AVISTA CORP

Previous wording

Our business segments have not changed during the six months ended June 30, 2025. See the 2024 Form 10-K as well as “Note 15 of the Notes to Condensed Consolidated Financial Statements” for further information regarding our business segments.

Current wording

Our business segments have not changed during the nine months ended September 30, 2025. See the 2024 Form 10-K as well as “Note 15 of the Notes to Condensed Consolidated Financial Statements” for further information regarding our business segments.

Previous wording

The following table presents net income (loss) for each of our business segments and the other businesses for the three and six months ended June 30 (dollars in millions):

Current wording

The following table presents net income (loss) for each of our business segments and the other businesses for the three and nine months ended September 30 (dollars in millions):

Previous wording

Net income for the three and six months ended June 30, 2025 decreased compared to the three and six months ended June 30, 2024, primarily due to losses at our other businesses associated with lower valuations of certain investments in our portfolio. At Avista Utilities, the effects of our general rate cases have increased earnings in the first half of the year, partially offset by increased operating costs, depreciation and amortization expense and income tax expense.

Current wording

Net income for the three and nine months ended September 30, 2025 increased compared to the three and nine months ended September 30, 2024, primarily due to the effects of our general rate cases. Partially offsetting the increase were increased operating costs, depreciation and amortization expense and income tax expense. In addition, increased investment losses associated with lower valuations of certain investments in our portfolio decreased year to date net income at our other businesses when compared to 2024.

Previous wording

Resource Adequacy and 2025 IRP

Current wording

Resource Adequacy and 2025 Request for Proposal (RFP)

Previous wording

In May 2025, we issued a request for proposal to add energy and capacity of up to 415 MW for winter and 425 MW for summer to meet projected resource needs. As part of this request for proposal, we submitted self-build resource bids for consideration. Initial bids were submitted by the end of June 2025, and we expect to select a list of projects to move to the detailed proposal stage during the third quarter of 2025 and begin contract negotiations with final selected projects in the fourth quarter of 2025.

Current wording

Our 2025 electric IRP was filed with the WUTC and IPUC in December 2024, and identified needs for additional generating capacity. In May 2025, we issued a request for proposal to add energy and capacity to meet projected resource needs. During the third quarter, we selected a list of projects to move to the detailed proposal stage, and expect to begin contract negotiations with final selected projects by the end of 2025. See "Future Resource Needs" for further discussion of regional resource adequacy and our RFP.

Previous wording

For 2025, we expect generation at our hydro facilities to be approximately 85 percent of normal. To meet summer peak demands, we have used additional thermal generation or economic market purchases to offset the decrease in available hydroelectric resources.

Current wording

For 2025, we expect generation at our hydro facilities to be approximately 85 percent of normal. To meet summer peak demands, we used additional thermal generation and economic market purchases to offset the decrease in available hydroelectric resources.

Previous wording

The President of the United States of America has imposed tariffs on certain imported goods and has announced plans to impose tariffs on others. The imposition of tariffs would impact the cost of other equipment and materials that are critical to our business, increasing capital and operating expenses, and could create supply chain disruptions. The tariffs have not had a material impact on our operations or financial performance to date. At this time, we are unable to reasonably estimate the effects of the tariffs, and have not made any adjustments to our capital or operating budget to account for increased costs resulting from tariffs.

Current wording

The President of the United States of America has imposed tariffs on certain imported goods and has announced plans to impose tariffs on others. The imposition of tariffs may impact the cost of other equipment and materials that are critical to our business, increasing capital and operating expenses, and could create supply chain disruptions. The tariffs have not had a material impact on our operations or financial performance to date. At this time, we do not expect the impact of tariffs to be material, and have not made any adjustments to our capital or operating budget to account for increased costs resulting from tariffs.

Previous wording

The WUTC did not approve our request to modify the ERM under which differences between actual net power supply costs and the amount reflected in base retail customer rates are tracked. Based on our forecast energy commodity costs in 2025 and 2026, we expect actual net power supply costs to exceed the level included in base rates. We plan to continue to address how net power supply costs are set in base rates in future regulatory proceedings.

