AVISTA CORP Q3 FY2024 earnings call

Dennis Vermillion's Farewell - Final earnings call as CEO, handing over to Heather Rosentrater on January 1, 2025. - Highlighted progress in regulatory strategy, customer energy assistance programs (grew from $11M to nearly $40M/year), $2B+ investment in the system, over $90M in state/federal grants, and clean energy goals (4 PPAs for 325 MW of renewable energy, aiming for >70% peak generating capability from renewables by 2026). ### Heather Rosentrater's Updates - Officially out of wildfire season, with PSPS used on one circuit in late September and successful restoration. - Deployed 9 AI-enabled fire detection cameras for wildfire smoke detection. - Clearwater Wind Project came online, contributing to being one of the lowest CO2-emitting energy producers. - Signed MOU for ownership share of North Plains Connector Transmission Project. - Planning RFP for new generation resources starting 2029, with options for self-build and build transfer agreements.

Avista Utilities: Third quarter and year-to-date results showed continued improvement, largely due to general rate cases. Capital expenditures at Avista Utilities were $389 million in the first three quarters of 2024, with planned $515 million for the year. AEL&P: Third quarter results were in line with expectations and on track to meet full-year earnings targets. Other businesses: Year-to-date, recognized a $0.03 loss per diluted share due to market valuations within the investment portfolio.

2024 Guidance - Lowered consolidated earnings guidance to $2.26 to $2.46 per diluted share due to other businesses' net loss range of $0.04 to $0.06 per diluted share. - Avista Utilities expected to contribute near the low end of the range due to higher power supply costs and ERM impact (negative $0.08 per diluted share). - AEL&P expected to contribute $0.09 to $0.11 per diluted share in 2024. ### Future Plans - Expect constructive rate order from Washington general rate case in mid-December. - Filed Oregon general rate case, plan to file Idaho case in Q1 2025. - Planned capital expenditures over next three years: $525M in 2025, $575M in 2026, $600M in 2027.

Risks - Power supply cost volatility impacting ERM expenses. - Market valuation fluctuations affecting results of other businesses. - Uncertainties from legislative initiatives, such as close ballot measures in Washington (I-2117 failed, I-2066 too close to call with uncounted votes remaining).

Q: About North Plains Connector milestones and RFP for new generation.

A: Heather Rosentrater mentioned next steps for North Plains Connector include development of definitive agreements in 6-9 months, and RFP for new generation starting early 2025 with self-build and build transfer options.

Q: About other segment loss.

A: Kevin Christie explained the loss is due to mark-to-market on the unregulated business, a small but strategic part, with improvement expected in 2025 and beyond.

Q: About wildfire season lessons and legislative initiatives.

A: Heather Rosentrater discussed PSPS experience with 1500 customers affected and restored same day, and plans to move forward with wildfire-related legislation in upcoming sessions in Washington and Idaho, including adding weather stations and focusing on undergrounding.