SPOKANE, Wash., March 24, 2026 (GLOBE NEWSWIRE) -- Avista Utilities, an operating division of Avista Corp. (NYSE: AVA), announced today that the Washington Utilities and Transportation Commission has formally approved Avista’s 2025 Clean Energy Implementation Plan (CEIP). The plan builds on Avista’s long-standing clean energy foundation while outlining the path forward to meet Washington’s non-carbon emitting energy requirements. “We built a plan designed to meet the demands of a rapidly evolving energy sy ...

Core Viewpoint - Avista Corporation (NYSE: AVA) is recognized for its inclusion among the 14 Quality Stocks with the Highest Dividends, indicating a strong dividend profile despite challenges in earnings growth and regulatory risks [1]. Group 1: Company Overview - Avista Corporation is an energy company engaged in the production, transmission, and distribution of energy, with operations segmented into Avista Utilities and AEL&P. The Avista Utilities segment operates in regulated markets across Washington, Idaho, Oregon, and Montana [4]. Group 2: Financial Performance and Guidance - During the Q4 2025 earnings call, CEO Heather Rosentrater highlighted that the company faced a one-time adjustment related to Colstrip investments, which decreased earnings per share by $0.07. Despite this, the company met its original utility guidance range, and excluding these impacts, utility performance would have exceeded the midpoint of its 2025 earnings guidance [2]. Group 3: Regulatory and Strategic Initiatives - The company has filed a four-year rate plan with the Washington Utilities and Transportation Commission to address cost pressures associated with grid modernization, clean energy investments, and risks such as wildfires. This four-year plan aims to enhance stability in cost recovery and shareholder returns while reducing the frequency of regulatory proceedings [3]. Group 4: Analyst Coverage - Barclays initiated coverage of Avista Corporation with an Equal Weight rating and set a price target of $40. The firm noted the company's "below-average" earnings growth profile and highlighted risks related to a pending Washington rate case, wildfire exposure, and power cost volatility, which are reflected in the stock's discounted valuation [2][7].

Core Viewpoint - The comparison between Pinnacle West (PNW) and Avista Corporation (AVA) highlights PNW's potential for faster growth with greater risk, while AVA offers greater stability but slower growth [1]. Group 1 - Pinnacle West is positioned for potentially faster growth compared to Avista Corporation [1]. - Avista Corporation is characterized by greater stability but is expected to experience slower growth [1].

Core Viewpoint - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Group 1 - The service offers subscribers access to exclusive investment ideas earlier than they are released to the general public, with many ideas not being released at all [1] - Subscribers receive more in-depth research compared to what is available to the general public [1] - A two-week free trial is currently being offered for the service [1]

Core Insights - Wall Street is becoming more positive on the utility sector, with upgrades for PG&E and Algonquin Power, and a neutral initiation for Avista, reflecting varying views on risk, recovery, and valuation [2]. PG&E - PG&E Corp received an upgrade to Buy from Neutral by UBS, with a price target raised to $23 from $20, driven by improvements in California wildfire policy and affordability [3]. - UBS anticipates a significant narrowing of PG&E's 43% price-to-earnings discount as risk reduces, supported by a robust data center pipeline of 3.6 GW and a five-year capital plan of $73 billion [4]. - The stock is currently trading at $18.05, approximately 22% below UBS's target, with a year-to-date increase of 13.13% and a consensus analyst target of $22.20 [4]. Algonquin Power - Algonquin Power & Utilities was upgraded to Outperform from Market Perform by Raymond James, with a price target increased to $7.25 from $6.50, as the recent share pullback is viewed as excessive [5]. - The firm believes that cost discipline and positive outcomes in key rate cases will bolster Algonquin's core regulated utility business [5]. Avista - Avista was initiated with an Equal Weight rating and a price target of $40, compared to its current price of $38.92, indicating a cautious but stable outlook for the company [6].

