Avista Corporation Q2 FY2025 earnings call

• Avista Utilities shows continued strategic progress despite clean tech market headwinds. - All-party, all-issue settlements in Oregon and Idaho were approved, building on constructive regulatory outcomes. - Issued an all-source RFP in May seeking 100 to 425 MW of generation, received over 80 bids, with a short list of preferred projects expected by end of the month. - Capital expenditures at Avista Utilities were $236 million in the first half of 2025, with expected overall 2025 capital expenditures of $525 million and nearly $3 billion from 2025-2029. - Liquidity as of June 30 included $106 million under committed line of credit and $42 million under letter of credit facility; $120 million of long-term debt issued in July, and up to $80 million of common stock expected to be issued in 2025.

Consolidated earnings for the first half of 2025 were $1.15 per diluted share compared to $1.20 for the first half of 2024. For the second quarter of 2025, consolidated earnings were $0.17 per diluted share compared to $0.29 for the second quarter of 2024. Avista Utilities' year-to-date results of $1.25 per diluted share reflect a nearly 7% increase over 2024's year-to-date results. Avista Utilities' earnings in the second quarter of 2025 were slightly below the same period in 2024 due to changes in resource costs and operating cost incurrence. AEL&P is expected to contribute $0.09 to $0.11 per diluted share in 2025.

• Affirmed consolidated earnings guidance for 2025 with a range of $2.52 to $2.72 per diluted share. - Avista Utilities expected to contribute toward the upper end of the range $2.43 to $2.61 per diluted share, with an expected negative impact from the Energy Recovery Mechanism (ERM) of $0.12 in the 90% customer, 10% company sharing band. - AEL&P expected to contribute $0.09 to $0.11 per diluted share in 2025. - Long-term earnings growth expected to be 4% to 6% from the 2025 base year.

• Market sentiment shifts related to clean technology weighed on consolidated earnings performance. - Valuations of investments in clean technology-focused funds impacted by public policy and sentiment shifts. - Wildfire risks in the region, with drier than normal summer conditions increasing risk.

Q: Just the 3,000 megawatts of large load that you're in discussions with, is there any way to kind of characterize that? And how does that tie into the RFP?

A: The 3,000 MW in the pipeline is a wide variety of load types. The RFP responses will help inform conversations with potential customers by providing up-to-date supply resource costs and availability info.

Q: Are there any thermal resources in the RFP? How about prospective win rate?

A: Natural gas was one of the resources received in the RFP. With the evaluation underway, not sharing specific self-bid details, but bids are competitive.

Q: Outlook for wildfires in the region?

A: Fire activity has been above normal, but so far no significant starts, with mitigation tactics in place to minimize risk going forward