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]

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 landed 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 expressed optimism about the long-term strength of the utility, despite facing unprecedented uncertainty [5] - The company expects earnings to grow 4%-6% from the midpoint of 2025 consolidated earnings guidance, raising the long-term expected return on equity to approximately 9% [20] Other Important Information - The board of directors raised the dividend to $1.97 per share, marking 24 consecutive years of dividend increases with a compound annual growth of over 5% [11] - Capital expenditures for Avista Utilities were $553 million in 2025, expected to rise to $585 million in 2026, with a projected $3.4 billion in capital expenditures from 2026 to 2030 [15][16] 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 - The next step involves moving towards a Memorandum of Understanding (MOU) with the new customer, ensuring existing customers are insulated from potential impacts if the large load does not materialize [29][30] Question: Financing plan for potential $350 million CapEx - Management expects a 50/50 debt and equity structure for the potential $350 million CapEx, considering hybrids if additional capital is needed [38][40] Question: Monetizing non-regulated investments - The company is open to monetizing non-regulated investments if opportunities arise, which could help reduce the need for equity issuance [41] Question: Long-term EPS growth expectations - Management remains confident in achieving a 4%-6% growth rate, despite a lower result in 2025, with a long-term ROE target of 9% [51][53] Question: Rate-based CAGR and CapEx inclusion - The upside CapEx is not included in the current CAGR projections, but it is considered a proxy for potential investment opportunities [54]