AVISTA CORP [AVA] Filings

10-Q 1 ava-20240630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	FOR THE QUARTERLY PERIOD ENDED June 30, 2024 OR


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	FOR THE TRANSITION PERIOD FROM TO

Commission file number 1-3701

AVISTA CORPORATION

(Exact name of Registrant as specified in its charter)

    Washington

    91-0462470

    (State or other jurisdiction of
incorporation or organization)

    (I.R.S. Employer
Identification No.)

1411 East Mission Avenue, Spokane, Washington 99202-2600

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: 509-489-0500

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock	AVA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of August 2, 2024, 78,703,761 shares of Registrant’s Common Stock, no par value (the only class of common stock), were outstanding.

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AVISTA CORPORATION

INDEX


Item No.		Page No.

	Acronyms and Terms	iii
	Forward-Looking Statements	1
	Available Information	5
Part I. Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited)	6
	Condensed Consolidated Statements of Income - Three and Six Months Ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2024 and 2023	7
	Condensed Consolidated Balance Sheets - June 30, 2024 and December 31, 2023	8
	Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2023	9
	Condensed Consolidated Statements of Equity - Three and Six Months Ended June 30, 2024 and 2023	11
	Notes to Condensed Consolidated Financial Statements (unaudited)	12
	Note 1. Summary of Significant Accounting Policies	12
	Note 2. New Accounting Standards	13
	Note 3. Balance Sheet Components	14
	Note 4. Revenue	17
	Note 5. Derivatives and Risk Management	20
	Note 6. Pension Plans and Other Postretirement Benefit Plans	23
	Note 7. Income Taxes	24
	Note 8. Short-Term Borrowings	25
	Note 9. Long-Term Debt	26
	Note 10. Long-Term Debt to Affiliated Trusts	26
	Note 11. Fair Value	27
	Note 12. Common Stock	32
	Note 13. Accumulated Other Comprehensive Loss	33
	Note 14. Earnings per Common Share	33
	Note 15. Commitments and Contingencies	33
	Note 16. Information by Business Segments	38
	Report of Independent Registered Public Accounting Firm	40

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
	Business Segments	41
	Executive Overview	41
	Regulatory Matters	42
	Results of Operations - Overall	45
	Non-GAAP Financial Measures	46
	Results of Operations - Avista Utilities	47

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	Results of Operations - Alaska Electric Light and Power Company	60
	Results of Operations - Other Businesses	60
	Critical Accounting Policies and Estimates	60
	Liquidity and Capital Resources	60
	Overall Liquidity	60
	Review of Condensed Consolidated Cash Flow Statement	60
	Capital Resources	61
	Capital Expenditures	62
	Pension Plan	62
	Environmental Issues and Contingencies	63
	Enterprise Risk Management	65

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	66

Item 4.	Controls and Procedures	66

Part II. Other Information
Item 1.	Legal Proceedings	68

Item 1A.	Risk Factors	68

Item 5.	Other Information	68

Item 6.	Exhibits	69

	Signature	70

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AVISTA CORPORATION

ACRONYMS AND TERMS

(The following acronyms and terms are found in multiple locations within the document)


