AVISTA CORP
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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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, 2026 · Filed Nov 4, 2026
AVA$40.23-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0001193125-26-329083
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsBusiness SegmentsExecutive OverviewRegulatory MattersResults of Operations - OverallResults of Operations - Avista UtilitiesResults of Operations - Alaska Electric Light and Power CompanyResults of Operations - Other BusinessesCritical Accounting Policies and EstimatesOverall LiquidityReview of Condensed Consolidated Cash Flow StatementCapital ResourcesCapital ExpendituresPension PlanEnvironmental Issues and ContingenciesEnterprise Risk ManagementCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001193125-26-445765
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsBusiness SegmentsExecutive OverviewRegulatory MattersResults of Operations - OverallResults of Operations - Avista UtilitiesResults of Operations - Alaska Electric Light and Power CompanyResults of Operations - Other BusinessesCritical Accounting Policies and EstimatesOverall LiquidityReview of Condensed Consolidated Cash Flow StatementCapital ResourcesCapital ExpendituresPension PlanEnvironmental Issues and ContingenciesEnterprise Risk ManagementThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 250 previous paragraphs and 271 current paragraphs.
148 unchanged; 76 reworded; 46 added; 21 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (46)
Current report
On August 1, 2026, multiple fires started in the Spokane, Washington area, within our service territory, forming the Spokane Complex Fires. We are confident that our facilities were not involved in starting these fires.
Current report
Electric and natural gas operating costs associated with the fires were less than $3 million and we will not seek incremental recovery for those items. The fires caused damage to Company infrastructure, and costs associated with rebuilding this infrastructure are expected to be included in our future capital expenditure plans. Costs associated with vegetation management from the aftermath of the wildfires will flow through the wildfire expense balancing deferral and recovery mechanism.
Current report
A number of other wildfires have occurred within our service territory in 2026, impacting our operations. In June 2026, two fires ignited near our facilities. One fire damaged a small storage facility near Kellogg, Idaho. No structures were impacted by the other fire, near Coulee City, Washington. In the case of the fire near Kellogg, Idaho, the Idaho Department of Lands issued an investigative report asserting the fire originated with the Company’s facilities. The Company believes that it was substantially in compliance with its approved Wildfire Mitigation Plan, triggering protection under the Idaho Standard of Care Act. We believe any potential losses related to these events, individually and in the aggregate, would not be material.
Current report
In September 2026, we paused the processing of large data center applications. The pause applies to projects that require significant new transmission or generation infrastructure. The pause is expected to last at least 12 months while statutory guidelines are debated and established. Within our service territory, certain local government agencies have instituted moratoriums or pauses restricting data centers. During this time, we will be a participant with others in community, local government and state-level discussions to help shape the policies and the regulatory framework that may guide future development for large data centers.
Current report
Other utility operating expenses decreased due primarily to the 2026 time study that was completed, resulting in the allocation of certain employee compensation to Utility Property which was previously included in other operating expenses. See “Note 1 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the change in accounting estimate.
Current report
Utility depreciation and amortization increased primarily due to additions to utility plant, partially offset by decreases due to our transfer of Colstrip.
Current report
Nine months ended September 30, 2026 compared to the nine months ended September 30, 2025
Current report
A $3 million decrease in sales of fuel as part of thermal generation resource optimization activities.
Current report
A $13 million increase in electric decoupling revenue primarily due to current year usage being relatively close to historic norms, compared to higher than normal usage, resulting in rebates to customers in the third quarter of 2025.
Current report
A $12 million increase in other electric revenues, primarily associated with the amortization of refunds made to customers for Colstrip related costs, offsetting the decrease in retail rates discussed above, such that there is no impact on net income, as well as increased transmission revenues compared to 2025.
Current report
Total natural gas operating revenues in the graph above include intracompany sales of $4 million and $3 million for the three months ended September 30, 2026 and 2025.
Current report
A $5 million increase in natural gas retail revenues (including industrial, which is included in other) due to an increase in sales volumes. Sales volumes increased due to higher customer usage when compared to the third quarter of 2025.
Current report
A $6 million decrease in natural gas decoupling revenues due to increased customer usage resulting in current year rebate deferrals, compared to surcharge deferrals in the third quarter of 2025.
Current report
Total electric resource costs in the graph above include intracompany resource costs of $4 million and $3 million for the three months ended September 30, 2026 and 2025.
