<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): January 6, 2000
AVISTA CORPORATION
(Exact name of registrant as specified in its charter)
Washington 1-3701 91-0462470
(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
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER INFORMATION
A copy of the press release announcing lower utility revenues due to warm
weather and fourth quarter charges due to restructuring at Avista Energy and
impairment of utility 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: January 10, 2000 /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: Laurine Jue 509-495-2510 e-mail: [email protected]
Investors: Dave Brukardt 509-495-2833 e-mail: [email protected]
FOR IMMEDIATE RELEASE:
JANUARY 6, 2000
AVISTA CORP. TO REPORT LOWER REVENUES DUE TO WEATHER
Anticipates Fourth Quarter Charge Due to
Restructuring and Impairment Recognition
SPOKANE, WASH.: Avista Corp. (NYSE: AVA) today announced that lower demand for
electricity and natural gas resulting from unseasonably warm weather is expected
to adversely affect quarterly utility revenues and earnings. Preliminary
estimates for the quarter indicate that heating degree day totals in all of the
Avista Utilities key markets will fall 10 percent to 15 percent below Avista's
expectations.
Avista Corp. will record a $32 million after-tax charge to be taken in
the fourth quarter of 1999. The charge has two components: $27 million related
to its previously announced downsizing of Avista Energy trading operations and
$5 million of additional charges related to impaired utility assets in the
Pacific Northwest and other items. The portion of the charge related to Avista
Energy reflects discontinued operations in Houston and Boston and includes the
majority of the $10 million to $15 million in estimated costs previously
announced.
The dramatic changes in the energy trading and marketing business over
the past year caused Avista Corp. to reevaluate the need for a national trading
perspective with its Avista Energy subsidiary. As a result, Avista Corp. has
elected to focus Avista Energy's primary efforts on asset-backed energy
marketing in the West and Northwest. The reductions in the energy trading
business are expected to result in the elimination of approximately 80
positions, primarily in Houston and Boston.
<PAGE> 2
In November, Avista Corp. announced it was evaluating a number of
options for Avista Energy, including the sale of a portion of the business.
While these efforts may continue, no such sale is considered probable at this
time. Avista will seek a buyer for Avista Energy's Eastern book of business.
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 businesses focus 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
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.
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 Sept. 30, 1999.
