Derivatives and Risk Management (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022 that are expected to be delivered or mature 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 2022		39		—		10,692		28,583		76		62		1,762		11,703
2023		—		—		13,325		65,635		62		584		1,810		28,330
2024		—		—		533		29,135		—		—		1,370		8,755
2025		—		—		450		2,250		—		—		1,115		450

As of September 30, 2022, 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, 2021 that are expected to be delivered or mature 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
2022		129		—		7,114		61,405		234		452		3,933		31,485
2023		—		—		378		23,218		—		—		1,360		9,323
2024		—		—		228		3,413		—		—		1,370		228
2025		—		—		—		—		—		—		1,115		—

As of December 31, 2021, 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, 2022 and December 31, 2021 (dollars in thousands):

	September 30,		December 31,
	2022		2021
Number of contracts		22		25
Notional amount (in United States dollars)	$	8,647	$	8,571
Notional amount (in Canadian dollars)		11,554		10,957

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, 2022 and December 31, 2021 (dollars in thousands):

Balance Sheet Date	Number of Contracts		Notional Amount		Mandatory Cash Settlement Date
September 30, 2022		3	$	30,000	2023
		1		10,000	2024
December 31, 2021		13	$	140,000	2022
		2		20,000	2023
		1		10,000	2024

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, 2022 (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	$	—	$	(221	)	$	—	$	(221	)
Interest rate swap derivatives
Other property and investments-net and other non-current assets		10,384		—			—		10,384
Energy commodity derivatives
Other current assets		49,379		(44,357	)		—		5,022
Other property and investments-net and other non-current assets		9,895		(7,538	)		—		2,357
Other current liabilities		30,473		(43,867	)		10,619		(2,775	)
Other non-current liabilities and deferred credits		6,207		(12,764	)		1,884		(4,673	)
Total derivative instruments recorded on the balance sheet	$	106,338	$	(108,747	)	$	12,503	$	10,094

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 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	$	—	$	(19	)	$	—	$	(19	)
Interest rate swap derivatives
Other property and investments-net and other non-current assets		1,149		—			—		1,149
Other current liabilities		1,170		(25,196	)		—		(24,026	)
Other non-current liabilities and deferred credits		—		(78	)		—		(78	)
Energy commodity derivatives
Other current assets		1,506		(107	)		—		1,399
Other property and investments-net and other non-current assets		6,844		(5,335	)		—		1,509
Other current liabilities		25,771		(39,616	)		9,089		(4,756	)
Other non-current liabilities and deferred credits		141		(4,589	)		—		(4,448	)
Total derivative instruments recorded on the balance sheet	$	36,581	$	(74,940	)	$	9,089	$	(29,270	)

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, 2022 and December 31, 2021 (in thousands):

	September 30,		December 31,
	2022		2021
Energy commodity derivatives
Cash collateral posted	$	59,929	$	30,567
Letters of credit outstanding		26,000		34,000
Balance sheet offsetting		12,503		9,089

There was no cash collateral or letters of credit outstanding related to interest rate swap derivatives as of September 30, 2022 and December 31, 2021.

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, 2022 and December 31, 2021 (in thousands):

	September 30,		December 31,
	2022		2021
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features	$	—	$	25,274
Additional collateral to post		—		25,274