Avista(AVA) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Consolidated earnings year-to-date in 2025 were $1.51 per diluted share, an increase from $1.44 in 2024 [3] - For Q3 2025, consolidated earnings were $0.36 per diluted share compared to $0.23 per diluted share for Q3 2024 [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 [4] Market Data and Key Metrics Changes - The 2025 wildfire season concluded without the need for public safety power shutoffs, indicating effective risk management and operational preparedness [5][6] 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 and at least 5 megawatts of demand response, with a positive response from bidders [9][10] - The company is focusing on leveraging federal tax credits for selected projects that need to begin construction by July 2026 [10] 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][11] - The company expects capital expenditures of $525 million in 2025 and $3.7 billion from 2025 through 2030, with a growth rate of 6% [13][14] Other Important Information - The company confirmed its consolidated earnings guidance for 2025, with a range of $2.52-$2.72 per diluted share, impacted by valuation losses in other businesses [15][16] - The company plans to submit its wildfire mitigation plan to the Idaho Public Utilities Commission, marking a significant regulatory step [7][8] 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 would not necessitate significant changes such as divesting other businesses [20] Question: Clarification on rate-based outlook and incremental CapEx opportunities - Management stated that additional capital opportunities could help reach the top end of the growth range of 4%-6% but would not exceed that [22] Question: Managing external risks in the upcoming Washington MYRP filing - Management explained that they have the option to refile if external risks like inflation impact the plan, allowing flexibility in their approach [27][28] Question: Mark-to-market values and potential impacts on year-end updates - Management confirmed a quarter lag for some investments, with optimism about potential recovery in clean energy investment values [32] Question: Mix of debt and equity financing for potential incremental CapEx - Management indicated that the base capital plan for this year is $120 million debt and $80 million equity, with incremental capital expected to be roughly 50/50 [33]