Current report
Total electric resource costs increased $15 million for the third quarter of 2026 as compared to the third quarter of 2025. The primary changes that occurred during the period were as follows:
Current report
An $11 million decrease in fuel for generation, primarily due to the removal of Colstrip from our generation portfolio.
Current report
Total natural gas resource costs increased $1 million for the third quarter of 2026 as compared to the third quarter of 2025 due the following:
Current report
A $3 million increase in natural gas purchased due to an increase in natural gas prices (increased costs $4 million), partially offset by a decrease in volumes purchased (decreased costs $1 million).
Current report
A $2 million decrease in other costs primarily due to a decrease in net amortizations and deferrals of natural gas costs under our PGA mechanisms, partially offset by increased amortization of costs associated with the CCA.
Current report
Nine months ended September 30, 2026 compared to the nine months ended September 30, 2025
Current report
Total electric operating revenues in the graph above include intracompany sales of $2 million for both the nine months ended September 30, 2026 and 2025.
Current report
A $7 million decrease in sales of fuel as part of our thermal generation resource optimization activities.
Current report
A $15 million increase in other electric revenues, primarily associated with the amortization of refunds made to customers for Colstrip related costs, offsetting the decrease in retail rates discussed above, such that there is no impact on net income.
Current report
Total natural gas operating revenues in the graph above include intracompany sales of $5 million and $7 million for the nine months ended September 30, 2026 and 2025, respectively.
Current report
Total natural gas revenues decreased $32 million for the first three quarters of 2026 as compared to the first three quarters of 2025. The primary changes that occurred during the period were as follows:
Current report
The following graph presents Avista Utilities' electric resource costs for the nine months ended September 30, 2026 and 2025 (dollars in millions):
Current report
Total electric resource costs in the graph above include intracompany resource costs of $5 million and $7 million for the nine months ended September 30, 2026 and 2025, respectively.
Current report
Total electric resource costs decreased $2 million for the first three quarters of 2026 as compared to the first three quarters of 2025. The primary changes that occurred during the period were as follows:
Current report
The following graph presents Avista Utilities' natural gas resource costs for the nine months ended September 30, 2026 and 2025 (dollars in millions):
Current report
Total natural gas resource costs in the graph above include intracompany resource costs of $2 million for both the nine months ended September 30, 2026 and 2025.
Current report
In 2027, we expect to issue approximately $220 million of long-term debt and up to $110 million of common stock.
Current report
EPA Endangerment Finding Revocation and Rescission of Carbon Pollution Standards
Current report
In February 2026, the EPA formally revoked its 2009 Endangerment Finding, which was a landmark determination that six key greenhouse gases, including carbon dioxide and methane, threaten the public health and welfare of current and future generations. The Endangerment Finding provided the scientific and legal foundation for federal regulation of those identified greenhouse gases, including regulation of the release of greenhouse gases from power plants and other significant emissions sources.
Current report
In September 2026, the EPA issued a final rule, repealing most provisions of the 2024 Carbon Pollution Standards for greenhouse gas emissions from fossil fuel-fired electric generating units, eliminating most carbon capture and storage-based requirements and emissions guidelines established in 2024.
Current report
The EPA’s decision and rulemaking have been the subject of future legal challenges, the outcome of which cannot be predicted. The precise extent of that deregulation, as well as any potential impact on the Company’s operations, cannot be determined at this time.
Current report
Washington Legislation and Regulatory Actions
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (21)
Previous report
A number of wildfires have occurred within our service territory in 2026, impacting our operations. While the causes of some fires remain under investigation, virtually all have been attributed to human activity or lightning. Two fires ignited near our facilities but have since been fully contained. One fire damaged a small storage facility. No structures were impacted by the other fire. We do not believe either of these ignitions resulted from the improper operation or maintenance of our facilities. In response to an increased wildfire risk driven primarily by high winds and drier-than-normal conditions, we have proactively implemented enhanced system protections and public safety power shutoffs. We continue to monitor conditions closely and respond as needed to mitigate this elevated risk.
Previous report
Our hydroelectric generation year-to-date has been above normal. The amount of hydroelectric generation is affected not only by snowpack levels but also by prevailing temperatures (which affect the timing and speed of run-off) and the volume, timing and form of precipitation. On balance, we expect hydroelectric generation for the entire year will be above normal. While our current hydroelectric forecast shows above normal levels of generation for the full year, whether actual results are above or below normal, there would be no material change to our net income, based upon our forecast surcharge position in the 90 percent customer, 10 percent company sharing band of the ERM.