Current wording

The WUTC did not approve of our request to modify the ERM under which differences between actual net power supply costs and the amount reflected in base retail customer rates are tracked. Based on our forecast energy commodity costs in 2025 and 2026, we expect actual net power supply costs to exceed the level included in base rates. We plan to continue to address how net power supply costs are set in base rates in future regulatory proceedings.

Previous wording

In 2019, the Washington State Legislature passed the CETA, which, among other things, requires costs associated with coal-fired generation facilities to be removed from rates no later than December 31, 2025. The WUTC order approving the settlement of the 2022 general rate cases, required us to establish a tracker for our Colstrip-related costs, including operating and maintenance expense, depreciation and amortization expense, and a return on rate base. In October 2024, we filed a cost recovery tariff seeking to recover the costs associated with our ownership of Colstrip in 2025. In the filing, we requested an increase in annual Colstrip tariff revenues of $19 million – from $24 million in 2024 to $43 million in 2025, effective January 1, 2025. In its review, WUTC Staff raised three concerns related to (1) whether forecasted 2025 investments are allowed in rates; (2) whether the capital investment included in the filing will be used and useful for customers prior to the end of 2025; and (3) one major capital investment that will not be in service until 2027. In December 2024, the WUTC allowed our filed tariff to go into effect, but set the rates as subject to refund. The WUTC set the matter for adjudication in 2025, but also ordered us, WUTC Staff, and other interested parties to meet and resolve the issues. On March 6, 2025, the Commission held a prehearing conference for purposes of setting a procedural schedule. The issued schedule calls for a process that results in an Evidentiary Hearing on October 3, 2025, and a final order by the end of 2025.

Current wording

In 2019, the Washington State Legislature passed the CETA, which, among other things, requires costs associated with coal-fired generation facilities to be removed from rates no later than December 31, 2025. The WUTC order approving the settlement of the 2022 general rate cases, required us to establish a tracker for our Colstrip-related costs, including operating and maintenance expense, depreciation and amortization expense, and a return on rate base. In October 2024, we filed a cost recovery tariff seeking to recover the costs associated with our ownership of Colstrip in 2025. In the filing, we requested an increase in annual Colstrip tariff revenues of $19 million – from $24 million in 2024 to $43 million in 2025, effective January 1, 2025. In its review, WUTC Staff raised three concerns related to (1) whether forecasted 2025 investments are allowed in rates; (2) whether the capital investment included in the filing will be used and useful for customers prior to the end of 2025; and (3) one major capital investment that will not be in service until 2027. In December 2024, the WUTC allowed our filed tariff to go into effect, but set the rates as subject to refund. An Evidentiary Hearing was held in October 2025, and a final order is expected by the end of 2025.

Previous wording

The settlement is designed to increase annual base electric revenues by $20 million, or 6.3 percent, effective in September 2025, and $15 million, or 4.5 percent, effective in September 2026. For natural gas, the agreement is designed to increase annual base natural gas revenues by $5 million, or 9.2 percent, effective September 2025, and decrease annual base natural gas revenues by $0.2 million, or 0.4 percent, effective September 2026.

Current wording

In August 2025, the IPUC approved the all-party settlement agreement designed to increase annual base electric revenues by $20 million, or 6.3 percent, effective September 2025, and $15 million, or 4.5 percent, effective September 2026. For natural gas, the agreement was designed to increase annual base natural gas revenues by $5 million, or 9.2 percent, effective September 2025, and decrease annual base natural gas revenues by $0.2 million, or 0.4 percent, effective September 2026.

Previous wording

The settlement is based on an ROE of 9.6 percent with a common equity ratio of 50 percent and an ROR of 7.28 percent.

Current wording

The settlement was based on an ROE of 9.6 percent with a common equity ratio of 50 percent and an ROR of 7.28 percent.

Previous wording

In July 2025, the Governor of Oregon signed into law House Bill 3179 which modifies certain provisions as it relates to general rate case filings and cost recovery. The law, among other things, extends the length of time for the commission to suspend rates from nine to 10 months, does not allow residential rate increases of any kind between November 1 and March 31, does not allow new rates to take effect from a proceeding where the return on equity is at issue within 18 months of the prior rate effective date, authorizes securitization of “capital investments” that will cause rates to “rise by more than five percent” under specific circumstances, and calls for the OPUC to establish rules requiring utilities to establish a multiyear rate plan for rate revisions where a company’s return on equity is reviewed. Such rate plans must be no less than three years and no more than seven years in length.

Current wording

In July 2025, the Governor of Oregon signed into law House Bill 3179 which modifies certain provisions of law that relate to general rate case filings and cost recovery. The law, among other things, extends the length of time for the commission to suspend rates from a proposed effective date from nine to ten months, does not allow residential rate increases of any kind between November 1 and March 31, does not allow new rates to take effect from a proceeding where the return on equity is at issue within eighteen months of the prior rate effective date, authorizes (but does not require) securitization of “capital investments” that will cause rates to “rise by more than five percent” under specific circumstances, and calls for the OPUC to establish rules requiring utilities to establish a multiyear rate plan for rate revisions where a company’s return on equity is reviewed. Such rate plans must be no less than three years and no more than seven years in length. Rulemakings to institute these provisions started in September 2025 and will continue through 2026. We are analyzing the possible effects of this legislation, including how it will impact timing of our future rate case filings.

Previous wording

The following graph shows the total change in net income for the second quarter of 2025 compared to the second quarter of 2024, as well as the factors that caused such change (dollars in millions):

Current wording

The following graph shows the total change in net income for the third quarter of 2025 compared to the third quarter of 2024, as well as the factors that caused such change (dollars in millions):

Previous wording

Electric utility revenues increased as a result of the effects of general rate cases, and increased wholesale sales volumes. This was partially offset by decreased wholesale sale prices. Natural gas revenues decreased due to decreased rates associated with the PGAs (which do not impact utility margin or net income), as well as decreased sales volumes.

Current wording

Electric utility revenues increased primarily as a result of the effects of general rate cases and customer growth, which was partially offset by decreased wholesale revenues. Natural gas revenues decreased due to decreased rates associated with the PGAs (which do not impact utility margin or net income), as well as decreased wholesale volumes.

Previous wording

Utility resource costs decreased primarily due to net amortizations and deferrals of costs under our regulatory recovery mechanisms.

Current wording

Utility resource costs decreased primarily due to net amortizations and deferrals of electric resource costs under our regulatory recovery mechanisms. This includes the effects of the Washington general rate case and a lower level of authorized power supply costs resulting in increased deferrals.

Previous wording

The following graph shows the total change in net income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, as well as the factors that caused such change (dollars in millions):

Current wording

The following graph shows the total change in net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as well as the factors that caused such change (dollars in millions):

Previous wording

Utility revenues increased as a result of the effects of general rate cases and customer and load growth. This was partially offset by decreased wholesale revenues associated with decreased sale prices, as well as decreased natural gas rates associated with PGA decreases, which do not impact utility margin or net income.

Current wording

Utility revenues increased as a result of the effects of general rate cases and customer and load growth. This was partially offset by decreased wholesale revenues associated with decreased sale prices, as well as decreased natural gas rates associated with PGA regulatory mechanism, which do not impact utility margin or net income.

Previous wording

Electric utility resource costs decreased primarily due to decreased purchased power and fuel for generation, as well as increased deferrals of power supply costs and decreased amortizations of previously deferred costs. Natural gas utility resource costs decreased due to decreased commodity prices, as well as decreased amortizations of previously deferred PGA costs. These decreases were offset by an increase in the amortization of costs associated with the CCA that are being recovered from customers.

