Avista Energy Makes Changes

Avista Energy will shift some accounting and support operations to its Boston office as the trading and brokering subsidiary of Avista Corp. consolidates with Vitol Gas & Electric, spokesman Pat Lynch said Wednesday.

The decision will affect 10 to 12 Spokane employees, some of whom will be absorbed by the parent corporation, he said.

The rest will be offered severance.

Employees were told of the changes Wednesday morning.

Lynch said Avista Energy employs 60 in Spokane. Most are energy traders and marketers who will continue to handle transactions among West Coast utilities, he said.

Lynch noted that last week’s pre-announcement of Avista second-quarter earnings included mention of ongoing efforts to streamline Avista Energy.

The subsidiary, which also has offices in Houston, generates more than $3 billion in revenues for Avista.

But Chairman Tom Matthews said weak prices, unfavorable weather and lack of volatility in energy markets will likely mean the subsidiary will lose around 10 cents per share this year.

Avista purchased Boston-based Vitol earlier this year. When the deal closed, the combined companies ranked among the 10 largest energy trading operations in the U.S.