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the potential of AI to unlock multi-trillion-dollar opportunities, reinforcing the optimistic outlook on AI's economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is seen as a catalyst for redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, suggesting that it could be a significant investment opportunity [4][6] - Prominent figures in technology and finance, including Bill Gates and Warren Buffett, recognize AI as a major technological advancement with the potential for substantial social benefits [8] Market Dynamics - The AI ecosystem is expected to reshape how businesses, governments, and consumers operate, indicating a broad and profound impact on various sectors [2] - The competitive landscape includes major players like Tesla, Nvidia, Alphabet, and Microsoft, but there is a belief that a smaller company may offer even greater investment potential [6][7]

ENERGY THAT TRANSFORMS INVESTOR PRESENTATION MARCH 2026 Disclaimer Except as expressly noted, the information in this presentation is current as of Feb. 25, 2026, and should not be relied upon as being current as of any subsequent date. Avista undertakes no duty to update this presentation, except as may be required by law. All forward-looking statements in this presentation are based on underlying assumptions (many of which are based, in turn, upon further assumptions). These statements are subject to a va ...

Core Insights - Avista reported higher full-year 2025 earnings and outlined a utility-focused strategy aimed at reducing volatility from non-regulated businesses while emphasizing new resource selections and an updated capital plan [7] Regulatory Developments - Avista filed a four-year rate plan with the Washington Utilities and Transportation Commission, with power supply costs being the primary driver for the requested rate increase [1] - The initial settlement conference is scheduled for May 22, with evidentiary hearings on September 17 and 18 [1] Financial Performance - For Q4, Avista posted consolidated earnings of $0.87 per diluted share, an increase from $0.84 in the previous year [5] - The company's 2025 consolidated earnings were $2.38 per diluted share, up from $2.29 in 2024, while non-GAAP utility earnings were $2.55 per diluted share, compared to $2.38 in 2024 [6] Capital Expenditures and Financing - Capital expenditures for Avista Utilities were $553 million in 2025, expected to rise to $585 million in 2026, with a total of $3.4 billion anticipated from 2026 to 2030 [12] - Avista issued $120 million of long-term debt and $78 million of common stock in 2025, with plans to issue approximately $230 million of long-term debt and up to $90 million of common stock in 2026 [14] Resource Development - Avista highlighted new projects selected from its resource request for proposals, including a 100 MW battery energy storage system and a 200 MW wind power purchase agreement [11] - A significant deposit was received from a data center developer, with an expected initial load of 125 MW ramping up to 500 MW by 2030 [8] Dividend and Long-term Guidance - The board increased the dividend to $1.97 per share, marking 24 consecutive years of dividend increases, with a target payout range adjusted to 60% to 70% [16] - The company expects earnings to grow 4% to 6% from the midpoint of 2025 consolidated earnings guidance, with a long-term expected return on equity at approximately 9% [17]

Financial Data and Key Metrics Changes - The company's consolidated earnings for 2025 were $2.38 per diluted share, an increase from $2.29 in 2024 [3] - Non-GAAP utility earnings for 2025 were $2.55 per diluted share, compared to $2.38 per diluted share in 2024 [4] - For Q4 2025, consolidated earnings were $0.87 per diluted share, up from $0.84 per diluted share in Q4 2024 [4] - Non-GAAP utility earnings for Q4 2025 were $0.88 per diluted share, slightly down from $0.89 per diluted share in Q4 2024 [4] Business Line Data and Key Metrics Changes - Avista Utilities' results were impacted by a one-time adjustment related to Colstrip investments, which decreased earnings per share by $0.07 [6] - Despite headwinds, utility results were within the original guidance range, and excluding specific factors, results would have exceeded the midpoint of the 2025 utilities earnings guidance [6] Market Data and Key Metrics Changes - The company filed a four-year rate plan with the Washington Utilities and Transportation Commission, addressing rising costs related to grid modernization and clean energy compliance [6][10] - A significant deposit was received from a data center developer for a potential load of 125 MW, expected to ramp up to 500 MW by 2030 [8] Company Strategy and Development Direction - The company aims to reduce the frequency of regulatory proceedings and provide greater stability in cost recovery and shareholder returns through the four-year rate plan [6] - Selected projects from the RFP process include upgrades to natural gas turbines, a battery energy storage system, and a power purchase agreement for wind energy [7] - The company is exploring early acquisition of resources to capitalize on tax credit opportunities and enhance flexibility until more load is needed [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the combination of growth opportunities and uncertainty in the operating environment [5] - The long-term earnings growth expectation is set at 4%-6% from the midpoint of 2025 consolidated earnings guidance [21] - The company is targeting a competitive payout range of 60%-70% for dividends, with a commitment to shareholder returns [11] Other Important Information - Capital expenditures for Avista Utilities were $553 million in 2025, expected to rise to $585 million in 2026, with a five-year projection of $3.4 billion [15][16] - The board raised the dividend to $1.97 per share, marking 24 consecutive years of dividend increases [11] Q&A Session Summary Question: Financing decisions for 2026 - Management indicated that financing decisions would be sequenced based on capital investment opportunities and would likely follow a periodic offering program unless significant investment opportunities arise [26][28] Question: Integration of new large load customer - Management confirmed that a significant deposit from a potential customer would lead to an MOU, ensuring existing customers are insulated from any negative impacts if the customer does not materialize [30][31] Question: Financing plan for potential $350 million CapEx - Management expects a 50/50 debt and equity structure for the potential additional capital, considering hybrids if necessary [38][40] Question: Monetizing non-regulated investments - Management expressed intent to monetize non-regulated investments if opportunities arise, which could reduce the need for equity issuance [42] Question: Long-term EPS growth correlation with rate base CAGR - Management confirmed that the expected 4%-6% EPS growth correlates with a 5% rate base CAGR, with potential for higher growth if additional investments materialize [43][44]

