Avista Corporation

The company referred investors to the earnings press release and 10-Q for the quarter’s financial results, but no revenue, EPS, gross margin, or year-over-year figures were stated on the call. Instead, management used the call to update on the Spokane wildfire emergency, including about 7,300 of 429,000 electric customers and about 5,300 of 386,000 natural gas customers out of service. On guidance, management did not provide a financial outlook; instead, it said wildfire damage assessment is ongoing, transmission repairs are underway, and any cost recovery decisions are premature. On the regulatory front, Avista said a Washington rebuttal filing is due Friday, hearings are likely September 17-18, and a commission order is expected around mid-December.

Heather Rosentrater’s commentary was centered on safety, restoration, and community support. She stressed that Avista’s facilities were not involved in starting the fires, that crews have already repaired a key transmission line, and that the company’s first priority is protecting customers, employees, contractors, and the communities served. On data centers, she said Avista will only proceed if large loads provide a net benefit for current customers and preserve or improve reliability, and she highlighted ongoing work with regulators, local partners, and potential tariff or policy changes.

Kevin Christie focused on financial and regulatory implications rather than quarter results. He said the wildfire damage involves long-lived assets, so regulatory lag should not be significant, and that the company may later determine whether to file a petition with the UTC. He also said Washington’s securitization law exists but is intended for much more impactful events than the current fires, and that the company is not remotely close to needing it. On the rate case, he said settlement looks difficult because of fundamental differences over the 4-year plan, but staff’s position is relatively close to Avista’s; he also noted the company expects to file rebuttal on Friday, with hearing dates likely September 17-18 and an order in mid-December. In a separate comment, he said the nonregulated business had a good quarter, that an EIP investment generated a gain tied to an IPO lag, and that another gain could show up next quarter but would likely reverse based on current stock price.

Analysts pressed on wildfire damage, cost recovery, and whether Washington’s securitization framework could apply; management said it is too early to assess, the current event is not near the scale that would justify securitization, and any UTC filing would come only after a fuller damage assessment. Questions also focused on the paused data center MOU and the removed 500-megawatt upside; management said the pause gives time to develop stronger customer protections and broader coordination with regulators and stakeholders. On the Washington rate case, management said settlement is unlikely because of disagreements over the 4-year term, though staff’s positions are not far from Avista’s on several points. Analysts also asked about wildfire mitigation effectiveness, and management said PSPS actions and vegetation management appear to have worked as intended and may have prevented worse damage.