Plain-English framing. A 'memorandum of understanding' (MOU) in utility-customer land is a non-binding framework agreement — it commits both sides to negotiate in good faith but does not lock in tariffs, contract terms, or capacity allocations. Avista's MOU is unusually large: 125 MW at-start with a 500 MW expansion path on a system that historically serves a max ~1,000 MW peak. So just confirming the existence of the framework forces Avista into a multi-year transmission and generation planning cycle, even though the deal is not yet binding. What the next 6-12 months look like procedurally. The MOU's next step is an engineering and procurement contract (EPC) with financial assurances — meaning the customer would post collateral against the cost of the infrastructure Avista has to build (substations, transmission tie-ins, generation procurement). After EPC comes local zoning permits (Spokane City is where the moratorium fight is happening), then state environmental permits (Washington Department of Ecology water and air authority), then federal permits where applicable (Clean Water Act 404, possibly Clean Air Act Title V). The location stays confidential under the MOU NDA. The likely candidates are Spokane County (which is why the city moratorium got introduced), Spokane Valley (a separate city to the east), or the Airway Heights / West Plains corridor near Fairchild Air Force Base. The mystery is what made the political moment — confirmation without disclosure compounded resident opposition more than a clean joint announcement would have.
Primary source · Spokesman-Review (June 3 + June 9 stories) / KXLY ↗
Why it matters
This is the operational template for 'small-utility-meets-hyperscaler' moments that will repeat across the country in 2026-2027: a customer too large for the host utility's planning assumptions, an MOU that triggers a regulatory review cycle, and a local moratorium that arrives before the contract is even binding. Cliff's underwriting product needs a 'utility MOU stage' explicit indicator — service areas where a single MOU represents >25% of system peak should flag automatically as 'high moratorium risk' for the next 12 months.
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DCD / Power Magazine / Power Engineering ↗
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