Fair Value (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value [Abstract]

Carrying Value And Estimated Fair Value Of Financial Instruments

	March 31, 2012				December 31, 2011
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	962,100	$	1,099,091	$	962,100	$	1,135,536
Long-term debt (Level 3)		222,000		232,748		222,000		234,226
Nonrecourse long-term debt (Level 3)		43,165		48,227		46,471		51,974
Long-term debt to affiliated trusts (Level 3)		51,547		43,810		51,547		43,810

Fair Value Of Assets And Liabilities Measured On Recurring Basis

	Level 1		Level 2		Level 3		Counterparty Netting (1)			Total
March 31, 2012
Assets:
Energy commodity derivatives	$	—	$	21,369	$	—	$	(16,904	)	$	4,465
Level 3 energy commodity derivatives:
Power exchange agreements		—		—		1,034		(1,034	)		—
Interest rate swaps		—		5,084		—		—			5,084
Investments and funds held for clients:
Cash and cash equivalents		58,385		—		—		—			58,385
Securities available for sale:
U.S. government agency		—		78,735		—		—			78,735
Municipal		—		5,364		—		—			5,364
Corporate fixed income – financial		—		11,738		—		—			11,738
Corporate fixed income – industrial		—		6,517		—		—			6,517
Corporate fixed income – utility		—		2,114		—		—			2,114
Certificate of deposits		—		1,510		—		—			1,510
Funds held in trust account of
Spokane Energy		1,600		—		—		—			1,600
Deferred compensation assets:
Fixed income securities (2)		2,142		—		—		—			2,142
Equity securities (2)		5,773		—		—		—			5,773
Total	$	67,900	$	132,431	$	1,034	$	(17,938	)	$	183,427
Liabilities:
Energy commodity derivatives	$	—	$	103,312	$	—	$	(16,904	)	$	86,408
Level 3 energy commodity derivatives:
Natural gas exchange agreements		—		—		2,354		—			2,354
Power exchange agreements		—		—		19,606		(1,034	)		18,572
Power option agreements		—		—		987		—			987
Foreign currency derivatives		—		25		—		—			25
Interest rate swaps		—		9,241		—		—			9,241
Total	$	—	$	112,578	$	22,947	$	(17,938	)	$	117,587
December 31, 2011
Assets:
Energy commodity derivatives	$	—	$	80,571	$	—	$	(79,247	)	$	1,324
Level 3 energy commodity derivatives:
Natural gas exchange agreements		—		—		956		(956	)		—
Power exchange agreements		—		—		4,674		(4,674	)		—
Foreign currency derivatives		—		32		—		—			32
Investments and funds held for clients:
Cash and cash equivalents		21,957		—		—		—			21,957
Securities available for sale:
U.S. government agency		—		74,893		—		—			74,893
Municipal		—		425		—		—			425
Corporate fixed income – financial		—		11,154		—		—			11,154
Corporate fixed income – industrial		—		6,518		—		—			6,518
Corporate fixed income – utility		—		2,092		—		—			2,092
Certificate of deposits		—		1,497		—		—			1,497
Funds held in trust account of Spokane Energy		1,600		—		—		—			1,600
Deferred compensation assets:
Fixed income securities (2)		2,116		—		—		—			2,116
Equity securities (2)		5,252		—		—		—			5,252
Total	$	30,925	$	177,182	$	5,630	$	(84,877	)	$	128,860

	Level 1		Level 2		Level 3		Counterparty Netting (1)			Total
Liabilities:
Energy commodity derivatives	$	—	$	177,743	$	—	$	(79,247	)	$	98,496
Level 3 energy commodity derivatives:
Natural gas exchange agreements		—		—		2,644		(956	)		1,688
Power exchange agreements		—		—		14,584		(4,674	)		9,910
Power option agreements		—		—		1,260		—			1,260
Interest rate swaps		—		18,895		—		—			18,895
Total	$	—	$	196,638	$	18,488	$	(84,877	)	$	130,249

(1) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists.

(2) These assets are trading securities and are included in other intangibles, property and investments-net on the Condensed Consolidated Balance Sheets.

Reconciliation For Energy Commodity Derivative Assets (Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents activity for net energy commodity derivative assets (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2012 (dollars in thousands):

	Natural Gas Exchange Agreements			Power Exchange Agreements			Power Option Agreements			Total
Balance as of January 1, 2012	$	(1,688	)	$	(9,910	)	$	(1,260	)	$	(12,858	)
Total gains or losses (realized/unrealized):
Included in net income		—			—			—			—
Included in other comprehensive income		—			—			—			—
Included in regulatory assets/liabilities (1)		290			(10,914	)		273			(10,351	)
Purchases		—			—			—			—
Issuances		—			—			—			—
Settlements		(956	)		2,252			—			1,296
Transfers to other categories		—			—			—			—
Ending balance as of March 31, 2012	$	(2,354	)	$	(18,572	)	$	(987	)	$	(21,913	)

The following table presents activity for net energy commodity derivative assets (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2011 (dollars in thousands):

	Natural Gas Exchange Agreements		Power Exchange Agreements			Power Option Agreements			Total
Balance as of January 1, 2011	$	—	$	15,793		$	(2,334	)	$	13,459
Total gains or losses (realized/unrealized):
Included in net income		—		—			—			—
Included in other comprehensive income		—		—			—			—
Included in regulatory assets/liabilities (1)		—		(887	)		801			(86	)
Purchases		—		—			—			—
Issuances		—		—			—			—
Settlements		—		956			—			956
Transfers to other categories		—		—			—			—
Ending balance as of March 31, 2011	$	—	$	15,862		$	(1,533	)	$	14,329

(1) The WUTC and the IPUC issued accounting orders authorizing Avista Utilities to offset commodity derivative assets or liabilities with a regulatory asset or liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity transactions until the period of settlement. The orders provide for Avista Utilities to not recognize the unrealized gain or loss on utility derivative commodity instruments in the Condensed Consolidated Statements of Income. Realized gains or losses are recognized in the period of settlement, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in adjustments to retail rates through purchased gas cost adjustments, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases.