Avista Corporation Sees Strong Start to 2025 with Improved Earnings and Advancements on Renewable Energy Initiatives
Avista Corporation kicked off its fiscal year 2025 on a high note, reporting consolidated earnings of $0.98 per diluted share for the first quarter, representing an 8% improvement compared to the same period in 2024.
The company's strong performance was driven largely by Avista Utilities, which contributed significantly to the improved results. In her remarks, President and CEO Heather Rosentrater emphasized that Avista is on track to meet its consolidated earnings targets for 2025, a promising start to the year.
One of the key highlights from the quarter was the advancement in discussions with potential new large load customers. These conversations not only offer opportunities for incremental investments but also present chances to enhance regional grid infrastructure, create employment opportunities, and provide future rate relief and sales tax revenue benefits to existing Avista customers. The company is viewing these potential new loads as net positives for the region.
These discussions have underscored the need for the resources identified in Avista's 2025 Integrated Resource Plan (IRP). As a result, the company plans to seek bids through an all-source request for proposal (RFP) process. The draft RFP was filed with the Washington Commission and communicated to the Idaho Commission in March and is expected to be finalized by the end of May.
The RFP aims to secure generation capacity ranging from 50 megawatts to 400 megawatts to meet the needs identified for 2029. Bids will be due later in June, and Avista expects to issue a shortlist in August. The company is optimistic about ownership options through build-transfer agreements or self-build options within this process.
Additionally, significant legislative progress was made regarding wildfire mitigation in both Washington and Idaho, with the passage of critical bills that provide for approval of wildfire mitigation plans. Overwhelming support from state legislatures underscores the recognition of wildfire as a critical issue and is a positive step forward in addressing associated risks.
In other news, Avista has reached a resolution in the litigation related to the Bab Road fire. The company agreed to a settlement that addresses substantially all claims brought by affected parties and will result in no impact to earnings, as insurance proceeds are expected to cover the $21 million liability. This development is seen as being in the best interest of both the company and the communities it serves.
Avista remains committed to maintaining the highest standards of safety and reliability in its operations, as emphasized by President and CEO Heather Rosentrater. The company's dedication to these values is evident through its continued efforts to mitigate wildfire risks and resolve outstanding issues like the Bab Road fire settlement."
