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 - Consolidated earnings year-to-date in 2025 were $1.51 per diluted share compared to $1.44 year-to-date in 2024, reflecting a growth of approximately 4.86% [3] - For the third quarter of 2025, consolidated earnings were $0.36 per diluted share compared to $0.23 per diluted share for the third quarter of 2024, indicating a significant 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 the need for public safety power shutoffs, showcasing the effectiveness of the wildfire resiliency program [5] - The company received over 80 bids in its 2025 Request for Proposals (RFP), with 69 supply-side bids totaling nearly 14 GW of capacity and 17 demand response projects offering almost 300 MW [9] Company Strategy and Development Direction - The company is focused on supporting reliable and affordable customer service, community investment, and shareholder value through strategic initiatives [4] - The company plans to submit its wildfire mitigation plan to the Idaho Public Utilities Commission, marking a significant step in compliance with new legislation [8] - The company is working on expanding its network of AI-enabled cameras for wildfire monitoring and early detection, aiming for coverage of high-risk areas by the end of 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, particularly in engaging with potential large load customers, which are central to long-term planning and investment strategy [10] - The company confirmed its consolidated earnings guidance for 2025, with expectations of $2.52-$2.72 per diluted share, while Avista Utilities is expected to contribute towards the upper end of its range [15][16] 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 and $3.7 billion from 2025 through 2030 [14] - The company issued $120 million of long-term debt in July and does not expect further debt issuances this year [15] Q&A Session Summary Question: Regarding the $80 million equity needs for 2026 and potential divestitures - Management indicated that the expectation of up to $80 million for 2026 may change with additional capital investment opportunities, but significant divestitures are not anticipated [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 growth range of 4%-6% but would not exceed that range [22] Question: Managing external risks in the upcoming Washington MYRP filing - Management explained that if external risks arise, they have the option to refile the rate case, allowing for adjustments based on inflation or investment opportunities [30] Question: On the mark-to-market process for other businesses - Management confirmed that there is a quarter lag for some investments, and the current quarter reflects second-quarter values, with optimism about potential recovery in clean energy investments [34] Question: Mix of debt and equity financing for potential incremental CapEx - Management stated that the base capital plan for this year includes $120 million in debt and $80 million in equity, with incremental capital expected to be roughly 50/50 [35]

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]