GR,
Here is some of my research information on Avista Corporation. Most of this comes from their Web page (http://www.avistacorp.com/)
BSD also started a thread on Avista last year where you can get additional information. (http://www.siliconinvestor.com/subject.aspx?subjectid=23361)
Since this is rather long and dry, I will post my opinion of Avista separately.
Lines of Business
Avista Utilities oversees all of Avista Corp.'s regulated utility business operations. Avista Utilities transmits and delivers electricity, natural gas and related services to more than 550,000 customers in four states-Washington, Idaho, Oregon and California.
Avista Advantage is the nation's leading provider of internet-based specialty bill information services. Currently, the company manages billing and energy-use information for thousands of commercial customer sites throughout all 50 states. Avista Advantage is a leader in the development and implementation of proprietary utility billing and information systems.
Avista Capital oversees all of the Avista Corp's non-regulated energy and non-energy businesses and affiliates. Avista Capital companies include Avista Energy, Avista Advantage, Avista Labs, Avista Communications, Avista Power, Avista-Steag (50% ownership) and Avista Ventures.
Avista Communications is a competitive local exchange carrier (CLEC) that provides local dial tone and data services to commercial accounts in communities with populations under 250,000.
Avista Energy provides electricity, natural gas, and coal services to wholesale customers -- as well as a growing base of end-users -- throughout the United States and Canada. Those services include delivered electricity and natural gas, risk management, and resource and portfolio optimization.
Avista Labs is a leading developer of proton exchange membrane fuel cells. Avista Labs is engineering a revolution in power generation with the development of an innovative fuel cell generator that has the potential to provide thousands of homes, businesses and commercial buildings with a custom, local power source.
Avista Power, LLC was formed to own electric generation assets throughout North America. Recently, Avista Power and Cogentrix Energy, Inc. have entered into an agreement to jointly build and/or buy interests in natural gas-fired electric generation plants in the Pacific Northwest states of Washington, Oregon and Idaho. The first project under the new agreement is an approximately 270-megawatt facility to be located in Rathdrum, Idaho. Development of new powerplant opportunities is accomplished through Avista-Steag, LLC.
Avista-Steag, LLC is a 50/50 joint venture between Avista and Steag AG, the largest independent power producer in Germany. Avista-Steag was formed to combine the project development, construction, engineering, operating and marketing skills of the companies to acquire and develop power generating plants for the joint ownership of Avista and Steag.
About Avista Labs
Taking innovation even further.
Avista Labs leads the world in reliable Local Area Energy Generation technology because our unique modular design offers better flexibility, convenience and reliability. To begin with, modular components can be sized to match the individual energy demand requirements of the end-user‹from powering a single light bulb to supplying large loads for industrial facilities. And with Avista Labs’ patented “hot-swap” power cartridges, system down time is virtually eliminated since routine maintenance can occur while the unit remains online. Our self-monitoring componentry even checks the operation of each module and takes corrective action before potential problems arise.
Meet some modern-day inventors.
Fuel cell technology has been around awhile. But the people at Avista Labs are making it a part of everyday lives. As Avista Corp’s technology development firm, our mission is to provide the world with an energy system that's more reliable, accessible and easier on the environment than combustible systems or even other fuel cell technologies. This goal will soon become reality. In fact, we have entered the market test phase and currently have working units online at a number of sites‹a critical step to assuring that our product delivers the most consistently reliable energy generation available.
As global demand for fuel cells intensifies over the next five years, Avista Labs is well positioned to respond with a unit that’s low-cost, reliable and simple to use. In fact, we plan to deliver a commercially viable product in 2001 that will satisfy opportunities in residential and other developing markets worldwide. But being the first to market with a product isn’t Avista Labs’ only desire. We never want to lose sight of what’s really important: building strong customer relationships, learning from your valuable feedback and making the most use of the technology in the long run.
In 1998, Avista Labs unveiled its fuel-cell generator prototype at the International Fuel Cell Seminar. Also in 1996 we received a $2 million technology development award from the United States Department of Commerce’s National Institute of Standards and Technology Advanced Technology Program (ATP). In March of 2000, we were issued a patent covering 162 claims for our PEM fuel cell power system.
Avista Labs’ ability to bring this revolutionary technology from drawing board to field-testing in just two years provides further proof of our ability to compete based on both speed and innovation.
Avista Laboratories, Inc., is an enterprise of Avista Capital, a wholly owned subsidiary of Avista Corp., headquartered in Spokane, Washington. (NYSE: AVA).
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This is from their annual report:
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The past year was one of change and repositioning.
Was 1999 the company’s most brilliant year? No. We had to change our strategy on utility acquisition, refocus our energy trading strategy after its losses, accelerate the growth of our start-up companies and begin a stock buy-back program. All of these collectively reduced earnings to $0.12 per basic share versus the previous year’s total of $1.28 per share.
Do I remain confident in our strategic direction? Absolutely. Here’s why: Avista Utilities is a solid, stable and reliable energy business. And from that foundation, we’re building equally solid information and technology affiliates.
Our transformation from a traditional utility company won’t happen immediately, of course, but we spent 1999, the first full year of my tenure here - putting the pieces in place and laying the groundwork for an exciting future. Early in 2000, investors began to see the value of these strategies with the movement in our stock price.
…
In last year’s annual report, I discussed my intention to expand our utility service territory through acquisitions. Given the lack of economically attractive acquisition opportunities and the uncertainty of state commission approvals on favorable terms, we’ve decided to concentrate on other growth avenues. And, while our relatively small size has its disadvantages, it also benefits us by enabling us to act quickly when we recognize that a change in direction is necessary.
Which brings me to Avista Energy, our energy marketing and trading subsidiary. It stumbled in 1999. So we’ve modified our approach.
Although Avista Energy generated $6.7 billion in revenue - far beyond our expectations - the consolidation of players within the energy trading industry and the entrance of the larger Wall Street investment firms into energy trading translated into dwindling margins. In response, we pulled back from trading as we moved into 2000, concentrating more on marketing services to large end-use customers, and transferring the systems and expertise we gained through a strategic acquisition into a more closely defined, higher-margin business. Rather than operating nationally, we’ll focus our efforts in the West where we can back our business with physical assets. We thought we needed a nationwide presence to deliver power to Avista Advantage customers but have found ways to let others do that and handle the risk. The cost of this transition was reflected in a charge in the fourth quarter.
B.K. |
