Financial Data and Key Metrics Changes - Consolidated earnings for Q4 2024 were $0.84 per diluted share, down from $1.08 in Q4 2023 [6] - Full year consolidated earnings were $2.29 per diluted share, slightly up from $2.24 in the previous year [6] Business Line Data and Key Metrics Changes - Utility earnings improved nearly 5% from 2023, despite higher costs [7] - Avista Utilities delivered earnings near the midpoint of the original guidance range for the segment [19] - AEL&P's results were on target, contributing positively to overall performance [20] Market Data and Key Metrics Changes - The Washington Commission increased the return on equity to 9.8% [8] - The company recognized a pre-tax expense of $8 million under the energy recovery mechanism due to poor hydro and power supply costs [20] Company Strategy and Development Direction - The company invested a record $510 million in Avista Utilities to enhance customer service [11] - The North Plains Connector project aims to improve regional reliability and resource adequacy [11] - The company plans to issue an all-source RFP for up to 375 megawatts of generation targeted for 2029 [12] - A focus on wildfire risk mitigation was highlighted, with legislative efforts underway [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory outcomes and the potential for growth in 2025 [10][34] - The company initiated earnings guidance for 2025 in the range of $2.52 to $2.72 per diluted share [16] - Expected annual increases in O&M expenses are projected to be closer to 4% going forward [30] Other Important Information - The board increased the dividend for shareholders by just over 3% to $1.96 per share [17] - Capital expenditures for 2025 are projected at $525 million, with a long-term expectation of nearly $3 billion from 2025 to 2029 [25] Q&A Session Summary Question: Guidance for 2025 and growth rate expectations - Management established guidance at a midpoint of $2.62, with a focus on achieving the midpoint of the growth rate [39][40] Question: Idaho rate case details - The procedural schedule is being established, with a potential technical hearing in late July [43] Question: Long-term growth rate consistency - Management expects to generally remain within the 4% to 6% growth range, barring inflation or significant investment opportunities [48] Question: Contribution from non-utility businesses - Management indicated that contributions from non-utility businesses are expected to be near zero moving forward [56] Question: Inclusion of energy recovery mechanism in guidance - The company is including a $0.12 negative impact from the energy recovery mechanism in its guidance for 2025 [59]

Financial Performance - Avista Corp. reported a total net income of $67 million for Q4 2024, down from $84 million in Q4 2023, and a total net income of $180 million for the full year 2024, compared to $171 million in 2023 [1][2] - Earnings per diluted share for Q4 2024 were $0.84, a decrease from $1.08 in Q4 2023, while the full year earnings per diluted share were $2.29, up from $2.24 in 2023 [1][2] Segment Performance - Avista Utilities generated a net income of $68 million in Q4 2024, down from $83 million in Q4 2023, and $179 million for the full year 2024, compared to $167 million in 2023 [1][2] - AEL&P maintained a consistent net income of $3 million for both Q4 2024 and Q4 2023, but saw a decrease in full year income from $9 million in 2023 to $8 million in 2024 [1][2] Revenue and Costs - The electric utility margin increased by $9 million in Q4 2024 and $56 million year-to-date, attributed to general rate cases and customer growth [2][4] - Other operating expenses rose by $8 million in Q4 2024 and $21 million year-to-date, primarily due to increased thermal generation costs and legal expenses [2][4] Tax and Interest - The effective tax rate for 2024 was 1.5%, a significant improvement from -24.4% in 2023, mainly due to a decrease in tax customer credits [5][4] - Interest expenses increased by $1 million in Q4 2024 and $5 million year-to-date, driven by higher borrowings and interest rates compared to 2023 [4][7] Capital Expenditures - Avista Utilities' capital expenditures for 2024 were $510 million, with expectations of $525 million in 2025 and nearly $3 billion over the next five years [9][10] - AEL&P's capital expenditures were $23 million in 2024, projected to decrease to $12 million in 2025 [10] Future Guidance - The company initiated its 2025 earnings guidance with a range of $2.52 to $2.72 per diluted share, with Avista Utilities expected to contribute between $2.43 and $2.61 per share [12][13] - Long-term earnings growth is anticipated in the range of 4-6% from the 2025 base year [13]