Financial Data and Key Metrics Changes - The company's consolidated earnings for 2025 were $2.38 per diluted share, an increase from $2.29 in 2024 [3] - Non-GAAP utility earnings for 2025 were $2.55 per diluted share, compared to $2.38 per diluted share in 2024 [4] - For Q4 2025, consolidated earnings were $0.87 per diluted share, up from $0.84 per diluted share in Q4 2024 [4] - Non-GAAP utility earnings for Q4 2025 were $0.88 per diluted share, slightly down from $0.89 per diluted share in Q4 2024 [4] Business Line Data and Key Metrics Changes - Avista Utilities' results were impacted by a one-time adjustment related to Colstrip investments, which decreased earnings per share by $0.07 [6] - Despite headwinds, utility results were within the original guidance range, and excluding specific factors, results would have exceeded the midpoint of the 2025 utilities earnings guidance [6] Market Data and Key Metrics Changes - The company filed a 4-year rate plan with the Washington Utilities and Transportation Commission, addressing rising costs related to grid modernization and clean energy compliance [6][10] - A significant deposit was received from a data center developer intending to locate in Washington, with an initial load expected to be 125 megawatts, ramping up to 500 megawatts by 2030 [8] Company Strategy and Development Direction - The company aims to reduce the frequency of regulatory proceedings and provide greater stability in cost recovery and shareholder returns through the 4-year rate plan [6] - Selected projects from the RFP process include upgrades to natural gas turbines, a 100 megawatt battery energy storage system, and a 200 megawatt wind power purchase agreement [7] - The company is exploring early acquisition of resources to capitalize on tax credit opportunities and enhance flexibility until more load is needed [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the combination of growth opportunities and uncertainty in the operating environment, emphasizing a focus on executing strategies [5] - The long-term earnings growth expectation is set at 4%-6% from the midpoint of 2025 consolidated earnings guidance, with a targeted return on equity of approximately 9% [21] Other Important Information - The board of directors raised the dividend to $1.97 per share, marking 24 consecutive years of dividend increases [11] - Capital expenditures for Avista Utilities were $553 million in 2025, expected to rise to $585 million in 2026, with a projected total of $3.4 billion from 2026 to 2030 [15][16] Q&A Session Summary Question: How are you sequencing financing decisions for 2026? - Management indicated that financing decisions would be reassessed based on additional capital investment opportunities, with a steady progress expected towards the $90 million equity issuance [26][28] Question: What is the internal threshold for committing to incremental CapEx for large load customers? - Management stated that a significant deposit from a potential customer would lead to an MOU, ensuring existing customers are insulated from any negative impacts if the large load does not materialize [30][31] Question: Should the potential $350 million CapEx be modeled as 50/50 debt and equity? - Management confirmed that a 50/50 funding approach would be expected for any additional capital beyond the base plan [38][40] Question: Will you consider monetizing non-regulated investments? - Management expressed intent to monetize non-regulated investments if opportunities arise, which could help reduce future equity issuance [42] Question: Is the upside CapEx included in the rate-based CAGR? - Management clarified that the upside CapEx is not included in the current CAGR projections, as it serves as a proxy for potential investment opportunities [56]