2024Avista Corp Annual Report and Form 10K.pdf

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PresidentHeather Rosentrater
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TO OUR
As I step into the President and CEO role at Avista, I am honored,
humbled,and excited to have an incredible team around me.Together,
we will take on the myriad of opportunities and challenges ahead of us
Thank you for making it possible to achieve .
enabling
serveto heart as we our customers . communities every day with
compassionoptimism for the future.We know that the services we
provide transform lives,and our communities,for the good.
We've seen a lot over our 135 years,and we demonstrate our foresight,
resiliency,and innovation time and time again. It was no different in 2024.Although the trends,opportunities,and risks that impact us continue to
evolve,we approach these opportunities and challenges with flexibility
and adaptability.We continue to provide Energy that Transforms. JAN
PREPARING FOR INCREASING UNCERTAINTY Our 2025 Electric Integrated Resource Plan identifies several
investment opportunities to support the preferred resource plan,
We started 2024 with an extreme cold weather event that including adding new renewable resources through contract or
stressed our region's gas and electric systems, reminding ownership by the end of the decade.To ensure adequate system
us of the importance of holistic energy planning and timely supply,the plan also identifies the need for reliable generation
infrastructure investment.Avista invested a record$510M in resources including either new natural gas generation or
capital,announced a Memorandum of Understanding to own energy storage.
10% of the planned North Plains Connector transmission line,and
received several Department of Energy Grants—all to support A REFRESHED STRATEGY
continued system resiliency and ensure we are prepared for
future weather extremes and demand uncertainty. From ensuring robust energy supply and delivery systems,
partnering in the shared clean energy economy,and inspiring
COMMITMENT TO FINANCIAL STRENGTH engaged and thriving employees,to committing to financial
strength,these are just some of the ways we are delivering
The constructive outcomes of our Washington General upon our mission. In this spirit,we launched our 2025-2035
Rate Cases provide a strong foundation for us to start 2025. Strategy Playbook.This playbook is more than a document; it
Additionally,the inbound inquiries we are exploring for new, large demonstrates our readiness to act upon opportunities and tackle
loads on our system bring exciting opportunities for the future. our most pressing challenges.
EXPANDING ENERGY SOURCES I have immense appreciation for the legacy of integrity and care
given to us by Dennis Vermillion.As he passes the torch to
We took additional steps towards our clean energy goals by me, I couldn't ask for a better foundation to build on or a more
signing our fourth renewable natural gas contract,and we started interesting and exciting time to be in the energy industry. I look
receiving power from our portion of the Clearwater Wind project. forward to serving our employees,customers, communities,
and you, our shareholders,on the journey ahead!

FINANCIAL .
Electricity Generation
Resource Mix
As of Dec.31,2024-Excludes AEL&P ,
Clean Energy Goals
Avista set goals to serve its customers with 59%
100% clean electricity and to be carbon-neutral in
its natural gas operations by 2045.
Renewable
Avista was founded on clean, renewable Energy
hydro power in 1889,and the company has a Total Hydro 44%
long-standing history of providing clean, reliable (includes long-
and affordable energy to the customers and term contracts)
communities it serves. 0 Natural Gas 33%
Coal 8%
Biomass 2%
Wind Contracts 13%
Total Shareholder Return Common Stock Dividends
Assumes$100 was invested in Avista Corp.and each index on Paid by Avista Corp.
Dec.31, 2019, and that all dividends were reinvested when paid. Annualized Dividend (paid in dollars)
$200 2015 $1.32
2016 $1.37
2017 $1.43
$150 2018 $1.49
2019 $1.55
2020 $1.62
$100 2021 $1.69
$87 $104 $95
$96 $88 2022 $1.76
2023 $1.84
2024 $1.90
$50
2019 2020 2021 2022 2023 2024
Avista Corp.'s board of directors raised the
S&P 400 dividend in each of the last 22 years, reflecting their
/�.Avista Corp. S&P 500 Index Utilities Index confidence in the financial strength of the company.
Capital Budget $525M
Total capital budget($in millions) 2025 _---
$240 $103 $81 $72 $29
5575M
2026 ---
Transmission and Distribution $276 $97 $82 $88 $32
Generation
Natural Gas $600M
Enterprise Technology 2027 ---
Other $303 $102 $86 $76 $33

(dollars in millions except statistics and per share
amounts or as otherwise indicated) 2024 2023 2022
Financial Results
Operating revenues $ 1,938 $ 1,752 $ 1,710
Operating expenses 1,632 1,494 1,520
Income from operations 306 258 190
Net income 180 171 155
Total earnings per common share, diluted 2.29 2.24 2.12
Dividends paid per common share 1.90 1.84 1.76
Book value per common share $ 32.37 $ 31.83 $ 31.15
Average common shares outstanding 78,725 76,396 72,989
Return on average Avista Corp. stockholders' equity 7.1 % 7.1 % 6.9%
Common stock closing price $ 36.63 $ 35.74 $ 44.34
Operating Results
Avista Utilities
Retail electric revenues $ 982 $ 887 $ 869
Retail kWh sales(in thousands) 8,986 8,868 9,071
Retail electric customers at year-end 421,985 416,329 410,641
Wholesale electric revenues $ 225 $ 250 $ 179
Wholesale kWh sales(in thousands) 3,740 3,468 3,094
Sales of fuel $ 13 $ (26) $ 84
Other electric revenues 58 49 46
Decoupling(electric) 23 12 (32)
Retail natural gas revenues $ 493 $ 507 $ 434
Wholesale natural gas revenues 61 55 133
Transportation and other natural gas revenues 40 16 17
Decoupling(natural gas) 12 (7) (2)
Total therms delivered(in thousands) 831,239 817,123 861,840
Retail natural gas customers at year-end 382,920 381,002 377,420
Net income $ 179 $ 167 $ 118
Alaska Electric Light and Power Company
Revenues $ 50 $ 48 $ 46
Retail kWh sales(in thousands) 427 411 404
Retail electric customers at year-end 17,785 17,688 17,577
Net income 8 9 7
Other
Revenues $ 1 $ 1 $ 1
Net income(loss) (7) (5) 30
Financial Condition
Total assets $ 7,941 $ 7,702 $ 7,417
Long-term debt and leases(including current portion) 2,719 2,640 2,409
Long-term debt to affiliated trusts 52 52 52
Total Avista Corp. stockholders' equity 2,591 2,485 2,335

BOARD OF •
Julie A. Bentz,60 Rebecca A. Klein,59 Scott L. Morris,67 Heidi B.Stanley,68
Principal, HOMR LLC Principal, Klein Energy, LLC Chair of the Board, Co-owner&Chair,
Scio, Oregon Austin,Texas Avista Corp. Empire Bolt&Screw Inc.
Director since 2021 Director since 2010 Spokane,Washington Spokane,Washington
Director since 2007 Director since 2006
Donald C. Burke,64 Sena M. I(wawu,56
Langhorne, Pennsylvania President, In-Home Services, Jeffry L. Philipps,69 Janet D.Widmann, 58
Director since 2011 Cinch Home Services Spokane,Washington San Francisco, California
Bellevue,Washington Director since 2019 Director since 2014
Kevin B.Jacobsen,58 Director since 2021
Executive Vice President& Heather L. Rosentrater,47
CFO,The Clorox Company Scott H. Maw, 57 President&CEO,
Danville, California Seattle,Washington Avista Corp.
Director since 2023 Director since 2016 Spokane,Washington
Director since 2025
BOARDit •
Governance&Corporate Audit Committee Finance Committee
Responsibility Committee Donald C. Burke Julie A. Bentz
Donald C. Burke (Financial Expert)—Chair Sena M. Kwawu—Chair
Scott H. Maw Kevin B.Jacobsen Scott L. Morris
Heidi B. Stanley Jeffry L. Philipps Janet D.Widmann
Janet D.Widmann—Chair Heidi B. Stanley
Environmental,
Executive Committee Compensation & Technology&
Donald C. Burke Organization Committee Operations Committee
Scott L. Morris—Chair Rebecca A. Klein Julie A. Bentz
Heather L. Rosentrater Scott H. Maw—Chair Kevin B.Jacobsen
Heidi B. Stanley Jeffry L. Philipps Rebecca A. Klein—Chair
Sena M. Kwawu
CORPORATEIN
" OFFICERS
Heather L. Rosentrater,47 Gregory C. Hesler,47 Latisha D. Hill,46 Wayne O. Manuel,52
President&CEO Senior Vice President, Vice President, Vice President, CIO&
General Counsel, Corporate Community Affairs& Chief Security Officer
Dennis P.Vermillion,63 Secretary&Chief Ethics/ Chief Customer Officer
Executive Vice President Compliance Officer David J. Meyer,71
Scott J. Kinney, 56 Vice President&Chief
Kevin J.Christie, 57 Jason R.Thackston,55 Vice President, Counsel for Regulatory
Senior Vice President, CFO, Senior Vice President, Energy Resources& &Governmental Affairs
Treasurer&Regulatory Energy Policy& Integrated Planning
Affairs Officer Chief Strategy Officer Alec J. Mesdag,45
Ryan L. Krasselt,55 President&CEO,
Bryan A. Cox, 55 Joshua D. DiLuciano,44 Vice President, Alaska Electric
Senior Vice President, Vice President, Controller&Principal Light&Power Co.
Safety&Chief Energy Delivery Accounting Officer
People Officer

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington,D.C.20549
FORM 10-K
(Mark One)
❑x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED
DECEMBER 31,2024 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 001-03701
AVISTA CORPORATION
(Exact name of Registrant as specified in its charter)
WA 91-0462470
(State or other jurisdiction of incorporation or organization) (I.R.S.Employer Identification No.)
1411 East Mission Avenue,Spokane,WA 99202-2600
(Address of principal executive offices,including zip code)
Registrant's telephone number,including area code:509-489-0500
Website:http://www.avistacorp.com
Securities registered pursuantto Section 12(b)ofthe Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock AVA NYSE
Securities registered pursuant to Section 12(g)ofthe Act:
Title of Class
Preferred Stock,Cumulative,Without Par Value
Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.
Yes ❑x No ❑
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)of the Act.
Yes ❑ No 0
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 thatthe Registrant was required to file such reports),and(2)has been subject to such filing requirements for the
past 90days: Yes ❑x 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 0232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).
Yes ❑x No ❑
Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a 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
ofthe Exchange Act.(Check one):
Large Accelerated Filer ❑x 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 pursuantto Section 13(a)ofthe Exchange Act.❑
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control
overfinancial reporting under Section 404(b)ofthe Sarbanes-Oxley Act(15 U.S.C.7262(b))bythe registered public accounting firm that prepared or issued its
audit report.❑x
If securities are registered pursuantto Section 12(b)ofthe Act,indicate by check mark whether the financial statements ofthe registrant included in the filing
reflectthe correction of an errorto previously issued financial statements.❑
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any ofthe registrant's executive officers during the relevant recovery period pursuantto§240.10D-1(b).❑
Indicate by check mark whetherthe Registrant is a shell company(as defined in Rule 12b-2 ofthe Exchange Act):
Yes ❑ No 0
The aggregate market value of the Registrant's outstanding Common Stock,no par value(the only class of voting stock),held by non-affiliates is$2,723,880,269
based on the last reported sale price thereof on the consolidated tape on June 30,2024.
As of January 31,2025,80,126,259 shares of Registrant's Common Stock,no par value(the only class of common stock),were outstanding.
Documents Incorporated By Reference
Document Part of Form 10-K into Which Document is Incorporated
Proxy Statementto be filed in connection with the annual Part III,Items 10,11,
meeting of shareholders to be held May 8,2025. 12,13 and 14
Prior to such filing,the Proxy Statement was filed in connection
with the annual meeting of shareholders held on May 1,2024.

