Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

	Fair Value (Net) at
	September 30, 2014			Valuation Technique	Unobservable Input	Range
Power exchange agreement	$	(12,854	)	Surrogate facility pricing	O&M charges	$30.66-$55.56/MWh (1)
					Escalation factor	3% - 2014 to 2019
					Transaction volumes	310,103 - 397,116 MWhs
Power option agreement	(362		)	Black-Scholes- Merton	Strike price	$56.20/MWh - 2015
						$67.81/MWh - 2019
					Delivery volumes	32,472 - 287,147 MWhs
					Volatility rates	0.20 (2)
Natural gas exchange agreement	(1,471		)	Internally derived weighted average cost of gas	Forward purchase prices	$3.43 - $3.68/mmBTU
					Forward sales prices	$4.19 - $4.72/mmBTU
					Purchase volumes	280,000 - 310,000 mmBTUs
					Sales volumes	279,990 - 310,000 mmBTUs

Carrying Value and Estimated Fair Value of Financial Instruments

The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at estimated fair value on the Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013 (dollars in thousands):

	September 30, 2014				December 31, 2013
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	951,000	$	1,100,345	$	951,000	$	1,054,512
Long-term debt (Level 3)	417,000		431,758		342,000		329,581
Snettisham capital lease obligation (Level 3)	70,481		77,835		—		—
Nonrecourse long-term debt (Level 3)	5,666		5,756		17,838		18,636
Long-term debt to affiliated trusts (Level 3)	51,547		38,583		51,547		37,114

Fair Value of Assets And Liabilities Measured on Recurring Basis

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
September 30, 2014
Assets:
Energy commodity derivatives	$	—	$	52,691	$	—	$	(47,664	)	$	5,027
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		58		(58		)	—
Power exchange agreement	—		—		800		(800		)	—
Interest rate swaps	—		13,300		—		(5,047		)	8,253
Funds held in trust account of Spokane Energy	1,600		—		—		—			1,600
Deferred compensation assets:
Fixed income securities (2)	1,831		—		—		—			1,831
Equity securities (2)	6,096		—		—		—			6,096
Total	$	9,527	$	65,991	$	858	$	(53,569	)	$	22,807
Liabilities:
Energy commodity derivatives	$	—	$	52,881	$	—	$	(48,599	)	$	4,282
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		1,529		(58		)	1,471
Power exchange agreement	—		—		13,654		(800		)	12,854
Power option agreement	—		—		362		—			362
Foreign currency derivatives	—		280		—		—			280
Interest rate swaps	—		34,485		—		(17,777		)	16,708
Total	$	—	$	87,646	$	15,545	$	(67,234	)	$	35,957

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
December 31, 2013
Assets:
Energy commodity derivatives	$	—	$	55,243	$	—	$	(51,367	)	$	3,876
Level 3 energy commodity derivatives:
Power exchange agreement	—		—		339		(339		)	—
Foreign currency derivatives	—		7		—		(6		)	1
Interest rate swaps	—		33,543		—		—			33,543
Investments and funds held for clients:
Money market funds	11,180		—		—		—			11,180
Securities available for sale:
U.S. government agency	—		61,078		—		—			61,078
Municipal	—		3,518		—		—			3,518
Corporate fixed income – financial	—		3,000		—		—			3,000
Corporate fixed income – industrial	—		765		—		—			765
Certificate of deposits	—		1,000		—		—			1,000
Funds held in trust account of Spokane Energy	1,600		—		—		—			1,600
Deferred compensation assets:
Fixed income securities (2)	1,960		—		—		—			1,960
Equity securities (2)	6,470		—		—		—			6,470
Total	$	21,210	$	158,154	$	339	$	(51,712	)	$	127,991
Liabilities:
Energy commodity derivatives	$	—	$	72,895	$	—	$	(60,099	)	$	12,796
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		1,219		—			1,219
Power exchange agreement	—		—		14,780		(339		)	14,441
Power option agreement	—		—		775		—			775
Foreign currency derivatives	—		6		—		(6		)	—
Total	$	—	$	72,901	$	16,774	$	(60,444	)	$	29,231

(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, the Company nets derivative assets and derivative liabilities against any payables and receivables for cash collateral held or placed with these same counterparties.

(2) These assets are trading securities and are included in other property and investments-net on the Condensed Consolidated Balance Sheets.

Reconciliation for All Assets Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

	Natural Gas Exchange Agreement			Power Exchange Agreement			Power Option Agreement			Total
Three months ended September 30, 2014:
Balance as of July 1, 2014	$	(2,183	)	$	(7,919	)	$	(605	)	$	(10,707	)
Total gains or losses (realized/unrealized):
Included in net income	—			—			—			—
Included in other comprehensive income	—			—			—			—
Included in regulatory assets/liabilities (1)	712			(4,935		)	243			(3,980		)
Purchases	—			—			—			—
Issuance	—			—			—			—
Settlements	—			—			—			—
Transfers to/from other categories	—			—			—			—
Ending balance as of September 30, 2014	$	(1,471	)	$	(12,854	)	$	(362	)	$	(14,687	)
Three months ended September 30, 2013:
Balance as of July 1, 2013	$	(1,022	)	$	(22,179	)	$	(596	)	$	(23,797	)
Total gains or losses (realized/unrealized):
Included in net income	—			—			—			—
Included in other comprehensive income	—			—			—			—
Included in regulatory assets/liabilities (1)	(170		)	6,135			(165		)	5,800
Purchases	—			—			—			—
Issuance	—			—			—			—
Settlements	(1		)	—			—			(1		)
Transfers to/from other categories	—			—			—			—
Ending balance as of September 30, 2013	$	(1,193	)	$	(16,044	)	$	(761	)	$	(17,998	)
Nine months ended September 30, 2014:
Balance as of January 1, 2014	$	(1,219	)	$	(14,441	)	$	(775	)	$	(16,435	)
Total gains or losses (realized/unrealized):
Included in net income	—			—			—			—
Included in other comprehensive income	—			—			—			—
Included in regulatory assets/liabilities (1)	2,796			2,120			413			5,329
Purchases	—			—			—			—
Issuance	—			—			—			—
Settlements	(3,048		)	(533		)	—			(3,581		)
Transfers to/from other categories	—			—			—			—
Ending balance as of September 30, 2014	$	(1,471	)	$	(12,854	)	$	(362	)	$	(14,687	)

	Natural Gas Exchange Agreement			Power Exchange Agreement			Power Option Agreement			Total
Nine months ended September 30, 2013:
Balance as of January 1, 2013	$	(2,379	)	$	(18,692	)	$	(1,480	)	$	(22,551	)
Total gains or losses (realized/unrealized):
Included in net income	—			—			—			—
Included in other comprehensive income	—			—			—			—
Included in regulatory assets/liabilities (1)	1,637			(113		)	719			2,243
Purchases	—			—			—			—
Issuance	—			—			—			—
Settlements	(451		)	2,761			—			2,310
Transfers from other categories	—			—			—			—
Ending balance as of September 30, 2013	$	(1,193	)	$	(16,044	)	$	(761	)	$	(17,998	)

(1) The UTC and the IPUC issued accounting orders authorizing Avista Corp. to offset commodity derivative assets or liabilities with a regulatory asset or liability. This accounting treatment defers the recognition of mark-to-market gains and losses on energy commodity transactions until the period of delivery. The orders provide for Avista Corp. to not recognize the unrealized gain or loss on utility derivative commodity instruments in the Condensed Consolidated Statements of Income. Realized gains or losses are recognized in the period of delivery, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in adjustments to retail rates through purchased gas cost adjustments, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases.