40)
42 NATURAL GAS STORAGE ANDPROCESSINGPLANT
44 350.1 Land 1,313,516 1,313,516
45 350.2 Rights-of-Way 66,742 66,742
46 351 Structures and Improvements 2,568,116 472,665 3,040,781
47 352 Wells 18,922,731 472,665 19,395,396
48 352.1 Storage Leaseholds and
Rights
49 352.2 Reservoirs 1,667,492 1,667,492
50 352.3 Non-recoverable Natural 5,810,311 5,810,311Gas
51 353 Lines 2,229,534 2,229,534
52 354 Compressor Station 18,186,086 472,666 18,658,752Equipment
53 355 Measuring and Regulating 1,710,400 472,667 2,183,067Equipment
54 356 Purification Equipment 560,248 560,248
55 357 Other Equipment 2,701,856 472,665 3,174,521
56 358 Asset Retirement Costs for
Underground Storage Plant
Gas Plant in Service (Accounts 101,102,103,and 106)
57 Total Underground Storage Plant 55,737,032 2,363,328 58,100,360(Total of lines 44 thru 56)
59 360 Land and Land Rights
60 361 Structures and Improvements
61 362 Gas Holders
62 363 Purification Equipment
63 363.1 Liquefaction Equipment
64 363.2 Vaporizing Equipment
65 363.3 Compressor Equipment
66 363.4 Measuring and Regulating
Equipment
67 363.5 Other Equipment
363.6 Asset Retirement Costs for68OtherStoragePlant
69 Total Other Storage Plant (Total of
lines 58 thru 68)
70 Base Load Liquefied Natural Gas
Terminaling and Processing Plant
71 364.1 Land and Land Rights
72 364.2 Structures and
Improvements
73 364.3 LNG Processing Terminal
Equipment
74 364.4 LNG Transportation
Equipment
75 364.5 Measuring and Regulating
Equipment
76 364.6 Compressor Station
Equipment
77 364.7 Communications Equipment
78 364.8 Other Equipment
79 364.9 Asset Retirement Costs for
Base Load Liquefied Natural Gas
Total Base Load Liquified Natural
80 Gas ,Terminating and Processing
Plant (Total of lines 71 thru 79)
Total Nat'l Gas Storage and
81 Processing Plant(Total of lines 57,55,737,032 2,363,328 58,100,360
69,and 80)
83 365.1 Land and Land Rights
84 365.2 Rightsof-Way
85 366 Structures and Improvements
86 367 Mains
87 368 Compressor Station
Equipment
88 369 Measuring and Regulating
Station Equipment
89 370 Communication Equipment
90 371 Other Equipment
91 372 Asset Retirement Costs for
Transmission Plant
92 Total Transmission Plant (Total of
line 81 thru 91)
94 374 Land and Land Rights 1,584,263 63,564 1,647,827
95 375 Structures and Improvements 2,236,483 26,208 3,451 2,259,240
96 376 Mains 705,689,470 55,694,367 409,902 760,973,935
97 377 Compressor Station
Equipment
98 378 Measuring and Regulating 13,146,637 653,829 5,565 13,794,901StationEquipment-General
99 379 Measuring and Regulating 9,853,403 251,254 10,104,657StationEquipment-City Gate
100 380 Services 451,435,611 29,455,496 206,177 480,684,930
101 381 Meters 167,072,484 11,133,008 1,130,184 177,075,308
102 382 Meter Installations
103 383 House Regulators
104 384 House Regulator installations
105 385 Industrial Measuring and 6,511,414 35,537 6,546,951RegulatingStationEquipment
106 386 Other Property on Customers'
Premises
107 387 Other Equipment 601 601
108 388 Asset Retirement Costs for
Distribution Plant
Total Distribution Plant (Total of109 1,357,530,366 97,313,263 1,755,279 1,453,088,350lines94thru108)
111 389 Land and Land Rights 3,918,902 (2,368)3,916,534
112 390 Structures and Improvements 29,454,978 245,334 312,080 (53,999)29,334,233
113 391 Office Fumiture and 474,505 92,266 150,874 415,897Equipment
114 392 Transportation Equipment 20,542,768 1,081,571 562,618 150,237 21,211,958
115 393 Stores Equipment 243,144 243,144
Gas Plant in Service (Accounts 101,102,103,and 106)
nalance at aiance atindLineAccountBeginningofYearAdditionsRetirementsAdjustmentsTransfersofYearNo.(a)(b)(c)(d)(e)(f)
116 394 Tools,Shop,and Garage 10,037,265 509,843 66,566 10,480,542Equipment
117 395 Laboratory Equipment 452,276 452,276
118 396 Power Operated Equipment 4,273,025 123,604 4,149,421
119 397 Communication Equipment 1,917,901 6,537 28,153 1,896,285
120 398 Miscellaneous Equipment 9,092 889 9,981
121 Su0btotal(Total of lines 111 thru 71,323,856 1,934,072 1,243,895 96,238 72,110,271
122 399 Other Tangible Property
123 399.1 Asset Retirement Costs for
General Plant
124 Total General Plant(Total of lines 71,323,856 1,934,072 1,243,895 96,238 72,110,271121,122,and 123)
125 Total (Accounts 101 and 106)1,487,315,761 101,899,761 3,023,299 96,238 1,586,288,461
126 Gas Plant Purchased (See
Instruction 8)
127 (Less)Gas PlantSold (See
Instruction 8)
128 Experimental gas plant
unclassified
129 Total Gas Plant in Service (Total of 1,487,315,761 101,899,761 3,023,299 96,238 1,586,288,461lines125thru128)
FERCFORM No.2 (12-96)
Page 204
This report is:
Name of Respondent (1)O An Original Date of Report:YeariPeriod of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)A Resubmission
Gas Plant Held for Future Use (Account 105)
1
Gas Distribution Mains and Services,Coeur d'Alene'03/01/2000 12/31/2026 190,585
Idaho
45 Total 190,585
FERCFORM No.2 (12-96)
Page 214
This report is:
Narne of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubrnission
Construction Work in Progress-Gas (Account 107)
Line Description of Project ÕomstrucŠon woÄ in progress -Õas Estimated Additional Cost of ProjectNo.(a)(Acco t 107)
1 Gas Replace-St&Hwy 1,613,336 197,985
2 Minor Projects under $1,000,000 4,616,085 12,268,259
45 TOTAL 6,229,421 12,466,244
FERCFORM No.2 (12-96)
Page 216
This report is:
Name of Respondent (1)O An Original Date of Report:YeariPeriod of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
General Description of Construction Overhead Procedure
1.Components of Formula (Derived from actual book balances and actual cost rates):
(1)Average Short-Term Debt s
181,958,000
(2)Short-Term Interest 2.72%
(3)Long-Term Debt 2,113,500,000 47.42%d
4.95%
(4)Preferred Stock P 0%p
(5)Common Equity c
2,161,172,543 48.49%°
9.4%
(6)Total Capitaization 4,456,630,543 96%
(7)Average Construction Work in w
Progress Balance 207,349,000
2.Gross Rate for Borrowed Funds s(S/W)+d[(D/(D+P+C))(1-(S/W))]2.69%
3.Rate for Other Funds [1-(S/W)][p(PI(D+P+C))+c(C/(D+P+C))]-0.58%
.Weighted Average Rate Actually Used for the Year:
(a)Rate for Borrowed Funds -2.69%
(b)Rate for Other Funds -0.58%
FERCFORM No.2 (REV12-07)
Page 218
This report is:
Name of Respondent (1)O An Original Date of Repoit:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108)
Section A.BALANCES AND CHANGESDURINGYEAR
1 Balance Beginning of Year 447,029,979 447,029,979 0
2 Depreciation Provisions for Year,Charged
to
3 (403)Depreciation Expense 42,539,340 42,539,340
4 (403.1)Depreciation Expense for Asset 0RetirementCosts
5 (413)Expense of Gas Plant Leased to
Others
6 Transportation Expenses -Clearing 1,394,062 1,394,062
7 Other Clearing Accounts
8 Other Clearing (Specify)(footnote details):
9.1
9.2
9.3
9.4
9.5
10 TOTAL Deprec.Prov.for Year (Total of 43,933,402 43,933,402 0 0lines3thru8)
12 Book Cost of PlantRetired 1,107,911 1,107,911
13 Cost of Removal 290,385 290,385
14 Salvage (Credit)
15 TOTAL Net Chrgs for Plant Ret.(Total of 1,398,296 1,398,296 0 0lines12thru14)
16 Other Debit or Credit Items (Describe in
footnote details)
17.1 Change in RWIP (2,213,551)(2,213,551)
17.2 AMI/MDMDeferral Reclass (4,107,087)(4,107,087)
17.3 Change in APx Accrual (3,232)(3,232)
17.4 Transfers 79,850 79,850
17.5 General PlantCommon Allocated (6,978,664)(6,978,664)
18 Book Cost of Asset Retirement Costs
19 Balance End of Year (Total of lines 479,138,993 479,138,993 0 01,10,15,16 and 18)
Section B.BALANCES AT ENDOF
YEAR ACCORDINGTO FUNCTIONAL
CLASSIFICATIONS
21 Productions-Manufactured Gas
FERC ORMNo.2(12-96)
Page 219
Accumulated Provision for Depreciation of Gas Utility Plant(Account 108)
Gas Plantheld for Êuture Gas Plant Leased toLineHemTotal(c+d+e)Gas Plant in Service Use OthersNo.(a)(b)(c)
22 Production and Gathering-Natural Gas
23 Products Extraction-Natural Gas
24 Underground Gas Storage 20,852,456 20,852,456
25 Other Storage Plant
26 Base Load LNG Terminaling and
Processing Plant
27 Transmission
28 Distribution 430,860,580 430,860,580
29 General 27,425,957 27,425,957
30 TOTAL (Total of lines 21 thru 29)479,138,993 479,138,993 0 0
FERCFORM No.2 (12-96)
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This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Gas Stored (Accounts 117.1,117.2,117.3,117.4,164.1,164.2,and 164.3)
ÑoncurrerÑ(Ä countUneDescription(Account 117.1)(Account 117.2)117.3)(Account 117.4)
No.(a)(b)(c)(e)
1 Balance at Beginning of Year 6,992,076 0 0 0
2 Gas Delivered to Storage
3 Gas Withdrawn from Storage
4 Other Debits and Credits
5 Balance at End of Year 6,992,076 0 0 0
6 Dth 1,253,060
7 Amount Per Dth 5.58
FERCFORMNo.2 (REV 04-04)
Page 220
Gas Stored (Accounts 117.1,117.2,117.3,117.4,164.1,164.2,and 164.3)
Line Òurrent (Àccount ÏÕÀ.LÑÕ (ÀccountÍŠÑ L.ÑŠ (Ãccount iŠŠ.Š Ÿotal
No.(f)(gg (h)(i)
1 ±17.603,996 0 0 24,596,072
2 56,596,703 56,596,703
3 47,412,673 47,412,673
4 0 0
5 26,788,026 0 33,780,102
6 3,827,753 5,080,813
7 6.9984 6.6486
FERCFORM No.2 (REV 04-04)
Page 220
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
FOOTNOTEDATA
fa)Concept:GasStoredCurrent
Fuel is accounted for within injections and withdrawal accounts.
All gas reported is current working gas.Avista uses the inventory method to report all working gas stored.
