Financial Data and Key Metrics Changes - Consolidated earnings year-to-date in 2025 were $1.51 per diluted share compared to $1.44 in 2024, reflecting a growth of approximately 4.86% [3] - For Q3 2025, consolidated earnings were $0.36 per diluted share, up from $0.23 per diluted share in Q3 2024, indicating a year-over-year increase of about 56.52% [3] Business Line Data and Key Metrics Changes - Year-to-date results at Avista Utilities were $1.63 per diluted share, reflecting a nearly 15% increase over 2024's year-to-date results, driven by regulatory outcomes and capital deployment [4] Market Data and Key Metrics Changes - The 2025 wildfire season concluded without public safety power shutoffs, attributed to strategic grid improvements and community collaboration [5][6] - The company is expanding its network of AI-enabled cameras for wildfire monitoring, aiming for coverage of high-risk areas by the end of 2026 [7] Company Strategy and Development Direction - The company is committed to supporting reliable and affordable customer service, community investment, and shareholder value through strategic initiatives [4] - The 2025 all-source RFP aims to secure up to 425 megawatts of new capacity, with a focus on leveraging federal tax credits before they expire [10] - The company is evaluating new generation resources and system capacity to attract large load customers, which are central to long-term planning [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, particularly in engaging with potential large load customers and the positive momentum in core business operations [16] - The expected return on equity at Avista Utilities is projected at 8.8%, with long-term earnings growth anticipated at 4%-6% from the midpoint of 2025 guidance [15] Other Important Information - Capital expenditures at Avista Utilities were $363 million in the first three quarters of 2025, with an expected total of $525 million for the year [13] - The company plans to issue up to $80 million of common stock in 2025, including $45 million already issued [14] Q&A Session Summary Question: Regarding the $80 million equity needs for 2026 and potential divestitures - Management indicated that the $80 million equity needs are expected to be met through periodic offerings, and significant divestitures are not anticipated [20][21] Question: On the rate-based outlook and incremental CapEx opportunities - Management clarified that additional capital opportunities could help reach the top end of the 4%-6% growth range, but not exceed it [22][23] Question: About managing external risks in the upcoming Washington MYRP filing - Management explained that they have the option to refile if external risks impact the plan, allowing flexibility in response to inflation and investment opportunities [29][30] Question: On the mark-to-market process for other businesses - Management confirmed a quarter lag for some investments, with optimism about potential recovery in clean energy investment values [33] Question: Regarding the mix of debt and equity financing for incremental CapEx - Management expects a mix of approximately 50/50 for incremental capital financing, with base capital plans indicating $120 million in debt and $80 million in equity [34]

Financial Data and Key Metrics Changes - Consolidated earnings for Q1 2025 were $0.98 per diluted share, an increase from $0.91 in Q1 2024, reflecting an almost 8% improvement in consolidated results [5][6] - The company confirmed its earnings guidance for 2025, with a consolidated range of $2.52 to $2.72 per diluted share [21][22] Business Line Data and Key Metrics Changes - Avista Utilities showed strong performance, contributing to the overall improvement in consolidated results [6] - Capital expenditures at Avista Utilities were $100 million in Q1 2025, with expectations of $525 million for the full year [20] Market Data and Key Metrics Changes - The company is actively engaging with potential new large load customers, which could enhance regional grid infrastructure and provide economic benefits [7][10] - The RFP process for generation needs identified for 2029 is underway, with bids expected to range from 50 megawatts to 400 megawatts [8][9] Company Strategy and Development Direction - The company is focused on infrastructure improvements and safety measures to mitigate wildfire risks, following recent legislation in Washington and Idaho [10][11] - The company is pursuing a multi-pronged approach to address tariff risks and is working with suppliers to mitigate potential impacts [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting consolidated earnings targets for 2025 and highlighted the importance of regulatory outcomes in supporting financial performance [6][16] - The company anticipates long-term earnings growth of 4% to 6% from a 2025 base year [23] Other Important Information - A settlement related to the Babb Road Fire litigation is expected to have no impact on earnings due to anticipated insurance proceeds [12] - The company is committed to investing in utility infrastructure, with significant capital expenditures planned over the next several years [20] Q&A Session Summary Question: Inquiry about the RFP process and potential cost impacts from IRA changes - Management acknowledged the uncertainty and indicated that opportunities for refreshing bids may be considered during the RFP process [26][27] Question: Discussion on natural gas needs related to large load customers - Management stated that the specifics would depend on the outcomes of the RFP and ongoing discussions with large load customers [29] Question: Clarification on the wildfire settlement and its implications - Management clarified that the settlement does not set a precedent for future events, as each situation will be evaluated on its own merits [33] Question: Impact of biotech trials on the valuation of the unregulated business - Management indicated that while there could be future impacts, it is too early to assess any valuation changes from ongoing trials [35][36] Question: Concerns about under-recovery of power costs in 2025 and 2026 - Management explained that the current mechanisms are locked in and that adjustments would require a multi-year strategy [43][44] Question: Managing affordability issues with growth and self-build generation - Management emphasized the integrated resource planning process to balance costs and compliance while engaging with large load customers [45]