AVISTA CORP
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
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
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Results of Operations - Avista Utilities
Resource Optimization
We engage in resource optimization, which involves the selection from available energy resources to serve our load obligations and the use of these resources to capture economic value through wholesale market transactions, which is ultimately intended to lower net power and natural gas supply costs. Our resource optimization transactions can take the form of physical sales and purchases of electric capacity and energy and fuel for electric generation, purchases and sales of natural gas to optimize use of pipeline and storage capacity, as well as financial derivative contracts related to capacity, energy, fuel and fuel transportation. See our 2024 Form 10-K for further discussion of our optimization activities.
We typically enter into multiple transactions simultaneously to capture value. Even though these transactions are considered together when determining the net impact, they are recorded in separate items within components of utility operating revenue and resource costs and can cause fluctuations in each item. Gains and losses on financial derivative contracts are included in certain line items below (such as wholesale sales and purchases of power and natural gas, sales of fuel, and other fuel costs). The ERM, PCA and PGAs are based on net supply costs and consider all transactions related to resource procurement and optimization (both physical and financial).
Three months ended September 30, 2025 compared to the three months ended September 30, 2024
Customers
The following table presents Avista Utilities' average number of electric and natural gas retail customers for the three months ended September 30, 2025 and 2024:
| Electric Customers | Natural Gas Customers | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Residential | 376,511 | 371,427 | 345,621 | 343,101 |
| Commercial | 45,985 | 45,564 | 37,414 | 37,215 |
| Interruptible | — | — | 51 | 51 |
| Industrial | 1,160 | 1,168 | 183 | 184 |
| Public street and highway lighting | 756 | 740 | — | — |
| Total retail customers | 424,412 | 418,899 | 383,269 | 380,551 |
Utility Operating Revenues
The following graphs present Avista Utilities' electric operating revenues and megawatt-hour (MWh) sales for the three months ended September 30, 2025 and 2024 (dollars in millions and MWhs in thousands):
(1)
This balance includes public street and highway lighting, which is considered part of retail electric revenues.
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.
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 three months ended September 30 (dollars in millions):
| Electric Decoupling Revenues | ||
|---|---|---|
| 2025 | 2024 | |
| Current year decoupling deferrals (a) | $(11) | $(2) |
| Amortization of prior year decoupling deferrals (b) | — | 4 |
| Total electric decoupling revenue | $(11) | $2 |
(a)
Positive amounts are increases in decoupling revenue in the current year and will be surcharged to customers in future years. Negative amounts are decreases in decoupling revenue in the current year and will be rebated to customers in future years.
(b)
Positive amounts are increases in decoupling revenue in the current year and are related to the amortization of rebate balances that resulted in prior years and are being refunded to customers (causing a corresponding decrease in retail revenue from customers) in the current year. Negative amounts are decreases in decoupling revenue in the current year and are related to the amortization of surcharge balances that resulted in prior years and are being surcharged to customers (causing a corresponding increase in retail revenue from customers) in the current year.
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:
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).
o
Retail rates increased mainly due to the effects of our general rate cases.
o
Retail sales volumes increased primarily due to customer growth, as well as increased customer usage. Residential use per customer increased 6 percent, and commercial use per customer increased 2 percent.
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.
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.
A $5 million decrease in other electric revenues primarily resulting from decreased renewable energy credit revenues and transmission revenues.
The following graphs present Avista Utilities' natural gas operating revenues and therms delivered for the three months ended September 30, 2025 and 2024 (dollars in millions and therms in thousands):
(1)
This balance includes interruptible and industrial revenues, which are considered part of retail natural gas revenues.
Total natural gas operating revenues in the graph above include intracompany sales of $3 million and $6 million for the three months ended September 30, 2025 and 2024, respectively.
The following table presents the current year decoupling deferrals and the amortization of prior year decoupling deferrals reflected in utility natural gas operating revenues for the three months ended September 30 (dollars in millions):
| Natural Gas Decoupling Revenues | ||
|---|---|---|
| 2025 | 2024 | |
| Current year decoupling deferrals (a) | $3 | $2 |
| Amortization of prior year decoupling deferrals (b) | — | — |
| Total natural gas decoupling revenue | $3 | $2 |
(a)
Positive amounts are increases in decoupling revenue in the current year and will be surcharged to customers in future years. Negative amounts are decreases in decoupling revenue in the current year and will be rebated to customers in future years.
(b)
Positive amounts are increases in decoupling revenue in the current year and are related to the amortization of rebate balances that resulted in prior years and are being refunded to customers (causing a corresponding decrease in retail revenue from customers) in the current year. Negative amounts are decreases in decoupling revenue in the current year and are related to the amortization of surcharge balances that resulted in prior years and are being surcharged to customers (causing a corresponding increase in retail revenue from customers) in the current year.
Total natural gas revenues decreased $5 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:
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).
o
Retail rates decreased mainly due to PGA rate decreases (which do not impact utility margin), partially offset by the effects of our general rate cases and net rate increases associated with the CCA.
o
The decrease in sales volumes was primarily due to a 6 percent decrease in residential usage and an 8 percent decrease in commercial usage. Retail natural gas loads and changes in customer usage during the third quarter are typically not significant to the full year.
A $4 million decrease in wholesale natural gas revenues due to a decrease in volumes (decreased revenues $6 million), partially offset by an increase in prices (increased revenues $2 million).
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.
Utility Resource Costs
The following graph presents Avista Utilities' electric resource costs for the three months ended September 30, 2025 and 2024 (dollars in millions):
Total electric resource costs in the graph above include intracompany resource costs of $3 million and $6 million for the three months ended September 30, 2025 and 2024, respectively.
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:
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).
A $3 million increase in fuel for generation. This was due to increases in fuel prices compared to the third quarter of 2024.
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).
The following graph presents Avista Utilities' natural gas resource costs for the three months ended September 30, 2025 and 2024 (dollars in millions):
Total natural gas resource costs in the graph above include intracompany resource costs of $1 million and $0 million for the three months ended September 30, 2025 and 2024, respectively.
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:
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.
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.
Utility Margin
The following table reconciles Avista Utilities' operating revenues, as presented in "Note 15 of the Notes to Condensed Consolidated Financial Statements" to the Non-GAAP financial measure utility margin for the three months ended September 30, 2025 and 2024 (dollars in millions):
| Electric | Natural Gas | Intracompany | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Operating revenues | $329 | $316 | $69 | $74 | $(4) | $(6) | $394 | $384 |
| Resource costs | 88 | 107 | 31 | 40 | (4) | (6) | 115 | 141 |
| Utility margin | $241 | $209 | $38 | $34 | $— | $— | $279 | $243 |
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.
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.
Intracompany revenues and resource costs represent purchases and sales of natural gas between our natural gas distribution operations and our electric generation operations (as fuel for our generation plants). These transactions are eliminated in the presentation of total results for Avista Utilities and in the condensed consolidated financial statements but are included in the separate results for electric and natural gas presented above.
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024
Utility Operating Revenues
Customers
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:
| Electric Customers | Natural Gas Customers | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Residential | 375,644 | 370,220 | 345,673 | 342,805 |
| Commercial | 45,894 | 45,803 | 37,446 | 37,348 |
| Interruptible | — | — | 51 | 51 |
| Industrial | 1,161 | 1,177 | 183 | 184 |
| Public street and highway lighting | 759 | 735 | — | — |
| Total retail customers | 423,458 | 417,935 | 383,353 | 380,388 |
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):
(1)
This balance includes public street and highway lighting, which is considered part of retail electric revenues.
Total electric operating revenues in the graph above include intracompany sales of $2 million and $4 million for the nine months ended September 30, 2025 and 2024, respectively.
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):
| Electric Decoupling Revenues | ||
|---|---|---|
| 2025 | 2024 | |
| Current year decoupling deferrals (a) | $(15) | $1 |
| Amortization of prior year decoupling deferrals (b) | — | 17 |
| Total electric decoupling revenue | $(15) | $18 |
(a)
Positive amounts are increases in decoupling revenue in the current year due to lower customer usage and will be surcharged to customers in future years. Negative amounts are decreases in decoupling revenue in the current year due to higher customer usage and will be rebated to customers in future years.
(b)
Positive amounts are increases in decoupling revenue in the current year and are related to the amortization of rebate balances that resulted in prior years due to higher customer usage and are being refunded to customers (causing a corresponding decrease in retail revenue from customers) in the current year. Negative amounts are decreases in decoupling revenue in the current year and are related to the amortization of surcharge balances that resulted in prior years due to lower customer usage and are being surcharged to customers (causing a corresponding increase in retail revenue from customers) in the current year.
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:
A $104 million increase in retail electric revenue due to an increase in retail rates (increased revenues by $64 million), and an increase in MWhs sold (increased revenues by $40 million).
o
Retail rates increased mainly due to the effects of our general rate cases.
o
Retail sales volumes increased primarily due to customer growth, as well as increased customer usage. Residential and commercial use per customer increased 3 percent compared to 2024.
A $37 million decrease in wholesale electric revenues due to a decrease in sales prices (decreased revenues $50 million), partially offset by an increase in sales volumes (increased revenues $13 million). The change in volumes was due to increased opportunities in the first half of the year to optimize our generation assets based on market conditions.
A $33 million decrease in electric decoupling revenue, primarily due to decreased amortizations of prior year rebate balances, as well as current year rebate deferrals due to higher customer usage compared to surcharges deferred in 2024.
A $13 million decrease in other electric revenues primarily resulting from decreased renewable energy credit revenues and transmission revenues.
The following graphs present Avista Utilities' natural gas operating revenues and therms delivered for the nine months ended September 30, 2025 and 2024 (dollars in millions and therms in thousands):
(1)
This balance includes interruptible and industrial revenues, which are considered part of retail natural gas revenues.