Previous report
We are planning to implement an ERP system, replacing certain existing technology tools currently in use. 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. We expect the ERP system to be implemented in 2028, with capital expenditures of approximately $130 million.
Previous report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
Previous report
Total natural gas operating revenues in the graph above include intracompany sales of $0 million and $1 million for the three months ended June 30, 2026 and 2025.
Previous report
Total electric resource costs in the graph above include intracompany resource costs of $0 million and $1 million for the three months ended June 30, 2026 and 2025.
Previous report
Total electric resource costs decreased $3 million for the second quarter of 2026 as compared to the second quarter of 2025. The primary changes that occurred during the period were as follows:
Previous report
Total natural gas resource costs decreased $2 million for the second quarter of 2026 as compared to the second quarter of 2025 due to a $2 million decrease in natural gas purchased from a decrease in volumes, consistent with a decrease in retail and wholesale sales volumes.
Previous report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
Previous report
Total electric operating revenues in the graph above include intracompany sales of $1 million for both the six months ended June 30, 2026 and 2025.
Previous report
Total natural gas operating revenues in the graph above include intracompany sales of $1 million and $4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
Total natural gas revenues decreased $34 million for the first half of 2026 as compared to the first half of 2025. The primary changes that occurred during the period were as follows:
Previous report
The following graph presents Avista Utilities' electric resource costs for the six months ended June 30, 2026 and 2025 (dollars in millions):
Previous report
Total electric resource costs in the graph above include intracompany resource costs of $1 million and $4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
Total electric resource costs decreased $17 million for the first half of 2026 as compared to the first half of 2025. The primary changes that occurred during the period were as follows:
Previous report
The following graph presents Avista Utilities' natural gas resource costs for the six months ended June 30, 2026 and 2025 (dollars in millions):
Previous report
Total natural gas resource costs in the graph above include intracompany resource costs of $1 million for both the six months ended June 30, 2026 and 2025.
Previous report
As of June 30, 2026, there was $296 million outstanding under the committed line of credit; however, $226 million was classified as short-term borrowings and $70 million was classified as long-term on the Condensed Consolidated Balance Sheet due to the Company's intention to refinance such amount on a long-term basis. The amount classified as long-term debt will be refinanced through the issuance and sale of first mortgage bonds in August 2026, pursuant to a bond purchase agreement entered into in May 2026.
Reworded paragraphs (76)
Previous wording
Our business segments have not changed during the six months ended June 30, 2026. See the 2025 Form 10-K as well as “Note 16 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, 2026. See the 2025 Form 10-K as well as “Note 16 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, 2026 increased compared to the three and six months ended June 30, 2025, primarily due to net investment gains at our other businesses, compared to net investment losses in the respective periods of 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the gain recorded in the second quarter of 2026, as well as expected gains and losses during the remainder of 2026.
Current wording
Net income for the three and nine months ended September 30, 2026 increased compared to the three and nine months ended September 30, 2025, primarily due to net investment gains at our other businesses. For the three months ended September 30, 2026, equity method earnings were $23 million, compared to $1 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, equity method earnings were $46 million, compared to losses of $10 million for the nine months ended September 30, 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the gains recorded in 2026, as well as expected loss during the remainder of 2026.
Previous wording
The effects of our general rate cases also increased net income in 2026.
Current wording
The effects of our general rate cases at Avista Utilities also increased net income in 2026.
Previous wording
When comparing results from the first half of 2026 to the first half of 2025, the transfer of our ownership of Colstrip (effective January 1, 2026) has resulted in fluctuations in multiple line items on the income statement, which ultimately net to an immaterial impact on net income. The removal of Colstrip from our generation portfolio resulted in an increase in authorized power supply cost and increases in both electric utility revenues and electric resource costs (resulting in no impact on net income). In addition, other operating costs and depreciation expense have decreased, with a corresponding decrease in electric utility revenues associated with recovery of these costs.
