Latest news with #AvistaUtilities
Yahoo
4 days ago
- Climate
- Yahoo
Avista launches safety mode as conditions move toward fire season
Jun. 3—Avista Utilities announced on Tuesday that with the onset of summer-like conditions and increasing wildfire danger in the region, it has moved to what it calls "Fire Safety Mode," which will lead to temporary changes to its power line operations. The utility has done this for two decades, but it has renewed importance following the devastating Gray and Oregon Road fires, which destroyed a combined 366 homes and 710 structures on August 18, 2023. Together, those blazes were the most destructive in state history. "Wildfire preparedness is not just a seasonal effort — it's a year-round responsibility," Avista CEO Heather Rosentrater said in a news release. "We've invested in infrastructure, technology, and operational practices that help us respond to changing conditions and protect the communities we serve. Our focus on safety is foundational to all we do." Since launching what it calls its Wildfire Resiliency Plan in 2020, Avista has replaced wooden transmission poles with steel, and crews have installed fire-retardant mesh at pole bases and upgraded wooden crossarms to fiberglass. In other areas, crews will be converting overhead power lines to underground wires to further reduce the risk to damage from fire and to limit outages caused by tree limbs falling into the lines, according to the release. Following the Gray and Oregon Road fires, Avista for the first time announced that it could implement a Public Safety Power Shutoff, which is a targeted-manual power outage if an area of the infrastructure is under severe risk of fire. For that possibility, the utility continually needs updated information from some customers. It asks customers to make sure Avista has correct contact information so they can reach out to them during emergencies. It also wants to know whether anyone in the home has medical devices that rely on electricity. That information will be added to a list of customers who would receive extra notifications in case of an extended outage. All other customers are urged to keep emergency supplies together in one place, such as flashlights, portable charges and a few days' food for residents and their pets.
Yahoo
16-05-2025
- Business
- Yahoo
Spokane County grants easement allowing Avista to remove overhead powerlines to lower wildfire risk
May 15—Mica Peak is about to shed the power lines hanging off its back, which should be welcome news to the homeowners near the recreation area. The Spokane County Commission voted 5-0 to grant a 10-foot-wide easement to Avista Utilities Tuesday that will allow the power company to bury their existing 1.5 mile powerline network that runs through public land on the mountain's northern face. Avista will cover the cost of the transition, according to the company's web page detailing the work. Burying the lines will lessen the risk of wildfires and power outages in the densely wooded area, and will require less maintenance, Avista spokesman David Vowels said. A number of wildfires have been linked to power equipment nationwide in recent years, including the 2020 Babb Road Fire, which sparked when a tree branch fell on an Avista powerline during a windstorm. The work on Mica Peak is part of the company's broader "strategic undergrounding" project. Avista also will transition overhead lines to underground ones in the Moran Prairie neighborhood on the South Hill and in the unincorporated community of Dartford by the end of the summer, according to the project website. In 2017, Spokane County acquired the roughly 900 acre property the power lines currently hang above for $2.3 million, a purchase that connected the Mica Peak Conservation Area to Liberty Lake Regional Park for a combined 5,300 acres of public lands. The agreement approved Tuesday replaces a 60-foot-wide one granted to the utility in 1997 by the land's former owner, Inland Empire Paper Co. It will result in a return of 50 feet of public property along the line's path from the Federal Aviation Administration radar station at the mountain's peak, north to around East Henry Road. Inland Empire is owned by the Cowles Co., which also owns The Spokesman-Review. Work on the underground lines will begin in mid-July, and customers in the area will be notified of any outages as a result of the work, Vowels said. Avista has agreed to rehabilitate the former easement parameters back into natural habitat. Over the next three years, Avista will "provide erosion and sediment control, reseed with native seed mixes, control noxious weeds and monitor the disturbed areas," according to a copy of the revegetation plan included in county records.