INDEX
ITEM NO. PAGE NO.
Acronymsand Terms................................................................................................................................................................................................................ V
Forward-Looking Statements................................................................................................................................................................................................ 1
AvailableInformation............................................................................................................................................................................................................... 3
1. Business............................................................................................................................................................................................................................................ 4
CompanyOverview................................................................................................................................................................................................................... 4
AvistaUtilities............................................................................................................................................................................................................................ 5
General......................................................................................................................................................................................................................................... 5
ElectricOperations................................................................................................................................................................................................................... 5
ElectricRequirements........................................................................................................................................................................................................ 5
ElectricResources............................................................................................................................................................................................................... 5
HydroelectricLicenses....................................................................................................................................................................................................... 8
FutureResource Needs...................................................................................................................................................................................................... 8
NaturalGas Operations........................................................................................................................................................................................................... 10
UtilityRegulation....................................................................................................................................................................................................................... 12
Federal Laws Related to Wholesale Competition............................................................................................................................................................. 12
RegionalTransmission Planning............................................................................................................................................................................................ 12
RegionalEnergy Markets........................................................................................................................................................................................................ 13
ReliabilityStandards................................................................................................................................................................................................................ 13
Vulnerabilityto Cyberattack................................................................................................................................................................................................... 13
AvistaUtilities Operating Statistics..................................................................................................................................................................................... 14
AlaskaElectric Light and Power Company......................................................................................................................................................................... 17
Alaska Electric Light and Power Company Operating Statistics.................................................................................................................................. 18
OtherBusinesses...................................................................................................................................................................................................................... 19
1A. Risk Factors...................................................................................................................................................................................................................................... 19
1B. Unresolved Staff Comments........................................................................................................................................................................................................ 25
1C. Cybersecurity.................................................................................................................................................................................................................................. 25
2. Properties......................................................................................................................................................................................................................................... 26
AvistaUtilities............................................................................................................................................................................................................................ 26
AlaskaElectric Light and Power Company......................................................................................................................................................................... 27
3. Legal Proceedings.......................................................................................................................................................................................................................... 27
4. Mine Safety Disclosures............................................................................................................................................................................................................... 27
5. Marketfor Registrant's Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities........................................... 28
6. Removed and Reserved................................................................................................................................................................................................................. 28
7. Management's Discussion and Analysis of Financial Condition and Results of Operations....................................................................................... 28
BusinessSegments.................................................................................................................................................................................................................. 28
ExecutiveOverview.................................................................................................................................................................................................................. 28
RegulatoryMatters................................................................................................................................................................................................................... 29
Resultsof Operations—Overall............................................................................................................................................................................................. 32
Non-GAAP Financial Measures............................................................................................................................................................................................ 33
Resultsof Operations—Avista Utilities.............................................................................................................................................................................. 33
Results of Operations—Alaska Electric Light and Power Company............................................................................................................................ 38
Results of Operations—Other Businesses......................................................................................................................................................................... 38
m AVISTA

INDEX (continued)
ITEM NO. PAGE NO.
AccountingStandards to Be Adopted in 2025................................................................................................................................................................... 38
Critical Accounting Policies and Estimates........................................................................................................................................................................ 38
Liquidityand Capital Resources............................................................................................................................................................................................ 40
OverallLiquidity......................................................................................................................................................................................................................... 40
Review of Consolidated Cash Flow Statement.................................................................................................................................................................. 40
CapitalResources..................................................................................................................................................................................................................... 41
UtilityCapital Expenditures.................................................................................................................................................................................................... 43
Non-Regulated Investments and Capital Expenditures.................................................................................................................................................. 43
PensionPlan............................................................................................................................................................................................................................... 44
CreditRatings............................................................................................................................................................................................................................. 44
Dividends..................................................................................................................................................................................................................................... 44
Competition................................................................................................................................................................................................................................. 44
Economic Conditions and Utility Load Growth.................................................................................................................................................................. 45
Environmental Issues and Other Contingencies............................................................................................................................................................... 45
Colstrip.................................................................................................................................................................................................................................... 47
EnterpriseRisk Management................................................................................................................................................................................................. 48
7A. Quantitative and Qualitative Disclosures about Market Risk.............................................................................................................................................. 53
8. Financial Statements and Supplementary Data..................................................................................................................................................................... 53
Report of Independent Registered Public Accounting Firm(PCAOB ID No.34)....................................................................................................... 54
FinancialStatements................................................................................................................................................................................................................ 54
ConsolidatedStatements of Income.................................................................................................................................................................................... 56
Consolidated Statements of Comprehensive Income...................................................................................................................................................... 57
ConsolidatedBalance Sheets................................................................................................................................................................................................ 58
ConsolidatedStatements of Cash Flows............................................................................................................................................................................. 59
ConsolidatedStatements of Equity...................................................................................................................................................................................... 61
Notes to Consolidated Financial Statements................................................................................................................................................................ 62
Note 1.Summary of Significant Accounting Policies.................................................................................................................................................. 62
Note2.New Accounting Standards................................................................................................................................................................................ 67
Note3.Balance Sheet Components................................................................................................................................................................................ 68
Note4.Revenue................................................................................................................................................................................................................... 68
Note5.Leases....................................................................................................................................................................................................................... 72
Note6.Variable Interest Entities..................................................................................................................................................................................... 74
Note7.Equity Investments................................................................................................................................................................................................ 74
Note 8.Derivatives and Risk Management.................................................................................................................................................................... 75
Note 9.Jointly Owned Electric Facilities....................................................................................................................................................................... 79
Note10.Property,Plant and Equipment......................................................................................................................................................................... 80
Note11.Asset Retirement Obligations........................................................................................................................................................................... 81
Note 12.Pension Plans and Other Postretirement Benefit Plans............................................................................................................................ 81
Note13.Accounting for Income Taxes........................................................................................................................................................................... 87
Note14.Energy Purchase Contracts.............................................................................................................................................................................. 88
Note15.Short-Term Borrowings...................................................................................................................................................................................... 89
Note16.Long-Term Debt.................................................................................................................................................................................................... 90
Note 17.Long-Term Debtto Affiliated Trusts................................................................................................................................................................ 92
Note18.Fair Value............................................................................................................................................................................................................... 92
Note19.Common Stock...................................................................................................................................................................................................... 96
Note 20.Accumulated Other Comprehensive Loss..................................................................................................................................................... 97
Note21.Earnings per Common Share............................................................................................................................................................................. 97
Note 22.Commitments and Contingencies................................................................................................................................................................... 98
Note23.Regulatory Matters............................................................................................................................................................................................. 101
Note 24.Information by Business Segments................................................................................................................................................................ 104
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure..................................................................................... 106*
9A. Controls and Procedures.............................................................................................................................................................................................................. 106
9B. Other Information........................................................................................................................................................................................................................... 108
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections............................................................................................................................. 108
AVISTA

INDEX (continued)
ITEM NO. PAGE NO.
mvilaju L,
10. Directors,Executive Officers and Corporate Governance.................................................................................................................................................. 109
11. Executive Compensation.............................................................................................................................................................................................................. Ill
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.............................................................. ill
13. Certain Relationships and Related Transactions,and Director Independence.............................................................................................................. 112
14. Principal Accounting Fees and Services.................................................................................................................................................................................. 112
■
15. Exhibits,Financial Statement Schedules................................................................................................................................................................................. 113
ExhibitIndex............................................................................................................................................................................................................................... 114
Signatures................................................................................................................................................................................................................................... 122
*=not an applicable item in the 2024 calendar year for Avista Corp.
AVISTA

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
Avista Capital — Parent companyto 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 Washington,
Idaho,Oregon and Montana
BPA — Bonneville Power Administration
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,Washington
CCRs — Coal Combustion Residuals,also termed coal combustion byproducts or coal ash
CEIP — Clean Energy Implementation Plan,Washington
CETA — Clean Energy Transformation Act,Washington
CPP — Climate Protection Program,Oregon
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)
Coyote Springs 2 — The natural gas-fired combined-cycle Coyote Springs 2 Generating Plant located near Boardman,Oregon
COVID-19 — Coronavirus disease 2019,a respiratory illness that was declared a pandemic in March 2020
CT — Combustion turbine
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
AVISTA

ACRONYMS AND TERMS (continued)
(The following acronyms and terms are found in multiple locations within the document)
Acronym/Term Meaning
Ecology — The Washington State Department of Ecology
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 bythe utility commission in the state of Washington
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
GS — Generating station
Heating degree days — The measure of the coldness of weather experienced,based on the extentto which the average of high and
lowtemperatures for a day falls below 65 degrees Fahrenheit(annual degree days below historic indicate
warmer than average temperatures)
IPUC — Idaho Public Utilities Commission
IRP — Integrated Resource Plan
Jackson Prairie — Jackson Prairie Natural Gas Storage Project,an underground natural gas storage field located near
Chehalis,Washington
kV — Kilovolt(1000 volts):a measure of capacity on transmission lines
kW,kWh — Kilowatt(1000 watts):a measure of generating output or capability.Kilowatt-hour(1000 watt hours):
a measure of energy produced
Lancaster Plant — A natural gas-fired combined-cycle combustion turbine plant located in Idaho
MPSC — Public Service Commission of the State of Montana
MW,MWh — Megawatt:1000 kW.Megawatt-hour:1000 kWh
NERC — North American Electricity Reliability Corporation
NorthWestern — NorthWestern Corporation
Noxon Rapids — The Noxon Rapids Hydroelectric Generating Project,located on the Clark Fork River in Montana
OPUC — The Public Utility Commission of Oregon
m AVISTA

ACRONYMS AND TERMS (continued)
(The following acronyms and terms are found in multiple locations within the document)
Acronym/Term Meaning
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
PUD — Public Utility District
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
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)
or100,000 BTUs(energy)
WUTC — Washington Utilities and Transportation Commission
AVISTA

FORWARD-LOOKING STATEMENTS availability and costs of fuel,materials,equipment,supplies and
support services;
From time-to-time,we make forward-looking statements such as political unrest and/or conflicts between foreign nation-states,
statements regarding projected orfuture: which could disruptthe global,national and local economy,
• financial performance; result in increases in operating and capital costs,impact energy
• cash flows; commodity prices or our ability to access energy resources,create
• capital expenditures; disruption in supply chains,disrupt,weaken or create volatility in
• dividends; capital markets,and increase cyber and physical security risks.In
• capital structure; addition,any of these factors could negatively impact our liquidity
• other financial items; and limit our access to capital,among other implications;
• strategic goals and objectives; explosions,fires,accidents,mechanical breakdowns or other
• business environment;and incidents that could impair assets and may disrupt operations
• plans for operations. of our generation facilities,transmission,and electric and natural
gas distribution systems or other operations and may require us to
These statements are based upon underlying assumptions(many purchase replacement power or incur costs to repair our facilities;
of which are based,in turn,upon further assumptions).Such statements • interruptions in the delivery of natural gas by our suppliers,
are made both in our reports filed under the Securities Exchange Act including physical problems with pipelines themselves,can disrupt
of 1934,as amended(including this Annual Report on Form 10-K),and our service of natural gas to our customers and/or impair our
elsewhere.Forward-looking statements are all statements exceptthose ability to operate gas-fired electric generating facilities;
of historical fact including,without limitation,those identified bythe • explosions,fires,accidents or other incidents arising from or
use of words that include"will,""may,""could,""should,""intends," allegedly arising from our operations that could cause injuries
"plans,""aspires,""assumes,""targets,""seeks,""anticipates," to the public or property damage;
"estimates,""expects,""forecasts,""projects,""predicts,"and • blackouts or disruptions of interconnected transmission systems
similar expressions. (the regional power grid);
Forward-looking statements(including those made in this Annual • terrorist attacks,cyberattacks or other malicious acts that could
Report on Form 10-K)are subjectto a variety of risks,uncertainties disrupt or cause damage to our utility assets or to the national
and other factors.Most of these factors are beyond our control.Any of or regional economy in general,including effects of terrorism,
these factors may have a significant effect on our operations,results cyberattacks,ransomware,or vandalism that damage or disrupt
of operations,financial condition or cash flows,and could cause actual information technology systems;
results to differ materially from those anticipated in our statements. pandemics,which could disrupt our business,as well as the global,
Such risks,uncertainties and other factors include,among others: national and local economy,resulting in a decline in customer
demand,deterioration in the creditworthiness of our customers,
Utility Regulatory Risk increases in operating and capital costs,workforce shortages,
• state and federal regulatory decisions or related judicial decisions losses or disruptions in our workforce due to vaccine mandates,
that affect our ability to recover costs and earn a reasonable delays in capital projects,disruption in supply chains,and
return including,but not limited to,disallowance or delay in the disruption,weakness and volatility in capital markets.In addition,
recovery of capital investments,operating costs,commodity any of these factors could negatively impact our liquidity and limit
costs,the ordering of refunds to customers and discretion over our access to capital,among other implications;
allowed return on investment; • work-force issues,including changes in collective bargaining unit
• the loss of regulatory accounting treatment,which could require agreements,strikes,work stoppages,the loss of key executives,
the write-off of regulatory assets and the loss of regulatory availability of workers in a variety of skill areas,and our ability to
deferral and recovery mechanisms; recruit and retain employees;
• changes in the availability and price of purchased power,fuel and
Operational Risk natural gas,as well as transmission capacity;
• weather conditions,which affect both energy demand and electric • increasing costs of insurance,more restrictive coverage terms
generating capability,including the impact of precipitation and and our ability to obtain insurance;
temperature on hydroelectric resources,the impact of wind • delays or changes in construction costs,and/or our ability
patterns on wind-generated power,weather-sensitive customer to obtain required permits and materials for present or
demand,and similar impacts on supply and demand in the prospective facilities;
wholesale energy markets; • increasing health care costs and cost of health insurance provided
• wildfires ignited,or allegedly ignited,by our equipment or facilities to our employees and retirees;
could cause significant loss of life and property or result in liability • increasing operating costs,including effects of
for resulting fire suppression costs and/or damages,thereby inflationary pressures;
causing serious operational,reputational and financial harm; • third party construction of buildings,billboard signs,towers
• severe weather or natural disasters,including,but not limited to, or other structures within our rights of way,or placement of
avalanches,wind storms,wildfires,earthquakes,floods,extreme fuel containers within close proximity to our transformers
temperature events,snow and ice storms that could disrupt or other equipment,including overbuilding atop natural gas
energy generation,transmission and distribution,as well as the distribution lines;
AVISTA

