Avista(AVA) - 2024 Q4 - Annual Results

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]