FERCFORMNo.2(REVO4-04)
Page 220
This report is:
Name of Respondent (1)2 An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Investments (Account 123,124,and 136)
Investment in
1 Avista Capital Il false 11,547,000 0 0 11,547,000
(123010)
Total Investment
2 in Associated 11,547,000 0 0 11,547,000
Companies
Other Investment
1
-WZN Loans 59,354 0 59,354Sandpoint
(124350)
Other Investment
2 -Coli Cash 34,625,304 (3,341,847)37,967,151
Value (124600)
Other Investment
-Coli3 (34,625,304)3,341,847 (37,967,151)Borrowings
(124610)
Other Investment
4 -WZN Loans 18,535 4,441 14,094
Oregon (124680)
5 Total Other 77,889 0 4,441 73,448Investments
Temp Cash
1 Investments 153,241 343,332 496,573
(136000)
Total Temporary
2 Cash 153,241 343,332 496,573
Investments
Total4 11,778,131 343,332 4,441 12,117,022Investments
FERCFORM No.2 (12-96)
Page 222
This report is:
Name of Respondent:(1)2 An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Investments in Subsidiary Companies (Account 123.1)
ÕÑn or
Amount of Equity in Amount of Loss from
Line Descripden ef inyestment DateAtquÏred Date of filaturity investmentat Subsidiary ve hivestrnèntat investment
No.(a)(b)(p)Beginning of Year earnings for Year End of Year Disposed
(d)(e)(g)of
(h)
Investment in Avista
1 Capital 01/01/1997 256,138,971 256,138,971
2 investment in AERC 89,816,380 89,816,380
3 AERC-Equity in 18,700,247 7,372,004 5,000,000 21,072,251Eamings
4 AvaistLCsapital-Equity in (138,689,885)32,423,253 (106,266,632)
40 3TALCost of Account Total 225,965,713 39,795,257 5,000,000 260,760,970
FERCFORM No.2 (12-96)
Page 224
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Prepayments (Acct 165),Extraordinary Property Losses (Acct 182.1),Unrecovered Plant and Regulatory Study Costs (Acct 182.2)
Line No.Nature of Payment Balance at End of Year (in dollars)
(a)(b)
PREPAYMENTS(ACCOUNT165)
1 Prepaid insurance 3,981,820
2 Prepaid Rents 4,766
3 Prepaid Taxes 4,517,894
4 Prepaid Interest
5 Miscellaneous Prepayments 19,807,002
6 TOTAL 28,311,482
FERCFORM No.2 (12-96)
Page 230a
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Other Regulatory Assets (Account 182.3)
Line ÖescripŠon andiurposeofóÑter Amortizatio Per Regu atory Citation Šalance at¯Ëeginning
Debits
No.Regulat Assets (b)(c)Current arterlYear
1 WA Excess Nat Gas Line Extension 6,463,028Allowance
2 eg Asset Post Ret Liabilility 171,371,633 6,014,594
3 Regulatory Asset FAS 109 Utility 93,904,984 1,368,078Plant
4 Regulatory Asset FAS 109 DSIT 2,347,130 2,095,196NonPlant
5 Regulatory Asset Lake CDA 38,925,962Settlement-Varies
6 Reg Assets-Decoupling Surcharges 10,879,978 15,722,773-2years
7 eg Asset -Colstrip 10,793,262 6,334,788
8 Regulatory Asset Commodity MTM 15,385,297 142,848,597ST&LT
9 Regulatory Asset FAS 143 Asset 2,037,861 127,998RetirementObligation
10 egulatory Asset Workers Comp 887,008 376,609
11 Interest Rate Swap Asset 199,753,782 17,087,128
12 DSM Asset 3,974,177 64
13 Deferred ITC 3,840,019
14 Regulatory Asset MDM System 36,007,664
15 Regulatory Asset BPA Residential 1,140,077 1,904,691Exchange
16 egulatory Asset FISERV 1,092,857 2,481
17 Regulatory Asset AFUDC(PIS,WIP)55,034,683 40,961,568&Equity DFIT
18 Regulatory Asset ID PCA Deferral 10,774,982 20,794,818
19 Existing Meters/ERTS Retirement 21,415,525 326,004
Def
20 Regulatory Asset Colstrip 1,500,000 0CommunityFund
21 egulatory Asset COVID-19 1,980,427 798,350
22 Regulatory Asset Energy Imbalance 715,789 28,885Market
FER(:FORM No.2 (REV 124)7)
Page 232
Other Regulatory Assets (Account 182.3)
23 egulatory Asset Oregon CAT Tax 898,620 47,534
24 Regulatory Asset-Wildfire 4,383,450 18,254,023
Resiliency
25 Deferral for CS2 &Colstrip (O&M,5,109,886 682,831
Excess Depr)
26 Regulatory Asset Tax Basis Flow 131,806,591 6,466,961
through
27 Tax Reform Deferral 685,595 0
28 er Regulatory Assets 52,641 151,256
29 Regulatory Asset Pension 0 11,827,588
Settlement Deferral
30 Regulatory Asset Energy 0 219,732
Affordability Act
31 Unrealized Currency Exchange 0 1,554,060
FERCFORM No.2 (REV 12-07)
Page 232
Other Regulatory Assets (Account 182.3)
Written of During Wütten off During Pedod Amount Wiitten off During PeriodAinountLineQuarter/Year Account Balanceat End of CurrentGuarterMeara
No.Cha ed Rec red Deemed U coverablé
1 407 2,134,643 4,328,385
2 228 48,539,097 128,847,130
3 283 14,723,774 80,549,288
4 283 4,442,326
5 407 1,116,805 37,809,157
6 456,495 17,513,449 9,089,302
7 407 2,151,579 14,976,471
8 244,175 27,959,682 130,274,212
9 403 678 2,165,181
10 242 274,589 989,028
11 Various 30,921,856 185,919,054
12 Various 290,889 3,683,352
13 283,410 70,968 3,769,051
14 407,419 3,626,799 32,380,865
15 407 1,745,820 1,298,948
16 407,419 688,895 406,443
17 Various 36,334,000 59,662,251
18 557,419 15,227,806 16,341,994
19 108,407 2,282,031 19,459,498
20 1,500,000
21 186,407 1,537,005 1,241,772
22 407 45,555 699,119
23 407,419 317,905 628,249
24 184 4,450,952 18,186,521
25 182,407 3,917,936 1,874,781
26 0 138,273,552
27 254 685,595 0
28 407,419 105,529 98,368
29 11,827,588
30 0 219,732
31 143 61,450 1,492,610
40 216,725,287 912,434,228
FERCIORMNo.2(REV12-07)
Page 232
FOOTNOTEDATA
a)Concept:DescriptionAndPurposeOfOtherRegulatolyAssets
Residential Schedule 101 customers who receive a natural gas line extension as part of conversion to natural gas from another fuel source.Amortization for a
period of 3 years on the excess allowance exceeding the costof the line extension.
(b)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Recognition of the overfunded and underfunded status of a defined benefit post retirement plan based on ASC 715 for financial reporting.
(c)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferred tax flow through balance on utility plant.Amortization occurs over book life of respective utility plant assets.
£d)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
WA Docket UE-080416,ID Order AVU-E-08-01,Amortization thru 2059.
fe)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Decoupling revenue deferrals are recognized during the period they occur,subject to certain limitations.Revenue is expected to be collected within 24 months of
the deferral.
£f)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
For Washington Electric,amortization period is 33.75 years as per Order09,dockets UE-190334,UG-190335,UE-190222 (Consolidated).For Idaho Electric,
amortization is for 34.75 years as per Order 34276,AVU-E-18-03.Amortization ends in 2054 for both jurisdictions.
£g)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Washington Docket#UE-002066 and Idaho Order#28648
£h)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Regulatory Assets related to deferred ARO expenses for Kettle Falls and Coyote Springs thermal plants.The expenses will not be collected from Customers until
actual work is performed.
fj)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Quarterly adjustments to workers comp resente for current unpaid claims.
Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Settled swaps are amortized over the life of the associated debt.
Ik)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Amortization period varies depending on timing of transactions.
Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Amortization period varies depending on underlying transactions.
(m)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Washington Dockets UE-180418,UG-180419
(n)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Avista is a participant in the Residential Exchange Program with Bonneville Power Administration.Customers served under Schedules 1,12,22,32,and 48 are
given a rate adjustment based on Schedule 59 for Washington and Idaho.Amortization is based on customer usage.
fo)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Idaho Order#33494,Docket Nos.AVU-E-16-01 and Stipulation and Settlement Docket#AVU-E-19-04
(p_)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferring the difference between FERCformula and State approved AFUDCrates from 2010 to present.
(g)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Washington Docket#UE-OO2066 and Idaho Order#28648
(r)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
|Deferral of customer portion for future rate recovery.The funds are set aside to help the Colstrip community transition away from economic activity related to coal-
fired generation.
s)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferral of COVID-19 costs as per Idaho PUCOrder No.34718,Oregon PUCOrder No.20-401,Docket UM 2069 and WA UTC Order No.01,Dockets UE-200407
and UG-200408.
(t)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
idaho PUCOrder No.34606.Deferral of costs related to Avista's entry in the Energy Imbalance Market in March 2022.
Lu)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Oregon PUCOrder No.20-398,Docket UM-2042
Ív)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferral of O&M wildfire expenses as per Idaho PUCOrder 34883 and WA Dockets UE-200900,UG-200901,and UE-200894.
(w)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
WA Order 09,Docket Nos.UE-190334,UG-190335,UE-190222.
£x)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Accounting method change for federal income tax expense associated with Industry Director Directive No.5 mixed service costs for meters.
Ly)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Balance remaining after 1 year amortization of 2019 Temporary Tax Rebate based on Oregon Advice#19-01=G.
(z)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferred Regulatory Fees of $98,369 refers to Oregon Docket No.UG 415,Advice#21-06-G.Amortization of amounts deferred previously in Order No.20-254 in
UG 395.
(aa)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Pending applications to defer expected impacts associated with the occurrence of pension events and amortization over 12 years -Idaho Case Nos.AVU-E-22-16
and AVU-G-22-08,Washington Dockets UE-220898 and UG-220899,Oregon UM 2267.
£ab)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Deferral of costs associated with Oregon House Bill 2475.
(ac)Concept:DescriptionAndPurposeOfOtherRegulatoryAssets
Recognition of other liabilityrelated to foreign exchange hedge rates over a two year period.
PERCFORM No.2 (REV 12-07)
Page 232
This report is:
Name of Respondent (1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)A Resubmission
Miscellaneous Deferred Debits (Account 186)
1 Reg Asset-Battery Storage 3,848,745 VAR
2 Colstrip Common Facility 3,466,641 VAR
3 PlantAlloc of Clearing Joumal 8,118,225 VAR
4 Reg Asset -ERM 7,929,924 27,869,273
5 Gas Supply Transactions 532,891 VAR
6 Reg Asset -Decoupling Deferred 14,174,956 VAR
7 Reg Asset -COVID 19 Deferral 11,610,194 VAR
8 Prepaid Pension 0 13,381,750
9 Nez Perce Settlement 113,937 VAR
10 Garden Springs Interconnection 30,124 75,000
11 Misc.Deferred Debits <$100,000 756,057 VAR
12 ERM,DSM &BPA Tariff Riders Expense 181,230 253
39 Miscellaneous Work in Progress
40 TOTAL 50,762,924 41,326,023
FERCFORM No.2 (12-96)
Page 233
Miscellaneous Deferred Debits (Account 186)
1 426,652 3,422,093
2 3,466,641 0
3 5,773,304 2,344,921
4 35,799,197
5 532,891 0
6 9,716,367 4,458,589
7 3,058,626 8,551,568
8 13,381,750
9 5,188 108,749
10 105,124
11 7,880 748,177
12 181,230 0
40 23,168,779 68,920,168
FERC FOR VI No.2 (12-96)
Page 233
This report is:Date of Report:Year/Period of Report:Name of Respondent
.(1)An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
Accumulated Deferred IncomeTaxes (Account 190)
1 Account 190
2 Electric 115,179,928 1,867,536 (6,588,343)96,669 564,551 254.3 1,217,683 105,974,248
3 Gas 30,295,536 (688,663)(2,719,224)2,224 22,033 254.3 327,465 27,957,319
4 e ne)110,887,110 377,090 9,935,600 1,224,029 3,307,477 254.3 13,009,977 135,539,045
5 Total (Total of 256,362,574 1,555,963 628,033 1,322,922 3,894,061 1,545,148 13,009,977 269,470,612lines2thru4)
6 Other
(Specify)
TOTAL
7 Account 190 256,362,574 1,555,963 628,033 1,322,922 3,894,061 1,545,148 13,009,977 269,470,612(Total of lines
5 thru 6)
8 Classification
of TOTAL
Federal9 256,362,574 1,555,963 628,033 1,322,922 3,894,061 1,545,148 13,009,977 269,470,612IncomeTax
10 State Income
Tax
11 Local Income
Tax
FERCFORM No.2 (REV 1247)
Page 234
Name of Respondent:This report is:Date of Report:Year/Period of Report:(1)O An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
FOOTNOTEDATA
(a_)Concept:AccumulatedDeferredincomeTaxes
Beg Balance End Balance
Pension,Medical,and SERP 49,617,069 39,011,736
Federal Income TaxCarryforwards 19,821,038 32,930,810
State income Tax Carryforwards 18,379,565 22,175,174
Derivative Instruments 8,903,303 29,450,122
Compensation and Payroll 6,589,381 6,455,693
Plant Excess Deferred Gross Up 6,552,622 5,388,884
Other Common Deferred TaxAssets 1,024,132 126,626
Total 110,887,110 135,539,045
2ERC FORM No.2 (REV 12-07)
Page 234
This report is:Name of Respondent (1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Capital Stock (Accounts 201 and 204)
1
Common Stock
(Account 201)
2 No Par Value 200,000,000 74,945,948 1,481,787,168
3 Restricted Shares 157,860 5,908,700
4
5 Total 200,000,000 74,945,948 1,481,787,168
6 Preferred Stock
(Account 204)
7 Cumulative 10,000,000
8
9
10 Total 10,000,000 0
Historical Data
11 Common &210,000,000 74,945,948 1,481,787,168 157,860 5,908,700PreferredStock
12 Total 210,000,000 74,945,948 1,481,787,168
FERCFORM No.2 (12-96)
Page 250
This report is:.
Name of Respondent (1)O An Original Date of Report:Year/Penod of Report:
Avista Corporation 04/18/2023(2)Ü A Resubmission End of:2022/Q4
Other Paid-In Capital(Accounts 208-211)
2 Beginning Balance Amount
3 Increases (Decreases)from Sales of Donations Received from Stockholders
4 Ending Balance Amount
6 Beginning Balance Amount
7 Increases (Decreases)Due to Reductions in Paror Stated Value of Capital Stock
8 Ending Balance Amount
10 Beginning Balance Amount
11 Increases (Decreases)from Gain or Resale or Cancellation of Reacquired Capital Stock
12 Ending Balance Amount
14 Beginning Balance Amount (10,696,711)
15 Increases (Decreases)Due to Miscellaneous Paid-In Capital
16 Ending Balance Amount (10,696,711)
18 Beginning Balance Amount
19 Increases (Decreases)in Other Paid-In Capital
20 Ending Balance Amount
40 Total (10,696,711)
FERC FORM No.2 (12-96)
Page 253
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Securities issued or Assumed and Securities Refunded or Retired During the Year
1.Fumish a supplemental statement briefly describing security financing and refinancing transactions during the year and the accounting for the securities,
discounts,premiums,expenses,and related gains or losses.Identify as to Commission authorization numbers and dates.
2.Provide details showing the full accounting for the total principal amount,par value,or stated value of each class and series of security issued,assumed,retired,or refunded and the accounting for premiums,discounts,expenses,and gains or losses relating to the securities.Set forth the facts of theaccountingclearlywithregardtoredemptionpremiums,unamortized discounts,expenses,and gain or losses relating to securities retired or refunded,including the accounting for such amounts carried in the respondent's accounts atthe date of the refunding or refinancing transactions with respecttosecuritiespreviouslyrefundedorretired.
3.Include in the identification of each class and series of security,as appropriate,the interest ordividend rate,nominal date of issuance,maturity date,
aggregate principal amount,par value or stated value,and number of shares.Give also the issuance of redemption price and name of the principalunderwritingfirmthroughwhichthesecuritytransactionswereconsummated.
4.Where the accounting for amounts relating to securities refunded or retired is other than that specified in General Instruction 17 of the Uniform System ofAccounts,cite the Commission authorization for the different accounting and state the accounting method.
5.For securities assumed,give the name of the company for which the liability on the securities was assumed as well as details of the transactions wherebytherespondentundertooktopayobligationsofanothercompany.If any unamortized discount,premiums,expenses,and gains or losses were taken over
onto the respondent's books,fumish details of these amounts with amounts relating to refunded securities clearly earmarked.
In March 2022,the Company issuedand sold $400.0 million of 4.00 percent first mortgage bonds due in 2052 through a public offering.Thetotalnet proceeds from the sale of the bonds
were used to repay the borrowings outstanding under Avista Corp.'s $400.0 million committed line of credit,as well as $250.0 million of maturing debt.In connection with the pricing of thefirstmortgagebondsinMarch2022,the Company cash settled thirteen interest rate swap derivatives (notional aggregate amount of $140.0 million)and paid a net amount of $17.0 million.
