Short-Term Borrowings

3 Months Ended

Mar. 31, 2012

Short-Term Borrowings [Abstract]

Short-Term Borrowings

NOTE 7. SHORT-TERM BORROWINGS

Avista Corp.

Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0 million with an expiration date of February 2017. The committed line of credit is secured by non-transferable First Mortgage Bonds of the Company issued to the agent bank that would only become due and payable in the event, and then only to the extent, that the Company defaults on its obligations under the committed line of credit.

The committed line of credit agreement contains customary covenants and default provisions. The credit agreement has a covenant which does not permit the ratio of "consolidated total debt" to "consolidated total capitalization" of Avista Corp. to be greater than 65 percent at any time. As of March 31, 2012, the Company was in compliance with this covenant.

Balances outstanding and interest rates of borrowings (excluding letters of credit) under the Company's revolving committed lines of credit were as follows as of March 31, 2012 and December 31, 2011 (dollars in thousands):

	March 31, 2012			December 31, 2011
Balance outstanding at end of period	$	37,000		$	61,000
Letters of credit outstanding at end of period	$	20,090		$	29,030
Average interest rate at end of period		3.25	%		1.12	%

Ecova

Ecova has a $60.0 million committed line of credit agreement with a financial institution that expires in April 2014. The amount of this committed line of credit will decrease to $55.0 million on September 30, 2012 and $50.0 million on December 31, 2012. The credit agreement is secured by substantially all of Ecova's assets. Balances outstanding and interest rates of borrowings under Ecova's credit agreements were as follows as of March 31, 2012 and December 31, 2011 (dollars in thousands):

	March 31, 2012			December 31, 2011
Balance outstanding at end of period	$	60,000		$	35,000
Average interest rate at end of period		2.25	%		2.38	%

As of March 31, 2012, $50.0 million of the borrowings under Ecova's committed line of credit were classified as long-term and $10.0 million were classified as short-term.