• the loss of key suppliers for materials or services or other • changes in costs that impede our abilityto implement new
disruptions to the supply chain; information technology systems or to operate and maintain current
• adverse impacts to our Alaska electric utility(AEL&P)that could production technology;
result from an extended outage of its hydroelectric generating • insufficient technology skills,which could lead to the inability
resources or their inability to deliver energy,due to their lack of to develop,modify or maintain our information systems;
interconnectivityto other electrical grids and the availability or
cost of replacement power(diesel); Strategic Risk
• changing river or reservoir regulation or operations at • growth or decline of our customer base due to new uses for our
hydroelectric facilities not owned by us,which could impact services or decline in existing services,including,but not limited
our hydroelectric facilities downstream; to,the effect of the trend toward distributed generation
at customer sites;
Climate Change Risk • the potential effects of negative publicity regarding our business
• increasing frequency and intensity of severe weather or natural practices,whethertrue or not,which could hurt our reputation
disasters resulting from climate change that could disrupt and result in litigation or a decline in our common stock price;
energy generation,transmission and distribution,as well as the • changes in our strategic business plans,which could be affected
availability and costs of fuel,materials,equipment,supplies and by any or all of the foregoing,including the entry into new
support services; businesses and/or the exit from existing businesses and the
• change in the use,availability or abundancy of water resources extent of our business development efforts where potential future
and/or rights needed for operation of our hydroelectric facilities, business is uncertain;
including impacts resulting from climate change; wholesale and retail competition including alternative
• changes in the long-term climate and weather could materially energy sources,growth in customer-owned power resource
affect,among otherthings,customer demand,the volume and technologies that displace utility-supplied energy or may be
timing of streamflows required for hydroelectric generation, sold backto the utility,and alternative energy suppliers and
costs of generation,transmission and distribution.Increased or delivery arrangements;
new risks may arise from severe weather or natural disasters, non-regulated activities may increase earnings volatility and
including wildfires as well as their increased occurrence and result in investment losses;
intensity related to changes in climate; the risk of municipalization or otherforms of service
territory reduction;
Cybersecurity Risk
• cyberattacks on the operating systems used in the operation of External Mandates Risk
our electric generation,transmission and distribution facilities changes in environmental laws,regulations,decisions and
and our natural gas distribution facilities,and cyberattacks on policies,including,but not limited to,regulatory responses to
such systems of other energy companies with which we are concerns regarding climate change,efforts to restore anadromous
interconnected,which could damage or destroy facilities or fish in areas currently blocked by dams,more stringent
systems or disrupt operations for extended periods of time and requirements related to air quality,water quality and waste
result in the incurrence of liabilities and costs; management,present and potential environmental remediation
• cyberattacks on the administrative systems used in the costs and our compliance with these matters;
administration of our business,including customer billing and the potential effects of initiatives,legislation or administrative
customer service,accounting,communications,compliance and rulemaking atthe federal,state or local levels,including possible
other administrative functions,and cyberattacks on such systems effects on our generating resources,prohibitions or restrictions
of our vendors and other companies with which we do business, on new or existing services,or restrictions on greenhouse gas
resulting in the disruption of business operations,the release of emissions to mitigate concerns over climate changes,including
private information and the incurrence of liabilities and costs; future limitations on the usage and distribution of natural gas;
• political pressures or regulatory practices that could constrain
Technology Risk or place additional cost burdens on our distribution systems
• changes in technologies,possibly making some of the current through accelerated adoption of distributed generation or
technology we utilize obsolete or introducing new cybersecurity electric-powered transportation or on our energy supply sources,
risks and other new risks inherent in the use,by either us or our such as campaigns to halt fossil fuel-fired power generation
counterparties,of newtechnologies in the developmental stage and opposition to otherthermal generation,wind turbines or
including,without limitation,generative artificial intelligence; hydroelectric facilities;
• changes in the use,perception,or regulation of generative failure to identify changes in legislation,taxation and
artificial intelligence technologies,which could limit our ability regulatory issues that could be detrimental or beneficial to our
to utilize such technology,create risk of enhanced regulatory overall business;
scrutiny,generate uncertainty around intellectual property policy and/or legislative changes in various regulated areas,
ownership,licensing or use,or which could otherwise result including,but not limited to,environmental regulation,healthcare
in risk of damage to our business,reputation or financial results; regulations and import/export regulations;
• increasing costs due to potential tariffs applied to energy
commodities and/or equipment and materials;
AVISTA

Financial Risk • default or nonperformance on the part of parties from whom we
• our ability to obtain financing through the issuance of debt and/ purchase and/or sell capacity or energy;
or equity securities and access to our funds held with financial • potential environmental regulations or lawsuits affecting our
institutions,which could be affected by various factors including ability to utilize or resulting in the obsolescence of our power
our credit ratings,interest rates,other capital market conditions supply resources;
and global economic conditions; • explosions,fires,accidents,pipeline ruptures or other incidents
• changes in interest rates that affect borrowing costs,variable that could limit energy supply to our facilities or our surrounding
interest rate borrowing and the extentto which we recover territory,which could result in a shortage of commodities in the
interest costs through retail rates collected from customers; marketthat could increase the cost of replacement commodities
• volatility in energy commodity markets that affect our ability to from other sources;
effectively hedge energy commodity risks,including cash flow
impacts and requirements for collateral; Compliance Risk
• volatility in the carbon emissions allowances marketthat could • changes in laws,regulations,decisions and policies atthe federal,
result in increased compliance costs; state or local levels,which could materially impact both our
• changes in actuarial assumptions,interest rates and the actual electric and gas operations and costs of operations;and
return on plan assets for our pension and other postretirement • the abilityto comply with the terms of the licenses and permits
benefit plans,which could affect future funding obligations, for our hydroelectric or thermal generating facilities at cost-
pension and other postretirement benefit expense and the effective levels.
related liabilities;
• the outcome of legal proceedings and other contingencies; Our expectations,beliefs and projections are expressed in good
• economic conditions in our service areas,including the economy's faith.We believe they are reasonable based on,without limitation,
effects on customer demand for utility services; an examination of historical operating trends,our records and other
• economic conditions nationally may affectthe valuation of our information available from third parties.However,there can be no
unregulated portfolio companies; assurance that our expectations,beliefs or projections will be achieved
• declining electricity demand related to customer energy or accomplished.Furthermore,anyforward-looking statement speaks
efficiency,conservation measures and/or increased distributed only as of the date on which such statement is made.We undertake no
generation and declining natural gas demand related to obligation to update any forward-looking statement or statements to
customer energy efficiency,conservation measures and/or reflect events or circumstances that occur after the date on which such
increased electrification; statement is made orto reflectthe occurrence of unanticipated events.
• industry and geographic concentrations which could increase New risks,uncertainties and otherfactors emerge from time-to-time,
our exposure to credit risks due to counterparties,suppliers and and it is not possible to predict all such factors,nor can we assess the
customers being similarly affected by changing conditions; effect of each such factor on our business or the extent that any such
• deterioration in the creditworthiness of our customers; factor or combination of factors may cause actual results to differ
• activist shareholders may result in additional costs and resources materially from those contained in any forward-looking statement.
required in response to activist actions;
AVAILABLE INFORMATION
Energy Commodity Risk
• volatility and illiquidity in wholesale energy markets,including We file annual,quarterly and current reports and proxy
exchanges,the availability of willing buyers and sellers,changes statements with the SEC.The SEC maintains a website that contains
in wholesale energy prices that could affect operating income, these documents at www.sec.gov.We make annual,quarterly and
cash requirements to purchase electricity and natural gas, current reports and proxy statements available on our website,
value received for wholesale sales,collateral required of us by https://investor.avistacorp.com,as soon as practicable after
individual counterparties and/or exchanges in wholesale energy electronically filing these documents with the SEC.Except for SEC
transactions and credit risk from such transactions,and the filings or portions thereof specifically referred to in this report,
market value of derivative assets and liabilities; information contained on these websites is not part of this report.
© AVISTA

ITEM 1. Business us all and ensure we continue to provide exemplary and cost-effective
service.Focus areas for this strategy strive to:
COMPANY OVERVIEW • strengthen employee attraction,engagement,and retention,while
building a sense of community and purpose,
Avista Corp.,incorporated in the territory of Washington in 1889, • ensure safety and well-being through innovative programs,best
is primarily an electric and natural gas utility with certain other business practices,tools,and technology,
ventures.Our corporate headquarters is in Spokane,Washington,the • expand innovation disciplines,capabilities,and mindsets with
second-largest city in Washington.Spokane serves as the business, cross-departmental interactions and external networks to build
transportation,medical,industrial and cultural hub of the Inland the utility of the future.
Northwest region(eastern Washington and northern Idaho).Regional
services include government and higher education,medical services, The following is an overview of some of our key human capital
retail trade and finance.Through our subsidiaryAEL&P,we also provide initiatives intended to inspire engaged and thriving employees and other
electric utility services in Juneau,Alaska. stakeholders,such as our customers and business partners.
As of December 31,2024,we have two reportable business
segments as follows: Employee Attraction,Development and Retention
• Avista Utilities—an operating division of Avista Corp.,comprising We strive to hire and retain talented people who are innovative
the regulated utility operations in Washington,Idaho,Oregon and skilled so we can continue to provide safe,reliable and affordable
and Montana.Avista Utilities provides electric distribution and service to our customers and advance the Company atthe same time.
transmission,and natural gas distribution services in parts of We are focused on innovative recruiting and educational outreach to
eastern Washington and northern Idaho.Avista Utilities also organizations and schools to create greater awareness of the variety of
provides natural gas distribution service in parts of northeastern career opportunities available in our industry and atthe Company.We
and southwestern Oregon.Avista Utilities has electric generating continue to think creatively about how we reach outto our communities
facilities in Washington,Idaho,Oregon and Montana.Avista regarding employment opportunities,with a goal of attracting talented
Utilities also supplies electricity to a small number of customers individuals who can ultimately help advance the Company's objectives.
in Montana.Avista Utilities also engages in wholesale purchases Continuous learning plays a large part in fostering collaboration
and sales of electricity and natural gas as an integral part of and innovation among our employees and is pervasive throughout
energy resource management and its load-serving obligation. the Company.Development opportunities are created to prepare our
• AEL&P—a regulated utility providing electric services in employees at all levels to ensure they have the skills,knowledge and
Juneau,Alaska that is a wholly owned subsidiary and the primary experience to perform today and well into the future.Keeping our
operating subsidiary of AERC. workforce equipped to succeed is imperative to meet the emerging
challenges that lay ahead.We develop training that is relevant,
We have other businesses,including venture fund investments, necessary and in demand for our organization.Training is delivered
real estate investments,as well as certain other investments made through instructor-led courses,self-service topics,computer-based
by Avista Capital,which is a direct,wholly owned subsidiary of Avista learning modules,and field-based,hands-on workshop models
Corp.These activities do not represent a reportable business segment covering the range of our operations.Training programs include
and are conducted byvarious direct and indirect subsidiaries of craft apprenticeship programs,engineering development programs,
Avista Corp. leadership development,communication skills,cross-functional
Total Avista Corp.shareholders'equitywas$2.6 billion as of learning and othertopics.We also provide opportunities for our
December 31,2024,which includes a$139 million investment in Avista employees to attend industry events and certification programs,
Capital and a$123 million investment in AERC. courses or programs offered through energy-related organizations
See"Note 24 of the Notes to Consolidated Financial Statements" such as the Western Energy Institute,the American Gas Association
for information with respectto the operating performance of each and the Edison Electric Institute,as well as through our local colleges
business segment(and other subsidiaries). and universities.
Human Capital Workplace Safety
On December 31,2024,Avista Utilities employed 1,950 individuals Safety and well-being are an essential part of our Company's
with bargaining unit employees comprising 36 percent of our mission and a key strategy to support our employees through innovative
overall workforce. programs,best practices,tools and technology.A variety of programs
Our approach to people is a critical strategyto inspire engaged and initiatives are in place to help employees complete theirwork safely
and thriving employees by empowering a high-performing organization through heightened vigilance,hazard recognition,defensive strategies,
where employees are valued,respected and have opportunities to grow. lessons learned,human and organizational performance and other tools
Among other things,this strategy supports hiring talented people and intended to ensure resilience in varying and unpredictable conditions.
equipping them with capabilities,tools and a culture that empowers We work with our employees to reinforce personal responsibility
them to pursue great ideas—ideas that engage the imagination,stretch regarding safety and health,and to implement measures to create and
maintain a safe work environment.
AVISTA