Financial Performance - Avista Corp. reported a total net income of $67 million for Q4 2024, down from $84 million in Q4 2023, and a total net income of $180 million for the full year 2024, compared to $171 million in 2023 [1][2] - Earnings per diluted share for Q4 2024 were $0.84, a decrease from $1.08 in Q4 2023, while the full year earnings per diluted share were $2.29, up from $2.24 in 2023 [1][2] Segment Performance - Avista Utilities contributed $68 million in net income for Q4 2024, down from $83 million in Q4 2023, and $179 million for the full year, compared to $167 million in 2023 [1][2] - AEL&P maintained a consistent net income of $3 million for Q4 2024, while it reported $8 million for the full year, down from $9 million in 2023 [1][2] Revenue and Costs - The electric utility margin increased by $9 million in Q4 2024 and $56 million year-to-date, attributed to general rate cases and customer growth [2][4] - Natural gas utility margin rose by $3 million in Q4 and $13 million year-to-date, also influenced by general rate cases and customer growth [2][4] Capital Expenditures - Avista Utilities' capital expenditures for 2024 were $510 million, while AEL&P's were $23 million [9] - Expected capital expenditures for Avista Utilities in 2025 are projected to be around $525 million, with a total of nearly $3 billion anticipated over the five-year period ending in 2029 [10] Future Outlook - The company initiated its 2025 earnings guidance with a range of $2.52 to $2.72 per diluted share, with Avista Utilities expected to contribute between $2.43 and $2.61 per diluted share [12][13] - AEL&P is projected to contribute between $0.09 and $0.11 per diluted share in 2025, while other businesses are expected to contribute zero earnings [12][13]

Financial Performance - Consolidated net income for 2024 was $180 million, an increase from $171 million in 2023, with earnings per diluted share of $2.29 compared to $2.24 in the previous year[1][3] - Avista Utilities reported a net income of $179 million for 2024, up from $167 million in 2023, with earnings per diluted share increasing to $2.28 from $2.18[1][3] - The company initiated 2025 earnings guidance with a range of $2.52 to $2.72 per diluted share, reflecting expected growth[2][11] - The effective tax rate for 2024 was 1.5%, a significant change from -24.4% in 2023, primarily due to a decrease in tax customer credits[4][5] - The company anticipates earnings growth in the long term at a rate of 4-6% from the forecast 2025 base year[12] Capital Expenditures - Capital expenditures for Avista Utilities in 2024 were $510 million, with expectations of approximately $525 million in 2025 and nearly $3 billion over the five-year period ending in 2029[8][9] - AEL&P's capital expenditures were $23 million in 2024, with expectations of $12 million in 2025[8][9] - The company closed on the remarketing of $84 million of long-term debt and issued $68 million of common stock in 2024[6] - Avista expects to issue $120 million of long-term debt and up to $80 million of common stock in 2025[7] Operational Risks - The company faces utility regulatory risks that could impact cost recovery and reasonable returns due to potential disallowance or delays in capital investment recovery[21] - Operational risks include severe weather events and natural disasters that could disrupt energy generation and distribution, affecting both supply and demand[22] - Climate change risks are increasing, with more frequent severe weather potentially disrupting energy operations and affecting customer demand[24] - Cybersecurity risks are present, with potential cyberattacks on operational and administrative systems that could disrupt business operations and incur liabilities[25] Financial Risks - Financial risks include the ability to obtain financing and the impact of interest rate changes on borrowing costs, which could affect overall financial stability[30] - Energy commodity risks involve volatility in wholesale energy markets, which could impact operating income and cash requirements for purchasing electricity and natural gas[31] - Compliance risks arise from changes in laws and regulations that could materially affect electric and gas operations and associated costs[32] - Strategic risks include potential declines in the customer base due to new energy technologies and competition from alternative energy sources[27] - The company is also exposed to external mandates risk, including changes in environmental regulations that could impose additional costs[28] - The company acknowledges the potential for increased operational costs due to inflationary pressures and rising insurance costs[23]