Current wording
When comparing results from the three quarters of 2026 to the same period of 2025, the transfer of our ownership of Colstrip (effective January 1, 2026) has resulted in fluctuations in multiple line items on the income statement, which ultimately net to an immaterial impact on net income. The removal of Colstrip from our generation portfolio resulted in an increase in authorized power supply cost and increases in both electric utility revenues and electric resource costs (resulting in no impact on net income). In addition, other operating costs and depreciation expense have decreased, with a corresponding decrease in electric utility revenues associated with recovery of these costs.
Previous wording
We requested an overall rate of return beginning in 2027 of 7.5 percent, with a 48.5 common equity ratio and a 10.2 percent return on equity. We requested an increase to the overall rate of return in 2029 to 7.67 percent, with a 48.5 common equity ratio and 10.5 percent return on equity.
Current wording
We requested an ROR beginning in 2027 of 7.5 percent, with a 48.5 common equity ratio and a 10.2 percent ROE. We requested an increase to the ROR in 2029 to 7.67 percent, with a 48.5 common equity ratio and 10.5 percent ROE.
Previous wording
In the MYRP, we propose certain changes to the calculation of authorized baseline power supply costs. These changes are designed to address the changing market dynamics which have led to significant volatility in actual power supply costs. The MYRP provides updates to our baseline power supply cost for rate years one and two; as required by Washington law, baseline power supply costs for Rate Years 3 and 4 will be established in later filings and as such are not included in the additional revenue requirements for those years shown above. In addition, we are proposing changes to the timing for recovery of costs deferred under the ERM.
Current wording
In the MYRP, we propose certain changes to the calculation of authorized baseline power supply costs. These changes are designed to address the changing market dynamics which have led to significant volatility in actual power supply costs. The MYRP provides updates to our baseline power supply cost for rate years one and two; as required by Washington law, baseline power supply costs for
Previous wording
The WUTC has up to eleven months to review the general rate case filings and issue a decision. The evidentiary hearing is scheduled for September 2026.
Current wording
The MYRP is continuing through the normal regulatory process, which has involved several rounds of testimony and an evidentiary hearing, followed by post-hearing briefs filed by the Company, the staff of the WUTC and various intervenors. While the Company continues to support the MYRP as proposed, there is significant disagreement among the other parties. The WUTC has up to eleven months to review general rate case filings and issue a decision, which we expect to be issued in December 2026.
Previous wording
In July 2025, the Governor of Oregon signed House Bill 3179 into law 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 OPUC 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 multi-year 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 the timing of future rate case filings.
Current wording
In July 2025, the Governor of Oregon signed House Bill 3179 into law 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 OPUC 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 multi-year rate plan for rate revisions where a company’s return on equity is reviewed. Such rate plans, as approved by the OPUC, must be five years in length. Rulemakings to institute these provisions started in September 2025 and will continue into 2027. In September 2026, the OPUC approved a rule that calls for Avista Corp. to file its first five-year rate plan no earlier than September 1, 2027, and no later than November 30, 2027.
Previous wording
In May 2026, AEL&P filed an electric general rate case with the Regulatory Commission of Alaska (RCA). AEL&P's request for an interim base rate increase of 12.5 percent (designed to increase electric revenues by $5 million), was approved and took effect in June 2026. AEL&P is seeking a permanent base rate increase of an additional 12.6 percent (designed to increase electric revenues by $5 million), which, if approved, could take effect in August 2027. This represents a combined total rate increase of 25.1 percent (designed to increase electric revenues by $10.0 million). The proposed revenue increase request is based on a 13.2 percent ROE with a common equity ratio of 58.33 percent and a ROR of 9.75 percent.
Current wording
In May 2026, AEL&P filed an electric general rate case with the Regulatory Commission of Alaska (RCA). AEL&P's request for an interim base rate increase of 12.5 percent (designed to increase electric revenues by $5 million), was approved and took effect in June 2026. AEL&P is seeking a permanent base rate increase of an additional 12.6 percent (designed to increase electric revenues by $5 million), which, if approved, could take effect in August 2027. This represents a combined total rate increase of 25.1 percent (designed to increase electric revenues by $10.0 million). The proposed revenue increase request is based on a 13.2 percent ROE with a common equity ratio of 58.33 percent and an ROR of 9.75 percent.
