What drove AVA's strong Q1 performance?

Avista's strong Q1 performance can be attributed to several key factors:

1. **Financial Outlook Upgrade**: S&P Global Ratings upgraded Avista's financial outlook to stable, reflecting improved financial performance and a revised perspective on the company's creditworthiness.
2. **Regulatory Success**: Avista's strategic regulatory successes, such as the approval of multi-year rate increases in Washington, have bolstered its revenue streams and stabilized its financial outlook. The company's ability to secure favorable rate cases across different states is a testament to its effective regulatory strategy.
3. **Natural Gas Integrated Resource Plan**: The filing of the 2025 Natural Gas Integrated Resource Plan (IRP) demonstrates Avista's proactive approach to meeting future energy demands while complying with emissions legislation. This comprehensive planning is likely to position the company well for sustained operations and reliability in the natural gas sector.
4. **Electric Rate Increase Proposal**: Avista's proposal to increase electric rates in Washington, if approved, would result in a significant revenue uplift, intended to recover deferred power supply costs. This adjustment is a strategic move to stabilize revenue and maintain financial health.
5. **Overall Business Risk Profile**: With over 99% of its consolidated EBITDA coming from regulated electric and gas utility operations, Avista's business risk profile is considered strong. This concentration in a stable sector provides a solid foundation for its financial performance.

In summary, Avista's strong Q1 performance is driven by a combination of improved financial outlook, successful regulatory outcomes, strategic planning, and proposed rate adjustments. These factors collectively contribute to the company's robust financial metrics and confidence in its future operations.