Acronym/Term	Meaning
aMW	-	Average Megawatt - a measure of the average rate at which a particular generating source produces energy over a period of time
AEL&P	-	Alaska Electric Light and Power Company, the primary operating subsidiary of AERC, which provides electric services in Juneau, Alaska
AERC	-	Alaska Energy and Resources Company, the Company's wholly-owned subsidiary based in Juneau, Alaska
AFUDC	-	Allowance for Funds Used During Construction; represents the cost of both the debt and equity funds used to finance utility plant additions during the construction period
ASC	-	Accounting Standards Codification
ASU	-	Accounting Standards Update
Avista Capital	-	Parent company to the Company’s non-utility businesses, with the exception of AJT Mining Properties, Inc., which is a subsidiary of AERC.
Avista Corp.	-	Avista Corporation, the Company
Avista Utilities	-	Operating division of Avista Corp. (not a subsidiary) comprising the regulated utility operations in the Pacific Northwest
Capacity	-	The rate at which a particular generating source is capable of producing energy, measured in KW or MW
Cabinet Gorge	-	The Cabinet Gorge Hydroelectric Generating Project, located on the Clark Fork River in Idaho
CCA	-	Climate Commitment Act
CETA	-	Clean Energy Transformation Act
Colstrip	-	The coal-fired Colstrip Generating Plant in southeastern Montana
Cooling degree days	-	The measure of the warmness of weather experienced, based on the extent to which the average of high and low temperatures for a day exceeds 65 degrees Fahrenheit (annual degree days above historic indicate warmer than average temperatures)
COVID-19	-	Coronavirus disease 2019, a respiratory illness declared a pandemic in March 2020
Deadband or ERM deadband	-	The first $4.0 million in annual power supply costs above or below the amount included in base retail rates in Washington under the ERM in the state of Washington
EIM	-	Energy Imbalance Market
Energy	-	The amount of electricity produced or consumed over a period of time, measured in KWh or MWh. Also, refers to natural gas consumed and is measured in dekatherms
EPA	-	Environmental Protection Agency
ERM	-	The Energy Recovery Mechanism, a mechanism for accounting and rate recovery of certain power supply costs accepted by the utility commission in the state of Washington
FASB	-	Financial Accounting Standards Board
FCA	-	Fixed Cost Adjustment, the electric and natural gas decoupling mechanism in Idaho
FERC	-	Federal Energy Regulatory Commission
GAAP	-	Generally Accepted Accounting Principles
GHG	-	Greenhouse gas
Heating degree days	-	The measure of the coldness of weather experienced, based on the extent to which the average of high and low temperatures for a day falls below 65 degrees Fahrenheit (annual degree days below historic indicate warmer than average temperatures).
IPUC	-	Idaho Public Utilities Commission

iii

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KW, KWh	-	Kilowatt (1000 watts): a measure of generating power or capability. Kilowatt-hour (1000 watt hours): a measure of energy produced over a period of time
MPSC	-	Public Service Commission of the State of Montana
MW, MWh	-	Megawatt: 1000 KW. Megawatt-hour: 1000 KWh
Noxon Rapids	-	The Noxon Rapids Hydroelectric Generating Project, located on the Clark Fork River in Montana
OPUC	-	The Public Utility Commission of Oregon
PCA	-	The Power Cost Adjustment mechanism, a procedure for accounting and rate recovery of certain power supply costs accepted by the utility commission in the state of Idaho
PGA	-	Purchased Gas Adjustment
PPA	-	Power Purchase Agreement
RCA	-	The Regulatory Commission of Alaska
REC	-	Renewable energy credit
ROE	-	Return on equity
ROR	-	Rate of return on rate base
ROU	-	Right-of-use lease asset
SEC	-	U.S. Securities and Exchange Commission
SOFR	-	Secured Overnight Financing Rate
Talen	-	Talen Montana, LLC, an indirect subsidiary of Talen Energy Corporation.
Therm	-	Unit of measurement for natural gas; a therm is equal to approximately one hundred cubic feet (volume) or 100,000 BTUs (energy)
Watt	-	Unit of measurement of electric power or capability; a watt is equal to the rate of work represented by a current of one ampere under a pressure of one volt
WUTC	-	Washington Utilities and Transportation Commission

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AVISTA CORPORATION

Forward-Looking Statements

From time to time, we make forward-looking statements such as statements regarding projected or future:

•

financial performance;

•

cash flows;

•

capital expenditures;

•

dividends;

•

capital structure;

•

other financial items;

•

strategic goals and objectives;

•

business environment; and

•

plans for operations.

These statements are based upon underlying assumptions (many of which are based, in turn, upon further assumptions). Such statements are made both in our reports filed under the Securities Exchange Act of 1934, as amended (including this Quarterly Report on Form 10-Q), and elsewhere. Forward-looking statements are all statements except those of historical fact including, without limitation, those identified by the use of words that include “will,” “may,” “could,” “should,” “intends,” “plans,” “seeks,” “anticipates,” “estimates,” “expects,” “forecasts,” “projects,” “predicts,” and similar expressions.