See Note8 for a discussion of interest rate swap derivatives.
The new issuance is basedon thefollowingstate commission orders:
1.Order of the Washington Utilities and Transportation commission in Docket No.210944 entered February 10,2022.
2.Orderof the Idaho Public Utilities Commission,Order No.35286 entered January 6,2021.
3.orderof the Public Utility Commission of Oregon,Order No.21-486,entered December 28,2021.
4.orderof the Public Servicecommission of the State of Montana,Default Order No.4535.
The Company issued common stock in 2022 for total net proceeds of $137.8 million.Most of these issuancescamethrough the Company's sales agencyagreements under which the sales
agents may offer and sell new shares of common stock from time to time.The company has board and regulatory authority to issue a maximum of 5.6 million shares under theseagreements,of which 2.3 million remain unissued as of December 31,2022.In 2022,3.3 million shares were issuedunder these agreements resulting in total net proceeds of $137.2 million.
FERCFORM No.2 (12-96)
Page 255.1
This repoit is:Name of Respondent:(1)O An Original Date of Report Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Long-Term Debt(Accounts 221,222,223,and 224)
2 FMBS -SERIESA -7.53%DUE05/05/2023 05/06/1993 05/05/2023 5,500,000 7.53%
3 FMBS -SERIESA-7.54%DUE5/05/2023 05/07/1993 05/05/2023 1,000,000 7.54%
4 FMBS-SERIESA-7.18%DUE8/11/2023 08/12/1993 08/11/2023 7,000,000 7.18%
5 FMBS -SERIES C -6.37%DUE 06/18/2028 06/19/1998 06/19/2028 25,000,000 6.37%
6 FMBS -6.25%DUE 12-01-35 11/17/2005 12/01/2035 150,000,000 6.25%
7 FMBS -5.70%DUE07-01-2037 12/15/2006 07/01/2037 150,000,000 5.7%
8 COLSTRIP2010A PCRBsDUE2032 12/15/2010 10/01/2032 66,700,000 1.27%
9 COLSTRIP2010B PCRBsDUE2034 12/15/2010 03/01/2034 17,000,000 1.27%
10 5.55%SERIESDUE12-20-2040 12/20/2010 12/20/2040 35,000,000 5.55%
11 4.45%SERIESDUE12-14-2041 12/14/2011 12/14/2041 85,000,000 4.45%
12 4.23%SERIESDUE11-29-2047 11/30/2012 11/29/2047 80,000,000 4.23%
13 4.11%SERIESDUE 12-1-2044 12/18/2014 12/01/2044 60,000,000 4.11%
14 4.37%SERIESDUE12-1-2045 12/16/2015 12/01/2045 100,000,000 4.37%
15 3.54%SERIESDUE2051 12/15/2016 12/01/2051 175,000,000 3.54%
16 3.91%SERIESDUE12-1-2047 12/14/2017 12/01/2047 90,000,000 3.91%
17 4.35%SERIESDUE6-1-2048 05/22/2018 06/01/2048 375,000,000 4.35%
18 3.43%SERIESDUE12-1-2049 11/26/2019 12/01/2049 180,000,000 3.43%
19 3.07%SERIESDUE9-1-2050 09/30/2020 09/30/2050 165,000,000 3.07%
20 2.90%SERIESDUE10/01/2051 09/28/2021 10/01/2051 140,000,000 2.9%
21 4.00%SERIESDUE4/1/2052 03/17/2022 04/01/2052 400,000,000 4%
22 Subtotal 2,307,200,000
24 COLSTRIP2010A PCRBs 12/15/2010 10/01/2032 66,700,000 1.27%
25 COLSTRIP2010B PCRBs 12/15/2010 03/01/2034 17,000,000 1.27%
26 Subtotal 83,700,000
27 Advances from Associated Companies
(Account 223)
ADVANCE ASSOCIATED-AVISTA CAPITAL28 06/03/1997 06/01/2037 51,547,000 2.05%II (ToPRS)
29 Subtotal 51,547,000
31
32
33
FERCFORM No.2 (12-96)
Page 256
Long-TermDebt (Accounts 221,222,223,and 224)
34
35
36
37
38
32 Subtotal 0
40 TOTAL 2,442,447,000
FERCFORM No.2 (12-96)
Page 256
Long-Term Debt (Accounts 221,222,223,and 224)
1
2 414,150
3 75,400
4 502,600
5 1,592,500
6 9,375,000
7 8,550,000
8
9
10 1,942,500
11 3,782,500
12 3,384,000
13 2,466,000
14 4,370,000
15 6,195,000
16 3,519,000
17 16,312,500
18 6,174,000
19 5,065,500
20 4,060,000
21 12,645,161
22 90,425,811 0
23
24 847,928
25 216,114
26 1,064,042 0 0
27
28 1,058,476
29 1,058,476 0
30
31
32
33
34
35
36
37
FERCFORM No.2 (12-96)
Page 256
Long-Term Debt (Accounts 221,222,223,and 224)
38
32
40 92,548,329 0 0
FERCFORM No.2 (12-96)
Page 256
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
FMBS-SERIESA-7.53%DUE2 5,500,000 42,712 05/06/1993 05/05/202305/05/2023
3 FMBS -SERIESA -7.54%DUE5/05/2023 1,000,000 7,766 05/07/1993 05/05/2023
4 FMBS -SERIESA -7.18%DUE8/11/2023 7,000,000 54,364 08/12/1993 08/11/2023
ADVANCE ASSOCIATED-AVISTA5 51,547,000 1,296,086 06/03/1997 06/01/2037CAPITAL11(ToPRS)
FMBS -SERlES C -6.37%DUE6 25,000,000 158,304 06/19/1998 06/19/202806/18/2028
7 FMBS -6.25%DUE 12-01-35 150,000,000 2,180,435 11/17/2005 12/01/2035
8 FMBS -5.70%DUE07-01-2037 150,000,000 4,924,304 12/15/2006 07/01/2037
9 5.125%SERIESDUE04-01-2022 250,000,000 2,859,788 09/22/2009 04/01/2022
10 5.55%SERIESDUE 12-20-2040 35,000,000 258,834 12/20/2010 12/20/2040
11 4.45%SERIESDUE 12-14-2041 85,000,000 692,833 12/14/2011 12/14/2041
12 SHORT-TERMCREDITFACILITY 0 12,757,391 12/14/2011 04/18/2022
13 4.23%SERIESDUE 11-29-2047 80,000,000 730,832 11/30/2012 11/29/2047
14 4.11%SERIESDUE 12-1-2044 60,000,000 428,205 12/18/2014 12/01/2044
15 4.37%SERIESDUE 12-1-2045 100,000,000 590,761 12/16/2015 12/01/2045
16 3.54%SERIESDUE2051 175,000,000 1,042,569 12/15/2016 12/01/2051
17 3.91%SERIESDUE 12-1-2047 90,000,000 552,539 12/14/2017 12/01/2047
18 4.35%SERIESDUE6-1-2048 375,000,000 4,625,198 06/01/2018 06/01/2048
19 3.43%SERIESDUE 12-1-2049 180,000,000 1,108,340 12/01/2019 12/01/2049
20 3.07%SERIESDUE9-1-2050 165,000,000 1,074,990 09/30/2020 09/30/1950
21 2.90%SERIESDUE 10/01/2051 140,000,000 1,070,181 09/28/2021 10/01/2051
22 4.00%SERIESDUE4-1-2052 400,000,000 4,723,993 03/17/2022 04/01/2052
23 DEBTSTRATEGIES O 56,760 08/01/2005 08/01/2035
24 Rathrum 2005 0 71,647 09/30/2005 12/01/2035
25 Premium on Long-Term Debt (Account
225)
26 FMBS -6.25%DUE 12-01-35 150,000,000 2,180,435 11/17/2005 12/01/2035
27 Discount on Long-Term Debt (Account
226)
28 FMBS -6.25 DUE 12-01-35 150,000,000 2,180,435 11/17/2005 12/01/2035
29 FMBS -5.70%DUE07-01-2037 150,000,000 4,924,304 12/15/2006 07/01/2037
30 5.125 SERIESDUE04-01-2022 250,000,000 2,859,788 09/22/2009 04/01/2022
31 4.35%SERIESDUE6-1-2048 375,000,000 4,625,198 06/01/2018 06/01/2048
32 4.00%SERIESDUE4-1-2052 400,000,000 4,723,993 03/17/2022 04/01/2052
FER(:FORM No.2 (12-96)
Page 258
2 2,017 1,424 593
3 367 259 108
4 3,020 1,812 1,208
5 217,230 14,015 203,215
6 34,299 5,277 29,022
7 845,284 60,378 784,906
8 2,396,292 153,773 2,242,519
9 60,622 60,622 0
10 163,933 8,628 155,305
11 462,079 23,104 438,975
12 2,587,140 1,340,533 841,243 3,086,430
13 541,298 20,886 520,412
14 328,490 14,282 314,208
15 472,836 19,702 453,134
16 893,815 29,794 864,021
17 478,985 18,423 460,562
18 3,741,093 141,174 3,599,919
19 1,031,591 36,843 994,748
20 1,082,898 37,666 1,045,232
21 1,044,045 1,867 18,995 1,026,917
22 0 4,579,993 113,112 4,466,881
23 390 29 361
24 33,159 2,368 30,791
26 124,367 8,884 0 115,483
28 295,047 0 21,075 273,972
29 113,117 0 7,259 105,858
30 15,232 0 15,232 0
31 333,636 0 12,590 321,046
32 0 144,000 3,590 140,410
FERCFORMNo.2 (12-96)
Page 258
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
2 i Misc Debt Repurchases I 05/10/1993 0 4,695,395 94,633 50,397
ADVANCE ASSOCIATED-3 06/01/2037 12/18/2000 10,000,000 0 0 0AVISTACAPITALII(ToPRS)
4 Misc2002 Repurchase 12/31/2002 10,000,000 121,847 16,854 14,006
5 Misc2003Repurchase 12/31/2003 25,330,000 684,726 53,975 38,776
6 Misc 2005 Repurchase 12/31/2005 26,000,000 1,700,371 427,004 391,999
7 Misc 2008 Repurchase 12/31/2008 0 (43,132)(5,530)(2,834)
8 AVA CAPITAL TRUST III (2002)04/01/2009 60,000,000 2,875,817 76,425 0
COLSTRIP2010A PCRBsDUE92032 03/01/2032 12/14/2010 66,700,000 3,709,174 1,686,401 1,530,733
COLSTRIP2010B PCRBsDUE102034 03/01/2034 12/14/2010 17,000,000 1,916,297 1,007,007 920,919
5.55%SERIESDUE 12-20-11 12/20/2040 12/20/2010 30,000,000 5,263,822 3,333,754 3,158,2932040
4.23%SERIESDUE 11-29-12 2047 11/29/2047 06/28/2012 4,100,000 105,020 77,765 74,765
14 Misc Debt Repurchases I 05/10/1993 0 0 0 0
ADVANCE ASSOCIATED-15 06/01/2037 12/18/2000 10,000,000 (1,769,125)752,386 703,583AVISTACAPITALII(ToPRS)
16 Misc 2002 Repurchase 12/31/2002 10,000,000 (2,350,000)325,064 270,123
17 Misc 2003 Repurchase 12/31/2003 25,330,000 (1,000,000)111,835 86,042
18 Misc 2005 Repurchase 12/31/2005 26,000,000 0 0 0
19 Misc 2008 Repurchase 12/31/2008 0 0 0 0
20 AVA CAPITAL TRUST Ill (2002)04/01/2009 60,000,000 0 0 0
COLSTRIP2010A PCRBsDUE21 03/01/2032 12/14/2010 66,700,000 0 0 02032
COLSTRIP2010B PCRBsDUE22 03/01/2034 12/14/2010 17,000,000 0 0 02034
5.55%SERIESDUE 12-20-23 12/20/2040 12/20/2010 30,000,000 0 0 02040
4.23%SERIESDUE 11-29-24 11/29/2047 06/28/2012 4,100,000 0 0 02047
FERGFORM No.2 (12-96)
Page 260
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Reconciliation of Reported Net Incomewith Taxable Incomefor Federal IncomeTaxes
1 Net Income for the Year (Page 114)155,176,032
Reconciling Items for the Year
3
5 Contributions in Aid of Construction 16,203,034
6 Other 804,403
8 Total 17,007,437
10 Book Depreciation 277,978,797
11 Federal Income Tax Expense (29,134,857)
12 State Income Tax Expense (8,596)
13 Subsidiary Overheads 3,189,376
14 Other 107,587,464
13 Total 359,612,184
15 Subsidiary Eamings 39,795,257
16 Other 2,070,906
18 Total 41,866,163
20 Tax Depreciation 225,647,442
21 Plant Basis Adjustments 131,748,738
22 Other 141,172,944
26 Total 498,569,124
27 Federal Tax Net Income (8,639,634)
29 Federal Tax at 21%(1,814,323)
30 Prior Year True Ups 316,662
31 Total Federal Current Tax Expense (1,497,661)
FERCFORM No.2 (12-96)
Page 261
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Šaiance at
Beg.ofYearLineKindofTax(See Instruction 5)Type of Tax Tax Jurisdiction Tax Year TaxesNo.(a)(b)(c)(d)Accrued
(e)
1 IncomeTax FedeolTax 2021
2 IncomeTax FedeolTax 2022
3 SubtotalFederalTax 0
4 PropedyTax PropedyTax VVA 2020 9,295,419
5 PropedyTax PropedyTax VVA 2021 9,394,693
6 PropedyTax PropedyTax VVA 2022 0
7 Property Tax Properly Tax ID 2020 (42)
8 Property Tax Property Tax ID 2021 3,882,456
9 Property Tax Property Tax ID 2022
10 PropedyTax PropedyTax MT 2020 1
11 PropedyTax PropedyTax Aff 2021 4,756,084
12 PropedyTax PropedyTax MT 2022
13 Property Tax Property Tax OR 2020
14 Property Tax Property Tax OR 2021
15 PropedyTax PropedyTax OR 2022
16 SubtotalPropedyTax 27,328,611
17 ExciseTax ExciseTax VGA 2020 18,342
18 ExciseTax ExciseTax VVA 2021 2,992,561
19 ExciseTax ExciseTax WA 2022
20 CoçActivitesTax-CAT ExciseTax OR 2021
21 Corp Activities Tax-CAT Excise Tax OR 2022
22 Therrnal Fuel Tax Excise Tax WA 2021 8,177
23 Subtotal Excise Tax 3,019,080
24 NaturalGasUseTax SalesAndUseTax VVA 2021 979
25 Natural Gas Use Tax Sales And Use Tax WA 2022
26 UseTax SalesAndUseTax VVA 2020 890
27 UseTax SalesAndUseTax VVA 2021 136,922
28 UseTax SalesAndUseTax V64 2022
29 UseTax SalesAndUseTax ID 2020 (33)
30 UseTax SalesAndUseTax ID 2021 6,985
,31 UseTax SalesAndUseTax ID 2022
i
32 SubtotalSalesAndUseTax 145,743
33 Municipal Occupation Tax Local Tax WA 2021 3,101,281
FEROFORMNo.2(REV1247)
Page262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
