CORRECTION -- Avista joins lawsuit to Challenge Montana Statute

Rhea-AI Summary

Avista Corporation has filed a lawsuit against the State of Montana, challenging newly enacted Senate Bills 265 and 266. The company, along with other owners of the Colstrip power plant, believes these statutes undermine a longstanding contract regarding ownership and operations. Avista argues that the bills are unlawful and unconstitutional, prompting legal action to protect customer and shareholder rights. Additionally, Avista remains committed to finding solutions for the Colstrip community and has donated $3 million to support its transition.

Positive

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

Negative

• Avista is forced to take legal action against the State of Montana due to Senate Bills 265 and 266.
• The bills are viewed as unlawful and unconstitutional by Avista, potentially leading to prolonged legal disputes.

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

SPOKANE, Wash., May 04, 2021 (GLOBE NEWSWIRE) -- In the release issued earlier today by Avista Corporation, please note that the company is not pursuing legal action against the State of Montana. Rather, the company is taking legal action against a recently-enacted statute in the state. The headline has been corrected and the updated news release follows:

Avista Corporation took legal action to challenge a statute recently enacted in 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 is Avista Corporation taking regarding Senate Bills 265 and 266?

Avista Corporation has filed a lawsuit against the State of Montana to challenge Senate Bills 265 and 266, which it believes disrupt a 40-year ownership contract.

Why does Avista believe Senate Bills 265 and 266 are unconstitutional?

Avista contends that the bills unlawfully amend the Colstrip Ownership and Operating Agreement, invalidating long-standing arbitration provisions.

What is the impact of Avista's lawsuit on shareholders?

The lawsuit aims to protect shareholder rights under the existing Colstrip agreement, but it also indicates potential legal and operational challenges ahead.

What has Avista done for the Colstrip community?

Avista has contributed $3 million to a fund aimed at aiding the transition of the Colstrip community.

What is Avista's position on the newly signed Senate Bills?

Avista expresses disappointment over the passing of the bills and is pursuing legal action to address the perceived violation of contractual rights.