Derivatives and Risk Management (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedges, Assets [Abstract]

Schedule of Energy Commodity Derivative Volumes

The following table presents the underlying energy commodity derivative volumes as of September 30, 2021 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
Remainder 2021		—		31		4,891		24,320		18		103		2,587		13,033
2022		123		—		2,250		52,353		216		370		2,260		28,898
2023		—		—		—		18,825		—		—		1,360		7,060
2024		—		—		—		2,275		—		—		1,370		—
2025		—		—		—		—		—		—		1,115		—

As of September 30, 2021, there are no expected deliveries of energy commodity derivatives after 2025.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2020 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
2021		1		224		10,353		65,188		17		451		5,448		39,273
2022		—		—		450		25,525		—		—		1,360		12,030
2023		—		—		—		4,950		—		—		1,360		900
2024		—		—		—		—		—		—		1,370		—
2025		—		—		—		—		—		—		1,115		—

As of December 31, 2020, there are no expected deliveries of energy commodity derivatives after 2025.

(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.

Summary of Foreign Currency Exchange Derivatives

The following table summarizes the foreign currency exchange derivatives that Avista Corp. has outstanding as of September 30, 2021 and December 31, 2020 (dollars in thousands):

	September 30, 2021		December 31, 2020
Number of contracts		22		22
Notional amount (in United States dollars)	$	7,692	$	3,860
Notional amount (in Canadian dollars)		9,739		4,949

Summary of Unsettled Interest Rate Swap Derivatives

The following table summarizes the unsettled interest rate swap derivatives that Avista Corp. has outstanding as of September 30, 2021 and December 31, 2020 (dollars in thousands):

Balance Sheet Date	Number of Contracts		Notional Amount		Mandatory Cash Settlement Date
September 30, 2021		13	$	140,000	2022
		2		20,000	2023
		1		10,000	2024
December 31, 2020		4	$	45,000	2021
		11		120,000	2022
		1		10,000	2023

Schedules of Fair Values and Locations of Derivative Instruments

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of September 30, 2021 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted		Net Asset (Liability) on Balance Sheet
Foreign currency exchange derivatives
Other current liabilities	$	—	$	(86	)	$	—	$	(86	)
Interest rate swap derivatives
Other property and investments-net and other non-current assets		2,477		—			—		2,477
Other current liabilities		2,072		(20,732	)		—		(18,660	)
Energy commodity derivatives
Other current assets		49,933		(42,664	)		—		7,269
Other property and investments-net and other non-current assets		12,587		(5,895	)		—		6,692
Other current liabilities		12,539		(30,933	)		12,343		(6,051	)
Other non-current liabilities and deferred credits		108		(5,688	)		—		(5,580	)
Total derivative instruments recorded on the balance sheet	$	79,716	$	(105,998	)	$	12,343	$	(13,939	)

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 2020 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted		Net Asset (Liability) on Balance Sheet
Foreign currency exchange derivatives
Other current assets	$	30	$	—		$	—	$	30
Interest rate swap derivatives
Other current liabilities		—		(19,575	)		8,050		(11,525	)
Other non-current liabilities and deferred credits		952		(32,190	)		—		(31,238	)
Energy commodity derivatives
Other current assets		9,203		(8,306	)		—		897
Other property and investments-net and other non-current assets		1,755		(1,159	)		—		596
Other current liabilities		11,037		(14,007	)		487		(2,483	)
Other non-current liabilities and deferred credits		1,725		(8,043	)		129		(6,189	)
Total derivative instruments recorded on the balance sheet	$	24,702	$	(83,280	)	$	8,666	$	(49,912	)

Schedule of Collateral Outstanding Related to Derivative Instruments

The following table presents Avista Corp.'s collateral outstanding related to its derivative instruments as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30,		December 31,
	2021		2020
Energy commodity derivatives
Cash collateral posted	$	22,947	$	4,953
Letters of credit outstanding		21,500		23,500
Balance sheet offsetting		12,343		616
Interest rate swap derivatives
Cash collateral posted (offset by net derivative positions)		—		8,050

Certain of Avista Corp.’s derivative instruments contain provisions that require Avista Corp. 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 September 30, 2021 and December 31, 2020 (in thousands):

	September 30,		December 31,
	2021		2020
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features		20,732		50,813
Additional collateral to post		20,732		42,763