nalance at
Beg.ofYearLineKindofTax(See lustruction 5)Type of Tax Tax Jurisdiction Tax Year TaxesNo.(a)(b)(c)(d)Accrued
34 MunicipalDccupañonTant Local Tax VVA 2022
35 SubtoblLocalTax 3,101,281
36 KVVHTax CXherTaxes ID 2021 41,184
37 KVVHTax CatherTaxes ID 2022
38 KVVHTax CitherTaxes NTE 2020 (2,029)
39 KVVHTax C¢herTaxes Aff 2021 258,646
40 KVVHTax CtherTaxes ATT 2022
41 WA Renewable Energy Credits Other Taxes WA 2021 (2,311)
42 MiscOistdbuñon CXherTaxes 2021 2,311
43 SubtotalcaherTaxes 297,801
44 IncomeTax SkiteTax ID 2017
45 income Tax State Tax ID 2021
46 Income Tax State Tax ID 2022
47 IncontaTax Suite Tact NTE 2022
48 Income Tax State Tax OR 2022
49 InconvaTax State Tax Misc 2022
50 SubtotalSuteTax 0
51 Payroll Taxes Payroll Tax ID 2020 (23,125)
52 Payroll Taxes Payroll Tax 1D 2021 7,237
53 Payroll Taxes PayollTax ID 2022 0
54 PayrollTaxes PaymllTax MT 2020 (4,694)
55 Payroll Taxes Payroll Tax NTE 2022 0
56 Payroll Taxes Payroll Tax OR 2020 (10,331)
57 Payroll Taxes Payroll Tax OR 2021 4,681
58 Payrolllaxes Payroll Tax OR 2022 0
59 Payrolllaxes Payroll Tax VVA 2020 (297,351)
60 Payroll Taxes Payroll Tax VVA 2021 294,166
61 Payroll Taxes Payroll Tax VVA 2022 0
62 Payroll Taxes Payroll Tax Misc 2020 (469)
63 Payroll Taxes Payroillax Misc 2021 (2,346)
64 Payroll Taxes Payroll Tax Misc 2022 0
65 Payroll Taxes Payroll Tax FED 2021 5,528,420
66 Payroll Taxes Payroll Tax FED 2022 0
67 SubtotalPayrollTax 5,496,188
68 Franchise Tax Franchise Tax ID 2019 14
69 FranchiseTax FranchiseTax ID 2020 20
FEROFORMNo.2(REV1247)
Page262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
70 Franchise Tax Franchise Tax ID 2021 1,084,405
71 Franchise Tax Franchise Tax ID 2022
72 Franchise Tax Franchise Tax OR 2020 (1)
73 Franchise Tax Franchise Tax OR 2021 1,196,203
74 Franchise Tax Franchise Tax OR 2022
75 Subtotal Franchise Tax 2,280,641
76 Consumer Council Fee Other License And Fees Tax MT 2021 8
77 Consumer Council Fee Other License And Fees Tax MT 2022
78 Public Commission Fee Other License And Fees Tax MT 2021 25
79 PublicCommission Fee Other License And Fees Tax MT 2022
Subtotal Other License And80 33FeesTax
FERCFORM No.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaidand Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
alance at Ënd onear
Line Balan at Beg o Year Taxes Charged During Year Taxes Paid During Year Adjustrnents Taxes Accrued (Account
No.(g)(h)(i)23œ6)
1 0 316,660 881,553 564,893 0
2 (2,484,090)(1,251,000)1,233,090 0
3 0 (2,167,430)(369,447)1,797,983 0
4 861 (9,296,280)0
5 (793,602)17,897,371 9,296,280 0
6 18,574,447 462 18,573,985
7 42 0 0
8 (962)3,881,494 0
9 5,775,223 2,918,086 2,857,137
10 0 0 (1)0
11 12,851 4,768,935 0
12 9,706,408 4,865,982 1 4,840,427
13 4 4 0 0
14 4,273,513 4,273,513 0 0
15 3,921,272 8,439,166 0
16 4,273,517 41,470,057 42,771,496 0 26,271,549
17 (18,342)0
18 56,342 3,034,883 (14,020)0
19 31,832,475 27,884,177 32,362 3,980,660
20 (24,032)O 24,032 0
21 800,000 800,000 0 0
22 8,177 0
23 0 32,664,785 31,727,237 24,032 3,980,660
24 (2)987 10 0
25 210,212 163,594 (10)46,608
26 0 (890)0
27 0 136,922 0
28 1,853,978 1,644,056 890 210,812
29 0 0 33 0
30 4 6,989 0
31 297,311 265,516 (33)31,762
32 0 2,361,503 2,218,064 0 289,182
33 5,982 3,107,329 66 0
34 27,704,869 23,703,148 (66)4,001,655
35 0 27,710,851 26,810,477 0 4,001,655
36 (8,109)33,075 0
37 403,915 379,361 24,554
FERCFORMNo.2(REV12-07)
Page 262
Taxes Accrued,Prepaidand Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Balance at Wrtd of Year
Line BalancepaaMBeg.ofYear Taxes Charged During Year Taxes Paid During Year Adjustments Taxes Accrued (Account
No.(g)(h)(i)2 )
38 0 0 2,029 0
39 O 256,617 (2,029)O
40 1,151,194 911,793 239,401
41 2,311 0
42 0 (2,311)O
43 0 1,547,000 1,580,846 0 263,955
44 (86,675)(86,675)O
45 (30)O 30 0
46 60 0 (60)O
47 50 50 0
48 100,000 100,000 0
49 1,275 1,275 0
50 0 14,680 14,650 (30)O
51 0 0 23,125 0
52 0 3,745 (3,492)O
53 46,462 39,519 6,943
54 0 589 5,283 0
55 9,176 8,648 528
56 0 0 10,331 0
57 0 576 (4,105)O
58 47,712 33,457 14,255
59 0 0 297,351 0
60 0 70,089 (224,077)O
61 980,025 834,436 (73,274)72,315
62 0 0 469 0
63 0 0 2,346 0
64 2,467 2,850 383 0
65 (1,270,120)3,423,223 (835,077)O
66 16,385,391 16,390,622 801,444 796,213
67 0 16,201,113 20,807,754 707 890,254
68 0 0 (14)O
69 0 0 (20)O
70 748 1,085,194 41 0
71 5,320,695 4,034,819 (7)1,285,869
72 0 0 1 0
73 (3,822)1,192,316 (65)O
74 5,192,793 3,655,544 64 1,537,313
FERG FORM No.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Šaiance atÈnd oÑearLineBalanceatBeofYearTaxesChargedDuringYearTaxesPaidDuringYearAdjustmentsTaxesAccrued(AccountNo.(g)(h)(i)23ß}
75 0 10,510,414 9,967,873 0 2,823,182
76 8 0
77 37 29 8
78 25 0
79 136 94 42
80 0 173 156 0 50
40 4,273,517 130,313,146 135,529,106 1,822,692 38,520,487
FERCFORM No.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
nalance atind ofiear Other income and
Line PrepaidTaxes (Included in Electric (Acount 408.1'Gas (Account4083,409.1)Other U4 St.ccount Deductions (Account 408.2,
No.Acd $5)(m)4 2)
1 (3,578,734)2,559,346 1,336,048
2 0 522 (2,484,612)
3 0 (3,578,734)2,559,868 0 (1,148,564)
4 666 0 195
5 (617,430)(201,802)25,630
6 14,393,032 4,090,512 90,903
7 (26,069)O 26,111
8 62 (2)(1,022)
9 4,442,581 1,311,603 21,039
10 0
11 12,851
12 9,706,408
13 4 0
14 1,813,431 2,460,082
15 4,517,894 1,389,343 2,531,929
16 4,517,894 31,114,879 10,192,322 0 162,856
17
18 59,477 885 (4,020)
19 23,343,714 8,294,700 194,061
20 (24,032)
21 800,000
22
23 0 23,403,191 9,071,553 0 190,041
24 (2)
25 10,886
26
27
28 1,838
29
30 4
31
32 0 10,884 0 0 1,842
33 5,583 399
34 20,167,324 7,537,545
35 0 20,172,907 7,537,944 0 0
36 (8,109)
37 403,915
FERC FORMNo.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Balance afËnci oÏŸear Önter Ínconte and
1.ine PrepaidTaxes (included in Electric (Ac nt 408.1'Gas (Account 408.1,409.1)Other U t.coount Deductions (Account 408.2
No.Acct165)(m}409.2)
(k)(o)
38 0
39
40 1,151,194
41
42
43 0 1,547,000 0 0 0
44 (73,674)(13,001)
45 (26)(4)
46 51 9
47 50
48 30,000 70,000
49 336 139 800
50 0 (43,263)57,143 0 800
51 0 0 0
52 0 0 0
53 18,294 6,417 905
54 0 0 0
55 3,613 1,267 179
56 0 0 0
57 0 0 0
58 18,786 6,589 930
59 0 0 0
60 0 0 0
61 385,872 135,350 19,097
62 0 0 0
63 0 0 0
64 971 341 48
65 (500,093)(175,414)(24,750)
66 6,451,532 2,262,956 319,285
67 0 6,378,975 2,237,506 0 315,694
68 0
69 0 0
70 591 157
71 3,781,592 1,539,103
72
73 (3,822)
74 0 5,192,793
FERCFORMNo.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaidand Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Salance at End ofYear Other income andLinePrepaidTaxes(included in Electric (Acc nt 408.1'Gas (Account408 1,409.1)Other U D t.ccount Deductions (Account408.2,
No.Acet 65)(m)(n)4 2)
75 0 3,782,183 6,728,231 0 0
76
77 37
78
79 136
80 0 173 0 0 0
40 4,517,894 82,788,195 38,384,567 0 (477,331)
FERCFORMNo.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaidand Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Line Extraordinary items{Account Other UBlity Opn.Income Adjustmentto Ret.Earnings Other StatelLocal income
No.409.3)(Account 408.1,409.1)(Account 439)Tax Rate
1
2
3 0 0 0 0
4
5
6
7
8
9
10
11
12
13
14
15
16 0 0 0 0
17
18
19
20
21
22
23 0 0 0 0
24
25 199,326
26
27
28 1,852,140
29
30
31 297,311
32 0 0 0 2,348,777
33
34
i
35 0 0 0 0
36
37
FERCFORM No.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaid and Charged During Year,Distribution of Taxes Charged (Show utility deptwhere applicable and acct charged)
Line Extraordinary Rems (Account ðiher utility Òpn.Income Ädjustrnenno neÏ.Ëarnings Other ŠiateÃ.ocaÜncome
No.409.3)(Account 408.1,409.1)(Account 439)Tax Rate
38
39
40
41
42
43 0 0 0 0
44
45
46
47
48
49
50 0 0 0 0
51 0
52 O
53 20,846
54 0
55 4,117
56 0
57 O
58 21,407
59 0
60 0
61 439,706
62 0
63 0
64 1,107
65 (569,863)
66 7,351,618
67 0 0 0 7,268,938
68
69
70
71
72
73
74
FERCFORM No.2 (REV 12-07)
Page 262
Taxes Accrued,Prepaidand Charged During Year,Distribution of Taxes Charged (Show utility dept where applicable and acct charged)
Line ËxiraonÑáaryÑams(ÀccounÏ ÕÜter ÜÏÏÍÑyÕpnÀncome ÃdjustmentÏo ilef ÈarnÌngs ¯$5ÏeÄÃàaÏÏncome
No.400.3)(Account 408&409.1)(Account439)Tax Rate
75 0 0 0 0
76
77
78
79
80 0 0 0 0
40 0 0 0 9,617,715
FERCFORM No.2 (REV 12-07)
Page 262
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)A Resubmission
Miscellaneous Current and Accrued Liabilities (Account 242)
.item äaiance at änä oneerLmeNo,(a)(b)
1 MISC LIAB-MARGIN CALL DEPOSIT 2,815,000
2 MISC LIAB-FOREST USEPERMITS 2,230,088
3 MISC LIAB -SUA JPMORGANCHASE 964,540
4 ACCTS PAY -SOFTWARE LICENSES-ST 1,235,260
5 MISC LIAB-AUDIT EXPACC 37,142
6 ST LEASE ACCRUAL 7,246
7 MISC LIAB-FERCADMINFEEACC 687,500
8 MISC LIAB-FERCELECADMIN CHG 124,830
9 MISC LIAB-MT LEASE PAYMENTS 5,556,000
10 MISC LIAB-MT INVASIVE SPECIESFEE 194,165
11 MISC LIABILITY-MISC NON-MON PWR EXCHANGE 150,067
12 MISC LIAB-PAID TIMEOFF 28,855,534
13 MIISC LIAB-OL DONATION POOL 18,769
14 WORKERSCOMPLIABILITY 989,027
15 ACCTS PAYABLE INVENTORYACCRUALS-SC 421,956
16 ACCTS PAYABLE EXPENSEACCRUAL-SC 6,490,089
17 CURRENTPORTION-BENEFITLIAB 15,625,053
18 CLEARINGACCOUNTS 243,728
19 PREPAYMENTS 9,800,629
20 CUSTOMERACCOUNTS 8,204,007
45 Total 84,650,630
FERCFO RM No.2 (12-96)
Page 268
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Other Deferred Credits (Account 253)
Une Description of Other Deferred Credis nalanceit Beginning nebit Õontra
No.(a)of Year Account DebitAmount Credits Balance at End of Year
(b)(c)(d)(e}
1 eferred Gas Exchange 1,406,250 1,406,250
2 Bills Pole Rentals 332,199 454 580,532 942,830 694,497
3 Defer Comp Active Execs 9,513,318 128 3,387,965 1,415,295 7,540,648
4 Unbilled Revenue 2,159,431 1,409,167 3,568,598
5 ecoupling Deferred Credits 6,913,448 182494556'15,384,336 31,885,972 23,415,084
6 Reg Liability-COVID-19 Deferral 7,749,100 7,749,100
7 WA REC Deferrals 1,388,195 186,431 1,678,453 1,159,017 868,759
186,9038MiscDeferredCredits494,893 242
'616,343 3,054,320 2,932,870
9 mber Harvest 226,818 186 22 226,796
45 TOTAL 30,183,652 21,647,651 39,866,601 48,402,602
FERCFORM No.2 (12-96)
Page 269
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
FOOTNOTEDATA
£a)Concept:DescriptionOfOtherDeferredCredits
FortisBC and Avista exchange volumes of gas on a firm delivery basis during different time periods.Amortization is recorded monthly every year.This contract endsApril15,2025.
b)Concept:DescriptionOfOtherDeferredCredits
Washington and Idaho Decoupling mechanisms for electric and natural gas were extended through March 31,2025.Oregon's decoupling mechanism for naturalgaswasapprovedbeginningMarch1,2016.
Decoupling revenue deferrals are recognized during the period they occur,subject to certain limitations.Revenue is expected to be collected within 24 months ofthedeferral.
£c)Concept:DescriptionOfOtherDeferredCredits
Deferral of COVID-19 costs as per WA Order No.01,Dockets UE-200407 and UG-200408,Idaho PUCOrder No,34718,Oregon PUCOrder No.20-401,DocketUM2069.
£d)Concept:DescriptionOfOtherDeferredCredits
Washington Docket UE-190334,Schedule 98.
£e)Concept:DescriptionOfOtherDeferredCredits
Kettle Falls Generation Station underground fuel leak of $46,075 -Continuing remediation liability is recorded.
Other Deferred Credit-Fiserv -$791,667
Deferred Liability for Software Licenses -$2,093,461
ff)Concept:DescriptionOfOtherDeferredCredits
At 12/31/2020,this credit was embedded in a suspense account with multiple other debit amounts which fully offset this credit balance.This credit amount has been
embedded in the suspense account since 2015,the Company identified this amount during 2021 and reclassified it to account 253 as of 12/31/2021.¯ERC FORM No.2 (12-96)
Page 269
This report is:Date of Report:Year/Period of Report:Name of Respondent
..(1)An Onginal
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
Accumulated Deferred IncomeTaxes-Other Property (Account 282)
1 Account282
2 Electric 408,360,347 12,037,497 182.3 2,369,442 422,767,286
3 Gas 148,950,404 224,735 182.3 3,104,670 152,279,809
4 Other (Define)61,590,182 (1,858,846)182.3 2,043,254 61,774,590
5 Total (Total of 618,900,933 10,403,386 7,517,366 0 636,821,685lines2thru4)
6 Other (Specify)O 0
TOTAL Account
7 282 (Total of 618,900,933 10,403,386 7,517,366 0 636,821,685
lines 5 thru 6)
8 Classification of
TOTAL
9 Federal Income 618,900,933 10,403,386 7,517,366 636,821,685Tax
10 State Income 0 0Tax
11 Local Income O OTax
FERCFORMNo.2 (REV 12-07)
Page 274
Name of Respondent:This report is:Date of Report:Year/Period of Report:(1)O An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
Accumulated Deferred income Taxes-Other (Account 283)
1 Account 283
2 Electric 37,665,824 10,948,196 2,676,087 8,231 122,748 182/254 288,452 46,111,868
3 Gas 22,402,876 6,982,163 979,752 294,693 10,162 182/254 660,166 29,349,984
4 Other (Define)206,713,424 3,493,770 382,951 (57,139)128,942 182/254 22,685 209,660,847
5 266,782,124 21,424,129 4,038,790 245,785 261,852 971,303 285,122,699
6 Other
(Specify)
TOTAL
7 Account 283 266,782,124 21,424,129 4,038,790 245,785 261,852 971,303 285,122,699(Total of lines
5 thru 6)
8 Classification
of TOTAL
Federal9 266,782,124 21,424,129 4,038,790 245,785 261,852 971,303 285,122,699IncomeTax
10 State Income
Tax
11 Local Income
Tax
FERCFORMNo.2 (REV 12-07)
Page 276
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Other Regulatory Liabilities (Account 254)
ÑËen oË
.Written off During Balance at
Description and Purpose of Balance at during Written off Dunng PeriodAmourit End ofLineBeginningofQuarter/Period Period Amount CreditsOtherRegulatoryLiabilitiesDeemedNon-CturentNo.Current QuarterlYear Account Refunded Refundable QuarterlYear(b)Credited (d)
1
I aho Investment Tax Credit 7,766,202 190 7,597 2,280,062 10,038,667
2 Interest Rate Swaps 15,062,540 427,175 893,522 10,035,044 24,204,062
3 Nez Perce 484,292 557 22,008 462,284
4 Idaho Eamings Test 686,970 0 0 686,970
5 ecoupling Rebate 2,918,109 495,182 6,518,381 11,978,642 8,378,370
6 A ERM 19,820,609 186,557 15,042,530 491,823 5,269,902
7 eferred Federal ITC -Varies 7,680,040 190 141,936 7,538,104
8 PlantExcess Deferred 339,919,609 190,282 16,738,578 323,181,031
9 Reg Liability MDMSystem 964,175 431 337,324 51,992 678,843
10 FUDCEquity Tax Deferral 2,010,987 407,431 2,010,987 0
182.43111DSMTariffRider6,367,629 908 556,280 5,770,650 11,581,999
12 Low Income Energy Assistance 6,743,822 242,908 2,388,717 3,585,252 7,940,357
13 Reg Liability -OR Tax Strategy 1,322,007 254,407 915,660 876,659 1,283,006
Deferral
14 Reg Liability -Tax Reform 181,126 3,334 184,460
Amortization -1 year
15 Reg Liability -Energy Efficiency 1,428,834 242,908 441,944 986,890
Assistance
16 CS2 Insurance Proceeds 0 804,403 804,403
Deferral
17 Reg Liability -COVID-19 4,751,146 407 1,062,598 436,311 4,124,859
Deferral
18 Reg Liability -Tax Customer 143,861,989 190,410 43,674,386 6,950,511 107,138,114
Credit
19 ther Regulatory Liabilities -9,692,139 143401790,652,678 916,094 9,955,555
Varies
20 Reg Liability-WA Rev Def of 0 407,431 28,731 1,000,400 971,669
Power Supply
45 Total 571,662,225 ¯-91,433,857 O 45,181,177 525,409,545
FER3 FORM No.2 (REV 12-07)
Page 278
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
FOOTNOTEDATA
La)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Not amortized.
Lb)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Mark-to-Market gains and losses for interest rate swap derivatives.Upon settlement,amortization or Regulatory Assets and Liabilities as a component of interestexpenseoverthetermoftheassociateddebt.
fc)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Decoupling rebates are recognized during the period they occur,subjectto certain limitations.Rebates are retumed to customers within 24 months of the deferral.
(d)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
The Washington Energy Recovery Mechanism allows Avista to periodically increase or decrease electric rates.This accounting method tracks differences betweenactualpowersupplycosts,net of wholesale sales and sales of fuel,and the amount included in base rates.Avista files yearly on or before April 1 for prudencereviewbythecommission.
(e)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Noxon ITC -65 year amortization,ends 2077
Community Solar ITC -20 year amortization,ends 2035
Nine Mile ITC -65 year amortization,ends 2080
ff)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Amortized over remaining book life of plant,estimated 36 years.
£g)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Washington Dockets UE-200900,UG-200901,UE-200894 effective 10/01/2021,amortization over one year.
Idaho Electric Settlement AVU-E-19-04 ordered a transfer to account254320 for Idaho portion.
Lh)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Washington Dockets UE-190912 and UG-190920,Idaho Docket AVU-E-18-12 and AVU-G-18-08,Oregon Order No.19-424
fi)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Washington Docket#UE-190912,UG-190920
Idaho Docket#AVU-E-18-12,AVU-G-18-08
Oregon RG 81,Docket No.ADV 1063 (Advice No.19-10-G)
Ïj)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Oregon Docket No.UM 2124 -Deferral of associated state tax savings of approximately $1.3M thru 12/31/2022.
flk)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Washington Dockets UE-170485,UG-170486 (Schedule 174,amortization ended 5/31/2019)
Oregon Advice#ADV 923/19-01-G (Schedule 474,amortization ended 2/28/2021)
Idaho Case#GNR-U-18-01 (Schedule 74,amortization ended 3/31/2020)
fi)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Avista's contribution in the Energy Assistance Fund as per idaho Settlement Stipulation Case#AVU-E-19-04 (Page 10,#16 a.ii).
£m)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Insurance proceeds for failed transformer at Coyote Springs per WA Order UE-210893 Order 01.
Ín)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Deferral of COVID-19 costs as per Idaho PUC Order No.34718,Oregon PUCOrder No.20-401,Docket UM 2069,and Washington Order No.01,Dockets UE-200407,UG-200408.
£o)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
WA Order 01,Dockets UE-200895 and UG-200896,ID Case Nos.AVU-E-20-12 and AVU-G-20-07 Order No.34906,and OR Docket#UM 2124 Order#21-131
Accounting method change for federal income tax from normalization to flow-through for Industry Director Directive No.5 mixed service costs and meters.
£p)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Oregon BETCcredit of $11,558 is not amortized.
Non PlantExcess Deferred balance of $74,329 amortized over 1 year.
State income tax net operating loss carryforward of $8.4M will reverse over the period in which we are able to utilize the loss to offset taxable income on the Idaho,Montana,and Oregon tax retums.
(g)Concept:DescriptionAndPurposeOfOtherRegulatoryLiabilities
Deferred liability for over-collection of authorized power supply cost revenue from Washington retail customers.FERCFORM No.2 (REV 12-07)
Page 278
This repod is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Gas Operating Revenues
Revenues forRevenuesforTransition Revenues for GRIand Revenues for Gill and
Line Title of Account Coste and Take-or-Pay Transaction Costs and ACA Amount for Current ACA Amount forTakeer-Pay Amount forNo.(a)Amount for Current Year Year Previous YearPreviousYear(b}(d)(e)(c)
1 (480)Residential Sales
2 (481)Commercial and Industrial Sales
3 (482)Other Sales to Public Authorities
4 (483)Sales for Resale
5 (484)Interdepartmental Sales
6 (485)Intracompany Transfers
7 (487)Forfeited Discounts
8 (488)Miscellaneous Service Revenues
9 (489.1)Revenues from Transportation of
Gas of Others Through Gathering Facilities
(489.2)Revenues from Transportation of
10 Gas of Others Through Transmission
Facilities
(489.3)Revenues from Transportation of
11 Gas of Others Through Distribution
Facilities
12 (489.4)Revenues from Storing Gas of
Others
13 (490)Sales of Prod.Ext.from Natural Gas
14 (491)Revenues from Natural Gas Proc.by
Others
15 (492)Incidental Gasoline and Oil Sales
16 (493)Rent from Gas Property
17 (494)Interdepartmental Rents
18 (495)Other Gas Revenues
19 Subtotal:0 0
20 (496)(Less)Provision for Rate Refunds
21 TOTAL 0 0
FER FORM No.2 (REV 12-07)
Page 300
Gas Operating Revenues
1 284,451,820 221,404,777 284,451,820 221,404,777 24,245,248
2 150,394,400 108,615,420 150,394,400 108,615,420 16,683,100
3 0 0 0 0 0
4 136,750,006 114,711,489 136,750,006 114,711,489 28,525,973
5 506,375 328,145 506,375 328,145 61,769
6 0 0 0 0
7 0 0 0 0
8 31,750 27,568 31,750 27,568
9 0 0 0 0 0
10 0 0 0 0 0
11 8,627,257 8,547,319 8 627,257 8 547,319 17,933,683
12 0 0 0 0 0
13 0 0 0 0
14 0 0 0 0
15 0 0 0 0
16 11,791 14,000 11,791 14 000
17 0 0
18 4,939,466 18,827,764 4,939,466 18,827,764
19 585,712,865 472,476,482 585,712,865 472,476,482
20 (1,093,458)(1,093,458)
21 585,712,865 473,569,940 585,712,865 473,569,940
FERC FORM No.2 (REV 12-07)
Page 300
Gas Operating Revenues
21,983,
15,181,386
36,282,192
47,887
17,901,306
FERCFORMNo.2 (REV 12-07)
Page 300
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Other Gas Revenues (Account495)
Line Nos Description of Transaction Àmour Ïlars
1 Commissions on Sale or Distribution of Gas of Others
2 Compensation for Minor or Incidental Services Provided for Others
3 Profit or Loss on Sale of Material and Supplies not Ordinarily Purchased for Resale
4 Sales of Stream,Water,or Electricity,including Sales or Transfers to Other Departments
5 Miscellaneous Royalties
6 Revenues from Dehydration and Other Processing of Gas of Others except as provided for intheInstructionstoAccount495
7 Revenues for Right and/or Benefits Received from Others which are Realized ThroughResearch,Development,and Demonstration Ventures
8 Gains on Settlements of Imbalance Receivables and Payables
9 Revenues from Penalties eamed Pursuantto Tariff Provisions,including Penalties
Associated with Cash-out Settlements
10 Revenues from Shipper Supplied Gas
12 Misc Bills 826,879
13 Deferred Exchange Revenue 5,625,000
14 Decoupling Deferred Revenue (1,512,413)
40 TOTAL 4,939,466
FERCFORM No.2 (12-96)
Page 308
This report is:
Name of Respondent (1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Gas Operation and MaintenanceExpenses
7 750 Operation Supervision and Engineering 0 0
8 751 Production Maps and Records O O
9 752 Gas Well Expenses O O
10 753 Field Lines Expenses O O
11 754 Field Compressor Station Expenses O O
12 755 Field Compressor Station Fuel and Power 0 0
13 756 Field Measuring and Regulating Station Expenses O O
14 757 Purification Expenses O O
15 758 Gas Well Royalties O O
16 759 Other Expenses O O
17 760 Rents O O
18 TOTAL Operation (Total of lines 7 thru 17)O O
20 761 Maintenance Supervision and Engineering 0 0
21 762 Maintenance of Structures and Improvements O O
22 763 Maintenance of Producing Gas Wells O O
23 764 Maintenance of Field Lines O O
24 765 Maintenance of Field Compressor Station Equipment 0 0
25 766 Maintenance of Field Measuring and Regulating Station 0 0Equipment
26 767 Maintenance of Purification Equipment 0 0
27 768 Maintenance of Drillingand Cleaning Equipment 0 0
28 769 Maintenance of Other Equipment 0 0
29 TOTAL Maintenance (Total of lines 20 thru 28)0 0
30 TOTAL Natural Gas Production and Gathering (Total of lines 18 0 0and29)
31 B2.Products Extraction
33 770 Operation Supervision and Engineering 0 0
34 771 Operation Labor 0 0
FERCFORM No.2 (12-96)
Page 317
Gas Operation and Maintenance Expenses
35 772 Gas Shrinkage 0 0
36 773 Fuel O O
37 774 Power 0 0
38 775 Materials O O
39 776 Operation Supplies and Expenses O O
40 777 Gas Processed by Others O O
41 778 Royalties on Products Extracted 0 0
42 779 Marketing Expenses O O
43 780 Products Purchased for Resale O O
44 781 Variation in Products Inventory 0 0
45 (Less)782 Extracted Products Used by the Utility-Credit 0 0
46 783 Rents O O
47 TOTAL Operation (Total of lines 33 thru 46)O O
49 784 Maintenance Supervision and Engineering 0 0
50 785 Maintenance of Structures and improvements O O
51 786 Maintenance of Extraction and Refining Equipment 0 0
52 787 Maintenance of Pipe Lines O O
53 788 Maintenance of Extracted Products Storage Equipment 0 0
54 789 Maintenance of Compressor Equipment 0 0
55 790 Maintenance of Gas Measuring and Regulating Equipment 0 0
56 791 Maintenance of Other Equipment 0 0
57 TOTAL Maintenance (Total of lines 49 thru 56)O O
58 TOTAL Products Extraction (Total of lines 47 and 57)0 0
59 C.Exploration and Development
61 795 Delay Rentals O O
62 796 Nonproductive Well Drilling 0 0
63 797 Abandoned Leases O O
64 798 Other Exploration 0 0
65 TOTAL Exploration and Development (Total of lines 61 thru 64)0 0
66 D.Other Gas Supply Expenses
68 800 Natural Gas Well Head Purchases O O
69 800.1 Natural Gas Well Head Purchases,Intracompany Transfers O O
70 801 Natural Gas Field Line Purchases O O
71 802 Natural Gas Gasoline Plant Outlet Purchases O O
72 803 Natural Gas Transmission Line Purchases O O
FERCFORM No.2 (12-96)
Page 317
Gas Operation and Maintenance Expenses
73 804 Natural Gas City Gate Purchases 360,823,227 255,180,181
74 804.1 Liquefied Natural Gas Purchases O O
75 805 Other Gas Purchases O O
76 (Less)805.1 Purchases Gas Cost Adjustments 29,908,569 19,288,831
77 TOTAL Purchased Gas (Total of lines 68 thnJ 76)330,914,658 235,891,350
78 806 Exchange Gas 0 0
80 807.1 Well Expense-Purchased Gas O O
81 807.2 Operation of Purchased Gas Measuring Stations O O
82 807.3 Maintenance of Purchased Gas Measuring Stations O O
83 807.4 Purchased Gas Calculations Expenses O O
84 807.5 Other Purchased Gas Expenses O O
85 TOTAL Purchased Gas Expenses (Total of lines 80 thru 84)O O
86 808.1 Gas Withdrawn from Storage-Debit 47,412,672 18,407,841
87 (Less)808.2 Gas Delivered to Storage-Credit 56,596,703 26,476,514
88 809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit 0 0
89 (Less)809.2 Deliveries of Natural Gas for Processing-Credit 0 0
91 810 Gas Used for Cornpressor Station Fuel-Credit 0 0
92 811 Gas Used for Products Extraction-Credit 1,153,772 1,018,164
93 812 Gas Used for Other Utility Operations-Credit 0 0
94 TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thm 1,153,772 1,018,16493)
95 813 Other Gas Supply Expenses 1,796,463 1,764,142
96 TOTAL Other Gas Supply Exp.(Total of lines 77,78,85,86 thm 322,373,318 228,568,65589,94,95)
97 TOTAL Production Expenses (Total of lines 3,30,58,65,and 96)322,373,318 228,568,655
98 2.NATURAL GAS STORAGE,TERMINALINGAND
PROCESSINGEXPENSES
99 A.Underground Storage Expenses
101 814 Operation Supervision and Engineering (3)4,207
102 815 Maps and Records O O
103 816 Wells Expenses 0 0
104 817 Lines Expense 0 0
105 818 Compressor Station Expenses O O
106 819 Compressor Station Fuel and Power 0 0
107 820 Measuring and Regulating Station Expenses O O
108 821 Purification Expenses O O
FERCFORM No.2 (12-96)
Page 317
Gas Operation and MaintenanceExpenses
109 822 Exploration and Development 0 0
110 823 Gas Losses O 0
111 824 Other Expenses 931,044 889,434
112 825 Storage Well Royalties O O
113 826 Rents O O
114 TOTAL Operation (Total of lines of 101 thru 113)931,041 893,641
116 830 Maintenance Supervision and Engineering 0 0
117 831 Maintenance of Structures and Improvements O O
118 832 Maintenance of Reservoirs and Wells O O
119 833 Maintenance of Lines O O
120 834 Maintenance of Compressor Station Equipment 0 0
121 835 Maintenance of Measuring and Regulating Station Equipment 0 0
122 836 Maintenance of Purification Equipment 0 0
123 837 Maintenance of Other Equipment 2,253,989 2,099,183
124 TOTAL Maintenance (Total of lines 116 thru 123)2,253,989 2,099,183
125 LO4)ALUnderground Storage Expenses (Total of lines 114 and 3,185,030 2,992,824
126 B.Other Storage Expenses
128 840 Operation Supervision and Engineering 0 0
129 841 Operation Labor and Expenses O O
130 842 Rents 0 0
131 842.1 Fuel 0 0
132 842.2 Power 0 0
133 842.3 Gas Losses O O
134 TOTAL Operation (Total of lines 128 thru 133)0 0
136 843.1 Maintenance Supervision and Engineering 0 0
137 843.2 Maintenance of Structures O O
138 843.3 Maintenance of Gas Holders O O
139 843.4 Maintenance of Purification Equipment 0 0
140 843.5 Maintenance of Liquefaction Equipment 0 0
141 843.6 Maintenance of Vaporizing Equipment 0 0
142 843.7 Maintenance of Compressor Equipment 0 0
143 843.8 Maintenance of Measuring and Regulating Equipment 0 0
144 843.9 Maintenance of Other Equipment 0 0
145 TOTAL Maintenance (Total of lines 136 thru 144)0 0
FERCFORM No.2 (12-96)
Page 317
Gas Operation and Maintenance Expenses
146 TOTAL Other Storage Expenses (Total of lines 134 and 145)O O
147 C.Liquefied Natural Gas Terminaling and Processing Expenses
149 844.1 Operation Supervision and Engineering 0 0
150 844.2 LNG Processing Terminal Labor and Expenses O 0
151 844.3 Liquefaction Processing Labor and Expenses O 0
152 844.4 Liquefaction Transportation Labor and Expenses O O
153 844.5 Measuring and Regulating Labor and Expenses O O
154 844.6 Compressor Station Labor and Expenses O O
155 844.7 Communication System Expenses O O
156 844.8 System Control and Load Dispatching 0 0
157 845.1 Fuel O O
158 845.2 Power 0 0
159 845.3 Rents O O
160 845.4 Demurrage Charges O O
161 (less)845.5 Wharfage Receipts-Credit 0 0
162 845.6 Processing Liquefied or Vaporized Gas by Others O O
163 846.1 Gas Losses O O
164 846.2 Other Expenses O O
165 TOTAL Operation (Total of lines 149 thru 164)0 0
167 847.1 Maintenance Supervision and Engineering 0 0
168 847.2 Maintenance of Structures and Improvements O O
169 847.3 Maintenance of LNG Processing Terminal Equipment 0 0
170 847.4 Maintenance of LNG Transportation Equipment 0 0
171 847.5 Maintenance of Measuring and Regulating Equipment 0 0
172 847.6 Maintenance of Compressor Station Equipment 0 0
173 847.7 Maintenance of Communication Equipment 0 0
174 847.8 Maintenance of Other Equipment 0 0
175 TOTAL Maintenance (Total of lines 167 thru 174)0 0
176 TOTAL Liquefied Nat Gas Terminaling and Proc Exp (Total of lines O O165and175)
177 TOTAL Natural Gas Storage (Total of lines 125,146,and 176)3,185,030 2,992,824
178 3.TRANSMISSIONEXPENSES
180 850 Operation Supervision and Engineering 0 0
181 851 System Control and Load Dispatching O O
182 852 Communication System Expenses O O
FERCFORM No.2 (12-96)
Page 317
Gas Operation and Maintenance Expenses
183 853 Compressor Station Labor and Expenses O O
184 854 Gas for Compressor Station Fuel O O
185 855 Other Fuel and Power for Compressor Stations O O
186 856 Mains Expenses O 0
187 857 Measuring and Regulating Station Expenses O O
188 858 Transmission and Compression of Gas by Others O O
189 859 Other Expenses O O
190 860 Rents O O
191 h TOTAL Operation (Total of lines 180 thru 190)0 0
193 \861 Maintenance Supervision and Engineering 0 0
194 862 Maintenance of Structures and Improvements O O
195 863 Maintenance of Mains 0 0
196 864 Maintenance of Compressor Station Equipment 0 0
197 865 Maintenance of Measuring and Regulating Station Equipment 0 0
198 866 Maintenance of Communication Equipment 0 0
199 867 Maintenance of Other Equipment 0 0
200 TOTAL Maintenance (Total of lines 193 thru 199)0 0
201 TOTAL Transmission Expenses (Total of lines 191 and 200)0 0
202 4.DISTRIBUTIONEXPENSES
204 870 Operation Supervision and Engineering 3,506,427 2,415,891
205 871 Distribution Load Dispatching 0 0
206 872 Compressor Station Labor and Expenses O O
207 873 Compressor Station Fuel and Power 0 0
208 874 Mains and Services Expenses 6,833,128 6,634,792
209 875 Measuring and Regulating Station Expenses-General 321,528 194,891
210 876 Measuring and Regulating Station Expenses-Industrial 7,256 3,534
211 877 Measuring and Regulating Station Expenses-City Gas Check 74,155 101,935Station
212 878 Meter and House Regulator Expenses 1,016,919 950,976
213 879 Customer Installations Expenses 3,207,078 2,537,313
214 880 Other Expenses 3,283,339 2,446,991
215 881 Rents (10,147)7,489
216 TOTAL Operation (Total of lines 204 thru 215)18,239,683 15,293,812
218 885 Maintenance Supervision and Engineering 66,321 87,244
219 886 Maintenance of Structures and Improvements O 0
FERCF 3RM No.2 (12-96)
Page 317
Gas Operation and MaintenanceExpenses
220 887 Maintenance of Mains 2,119,174 2,234,313
221 888 Maintenance of Compressor Station Equipment 0 0
222 889 Maintenance of Measuring and Regulating Station Equipment 719,497 518,443General
223 890 Maintenance of Meas.and Reg.Station Equipment-Industrial 59,278 32,523
224 891 Maintenance of Meas.and Reg.Station Equip-City Gate 202,013 110,593CheckStation
225 892 Maintenance of Services 2,159,017 2,339,341
226 893 Maintenance of Meters and House Regulators 3,028,150 2,967,161
227 894 Maintenance of Other Equipment 422,064 332,076
228 TOTAL Maintenance (Total of lines 218 thru 227)8,775,514 8,621,694
229 TOTAL Distribution Expenses (Total of lines 216 and 228)27,015,197 23,915,506
230 5.CUSTOMERACCOUNTSEXPENSES
232 901 Supentision 119,956 158,411
233 902 Meter Reading Expenses 724,640 633,259
234 903 Customer Records and Collection Expenses 7,698,054 6,776,121
235 904 Uncollectible Accounts 20,023 2,506,899
236 905 Miscellaneous Customer Accounts Expenses 238,056 85,653
237 TOTAL Customer Accounts Expenses (Total of lines 232 thru 236)8,800,729 10,160,343
238 6.CUSTOMERSERVICEAND INFORMATIONALEXPENSES
240 907 Supervision 0 0
241 908 Customer Assistance Expenses 20,063,471 13,842,224
242 909 Informational and Instructional Expenses 882,657 668,155
243 910 Miscellaneous Customer Service and Informational Expenses 114,436 294,807
244 TOTAL Customer Service and Information Expenses (Total of lines 21,060,564 14,805,186240thru243)
245 7.SALES EXPENSES
247 911 Supervision 0 0
248 912 Demonstrating and Selling Expenses O O
249 913 Advertising Expenses O O
250 916 Miscellaneous Sales Expenses 431 0
251 TOTAL Sales Expenses (Total of lines 247 thru 250)431 0
252 8.ADMINISTRATIVEAND GENERALEXPENSES
254 920 Administrative and General Salaries 12,185,266 13,635,816
255 921 Office Supplies and Expenses 1,751,120 1,778,420
FERCFORM No.2 (12-96)
Page 317
Gas Operation and MaintenanceExpenses
ne ÃcGüni ÁmountforCurrentYear ÃmaunnorkviousŸear
256 (Less)922 Administrative Expenses Transferred-Credit 17,277 18,574
257 923 Outside Services Employed 5,477,135 4,875,649
258 924 Property Insurance 811,113 704,375
259 925 Injuries and Damages 2,472,303 1,848,775
260 926 Employee Pensions and Benefits 13,942,568 10,841,938
261 927 Franchise Requirements O O
262 928 Regulatory Commission Expenses 2,037,288 2,087,312
263 (Less)929 Duplicate Charges-Credit 0 0
264 930.1General Advertising Expenses (5,308)5,308
265 930.2Miscellaneous General Expenses 2,387,723 1,878,650
266 931 Rents 173,076 185,705
267 TOTAL Operation (Total of lines 254 thru 266)41,215,007 37,823,374
269 932 Maintenance of General Plant 5,744,286 5,247,381
270 LOdTALAdministrative and General Expenses (Total of lines 267 46,959,293 43,070,755
271 TOTAL Gas O&M Expenses (Total of lines 429,394,562 323,513,26997,177,201,229,237,244,251,and 270)
FERCFORM No.2 (12-96)
Page 317
Name of Respondent:1hi WAn
riginal Date of Report:Year/Period of Report:
04/18/2023 End of:2022/Q4AvistaCorporation(2)A Resubmission
Gas Used in Utility Operations
ÑaturaÏëas Ämount ofšredkfinLinePurposeforWhichGasWasUsedAccountChargedNaturalGasGasUsedOthdollars)
1 810 Gas Used for Compressor Station Fuel -Credit 2,070,750 0
2 811 Gas Used for Products Extraction -Credit 44,479,226 1,153,772
3 Gas Shrinkage and Other Usage in Respondent's Own
Processing -Credit
4 Gas Shrinkage,etc.for Respondent's Gas Processed by
Others -Credit
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Total 46,549,976 1,153,772
FERC FORMNo.2 (12-96)
Page 331
Name of Respondent:1hi WAn
riginal Date of Report:Year/Period of Report:
04/18/2023 End of:2022/Q4AvistaCorporation(2)Ü A Resubmission
FOOTNOTEDATA
£a)Concept:QuantityOfNaturalGasDeliveredByRespondentGasUsedForProductsExtraction
Represents the amountofprocessed gas run through the plant
FERCFORM No.2 (12-96)
Page 331
This report is:
Name of Respondent:(1)An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Other Gas Supply Expenses (Account 813)
ÕescripŠon Àmoundin doÑars)Line No.(a)(b)
1 Gas Resource Management:
2 Labor 1,131,061
3 Labor Loading 295,765
4 Other Expenses (Professional Services,Travel,Transportation,Office Supplies,Training)182,095
5 Regulatory Affairs:
6 Labor
7 Labor Loading
8 Other Expenses (Travel,Transportation,Gas Technology Institute Payments)187,542
25 Total 1,796,463
FERCFORMNo.2 (12-96)
Page 334
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Miscellaneous General Expenses (Account 930.2)
1 Industry association dues.596,910
2a a.Gas Research Institute (GRI)
2b b.Other
Publishing and distributing information and reports to stockholders,trustee,registrar,and
3 transfer agent fees and expenses,and other expenses of servicing outstanding securities of 269,701therespondent
4 Board of Director Activities 743,000
5 Education,Information &Training 278,148
6 Emergency Operating Procedure Events 93,564
7 Community Relations 230,538
8 Misc.Employee Expenses 37,819
9 Misc.Legal,Professional &General Services 76,810
10 Misc.Transportation 34,112
11 Other Misc.Expenses <$5k 17,563
12 Misc.Labor 9,558
25 TOTAL 2,387,723
¯ERC FORM No.2 (12-96)
Page 335
Name of Respondent:This report is:Date of Report:Year/Period of Report:
(1)O An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
Depreciation,Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405)(Except Amortization of Acquisition Adjustments)
ÀmorÜzanon and Amortization ofAmortizationExpenseforDepletlonofProducing
Line Functional Classification Depreciation Expense Asset Retirement Costs Natural Gas Landand Underground Storage
No.(a)(Account 403)(Accou 4033)Land Rig (Account Land a dLn R hts
Section A.Summary of Depreciation,Depletion,and Amortization Charges
1 Intangible plant
2 Production plant,manufactured gas
3 Production and Gathering Plant
4 Products extraction plant
5 Underground Gas Storage Plant (footnote 854,107details)
6 Other storage plant
7 Base load LNG terminaling and processing
plant
8 Transmission Plant
9 Distribution plant 32,961,660
10 General Plant (footnote details)1,744,910
11 Common plant-gas 6,978,663
12 Total 42,539,340
FERCFORM No.2 (12-96)
Page 336
Depreciation,Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405)(Except Amortization of Acquisition Adjustments)
Amortization of0ther Limited-termGas PlantLine Amortization of Other Gas Plant (Account405)Total(b to g)No.(Account404.3)
Section A.Summary of Depreciation,Depletion,and Amortization Charges
1 151,435 151,435
2
3
4
5 854,107
6
7
8
9 32,961,660
10 1,744,910
11 13,654,939 20,633,602
12 13,806,374 56,345,714
FERCFORM No.2 (12-96)
Page 336
Name of Respondent:This report is:Date of Report:Year/Period of Report:
(1)O An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
Depreciation,Depletion and Amortization of Gas Plant (Accts 403,404.1,404.2,404.3,405)(Except Amortization of Acquisition Adjustments)
Appiled DepreciaOon orLineFunctionalClassificationPlantBases(in thousands)Amortization Rates (percent)No.(a)(b)
Section B.Factors Used in Estimating Depreciation Charges
1 Production and Gathering Plant
2 Offshore (footnote details)
3 Onshore (footnote details)
4 Underground Gas Storage Plant (footnote details)
5 Transmission Plant
6 Offshore (footnote details)
7 Onshore (footnote details)
8 General Plant (footnote details)
9
10
11
12
13
14
15
FERCFORM No.2 (12-96)
Page 338
This report is:Name of Respondent:(1)2 An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
3 TOTAL Account425 -Miscellaneous Amortization 5,616
5 Items Under $250,000 2,832,367
6 TOTAL Account 426.1 -Donations 2,832,367
8 Officers Life 156,937
9 SERP 2,913,418
10 Officers Life Cash Value and Interest,Net 334,816
11 Items Under $250,000 183,189
12 TOTAL Account 426.2 -Life Insurance 3,588,360
14 Items under $250,000 24,039
15 TOTAL Account 426.3 -Penalties 24,039
17 Items Under $250,000 1,731,972
18 Total Account 426.4 -Expenditues for Certain Civic,Political,and Related Activities 1,731,972
20 Executive Deferred Compensation (1,165,638)
21 Hanna &Associates (Advertising)653,799
22 Colstrip Dry Ash Write-Off 3,895,481
23 Items Under $250,000 1,085,477
24 TOTAL Account 426.5 -Other Deductions 4,469,119
26 Avista Captial II (long-term debt)(variable rate ranged from 1.05 to 5.64 percent)1,058,476
27 Items Under $250,000 4,055
28 TOTAL Account 430 -Interest on Debt to Associated Companies 1,062,531
30 Interest on Electric Deferrals 1,169,438
31 Interest on Natural Gas Deferrals 134,066
32 Intereston Short Term Borrowings 7,342,457
33 Intereston South Lake CDA 888,964
34 Items Under $250,000 161,649
35 TOTAL Account 431 -Other Interest Expense 9,696,574
FERCFORMNo.2 (12-96)
Page 340
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Regulatory Commission Expenses (Account 928)
DescripŠonýurnish name of regulatory ÒeÌerred in Áccount
Line commission or body thedecketor case Assessed by Regulatory Expenses of Utility Total Expenses to Date 182.3 at Beginning of
No.number and a description of the case)Commission (c)(d)Year(b)(e)
Federal Energy Regulatory Commission -
Charges include annual fee and license
1 fees for the Spokane River Project,the 3,370,220 150,135 3,520,355
Cabinet Gorge Project and the Noxon
Rapids Project
2 Washington Utilities and Transportation 0Commission
3 Electric -Includes annual fee and various 1,143,338 536,711 1,680,049otherelectricdockets
4 Gas -Includes annual fee and various 330,213 142,836 473,049othernaturalgasdockets
5 Idaho Public Utilities Commission 0
6 Electric -Includes annual fee and various 560,553 193,633 754,186otherelectricdockets
7 Gas -Includes annual fee and various 133,643 57,501 191,144othernaturalgasdockets
8 Public Utility Commission of Oregon 0
9 Includes annual fees and various other 825,992 196,541 1,022,533 26,308naturalgasdockets
10 Not directly assigned Electric 834,616 834,616
11 Not directly assigned Natural Gas 350,563 350,563
25 TOTAL 6,363,959 2,462,536 8,826,495 26,308
FER(:FORM No.2 (12-96)
Page 350
Regulatory Commission Expenses (Account 928)
1 Electric 928 3,520,355
2
3 Electric 928 1,680,049
4 Gas 928 473,049
5
6 Electric 928 754,186
7 Gas 928 191,143
8
9 Gas 928 1,022,534 114,523 407
10 Electric 928 834,616
11 Gas 928 350,563
25 8,826,495 114,523
FERCFORMNo.2 (12-96)
Page 350
Regulatory Commission Expenses (Account 928)
Line No.Amorfized During Year Amount 0eferred in Account 182.3 End ofYear
1 0
2 0
3 0
4 0
5 0
6 O
7 O
8 0
9 42,462 98,369
10 0
11 0
25 42,462 98,369
FERCFOR d No.2 (12-96)
Page 350
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Employee Pensions and Benefits (Account 926)
Line No.Ëxpense Ámount Šn cioÑars)(a)(b)
1 Pensions -defined benefit plans 20,110,239
2 Pensions -other
3 Post-retirement benefits other than pensions (PBOP)8,719,760
4 Post-employment benefit plans
5 Health Insurance and Benefits 31,928,718
6 401(K)Savings Plan 13,377,182
7 Employee Education 1,927,146
8 Other 602,112
9 Allocated to Electric and Other Expense Accounts (62,722,589)
40 Total 13,942,568
¯ERC FORM No.2 (NEW12-07)
Page 352
This report is:Name of Respondent:
(1)O An Original Date of Report:Year/Period of Report:
04/18/2023 End of:2022/Q4AvistaCorporation(2)A Resubmission
Distribution of Salaries and Wages
1 Electric
3 Production 15,250,571 15,250,571
4 Transmission 5,529,976 5,529,976
5 Distribution 11,780,947 11,780,947
6 Customer Accounts 6,154,030 6,154,030
7 Customer Service and Informational 383,675 383,675
8 Sales
9 Administrative and General 28,025,144 11,602,293 39,627,437
10 TOTAL Operation (Total of lines 3 thru 9)67,124,343 11,602,293 78,726,636
12 Production 5,208,417 5,208,417
13 Transmission 1,115,797 1,115,797
14 Distribution 5,246,365 5,246,365
15 Administrative and General 0
16 TOTAL Maintenance (Total of lines 12 thm 11,570,579 11,570,579
18 Production (Total of lines 3 and 12)20,458,988 20,458,988
19 Transmission (Total of lines 4 and 13)6,645,773 6,645,773
20 Distribution (Total of lines 5 and 14)17,027,312 17,027,312
21 Customer Accounts (line 6)6,154,030 6,154,030
22 Customer Service and Informational (line 383,675 383,6757)
23 Sales (line 8)
24 Administrative and General (Total of lines 28,025,144 11,602,293 39,627,4379and15)
25 TOTAL Operation and Maintenance (Total 78,694,922 11,602,293 90,297,215oflines18thru24)
26 Gas
28 Production -Manufactured Gas
29 Production -Natural Gas(Including
Exploration and Development)
30 Other Gas Supply 1,131,061 1,131,061
31 Storage,LNG Terminaling and Processing
32 Transmission 0
FERCF3RM No.2 (REVISED)
Page 354
Distribution of Salaries and Wages
33 Distribution 6,652,274 6,652,274
34 Customer Accounts 2,872,555 2,872,555
35 Customer Service and Informational 221,493 221,493
36 Sales
37 Administrative and General 10,970,414 3,187,340 14,157,754
38 LOTALOperation (Total of lines 28 thru 21,847,797 3,187,340 25,035,137
40 Production -Manufactured Gas
41 Production -Natural Gas(IncludingExplorationandDevelopment)
42 Other Gas Supply O
43 Storage,LNG Terminaling and Processing
44 Transmission 2,217,838 2,217,838
45 Distribution 3,841,244 3,841,244
46 Administrative and General 0
47 LOTALMaintenance (Total of lines 40 thm 6,059,082 6,059,082
50 Production -Manufactured Gas (Total of
lines 28 and 40)
51 Production -Natural Gas (Including Expl.and Dev.)(II.29 and 41)
52 4OtherGas Supply (Total of lines 30 and 1,131,061 1,131,061
53 Storage,LNG Terminaling and Processing
(Total of II.31 and 43)
54 Transmission (Total of lines 32 and 44)2,217,838 2,217,838
55 Distribution (Total of lines 33 and 45)10,493,518 10,493,518
56 Customer Accounts (Total of line 34)2,872,555 2,872,555
57 Customer Service and Informational (Total 221,493 221,493ofline35)
58 Sales (Total of line 36)
59 Administrative and General (Total of lines 10,970,414 3,187,340 14,157,75437and46)
60 Total Operation and Maintenance (Total of 27,906,879 3,187,340 31,094,219lines50thru59)
62 Operation and Maintenance O
63 TOTAL ALL Utility Dept.(Total of lines 25'106,601,801 14,789,633 121,391,43460,and 62)
FERCFORM No.2 (REVISED)
Page 354
66 Electric Plant 46,241,498 8,563,467 54,804,965
67 Gas Plant 14,225,977 2,634,510 16,860,487
68 Other 0
69 TOTAL Construction (Total of lines 66 thru 60,467,475 11,197,977 71,665,45268)
71 Electric Plant 2,035,491 221,997 2,257,488
72 Gas Plant 767,891 83,749 851,640
73 Other 0
74 TOTAL PlantRemoval (Total of lines 71 2,803,382 305,746 3,109,128thru73)
75.1 Stores Expense (163)2,777,740 (2,777,740)O
75.2 Preliminary Sunrey and Investigation
(183)
75.3 Small Tool Expense (184)4,988,644 (4,988,644)O
75.4 Miscellaneous Deferred Debits (186)5,710,045 5,710,045
75.5 Non-operating Expenses (417)324,822 324,822
75.6 Retirement Bonus/SERPlHRA(228)47,044 47,044
75.7 Other Income Deductions (426)978,519 978,519
75.8 Employee Incentive Plan (232380)16,456,054 (16,456,054)O
75.9 DSM Tariff Rider (242600)2,070,918 (2,070,918)O
75.10 Incentive/Stock Compensation (238000)151,234 151,234
75.11 Payroll Equalization Liability (242700)29,046,700 29,046,700
76 TOTAL Other Accounts 62,551,720 0 (26,293,356)36,258,364
77 TOTAL SALARIES AND WAGES 232,424,378 O O 232,424,378
FERCF3RM No.2 (REVISED)
Page 354
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Charges for Outside Professional and Other Consultative Services
Line No.ÕescrÌpŠon ÃmounÏÙn cÏoÏIars)(a)(b)
1 MICHELSUTILITYSERVICESINC 23,306,427
2 VOLT MANAGEMENTCORP 19,590,810
3 NPL CONSTRUCTIONCO 17,672,001
4 WILSON CONSTRUCTIONCOMPANY 15,216,259
5 ASPLUNDHTREEEXPERTLLC 12,881,772
6 INTERNATIONALLINE BUILDERSINC 12,657,611
7 TITAN ELECTRICINC 7,165,671
8 WRIGHTTREESERVICEINC 6,937,114
9 MICHELSPACIFICENERGYINC 5,589,982
10 SLAYDEN CONSTRUCTORSINC 4,527,947
11 PERFECTIONTRAFFICCONTROLLLC 4,352,998
12 ONECALL LOCATORS LTD 3,796,755
13 POWERCITY ELECTRICINC 3,748,132
14 FOUST FABRICATION CO 3,448,974
15 CASCADECABLE CONSTRUCTORSINC 3,439,927
16 GARCO CONSTRUCTIONINC 3,348,972
17 TRAFFICCONTROLSERVICESLLC 3,248,147
18 IBM CORPORATION 3,107,699
19 NAGARRO INC 2,709,192
20 STANTECCONSULTINGSERVICESINC 2,464,530
21 HEATH CONSULTANTS INCORPORATED 2,356,461
22 POTELCOINC 2,350,899
23 TRAFFICORP 1,943,267
24 STURGEONELECTRICINC 1,922,788
25 DELOITTE 1,884,000
26 PALOUSE POWERLLC 1,856,193
27 SUNRISEENGINEERINGINC 1,819,836
28 PERSE GROUPINC 1,810,021
29 WALKER INDUSTRIESLLC 1,809,474
30 POWERENGINEERSINC 1,715,401
31 COMMERCIALGRADINGINC 1,703,848
32 STEELHEADMECHANICALLLC 1,678,733
33 HYDROMAX USA LLC 1,673,090
34 INTELLITECT 1,611,706
35 WM WINKLERCO 1,468,285
iERCFORMNo.2 (REVISED)
Page 357
Charges for Outside Professional and Other Consultative Services
Line No.ÒescripÑon Ämount Šn dolÏars)
36 CN UTILITYCONSULTINGINC 1,364,822
37 UTILITYSOLUTIONSPARTNERSLLC 1,360,913
38 CURRYINC 1,355,157
39 MAX J KUNEYCOMPANY 1,349,812
40 RESSA&SON CONSTRUCTIONLLC 1,290,191
41 UTILICASTLLC 1,238,990
42 SPOKANETRAFFICCONTROLINC 1,238,296
43 AAA SWEEPINGLLC 1,108,765
44 BRENTWOODWARD INC 1,051,391
45 DAVEY RESOURCEGROUPINC 964,164
46 NOBLE EXCAVATING INC 949,139
47 UTILITYCONSTRUCTIONINSPECTIONLLC 913,783
48 LAND EXPRESSIONS 811,057
49 COLVICO INC 793,844
50 NUVODIA STAFFING LLC 792,107
51 COLEMAN ENVIRONMENTALENGINEERINGINC 783,284
52 MCKINSTRYCOMPANY LLC 780,782
53 FUJITSUNORTH AMERICAINC 776,264
54 COEURD ALENE TRIBE 756,390
55 SOUTHERNCROSSCORP 719,928
56 COMMONWEALTHASSOCIATES INC 717,637
57 POEASPHALT PAVING INC 692,302
58 GEODIGITAL INTERNATIONALCORP 685,314
59 NEURAFLASHLLC 661,431
60 DXC TECHNOLOGYSERVICESLLC 658,701
61 S &S COATINGS INC 610,411
62 INTECSERVICESINC 602,441
63 AMERICANHYDRO CORPORATION 573,982
64 GE RENEWABLESUS LLC 513,586
65 ALDRIDGEELECTRICINC 505,078
66 NEELBLUETECHNOLOGIESCONSULTINGINC 484,920
67 AIDASH INC 481,950
68 STRUCTUREDCOMMUNICATIONSSYS INC 477,868
69 ARBORMETRICSSOLUTIONSLLC 470,633
70 ALDEN RESEARCHLABORATORY LLC 461,537
71 INTERSTATECONCRETE&ASPHALT 457,645
72 BOYER LAND DEVELOPMENTINC 453,941
73 DW POLEHOLE 428,628
FERCFORM No.2 (REVISED)
Page 357
Charges for Outside Professional and Other Consultative Services
Line No.ÔescripŠon Ãmount (Ïn doÏIars)
(a)(b)
74 JENSENSTREESERVICEINC 427,443
75 KNIGHTCONSTRUCTION&SUPPLYINC 424,026
76 PAINE HAMBLEN LLP 421,635
77 CERIUMNETWORKS 413,952
78 IDAHOFENCE 407,729
79 HICKEYBROTHERSRESEARCHLLC 396,339
80 CITY OF SPOKANEVALLEY 392,155
81 DNV ENERGYINSIGHTSUSA INC 390,371
82 UTILITYGUYS INC 378,429
83 NUVODIA LLC 368,750
84 ABREMODLLC 364,100
85 IDAHO DEPTOF FISH &GAME 357,974
86 NORTHWESTPOWERPOOL 349,546
87 ARCUSDATA 348,314
88 CASNEENGINEERINGINC 343,790
89 ASSOCIATEDARBORISTS 340,528
90 URBANOVA 336,666
91 AVCO CONSULTINGINC 333,496
92 RANDALL DANSKIN ATTORNEYS 327,084
93 WESTERNSTATES EQUIPMENTCO 326,956
94 OPTIV SECURITYINC 319,044
95 POWERCOSTS INC 311,953
96 MESAPRODUCTSINC 302,592
97 ACTALENTSERVICESLLC 302,109
98 KONECRANESINC 301,033
99 TAILOREDSOLUTIONS LLC 300,355
100 ROBINSONBROTHERSCONSTRUCTIONINC 299,871
101 WESTERNPOWERPOOL 297,777
102 LEADERSHIPLYCEUM LLC 296,541
103 LANDAU ASSOCIATES 293,711
104 METALS TESTINGSERVICESINC 286,985
105 DW EXCAVATING INC 286,797
106 AVANTE PARTNERS 284,623
107 HANNA &ASSOCIATES INC 279,741
108 SHAMROCKPAVING 279,552
109 SUMMITUTILITY CONTRACTORSLLC 277,234
110 MODERNGRID SOLUTIONS 275,975
111 COMPASS NW SERVICESINC 274,880
ERC FOF M No.2 (REVISED)
Page 357
Charges for Outside Professional and Other Consultative Services
Line No.ÔescripŠon Amourd Šn doÑars)
(a)(b)
112 KASCO OF IDAHO LLC 270,823
113 TILTON EXCAVATION CO 270,091
114 CORPCREDITCARD 265,791
115 CIRRUSDESIGNINDUSTRIESINC 265,028
116 FOUR PEAKS ENVIRONMENTALSCIENCE 260,538
117 CLEAR STONEGEO LLC 260,251
118 HATTENBURGEXCAVATING 257,248
119 H2E INC 253,522
120 OTHER<$250,000 27,573,341
121 TOTAL 259,548,695
FERCFORM No.2 (REVISED)
Page 357
This report is:Name of Respondent:(1)2 An Original Date of Report Year/Period of ReportAvistaCorporation04/18/2023 End of:2022/Q4(2)A Resubmission
Transactions with Associated (Affiliated)Companies
1
Goods or Services Provided by Affiliated
Company
19 TOTAL
20 Goods or Services Provided for Affiliated
Company
21 Corporate Support Avista Development 146000 200,599
22 Corporate Support Avista Capital 146000 84,549
23 Corporate Support AELP 146000 34,260
24 Corporate Support AJT Mining 146000 4,229
25 Corporate Support Avista Edge 146000 314,238
40 TOTAL 637,875
FERCFORM No.2 (NEW12-07)
Page 358
Name of Respondent:This report is:Date of Report:Year/Period of Report:(1)O An Original
Avista Corporation (2)Ü A Resubmission 04/18/2023 End of:2022/Q4
2 January 27,866 27,866
3 February 35,988 35,988
4 March 49,026 49,026
5 April 203,612 203,612
6 May 1,436,615 1,436,615
7 June 2,276,238 2,276,238
8 July 2,605,986 2,605,986
9 August 449,566 449,566
10 September 1,182,127 1,182,127
11 October 133,715 133,715
12 November 0 0
13 December 380,771 380,771
14 TOTAL (Total of lines 2 thru 13)8,781,510 0 8,781,510
16 January 1,761,988 1,761,988
17 February 1,257,438 1,257,438
18 March 1,445,817 1,445,817
19 April 608,738 608,738
20 May 4,622 4,622
21 June 3,554 3,554
22 July 6,203 6,203
23 August 357,980 357,980
24 September 145,293 145,293
25 October 418,798 418,798
26 November 2,127,227 2,127,227
27 December 2,755,378 2,755,378
28 TOTAL (Total of lines 16 thru 27)10,893,036 0 10,893,036
FERCFORM No.2 (12-96)
Page 512
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)Ü A Resubmission
Gas Storage Projects
Irem ,
--Totagmount ,Line No'(a (b)¿,6.
1 Top or Working Gas End of Year 8,528,000
2 Cushion Gas (Including Native Gas)7,730,668
3 Total Gas in Reservoir (Total of line 1 and 2)16,258,668
4 Certificated Storage Capacity
5 Number of Injection -Withdrawal Wells 50
6 Number of Observation Wells 32
7 Maximum Days'Withdrawal from Storage 2117,063
8 Date of Maximum Days'Withdrawal 02/23/2022
9 LNG Terminal Companies (in Dth)
10 NumberofTanks
11 Capacity of Tanks
13 Received at "Ship Rail"
14 Transferred to Tanks
15 Withdrawn from Tanks
16 "Boil Off"Vaporization Loss
FERCFORM No.2 (12-96)
Page 513
FOOTNOTEDATA
fa)Concept:MaximumDaysWithdrawalFromStorage
Mcf converted to Dth using a factorof 1.0400
FERCFORMNo.2 (12-96)
Page 513
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4
(2)Ü A Resubmission
Auxiliary Peaking Facilities
Was ËacÍÍÏty
Operated on
Line Location of Facility Type of Facility M imum a D ery Cost dofFaacUty (in Day of Highest
No.(a)(b)M (d)Transmission
Peak Delivery?
1 Chehalis,Washington Underground Natural Gas Storage Field 346,667 50,604,018 trueWahsmgton&Idaho Supply
2 Chehalis,Washington Underground Natural Gas Storage Field 52,000 7,496,344 trueOregonSupply
Underground Natural Gas Storage Field 2,623 true3Chehalis,Washington Oregon Supply
Underground Natural Gas Storage Field true4RockSprings,Wyoming Washington &Idaho Supply
Underground Natural Gas Storage Field true5RockSprings,Wyoming Oregon Supply
FERCFORM No.2 (12-96)
Page 519
This report is:
Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:
Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
FOOTNOTEDATA
£a)Concept:LocationOrNameOfFacility
Avista is a participant in the facilities,not an owner and is charged a fee for demand deliverability and capacity.
(b)Concept:LocationOrNameOfFacility
Avista does not have firm rights but have interruptible access to it.
(c)Concept:LocationOrNameOfFacility
Avista does not have firm rights but have interruptible access to it.
FERCFORM No.2 (12-96)
Page 519
This report is:Name of Respondent:(1)O An Original Date of Report:Year/Period of Report:Avista Corporation 04/18/2023 End of:2022/Q4(2)A Resubmission
Gas Account -Natural Gas
1 Name of System Avista Storage
3 Gas Purchases (Accounts 800-805)68,766,319 18,687,753
4 Gas of Others Received for Gathering (Account 303489.1)
5 Gas of Others Received for Transmission 305(Account 489.2)
6 4G8a9s3ofOthers Received for Distribution (Account 301 17,933,683 5,242,790
7 Gas of Others Received for Contract Storage 307(Account 489.4)
Gas of Others Received for
8 Production/Extraction/Processing (Account490
and 491)
9 Exchanged Gas Received from Others (Account 328806)
10 Gas Received as Imbalances (Account806)328 (110,125)(22,043)
11 Receipts of Respondent's Gas Transported by 332Others(Account 858)
12 Other Gas Withdrawn from Storage (Explain)2,175,442 4,782,478
13 Gas Received from Shippers as CompressorStationFuel
14 Gas Received from Shippers as Lost and
Unaccounted for
15 Other Receipts (Specify)(footnote details)
16 Total Receipts (Total of lines 3 thru 15)88,765,319 28,690,978
|18 Gas Sales (Accounts 480-484)69,516,090 22,953,003
|
19 Deliveries of Gas Gathered for Others (Account 303489.1)
20 Deliveries of Gas Transported for Others 305(Account 489.2)
21 4Deliveriesof Gas Distributed for Others (Account 301 17,178,479 4,841,008
22 Deliveries of Contract Storage Gas (Account 307489.4)
Gas of Others Delivered for
23 Production/Extraction/Processing (Account490
and 491)
24 Exchange Gas Delivered to Others (Account 328806)
25 Gas Delivered as Imbalances (Account 806)328
26 Deliveries of Gas to Others for Transportation 332(Account 858)
FERC ORMNo.2(REVO1-11)
Page 520
Gas Account -NaturalGas
27 Other Gas Delivered to Storage (Explain)
28 Gas Used for Compressor Station Fuel 509 2,070,750 896,967
29 Other Deliveries and Gas Used for Other
Operations
30 Total Deliveries (Total of lines 18 thru 29)88,765,319 28,690,978
31 GAS LOSSES AND GAS UNACCOUNTED
FOR
32 Gas Losses and Gas Unaccounted For
33 TOTALS
34 Total Deliveries,Gas Losses &Unaccounted For 88,765,319 28,690,978(Total of lines 30 and 32)
FERCFORM No.2 (REV 01-11)
Page 520