Avista cuts back top-level salaries to avoid layoffs

Associated Press

SPOKANE — Avista Corp. is cutting executive salaries, cell phone use and other expenses in an attempt to avoid layoffs.

Executives at the energy and technology corporation will see their pay cut by 15 percent and managers by 5 percent, Avista spokesman Pat Lynch said Thursday. About 175 people will be affected.

Lynch said the company will also curtail credit card, travel and training expenses.

Lynch had no estimate of potential savings. "It will be significant," he said.

The company, whose subsidiaries employ 2,000 workers, announced a hiring freeze in July.

For more than a year, Avista’s biggest subsidiaries — Avista Utilities and Avista Energy — saw electricity and natural gas prices soar to record levels. Since June, however, those prices have plunged.

Avista Energy, the company’s energy-trading subsidiary, has prospered, but Avista Utilities has been whipsawed by the up-and-down prices.

The company has asked Washington and Idaho regulators for electricity rate surcharges to cover the costs of a new generating plant and losses from high wholesale power costs.

If approved, the 36.9 percent surcharge in Washington means an average customer using 1,000 kilowatt-hours per month would pay an additional $16.26. Idaho regulators were asked to approve a 14.7 percent surcharge, or an additional $7.55 per month.

The staff of the Washington Utilities and Transportation Commission called earlier this month for Avista to undergo a full review of expenses and revenue to make sure the rate increase is justified.

Lynch said the belt-tightening is unrelated to the rate cases, which will be the subject of public hearings within the next few weeks.

Avista stock closed at $16.37, down 42 cents, on the New York Stock Exchange on Thursday. It opened at $16.45 Friday.

Credit-rating agencies have downgraded Avista’s bonds and other debt to below investment grade. Bankers have refused to fund continued construction on a natural gas-fired generating plant near Hermiston, Ore.

"There’s tremendous pressure on the company," Lynch said. "We’re trying to do everything we can internally to control the situation."

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Pharmacist John Sontra and other employees work on calling customers to get their prescriptions transferred to other stores from the Bartell Drugs Pharmacy on Hoyt Avenue on Wednesday, July 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Bartell Drugs location shutters doors in Everett

John Sontra, a pharmacist at the Hoyt Avenue address for 46 years, said Monday’s closure was emotional.

Wine is illuminated on a large win rack at the center of the main room at Long Shadows Woodinville Tasting Room & Key Club Lounge on Friday, Feb. 28, 2025 in Woodinville, Washington. (Olivia Vanni / The Herald)
Two winery restaurants in Woodinville stand out

You wouldn’t expect to get world-class pizza at a winery,… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.