AVISTA UTILITIES This optimization process includes entering into hedging
transactionsto manage risks.Transactions include both physical energy
General contracts and related derivative instruments,and the terms range from
Atthe end of 2024,Avista Utilities supplied retail electric service intra-hour up to multiple years.
to approximately 422,000 customers and retail natural gas service Avista Utilities'generation assets are interconnected through the
to approximately 383,000 customers across its service territory. regional transmission system and are operated on a coordinated basis
Avista Utilities'service territory covers 30,000 square miles with a to enhance load-serving capability and reliability.We acquire both long-
population of 1.7 million. term and short-term transmission capacityto facilitate our energy and
capacity transactions.We provide transmission and ancillary services
Electric Operations in eastern Washington,northern Idaho and western Montana.
General
Avista Utilities generates,transmits and distributes electricity, Electric Requirements
serving electric customers in eastern Washington and northern Idaho Avista Utilities'peak electric native load requirementfor 2024
and a small number of customers in Montana. was 1,869 MW,which occurred on January 13,2024.In 2023,our peak
Avista Utilities generates electricity from facilities that we electric native load was 1,809 MW,which occurred during the summer,
own and purchases capacity,energy and fuel for generation under and in 2022,it was 1,860 MW,which occurred during the winter.
long-term and short-term contracts to meet customer load obligations.
We also sell electric capacity and energy,as well as surplus fuel in Electric Resources
the wholesale market in connection with our resource optimization Avista Utilities has a diverse electric resource mix of
activities as described below. Company-owned and contracted hydroelectric,thermal,wind and
As part of Avista Utilities'resource procurement and management solar generation facilities,and other contracts for power purchases
operations in the electric business,we engage in an ongoing process and exchanges.As of December 31,2024,Avista Utilities'electric
of resource optimization,which involves the selection from available generation resource mix(including contracts for power purchases)
energy resources to serve our load obligations and the use of these was approximately 44 percent hydroelectric,43 percent thermal and
resources to capture economic value through wholesale market 13 percent other renewables.See"Item 2.Properties"for detailed
transactions.These include sales and purchases of electric capacity information on Company-owned generating facilities and a detailed list
and energy,fuel for electric generation,and derivative contracts related of our PPAs.
to capacity,energy,fuel and fuel transportation.Such transactions
are part of the process of matching available resources with load Hydroelectric Resources
obligations and hedging a portion of the related financial risks. Avista Utilities owns and operates Noxon Rapids and Cabinet
To implementthis process,we make continuing projections of: Gorge on the Clark Fork River and six smaller hydroelectric projects
• electric loads at various points in time(ranging from intra-hour on the Spokane River.Hydroelectric generation is typically our
to multiple years)based on,among otherthings,estimates of lowest cost source per MWh of electric energy and the availability of
customer usage and weather,historical data,contractterms,and hydroelectric generation has a significant effect on total power supply
emerging trends and climate modeling results, costs.Under normal streamflow and operating conditions,we estimate
• resource availability atthese points in time based on,among other thatwe would be able to meet approximately one-half of ourtotal
things,fuel choices and fuel markets,estimates of snowpack and average electric requirements(both retail and long-term wholesale)
streamflows,availability of generating units,historic and forward with the combination of our hydroelectric generation and long-term
market information,contractterms and experience,and hydroelectric purchase contracts(including those with certain PUDs in
• carbon costs associated with emission reduction legislation the state of Washington and Columbia Basin Hydropower).Our estimate
and policy. of normal annual hydroelectric generation for 2025(including resources
purchased under long-term hydroelectric contracts with certain PUDs)
Based on these projections,we make purchases and sales of is 621.5 aMW(or 5.44 million MWhs).
electric capacity and energy,fuel for electric generation,and related See"Item 2.Properties—Avista Utilities"for the present
derivative contracts to match expected resources to expected electric generating capabilities of the above hydroelectric resources.
load requirements and reduce our exposure to electricity(or fuel)
market price changes.The process of resource optimization involves
scheduling and dispatching available resources as well as the following:
• purchasing fuel for generation,
• when economical,selling fuel and substituting wholesale electric
purchases,and
• other wholesale transactions to capture the value of generating
resources,transmission contract rights and fuel delivery
(transport)capacity contracts.
© AVISTA

The following graph shows Avista Utilities'hydroelectric generation Thermal Resources
(in thousands of MWhs)during the year ended December 31: Avista Utilities owns the following thermal generating resources:
• the combined cycle natural gas-fired CT,known as Coyote Springs
HYDROELECTRIC GENERATION 2,located near Boardman,Oregon,
• a 15 percent interest in Units 3&4 of Colstrip,a coal-fired boiler
6000 generating facility located in southeastern Montana.We have
an agreement to transfer our ownership to NorthWestern at
5,245 the end of 2025;see"Note 22 of the Notes to Consolidated
5000 — Financial Statements"for discussion of our Colstrip agreement
with NorthWestern,
4,162 • a wood waste-fired boiler generating facility known as the Kettle
4000 —
4,008 Falls GS in northeastern Washington,
• a two-unit natural gas-fired CT generating facility in northeastern
Spokane(Northeast CT),
• a two-unit natural gas-fired CT generating facility in northern
3000 — Idaho(Rathdrum CT),and
o • two small natural gas-fired generating facilities(Boulder Park GS
2000 — and Kettle Falls CT).
Coyote Springs 2,which is operated by Portland General Electric
Company,is supplied with natural gas under a combination of term
1000 — contracts and spot market purchases,including transportation
agreements with bilateral renewal rights.
Colstrip,which is operated byTalen,is supplied with fuel
0 2024 2023 2022 from adjacent coal reserves under coal supply and transportation
agreements.Several of the co-owners of Colstrip,including us,have
Long-term hydroelectric contracts a coal contractthat runsthrough December 31,2025.See"Item 7.
Management's Discussion and Analysis—Colstrip"for discussion
Spokane River Projects regarding environmental and other issues surrounding Colstrip.
The primary fuel forthe Kettle Falls GS is wood waste generated
Cabinet Gorge as a by-product and delivered by trucks from forest industry operations
within 100 miles of the plant.A combination of long-term contracts
Noxon Rapids and spot purchases has provided,and is expected to meet,fuel
requirements forthe Kettle Falls GS.
— Normal hydroelectric generation") The Northeast CT,Rathdrum CT,Boulder Park GS and Kettle
Falls CT generating units are primarily used to meet peaking electric
requirements.We also operate these facilities when marginal costs are
(1) Normal hydroelectric generation is determined by reference to the effectof below prevailing wholesale electric prices.These generating facilities
upstream dam regulation on median natural water flow.Natural water flow have access to natural gas supplies that are adequate to meet their
is the flow of the rivers without the influence of dams,whereas regulated respective operating needs.
water flow reflects water flow changes from upstream dams due to releasing In addition to the resources we own listed above,we have a PPA
or holding back water.The calculation of normal varies annually due to the for the output from the Lancaster Plant through December 31,2041.
timing of upstream dam regulation throughout the year,as well as changes in The Lancaster Plant is a 270 MW natural gas-fired combined cycle
PUD contracts. combustion turbine plant located in northern Idaho,owned by an
unrelated third-party.Under the terms of the PPA,we make the
dispatch decisions,provide all natural gas fuel and receive all electric
energy output.Therefore,we consider the Lancaster Plant to be a
baseload resource.See"Note 5 of the Notes to Consolidated Financial
Statements"for further discussion of this PPA.
See"Natural Gas Operations—Natural Gas Supply"for
information regarding our supply of natural gas for both fuel and delivery
to natural gas customers.
See"Item 2.Properties—Avista Utilities"forthe present
generating capabilities of the above thermal resources.
AVISTA

The following graph shows Avista Utilities'thermal generation(in Wind Resources
thousands of MWhs)during the year ended December 31: We have exclusive rights to the capacity of Palouse Wind,a wind
generation project developed,owned and managed by an unrelated
THERMAL GENERATION third-party and located in Whitman County,Washington.Underthe
PPA,we purchase the power and renewable attributes produced by
7000 6,890 the project at a fixed price per MWh with a fixed escalation of the price
6,365 I over the term of the agreement.We have an annual option to purchase
the wind project,which we have not exercised.The purchase price is a
6000— 5,708 fixed price per kW of in-service capacity with a fixed decline in the price
per kW over the remaining term of the PPA.
5000 — We have exclusive rights to the capacity of Rattlesnake Flat Wind
project developed,owned and managed by an unrelated third party and
■ located in Adams County,Washington.We purchase the power and
y 4000 renewable attributes produced bythe project at a fixed price per MWh
with a fixed escalation of the price overthe term of the agreement.
N
3000 See"Item 2.Properties"for a detailed list of our PPAs.
Solar Resources
2000 We have exclusive rights to the capacity of the Lind Solar Farm,
a solar generation project developed,owned and managed by an
unrelated third-party and located in Lind,Washington.Under a PPA,we
1000— purchase the power and renewable attributes produced by the project
at a fixed price per MWh.
0 See"Item 2.Properties"for a detailed list of our PPAs.
2024 2023 2022
Other Purchases,Exchanges and Sales
Northeast CT,Rathdrum CT, In addition to the resources described above,we purchase
Boulder Park GS and Kettle Falls CT and sell power under various long-term contracts,and we enter into
short-term purchases and sales.Further,pursuant to The Public
Kettle Falls GS Utility Regulatory Policies Act of 1978,as amended,we are required
to purchase generation from qualifying facilities.This includes,among
Colstrip other resources,hydroelectric projects,cogeneration projects and wind
generation projects at rates approved by the WUTC and the IPUC.
Lancaster Plant PPA See"Avista Utilities Electric Operating Statistics—Electric
Operations"below for annual quantities of purchased power,wholesale
Coyote Springs 2 power sales and power from exchanges in 2024,2023 and 2022.
See"Electric Operations"above for additional information on the use
of wholesale purchases and sales as part of our resource optimization
process and see"Future Resource Needs"below forthe magnitude of
these power purchase and sales contracts in future periods.
AVISTA

Regional Capacity Issues The FERC grants hydroelectric licenses,and relicenses,only after
Purchases of capacity and energy at anytime are dependent a multi-year process involving public hearings and input from multiple
upon the availability of excess capacity in the west region atthat time. federal,state and local government agencies,tribes,non-governmental
Many coal-fired electric generating stations throughoutthe western organizations,private landowners and other stakeholders.The FERC
United States are scheduled for retirement in the next several years. must find that the proposed project will be best adapted to a
Depending upon a variety of factors,these retirements could have an comprehensive plan for the waterway,taking into account the needs
impact upon the availability and price of purchased power in,and the of power development,fish and wildlife,irrigation,flood control,
dynamics of,the market in which we conduct our wholesale purchases water supply,recreation and other competing uses,and licenses(and
and sales.After December 31,2025,we are prohibited by Clean Energy relicenses)must be conditioned on appropriate protection,mitigation
Transformation Act(CETA)from using energy produced by coal-fired and enhancement measures.
plants to serve our retail customers in Washington.We entered into an Generally,upon the expiration of a license,(1)the FERC could
agreement with NorthWestern to transfer our interest in Colstrip atthe grant a new license upon terms determined atthattime,(2)the United
end of 2025.To the extent necessary,we will obtain energy produced States could take over the project,orthe FERC could issue a new
by other regional resources.See"Item 7.Management's Discussion license to a new licensee,upon paymentto the licensee of the lesser
and Analysis—Environmental Matters and Contingencies—Climate of the licensee's"net investment"in,orthe"fair value"of,the project,
Change—Washington Legislation and Regulatory Actions—Clean plus severance damages,or(3)under the FERC's interpretation of
Energy Transformation Act"and"Colstrip." the FPA,the FERC could order the decommissioning of the project.
In addition to retirement of coal-fired generating stations,some There is no assurance that any existing license will be renewed
hydroelectric and other generation plants in the region are being upon its expiration or,if renewed,thatthe renewal would be without
considered for possible closure due to environmental and other significant modifications.
concerns.The reduction of regional generating capacitywill have
to be offset by the addition of new generating resources and energy Future Resource Needs
storage facilities. Avista Utilities has operational strategies to provide sufficient
resources to meet our energy requirements under a range of operating
Hydroelectric Licenses conditions.These operational strategies considerthe amount of energy
Avista Corp.is a licensee underthe Federal Power Act(FPA)as needed,which varies because of the factors that influence demand over
administered bythe FERC,which includes regulation of hydroelectric intra-hour,hourly,daily,monthly and annual durations.Our average
generation resources.Excluding the Little Falls Hydroelectric hourly load was 1,117 aMW in 2024,1,115 aMW in 2023 and 1,142 aMW
Generating Project(Little Falls),our other seven hydroelectric plants in 2022.
are regulated by the FERC through two project licenses.
Cabinet Gorge and Noxon Rapids are under one 45-year FERC
license expiring in 2046.This license embodies a settlement agreement
relating to project operations and resource protection and mitigation
efforts over the license term.
Five of our six hydroelectric projects on the Spokane River
(Long Lake,Nine Mile,Upper Falls,Monroe Street and Post Falls)
are under one 50-year FERC license expiring in 2059 and are referred
to collectively as the Spokane River Project.The license includes
numerous natural and cultural resource protection measures that are
subjectto ongoing regulatory interpretation.The sixth,Little Falls,is
operated under separate Congressional authority and is not licensed
by the FERC.It is the subject of a 50-year agreement with the Spokane
Tribe,expiring in 2044.
AVISTA