Forward-looking statements (including those made in this Quarterly Report on Form 10-Q) are subject to a variety of risks, uncertainties and other factors. Most of these factors are beyond our control and may have a significant effect on our operations, results of operations, financial condition or cash flows, which could cause actual results to differ materially from those anticipated in our statements. Such risks, uncertainties and other factors include, among others:

Utility Regulatory Risk

•

state and federal regulatory decisions or related judicial decisions that affect our ability to recover costs and earn a reasonable return including, but not limited to, disallowance or delay in the recovery of capital investments, operating costs, commodity costs, the ordering of refunds to customers and discretion over allowed return on investment;

•

the loss of regulatory accounting treatment, which could require the write-off of regulatory assets and the loss of regulatory deferral and recovery mechanisms;

Operational Risk

•

weather conditions, which affect both energy demand and electric generating capability, including the impact of precipitation and temperature on hydroelectric resources, the impact of wind patterns on wind-generated power, weather-sensitive customer demand, and similar impacts on supply and demand in the wholesale energy markets;

•

wildfires ignited, or allegedly ignited, by our equipment or facilities could cause significant loss of life and property or result in liability for resulting fire suppression costs and/or damages, thereby causing serious operational, reputational and financial harm;

•

severe weather or natural disasters, including, but not limited to, avalanches, wind storms, wildfires, earthquakes, extreme temperature events, snow and ice storms that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services;

•

political unrest and/or conflicts between foreign nation-states, which could disrupt the global, national and local economy, result in increases in operating and capital costs, impact energy commodity prices or our ability to access energy resources, create disruption in supply chains, disrupt, weaken or create volatility in capital markets, and increase cyber

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AVISTA CORPORATION

and physical security risks. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications;

•

explosions, fires, accidents, mechanical breakdowns or other incidents that could impair assets and may disrupt operations of our generation facilities, transmission, and electric and natural gas distribution systems or other operations and may require us to purchase replacement power or incur costs to repair our facilities;

•

interruptions in the delivery of natural gas by our suppliers, including physical problems with pipelines themselves, can disrupt our service of natural gas to our customers and/or impair our ability to operate gas-fired electric generating facilities;

•

explosions, fires, accidents or other incidents arising from or allegedly arising from our operations that could cause injuries to the public or property damage;

•

blackouts or disruptions of interconnected transmission systems (the regional power grid);

•

terrorist attacks, cyberattacks or other malicious acts that could disrupt or cause damage to our utility assets or to the national or regional economy in general, including effects of terrorism, cyberattacks, ransomware, or vandalism that damage or disrupt information technology systems;

•

pandemics, which could disrupt our business, as well as the global, national and local economy, resulting in a decline in customer demand, deterioration in the creditworthiness of our customers, increases in operating and capital costs, workforce shortages, losses or disruptions in our workforce due to vaccine mandates, delays in capital projects, disruption in supply chains, and disruption, weakness and volatility in capital markets. In addition, any of these factors could negatively impact our liquidity and limit our access to capital, among other implications;

•

work-force issues, including changes in collective bargaining unit agreements, strikes, work stoppages, the loss of key executives, availability of workers in a variety of skill areas, and our ability to recruit and retain employees;

•

changes in the availability and price of purchased power, fuel and natural gas, as well as transmission capacity;

•

increasing costs of insurance, more restrictive coverage terms and our ability to obtain insurance;

•

delays or changes in construction costs, and/or our ability to obtain required permits and materials for present or prospective facilities;

•

increasing health care costs and cost of health insurance provided to our employees and retirees;

•

increasing operating costs, including effects of inflationary pressures;

•

third party construction of buildings, billboard signs, towers or other structures within our rights of way, or placement of fuel containers within close proximity to our transformers or other equipment, including overbuilding atop natural gas distribution lines;

•

the loss of key suppliers for materials or services or other disruptions to the supply chain;

•

adverse impacts to our Alaska electric utility (AEL&P) that could result from an extended outage of its hydroelectric generating resources or their inability to deliver energy, due to their lack of interconnectivity to other electrical grids and the availability or cost of replacement power (diesel);

•

changing river or reservoir regulation or operations at hydroelectric facilities not owned by us, which could impact our hydroelectric facilities downstream;

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AVISTA CORPORATION

Climate Change Risk

•

increasing frequency and intensity of severe weather or natural disasters resulting from climate change, that could disrupt energy generation, transmission and distribution, as well as the availability and costs of fuel, materials, equipment, supplies and support services;