Yahoo
13-05-2025
- Business
- Yahoo
Spokane County to consider Avista plan to bury power lines to reduce wildfire risks in 3 Spokane County urban wildlands
May 12—Fewer power lines soon will be breaking up the views from one of Spokane County's largest recreation areas, if Spokane County commissioners grant an easement to the region's largest power utility. The governing board of Spokane County will vote Tuesday afternoon on granting a 10-foot-wide easement to Avista Utilities along the northern face of Mica Mountain, which would allow the company to convert its existing overhead lines in the area underground. Work would begin in mid-July, according to Avista spokesman David Vowels. Vowels said the project is part of Avista's larger efforts to reduce the risk of wildfires in urban wildland areas. The utility plans to convert similar overhead networks into underground systems in the unincorporated community of Dartford in northern Spokane County, as well as in the Moran Prairie neighborhood, atop Spokane's South Hill. "To better serve our customers and communities and reduce wildfire risk, Avista has begun to strategically move sections of overhead power lines underground," the project's web page reads. "We're focusing our efforts in areas that have the highest wildfire ignition risk." All areas are scheduled to be finished by the end of the summer, and Vowels said customers would be notified of any expected outages as a result of the work. Power equipment has been linked to several devastating wildfires in recent years, including in Eastern Washington. The 2020 blaze that destroyed the towns of Malden and Pine City is believed to have started when a tree branch fell on an Avista powerline during a windstorm, and the Gray fire, which burned 10,000 acres, 240 homes and displaced thousands of people in and around Medical Lake two years ago, was sparked by a defunct security light on an Inland Power and Light utility pole, according to state fire investigators. The underground lines would require less maintenance and reduce the risk of wildfire in the region because of their location: Avista won't need to trim trees to avoid downed lines, and those lines won't be around to be knocked down into ignitable foliage. Avista plans to follow the same path, with a few deviations to bring the lines closer to nearby roads, as their existing overhead lines in the area. The majority run above 900 acres of forestland acquired by Spokane County in 2017 for $2.3 million, a purchase that connected the Mica Peak Conservation Area to Liberty Lake Regional Park for a combined 5,300 acres of public lands. The existing lines, and soon the underground replacements, follow a 1 1/2 -mile track from the Federal Aviation Administration radar station at the mountain's peak, north to around East Henry Road, an elevation change of around 2,200 feet. The 10-foot easement would replace a 1997, 60-foot-wide easement granted to Avista by the land's former owner, the Inland Empire Paper Company. Jonathan Smith, parks real estate manager and acquisition specialist for Spokane County, listed the return of public land as just one of the benefits of approving the new easement in a presentation to the commissioners last month. Inland Empire is owned by the Cowles Co., which also owns The Spokesman-Review. "We're bringing overhead power lines underground, so there's an aesthetic benefit," Smith said. "And, also, the main reason why Avista has requested this, is to reduce the potential wildfire risk." After the underground lines are installed, Avista will remove their old utility poles and oversee a revegetation of the former 60-foot span. The company has agreed to "provide erosion and sediment control, reseed with native seed mixes, control noxious weeds and monitor the disturbed areas," according to a copy of the revegetation plan included in Smith's presentation. Smith said noxious weed mitigation, important in a remote, less traveled area, and reseeding will be the main focus of the restoration. While a few trees may be removed during the project, Avista's plan calls for allowing natural opportunities for tree growth rather than replanting. The company will monitor the site through quarterly visits for the first two years following the project's completion, and then follow up with annual visits. Spokane County Commission Chair Mary Kuney, who represents the district that encompasses Mica Peak, seemed to lend her support to the effort following Smith's presentation. "Seems like it's pretty straightforward, and a good thing," Kuney said. "Especially if they're going to go underground."
Yahoo
07-05-2025
- Business
- Yahoo
Avista Corp. Reports Financial Results for the First Quarter of 2025, Confirms 2025 Earnings Guidance
As of Mar. 31, 2025, we had $221 million of available liquidity under the Avista Corp. committed line of credit and $40 million of available liquidity under our letter of credit facility. AEL&P had $12 million available under their line of credit as of Mar. 31, 2025. Losses at our other businesses increased due to higher net investment losses resulting from changes in fair value within our portfolio of investments and the recognition of our portion of losses in our equity method investments. Our effective tax rate in the first quarter of 2025 was 13.2 percent compared to 3.1 percent in the prior year. The change is primarily due to a decrease in tax customer credits as the majority of the tax customer credits have been returned to customers. Other operating expenses increased due to increased employee salaries and benefit costs, as well as thermal generation costs. There were also increases in amortizations and base levels of wildfire mitigation and insurance costs, with corresponding increases to revenue which result in no impact to earnings. Electric utility margin increased due to the effects of our general rate cases and customer growth. We had a $7 million pre-tax expense under the Energy Recovery Mechanism (ERM) in 2025, compared to a $6 million pre-tax expense in 2024. The table below presents the change in net income and diluted earnings per share for the first quarter of 2025, as compared to the first quarter of 2024, as well as the various factors, shown on an after-tax basis, that caused such change (dollars in millions, except per-share data): 'Settlement of our Oregon general rate case is positive progress, and later this month, we'll have the first settlement discussions in our Idaho general rate cases. If approved, new rates for both states are expected to go into effect in September of this year,' Rosentrater added. 'Strong results at Avista Utilities reflect solid execution of our business plan in the first quarter,' said Avista President and CEO Heather Rosentrater. 