Financial Performance - Avista Corporation reported a total revenue of $1.5 billion for the fiscal year, reflecting a 5% increase compared to the previous year[9]. - The company achieved a net income of $150 million, which is a 10% increase year-over-year[9]. - The company reported a 12% increase in net income for the last quarter, totaling $45 million, attributed to higher energy sales and cost management strategies[23]. - Avista's dividend payout ratio remains stable at 60%, with plans to increase dividends by 3% in the next fiscal year[24]. Customer Growth and Demand - Avista Utilities served approximately 400,000 customers, with a 3% growth in customer base over the last year[9]. - The company anticipates a 5% growth in customer demand for electricity in the upcoming fiscal year, driven by increased residential and commercial usage[14]. - Avista plans to expand its market presence in Oregon and Idaho, targeting a 20% increase in customer base over the next three years[20]. Capital Expenditures and Investments - The company plans to invest $300 million in capital expenditures for infrastructure improvements in the upcoming year[9]. - Avista's capital expenditures for the next year are projected to be approximately $300 million, focusing on infrastructure upgrades and renewable energy projects[15]. - The company has allocated $50 million for research and development of clean energy initiatives, aiming to reduce greenhouse gas emissions by 25% by 2025[21]. - The company has initiated a new technology development program aimed at enhancing grid reliability and efficiency, with an investment of $50 million over the next three years[9]. Renewable Energy and Environmental Goals - The company is focusing on renewable energy projects, with a target of increasing renewable energy capacity by 20% by 2025[9]. - Avista Corporation is committed to reducing greenhouse gas emissions by 30% by 2030, aligning with state regulatory requirements[9]. - The company is actively pursuing new technologies, including advancements in hydroelectric generation, which are expected to enhance efficiency by 15%[19]. Risks and Challenges - The company faces increasing risks from climate change, including severe weather events that could disrupt energy generation and distribution[19]. - Cybersecurity threats are a significant concern, with potential attacks on operational and administrative systems that could disrupt business operations and incur liabilities[21]. - The company anticipates rising costs due to inflationary pressures, impacting operating expenses and capital costs[27]. - Changes in environmental regulations may impose additional compliance costs and affect operational capabilities[27]. - The company is experiencing volatility in energy commodity markets, which could impact operating income and cash flow requirements[32]. - There is a risk of declining electricity and natural gas demand due to customer energy efficiency measures and increased distributed generation[27]. - The potential for increased competition from alternative energy sources and customer-owned power technologies poses a strategic risk[24]. - The company is facing regulatory challenges that could impact its ability to recover costs, particularly related to environmental compliance measures[25]. - The company must comply with the terms of licenses and permits for its hydroelectric or thermal generating facilities to maintain cost-effectiveness[32]. Operational Efficiency and Workforce - The company is monitoring workforce issues, including recruitment and retention challenges, which could impact operational efficiency[19]. - Future business development efforts may be influenced by changes in strategic plans and market conditions, creating uncertainty[24]. Liquidity and Financial Position - The company reported a strong liquidity position with cash and cash equivalents totaling $200 million as of the end of the fiscal year[9]. - The company is focused on maintaining liquidity and access to capital, which could be affected by credit ratings and market conditions[27]. Market Conditions and Compliance - The company faces volatility and illiquidity in wholesale energy markets, which can affect operating income and cash requirements for purchasing electricity and natural gas[32]. - Potential environmental regulations or lawsuits could impact the company's ability to utilize its power supply resources[32]. - Changes in laws and regulations at various government levels could materially impact the company's electric and gas operations[32]. - The company emphasizes the importance of historical operating trends and third-party information in forming expectations and projections, but acknowledges the inherent uncertainties and risks involved[30]. - The company files annual, quarterly, and current reports with the SEC, which are available on their website and the SEC's website[31].

Core Viewpoint - The comparison between Avista (AVA) and American Electric Power (AEP) indicates that AVA is currently more attractive to value investors due to its stronger earnings estimate revision activity and more favorable valuation metrics [3][7]. Valuation Metrics - AVA has a forward P/E ratio of 14.70, while AEP has a forward P/E of 16.94 [5]. - AVA's PEG ratio is 2.76, compared to AEP's PEG ratio of 2.82, indicating AVA's expected earnings growth is slightly more favorable [5]. - AVA's P/B ratio is 1.14, whereas AEP's P/B ratio is 1.98, suggesting AVA is undervalued relative to its book value [6]. Analyst Outlook - AVA currently holds a Zacks Rank of 1 (Strong Buy), while AEP has a Zacks Rank of 3 (Hold), reflecting a more positive analyst outlook for AVA [3]. - The stronger estimate revision activity for AVA supports its position as the superior option for value investors at this time [7]. Style Scores - AVA has earned a Value grade of B, while AEP has a Value grade of C, indicating that AVA is viewed more favorably in terms of value investing criteria [6].