•

change in the use, availability or abundancy of water resources and/or rights needed for operation of our hydroelectric facilities, including impacts resulting from climate change;

•

changes in the long-term climate and weather could materially affect, among other things, customer demand, the volume and timing of streamflows required for hydroelectric generation, costs of generation, transmission and distribution. Increased or new risks may arise from severe weather or natural disasters, including wildfires as well as their increased occurrence and intensity related to changes in climate;

Cybersecurity Risk

•

cyberattacks on the operating systems used in the operation of our electric generation, transmission and distribution facilities and our natural gas distribution facilities, and cyberattacks on such systems of other energy companies with which we are interconnected, which could damage or destroy facilities or systems or disrupt operations for extended periods of time and result in the incurrence of liabilities and costs;

•

cyberattacks on the administrative systems used in the administration of our business, including customer billing and customer service, accounting, communications, compliance and other administrative functions, and cyberattacks on such systems of our vendors and other companies with which we do business, resulting in the disruption of business operations, the release of private information and the incurrence of liabilities and costs;

Technology Risk

•

changes in costs that impede our ability to implement new information technology systems or to operate and maintain current production technology;

•

changes in technologies, possibly making some of the current technology we utilize obsolete or introducing new cyber security risks and other new risks inherent in the use, by either us or our counterparties, of new technologies in the developmental stage including, without limitation, generative artificial intelligence;

•

changes in the use, perception, or regulation of generative artificial intelligence technologies, which could limit our ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to our business, reputation or financial results;

•

insufficient technology skills, which could lead to the inability to develop, modify or maintain our information systems;

Strategic Risk

•

growth or decline of our customer base due to new uses for our services or decline in existing services, including, but not limited to, the effect of the trend toward distributed generation at customer sites;

•

the potential effects of negative publicity regarding our business practices, whether true or not, which could hurt our reputation and result in litigation or a decline in our common stock price;

•

changes in our strategic business plans, which could be affected by any or all of the foregoing, including the entry into new businesses and/or the exit from existing businesses and the extent of our business development efforts where potential future business is uncertain;

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AVISTA CORPORATION

•

wholesale and retail competition including alternative energy sources, growth in customer-owned power resource technologies that displace utility-supplied energy or may be sold back to the utility, and alternative energy suppliers and delivery arrangements;

•

non-regulated activities may increase earnings volatility and result in investment losses;

•

the risk of municipalization or other forms of service territory reduction;

External Mandates Risk

•

changes in environmental laws, regulations, decisions and policies, including, but not limited to, regulatory responses to concerns regarding climate change, efforts to restore anadromous fish in areas currently blocked by dams, more stringent requirements related to air quality, water quality and waste management, present and potential environmental remediation costs and our compliance with these matters;

•

the potential effects of initiatives, legislation or administrative rulemaking at the federal, state or local levels, including possible effects on our generating resources, prohibitions or restrictions on new or existing services, or restrictions on greenhouse gas emissions to mitigate concerns over climate changes, including future limitations on the usage and distribution of natural gas;

•

political pressures or regulatory practices that could constrain or place additional cost burdens on our distribution systems through accelerated adoption of distributed generation or electric-powered transportation or on our energy supply sources, such as campaigns to halt fossil fuel-fired power generation and opposition to other thermal generation, wind turbines or hydroelectric facilities;

•

failure to identify changes in legislation, taxation and regulatory issues that could be detrimental or beneficial to our overall business;

•

policy and/or legislative changes in various regulated areas, including, but not limited to, environmental regulation, healthcare regulations and import/export regulations;

Financial Risk

•

our ability to obtain financing through the issuance of debt and/or equity securities and access to our funds held with financial institutions, which could be affected by various factors including our credit ratings, interest rates, other capital market conditions and global economic conditions;

•

changes in interest rates that affect borrowing costs, variable interest rate borrowing and the extent to which we recover interest costs through retail rates collected from customers;

•

volatility in energy commodity markets that affect our ability to effectively hedge energy commodity risks, including cash flow impacts and requirements for collateral;

•

volatility in the carbon emissions allowances market that could result in increased compliance costs;

•

changes in actuarial assumptions, interest rates and the actual return on plan assets for our pension and other postretirement benefit plans, which could affect future funding obligations, pension and other postretirement benefit expense and the related liabilities;