'Wildfire risk mitigation activities also advanced significantly in April, as bills passed in both Washington and Idaho providing for approval of wildfire mitigation plans, and, in Washington, providing the opportunity to securitize costs associated with disasters such as wildfire. These bills represent an important step forward in addressing risks associated with wildfire and demonstrate the legislature's recognition of wildfire as a critical issue.' SPOKANE, Wash., May 07, 2025 (GLOBE NEWSWIRE) -- Avista Corp. ( NYSE: AVA ) today announced financial results for the first quarter of 2025. Net income and earnings per diluted share for the first quarter of 2025 compared to the first quarter of 2024 are presented in the table below (dollars in millions, except per-share data): Story Continues In 2025, we expect to issue $120 million of long-term debt and up to $80 million of common stock, including $16 million issued in the first quarter. Capital Expenditures and Other Investments In the first quarter of 2025, Avista Utilities' capital expenditures were $100 million and AEL&P's capital expenditures were $3 million. For Avista Utilities, we expect capital expenditures to be about $525 million in 2025. For the five-year period ending in 2029, we expect total capital expenditures at Avista Utilities of nearly $3 billion, resulting in an annual growth rate of 5 to 6 percent. These estimates do not include potential expenditures for additional generation from our all source Request for Proposal, transmission projects or new large load customers. Capital expenditures at AEL&P are expected to be $15 million in 2025. In addition, we expect to invest $10 million in 2025 at our other businesses related to non-regulated investment opportunities and economic development projects in our service territory. We continue to monitor the dynamic situation with respect to tariffs and other related supply chain disruption, and continue to implement risk-mitigating activities. While we do not anticipate significant impacts in 2025, these activities, tariffs and corresponding disruptions in the supply chain could increase costs in future periods. 2025 Earnings Guidance and Outlook Avista Corp. is confirming its 2025 consolidated earnings guidance with a range of $2.52 to $2.72 per diluted share. We expect Avista Utilities to contribute within a range of $2.43 to $2.61 per diluted share in 2025. The midpoint of our guidance for Avista Utilities includes an expected $0.12 negative impact from the ERM, within the 90 percent customer/10 percent Company sharing band ($0.07 have already been absorbed in our first quarter results). We expect AEL&P to contribute in the range of $0.09 to $0.11 per diluted share in 2025. We expect our other business to contribute zero earnings in 2025. Over the long term, we expect earnings growth in the 4-6 percent range from our forecast 2025 base year. Our guidance does not include the effect of unusual or non-recurring items until the effects are probable. Various factors, which include, among other things, the impact of tariffs, could cause actual results to differ materially from our expectations. Please refer to our 10-K for 2024, our 10-Q for the first quarter of 2025, and the cautionary statements below, for a full discussion of these factors. Non-GAAP Financial Measures The tables below include electric and natural gas utility margin, two financial measures that are considered 'non-GAAP financial measures.' The most directly comparable measure calculated and presented in accordance with GAAP is utility operating revenues. The presentation of electric and natural gas utility margin is intended to enhance the understanding of operating performance, as it provides useful information to investors in their analysis of how changes in loads (due to weather, economic or other conditions), rates, supply costs and other factors impact our results of operations. These measures are not intended to replace utility operating revenues as determined in accordance with GAAP as an indicator of operating performance. The following table reconciles Avista Utilities' operating revenues to utility margin (after-tax) for the three months ended Mar. 31 (dollars in millions): Electric Natural Gas Intracompany Total 2025 2024 2025 2024 2025 2024 2025 2024 Operating revenues $ 363 $ 367 $ 244 $ 234 $ (4 ) $ (6 ) $ 603 $ 595 Resource costs 126 166 134 132 (4 ) (6 ) 256 292 Income taxes (a) 50 42 22 21 — — 72 63 Utility margin, net of tax $ 187 $ 159 $ 88 $ 81 $ — $ — $ 275 $ 240 (a) Income taxes for 2025 and 2024 were calculated using Avista Corp.'s federal statutory tax rate of 21 percent. NOTE: We will host a conference call with financial analysts and investors on May 7, 2025, at 12:30 p.m. ET to discuss this news release. This call can be accessed on Avista's website at You must register for the call via the link at Avista's website ( to access the call-in details for the webcast. A replay of the webcast will be available for one year on the Avista Corp. web site at Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to approximately 423,000 customers and natural gas to 384,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol 'AVA'. For more information about Avista, please visit . Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. This news release contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, financing plans, our current plans or objectives for future operations and other factors, which may affect the company in the future. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond our control and many of which could have significant impact on our operations, results of operations, financial condition or cash flows and could cause actual results to differ materially from those anticipated in such statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: Utility Regulatory Risk state and federal regulatory decisions or related judicial decisions that affect our ability to recover costs and earn a reasonable return including, but not limited to, disallowance or delay in the recovery of capital investments, operating costs, commodity costs, the ordering of refunds to customers and discretion over allowed return on investment; the loss of regulatory accounting treatment, which could require the write-off of regulatory assets and the loss of regulatory deferral and recovery mechanisms; Operational Risk weather conditions, which affect both energy demand and electric generating capability, including the impact of precipitation and temperature on hydroelectric resources, the impact of wind patterns on wind-generated power, weather-sensitive customer demand, and similar impacts on supply and demand in the wholesale energy markets; wildfires ignited, or allegedly ignited, by our equipment or facilities could cause significant loss of life and property or result in liability for resulting fire suppression costs and/or damages, thereby causing serious operational, reputational and financial harm; severe weather or natural disasters, including, but not limited to, avalanches, wind storms, wildfires, earthquakes, floods, extreme temperature events, snow and ice storms that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; political unrest and/or conflicts between foreign nation-states, which could disrupt the global, national and local economy, result in increases in operating and capital costs, impact energy commodity prices or our ability to access energy resources, create disruption in supply chains, disrupt, weaken or create volatility in capital markets, and increase cyber and physical security risks. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; explosions, fires, accidents, mechanical breakdowns or other incidents that could impair assets and may disrupt operations of our generation facilities, transmission, and electric and natural gas distribution systems or other operations and may require us to purchase replacement power or incur costs to repair our facilities; interruptions in the delivery of natural gas by our suppliers, including physical problems with pipelines themselves, can disrupt our service of natural gas to our customers and/or impair our ability to operate gas-fired electric generating facilities; explosions, fires, accidents or other incidents arising from or allegedly arising from our operations that could cause injuries to the public or property damage; blackouts or disruptions of interconnected transmission systems (the regional power grid); terrorist attacks, cyberattacks or other malicious acts that could disrupt or cause damage to our utility assets or to the national or regional economy in general, including effects of terrorism, cyberattacks, ransomware, or vandalism that damage or disrupt information technology systems; pandemics, which could disrupt our business, as well as the global, national and local economy, resulting in a decline in customer demand, deterioration in the creditworthiness of our customers, increases in operating and capital costs, workforce shortages, losses or disruptions in our workforce due to vaccine mandates, delays in capital projects, disruption in supply chains, and disruption, weakness and volatility in capital markets. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; work-force issues, including changes in collective bargaining unit agreements, strikes, work stoppages, the loss of key executives, availability of workers in a variety of skill areas, and our ability to recruit and retain employees; changes in the availability and price of purchased power, fuel and natural gas, as well as transmission capacity; increasing costs of insurance, more restrictive coverage terms and our ability to obtain insurance; delays or changes in construction costs, and/or our ability to obtain required permits and materials for present or prospective facilities; increasing health care costs and cost of health insurance provided to our employees and retirees; increasing operating costs, including effects of inflationary pressures; third party construction of buildings, billboard signs, towers or other structures within our rights of way, or placement of fuel containers within close proximity to our transformers or other equipment, including overbuilding atop natural gas distribution lines; the loss of key suppliers for materials or services or other disruptions to the supply chain; adverse impacts to our Alaska electric utility (AEL&P) that could result from an extended outage of its hydroelectric generating resources or their inability to deliver energy, due to their lack of interconnectivity to other electrical grids and the availability or cost of replacement power (diesel); changing river or reservoir regulation or operations at hydroelectric facilities not owned by us, which could impact our hydroelectric facilities downstream; Climate Change Risk increasing frequency and intensity of severe weather or natural disasters resulting from climate change that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; change in the use, availability or abundancy of water resources and/or rights needed for operation of our hydroelectric facilities, including impacts resulting from climate change; changes in the long-term climate and weather could materially affect, among other things, customer demand, the volume and timing of streamflows required for hydroelectric generation, costs of generation, transmission and distribution. Increased or new risks may arise from severe weather or natural disasters, including wildfires as well as their increased occurrence and intensity related to changes in climate; Cybersecurity Risk cyberattacks on the operating systems used in the operation of our electric generation, transmission and distribution facilities and our natural gas distribution facilities, and cyberattacks on such systems of other energy companies with which we are interconnected, which could damage or destroy facilities or systems or disrupt operations for extended periods of time and result in the incurrence of liabilities and costs; cyberattacks on the administrative systems used in the administration of our business, including customer billing and customer service, accounting, communications, compliance and other administrative functions, and cyberattacks on such systems of our vendors and other companies with which we do business, resulting in the disruption of business operations, the release of private information and the incurrence of liabilities and costs; Technology Risk changes in technologies, possibly making some of the current technology we utilize obsolete or introducing new cyber security risks and other new risks inherent in the use, by either us or our counterparties, of new technologies in the developmental stage including, without limitation, generative artificial intelligence; changes in the use, perception, or regulation of generative artificial intelligence technologies, which could limit our ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to our business, reputation or financial results; changes in costs that impede our ability to implement new information technology systems or to operate and maintain current production technology; insufficient technology skills, which could lead to the inability to develop, modify or maintain our information systems; Strategic Risk growth or decline of our customer base due to new uses for our services or decline in existing services, including, but not limited to, the effect of the trend toward distributed generation at customer sites; the potential effects of negative publicity regarding our business practices, whether true or not, which could hurt our reputation and result in litigation or a decline in our common stock price; changes in our strategic business plans, which could be affected by any or all of the foregoing, including the entry into new businesses and/or the exit from existing businesses and the extent of our business development efforts where potential future business is uncertain; wholesale and retail competition including alternative energy sources, growth in customer-owned power resource technologies that displace utility-supplied energy or may be sold back to the utility, and alternative energy suppliers and delivery arrangements; non-regulated activities may increase earnings volatility and result in investment losses; the risk of municipalization or other forms of service territory reduction; External Mandates Risk changes in environmental laws, regulations, decisions and policies, including, but not limited to, regulatory responses to concerns regarding climate change, efforts to restore anadromous fish in areas currently blocked by dams, more stringent requirements related to air quality, water quality and waste management, present and potential environmental remediation costs and our compliance with these matters; the potential effects of initiatives, legislation or administrative rulemaking at the federal, state or local levels, including possible effects on our generating resources, prohibitions or restrictions on new or existing services, or restrictions on greenhouse gas emissions