<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 23, 1999
AVISTA CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
Washington 1-3701 91-0462470
------------------------------- ------------ -------------------
<S> <C> <C>
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1411 East Mission Avenue, Spokane, Washington 99202-2600
--------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 509-489-0500
--------------------------------------------------- ------------
Web site: http://www.avistacorp.com
</TABLE>
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER INFORMATION
A copy of the press release announcing a redirection of Avista Energy's focus
away from national energy trading toward a more regionally based energy
marketing and trading effort backed by physical assets is attached hereto as
Exhibit 99 and is incorporated herein by reference. Neither the filing of any
press release as an exhibit to this Current Report nor the inclusion in such
press releases of a reference to the Company's Internet address shall, under any
circumstances, be deemed to incorporate the information available at such
Internet address into this Current Report. The information available at the
Company's Internet address is not part of this Current Report or any other
report filed by the Company with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AVISTA CORPORATION
(Registrant)
Date: December 2, 1999 /s/ Jon E. Eliassen
----------------------------------------
Jon E. Eliassen
Senior Vice President and
Chief Financial Officer
(Principal Accounting and
Financial Officer)
<PAGE> 1
EXHIBIT 99
[AVISTA CORP. LOGO] NEWS RELEASE
CONTACT: Media: Steve Becker (509) 495-4264 Email: [email protected]
Investor: David Brukardt (509) 495-2833 Email: [email protected]
FOR IMMEDIATE RELEASE:
NOVEMBER 23, 1999
AVISTA CORP. AFFILIATE, AVISTA ENERGY, TO REFOCUS ITS ENERGY TRADING UNIT
CHANGING MARKET PROMPTS SHIFT TO REGIONAL MARKETING IN WESTERN U.S.
SPOKANE, WASH: Avista Corp. (NYSE:AVA) affiliate Avista Energy today announced a
redirection of its focus away from national energy trading toward a more
regionally based energy marketing and trading effort backed by physical assets.
Costs to effect the transition are estimated to be between $10 million and $15
million dollars and will be reflected in normal expenses during the next six
months. The company is presently evaluating a number of options including the
sale of a portion of the business.
The move toward regionally focused energy-marketing activities follows
significant changes in the overall energy trading and marketing industry that
have created low margins while requiring higher levels of investment, credit
commitments and value-at-risk limits. Mergers and consolidations within the
industry have also created a small number of large players and a marketplace
where liquidity has decreased and volatility has risen.
"Our acquisition of Vitol Gas & Electric earlier this year allowed Avista
Energy to assemble one of the strongest and fastest-growing energy trading and
marketing teams in the United States. This team has been successful and we will
continue to benefit from the knowledge and systems acquired," said T.M.
Matthews, Avista Corp. board chairman, president and chief executive officer.
"Because of the risks inherent in the evolving market, we have concluded we must
refocus Avista Energy to the Western United States where we can back our
business with physical assets and build on our strengths gained from our direct
knowledge of and experience with markets and facilities within the region,"
Matthews said.
Matthews added that a factor in the decision to refocus Avista Energy was
the growing success of Avista Advantage which is successfully demonstrating the
ability to act as a "virtual utility" by providing a wide range of
<PAGE> 2
analytical tools such as energy analysis, load profiling and aggregation, and
facility and commodity management for multi-site business customers across the
nation. These tools are provided through its proprietary Internet-based ACIS
product which offers superior e-commerce technology for businesses seeking to
lower their utility expenditures and manage their commodity purchases.
"As the analytic services available to businesses through Avista
Advantage's Internet-based product continue to grow and evolve, we have
determined that its success is no longer dependent on the ability to provide
Avista Energy's national energy commodity-management services," said Matthews.
"Avista Advantage is able to act on the customer's behalf to provide tools to
allow the customer to seek out cost-lowering energy solutions without Avista
incurring the risk associated with providing the service directly."
Matthews estimates it will take between three and six months to transition
the business to a Western regional focus. During that time, Avista Energy will
engage in a process to seek a purchaser for the Houston and Boston operations.
While overall impacts on staffing are unclear, shifts associated with back
office accounting and other support functions will result in a modest increase
in positions in the Spokane offices of Avista Energy.
Avista Corp., a Fortune 500 company, is an energy, information and
technology company with utility and subsidiary operations located throughout
North America. Avista Corp.'s portfolio of businesses is focused on delivering
superior products and providing innovative solutions to business and residential
customers throughout the United States and Canada.
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 Communications, Avista Development and Pentzer
Corporation. Avista Corp.'s stock is traded under the ticker symbol "AVA." For
more information about Avista Corp. and its affiliate businesses, visit the
corporate website at www.avistacorp.com
This news release contains forward-looking statements regarding the
company's current expectations. These statements are subject to a variety of
risks and uncertainties that could cause actual results to differ materially
from the expectations. These risks and uncertainties include, in addition to
those discussed herein, all of the factors discussed in the company's Annual
Report on Form 10-K for the year 1998 and the Quarterly Report on Form 10-Q for
the quarter ended September 30, 1999.
Avista Corp. and the Avista Corp. logo are trademarks of Avista
Corporation. All other trademarks mentioned in this document are the property of
their respective owners.
