Avista Corp. endows foundation with $2 million

The Spokesman-Review | November 21, 2002` | Bert Caldwell

[lilylangtree]

Avista Corp. has created and endowed a foundation that will gradually take over the bulk of the company's corporate giving. Avista Foundation will help insulate charitable contributions from fluctuations in Avista earnings, said Senior Vice President Scott Morris. "The creation of the Avista Foundation affirms our company's conviction that good corporate citizenship is as much a part of our mission as is providing reliable energy," Morris said in a prepared statement.

Anne Marie Axworthy wil serve as foundation president and Debbie Simock will serve as executive director. Axworthy will remain Avista Utilities' director of community and public affairs. Simock is the utility's community investment manager. Axworthy said Avista endowed the foundation with $2 million, the proceeds from the sale of the company's remaining stake in Itron Inc. Itron was majority owned by Avista before the maker of metering equipment went public in 1993. Simock said the donation will be used to reduce Avista's income tax obligations.

Axworthy said the foundation must donate an amount equivalent to 5% of its endowment each year, which translates to $100,000 based on the initial Avista contribution. Avista giving has averaged about $600,000 over the last five years, she said.

Last year Simock said, Avista awarded 450 grants, 83% of which were for $1,000 or less. The company, beset by financial problems the last year or so, usually made about 700 grants in better times.

Axworthy said Avista will gradually decrease corporate giving while increasing the foundation endowment. But the corporation will never entirely discontinue charitable contributions she said. Many causes that Avista has helped in the past are not registered 501(c)(3) organizations to which the foundation must donate, she said. Axworthy said an independent, seven-member board will guide foundation giving. She and Simock will continue to manage corporate giving under the direction of company officers she said.

Contributions are made within Avista service territories in Eastern Washington, North Idaho, southern Oregon and South Lake Tahoe, CA, Axworthy said, as well as Sanders County, MT, the location of Avista's largest hydroelectric project. Foundation contributions will focus on human services and schools, she said, with Project Share, Spokane Neighborhood Action Programs, United Way and educational programs from kindergarten through college among the likely beneficiaries. Grant information will be available at the foundation's website--www.avistafoundation.org.

[lilylangtree]

As a customer of Avista that experienced a 37.5% hike in an approved rate hike (courtesy of the democrat governor's appointees of the Washington Utilities Transportation Commission disregarding 100% public commenting disapproval) in October 2001 with only 11% of the 37.5% going towards the increased cost of service, I resent the fact that my money is going into a foundation that makes distribution where I have no say on where the money is to be applied. Frankly, I could use the 26.5% increase to pay my bills. Further, I'm prevented by law change utility companies. Then, when I observe Gary Ely, President & CEO of Avista, volunteering the company plane(s) to fly non-company personnel all over the country, I get angry all over again. This doesn't even touch Avista's role in the Enron scandal. Avista is a rip-off company in the first degree.