to mitigate concerns over climate changes, including future limitations on the usage and distribution of natural gas; political pressures or regulatory practices that could constrain or place additional cost burdens on our distribution systems through accelerated adoption of distributed generation or electric-powered transportation or on our energy supply sources, such as campaigns to halt fossil fuel-fired power generation and opposition to other thermal generation, wind turbines or hydroelectric facilities; failure to identify changes in legislation, taxation and regulatory issues that could be detrimental or beneficial to our overall business; policy and/or legislative changes in various regulated areas, including, but not limited to, environmental regulation, healthcare regulations and import/export regulations; increasing costs due to potential tariffs applied to energy commodities and/or equipment and materials. Financial Risk our ability to obtain financing through the issuance of debt and/or equity securities and access to our funds held with financial institutions, which could be affected by various factors including our credit ratings, interest rates, other capital market conditions and global economic conditions; changes in interest rates that affect borrowing costs, variable interest rate borrowing and the extent to which we recover interest costs through retail rates collected from customers; volatility in energy commodity markets that affect our ability to effectively hedge energy commodity risks, including cash flow impacts and requirements for collateral; volatility in the carbon emissions allowances market that could result in increased compliance costs; changes in actuarial assumptions, interest rates and the actual return on plan assets for our pension and other postretirement benefit plans, which could affect future funding obligations, pension and other postretirement benefit expense and the related liabilities; the outcome of legal proceedings and other contingencies; economic conditions in our service areas, including the economy's effects on customer demand for utility services; economic conditions nationally may affect the valuation of our unregulated portfolio companies; declining electricity demand related to customer energy efficiency, conservation measures and/or increased distributed generation and declining natural gas demand related to customer energy efficiency, conservation measures and/or increased electrification; industry and geographic concentrations which could increase our exposure to credit risks due to counterparties, suppliers and customers being similarly affected by changing conditions; deterioration in the creditworthiness of our customers; activist shareholders may result in additional costs and resources required in response to activist actions; Energy Commodity Risk volatility and illiquidity in wholesale energy markets, including exchanges, the availability of willing buyers and sellers, changes in wholesale energy prices that could affect operating income, cash requirements to purchase electricity and natural gas, value received for wholesale sales, collateral required of us by individual counterparties and/or exchanges in wholesale energy transactions and credit risk from such transactions, and the market value of derivative assets and liabilities; default or nonperformance on the part of parties from whom we purchase and/or sell capacity or energy; potential environmental regulations or lawsuits affecting our ability to utilize or resulting in the obsolescence of our power supply resources; explosions, fires, accidents, pipeline ruptures or other incidents that could limit energy supply to our facilities or our surrounding territory, which could result in a shortage of commodities in the market that could increase the cost of replacement commodities from other sources; Compliance Risk changes in laws, regulations, decisions and policies at the federal, state or local levels, which could materially impact both our electric and gas operations and costs of operations; and the ability to comply with the terms of the licenses and permits for our hydroelectric or thermal generating facilities at cost-effective levels. For a further discussion of these factors and other important factors, please refer to our Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2025. The forward-looking statements contained in this news release speak only as of the date hereof. We undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New risks, uncertainties and other factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on our business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. To unsubscribe from Avista's news release distribution, send reply message to . Issued by: Avista Corporation Contact: Media: Lena Funston (509) 495-8090 Investors: Stacey Walters (509) 495-2046 Avista 24/7 Media Access (509) 495-4174
Associated Press
26-02-2025
- Business
- Associated Press
Avista Corp. Reports 2024 Results and Initiates 2025 Earnings Guidance
Consolidated earnings per diluted share of $2.29 for the full year of 2024 Initiated consolidated guidance of $2.52 to $2.72 per share for 2025 SPOKANE, Wash., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Avista Corp. (NYSE: AVA) today announced financial results for 2024. Net income and earnings per diluted share for the fourth quarter and the year ended Dec. 31, 2024 compared to the same periods in 2023 are presented in the table below (dollars in millions, except per-share data): Fourth Quarter Year-to-Date 2024 2023 2024 2023 Net Income (Loss) by: Reportable Segments Avista Utilities $ 68 $ 83 $ 179 $ 167 AEL&P 3 3 8 9 Other non-reportable segment loss (4) (2) (7) (5) Total net income $ 67 $ 84 $ 180 $ 171 Earnings (Loss) per Diluted Share by: Reportable Segments Avista Utilities $ 0.85 $ 1.07 $ 2.28 $ 2.18 AEL&P 0.04 0.04 0.10 0.12 Other non-reportable segment loss (0.05) (0.03) (0.09) (0.06) Total earnings per diluted share $ 0.84 $ 1.08 $ 2.29 $ 2.24 'I'm proud of our performance in 2024. Our utility operations led continued improvement in our consolidated earnings, even with the headwinds we experienced from higher power supply and operating costs during the year,' said Avista President and CEO Heather Rosentrater. 'We laid a strong foundation in 2024, with record levels of capital investment to better serve our customers. I'm also excited about the opportunities 2025 will bring, including seeking out transmission projects and additional large load customers that align with our strategic priorities.' 