The following graph shows our forecast of our average annual energy requirements and our available resources for 2025 through 2028,as included
in our 2025 Electric IRP:
FORECASTED ELECTRIC ENERGY REQUIREMENTS AND RESOURCES
1800 — 1,716
1,624 1,617 1,617
lsoo — � —
1400 —
1200 — 1,172 1,165 1,172 1,175
1000 —
800 —
600 —
400 —
200 —
0
Requirements Resources Requirements Resources Requirements Resources Requirements Resources
2025 2025 2026 2026 2027 2027 2028 2028
Requirements Resources
System load"' Additional available energy'Z'
Other contracts for power purchases'''
Company-owned and contract hydro generation'"'
Company-owned and contractthermal generation'Sj
(1) Forecastsystem load does not include the addition of large load customers,which could increase system load and require additional resources,as contemplated in our
2025 Electric IRP.
(2) Estimated available energy production from Company-owned Boulder Park GS,Kettle Falls CT Northeast CT and Rathdrum CT resources.
(3) Other contracts for power purchases includes power purchase agreements for solar and wind energy.
(4) The forecast assumes near normal hydroelectric generation.
(5) Includes the Lancaster Plant PPA.Excludes Boulder Park GS,Kettle Falls CT,Northeast CT and Rathdrum CT,as these are considered peaking facilities and are generally
not used to meet our base load requirements.
We are required to file an Integrated Resource Plan(IRP)or • Customer energy demand is expected to grow an average of 0.9
Washington Progress Report with the WUTC and IPUC everytwo years. percent per year overthe next 20 years and an average of winter
The WUTC and IPUC reviewthe IRP and give the public the opportunity peak demand by 1.12 percent per year overthe next 20 years.
to comment.The WUTC and IPUC do not approve or disapprove of the • The 66 MW Northeast CTwill be retired in 2030.
content in the IRP;rather,they acknowledge thatthe IRP was prepared • Energy efficiency reduces future demand growth by 32 percent
in accordance with applicable standards if that is the case.The IRP over 20 years.
details projected growth in demand for energy and the new resources • Demand response programs reduce peak demand by up to
needed to serve customers over the next 20 years.We regard the IRP 4 percent.
as a tool for resource evaluation,rather than an acquisition plan for a • Identifies the proposed North Plains Connector transmission line
particular project. as a preferred resource alternative along with other transmission
In December 2024,we filed our 2025 Electric IRP with the WUTC upgrades in the inland northwest.
and the IPUC. • We are projected to exceed CETA's requirements to be
Highlights of the 2025 Electric IRP include the following greenhouse gas neutral with Washington's electric supply
expectations and/or assumptions: by 2030.
• Due to customer growth and loss of capacity resources,the • Meeting CETA's 2045 targets will require significant energy
Company will need to acquire additional electricity generation to transformation including maintaining our existing hydroelectric
serve peak loads.Our preferred resource strategy calls for the system and acquiring new energy resources which could include
addition of approximately 490 MW of generating capacity by 2030 using hydrogen-based fuels,wind,solar and nuclear,and will
and a total of approximately 950 MW to be added through 2035. include long term energy storage.
n AVISTA

We are subject to the Washington State Energy Independence Act, Situational awareness is designed to help us identify and
which requires us to obtain a portion of our electricity from qualifying respond to risk,including the fire risk maps,a fire weather dashboard,
renewable resources or through purchase of RECs and acquiring all and installation of wildfire identification cameras and localized
cost effective energy efficiency measures.Future generation resource weather stations.
decisions will be affected by legislation for restrictions on greenhouse Operations and response measures are focused on automating
gas emissions and renewable energy requirements. our system to allow remote control and operation of key equipment
See"Item 7.Management's Discussion and Analysis of Financial including fire safety mode automation devices as well as fire safety
Condition—Environmental Issues and Contingencies"and"Colstrip"for mode and Public Safety Power Shutoff operations during critical
information related to existing and proposed laws and regulations,and fire weather,as well as expedited response agreements and other
issues relating to Colstrip. partnerships and relationships with external agencies such as
Additional generating resources required will either be owned first responders.
by us or be owned by other parties who will sell us the capacity and In 2024,we spent$34 million in capital and$18 million in
energy under PPAs.The decision as to ownership will be made as to operating expenses on wildfire resiliency and we expect similar levels
each project at the appropriate time and will depend on,among other of expenditures in 2025.The IPUC and WUTC approved deferral and
things,the type of project and the related economics,including tax and recovery of certain operating expenses of the wildfire resiliency plan,
ratemaking treatment. and we will continue to seek recovery of costs in future rate filings.
See"Note 22 of the Notes to Consolidated Financial Statements"
Electric Clean Energy Goals for further discussion on wildfires.
We have an aspirational goal to serve our customers with 100
percent clean electricity by 2045.To help achieve this goal and add to Natural Gas Operations
our clean electricity portfolio,we have implemented renewable energy General
projects,including entering into various PPAs for solar,wind and Avista Utilities provides natural gas distribution services to
hydroelectric resources.These resources are in addition to our existing retail customers in parts of eastern Washington,northern Idaho,and
clean hydroelectric generation,biomass generation,and additional wind northeastern and southwestern Oregon.
and solar projects. Market prices for natural gas,like other commodities,can be
To achieve our clean energy goals,we expect energy storage volatile.Our natural gas procurement strategy is to provide a reliable
and other technologies,which are either not currently available or supplyto our customers with some level of price certainty.We procure
are not cost-effective under the lowest reasonable cost regulatory natural gas from various supply basins and over varying time periods.
standard,will advance to allow us to meet our goals while maintaining The resulting portfolio is a diversified mix of forward fixed price
reliability and affordability for our customers.If the required technology purchases,index and spot market purchases,and utilizing physical and
is not available or not affordable in the future,we may not meet our financial derivative instruments.We also use natural gas storage to
goals in the desired timeframe.Meeting our clean energy goals support high demand periods and the procurement of natural gas when
may also require accommodation from regulatory agencies.See the prices may be lower.Securing prices throughoutthe year and even into
discussion under"Electric Resources"for more information on our subsequent years provides a level of price certainty and can mitigate
existing clean electricity sources and efforts to achieve these goals. price volatility to customers between years.
See"Item 7.Management's Discussion and Analysis of Financial Weather is a key component of our natural gas customer load.
Condition—Environmental Issues and Contingencies"for further This load is highly variable and daily natural gas loads can differ
discussion on clean energy,including applicable regulations. significantly from the monthly forecasted load projections.We make
continuing projections of our natural gas loads and assess available
Wildfire Resiliency Plan natural gas resources.Based on these projections,we plan and execute
We have a wildfire resiliency plan focused on four primary areas: a series of transactions to hedge a portion of our customers'projected
transmission and distribution system hardening,enhanced vegetation natural gas requirements through forward market transactions and
management,situational awareness,and operations and response. derivative instruments.These transactions may extend for multiple
Grid hardening involves investing in electric infrastructure to years into the future.We also leave a portion of our natural gas supply
reduce spark-ignition outage events and to protect critical assets from requirements unhedged for purchase in the short-term spot markets.
the impact of wildfires atthe distribution level,including replacing
wood crossarms with fiberglass,replacing small wire,adding
protective devices,undergrounding,and more.We also invest at the
transmission level,replacing wood poles with steel or wrapping them
with a fire-resistant protective cover in high fire risk areas.We are also
developing an enhanced grid hardening program which may involve
undergrounding high fire risk sections of the distribution system.
Enhanced vegetation management involves risktree inspection in
non-urban areas,the addition of digital data collection,fuel reduction
partnerships,and safe tree programs.We also had a third-party study
the effectiveness of this program and the preferred inspection cycle.
AVISTA m

As part of the process of balancing natural gas retail load natural gas customer demands from domestic sources and 75 percent
requirements with resources,we engage in the wholesale purchase and from Canadian sources.Natural gas prices in the Pacific Northwest
sale of natural gas.We plan for sufficient natural gas delivery capacity are affected by global energy markets,as well as supply and demand
to serve our retail customers for a theoretical peak day event.We factors in other regions of the United States and Canada.Future prices
generally have more pipeline and storage capacitythan what is needed and delivery constraints may cause our resource mixto vary.
during periods otherthan a peak day.We optimize our natural gas
resources by using market opportunities to generate economic value Natural Gas Storage
that helps mitigate fixed costs.Wholesale sales are delivered through Avista Utilities owns a one-third interest in Jackson Prairie,an
wholesale market facilities outside of our natural gas distribution underground aquifer natural gas storage field located near Chehalis,
system.Natural gas resource optimization activities include,but are not Washington.Jackson Prairie has a total peak day deliverability of
limited to: 12 million therms,with a total working natural gas capacity of 256 million
• wholesale market sales of surplus natural gas supplies, therms.Our share is one-third of the peak day deliverability and total
• purchases and sales of natural gas to optimize use of pipeline and working capacity.We also contract for additional storage capacity and
storage capacity,and delivery at Jackson Prairie from Northwest Pipeline for a portion of their
• participation in the transportation capacity release market. one-third share of the storage project.
We optimize our natural gas storage capacity throughout the year
We also provide distribution transportation service to qualified, by executing transactions that capture favorable market price spreads.
large commercial and industrial natural gas customers who purchase Natural gas buyers identify opportunities to purchase lower cost
natural gas through third-party marketers.For these customers,we natural gas in the immediate term to inject into storage,and then sell
receive their purchased natural gas from such third-party marketers the gas in a forward marketto be withdrawn later.The reverse of this
into our distribution system and deliver itto the customers'premises. type of transaction also occurs.These transactions lock in incremental
These customers generally pay the same rates as other customers in value for customers.Jackson Prairie is also used as a variable peaking
the same class,without charge for the cost of the natural gas delivered. resource,and to protect from extreme daily price volatility during cold
Optimization transactions that we engage in throughoutthe year weather or other events affecting the market.
are included in our annual purchased gas cost adjustment filings with
the various commissions and are subjectto reviewfor prudence during Future Resource Needs
this process. In March 2023,we filed our 2023 Natural Gas IRP with the WUTC,
the IPUC and the OPUC.The IRP details projected growth in demand for
Natural Gas Clean Energy Goals energy and the new resources needed to serve customers over the next
We have an aspirational goal for our natural gas operations to 20 years.We regard the IRP as a tool for resource evaluation,rather
be carbon neutral by 2045.Examples of carbon emissions reduction than an acquisition plan for a particular project.
strategies include the following: Highlights of the 2023 natural gas IRP include the following
• diversify ortransition from fossil fuel-based natural gas to expectations and/or assumptions:
renewable natural gas, • We anticipate having sufficient natural gas resources to meet
• reduce natural gas consumption via conservation,energy expected loads with our current transportation contracts for
efficiency and new technologies,and natural gas.
• purchase carbon offsets as necessary. • Customer forecasts are increasingly difficultto model due to a
variety of rules and codes.
See"Item 7.Management's Discussion and Analysis of Financial • Emissions compliance with various environmental laws greatly
Condition—Environmental Issues and Contingencies"for further impact our resource strategy,including the use of renewable
discussion on clean energy,including applicable regulations. natural gas,synthetic methane,and credits or allowances.
We have several contracts for RNG to purchase an • Our Idaho preferred resource strategy continues to utilize a least
expected output of approximately 9.7 million therms annually from cost basis.
various projects.
We monitor these assumptions on an on-going basis and adjust
Natural Gas Supply our resource requirements accordingly.
We purchase natural gas,for both fuel for generation and See"Item 7.Management's Discussion and Analysis of Financial
deliveryto natural gas customers,in wholesale markets and are Condition—Environmental Issues and Contingencies"for further
connected to multiple supply basins in the western United States and discussion of environmental laws,including impacts to our business.
Canada through firm capacity transportation rights on six different We are required to file a natural gas IRP everytwo years and we
pipeline networks.Access to this diverse portfolio of natural gas anticipate our next IRP to be filed in 2025.
resources allows for natural gas procurement decisions that benefit
our natural gas customers.These interstate pipeline transportation
rights provide the capacity to serve approximately 25 percent of peak
m AVISTA

Utility Regulation regulation(including power cost deferrals,purchased gas adjustments
As a public utility,Avista Corp.is subjectto regulation by state and decoupling mechanisms),depreciation and deferred income taxes.
utility commissions for retail electric and natural gas rates,accounting, See"Item 7.Management's Discussion and Analysis—Regulatory
the issuance of securities and other matters.The retail electric and Matters"for information on general rate cases.
natural gas operations are subjectto the jurisdiction of the WUTC,
IPUC,OPUC and MPSC.Approval of the issuance of securities is not Federal Laws Related to Wholesale Competition
required from the MPSC.We are subjectto the jurisdiction of the FERC Federal law promotes practices thatfoster competition in
for licensing of hydroelectric generation resources,and for electric the electric wholesale energy market.The FERC requires electric
transmission services and wholesale sales. utilities to transmit power and energyto or forwholesale purchasers
Since Avista Corp.is a"holding company"(in addition to being and sellers,and requires electric utilitiesto enhance or construct
itself an operating utility),we are subjectto the jurisdiction of the FERC transmission facilities to create additional transmission capacity
underthe Public Utility Holding Company Act of 2005,which imposes forthe purpose of providing these services.Public utilities(through
certain reporting and record-keeping requirements on Avista Corp.and subsidiaries or affiliates)and other entities may participate in the
its subsidiaries.We and our subsidiaries are required to make books development of independent electric generating plants for sales to
and records available to the FERC and the state utility commissions.In wholesale customers.
addition,upon the request of any jurisdictional state utility commission, Public utilities operating underthe FPA are required to provide
the FERC would have the authority to review assignment of costs open and non-discriminatory access to their transmission systems to
of non-power goods and administrative services among us and our third parties and establish an Open Access Same-Time Information
subsidiaries.The FERC has the authority generally to require that rates System to provide an electronic means by which transmission
subjectto its jurisdiction be just and reasonable and,in this context, customers can obtain information about available transmission capacity
would continue to be able to,among other things,review transactions of and purchase transmission access.The FERC also requires each public
an affiliated company. utility subject to the rules to operate its transmission and wholesale
Our rates for retail electric and natural gas services(other than power merchant operating functions separately and to comply with
specially negotiated retail rates for industrial or large commercial standards of conduct designed to ensure that all wholesale users,
customers,which are subjectto regulatory review and approval)are including the public utility's power merchant operations,have equal
generally determined on a"cost of service"basis.Retail rates are access to the public utility's transmission system.Our compliance with
designed to provide an opportunity to recover allowable operating these standards has not had a substantive impact on the operation,
expenses and earn a return of and a reasonable return on"rate base." maintenance and marketing of our transmission system or our abilityto
Rate base is generally determined by reference to the original cost provide service to customers.
(net of accumulated depreciation)of utility plant in service,subjectto See"Item 7.Management's Discussion and Analysis—
various adjustments for deferred income taxes and other items and Competition"for further information,as well as"Note 22 of the Notes to
subjectto possible reduction to the extentthat a regulatory commission Consolidated Financial Statements"for discussion of a complaint filed
finds that part of an investment was imprudent.Overtime,rate base with the FERC regarding transmission planning.
is increased by additions to utility plant in service and reduced by
depreciation and write-offs as authorized/ordered by the utility Regional Transmission Planning
commissions.Our operating expenses and rate base are allocated or Beginning with FERC Order No.888 and continuing with
directly assigned to five regulatory jurisdictions:electric in Washington subsequent rulemakings and policies,the FERC has encouraged better
and Idaho,and natural gas in Washington,Idaho and Oregon.In general, coordination and operational consistency aimed to capture efficiencies
requests for new retail rates are made based on revenues,operating that might otherwise be gained through the formation of a Regional
expenses and net investment for a test year that ended prior to the Transmission Organization or an independent system operator.
date of the request,subjectto possible adjustments,which differ We meet our FERC requirements to coordinate transmission
among the various jurisdictions,designed to ref lectthe expected planning activities with other regional entities through NorthernGrid.
revenues,operating expenses and net investment during the period Launched in 2020,NorthernGrid is an association of all major
new retail rates will be in effect.The retail rates approved by the state transmission providers throughout the Pacific Northwest and
commissions in a rate proceeding may not provide sufficient revenues Intermountain West,with facilities in California,Idaho,Montana,
to provide recovery of costs and a reasonable return on investment Oregon,Utah,Washington and Wyoming.Through our participation in
for a number of reasons,including,but not limited to,ongoing capital NorthernGrid,we meet the regional transmission planning requirements
expenditures and unexpected changes in revenues and expenses of FERC Order Nos.890 and 1000,and follow-on orders.NorthernGrid
following the time new retail rates are requested in the rate proceeding and its members also work with other western organizations,including
(known as"regulatory lag"),the denial by the commission of recovery, WestConnect and the California Independent System Operator
or timely recovery,of certain expenses or investment and the limitation (CAISO),to address broader interregional planning.Neither the costs
by the commission of the authorized return on investment. nor requirements of participating in NorthernGrid's coordinated
Our rates for wholesale electric sales and electric transmission transmission planning activities are expected to materially impact our
services,as well as certain natural gas transportation services,are operations or financial performance.
based on either"cost of service"principles or market-based rates
as set forth by the FERC.See"Notes 1,13 and 23 of the Notes to
Consolidated Financial Statements"for additional information about
AVISTA

