UNITED STATES
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): October 13, 2004
AVISTA CORPORATION
(Exact name of registrant as specified in its charter)
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Washington |
1-3701 |
91-0462470 |
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(State or other jurisdiction of incorporation) |
(Commission
File Number) |
(I.R.S. Employer Identification No.) |
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| 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 |
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(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 8.01 Other Events.
On October 13, 2004, Avista Corporation (Avista Corp. or the Company) and an indirect subsidiary of Mirant Corporation, Mirant Oregon, LLC (Mirant Oregon), entered into an Asset Purchase and Sale Agreement (the Agreement). A copy of Avista Corp.’s press release with respect to the Agreement is filed as exhibit 99(a). The Agreement provides for Avista Corp.’s acquisition of Mirant Oregon’s 50 percent ownership interest in the 280 megawatt (MW) combined cycle natural gas-fired Coyote Springs 2 Generation Project (Coyote Springs 2) at a price of $62.5 million (subject to adjustment). Mirant Oregon acquired its 50 percent ownership interest in Coyote Springs 2 from the Company during construction in 2001. Mirant Corporation and certain of its affiliates are currently
in bankruptcy. As a result, the Agreement will be subject to higher or otherwise better offers submitted in connection with a competitive auction to be held on or before December 17, 2004. The transaction would need to be approved by the U.S. Bankruptcy Court and the Federal Energy Regulatory Commission and would also need to meet certain other federal and state regulatory requirements.
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 Internet address of Avista Corp. or Avista Utilities shall, under any circumstances, be deemed to incorporate the information available at such Internet addresses into this Current Report. The information available at the Internet address of Avista Corp. or Avista Utilities is not part of this Current Report or any other report furnished or filed by Avista Corp. with the Securities and Exchange Commission.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
| (a) | Exhibits | ||
| 99 (a) | Press release dated October 15, 2004. | ||
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 | ||
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| Date: October 15, 2004 | By: | /s/ Malyn K. Malquist |
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| Malyn K. Malquist Senior Vice President, Chief Financial Officer and Treasurer | ||
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[LOGO AVISTA CORPORATION]
EXHIBIT 99(A)
NEWS RELEASE
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CONTACT: Media: Hugh Imhof (509) 495-4264, hugh.imhof@avistacorp.com
Investors: Jason Lang (509) 495-495-2930, jason.lang@avistacorp.com
FOR IMMEDIATE RELEASE:
October, 15, 2004
4:30 p.m. EST
AVISTA TO BUY REMAINING INTEREST IN COYOTE SPRINGS 2
TRANSACTION WILL HELP MEET FUTURE ENERGY DEMANDS
SPOKANE, WASH.: Avista Corp. (NYSE: AVA) has entered into an agreement to
purchase the remaining half interest in the Coyote Springs 2 generating station
from Mirant (OTC PINK SHEETS: MIRKQ). If the sale is completed, Avista will own
the entire facility and an additional 140 megawatts of generating capacity to
serve its customers' future energy needs.
The proposed purchase price is $62.5 million, subject to adjustment.
Because Mirant and certain of its affiliates are currently in bankruptcy,
the agreement will be subject to a competitive auction. The transaction must be
approved by the U.S. Bankruptcy Court and the Federal Energy Regulatory
Commission, and must meet a number of other federal and state regulatory
requirements. The transaction could be completed by the end of 2004 or early in
2005.
Coyote Springs 2 is located near Boardman, Oregon. The 280-megawatt,
natural gas powered, combined cycle combustion turbine began commercial
operation in July 2003. Mirant purchased a half interest in the plant from
Avista during construction in 2001.
Avista's decision to reacquire full ownership of the plant was driven
primarily by the fact that the company's long-term resource plan includes the
need for the acquisition of additional gas-fired resources to complement its
long-term resource portfolio as well as an attractive purchase price,
familiarity and experience with the project, the opportunity for sole ownership
and control, and close proximity to Avista's service area.
"This transaction represents an excellent opportunity for our company and
our customers as we continue to focus our business strategy on the Northwest,"
said Gary G. Ely, chairman, president and chief executive officer of Avista
Corp. "This generating station will be a valuable and cost-effective resource to
meet the growing energy demands in our region."
--MORE--
PAGE 2 AVISTA TO BUY REMAINING INTEREST IN COYOTE SPRINGS 2
Coyote Springs 2 is now fully operational following the replacement of its
main transformer. The transformer failed in January and required a shutdown
until Sept. 7, when the plant came back on-line. An additional transformer is
being built and will be kept as a backup to minimize any future interruptions.
ABOUT AVISTA CORP.
Avista Corp. is an energy company involved in the production, transmission
and distribution of energy as well as other energy-related businesses. Avista
Utilities is a company operating division that provides service to 325,000
electric and 300,000 natural gas customers in four western states. Avista's
non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista
Corp.'s stock is traded under the ticker symbol "AVA." For more information
about Avista, please visit 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.
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