Avista Continues Leadership Realignment Larry Stanley Named To Replace Tom Matthews As Chairman

Tom Matthews resigned as chairman of Avista Corp. on Friday.

Larry Stanley, chairman and president of Empire Bolt & Screw in Spokane, will succeed Matthews as non-executive chairman. He will serve until next May.

The company’s board of directors, which met Thursday and Friday at Avista’s East Mission headquarters, also confirmed Gary Ely as president and chief executive officer.

Erik Anderson of Seattle will take Matthews seat on the Avista board.

Other changes were also announced as the Spokane energy company continued an executive realignment initiated after the departure of three officers in August.

Scott Morris and Kelly Norwood added the titles of executive vice president to their other roles as president and vice president, respectively, of Avista Utilities.

Stanley, an Avista board member since 1991, said the company will continue the strategic initiatives launched by Matthews.

“We also remain diligent in our work to strengthen our utility business - the backbone of our company,” he added in a statement.

Avista’s woes started last spring, when errant electricity trades at Avista Utilities cascaded into a $123 million loss for the second quarter.

A series of shareholder lawsuits followed. Three executives responsible for the trading disaster were ousted.

In late September, the Washington Utilities and Transportation Commission rejected an electricity rate increase request, instead ordering a minor decrease.

A companion request for natural gas increases was cut by two-thirds.

Three weeks ago, Matthews announced he would step down as chairman at year end. Ely was named named interim president and CEO.

Avista spokesman Steve Becker said the board of directors, with Mathews resignation in hand, decided to proceed with its own succession plan.

Members will choose a permanent replacement after next May’s annual meeting, he said, adding that an outside search is not planned.

Matthews will be available to advise the company, Becker said.

Besides his duties at Empire Bolt & Screw, Stanley serves on the boards of Output Technology Corp. and The Coeur d’Alenes Co., both in Spokane.

Ely joined Avista in 1967 and has served in a variety of positions. He was executive vice president prior to his latest promotion.

Morris has been with the company 20 years. Before becoming president of the utility in August, he had managed the company’s operations in California and Oregon.

Norwood, a 19-year employee, has worked in Avista’s power supply and rates operations.

Anderson’s only previous connection with Avista was through his father, who was an electrical engineer for the company for 20 years.

Anderson is the CEO of Seattle-based Matthew G. Norton Co., where he has directed strategic planning. Previously, he was the CEO of Trillium Corp., a holding company with timber, real estate and growth company interests.

Anderson also was a partner in a private merchant bank, Frazier & Company LP, and vice president of Goldman, Sachs & Co.

“His extensive investment and management background and his high-tech experience will be a strong asset for us,” Stanley said.