AVISTA CORP

Refer to the 2024 Form 10-K for disclosure of risk factors that could have a significant impact on our results of operations, financial condition or cash flows and could cause actual results or outcomes to differ materially from those discussed in our reports filed with the SEC (including this Quarterly Report on Form 10-Q), and elsewhere. These risk factors have not materially changed from the disclosures provided in the 2024 Form 10-K, except for the following:

Problems with the transition, design or implementation of our new enterprise resource planning system could interfere with our business and operations, and adversely affect our financial condition. We are in the process of planning for the implementation of a new enterprise resource planning system, which will take multiple years to complete. The system will be designed to accurately maintain our financial records, enhance operational functionality, and provide timely information to our management team related to business operations. The implementation will require significant financial and personnel resources. There are transitional risks associated with the implementation, which may include loss of data, difficulty compiling data for external reporting requirements, costs increasing throughout the project, or other challenges in our business operations. Difficulties faced during the transition could have a material adverse effect on our business, financial condition, and results of operations.

Due to recent legislation and changes in public sentiment, we are providing the following enhanced discussion of risks inherent in our investments: As discussed in Note 11 of the Notes to Condensed Consolidated Financial Statements under “Equity Investments” and in Management’s Discussion and Analysis of Financial Condition and Results of Operations under “Executive Overview – Overall Results” and “Results of Operations – Other Businesses”, the fair values of our respective equity investments fluctuate from period to period, and such changes in fair value directly affect our net income. While we make these investments after prudent analysis and with the expectation of eventual financial gains, there is no assurance that these investments will ultimately be successful. However, it is likely that the value of these investments will continue to fluctuate as the businesses continue to mature, causing corresponding changes in our net income. In addition, the risks faced by these businesses differ from the risks faced by our utility operations.