Previous wording
The following graph shows the total change in net income for the second quarter of 2026 compared to the second quarter of 2025, 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 2026 compared to the third quarter of 2025, as well as the factors that caused such change (dollars in millions):
Previous wording
Electric Utility revenues increased due to increases in retail rates associated with our general rate case, which were partially offset by removing the recovery of Colstrip related costs. This increase to revenues was largely offset by decreased wholesale revenues and decreases in volumes sold. The decrease in volumes sold is due to the departure of a large industrial customer in April 2026. Natural gas revenues increased due to rate increases, largely offset by decreases in wholesale revenues and decoupling revenues.
Current wording
Electric utility revenues increased due to increases in retail rates associated with our general rate case, which were partially offset by removing the recovery of Colstrip related costs. This increase to revenues was largely offset by decreased wholesale revenues and decreases in volumes sold. The decrease in volumes sold is due to the departure of a large industrial customer in April 2026. Natural gas revenues increased primarily due increased retail volumes, largely offset by decreases in decoupling revenues.
Previous wording
Electric utility resource costs decreased primarily due to decreased fuel for generation costs partially due to the removal of Colstrip from our generation portfolio. This was partially offset by increased purchased power volumes and wholesale prices, as well as increased costs under the ERM. Natural gas utility resource costs decreased due to decreases in volumes of natural gas purchased.
Current wording
Electric utility resource costs increased primarily due to increased authorized power supply costs resulting from our general rate cases and increased purchased power volumes and wholesale prices, partially offset by decreased fuel for generation costs primarily due to the removal of Colstrip from our generation portfolio. Natural gas utility resource costs increased due to increases in natural gas prices.
Previous wording
Increased equity method earnings were primarily the result of underlying investment appreciation recognized in the second quarter of 2026, compared to losses recognized in the second quarter of 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the gain recorded in the second quarter of 2026.
Current wording
Increased equity method earnings were primarily the result of underlying investment appreciation recognized in the third quarter of 2026 as compared to the third quarter of 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the earnings recorded in the third quarter of 2026.
Previous wording
The following graph shows the total change in net income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, 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, 2026 compared to the nine months ended September 30, 2025, as well as the factors that caused such change (dollars in millions):
Previous wording
Electric utility resource costs decreased primarily due to decreased fuel for generation costs partially due to the removal of Colstrip from our generation portfolio. These decreases were partially offset by a decrease in deferrals under the ERM. Natural gas utility resource costs decreased due to decreases in the amortization of costs associated with the CCA and net deferrals and amortizations of costs under PGAs, as well as a decrease in volumes of natural gas purchased.
Current wording
Electric utility resource costs decreased primarily due to decreased fuel for generation costs partially due to the removal of Colstrip from our generation portfolio, as well the Coyote Springs 2 facility being offline for major maintenance in 2026. These decreases were partially offset by an increase in authorized power supply costs resulting from our general rate cases. Natural gas utility resource costs decreased due to decreases in the amortization of costs associated with the CCA and net deferrals and amortizations of costs under PGAs, as well as a decrease in volumes of natural gas purchased, partially offset by an increase in purchase price of natural gas.
Previous wording
Other utility operating expenses increased due primarily to increased employee salaries and benefit costs, partially offset with decreases from removing Colstrip related expenses.
Current wording
Other utility operating expenses increased due primarily to increased employee salaries and benefit costs. The increases were partially offset with decreases from removing Colstrip related expenses, as well as the completion of the 2026 time study, resulting in the allocation of certain employee compensation to Utility Property which was previously included in other operating expenses. See “Note 1 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the change in accounting estimate.
Previous wording
Utility depreciation and amortization decreased primarily due to our transfer of Colstrip.
Current wording
Utility depreciation and amortization decreased primarily due to our transfer of Colstrip, partially offset by increases due to additions to utility plant.
Previous wording
Increased equity method earnings were primarily the result of underlying investment appreciation recognized in the first half of 2026, compared to losses recognized in the first half of 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the gain recorded in the second quarter of 2026.
Current wording
Increased equity method earnings were primarily the result of underlying investment appreciation recognized in 2026, compared to losses recognized in 2025. See “Note 5 of the Notes to Condensed Consolidated Financial Statements” for additional information regarding the earnings recorded in 2026.
Previous wording
Total electric revenues did not change materially for the second quarter of 2026 as compared to the second quarter of 2025. The primary fluctuations that occurred during the period were as follows:
Current wording
Total electric revenues increased $15 million for the third quarter of 2026 as compared to the third quarter of 2025. The primary fluctuations that occurred during the period were as follows:
Previous wording
A $5 million increase in retail electric revenue due to an increase in retail rates (increased revenues by $25 million) offset by a decrease in MWhs sold (decreased revenues by $20 million).
