Long-Term Debt and Capital Leases Long-Term Debt and Capital Leases (Tables)

9 Months Ended

Sep. 30, 2016

Long-term Debt and Capital Lease Obligations [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The following details long-term debt outstanding as of September 30, 2016 and December 31, 2015 (dollars in thousands):

Maturity		Interest	September 30,			December 31,
Year	Description	Rate	2016			2015
Avista Corp. Secured Long-Term Debt
2016	First Mortgage Bonds	0.84%	$	—		$	90,000
2018	First Mortgage Bonds	5.95%	250,000			250,000
2018	Secured Medium-Term Notes	7.39%-7.45%	22,500			22,500
2019	First Mortgage Bonds	5.45%	90,000			90,000
2020	First Mortgage Bonds	3.89%	52,000			52,000
2022	First Mortgage Bonds	5.13%	250,000			250,000
2023	Secured Medium-Term Notes	7.18%-7.54%	13,500			13,500
2028	Secured Medium-Term Notes	6.37%	25,000			25,000
2032	Secured Pollution Control Bonds (1)	(1)	66,700			66,700
2034	Secured Pollution Control Bonds (1)	(2)	17,000			17,000
2035	First Mortgage Bonds	6.25%	150,000			150,000
2037	First Mortgage Bonds	5.70%	150,000			150,000
2040	First Mortgage Bonds	5.55%	35,000			35,000
2041	First Mortgage Bonds	4.45%	85,000			85,000
2044	First Mortgage Bonds	4.11%	60,000			60,000
2045	First Mortgage Bonds	4.37%	100,000			100,000
2047	First Mortgage Bonds	4.23%	80,000			80,000
	Total Avista Corp. secured long-term debt		1,446,700			1,536,700
Alaska Electric Light and Power Company Secured Long-Term Debt
2044	First Mortgage Bonds	4.54%	75,000			75,000
Alaska Energy and Resources Company Unsecured Long-Term Debt
2019	Unsecured Term Loan	3.85%	15,000			15,000
	Total consolidated secured and unsecured long-term debt		1,536,700			1,626,700
Other Long-Term Debt Components
	Capital lease obligations		66,226			68,601
	Settled interest rate swaps (2)		—			(26,515		)
	Unamortized debt discount		(833		)	(956		)
	Unamortized long-term debt issuance costs		(9,879		)	(10,852		)
	Unsecured short-term loan to be refinanced on a long-term basis (3)		70,000			—
	Committed line of credit to be refinanced on a long-term basis (3)		103,000			—
	Total		1,765,214			1,656,978
	Secured Pollution Control Bonds held by Avista Corp. (1)		(83,700		)	(83,700		)
	Current portion of long-term debt and capital leases		(3,257		)	(93,167		)
	Total long-term debt and capital leases		$	1,678,257		$	1,480,111

(1) In December 2010, $66.7 million and $17.0 million of the City of Forsyth, 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 bond issues (Series 2010A and Series 2010B). The new bonds were not offered to the public and were purchased by Avista Corp. due to market conditions. The Company expects that at a later date, subject to market conditions, these bonds may be remarketed to unaffiliated investors. So long as Avista Corp. is the holder of these bonds, the bonds will not be reflected as an asset or a liability on Avista Corp.'s Condensed Consolidated Balance Sheets.

(2) Prior to September 30, 2016, settled interest rate swaps were included as part of long-term debt on the Condensed Consolidated Balance Sheets because they were considered similar to a debt discount or premium. During the third quarter 2016, the Company reevaluated the presentation of settled interest rate swaps and determined that since they are regulatory assets and liabilities that are being recovered through the ratemaking process, the more appropriate classification is as regulatory assets and liabilities rather than as a component of long-term debt. As such, as of September 30, 2016, the Company has included unamortized settled interest rate swaps of $92.8 million in regulatory assets and $12.8 million in regulatory liabilities. The Company did not reclassify any amounts as of December 31, 2015 and prior because the amounts are not material to the financial statements. The increase in settled interest rate swaps during 2016 is due to the cash settlement of interest rate swaps during the third quarter of 2016 (discussed in detail below). There is no impact to the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Cash Flows for any periods as a result of the balance sheet reclassification.

(3) In August 2016, Avista Corp. entered into a term loan agreement with a commercial bank in the amount of $70.0 million with a maturity date of December 30, 2016. Loans under this agreement are unsecured and have a variable annual interest rate determined by either the Eurodollar rate or the Alternative Base Rate, depending on the type of loan selected by Avista Corp. The Company borrowed the entire $70.0 million available under this agreement, which was used to repay a portion of the $90.0 million in first mortgage bonds that matured in August 2016.

Also in August 2016 subsequent to the $70.0 million borrowing, the Company entered into a bond purchase agreement with five institutional investors in the private placement market for the issuance and sale of $175.0 million of Avista Corp. first mortgage bonds in December 2016. The first mortgage bonds will bear a coupon rate of 3.54 percent and mature in December 2051. The proceeds from the bonds will be received in December 2016, prior to the repayment of the $70.0 million term loan on December 30, 2016. Because the Company intends to use the funds to refinance on a long-term basis both the $70.0 million borrowing and $103.0 million outstanding under the Company's committed line of credit, a total of $173.0 million has been excluded from current liabilities and is recorded as long-term debt on the Condensed Consolidated Balance Sheets as of September 30, 2016. In connection with the bond purchase agreement, the Company cash-settled six interest rate swap contracts (notional aggregate amount of $115.0 million) and paid a total of $54.0 million.