AVISTA CORP
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
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Enterprise Risk Management
The material risks to our businesses, and our mitigation process and procedures to address these risks, were discussed in our 2024 Form 10-K and have not materially changed during the nine months ended September 30, 2025. See the 2024 Form 10-K.
Financial Risk
Our financial risks have not materially changed during the nine months ended September 30, 2025. Refer to the 2024 Form 10-K. The financial risks included below are required interim disclosures, even if they have not materially changed from December 31, 2024.
Interest Rate Risk
We use a variety of techniques to manage our interest rate risks. We have an interest rate risk policy that includes limiting our variable rate exposures to a percentage of total capitalization, as well as issuing fixed rate long-term debt with varying maturities. Additionally, interest rate risk is managed by monitoring market conditions when issuing long-term debt and optional debt redemptions.
Credit Risk
As of September 30, 2025, we had cash deposited as collateral of $7 million and letters of credit of $7 million outstanding related to our energy contracts. Price movements and/or a downgrade in our credit ratings or other established credit criteria could impact further the amount of collateral required. See “Credit Ratings” in the 2024 Form 10-K for further information. For example, in addition to limiting our ability to conduct transactions, if our credit ratings were lowered to below “investment grade” based on our positions outstanding at September 30, 2025 (including contracts considered derivatives and those considered non-derivatives), we would potentially be required to post the following additional collateral (dollars in millions):
| Additional collateral taking into account contractual thresholds | $22 |
|---|---|
| Additional collateral without contractual thresholds | 35 |
Energy Commodity Risk
Our energy commodity risks have not materially changed during the nine months ended September 30, 2025. See the 2024 Form 10-K. The following table presents energy commodity derivative fair values as a net asset or (liability) as of September 30, 2025 expected to be delivered in each respective year (dollars in millions). There are no expected deliveries of energy commodity derivatives after 2028.
| Purchases · Sales | ||||||||
|---|---|---|---|---|---|---|---|---|
| Electric Derivatives · Gas Derivatives · Electric Derivatives · Gas Derivatives | ||||||||
| Year | Physical (1) | Financial (1) | Physical (1) | Financial (1) | Physical (1) | Financial (1) | Physical (1) | Financial (1) |
| Remainder 2025 | $— | $— | $(11) | $(4) | $3 | $3 | $(2) | $— |
| 2026 | — | — | (10) | (5) | 4 | 1 | (5) | — |
| 2027 | — | — | (1) | — | — | — | (5) | — |
| 2028 | — | — | — | — | — | — | (3) | — |
The following table presents energy commodity derivative fair values as a net asset or (liability) as of December 31, 2024 expected to be delivered in each respective year (dollars in millions). There were no expected deliveries of energy commodity derivatives after 2027.
| Purchases · Sales | ||||||||
|---|---|---|---|---|---|---|---|---|
| Electric Derivatives · Gas Derivatives · Electric Derivatives · Gas Derivatives | ||||||||
| Year | Physical (1) | Financial (1) | Physical (1) | Financial (1) | Physical (1) | Financial (1) | Physical (1) | Financial (1) |
| 2025 | $— | $— | $(23) | $(19) | $10 | $7 | $(3) | $— |
| 2026 | — | — | (9) | (3) | — | — | — | — |
| 2027 | — | — | (2) | — | — | — | — | — |
(1)
Physical transactions represent commodity transactions where we will take or make delivery of either electricity or natural gas; financial transactions represent derivative instruments with delivery of cash in the amount of the benefit or cost but with no physical delivery of the commodity, such as futures, swap derivatives, options, or forward contracts.
The above electric and natural gas derivative contracts will be included in either power supply costs or natural gas supply costs during the period they are delivered and will be included in deferral and recovery mechanisms (ERM, PCA, and PGAs), or in the general rate case process, and are expected to eventually be collected through retail rates from customers.
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