Current wording
A $4 million increase in retail electric revenue due to an increase in retail rates (increased revenues by $25 million) offset by a decrease in MWhs sold (decreased revenues by $21 million).
Previous wording
Retail rates increased mainly due to the effects of our general rate cases, including base rate increases associated with higher authorized power supply expenses resulting from removing Colstrip from our generation portfolio. These increases to base rates were partially offset by the removal of revenues related to recovery of Colstrip related costs other than power supply costs.
Current wording
Retail rates increased mainly due to the effects of our general rate cases, including base rate increases associated with higher authorized power supply expenses resulting from removing Colstrip from our generation portfolio. These increases to base rates were partially offset by the removal of revenues related to recovery of Colstrip related costs other than power supply costs, as well as refunds made to customers for Colstrip related investments.
Previous wording
Retail sales volumes decreased due to a 21 percent decrease in industrial electric sales volumes, partially due to the departure of a large industrial customer in April 2026. Additionally, milder weather reduced customer usage. Residential and commercial use per customer decreased 5 percent and 3 percent, respectively.
Current wording
Retail sales volumes decreased due to a 15 percent decrease in industrial electric sales volumes, primarily due to the departure of a large industrial customer in April 2026. Additionally, milder weather reduced customer usage. Residential and commercial use per customer decreased 7 percent and 5 percent, respectively.
Previous wording
An $8 million decrease in wholesale electric revenues due to a decrease in sales volumes (decreased revenues $4 million) and a decrease in sales prices (decreased revenues $4 million).
Current wording
A $9 million decrease in wholesale electric revenues due to a decrease in sales prices.
Previous wording
Total natural gas revenues did not change materially for the second quarter of 2026 as compared to the second quarter of 2025. The primary fluctuations that occurred during the period were as follows:
Current wording
Total natural gas revenues increased $2 million for the third quarter of 2026 as compared to the third quarter of 2025. The primary fluctuations that occurred during the period were as follows:
Previous wording
A $4 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 on to customers through decreases in retail rates. The increase in other revenues was offset by decreased retail revenues, resulting in no impact on net income.
Current wording
A $3 million increase in other gas revenues 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 on to customers through decreases in retail rates. The increase in other revenues was offset by decreased retail revenues, resulting in no impact on net income.
Previous wording
A $5 million increase in power purchased due to an increase in the volume of power purchases (increased costs $3 million) and an increase in wholesale prices (increased costs $2 million).
Current wording
A $4 million increase in power purchased due to an increase in the volume of power purchases (increased costs $3 million) and an increase in wholesale prices (increased costs $1 million).
Previous wording
A $9 million increase in other electric resource costs primarily related to a decrease in deferred costs under the ERM. The decrease in deferred costs was due to an increase in authorized power supply costs primarily due to the removal of Colstrip from our generation portfolio. There were also increased costs related to our customer assistance payment programs (low-income rate assistance and demand side management).
Current wording
A $24 million increase in other electric resource costs primarily related to an increase in authorized power supply costs (primarily due to the removal of Colstrip from our generation portfolio), which decreased costs deferred under the ERM. There were also increased costs related to our customer assistance payment programs (low-income rate assistance and demand side management).
Previous wording
In the second quarter of 2026, we had a pre-tax expense of $6 million under the ERM in Washington compared to a pre-tax expense of $1 million in the second quarter of 2025.
Current wording
In the third quarter of 2026, we had a pre-tax expense of $2 million under the ERM in Washington compared to a pre-tax expense of $4 million in the third quarter of 2025.
Previous wording
The following graphs present Avista Utilities' electric operating revenues and megawatt-hour (MWh) sales for the six months ended June 30, 2026 and 2025 (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, 2026 and 2025 (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 decreased $17 million for the first half of 2026 as compared to the first half of 2025. The primary changes that occurred during the period were as follows:
Current wording
Total electric revenues decreased $2 million for the first three quarters of 2026 as compared to the first three quarters of 2025. The primary changes that occurred during the period were as follows:
Previous wording
A $1 million decrease in retail electric revenue due to a decrease in MWhs sold (decreased revenues by $42 million), offset by an increase in retail rates (increased revenues by $41 million).
