Short-Term Borrowings

6 Months Ended

Jun. 30, 2025

NOTE 8. SHORT-TERM BORROWINGS

Avista Corp.

Lines of Credit

Avista Corp. has a committed line of credit in the total amount of $500 million, with an expiration date of June 2029. The Company may request that the lenders extend their commitments for an additional one-year period (subject to customary conditions). The committed line of credit is secured by non-transferable first mortgage bonds of Avista Corp. issued to the agent bank that are payable only to the extent that Avista Corp. defaults on its obligations under the committed line of credit.

Balances outstanding and interest rates on borrowings (excluding letters of credit) under Avista Corp.’s revolving committed line of credit were as follows as of June 30, 2025 and December 31, 2024 (dollars in millions):


	June 30,			December 31,
	2025			2024
Borrowings outstanding at end of period (1)	$	389		$	342
Letters of credit outstanding at end of period	$	5		$	5
Average interest rate on borrowings at end of period		5.42	%		5.52	%

(1) As of June 30, 2025, there was $389 million outstanding under the committed line of credit; however, $270 million was classified as short-term borrowings and $119 million was classified as long-term on the Condensed Consolidated Balance Sheet due to the Company's intention to refinance such amount on a long-term basis. The amount classified as long-term debt was refinanced through the issuance and sale of first mortgage bonds in July 2025. See Note 9 for further discussion of the first mortgage bonds and the refinancing of short-term debt on a long-term basis. The entire outstanding amount of the committed line of credit as of December 31, 2024 was classified as short-term borrowings on the Condensed Consolidated Balance Sheet.

Letter of Credit Facility

Avista Corp. has a letter of credit agreement in the aggregate amount of $50 million. Either party may terminate the agreement at any time.

Avista Corp. had $8 million and $12 million in letters of credit outstanding under this agreement as of June 30, 2025 and December 31, 2024, respectively. Letters of credit are not reflected on the Condensed Consolidated Balance Sheets. If a letter of credit were drawn upon by the holder, Avista Corp. would have an immediate obligation to reimburse the bank that issued the letter of credit.

Covenants and Default Provisions

The short-term borrowing agreements contain customary covenants and default provisions, including a change in control (as defined in the agreements). The events of default under each of the credit facilities also include a cross default from other indebtedness (as defined) and, in the case of the letter of credit agreement, other obligations. The committed line of credit agreement also includes 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 June 30, 2025, the Company complied with this covenant.

AEL&P

AEL&P has a committed line of credit in the amount of $25 million that expires in June 2028. The committed line of credit is secured by non-transferable first mortgage bonds of AEL&P issued to the agent bank that would only become due and payable in the event, and then only to the extent, that AEL&P defaults on its obligations under the committed line of credit.

Balances outstanding and interest rates on borrowings under AEL&P’s revolving committed line of credit were as follows as of June 30, 2025 and December 31, 2024 (dollars in millions):


	June 30,			December 31,
	2025			2024
Borrowings outstanding at end of period (1)	$	16		$	12
Average interest rate on borrowings at end of period		5.89	%		6.13	%

(1) As of June 30, 2025, the $16 million outstanding under the committed line of credit was classified as long-term on the Condensed Consolidated Balance Sheet due to AEL&P's intention to refinance such amount on a long-term basis. The borrowings were refinanced through entering a term loan agreement in July 2025. See Note 9 for further discussion of the term loan and the refinancing of short-term debt on a long-term basis. The entire outstanding amount of the committed line of credit as of December 31, 2024 was classified as short-term borrowings on the Condensed Consolidated Balance Sheet.

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 at AEL&P" to "consolidated total capitalization at AEL&P," including the impact of the Snettisham bonds to be greater than 67.5 percent at any time. As of June 30, 2025, AEL&P complied with this covenant.