Derivatives and Risk Management (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 expected to be delivered or mature in the respective years shown (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 2023		5		—		12,377		33,810		74		267		735		5,295
2024		7		—		14,810		61,090		31		400		1,370		11,965
2025		—		—		6,363		14,130		—		96		1,115		1,125
2026		—		—		1,660		1,800		—		—		—		—

As of September 30, 2023, there were no expected deliveries of energy commodity derivatives after 2026.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2022 expected to be delivered or mature in the respective years shown (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
2023		5		—		19,140		79,253		136		1,011		4,145		29,473
2024		—		—		533		30,658		—		—		1,370		9,668
2025		—		—		450		4,895		—		—		1,115		1,125

As of December 31, 2022, there were 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 outstanding as of September 30, 2023 and December 31, 2022 (dollars in thousands):

	September 30,		December 31,
	2023		2022
Number of contracts		20		19
Notional amount (in United States dollars)	$	5,292	$	8,563
Notional amount (in Canadian dollars)		7,159		11,659

Summary of Unsettled Interest Rate Swap Derivatives

The following table summarizes the unsettled interest rate swap derivatives outstanding as of September 30, 2023 and December 31, 2022 (dollars in thousands):

Balance Sheet Date	Number of Contracts		Notional Amount		Mandatory Cash Settlement Date
September 30, 2023		2	$	20,000	2024
		1	$	10,000	2025
December 31, 2022		4	$	40,000	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, 2023 (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	$	23	$	—		$	—	$	23
Interest rate swap derivatives
Other property and investments-net and other non-current assets		6,379		—			—		6,379
Energy commodity derivatives
Other current assets		3,622		(1,664	)		—		1,958
Other property and investments-net and other non-current assets		534		(214	)		—		320
Other current liabilities		23,784		(70,886	)		27,418		(19,684	)
Other non-current liabilities and deferred credits		4,378		(18,413	)		—		(14,035	)
Total derivative instruments recorded on the balance sheet	$	38,720	$	(91,177	)	$	27,418	$	(25,039	)

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 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 assets	$	43	$	—		$	—	$	43
Other current liabilities		—		(3	)		—		(3	)
Interest rate swap derivatives
Other current assets		8,536		—			—		8,536
Other property and investments-net and other non-current assets		2,648		—			—		2,648
Other current liabilities		—		(52	)		—		(52	)
Energy commodity derivatives
Other current assets		32,257		(22,638	)		—		9,619
Other property and investments-net and other non-current assets		312		(16	)		—		296
Other current liabilities		107,902		(229,607	)		94,850		(26,855	)
Other non-current liabilities and deferred credits		6,049		(24,530	)		10,589		(7,892	)
Total derivative instruments recorded on the balance sheet	$	157,747	$	(276,846	)	$	105,439	$	(13,660	)

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, 2023 and December 31, 2022 (in thousands):

	September 30,		December 31,
	2023		2022
Energy commodity derivatives
Cash collateral posted	$	27,418	$	171,581
Letters of credit outstanding		9,000		49,425
Balance sheet offsetting		27,418		105,439

No letters of credit or cash collateral were outstanding related to interest rate swap derivatives as of September 30, 2023 and December 31, 2022.

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 in a liability position and the amount of additional collateral Avista Corp. could be required to post as of September 30, 2023 (in thousands):

	September 30,
	2023
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features	$	—
Additional collateral to post		—
Energy commodity derivatives
Liabilities with credit-risk-related contingent features		5,334
Additional collateral to post		3,996