Current wording
A $3 million increase in retail electric revenue due to an increase in retail rates (increased revenues by $65 million), partially offset by a decrease in MWhs sold (decreased revenues by $62 million).
Previous wording
Retail sales volumes decreased due to a 12 percent decrease in industrial electric sales volumes, partially due to the departure of a large industrial customer in April 2026. Additionally, milder weather led to reduced customer usage. Residential and commercial use per customer decreased 8 percent and 4 percent, respectively. Heating degree days in Spokane were 87 percent of the historical average during the first half of 2026, while they were 94 percent of the historical average during the first half of 2025.
Current wording
Retail sales volumes decreased due to a 13 percent decrease in industrial electric sales volumes, partially due to the departure of a large industrial customer in April 2026. Additionally, milder weather led to reduced customer usage. Residential and commercial use per customer decreased 8 percent and 4 percent, respectively. Heating degree days in Spokane were 88 percent of the historical average during the first three quarters of 2026, while they were 91 percent of the historical average during the first three quarters of 2025. Additionally, cooling degree days in Spokane were 101 percent of the historical average during the first three quarters of 2026, while they were 139 percent of the historical average during the first three quarters of 2025.
Previous wording
A $34 million decrease in wholesale electric revenues due to a decrease in sales prices (decreased revenues $29 million) and a decrease in sales volumes (decreased revenues $5 million).
Current wording
A $43 million decrease in wholesale electric revenues due to a decrease in sales prices (decreased revenues $37 million) and a decrease in sales volumes (decreased revenues $6 million).
Previous wording
An $18 million increase in electric decoupling revenue primarily due to current year surcharge deferrals associated with decreased customer usage compared to rebate deferrals in the first half of 2025.
Current wording
A $31 million increase in electric decoupling revenue primarily due to current year surcharge deferrals associated with decreased customer usage compared to rebate deferrals in 2025.
Previous wording
The following graphs present Avista Utilities' natural gas operating revenues and therms delivered for the six months ended June 30, 2026 and 2025 (dollars in millions and therms in thousands):
Current wording
The following graphs present Avista Utilities' natural gas operating revenues and therms delivered for the nine months ended September 30, 2026 and 2025 (dollars in millions and therms in thousands):
Previous wording
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 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 natural gas operating revenues for the nine months ended September 30 (dollars in millions):
Previous wording
A $50 million decrease in natural gas retail revenues (including industrial, which is included in other) due to a decrease in retail rates (decreased revenues $26 million) and decreased sales volumes (decreased revenues $24 million).
Current wording
A $45 million decrease in natural gas retail revenues (including industrial, which is included in other) due to a decrease in retail rates (decreased revenues $24 million) and decreased sales volumes (decreased revenues $21 million).
Previous wording
Retail sales volumes decreased due to milder weather, which reduced customer usage. Residential and commercial use per customer each decreased 12 percent. Heating degree days in Spokane were 87 percent of the historical average during the first half of 2026, while they were 94 percent of the historical average in the first half of 2025.
Current wording
Retail sales volumes decreased due to milder weather, which reduced customer usage. Residential and commercial use per customer decreased 10 percent and 8 percent, respectively. Heating degree days in Spokane were 88 percent of the historical average during the first three quarters of 2026, while they were 91 percent of the historical average in the first three quarters of 2025.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Rate Years 3 and 4 will be established in later filings and as such are not included in the additional revenue requirements for those years shown above. In addition, we are proposing changes to the timing for recovery of costs deferred under the ERM.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Utility depreciation and amortization decreased primarily due to our exit from Colstrip in 2026.
Previous report — wording carried elsewhere
Other utility operating expenses increased due primarily to increased employee salaries and benefit costs, partially offset with decreases from removing Colstrip related expenses.
Previous report — wording carried elsewhere
A $4 million increase in electric decoupling revenue primarily due to increased current year surcharge deferrals associated with decreased customer usage compared to the second quarter of 2025.
Previous report — wording carried elsewhere
A $3 million decrease in wholesale natural gas revenues due to a decrease in prices (decreased revenues $2 million) and a decrease in volumes (decreased revenues $1 million).
Previous report — wording carried elsewhere
A $37 million decrease in fuel for generation due to decreased thermal generation due to increased hydroelectric generation. Thermal generation decreased due to the removal of Colstrip from our generation portfolio, as well as major maintenance at the Coyote Springs 2 facility in 2026.