Derivatives and Risk Management (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedges [Abstract]

Schedule of Energy Commodity Derivative Volumes

The following table presents the underlying energy commodity derivative volumes as of September 30, 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
Remainder 2020		—		262		8,502		32,730		38		409		2,138		12,650
2021		—		123		6,380		54,455		—		307		2,840		34,710
2022		—		—		450		17,080		—		—		—		6,020
2023		—		—		—		2,700		—		—		—		—

As of September 30, 2020, there are no expected deliveries of energy commodity derivatives after 2023.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2019 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
2020		2		442		9,813		78,803		133		1,724		2,984		37,848
2021		—		—		153		25,523		—		246		1,040		13,108
2022		—		—		225		4,725		—		—		—		675

As of December 31, 2019, there are no expected deliveries of energy commodity derivatives after 2022.

(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, 2020 and December 31, 2019 (dollars in thousands):

	September 30, 2020		December 31, 2019
Number of contracts		24		20
Notional amount (in United States dollars)	$	5,887	$	5,932
Notional amount (in Canadian dollars)		7,777		7,828

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, 2020 and December 31, 2019 (dollars in thousands):

Balance Sheet Date	Number of Contracts		Notional Amount		Mandatory Cash Settlement Date
September 30, 2020		4		45,000	2021
		11		120,000	2022
		1		10,000	2023
December 31, 2019		7		70,000	2020
		3		35,000	2021
		10		110,000	2022

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, 2020 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted (1)			Net Asset (Liability) on Balance Sheet
Foreign currency exchange derivatives
Other current liabilities	$	7	$	(52	)	$	—		$	(45	)
Interest rate swap derivatives
Other non-current liabilities and deferred credits		—		(66,598	)		10,100			(56,498	)
Energy commodity derivatives
Other current assets		27,305		(22,188	)		(4,551	)		566
Other property and investments-net and other non-current assets		8,221		(3,976	)		(1,072	)		3,173
Other current liabilities		136		(4,534	)		—			(4,398	)
Total derivative instruments recorded on the balance sheet	$	35,669	$	(97,348	)	$	4,477		$	(57,202	)

(1) Positive amounts represent cash collateral posted by the Company with other counterparties and negative amounts represent an obligation to return cash to the Company’s counterparties under master netting and collateral agreements.

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 2019 (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	$	97	$	—		$	—	$	97
Interest rate swap derivatives
Other current assets		589		—			—		589
Other current liabilities		238		(9,379	)		1,316		(7,825	)
Other non-current liabilities and deferred credits		725		(24,677	)		5,454		(18,498	)
Energy commodity derivatives
Other current assets		416		(245	)		—		171
Other property and investments-net and other non-current assets		6,369		(5,446	)		—		923
Other current liabilities		34,760		(41,241	)		3,378		(3,103	)
Other non-current liabilities and deferred credits		28		(1,215	)		—		(1,187	)
Total derivative instruments recorded on the balance sheet	$	43,222	$	(82,203	)	$	10,148	$	(28,833	)

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, 2020 and December 31, 2019 (in thousands):

	September 30,			December 31,
	2020			2019
Energy commodity derivatives
Cash collateral posted	$	—		$	7,812
Letters of credit outstanding		21,500			17,400
Balance sheet offsetting		(5,623	)		3,378
Interest rate swap derivatives
Cash collateral posted		10,100			6,770
Balance sheet offsetting		10,100			6,770

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, 2020 and December 31, 2019 (in thousands):

	September 30,		December 31,
	2020		2019
Energy commodity derivatives
Liabilities with credit-risk-related contingent features	$	3	$	814
Additional collateral to post		3		814
Interest rate swap derivatives
Liabilities with credit-risk-related contingent features		66,598		34,056
Additional collateral to post		56,498		26,912