•

the outcome of legal proceedings and other contingencies;

•

economic conditions in our service areas, including the economy's effects on customer demand for utility services;

•

economic conditions nationally may affect the valuation of our unregulated portfolio companies;

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AVISTA CORPORATION

•

declining electricity demand related to customer energy efficiency, conservation measures and/or increased distributed generation and declining natural gas demand related to customer energy efficiency, conservation measures and/or increased electrification;

•

industry and geographic concentrations which could increase our exposure to credit risks due to counterparties, suppliers and customers being similarly affected by changing conditions;

•

deterioration in the creditworthiness of our customers;

•

activist shareholders may result in additional costs and resources required in response to activist actions;

Energy Commodity Risk

•

volatility and illiquidity in wholesale energy markets, including exchanges, the availability of willing buyers and sellers, changes in wholesale energy prices that could affect operating income, cash requirements to purchase electricity and natural gas, value received for wholesale sales, collateral required of us by individual counterparties and/or exchanges in wholesale energy transactions and credit risk from such transactions, and the market value of derivative assets and liabilities;

•

default or nonperformance on the part of parties from whom we purchase and/or sell capacity or energy;

•

potential environmental regulations or lawsuits affecting our ability to utilize or resulting in the obsolescence of our power supply resources;

•

explosions, fires, accidents, pipeline ruptures or other incidents that could limit energy supply to our facilities or our surrounding territory, which could result in a shortage of commodities in the market that could increase the cost of replacement commodities from other sources;

Compliance Risk

•

changes in laws, regulations, decisions and policies at the federal, state or local levels, which could materially impact both our electric and gas operations and costs of operations; and

•

the ability to comply with the terms of the licenses and permits for our hydroelectric or thermal generating facilities at cost-effective levels.

Our expectations, beliefs and projections are expressed in good faith. We believe they are reasonable based on, without limitation, an examination of historical operating trends, our records and other information available from third parties. There can be no assurance our expectations, beliefs or projections will be achieved or accomplished. Furthermore, any forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New risks, uncertainties and other factors emerge from time to time, and it is not possible for us to predict all such factors, nor can we assess the effect of each such factor on our business or the extent any such factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement.

Available Information

We file annual, quarterly and current reports and proxy statements with the SEC. The SEC maintains a website that contains these documents at www.sec.gov. We make annual, quarterly and current reports and proxy statements available on our website, https://investor.avistacorp.com, as soon as practicable after electronically filing these documents with the SEC. Except for SEC filings or portions thereof specifically referred to in this report, information contained on these websites is not part of this report.

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PART I. Financial Information

Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Avista Corporation

For the Three and Six Months Ended June 30

Dollars in thousands, except per share amounts

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Operating Revenues:
Utility revenues:
Utility revenues, exclusive of alternative revenue programs	$	385,861		$	374,285		$	992,372		$	867,828
Alternative revenue programs		16,171			5,513			19,054			(13,525	)
Total utility revenues		402,032			379,798			1,011,426			854,303
Non-utility revenues		40			139			62			265
Total operating revenues		402,072			379,937			1,011,488			854,568
Operating Expenses:
Utility operating expenses:
Resource costs		144,326			141,244			437,443			334,172
Other operating expenses		109,591			103,071			220,840			208,049
Depreciation and amortization		67,829			66,148			135,756			131,336
Taxes other than income taxes		25,710			24,917			61,398			58,811
Non-utility operating expenses		360			749			679			1,791
Total operating expenses		347,816			336,129			856,116			734,159
Income from operations		54,256			43,808			155,372			120,409
Interest expense		35,924			35,018			72,828			70,102
Interest expense to affiliated trusts		656			608			1,313			1,179
Capitalized interest		(1,145	)		(866	)		(2,106	)		(1,708	)
Other income-net		(4,532	)		(2,626	)		(13,817	)		(9,055	)
Income before income taxes		23,353			11,674			97,154			59,891
Income tax expense (benefit)		495			(5,810	)		2,801			(12,438	)
Net income	$	22,858		$	17,484		$	94,353		$	72,329
Weighted-average common shares outstanding (thousands), basic		78,390			75,983			78,276			75,576
Weighted-average common shares outstanding (thousands), diluted		78,456			76,131			78,333			75,703

