Avista Corp. joins lawsuit against State of Montana

Rhea-AI Summary

Avista Corporation, together with other owners of the Pacific Northwest Colstrip plant, has filed a lawsuit against the State of Montana following the signing of Senate Bills 265 and 266. Avista argues these bills disrupt a nearly 40-year contract among the Colstrip owners. The lawsuit primarily targets Senate Bill 265, claiming it undermines the existing arbitration provisions of the Colstrip Ownership and Operating Agreement. Avista has expressed disappointment in the state's actions but remains committed to finding solutions that serve all stakeholders involved.

Positive

• Avista has contributed $3 million to aid the Colstrip community's transition.
• The company aims for continued engagement with the State of Montana on Colstrip-related issues.

Negative

• The lawsuit indicates potential legal uncertainties surrounding the Colstrip Ownership and Operating Agreement.
• Senate Bills 265 and 266 may disrupt long-standing contractual agreements, affecting future operations.

Pacific Northwest Colstrip Owners take legal action over newly signed senate bill

SPOKANE, Wash., May 04, 2021 (GLOBE NEWSWIRE) -- Avista Corporation took legal action against the State of Montana today, filing a lawsuit with the Pacific Northwest Colstrip owners—Puget Sound Energy, PacifiCorp and Portland General Electric—after Montana Governor Gianforte signed Senate Bills 265 and 266 into law.

“As we shared in a letter to Governor Gianforte last month, we believe Senate Bills 265 and 266 disrupt a contract between and among the Colstrip owners that has existed for nearly 40 years,” said Avista’s Senior Vice President of Energy Resources Jason Thackston. “We urged Governor Gianforte to veto the bills because we believe they are both unlawful and unconstitutional, and we have pursued legal action today with other Colstrip owners to protect the rights of our customers and shareholders under the existing contract.”

Avista has worked for years to find a solution that addresses the needs of Montana, the Colstrip community, our customers and other stakeholders affected by the plant’s future, and we will continue to seek those solutions. Demonstrating our commitment to the welfare of the Colstrip community, Avista has contributed $3 million to the Montana Foundation to distribute through a donor-advised fund for aiding the community’s transition.

“We are disappointed that the State of Montana has chosen to pass these bills and that we have been forced to take legal action as a result,” said Thackston. “Nonetheless, we remain committed to engaging with the State of Montana on issues relating to Colstrip and to searching for potential solutions that balance the interests of all involved stakeholders.”

The lawsuit filed today is directed specifically at Senate Bill 265 which purports to amend Section 27-5-323 of the Montana Code to invalidate the Colstrip Ownership and Operating Agreement’s provision governing the arbitration of disputes arising under the contract. That provision has been in place for the nearly 40 years that the agreement has been in effect and has been used effectively by the co-owners to resolve disputes on multiple occasions in the past.

About Avista
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 the operating division that provides electric service to 400,000 customers and natural gas to 367,000 customers. Its service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista 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.

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Contact:
Media:	Avista 24/7 Media Access (509) 495-4174
	Casey Fielder, casey.fielder@avistacorp.com

FAQ

What legal action has Avista Corporation taken regarding Senate Bills 265 and 266?

Avista Corporation, along with other Colstrip owners, has filed a lawsuit against the State of Montana to challenge Senate Bills 265 and 266, which they claim disrupt a long-standing contract.

What are the implications of Senate Bill 265 on Avista's operations?

Senate Bill 265 is seen as undermining the arbitration provisions of the Colstrip Ownership and Operating Agreement, leading to potential legal uncertainties.

How much has Avista contributed to the Colstrip community?

Avista has contributed $3 million to the Montana Foundation to support the community's transition related to the Colstrip plant.

What is Avista's position on Senate Bills 265 and 266?

Avista is disappointed with the passage of these bills and believes they are unlawful and unconstitutional, prompting their legal challenge.