Avista Corporation's Q4 2024: Contradictions in Growth Outlook, Earnings Guidance, and Regulatory Timelines

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Financial Performance:
- Avista Corporation reported consolidated earnings of $0.84 per diluted share for Q4 2024, down from $1.08 in Q4 2023. However, for the full year, earnings were $2.29 per diluted share, slightly up from $2.24 last year.
- The decrease in Q4 earnings was due to higher costs, including purchase power costs, while the full-year increase was driven by regulatory support and operational efficiencies.

Capital Investments and Infrastructure:
- Avista Utilities invested a record $510 million in 2024, with plans to invest $525 million in 2025, supporting customer growth and maintenance of the system.
- The investments were focused on distribution and transmission grid hardening, vegetation management, and wildfire mitigation plans, aimed at enhancing reliability and safety.

Regulatory Strategy and Outcomes:
- Avista received a constructive order from the Washington Commission, increasing the return on equity to 9.8%. However, the commission did not support modifications to the energy recovery mechanism (ERM).
- The positive outcomes in the Washington rate case set the stage for further regulatory success in Oregon and Idaho, where Avista is seeking to update capital investments and power supply costs.

Dividend and Earnings Guidance:
- The Board of Directors increased the dividend for the 23rd consecutive year to $1.96 per share, an increase of over 3%.
- For 2025, Avista initiated earnings guidance of $2.52 to $2.72 per diluted share, with Avista Utilities contributing $2.43 to $2.61, and other businesses having no contribution to earnings.

Wildfire Mitigation and Legislation:
- Avista made significant progress in wildfire mitigation, meeting or exceeding targets for distribution and transmission grid hardening, vegetation management, and automated safety modes.
- Two bills were introduced in the Washington legislature to approve wildfire mitigation plans and enable securitization of catastrophic wildfire costs, reflecting Avista's proactive approach to risk management.