Avista Corporation Reports Improved Financial Performance and Strategic Developments

Avista Corporation reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Utility revenues for the third quarter increased to $393.6 million from $379.5 million, while total operating revenues rose to $393.7 million from $379.6 million. For the nine-month period, utility revenues reached $1.4 billion, up from $1.2 billion, and total operating revenues increased to $1.4 billion from $1.2 billion.

Net income for the third quarter of 2024 was $18.5 million, compared to $14.7 million in the prior year, while net income for the nine months was $112.8 million, up from $87.0 million. Basic and diluted earnings per share for the third quarter were both $0.23, an increase from $0.19 in 2023. For the nine months, earnings per share rose to $1.44 from $1.15.

The increase in revenues and profitability was primarily driven by general rate cases, customer growth, and higher wholesale sales volumes, despite some offset from decreased wholesale sale prices. Operating expenses for the third quarter increased slightly to $345.0 million from $341.5 million, while for the nine months, they rose to $1.2 billion from $1.1 billion. The increase in expenses was attributed to higher thermal generation costs, legal costs, and employee medical expenses.

Avista's total assets increased to $7.78 billion as of September 30, 2024, from $7.70 billion at the end of 2023. Shareholders' equity rose to $2.53 billion, up from $2.49 billion, reflecting a strong financial position. The company reported a decrease in total current assets to $525.1 million from $661.8 million, while total current liabilities decreased to $700.2 million from $775.2 million.

In terms of strategic developments, Avista is preparing for the exit of the Colstrip coal units from its generation portfolio by December 31, 2025, and anticipates a need for additional generating capacity due to increased demand and extreme weather conditions. The company has submitted a draft Integrated Resource Plan (IRP) to the Washington Utilities and Transportation Commission (WUTC) and plans to file a general rate case in November 2024 to address rising costs associated with the Washington Climate Commitment Act.

Avista's capital expenditures for 2024 are projected at approximately $515 million, with plans for continued investment in infrastructure. The company also reported a $10 million contribution to its pension plan for the nine months ended September 30, 2024, with no further contributions expected for the year.