Core Viewpoint - Avista has filed a multi-year rate plan with the Idaho Public Utilities Commission to recover costs for infrastructure investments and fixed expenses, with new rates proposed to take effect in September 2025 and September 2026 [1][4]. Rate Plan Details - The proposed two-year rate plan includes a stay-out period where no new general rate case will be filed before September 2027, providing customers with predictability in energy prices [4]. - If approved, the electric general rate request aims to increase annual base revenues by $43.0 million (14.4%) effective September 1, 2025, and $17.7 million (5.2%) effective September 1, 2026 [5]. - The natural gas general rate request seeks to increase annual revenues by $8.8 million (10.3%) effective September 1, 2025, and $1.0 million (1.0%) effective September 1, 2026 [5]. Infrastructure Investments - Avista plans to replace aging infrastructure and invest in technology to enhance reliability and service, including the replacement of 240,000 electric distribution wood poles and ongoing projects to replace natural gas distribution pipes installed before 1987 [7][8]. - The company is also focusing on wildfire resiliency through grid hardening and enhanced vegetation management [8]. Customer Impact - Residential electric customers in Idaho using an average of 939 kilowatt hours per month could see a total billed increase of 14.7% ($15.36) in September 2025, and 5.3% ($6.36) in September 2026, leading to a revised monthly bill of $126.02 [9]. - Residential natural gas customers using an average of 66 therms per month could expect a total billed increase of 10.4% ($6.29) in September 2025, and 1.3% ($0.88) in September 2026, resulting in a revised monthly bill of $67.80 [10]. Proposed Changes by Service Schedule - The requested electric increases by service schedule range from 13.4% to 14.7% in September 2025 and from 4.9% to 5.3% in September 2026 [11]. - The requested natural gas increases by service schedule range from 0.0% to 10.3% in September 2025 and from 0.0% to 1.3% in September 2026 [11]. Customer Resources - Avista offers various services to assist customers in managing their energy bills, including comfort level billing, payment arrangements, and energy efficiency programs [12].

Core Points - The Avista Foundation awarded $54,650 to 21 nonprofit organizations in the fourth quarter of 2024 to support environmental initiatives and arts and culture efforts [1] - In total, the foundation awarded $563,285 to 125 nonprofit organizations in 2024 as part of its competitive grant program [2] - The foundation's grants aim to create a meaningful impact across communities, fostering sustainability and cultural vitality [3] Grant Details - The fourth-quarter grants included various organizations such as: - APOD Productions Inc. (Idaho) - $1,000 - CDA Youth Orchestra (Idaho) - $500 - Community Band of the Palouse (Washington) - $2,000 - Feast Collective (Washington) - $4,000 - Friends of Scotchman Peaks Wilderness (Idaho) - $1,200 - Klamath Watershed Partnership (Oregon) - $5,000 - National Forest Foundation (Alaska) - $7,500 - Spokane Youth Symphony (Washington) - $2,500 - Other organizations received varying amounts [3] Foundation Overview - Since its establishment in 2002, the Avista Foundation has granted over $17 million, focusing on vulnerable populations, education, and cultural initiatives [4] - The foundation operates separately from Avista Utilities and does not receive funding through customer rates [5]

Company Overview - Avista Corp. is an energy company engaged in the production, transmission, and distribution of energy, along with other energy-related businesses [3] - Avista Utilities, a division of Avista, provides electric service to 418,000 customers and natural gas to 382,000 customers across a service territory of 30,000 square miles in eastern Washington, northern Idaho, and parts of southern and eastern Oregon, serving a population of 1.7 million [3] - The company also has a subsidiary, Alaska Energy and Resources Company, which provides retail electric service to 18,000 customers in Juneau, Alaska [3] Upcoming Events - Avista Corp. will hold its quarterly conference call and webcast to discuss fourth quarter 2024 results on February 26, 2025, at 10:30 a.m. Eastern Standard Time [1] - A news release with fourth quarter 2024 earnings information will be issued at 7:05 a.m. Eastern Standard Time on the same day [1] - Access to the call requires pre-registration via the Presentations and Events link on Avista's website, and a replay will be available for one year [2]

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