Earnings per common share:
Basic	$	0.29		$	0.23		$	1.20		$	0.96
Diluted	$	0.29		$	0.23		$	1.20		$	0.96

The Accompanying Notes are an Integral Part of These Statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Avista Corporation

For the Three and Six Months Ended June 30

Dollars in thousands

(Unaudited)


	Three months ended June 30,					Six Months Ended June 30,
	2024		2023			2024			2023
Net income	$	22,858	$	17,484		$	94,353		$	72,329
Change in unfunded benefit obligation for pension and other postretirement benefit plans - net of taxes of $0, ($5), ($2) and ($10), respectively		—		(19	)		(9	)		(37	)
Comprehensive income	$	22,858	$	17,465		$	94,344		$	72,292

The Accompanying Notes are an Integral Part of These Statements.

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CONDENSED CONSOLIDATED BALANCE SHEETS

Avista Corporation

Dollars in thousands

(Unaudited)


	June 30,			December 31,
	2024			2023
Assets:
Current Assets:
Cash and cash equivalents	$	14,647		$	35,003
Accounts and notes receivable-less allowances of $3,624 and $4,987, respectively		153,519			216,744
Inventory		175,588			159,984
Regulatory assets		130,389			146,327
Other current assets		76,717			103,784
Total current assets		550,860			661,842
Net utility property		5,827,143			5,700,056
Goodwill		52,426			52,426
Non-current regulatory assets		844,767			894,168
Other property and investments-net and other non-current assets		408,574			393,985
Total assets	$	7,683,770		$	7,702,477
Liabilities and Equity:
Current Liabilities:
Accounts payable	$	104,620		$	143,262
Current portion of long-term debt		15,000			15,000
Short-term borrowings		244,000			349,000
Regulatory liabilities		94,385			76,007
Other current liabilities		166,761			191,936
Total current liabilities		624,766			775,205
Long-term debt		2,598,398			2,515,358
Long-term debt to affiliated trusts		51,547			51,547
Pensions and other postretirement benefits		92,211			89,830
Deferred income taxes		718,728			718,318
Non-current regulatory liabilities		829,061			856,666
Other non-current liabilities and deferred credits		241,820			210,230
Total liabilities		5,156,531			5,217,154
Commitments and Contingencies (See Notes to Condensed Consolidated Financial Statements)
Equity:
Shareholders’ Equity:
Common stock, no par value; 200,000,000 shares authorized; 78,702,117 and 78,074,587 shares issued and outstanding, respectively		1,666,692			1,644,327
Accumulated other comprehensive loss		(366	)		(357	)
Retained earnings		860,913			841,353
Total shareholders’ equity		2,527,239			2,485,323
Total liabilities and equity	$	7,683,770		$	7,702,477

The Accompanying Notes are an Integral Part of These Statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Avista Corporation

For the Six Months Ended June 30

Dollars in thousands

(Unaudited)


	2024			2023
Operating Activities:
Net income	$	94,353		$	72,329
Non-cash items included in net income:
Depreciation and amortization		135,761			131,367
Deferred income tax provision		(23,004	)		(20,565	)
Power and natural gas cost deferrals, net		74,643			(31,559	)
Amortization of debt expense		1,039			1,980
Stock-based compensation expense		6,350			5,460
Equity-related AFUDC		(3,830	)		(3,172	)
Pension and other postretirement benefit expense		5,942			6,693
Other regulatory assets and liabilities		(14,028	)		(31,997	)
Other deferred debits and credits		22,469			32,351
Change in decoupling regulatory deferral		(18,752	)		14,383
Realized and unrealized loss (gain) on assets and investments		(294	)		2,752
Other		1,831			(2,436	)
Contributions to defined benefit pension plan		(6,666	)		(6,666	)
Cash paid for settlement of interest rate swap agreements		—			(409	)
Cash received for settlement of interest rate swap agreements		4,397			7,869
Changes in certain current assets and liabilities:
Accounts and notes receivable		59,468			111,428
Inventory		(15,605	)		(8,131	)
Collateral for derivative instruments		18,453			116,602
Income taxes receivable		21,242			7,476
Other current assets		(81	)		(20,228	)
Accounts payable		(33,884	)		(96,080	)
Other current liabilities		(12,809	)		(19,886	)
Net cash provided by operating activities		316,995			269,561

Investing Activities:
Utility property capital expenditures (excluding equity-related AFUDC)		(251,207	)		(226,746	)
Issuance of notes receivable		—			(1,500	)
Investments made in equity and property		(5,115	)		(6,481	)
Other		2,192			652
Net cash used in investing activities		(254,130	)		(234,075	)

The Accompanying Notes are an Integral Part of These Statements.

Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

Avista Corporation

For the Six Months Ended June 30

Dollars in thousands

(Unaudited)


	2024			2023
Financing Activities:
Net decrease in short-term borrowings	$	(105,000	)	$	(260,000	)
Proceeds from issuance of long-term debt		83,700			250,000
Maturity of long-term debt and finance leases		(1,700	)		(8,118	)
Issuance of common stock, net of issuance costs		17,600			59,525
Cash dividends paid		(75,090	)		(69,942	)
Other		(2,731	)		(4,675	)
Net cash used in financing activities		(83,221	)		(33,210	)

Net increase (decrease) in cash and cash equivalents		(20,356	)		2,276

Cash and cash equivalents at beginning of period		35,003			13,428

Cash and cash equivalents at end of period	$	14,647		$	15,704

The Accompanying Notes are an Integral Part of These Statements.

Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Avista Corporation

For the Three and Six Months Ended June 30

Dollars in thousands

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Common Stock, Shares:
Shares outstanding at beginning of period		78,187,093			75,762,598			78,074,587			74,945,948
Shares issued		515,024			761,586			627,530			1,578,236
Shares outstanding at end of period		78,702,117			76,524,184			78,702,117			76,524,184
Common Stock, Amount:
Balance at beginning of period	$	1,645,208		$	1,555,651		$	1,644,327		$	1,525,185
Equity compensation expense		3,999			3,239			6,350			5,460
Issuance of common stock, net of issuance costs		17,485			29,613			17,600			59,525
Payment of minimum tax withholdings for share-based payment awards		—			—			(1,585	)		(1,667	)
Balance at end of period		1,666,692			1,588,503			1,666,692			1,588,503
Accumulated Other Comprehensive Loss:
Balance at beginning of period		(366	)		(2,076	)		(357	)		(2,058	)
Other comprehensive loss		—			(19	)		(9	)		(37	)
Balance at end of period		(366	)		(2,095	)		(366	)		(2,095	)
Retained Earnings:
Balance at beginning of period		875,658			831,736			841,353			811,541
Net income		22,858			17,484			94,353			72,329
Dividends on common stock		(37,603	)		(35,207	)		(74,793	)		(69,857	)
Balance at end of period		860,913			814,013

AVISTA CORP [AVA] Filings
10-Q	[2024-08-07]
10-Q	[2024-05-01]
10-K	[2024-02-21]
10-Q	[2023-11-01]
10-Q	[2023-08-02]
10-Q	[2023-05-03]
10-K	[2023-02-22]
10-Q	[2022-11-01]
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-02-23]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-02-24]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-Q	[2020-05-08]
10-K	[2020-02-26]
10-Q	[2019-11-07]
10-Q	[2019-08-07]
10-Q	[2019-05-01]
10-K	[2019-02-20]
10-Q	[2018-11-07]
10-Q	[2018-08-01]
10-Q	[2018-05-02]
10-K	[2018-02-21]
10-Q	[2017-11-01]
10-Q	[2017-08-02]
10-Q	[2017-05-03]
10-K	[2017-02-22]
10-Q	[2016-11-01]
10-Q	[2016-08-03]
10-Q	[2016-05-04]
10-K	[2016-02-24]
10-Q	[2015-11-04]
10-Q	[2015-08-05]
10-Q	[2015-05-06]
10-K	[2015-02-25]
10-Q	[2014-11-05]
10-Q	[2014-08-08]
10-Q	[2014-05-07]
10-K	[2014-02-26]
10-Q	[2013-11-07]
10-Q	[2013-08-07]
10-Q	[2013-05-03]
10-K	[2013-02-26]
10-Q	[2012-11-07]
10-Q	[2012-08-07]
10-Q	[2012-05-04]
10-K	[2012-02-28]