Regional Energy Markets Vulnerability to Cyberattack
The CAI SO operates the Western Energy Imbalance Market The energy sector,including electric and natural gas utility
(EIM)in the western United States.All investor-owned utilities in the companies,has become the subject of cyberattacks with increased
Pacific Northwest are participants in the Western EIM.We commenced frequency and we,along with other utility companies,are the target of
Western EIM operations in March 2022.The Western EIM,among these frequent attacks.
other things,facilitates regional load balancing by allowing certain A successful attack on our administrative networks could
generating plants to receive automated dispatch signals from the CAISO compromise the security and privacy of data,including operating,
in five-minute intervals. financial and personal information.A successful attack on our operating
networks could impair the operation of our electric and/or natural gas
Reliability Standards utility facilities,possibly resulting in the inabilityto provide electric and/
Among its other provisions,the U.S.Energy Policy Act provides for or natural gas service for extended periods of time.
the implementation of mandatory reliability standards and authorizes We continually reinforce and update our defensive systems
the FERC to assess penalties for non-compliance with these standards and comply with the NERC's reliability standards.See"Reliability
and other FERC regulations. Standards,""Item 1A.Risk Factors—Cybersecurity Risk Factors"and
The FERC certified the NERC as the single Electric Reliability "Item 1C.Cybersecurity"for further information.
Organization authorized to establish and enforce reliability standards
and delegate authority to regional entities for the purpose of
establishing and enforcing reliability standards,including but not
limited to cybersecurity measures.The FERC approves NERC Reliability
Standards,including western region standards that make up the set of
legally enforceable standards forthe United States bulk electric system.
We are required to self-certify our compliance with these standards on
an annual basis and undergo regularly scheduled periodic reviews by
the NERC and its regional entity,the Western Electricity Coordinating
Council(WECC).Failure to comply with NERC reliability standards
could result in substantial financial penalties.We have a robust internal
compliance program in place to manage compliance activities and
mitigate the risk of potential noncompliance with these standards.
We do not expect the costs associated with compliance with these
standards to have a material impact on our financial results.
As both a balancing authority and transmission operator,we
must operate under the oversight of a reliability coordinator per
NERC reliability standards.RC West is the reliability coordinator of
record for 41 balancing authorities and transmission operators in the
Western Interconnection,including Avista Corp.RC West oversees grid
compliance with federal and regional grid standards,and can determine
measures to prevent or mitigate system emergencies in day-ahead or
real-time operations.
® AVISTA

AVISTA UTILITIES ELECTRIC OPERATING STATISTICS
Years Ended December31,
2024 2023 2022
Electric Operations
Operating Revenues(Dollars in Millions):
Residential $ 473 $ 425 $ 415
Commercial 369 344 339
Industrial 131 110 108
Public street and highway lighting 9 8 7
Total retail 982 887 869
Wholesale 225 250 179
Sales of fuel 13 (26) 84
Other 58 49 46
Alternative revenue programs 23 12 (32)
Total electric operating revenues $ 1,301 $ 1,172 $ 1,146
Energy Sales(Thousands of MWhs):
Residential 4,018 4,020 4,154
Commercial 3,166 3,160 3,201
Industrial 1,785 1,671 1,699
Public street and highway lighting 17 17 17
Total retail 8,986 8,868 9,071
Wholesale 3,740 3,468 3,094
Total electric energy sales 12,726 12,336 12,165
Energy Resources(Thousands of MWhs):
Hydroelectric generation(from Company facilities) 3,168 3,024 3,930
Thermal generation(from Company facilities) 4,995 5,084 4,055
Purchased power 41965 5,121 5,065
Power exchanges (14) (421) (385)
Total power resources 13,114 12,808 12,665
Energy losses and Company use (388) (472) (500)
Total energy resources(net of losses) 12,726 12,336 12,165
Number of Retail Customers(Average for Period):
Residential 371,076 366,450 361,564
Commercial 45,794 45,341 44,550
Industrial 11175 1,188 1,193
Public street and highway lighting 739 690 681
Total electric retail customers 418,784 413,669 407,988
Residential Service Averages:
Annual use per customer(kWh) 10,827 10,971 11,487
Revenue per kWh(in cents) 11.78 10.58 9.99
Annual revenue per customer(in dollars) $ 1,276 $ 1,160 $ 1,147
Average Hourly Load(aMW) 1,117 1,115 1,142
AVISTA m

AVISTA UTILITIES ELECTRIC OPERATING STATISTICS (continued)
Years Ended December 31,
2024 2023 2022
Electric Operations(continued)
Retail Native Load at time of system peak(MW):
Winter 1,869 1,771 1,860
Summer 1,831 1,809 1,810
Cooling Degree Days:("
Spokane,WA
Actual 903 811 758
Historical average 596 585 568
%of average 152% 139% 133%
Heating Degree Days:1�
Spokane,WA
Actual 5,875 6,012 6,811
Historical average 6,569 6,557 6,560
%of average 89% 92% 104%
(1) Cooling degree days are the measure of the warmness of weather experienced,based on the extent to which the average ofhigh and low temperatures for a day exceeds
65 degrees Fahrenheit(annual degree days above historical average indicate warmer than average temperatures).
(2) Heating degree days are 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 historical averages indicate warmer than average temperatures).
® AVISTA

AVISTA UTILITIES NATURAL GAS OPERATING STATISTICS
Years Ended December31,
2024 2023 2022
Natural Gas Operations
Operating Revenues(Dollars in Millions):
Residential $ 317 $ 326 $ 284
Commercial 163 164 140
Interruptible 9 13 6
Industrial 4 4 4
Total retail 493 507 434
Wholesale 61 55 133
Transportation 11 8 9
Other 29 8 8
Alternative revenue programs 12 (7) (2)
Total natural gas operating revenues $ 606 $ 571 $ 582
Therms Delivered(Thousands of Therms):
Residential 217,808 225,665 242,452
Commercial 137,972 138,719 147,059
Interruptible 20,682 20,158 14,166
Industrial 4,347 4,914 5,606
Total retail 380,809 389,456 409,283
Wholesale 271,803 262,188 280,154
Transportation 178,236 165,066 171,785
Interdepartmental and Company use 391 413 618
Total therms delivered 831,239 817,123 861,840
Number of Retail Customers(Average for Period►:
Residential 343,267 340,655 337,073
Commercial 37,353 37,193 36,753
Interruptible 52 50 44
Industrial 185 187 188
Total natural gas retail customers 380,857 378,085 374,058
Residential Service Averages:
Annual use per customer(therms) 635 662 719
Revenue per therm(in dollars) $ 1.46 $ 1.44 $ 1.17
Annual revenue per customer(in dollars) $ 925 $ 956 $ 844
Heating Degree Days:"
Spokane,WA
Actual 5,875 6,012 6,811
Historical average 6,569 6,557 6,560
%of average 89% 92% 104%
Medford,OR
Actual 3,963 4,295 4,408
Historical average 4,282 4,248 4,248
%of average 93% 101% 104%
(1) Heating degree days are the measure of the coldness of weather experienced,based on the extent to which the average ofhigh and low temperatures for a day falls
below 65 degrees Fahrenheit(annual degree days below historic indicate warmer than average temperatures).
AVISTA

ALASKA ELECTRIC LIGHT AND POWER COMPANY
AEL&P is the primary operating subsidiary of AERC,and the The following graph shows AEL&P's hydroelectric generation
sole utility providing electrical energy in Juneau,Alaska.Juneau is a (in thousands of MWhs)during the time periods indicated below:
geographically isolated community with no electric interconnections
with the transmission facilities of other utilities and no pipeline access
to natural gas or otherfuels.Juneau's economy is primarily driven by HYDROELECTRIC GENERATION
government activities,tourism,commercial fishing,and mining,as well
as activities as the commercial hub of southeast Alaska. 450 433 428
AEL&P owns and operates electric generation,transmission
and distribution facilities located in Juneau.AEL&P operates five 400
hydroelectric generation facilities with 102.7 MW of hydroelectric
generation capacity.AEL&P owns four of these generation facilities 350
(totaling 24.5 MW of capacity)and has a PPA forthe output of the
Snettisham Hydroelectric Project(totaling 78.2 MW of capacity). ti 300
The Snettisham Hydroelectric Project is owned by the Alaska
� 250
Industrial Development and Export Authority(AIDEA),a public o
corporation of the State of Alaska.AIDEA issued revenue bonds in
1998(which were refinanced in 2015)to finance its acquisition of the 200 —
0
project.These bonds were outstanding in the amount of$39 million as
of December 31,2024 and mature in January 2034.AEL&P has a PPA 150 —
and operating and maintenance agreement with the AIDEAto operate
and maintain the facility.This PPA is a take-or-pay obligation,expiring in 100 —
December 2038.AIDEA's bonds are payable solely out of the revenues
received under the PPA.Amounts payable by AEL&P under the PPA 50 —
are equal to the required debt service on the bonds plus operating and
maintenance costs. 0
This PPA is a finance lease and,as of December 31,2024,the 2024 2023 2022
finance lease obligation was$39 million.Snettisham Electric Company,
a non-operating subsidiary of AERC,has the option to purchase the Gold Creek Lake Dorothy
Snettisham project at anytime for a price equal to the principal amount
of the bonds outstanding atthat time.See"Note 5 of the Notes to Annex Creek Snettisham
Consolidated Financial Statements"for further discussion of the
Snettisham finance lease obligation. Salmon Creek — Normal hydroelectric
AEL&P has 107.5 MW of diesel generating capacityfrom four generation"
facilities to provide back-up service to firm customers when necessary.
(1) Normal hydroelectric generation is defined as the energy output of the plant
during a year with average inflows to the reservoir.
m AVISTA

