Derivatives And Risk Management (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedges, Assets [Abstract]

Energy Commodity Derivatives

The following table presents the underlying energy commodity derivative volumes as of December 31, 2019 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
Year	Physical (1) MWh	Financial (1) MWh	Physical (1) mmBTUs	Financial (1) mmBTUs	Physical (1) MWh	Financial (1) MWh	Physical (1) mmBTUs	Financial (1) mmBTUs
2020	2	442	9,813	78,803	133	1,724	2,984	37,848
2021	—	—	153	25,523	—	246	1,040	13,108
2022	—	—	225	4,725	—	—	—	675

 

As of December 31, 2019, there are no expected deliveries of energy commodity derivatives after 2022.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2018 that were expected to be delivered in each respective year (in thousands of MWhs and mmBTUs):

	Purchases				Sales
	Electric Derivatives		Gas Derivatives		Electric Derivatives		Gas Derivatives
Year	Physical (1) MWh	Financial (1) MWh	Physical (1) mmBTUs	Financial (1) mmBTUs	Physical (1) MWh	Financial (1) MWh	Physical (1) mmBTUs	Financial (1) mmBTUs
2019	206	941	10,732	101,293	197	2,790	2,909	54,418
2020	—	—	1,138	47,225	123	959	1,430	14,625
2021	—	—	—	9,670	—	—	1,049	4,100

 

As of December 31, 2018, there were no expected deliveries of energy commodity derivatives after 2021.

(1)

Physical transactions represent commodity transactions in which Avista Corp. will take or make delivery of either electricity or natural gas; financial transactions represent derivative instruments with delivery of cash in the amount of the benefit or cost but with no physical delivery of the commodity, such as futures, swap derivatives, options, or forward contracts.

Foreign Currency Exchange Contracts

The following table summarizes the foreign currency exchange derivatives that Avista Corp. has outstanding as of December 31 (dollars in thousands):

	2019		2018
Number of contracts	20		31
Notional amount (in United States dollars)	$	5,932	$	4,018
Notional amount (in Canadian dollars)	7,828		5,386

Interest Rate Swap Agreements

The following table summarizes the unsettled interest rate swap derivatives that Avista Corp. has outstanding as of the balance sheet date indicated below (dollars in thousands):

Balance Sheet Date	Number of Contracts	Notional Amount	Mandatory Cash Settlement Date
December 31, 2019	7	70,000	2020
	3	35,000	2021
	10	110,000	2022
December 31, 2018	6	70,000	2019
	6	60,000	2020
	2	25,000	2021
	7	80,000	2022

Derivative Instruments Summary

The following table presents the fair values and locations of derivative instruments recorded on the Consolidated Balance Sheet as of December 31, 2019 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netting		Net Asset (Liability) on Balance Sheet
Foreign currency exchange derivatives
Other current assets	$	97	$	—		$	—	$	97
Interest rate swap derivatives
Other current assets	589		—			—		589
Other current liabilities	238		(9,379		)	1,316		(7,825		)
Other non-current liabilities and deferred credits	725		(24,677		)	5,454		(18,498		)
Energy commodity derivatives
Other current assets	416		(245		)	—		171
Other property and investments-net and other non-current assets	6,369		(5,446		)	—		923
Other current liabilities	34,760		(41,241		)	3,378		(3,103		)
Other non-current liabilities and deferred credits	28		(1,215		)	—		(1,187		)
Total derivative instruments recorded on the balance sheet	$	43,222	$	(82,203	)	$	10,148	$	(28,833	)

The following table presents the fair values and locations of derivative instruments recorded on the Consolidated Balance Sheet as of December 31, 2018 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netting		Net Asset (Liability) on Balance Sheet
Foreign currency exchange derivatives
Other current liabilities	$	—	$	(45	)	$	—	$	(45	)
Interest rate swap derivatives
Other current assets	5,283		—			—		5,283
Other property and investments-net and other non-current assets	5,283		(440		)	—		4,843
Other non-current liabilities and deferred credits	—		(7,391		)	530		(6,861		)
Energy commodity derivatives
Other current assets	400		(130		)	—		270
Other current liabilities	31,457		(73,155		)	37,790		(3,908		)
Other non-current liabilities and deferred credits	4,426		(21,292		)	13,427		(3,439		)
Total derivative instruments recorded on the balance sheet	$	46,849	$	(102,453	)	$	51,747	$	(3,857	)

Schedule of Assets Pledged as Collateral and Related Offsets [Table Text Block]

The following table presents Avista Corp.'s collateral outstanding related to its derivative instruments as of December 31 (in thousands):

	2019		2018
Energy commodity derivatives
Cash collateral posted	$	7,812	$	78,025
Letters of credit outstanding	17,400		6,500
Balance sheet offsetting (cash collateral against net derivative positions)	3,378		51,217
Interest rate swap derivatives
Cash collateral posted	6,770		530
Balance sheet offsetting (cash collateral against net derivative positions)	6,770		530

There were no letters of credit outstanding related to interest rate swap derivatives as of December 31, 2019 and December 31, 2018.

Certain of Avista Corp.’s derivative instruments contain provisions that require the Company to maintain an "investment grade" credit rating from the major credit rating agencies. If Avista Corp.’s credit ratings were to fall below “investment grade,” it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing collateralization on derivative instruments in net liability positions.

The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position and the amount of additional collateral Avista Corp. could be required to post as of December 31 (in thousands):

	2019		2018
Energy commodity derivatives
Liabilities with credit-risk-related contingent features	$	814	$	2,193
Additional collateral to post	814		2,193
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features	34,056		7,831
Additional collateral to post	26,912		6,579