'We made significant progress with our regulatory strategy in 2024, with constructive outcomes in our Washington general rate cases. With the expectation of continued regulatory execution in Oregon and Idaho, we are initiating our consolidated earnings guidance for 2025 with a range of $2.52 to $2.72 per diluted share,' Rosentrater added. Analysis of 2024 Consolidated Earnings The table below presents the change in net income and diluted earnings per share for the fourth quarter and year ended Dec. 31, 2024, as compared to the respective periods in 2023, as well as the various factors, shown on an after-tax basis, that caused such change (dollars in millions, except per-share data): Fourth Quarter Year-to-Date Net Income (a) Earnings per Share Net Income (a) Earnings per Share 2023 consolidated earnings $ 84 $ 1.08 $ 171 $ 2.24 Changes in net income and diluted earnings per share: Avista Utilities Electric utility margin (including intracompany) (b) 9 0.10 56 0.72 Natural gas utility margin (including intracompany) (c) 3 0.04 13 0.17 Other operating expenses (d) (8) (0.10) (21) (0.27) Depreciation and amortization (e) (2) (0.03) (6) (0.08) Interest expense (f) (1) (0.02) (5) (0.06) Other 2 0.03 2 0.02 Income tax at effective rate (g) (18) (0.22) (27) (0.34) Dilution on earnings n/a (0.02) n/a (0.06) Total Avista Utilities (15) (0.22) 12 0.10 AEL&P — — (1) (0.02) Other businesses (h) (2) (0.02) (2) (0.03) 2024 consolidated earnings $ 67 $ 0.84 $ 180 $ 2.29 (a) The tax impact of each line item was calculated using Avista Corp.'s federal statutory tax rate of 21 percent. (b) Electric utility margin increased due to the effects of our general rate cases and customer growth. We had an $8 million pre-tax expense under the Energy Recovery Mechanism (ERM) in both 2024 and 2023. The expense under the ERM in 2024 was primarily due to below normal hydroelectric generation and the impact of purchased power costs. (c) Natural gas utility margin increased and was impacted primarily by the effects of our general rate cases and customer growth. (d) Other operating expenses increased year-to-date primarily due to increased thermal generation costs, legal costs and employee benefit costs (primarily medical expenses). In addition, amortizations and base levels of wildfire mitigation costs and insurance costs have increased, with corresponding increases to revenue which result in no impact to earnings. (e) Depreciation and amortization increased primarily due to additions to utility plant. (f) Interest expense increased primarily due to increased borrowings outstanding and increased interest rates compared to 2023. (g) Our effective tax rate in 2024 was positive 1.5 percent compared to negative 24.4 percent in the prior year. The change is primarily a due to a decrease in tax customer credits, which were approximately half of the amounts recognized in 2023. There is a corresponding change in retail revenues related to tax customer credits such that the decrease results in a minimal impact on net income. We expect tax customer credits, and the resulting impact to our effective tax rate, to continue to decrease in 2025 as the majority of the tax customer credits have been returned to customers. (h) Losses at our other businesses increased due to higher net investment losses resulting from changes in fair value within our portfolio of investments, losses from early-stage joint ventures investments, and borrowing costs. Liquidity and Capital Resources Liquidity In 2024, we closed on the remarketing of $84 million of long term debt and issued $68 million of common stock. As of Dec. 31, 2024, we had $153 million of available liquidity under the Avista Corp. committed line of credit, and $38 million of available liquidity under our letter of credit facility. AEL&P had $13 million available under their line of credit as of Dec. 31, 2024. In 2025, we expect to issue $120 million of long-term debt and up to $80 million of common stock. Capital Expenditures and Other Investments In 2024, Avista Utilities' capital expenditures were $510 million and AEL&P's capital expenditures were $23 million. For Avista Utilities, we expect capital expenditures to be about $525 million in 2025. For the five-year period ending in 2029, we expect total capital expenditures at Avista Utilities of nearly $3 billion, resulting in an annual growth rate of 5 to 6 percent. These estimates do not include expenditures for additional generation, transmission projects or new large load customers. Capital expenditures at AEL&P are expected to be $12 million in 2025. In addition, we expect to invest $9 million in 2025 at our other businesses related to non-regulated investment opportunities and economic development projects in our service territory. 2025 Earnings Guidance and Outlook Avista Corp. is initiating its 2025 earnings guidance with a consolidated range of $2.52 to $2.72 per diluted share. We expect Avista Utilities to contribute within a range of $2.43 to $2.61 per diluted share in 2025. The midpoint of our guidance for Avista Utilities includes an expected $0.12 negative impact from the ERM, within the 90 percent customer/10 percent Company sharing band. We expect AEL&P to contribute in the range of $0.09 to $0.11 per diluted share in 2025. We expect our other business to contribute zero earnings in 2025. Over the long term, we expect earnings growth in the 4-6 percent range from our forecast 2025 base year. Our guidance does not include the effect of unusual or non-recurring items until the effects are probable. Various factors could cause actual results to differ materially from our expectations, including our earnings guidance. Please refer to our 10-K for 2024 and the cautionary statements below for a full discussion of these factors. Non-GAAP Financial Measures The tables below include electric and natural gas utility margin, two financial measures that are considered 'non-GAAP financial measures.' The most directly comparable measure calculated and presented in accordance with GAAP is utility operating revenues. The presentation of electric and natural gas utility margin is intended to enhance the understanding of operating performance, as it provides useful information to investors in their analysis of how changes in loads (due to weather, economic or other conditions), rates, supply costs and other factors impact our results of operations. These measures are not intended to replace utility operating revenues as determined in accordance with GAAP as an indicator of operating performance. The following table reconciles Avista Utilities' operating revenues to utility margin (after-tax) for the three and twelve months ended Dec. 31 (dollars in millions): Electric Natural Gas Intracompany Total 2024 2023 2024 2023 2024 2023 2024 2023 For the year ended Dec. 31 Operating revenues $ 1,301 $ 1,172 $ 606 $ 571 $ (20) $ (40) $ 1,887 $ 1,703 Resource costs 482 424 332 314 (20) (40) 794 698 Income taxes (a) 172 157 58 54 — — 230 211 Utility margin, net of tax $ 647 $ 591 $ 216 $ 203 $ — $ — $ 863 $ 794 For the three months ended Dec. 31 Operating revenues $ 328 $ 323 $ 194 $ 192 $ (5) $ (11) $ 517 $ 504 Resource costs 117 123 106 108 (5) (11) 218 220 Income taxes (a) 44 42 19 18 — — 63 60 Utility margin, net of tax $ 167 $ 158 $ 69 $ 66 $ — $ — $ 236 $ 224 (a) Income taxes for 2024 and 2023 were calculated using Avista Corp.'s federal statutory tax rate of 21 percent. NOTE: We will host a conference call with financial analysts and investors on Feb. 26, 2025, at 10:30 a.m. ET to discuss this news release. This call can be accessed on Avista's website at You must register for the call via the link at Avista's website ( to access the call-in details for the webcast. A replay of the webcast will be available for one year on the Avista Corp. web site at Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to approximately 422,000 customers and natural gas to 383,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol 'AVA'. For more information about Avista, please visit Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. This news release contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, financing plans, our current plans or objectives for future operations and other factors, which may affect the company in the future. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond our control and many of which could have significant impact on our operations, results of operations, financial condition or cash flows and could cause actual results to differ materially from those anticipated in such statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: Utility Regulatory Risk state and federal regulatory decisions or related judicial decisions that affect our ability to recover costs and earn a reasonable return including, but not limited to, disallowance or delay in the recovery of capital investments, operating costs, commodity costs, the ordering of refunds to customers and discretion over allowed return on investment; the loss of regulatory accounting treatment, which could require the write-off of regulatory assets and the loss of regulatory deferral and recovery mechanisms; Operational Risk weather conditions, which affect both energy demand and electric generating capability, including the impact of precipitation and temperature on hydroelectric resources, the impact of wind patterns on wind-generated power, weather-sensitive customer demand, and similar impacts on supply and demand in the wholesale energy markets; wildfires ignited, or allegedly ignited, by our equipment or facilities could cause significant loss of life and property or result in liability for resulting fire suppression costs and/or damages, thereby causing serious operational, reputational and financial harm; severe weather or natural disasters, including, but not limited to, avalanches, wind storms, wildfires, earthquakes, floods, extreme temperature events, snow and ice storms that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; political unrest and/or conflicts between foreign nation-states, which could disrupt the global, national and local economy, result in increases in operating and capital costs, impact energy commodity prices or our ability to access energy resources, create disruption in supply chains, disrupt, weaken or create volatility in capital markets, and increase cyber and physical security risks. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; explosions, fires, accidents, mechanical breakdowns or other incidents that could impair assets and may disrupt operations of our generation facilities, transmission, and electric and natural gas distribution systems or other operations and may require us to purchase replacement power or incur costs to repair our facilities; interruptions in the delivery of natural gas by our suppliers, including physical problems with pipelines themselves, can disrupt our service of natural gas to our customers and/or impair our ability to operate gas-fired electric generating facilities; explosions, fires, accidents or other incidents arising from or allegedly arising from our operations that could cause injuries to the public or property damage; blackouts or disruptions of interconnected transmission systems (the regional power grid); terrorist attacks, cyberattacks or other malicious acts that could disrupt or cause damage to our utility assets or to the national or regional economy in general, including effects of terrorism, cyberattacks, ransomware, or vandalism that damage or disrupt information technology systems; pandemics, which could disrupt our business, as well as the global, national and local economy, resulting in a decline in customer demand, deterioration in the creditworthiness of our customers, increases in operating and capital costs, workforce shortages, losses or disruptions in our workforce due to vaccine mandates, delays in capital projects, disruption in supply chains, and disruption, weakness and volatility in capital markets. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications; work-force issues, including changes in collective bargaining unit agreements, strikes, work stoppages, the loss of key executives, availability of workers in a variety of skill areas, and our ability to recruit and retain employees; changes in the availability and price of purchased power, fuel and natural gas, as well as transmission capacity; increasing costs of insurance, more restrictive coverage terms and our ability to obtain insurance; delays or changes in construction costs, and/or our ability to obtain required permits and materials for present or prospective facilities; increasing health care costs and cost of health insurance provided to our employees and retirees; increasing operating costs, including effects of inflationary pressures; third party construction of buildings, billboard signs, towers or other structures within our rights of way, or placement of fuel containers within close proximity to our transformers or other equipment, including overbuilding atop natural gas distribution lines; the loss of key suppliers for materials or services or other disruptions to the supply chain; adverse impacts to our Alaska electric utility (AEL&P) that could result from an extended outage of its hydroelectric generating resources or their inability to deliver energy, due to their lack of interconnectivity to other electrical grids and the availability or cost of replacement power (diesel); changing river or reservoir regulation or operations at hydroelectric facilities not owned by us, which could impact our hydroelectric facilities downstream; Climate Change Risk increasing frequency and intensity of severe weather or natural disasters resulting from climate change that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services; change in the use, availability or abundancy of water resources and/or rights needed for operation of our hydroelectric facilities, including impacts resulting from climate change; changes in the long-term climate and weather could materially affect, among other things, customer demand, the volume and timing of streamflows required for hydroelectric generation, costs of generation, transmission and distribution. Increased or new risks may arise from severe weather or natural disasters, including wildfires as well as their increased occurrence and intensity related to changes in climate; Cybersecurity Risk cyberattacks on the operating systems used in the operation of our electric generation, transmission and distribution facilities and our natural gas distribution facilities, and cyberattacks on such systems of other energy companies with which we are interconnected, which could damage or destroy facilities or systems or disrupt operations for extended periods of time and result in the incurrence of liabilities and costs; cyberattacks on the administrative systems used in the administration of our business, including customer billing and customer service, accounting, communications, compliance and other administrative functions, and cyberattacks on such systems of our vendors and other companies with which we do business, resulting in the disruption of business operations, the release of private information and the incurrence of liabilities and costs; Technology Risk changes in technologies, possibly making some of the current technology we utilize obsolete or introducing new cyber security risks and other new risks inherent in the use, by either us or our counterparties, of new technologies in the developmental stage including, without limitation, generative artificial intelligence; changes in the use, perception, or regulation of generative artificial intelligence technologies, which could limit our ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to our business, reputation or financial results; changes in costs that impede our ability to implement new information technology systems or to operate and maintain current production technology; insufficient technology skills, which could lead to the inability to develop, modify or maintain our information systems; Strategic Risk growth or decline of our customer base due to new uses for our services or decline in existing services, including, but not limited to, the effect of the trend toward distributed generation at customer sites; the potential effects of negative publicity regarding our business practices, whether true or not, which could hurt our reputation and result in litigation or a decline in our common stock price; changes in our strategic business plans, which could be affected by any or all of the foregoing, including the entry into new businesses and/or the exit from existing businesses and the extent of our business development efforts where potential future business is uncertain; wholesale and retail competition including alternative energy sources, growth in customer-owned power resource technologies that displace utility-supplied energy or may be sold back to the utility, and alternative energy suppliers and delivery arrangements; non-regulated activities may increase earnings volatility and result in investment losses; the risk of municipalization or other forms of service territory reduction; External Mandates Risk changes in environmental laws, regulations, decisions and policies, including, but not limited to, regulatory responses to concerns regarding climate change, efforts to restore anadromous fish in areas currently blocked by dams, more stringent requirements related to air quality, water quality and waste management, present and potential environmental remediation costs and our compliance with these matters; the potential effects of initiatives, legislation or administrative rulemaking at the federal, state or local levels, including possible effects on our generating resources, prohibitions or restrictions on new or existing services, or restrictions on greenhouse gas emissions to mitigate concerns over climate changes, including future limitations on the usage and distribution of natural gas; political pressures or regulatory practices that could constrain or place additional cost burdens on our distribution systems through accelerated adoption of distributed generation or electric-powered transportation or on our energy supply sources, such as campaigns to halt fossil fuel-fired power generation and opposition to other thermal generation, wind turbines or hydroelectric facilities; failure to identify changes in legislation, taxation and regulatory issues that could be detrimental or beneficial to our overall business; policy and/or legislative changes in various regulated areas, including, but not limited to, environmental regulation, healthcare regulations and import/export regulations; increasing costs due to potential tariffs applied to energy commodities and/or equipment and materials. Financial Risk our ability to obtain financing through the issuance of debt and/or equity securities and access to our funds held with financial institutions, which could be affected by various factors including our credit ratings, interest rates, other capital market conditions and global economic conditions; changes in interest rates that affect borrowing costs, variable interest rate borrowing and the extent to which we recover interest costs through retail rates collected from customers; volatility in energy commodity markets that affect our ability to effectively hedge energy commodity risks, including cash flow impacts and requirements for collateral; volatility in the carbon emissions allowances market that could result in increased compliance costs; changes in actuarial assumptions, interest rates and the actual return on plan assets for our pension and other postretirement benefit plans, which could affect future funding obligations, pension and other postretirement benefit expense and the related liabilities; the outcome of legal proceedings and other contingencies; economic conditions in our service areas, including the economy's effects on customer demand for utility services; economic conditions nationally may affect the valuation of our unregulated portfolio companies; declining electricity demand related to customer energy efficiency, conservation measures and/or increased distributed generation and declining natural gas demand related to customer energy efficiency, conservation measures and/or increased electrification; industry and geographic concentrations which could increase our exposure to credit risks due to counterparties, suppliers and customers being similarly affected by changing conditions; deterioration in the creditworthiness of our customers; activist shareholders may result in additional costs and resources required in response to activist actions; Energy Commodity Risk volatility and illiquidity in wholesale energy markets, including exchanges, the availability of willing buyers and sellers, changes in wholesale energy prices that could affect operating income, cash requirements to purchase electricity and natural gas, value received for wholesale sales, collateral required of us by individual counterparties and/or exchanges in wholesale energy transactions and credit risk from such transactions, and the market value of derivative assets and liabilities; default or nonperformance on the part of parties from whom we purchase and/or sell capacity or energy; potential environmental regulations or lawsuits affecting our ability to utilize or resulting in the obsolescence of our power supply resources; explosions, fires, accidents, pipeline ruptures or other incidents that could limit energy supply to our facilities or our surrounding territory, which could result in a shortage of commodities in the market that could increase the cost of replacement commodities from other sources; Compliance Risk changes in laws, regulations, decisions and policies at the federal, state or local levels, which could materially impact both our electric and gas operations and costs of operations; and the ability to comply with the terms of the licenses and permits for our hydroelectric or thermal generating facilities at cost-effective levels. For a further discussion of these factors and other important factors, please refer to our Annual Report on Form 10-K for 2024. The forward-looking statements contained in this news release speak only as of the date hereof. We undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New risks, uncertainties and other factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on our business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