Current wording

Electric utility resource costs decreased primarily due to decreased purchased power associated with decreased wholesale prices, as well as decreased amortizations of previously deferred costs. Electric utility resource costs also decreased due to the effects of the Washington general rate case and a lower level of authorized power supply costs resulting in increased deferrals of power supply costs. Natural gas utility resource costs decreased due to decreased commodity prices, as well as decreased amortizations of previously deferred PGA costs. These decreases were offset by an increase in the amortization of costs associated with the CCA that are being recovered from customers.

Previous wording

Utility operating expenses increased due to increased employee salaries and benefits costs. In addition, net amortizations and deferrals associated with wildfire mitigation and insurance costs have increased, with corresponding increases to revenue which result in no impact to earnings.

Current wording

Utility operating expenses increased due to increased employee salaries and benefits costs, as well as thermal generation costs. In addition, net amortizations and deferrals associated with wildfire mitigation and insurance costs have increased, with corresponding increases to revenue which result in no impact to earnings.

Previous wording

Total electric operating revenues in the graph above include intracompany sales of $1 million and $3 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Total electric operating revenues in the graph above include intracompany sales of $1 million and $0 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Total electric revenues increased $18 million for the second quarter of 2025 as compared to the second quarter of 2024. The primary changes that occurred during the period were as follows:

Current wording

Total electric revenues increased $13 million for the third quarter of 2025 as compared to the third quarter of 2024. The primary changes that occurred during the period were as follows:

Previous wording

A $33 million increase in retail electric revenue due to an increase in MWhs sold (increased revenues by $17 million) and an increase in retail rates (increased revenues by $16 million).

Current wording

A $32 million increase in retail electric revenue due to an increase in retail rates (increased revenues by $22 million) and an increase in MWhs sold (increased revenues by $10 million).

Previous wording

A $2 million increase in wholesale electric revenues due to an increase in sales volumes (increased revenues $14 million), partially offset by a decrease in sales prices (decreased revenues $12 million). The change in volumes was due to increased opportunities to optimize our generation assets based on market conditions.

Current wording

A $5 million decrease in wholesale electric revenues due to a decrease in sales prices (decreased revenues $3 million) and a decrease in sales volumes (decreased revenues $2 million). The change in volumes was due to decreased opportunities to optimize our generation assets based on market conditions.

Previous wording

An $11 million decrease in electric decoupling revenue, due to decreased amortizations of prior year rebate balances and decreased deferrals of surcharge balances due to increased loads compared to the second quarter of 2024.

Current wording

A $13 million decrease in electric decoupling revenue, due to increased deferrals of rebate balances due to increased loads compared to the third quarter of 2024, as well as decreased amortizations of prior year rebate balances.

Previous wording

A $7 million decrease in other electric revenues primarily resulting from decreased renewable energy credit revenues and transmission revenues.

Current wording

A $5 million decrease in other electric revenues primarily resulting from decreased renewable energy credit revenues and transmission revenues.

Previous wording

A $17 million decrease in natural gas retail revenues (including industrial, which is included in other) due to a decrease in retail rates (decreased revenues $10 million) and decreased sales volumes (decreased revenues $7 million).

Current wording

A $5 million decrease in natural gas retail revenues (including industrial, which is included in other) due to a decrease in retail rates (decreased revenues $4 million) and decreased sales volumes (decreased revenues $1 million).

Previous wording

A $7 million increase in natural gas decoupling revenues primarily due to increased surcharge deferrals in the current year as a result of lower customer usage due to warmer weather.

Current wording

A $1 million increase in natural gas decoupling revenues due to increased surcharge deferrals in the current year as a result of lower customer usage due to warmer weather.

Previous wording

Total electric resource costs increased $1 million for the second quarter of 2025 as compared to the second quarter of 2024. The changes that occurred during the period were as follows:

Current wording

Total electric resource costs decreased $19 million for the third quarter of 2025 as compared to the third quarter of 2024. The changes that occurred during the period were as follows:

Previous wording

A $9 million increase in power purchased due to an increase in the volume of power purchases (increased costs $16 million), partially offset by a decrease in wholesale prices (decreased costs $7 million).

Current wording

A $3 million increase in power purchased due to an increase in the volume of power purchases (increased costs $5 million), partially offset by a decrease in wholesale prices (decreased costs $2 million).

Previous wording

A $6 million increase in fuel for generation. This was due to increases in fuel prices and thermal generation compared to the second quarter of 2024.

Current wording

A $3 million increase in fuel for generation. This was due to increases in fuel prices compared to the third quarter of 2024.

Previous wording

A $14 million decrease in other electric resource costs, primarily related to an increase in deferred costs, as well as a decrease in the amortization of previously deferred costs. This was partially offset by increased costs related to our customer assistance payment programs (low-income rate assistance and demand side management).

Current wording

A $28 million decrease in other electric resource costs, primarily related to an increase in deferred costs, as well as a decrease in the amortization of previously deferred costs. The increase in deferred costs was primarily due to the effects of the Washington general rate case and a lower level of authorized power supply costs. This was partially offset by increased costs related to our customer assistance payment programs (low-income rate assistance and demand side management).

Previous wording

Total natural gas resource costs decreased $16 million for the second quarter of 2025 as compared to the second quarter of 2024 due to the following:

Current wording

Total natural gas resource costs decreased $9 million for the third quarter of 2025 as compared to the third quarter of 2024 due to the following:

Previous wording

A $10 million decrease in natural gas purchased primarily due to a decrease in volumes consistent with a decrease in retail and wholesale sales volumes.

Current wording

An $8 million decrease in natural gas purchased primarily due to a decrease in volumes consistent with a decrease in retail and wholesale sales volumes.

Previous wording

A $6 million decrease in other costs primarily due to the decrease in amortizations of previously deferred costs under PGAs, which do not impact utility margin.

Current wording

A $1 million decrease in other costs primarily due to the decrease in amortizations of previously deferred costs under PGAs, which do not impact utility margin.

Previous wording

Electric utility margin increased $17 million primarily due to the effects of our general rate cases and customer growth. Natural gas utility margin increased $6 million primarily due to the effects of our general rate cases.

Current wording

Electric utility margin increased $32 million primarily due to the effects of our general rate cases and customer growth. Natural gas utility margin increased $4 million primarily due to the effects of our general rate cases.

Previous wording

In the second quarter of 2025, we had a $1 million pre-tax expense under the ERM in Washington, compared to a $1 million pre-tax benefit for the second quarter of 2024.

Current wording

In the third quarter of 2025, we had a $4 million pre-tax expense under the ERM in Washington, compared to a $3 million pre-tax expense for the third quarter of 2024.

Previous wording

The following table presents Avista Utilities' average number of electric and natural gas retail customers for the six months ended June 30, 2025 and 2024:

Current wording

The following table presents Avista Utilities' average number of electric and natural gas retail customers for the nine months ended September 30, 2025 and 2024:

Previous wording

The following graphs present Avista Utilities' electric operating revenues and megawatt-hour (MWh) sales for the six months ended June 30, 2025 and 2024 (dollars in millions and MWhs in thousands):

Current wording

The following graphs present Avista Utilities' electric operating revenues and megawatt-hour (MWh) sales for the nine months ended September 30, 2025 and 2024 (dollars in millions and MWhs in thousands):

Previous wording

The following table presents the current year decoupling deferrals and the amortization of prior year decoupling deferrals reflected in utility electric operating revenues for the six months ended June 30 (dollars in millions):

Current wording

The following table presents the current year decoupling deferrals and the amortization of prior year decoupling deferrals reflected in utility electric operating revenues for the nine months ended September 30 (dollars in millions):

Previous wording

Total electric revenues increased $15 million for the first half of 2025 as compared to the first half of 2024. The primary changes that occurred during the period were as follows:

Current wording

Total electric revenues increased $27 million for the first three quarters of 2025 as compared to the first three quarters of 2024. The primary changes that occurred during the period were as follows: