Avista Corp. (AVA, Financial) filed Quarterly Report for the period ended 2009-03-31.
Avista Corp. is a diversified energy company with utility and subsidiaryoperations located throughout North America. Avista Corp. also operates Avista Capital which owns all the company's non-regulated energy and non-energy businesses. Avista Capital companies include Avista Energy Avista Energy Canada Ltd. Avista Power Avista Advantage Avista Labs Avista Fiber Avista Communiations Avista Development and Pentzer Corporation. (PRESS RELEASE) Avista Corp. has a market cap of $852.4 million; its shares were traded at around $15.6 with a P/E ratio of 11.5 and P/S ratio of 0.5. The dividend yield of Avista Corp. stocks is 4.6%. Avista Corp. had an annual average earning growth of 0.4% over the past 10 years.
As of March 31, 2009, we had a combined $354.1 million of available liquidity under our $320.0 million committed line of credit, $200.0 million committed line of credit, and $85.0 million revolving accounts receivable sales facility.
On April 1, 2009, we redeemed the total amount outstanding ($61.9 million) of our Junior Subordinated Debt Securities held by AVA Capital Trust III (Long-term Debt to Affiliated Trusts). Concurrently, AVA Capital Trust III redeemed all of the Preferred Trust Securities issued to third parties ($60.0 million) and all of the Common Trust Securities issued to us ($1.9 million). The net redemption of $60.0 million was funded by borrowings under our $320.0 million committed line of credit agreement.
Due to market conditions and the decline in the fair value of pension plan assets, we are planning to contribute $48 million to the pension plan in 2009 ($16 million was contributed during the first quarter of 2009) as compared to the $28 million we contributed in 2008. The final determination of pension plan contributions beyond 2009 is subject to multiple variables, most of which are beyond our control, including further changes to the fair value of pension plan assets and changes in actuarial assumptions (in particular the discount rate used in determining the projected benefit obligation). We have adequate liquidity to meet our pension plan funding obligations for 2009.
In January 2009, we filed a general rate case with the WUTC requesting to increase base electric rates for our Washington customers. In the general rate case filing, we requested a net electric rate increase of 8.6 percent. The net electric rate increase is based on a requested 16.0 percent increase in billed rates with an offsetting 7.4 percent reduction in the current Energy Recovery Mechanism (ERM) surcharge. We also requested a 2.4 percent increase in natural gas rates. The filing is designed to increase annual base electric service revenues by $69.8 million ($37.5 million net after considering the reduction in the current ERM surcharge) and increase annual natural gas service revenues by $4.9 million. Our request is based on a proposed rate of return on rate base of 8.68 percent, with a common equity ratio of 47.5 percent and an 11.0 percent return on equity. The WUTC generally has up to 11 months to review a general rate case filing.
In January 2009, we filed a general rate case with the IPUC requesting to increase base electric rates for our Idaho customers. In the general rate case filing, we requested a net electric rate increase of 7.8 percent. The net electric rate increase is based on a requested 12.8 percent increase in billed rates with an offsetting 5.0 percent reduction in the current Power Cost Adjustment (PCA) surcharge. We also requested a 3.0 percent increase in natural gas rates. The filing is designed to increase annual base electric service revenues by $31.2 million ($18.9 million net after considering the reduction in the current PCA surcharge) and increase annual natural gas service revenues by $2.7 million. Our request is based on a proposed rate of return on rate base of 8.8 percent, with a common equity ratio of 50 percent and an 11.0 percent return on equity. The IPUC generally has up to seven months to review a general rate case filing.
Read the The complete ReportAVA is in the portfolios of Richard Aster Jr of Meridian Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Avista Corp. is a diversified energy company with utility and subsidiaryoperations located throughout North America. Avista Corp. also operates Avista Capital which owns all the company's non-regulated energy and non-energy businesses. Avista Capital companies include Avista Energy Avista Energy Canada Ltd. Avista Power Avista Advantage Avista Labs Avista Fiber Avista Communiations Avista Development and Pentzer Corporation. (PRESS RELEASE) Avista Corp. has a market cap of $852.4 million; its shares were traded at around $15.6 with a P/E ratio of 11.5 and P/S ratio of 0.5. The dividend yield of Avista Corp. stocks is 4.6%. Avista Corp. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:
We have a committed line of credit in the total amount of $320.0 million with an expiration date of April 5, 2011. We had $225.0 million of cash borrowings and $25.9 million in letters of credit outstanding as of March 31, 2009, under our $320.0 million committed line of credit. In November 2008, we entered into a new committed line of credit in the total amount of $200.0 million with an expiration date of November 24, 2009. We entered into this line of credit to ensure we had adequate liquidity, as conditions in the financial markets resulted in limited access to capital on reasonable terms. To date, we have not borrowed any funds under this committed line of credit.As of March 31, 2009, we had a combined $354.1 million of available liquidity under our $320.0 million committed line of credit, $200.0 million committed line of credit, and $85.0 million revolving accounts receivable sales facility.
On April 1, 2009, we redeemed the total amount outstanding ($61.9 million) of our Junior Subordinated Debt Securities held by AVA Capital Trust III (Long-term Debt to Affiliated Trusts). Concurrently, AVA Capital Trust III redeemed all of the Preferred Trust Securities issued to third parties ($60.0 million) and all of the Common Trust Securities issued to us ($1.9 million). The net redemption of $60.0 million was funded by borrowings under our $320.0 million committed line of credit agreement.
Due to market conditions and the decline in the fair value of pension plan assets, we are planning to contribute $48 million to the pension plan in 2009 ($16 million was contributed during the first quarter of 2009) as compared to the $28 million we contributed in 2008. The final determination of pension plan contributions beyond 2009 is subject to multiple variables, most of which are beyond our control, including further changes to the fair value of pension plan assets and changes in actuarial assumptions (in particular the discount rate used in determining the projected benefit obligation). We have adequate liquidity to meet our pension plan funding obligations for 2009.
In January 2009, we filed a general rate case with the WUTC requesting to increase base electric rates for our Washington customers. In the general rate case filing, we requested a net electric rate increase of 8.6 percent. The net electric rate increase is based on a requested 16.0 percent increase in billed rates with an offsetting 7.4 percent reduction in the current Energy Recovery Mechanism (ERM) surcharge. We also requested a 2.4 percent increase in natural gas rates. The filing is designed to increase annual base electric service revenues by $69.8 million ($37.5 million net after considering the reduction in the current ERM surcharge) and increase annual natural gas service revenues by $4.9 million. Our request is based on a proposed rate of return on rate base of 8.68 percent, with a common equity ratio of 47.5 percent and an 11.0 percent return on equity. The WUTC generally has up to 11 months to review a general rate case filing.
In January 2009, we filed a general rate case with the IPUC requesting to increase base electric rates for our Idaho customers. In the general rate case filing, we requested a net electric rate increase of 7.8 percent. The net electric rate increase is based on a requested 12.8 percent increase in billed rates with an offsetting 5.0 percent reduction in the current Power Cost Adjustment (PCA) surcharge. We also requested a 3.0 percent increase in natural gas rates. The filing is designed to increase annual base electric service revenues by $31.2 million ($18.9 million net after considering the reduction in the current PCA surcharge) and increase annual natural gas service revenues by $2.7 million. Our request is based on a proposed rate of return on rate base of 8.8 percent, with a common equity ratio of 50 percent and an 11.0 percent return on equity. The IPUC generally has up to seven months to review a general rate case filing.
Read the The complete ReportAVA is in the portfolios of Richard Aster Jr of Meridian Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