Total natural gas operating revenues in the graph above include intracompany sales of $7 million and $11 million for the nine months ended September 30, 2025 and 2024, respectively.
The following table presents the current year decoupling deferrals and the amortization of prior year decoupling deferrals reflected in utility natural gas operating revenues for the nine months ended September 30 (dollars in millions):
| Natural Gas Decoupling Revenues | ||
|---|---|---|
| 2025 | 2024 | |
| Current year decoupling deferrals (a) | $13 | $7 |
| Amortization of prior year decoupling deferrals (b) | (2) | (2) |
| Total natural gas decoupling revenue | $11 | $5 |
(a)
Positive amounts are increases in decoupling revenue in the current year due to lower customer usage and will be surcharged to customers in future years. Negative amounts are decreases in decoupling revenue in the current year due to higher customer usage and will be rebated to customers in future years.
(b)
Positive amounts are increases in decoupling revenue in the current year and are related to the amortization of rebate balances that resulted in prior years due to higher customer usage and are being refunded to customers (causing a corresponding decrease in retail revenue from customers) in the current year. Negative amounts are decreases in decoupling revenue in the current year and are related to the amortization of surcharge balances that resulted in prior years due to lower customer usage and are being surcharged to customers (causing a corresponding increase in retail revenue from customers) in the current year.
Total natural gas revenues decreased $4 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:
A $28 million decrease in natural gas retail revenues (including industrial, which is included in other) due to a decrease in retail rates (decreased revenues $30 million), partially offset by increased sales volumes (increased revenues $2 million). Retail rates decreased mainly due to PGA rate decreases (which do not impact utility margin), partially offset by the effects of our general rate cases and net rate increases associated with the CCA.
A $9 million decrease in wholesale natural gas revenues due to a decrease in volumes (decreased revenues $8 million) and a decrease in prices (decreased revenues $1 million).
A $6 million increase in natural gas decoupling revenues primarily due to increased surcharge deferrals in the current year.
A $27 million increase in other gas revenues primarily due to the amortization of previously deferred revenues associated with the sale of CCA emissions credits. We amortize the deferred revenues as they are passed to customers through decreases in retail rates. The increase in other revenues was offset by decreased retail rates, resulting in no impact to utility margin.
Utility Resource Costs
The following graph presents Avista Utilities' electric resource costs for the nine months ended September 30, 2025 and 2024 (dollars in millions):
Total electric resource costs in the graph above include intracompany resource costs of $7 million and $11 million for the nine months ended September 30, 2025 and 2024, respectively.
Total electric resource costs decreased $59 million for the first three quarters of 2025 as compared to the first three quarters of 2024. The changes that occurred during the period were as follows:
A $16 million decrease in power purchased due to a decrease in wholesale prices (decreased costs $45 million), partially offset by an increase in the volume of power purchases (increased costs $29 million). Prices during the first quarter of 2024 were elevated due to extreme cold temperatures in our region that created capacity constraints.
A $45 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).
The following graph presents Avista Utilities' natural gas resource costs for the nine months ended September 30, 2025 and 2024 (dollars in millions):
Total natural gas resource costs in the graph above include intracompany resource costs of $2 million and $4 million for the nine months ended September 30, 2025 and 2024, respectively.
Total natural gas resource costs decreased $23 million for the first three quarters of 2025 as compared to the first three quarters of 2024 due to the following:
A $35 million decrease in natural gas purchased primarily due to a decrease in the price of natural gas.
A $12 million increase in other costs primarily related to the amortization of costs associated with the CCA that were recovered from customers, resulting in no impact to utility margin. This was partially offset by a decrease in amortizations of previously deferred costs under our PGAs.
Utility Margin
The following table reconciles Avista Utilities' operating revenues, as presented in "Note 15 of the Notes to Condensed Consolidated Financial Statements" to the Non-GAAP financial measure utility margin for the nine months ended September 30, 2025 and 2024 (dollars in millions):
| Electric | Natural Gas | Intracompany | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Operating revenues | $1,000 | $973 | $407 | $411 | $(9) | $(15) | $1,398 | $1,369 |
| Resource costs | 306 | 365 | 203 | 226 | (9) | (15) | 500 | 576 |
| Utility margin | $694 | $608 | $204 | $185 | $— | $— | $898 | $793 |
Electric utility margin increased $86 million primarily due to the effects of general rate cases, customer growth, and non-decoupled load growth. Natural gas utility margin increased $19 million, primarily due to the effects of general rate cases.
In the first three quarters of 2025 we had a pre-tax expense of $13 million under the ERM in Washington, compared to a pre-tax expense of $8 million in the first three quarters of 2024.
Intracompany revenues and resource costs represent purchases and sales of natural gas between our natural gas distribution operations and our electric generation operations (as fuel for our generation plants). These transactions are eliminated in the presentation of total results for Avista Utilities and in the condensed consolidated financial statements but are included in the separate results for electric and natural gas presented above.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.