Committed Lines of Credit

6 Months Ended

Jun. 30, 2013

Short-term Debt [Abstract]

Committed Lines of Credit

COMMITTED LINES OF CREDIT

Avista Corp.

Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400 million with an expiration date of February 2017. The committed line of credit is secured by non-transferable First Mortgage Bonds of the 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 obligations under the committed line of credit.

The committed line of credit agreement contains customary covenants and default provisions. The credit agreement has a covenant which does not permit the ratio of “consolidated total debt” to “consolidated total capitalization” of Avista Corp. to be greater than 65 percent at any time. As of June 30, 2013, the Company was in compliance with this covenant.

Balances outstanding and interest rates of borrowings under the Company’s revolving committed line of credit were as follows as of June 30, 2013 and December 31, 2012 (dollars in thousands):

	June 30,			December 31,
	2013			2012
Borrowings outstanding at end of period	$	95,500		$	52,000
Letters of credit outstanding at end of period	$	24,078		$	35,885
Average interest rate on borrowings at end of period	1.11		%	1.12		%

As of June 30, 2013 the borrowings outstanding under Avista Corp.'s committed line of credit were classified as short-term borrowings on the Condensed Consolidated Balance Sheet.

Ecova

Ecova has a $125.0 million committed line of credit agreement with various financial institutions that has an expiration date of July 2017. The credit agreement is secured by all of Ecova's assets excluding investments and funds held for clients.

The committed line of credit agreement contains customary covenants and default provisions, including a covenant which requires that Ecova's “Consolidated Total Funded Debt to EBITDA Ratio” (as defined in the credit agreement) must be 2.50 to 1.00 or less, with provisions in the credit agreement allowing for a temporary increase of this ratio if a qualified acquisition is consummated by Ecova. In addition, Ecova's “Consolidated Fixed Charge Coverage Ratio” (as defined in the credit agreement) must be greater than 1.50 to 1.00 as of the last day of any fiscal quarter. As of June 30, 2013, Ecova was in compliance with these covenants.

Balances outstanding and interest rates of borrowings under Ecova’s credit agreements were as follows as of June 30, 2013 and December 31, 2012 (dollars in thousands):

	June 30,			December 31,
	2013			2012
Borrowings outstanding at end of period	$	52,000		$	54,000
Average interest rate on borrowings at end of period	2.20		%	2.21		%

As of June 30, 2013 the borrowings outstanding under Ecova's committed line of credit were classified as long-term borrowings under committed line of credit on the Condensed Consolidated Balance Sheet.