Derivatives and Risk Management (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedges, Assets [Abstract]

Schedule of Energy Commodity Derivative Volumes

The following table presents the underlying energy commodity derivative volumes as of June 30, 2024 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 2024		6		22		16,240		28,818		384		417		636		5,678
2025		—		—		20,613		24,585		317		175		1,115		1,125
2026		—		—		10,348		8,040		—		—		—		—
2027		—		—		2,475		900		—		—		—		—

As of June 30, 2024, there were no expected deliveries of energy commodity derivatives after 2027.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2023 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
2024		9		—		22,747		74,596		472		510		1,723		12,038
2025		—		—		12,505		19,590		11		96		1,115		1,125
2026		—		—		5,570		3,940		—		—		—		—

As of December 31, 2023, there were no expected deliveries of energy commodity derivatives after 2026.

(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 June 30, 2024 and December 31, 2023 (dollars in thousands):

	June 30,		December 31,
	2024		2023
Number of contracts		24		5
Notional amount (in United States dollars)	$	1,905	$	81
Notional amount (in Canadian dollars)		2,608		109

Summary of Unsettled Interest Rate Swap Derivatives

The following table summarizes the unsettled interest rate swap derivatives outstanding as of June 30, 2024 and December 31, 2023 (dollars in thousands):

Balance Sheet Date	Number of Contracts		Notional Amount		Mandatory Cash Settlement Date
June 30, 2024		1	$	10,000	2025
December 31, 2023		2	$	20,000	2024
		1		10,000	2025

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 June 30, 2024 (in thousands):

	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted		Net Asset (Liability) on Balance Sheet
Interest rate swap derivatives
Other property and investments-net and other non-current assets		483		—			—		483
Energy commodity derivatives
Other current assets		5,444		(982	)		—		4,462
Other property and investments-net and other non-current assets		265		—			—		265
Other current liabilities		10,372		(56,076	)		21,940		(23,764	)
Other non-current liabilities and deferred credits		1,575		(12,202	)		1,962		(8,665	)
Total derivative instruments recorded on the balance sheet	$	18,139	$	(69,260	)	$	23,902	$	(27,219	)

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 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	$	2	$	—		$	—	$	2
Interest rate swap derivatives
Other current assets		3,667		—			—		3,667
Other non-current liabilities and deferred credits		—		(182	)		—		(182	)
Energy commodity derivatives
Other current assets		8,531		(379	)		—		8,152
Other current liabilities		19,510		(79,082	)		42,355		(17,217	)
Other non-current liabilities and deferred credits		2,913		(20,633	)		—		(17,720	)
Total derivative instruments recorded on the balance sheet	$	34,623	$	(100,276	)	$	42,355	$	(23,298	)

Schedule of Collateral Outstanding Related to Derivative Instruments

The following table presents collateral outstanding related to its derivative instruments as of June 30, 2024 and December 31, 2023 (in thousands):

	June 30,		December 31,
	2024		2023
Energy commodity derivatives
Cash collateral posted	$	23,902	$	43,095
Letters of credit outstanding		6,900		20,000
Balance sheet offsetting		23,902		42,355

No letters of credit were outstanding, and no cash collateral was on deposit, related to interest rate swap derivatives as of June 30, 2024 and December 31, 2023.

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 June 30, 2024 (in thousands):

	June 30,
	2024
Energy commodity derivatives
Liabilities with credit-risk-related contingent features	$	22,440
Additional collateral to post		22,991