As of December 31,2024,AEL&P served approximately 17,800 facilities.One of these licenses(forthe Lake Dorothy hydroelectric
customers.Its primary customers include city,state and federal project)expires in 2053 while the other(for the Salmon Creek and
governmental entities located in Juneau,as well as a mine located in Annex Creek hydroelectric projects)expires in 2058.Gold Creek is not
the Juneau area.Most of AEL&P's customers are served on a firm basis subjectto a FERC license requirement.Since AEL&P has no electric
while certain of its customers,including its largest customer,are served interconnection with other utilities and makes no wholesale sales,it is
on an interruptible sales basis.AEL&P maintains separate rate tariffs not subjectto general FERC jurisdiction,otherthan the reporting and
for each of its customer classes,as well as seasonal rates. other requirements of the Public Utility Holding Company Act of 2005 as
AEL&P's operations are subjectto regulation by the RCA with an Avista Corp.subsidiary.
respectto customer rates,standard of service,facilities,accounting The Snettisham Hydroelectric Project is subjectto regulation by
and certain other matters,but not with respectto the issuance the State of Alaska with respectto dam safety and certain aspects of its
of securities. operations.AEL&P is subjectto regulation with respectto air and water
AEL&P is subjectto the jurisdiction of the FERC with respectto quality,land use and other environmental matters under both federal
permits and licenses necessary to operate certain of its hydroelectric and state laws.
AEL&P ELECTRIC OPERATING STATISTICS
Years Ended December31,
2024 2023 2022
Electric Operations
Operating Revenues(Dollars in Millions):
Residential $ 22 $ 20 $ 20
Commercial and government 27 27 26
Total retail 49 47 46
Other 1 1 —
Total electric operating revenues $ 50 $ 48 $ 46
Energy Sales(Thousands of MWhs):
Residential 171 161 163
Commercial and government 255 249 240
Public street and highway lighting 1 1 1
Total electric energy sales 427 411 404
Number of Retail Customers(Average for Period):
Residential 15,236 15,142 15,036
Commercial and government 2,338 2,327 2,305
Public street and highway lighting 249 248 236
Total electric retail customers 17,823 17,717 17,577
Residential Service Averages:
Annual use per customer(kWh) 11,192 10,633 10,841
Revenue per kWh(in cents) 12.66 12.54 12.07
Annual revenue per customer(in dollars) $ 1,417 $ 1,336 $ 1,308
Heating Degree Days:"
Juneau,AK
Actual 8,139 7,550 7,923
Historical average 8,336 8,336 8,337
%of average 98% 91% 95%
(1) Heating degree days are 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 heating degree days below historical average indicate warmer than average temperatures).
AVISTA

OTHER BUSINESSES costs associated with assets required to be retired or divested,such
as Colstrip,to comply with emerging laws and regulations,it could
The following table shows our assets related to our other have a negative effect on our financial condition,results of operations
businesses,including intercompany amounts as of December 31 or cash flows.See further discussion of regulatory matters in"Item 7.
(dollars in millions): Management's Discussion and Analysis—Regulatory Matters."
Entity and Asset Type 2024 2023 In the future,we may no longer meet the criteria for continued
Avista Capital application of regulatory accounting principles for all or a
Equity investments $ 157 $ 153 portion of our regulated operations.
Notes receivable—third parties 18 20 If we could no longer apply regulatory accounting principles,
Other assets 7 7 we could be:
Alaska companies(AERC and AJT Mining) 12 11 • required to write off our regulatory assets,and be
Total $ 194 $ 191 • precluded from the future deferral of costs or decoupled
revenues not recovered through rates at the time such amounts
Avista Capital equity investments are primarily investments in are incurred,even if we expectto recover these amounts from
emerging technology and biotechnology companies and venture capital customers in the future.
funds,as well as investment in a joint venture focused on local real
estate development and economic growth. See further discussion at"Note 1 of the Notes to Consolidated
Alaska companies includes AERC and AJT Mining,which is a Financial Statements—Regulatory Deferred Charges and Credits."
wholly owned subsidiary of AERC and is an inactive mining company
holding certain real estate. Operational Risk Factors
Wildfires ignited,or allegedly ignited,by Avista Corp.equipment
ITEM 1A. Risk Factors or facilities,could cause significant loss of life and property,
thereby causing serious operational and financial harm.
RISK FACTORS Our equipment may be the ignition source,or alleged cause of
ignition,for wildfires and in the event of a fire caused by our equipment,
The following factors could have a significant impact on our we could potentially be held liable for resulting damages to life and
operations,results of operations,financial condition or cash flows. property,as well as fire suppression costs.Also,wildfires could lead
These factors could cause future results or outcomes to differ materially to extended operational outages of our equipment while we wait
from those discussed in our reports filed with the SEC(including this for the wildfire to be extinguished before restoring power,and the
Annual Report on Form 10-K),and elsewhere.See"Forward-Looking cost to implement rapid response or repair to such facilities could be
Statements"for additional factors which could have a significant impact significant.Wildfires caused by our equipment could cause significant
on our operations,results of operations,financial condition or cash damage to our reputation,which could erode shareholder,customer and
flows and could cause actual results to differ materially from those community satisfaction.In addition,wildfires caused by our equipment
anticipated in such statements.Additional risks and uncertainties not could lead to increased litigation and insurance costs,loss of insurance
presently known to us or that we currently do not consider material coverage,the need to be self-insured or the need to consider non-
could also adversely affect us.The realization of many of the risks traditional insurance coverage or other risk mitigation procedures.
discussed herein depends upon the prior occurrence of some event Wildfire risks may be exacerbated by increasing temperatures and/or
or circumstance—i.e.,a"trigger".We may or may not discuss the decreasing precipitation due to climate change.
occurrence of a trigger that has not resulted in an adverse effect on
us,and the absence of such disclosure should not be construed as a We are subject to various operational and event risks.
representation that no such trigger has occurred. Our operations are subjectto operational and event risks
that include:
Utility Regulatory Risk Factors • severe weather or natural disasters,including,but not limited to,
Regulators may not grant rates that provide timely or sufficient avalanches,wind storms,wildfires,earthquakes,floods,snow
recovery of our costs or allow a reasonable rate of return for and ice storms,and heat waves due to normal weather variations
our shareholders. as well as the impacts of climate change which could disrupt
Avista Utilities'annual operating expenses and the costs energy generation,transmission and distribution,as well as the
associated with incremental investments in utility assets continue to availability and costs of materials,equipment,supplies,support
grow at a faster rate than revenue.Our ability to recover these expenses services and general business operations,
and capital costs depends on the adequacy and timeliness of retail • blackouts or disruptions of interconnected transmission systems
rate increases allowed by regulatory agencies,as well as managing (the regional power grid),
costs.We expect to periodically file for rate increases with regulatory • unplanned outages at generating plants,
agencies to recover our expenses and capital costs and provide an • changes in the availability and cost of purchased power,fuel
opportunity to earn a reasonable rate of return for shareholders. and natural gas,including delivery constraints and restrictions
If regulators do not grant rate increases or grant substantially lower imposed by the transition to renewable and/or non-emitting
rate increases than our requests in the future or if recovery of deferred energy sources,which can disrupt service to customers,
expenses is disallowed,or if regulators do not allow us to recover
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• explosions,fires,accidents,or mechanical breakdowns that and systems,and may increase costs associated with heightened
could occur while operating and maintaining our generation, security requirements.
transmission and distribution systems,including,but not limited to,
increased risk associated with emerging renewable technologies Adverse impacts to AEL&P could result from an extended
as these technologies continue to mature, outage of its hydroelectric generating resources or its inability
• property damage or injuries to third parties caused by our to deliver energy,due to its lack of interconnectivity to other
generation,transmission and distribution systems, electrical grids and the cost of replacement power(diesel).
• natural disasters that can disrupt energy generation,transmission AEL&P operates several hydroelectric power generation facilities
and distribution,and general business operations, and has diesel generating capacityto provide backup service to firm
• terrorist attacks or other malicious acts that may disrupt or cause customers when necessary;however,a single hydroelectric power
damage to our utility assets or the vendors we utilize,and generation facility,the Snettisham Hydroelectric Project,provides
• increased costs or delay of capital projects associated with the approximately two-thirds of AEL&P's hydroelectric power generation.
ability of suppliers,vendors or contractors to perform, Issues that negatively affect AEL&P's abilityto generate or transmit
• general workforce problems,including decreased employee power or a decrease in the demand for the power generated by AEL&P
engagement,which may impact strategy execution and negatively could negatively affect our results of operations,financial condition and
affect retention,ability to attract workers,and result in challenges cash flows.
in collective bargaining,possible work stoppages,and strikes.
Retention of employees may also be negatively impacted by early Climate Change Risk Factors
retirements,insufficient remote work opportunities,and higher A trend of increasing average temperatures and its effects could
pay offered by other employers.Attractions of employees to cause significant direct and indirect impacts on our operations
support strategies may be affected by higher pay offered from and results of operations.
other companies,more liberal remote work opportunities offered Climate change may exacerbate existing risks related to weather
by other employers,and other work-life balance benefits afforded and weather-related events.Potential direct effects of climate
by other companies. change include changes in the timing and magnitude of snowpack and
streamflow,impacting hydroelectric generation;timing and magnitude
Disasters could affectthe general economy,financial and of changes in electric and gas load;increased weather-related stress
capital markets,specific industries or our ability to conduct business. on,or damage to,energy infrastructure;increased frequency and
As protection against operational and event risks,we maintain business intensity of extreme weather events that may impact energy generation
continuity and disaster recovery plans,maintain insurance coverage and delivery.
against some,but not all,potential losses and we seek to negotiate Indirect impacts associated with climate change may include
indemnification arrangements with contractors for certain event risks. increased costs to generate electricity or secure natural gas and
However,insurance or indemnification agreements may not be adequate deliver energy to customers;impacts to the timing or amount of
to protect against liability,extra expenses and operating disruptions operating revenues;increased costs to maintain or construct energy
from the operational and event risks described above.In addition,we infrastructure in adaptation to a changing climate;increased costs
are subject to the risk that insurers and/or other parties will dispute or or inability to obtain insurance coverage;and regional impacts to the
be unable to perform on their obligations.If insurance or indemnification demographic makeup,economy or financial conditions of our customers.
agreements are unable to adequately protect us or reimburse us for Indirect impacts also include risks associated with new and emerging
out-of-pocket costs,it could have a material adverse effect on our laws and regulations,which could have a material adverse impact on
results of operations,financial condition and cash flows. our business and results of operations.See further discussion at"Item
Damage to facilities could be caused by severe weather or natural 7.Management's Discussion and Analysis—Environmental Issues
disasters,such as snow,ice,wind storms,floods,wildfires,earthquakes and Contingencies."
or avalanches.The costto implement rapid response or repairto
such facilities can be significant.Overhead electric lines are most Cybersecurity Risk Factors
susceptible to damage caused by severe weather and are not covered Cyberattacks,ransomware,terrorism or other malicious acts
by insurance. could disrupt our businesses and have a negative impact on our
results of operations and cash flows.
Physical attacks on our assets could have a negative impact on We rely on interconnected technology systems for operation of
our business and our results of operations. our generating plants,electric transmission and distribution systems,
Our generation,transmission and distribution assets and natural gas distribution systems,customer billing and customer service,
the systems that monitor and operate these assets are critical accounting and other administrative processes and compliance with
infrastructure for providing service to our customers.Security threats various regulations.In addition,in the ordinary course of business,we
are continuing to evolve,and our industry has been subject to,and collect and retain sensitive information including personal information
will likely continue to be subjectto,attempts to disrupt operations. about our customers and employees.
Significant destruction or interruption of these assets and systems Cyberattacks,ransomware,terrorism or other malicious acts
could prevent us from fulfilling our critical business functions,including could damage,destroy or disruptthese systems for an extended period
delivering energyto customers.This could result in experiencing a of time.The energy sector,including electric and natural gas utility
loss of revenues and/or additional costs to replace or restore assets companies have become the subject of cyberattacks with increased
frequency.Our administrative and operating networks are targeted by
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hackers on a regular basis.Additionally,the facilities and systems of Strategic Risk Factors
clients,suppliers and third party service providers could be vulnerable Our strategic business plans,which may be affected by the
to the same cyber or terrorism risks as our facilities and systems foregoing,may change,including the entry into new businesses
and such third party systems may be interconnected to our systems and/or the exit from existing businesses and/or the curtailment
both physically and technologically.Therefore,an event caused by of our business development efforts where potential future
cyberattacks,ransomware or other malicious act at an interconnected business is uncertain.
third party could impact our business and facilities similarly.Anyfailure, Our strategic business plans could be affected by or result in
unexpected,or unauthorized use of technology systems could result in the following:
the unavailability of such systems,and could result in a loss of operating • disruptive innovations in the marketplace may outpace our
revenues,an increase in operating expenses and costs to repair or ability to compete or manage our risk(including the transition to
replace damaged assets.Any of the above could also result in the loss renewable and/or non-emitting energy resources),
or release of confidential customer and/or employee information or • customers may have a choice in the future over the sources from
other proprietary data that could adversely affect our reputation and which to receive their energy and we may not be able to compete,
competitiveness,could result in costly litigation and negatively impact • potential difficulties in integrating acquired operations and in
our results of operations.These cyberattacks have become more realizing expected opportunities,diversions of management
common and sophisticated and,as such,we could be required to incur resources and losses of key employees,challenges with respect
costs to strengthen our systems and respond to emerging concerns. to operating new businesses and other unanticipated risks
There are various risks associated with technology systems and liabilities,
such as hardware or software failure,communications failure,data • reduced control over generation resources resulting from reliance
distortion or destruction,unauthorized access to data,misuse of on contract power from third-party owners of generation assets,
proprietary or confidential data,unauthorized control through electronic which could limit our abilityto balance resources with demand,
means,programming mistakes and other deliberate or inadvertent • non-regulated investments in businesses outside of our core
human errors. utilities operations may increase earnings volatility,
• market or other conditions that could adversely affect our
Technology Risk Factors operations or require changes to our business strategy and could
Our technology may become obsolete,development of new result in reduced assets and net income,
technologies could create additional risk,or we may not have • affordability of electric and/or gas services may be a challenge
sufficient resources to manage our technology. for customers resulting in increased delayed paymentfor
Our technology may become obsolete before the end of its useful utility services,
life.In addition,custom or new technology(including generative • potential reputational risk arising from repeated general rate
artificial intelligence)that is heavily relied upon may not be maintained case filings,degradation in the quality of service,or from failed
and updated appropriately due to resource restraints,or other factors, strategic investments and opportunities,which could erode
which could cause technology failures or give rise to additional shareholder,customer and community satisfaction with the
operational or security risks.Generative artificial intelligence could also Company,and
create additional regulatory scrutiny and generate uncertainty around the risk of municipalization or other form of service
intellectual property ownership and/or licensing or use.Technology territory reduction.
(including artificial intelligence)is also subject to intentional misuse
(by criminals,terrorists or other bad actors).Technology failures or
incidents of misuse could result in significant adverse effects on our
operations,results of operations,financial condition and cash flows.
We may be adversely affected by our inability to successfully
implement certain technology projects.
There are inherent risks associated with replacing and changing
systems,which could have a material adverse effect on our results of
operations,financial condition and cash flows.Finally,there is the risk
that we ultimately do not complete a project and will incur contract
cancellation or other costs,which could be significant.
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External Mandates Risk Factors We have contingent liabilities,including certain matters related
External mandate risk involves forces outside the Company,which to potential environmental liabilities,and cannot predict the
may include significant changes in customer expectations,disruptive outcome of these matters.
technologies that result in obsolescence of our business model and In the normal course of our business,we have matters that are the
government action that could impactthe Company. subject of ongoing litigation,mediation,investigation and/or negotiation.
We cannot predictthe ultimate outcome or potential impact of any issue,
Actions or limitations to address concerns over long-term including the extent,if any,of insurance coverage or recoverythrough
climate change,both globally and within our utilities'service the ratemaking process.We are subjectto environmental regulation
areas,may affect our operations and financial performance. by federal,state and local authorities related to our past,present and
Legislative,regulatory and advocacy efforts atthe local,state, future operations.See"Note 22 of the Notes to Consolidated Financial
national and international levels concerning climate change and other Statements"forfurther details of these matters.
environmental issues could have significant impacts on our operations.
The electric and natural gas utility industries are frequently affected Import tariffs could lead to increased prices on energy
by proposals to curb greenhouse gas and other air emissions.Various commodities and/or equipment and materials that are critical to
regulatory and legislative proposals have been made to limit or further our business.
restrict byproducts of combustion,including that resulting from the Tariffs and other restrictions on trade with foreign countries could
use of natural gas by our customers.In addition,there are regulatory significantly increase the prices of energy commodities(electricity
and legislative initiatives that have been passed which are designed and natural gas)and equipment and materials that are critical to our
to limit greenhouse gas emissions and increase the use of renewable business.In addition,tariffs and trade restrictions could have a similar
sources of energy.In addition,regulatory and legislative initiatives may impact on our suppliers and certain customers,which could have a
restrict customers'access to natural gas and/or require or limit natural negative impact on our financial condition,results of operations and
gas infrastructure in buildings.Other initiatives may seek to promote cash flows.
social interests expressed as energy equity,environmental justice or See"Item 7.Management's Discussion and Analysis—
similar frameworks.Such legislation could direct and/or restrictthe Environmental Issues and Contingencies"and"Forward-Looking
operation and raise the costs of our power generation resources and Statements"for discussion of or reference to additional external
energy delivery infrastructure as well as the distribution of natural gas mandates which could have a material adverse effect on our results of
to our customers. operations,financial condition and cash flows.
We expect continuing legislative and regulatory activity in the
future and we are evaluating the extentto which potential changes to Financial Risk Factors
environmental laws and regulations may: Weather(temperatures,precipitation levels,wind patterns and
storms)has a significant effect on our results of operations,
• increase the operating costs of generating plants, financial condition and cash flows.These effects could
• increase the lead time and capital costs forthe construction of increase as climate changes occur.
new generating plants, Weather impacts are described in the following subtopics:
• require modification of our existing generating plants, • certain retail electricity and natural gas sales,
• require existing generating plant operations to be curtailed or • the cost of natural gas supply,and
shut down, • the cost of power supply.
• reduce the amount of energy available from our generating plants,
• restrictthe types of generating plants that can be built or Certain retail electricity and natural gas sales volumes vary
contracted with, directly with changes in temperatures.We normally have our highest
• require construction of specific types of generation plants retail(electric and natural gas)energy sales during the winter heating
at higher cost,including emerging generation sources still in season in the first and fourth quarters of the year.We also have
developmentthat operate at a higher risk of failure,and high electricity demand for air conditioning during the summer(third
• increase the cost or limit our abilityto distribute natural gas quarter).In general,warmer weather in the heating season and cooler
to customers. weather in the cooling season will reduce our customers'energy
demand and our retail operating revenues.The revenue and earnings
See"Item 7.Management's Discussion and Analysis— impact of weather fluctuations is somewhat mitigated by our decoupling
Environmental Issues and Contingencies"for discussion regarding mechanisms;however,we could experience liquidity constraints during
environmental issues and legislation which may affect our operations. the period between when decoupling revenue is earned and when it is
subsequently collected from customers through retail rates.
The cost of natural gas supply is impacted by both supply-
side factors(amount of natural gas production,level of natural gas
in storage,volumes of natural gas imports and exports,regulatory
restraints or costs on natural gas production and delivery)and demand-
side factors(variations in weather,level of economic growth,availability
and prices of other fuels).Prices tend to increase with higher demand
during periods of cold weather.Inter-regional natural gas pipelines and
competition for supply can allow demand-driven price volatility in other
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regions of North America to affect prices in the Pacific Northwest. and regional economies impacts our financial condition.We could
Increased costs adversely affect cash flows when we purchase natural experience increased borrowing costs or limited access to capital on
gas for retail supply at prices above the amount allowed for recovery reasonable terms.
in retail rates.We defer differences between actual natural gas supply We access long-term capital markets to finance capital
costs and the amount currently recovered in retail rates and we are expenditures,repay maturing long-term debt and obtain additional
generally allowed to recover substantially all of these differences working capital,including needs related to power and natural gas
after regulatory review.However,these deferred costs require cash purchases and sales,from time-to-time.Our ability to access capital on
outflows from the time of natural gas purchases until the costs are later reasonable terms is subject to numerous factors and market conditions,
recovered through retail rates. many of which are beyond our control.If we are unable to obtain capital
The cost of power supply can be significantly affected by weather, on reasonable terms,it may limit or prohibit our ability to finance capital
and therefore is subjectto trends in climate change.Precipitation expenditures and repay maturing long-term debt.Our liquidity needs
(consisting of snowpack,its water content and runoff pattern plus could exceed our short-term credit availability and lead to defaults on
rainfall)and other streamflow conditions(such as regional water various financing arrangements.We would also likely be prohibited from
storage operations)significantly affect hydroelectric generation paying dividends on our common stock.
capability.Variations in hydroelectric generation inversely affect our Performance of the financial markets could also result in
reliance on market purchases and thermal generation.To the extentthat significant declines in the market values of assets held by our pension
hydroelectric generation is less than normal,more costly power supply plan and/or a significant increase in the pension liability(which impacts
resources must be dispatched or acquired and the ability to realize the funded status of the plan)and could increase future funding
net benefits from surplus hydroelectric wholesale sales is reduced. obligations and pension expense.
Wholesale prices also vary based on wind patterns as wind generation We rely on creditfrom financial institutions for short-term
capacity is material in the Pacific Northwest but its contribution to borrowings.We need adequate levels of credit with financial
supply is inconsistent. institutions for short-term liquidity.There is no assurance that we will
The price of power in the wholesale energy markets tends to be have access to credit beyond the expiration dates of our committed line
higher during periods of high regional demand,such as occurs with of credit agreements.These agreements contain customary covenants
temperature extremes.Climate change may increase the frequency and and default provisions.
magnitude of temperature extremes.We may need to purchase power Any default on the lines of credit or other financing arrangements
in the wholesale market during peak price periods.The price of natural of Avista Corp.or our"significant subsidiaries,"if any,could result in
gas as fuel for natural gas-fired electric generation tends to increase cross-defaults to other agreements of such entity,and/orto the line of
during periods of high demand which are often related to temperature credit or other financing arrangements of any other of such entities.
extremes.We may need to purchase natural gas fuel in these periods Defaults could also induce vendors and other counterparties to demand
of high prices to meet electric demands.The cost of power supply collateral.In the event of any such default,it would be difficultto obtain
during peak usage periods may be higher than the retail sales price or financing on reasonable terms to pay creditors or fund operations.
the amount allowed in retail rates by our regulators.To the extent that We would also likely be prohibited from paying dividends on our
power supply costs are above the amount allowed currently in retail common stock.
rates,the difference is partially absorbed by the Company in current We may hedge a portion of our interest rate risk with financial
expense and is partially deferred or shared with customers through derivative instruments,which may require the posting of collateral.
regulatory mechanisms.However,these deferred costs require cash If market interest rates decrease below the interest rates we have
outflows from the time of power purchases until the costs are later locked in,this will result in a liability related to our interest rate swap
recovered through retail rates. derivatives,which can be significant.We may be required to post cash
The price of power tends to be lower during periods with excess or letters of credit as collateral depending on fluctuations in the fair
supply,such as the spring when hydroelectric conditions are usually value of the derivative instruments.Settlement of interest rate swap
attheir maximum and various facilities are required to operate to derivative instruments in a liability position could require a significant
meet environmental mandates.Oversupply can be exacerbated when amount of cash,which could negatively impact our liquidity and short-
intermittent resources such as wind generation are producing output term credit availability and increase interest expense over the term of
that may be supported by price subsidies.In extreme situations,we may the associated debt.
be required to sell excess energy at negative prices. Downgrades in our credit ratings could impede our ability to
As a result of these combined factors,our net cost of power obtain financing,adversely affectthe terms of financing and impact our
supply—the difference between our costs of generation and market ability to transact for or hedge energy resources.If we do not maintain
purchases,reduced by our revenue from wholesale sales—varies our investment grade credit rating with the major credit rating agencies,
significantly because of weather. we could expect increased debt service costs,limitations on our ability
to access capital markets or obtain otherfinancing on reasonable
We rely on regular access to financial markets but we cannot terms,and requirements to provide collateral(in the form of cash or
assure favorable or reasonable financing terms will be available letters of credit)to lenders and counterparties.In addition,credit rating
when we need them. downgrades could reduce the number of counterparties willing to do
Access to capital markets is critical to our operations and our business with us or result in the termination of outstanding regulatory
capital structure.We have significant capital requirements that we authorizations for certain financing activities.
expect to fund,in part,by accessing capital markets.As such,the state
of financial markets and credit availability in the global,United States
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Credit risk may be affected by industry concentration and customers and we cannot change retail rates to reflect current
geographic concentration. energy prices unless and until we receive regulatory approval,
We have concentrations of suppliers and customers in the electric • customer demand,which is beyond our control because of
and natural gas industries including: weather,customer choices,prevailing economic conditions and
• electric and natural gas utilities, other factors,
• electric generators and transmission providers, • some of our energy supply cost is fixed by the nature of the
• oil and natural gas producers and pipelines, energy-producing assets or through contractual arrangements
• financial institutions including commodity clearing exchanges and (however,a significant portion of our energy resource costs are
related parties,and not fixed),and
• energy marketing and trading companies. • the potential non-performance by commodity counterparties,
which could lead to replacement of the scheduled energy or
We have concentrations of credit risk related to our geographic natural gas at higher prices.
location in the western United States and western Canada energy
markets.These concentrations of counterparties and concentrations Because we must supply the amount of energy demanded by
of geographic location may affect our overall exposure to credit risk our customers and we must sell it at fixed rates and only a portion of
because the counterparties may be similarly affected by changes our energy supply costs are fixed,we are subject to the risk of buying
in conditions. energy at higher prices in wholesale energy markets(and the risk of
We are a participant in the EIM,and engage in direct and selling energy at lower prices if we are in a surplus position).Electricity
indirect power purchase and sale transactions in connection with that and natural gas in wholesale markets are commodities with historically
participation.The EIM collateral posting requirements are based on high price volatility.Changes in wholesale energy prices affect,among
established credit criteria,butthere is no assurance the collateral otherthings,the cash requirementsto purchase electricity and natural
will be sufficientto cover obligations that counterparties may owe gas for retail customers or wholesale obligations and the market value
each other in the EIM and credit losses could be allocated among all of derivative assets and liabilities.
EIM participants,including us.A significant failure of a participant in We hedge a portion of our energy commodity risk with physical
the EIM to make payments when due on its obligations could have a and financial derivative instruments that may require the posting
ripple effect on our counterparties in the power and gas markets if of collateral.When we enter into fixed price energy commodity
those counterparties experience ancillary liquidity issues,and could transactions for future delivery,we are subject to credit terms that may
result in a decline in the ability of our counterparties to perform on require us to provide collateral to wholesale counterparties related
their obligations. to the difference between current prices and the agreed upon fixed
prices.These collateral requirements can place significant demands on
Activist shareholder actions could have a negative impact on our cash flows or borrowing arrangements.Price volatility can cause
our business and operations. collateral requirements to change quickly and significantly.
Shareholder activism can take many forms and arise in a variety Cash flow deferrals related to energy commodities can be
of situations.Actions by activist shareholders could include engaging significant.We are permitted to collect from customers only amounts
in proxy solicitations,making or advancing shareholder proposals,or approved by regulatory commissions.However,our costs to provide
otherwise attempting to assert influence on our board of directors and/ energy service can be much higher or Iowerthan the amounts currently
or management.Response to these actions could result in substantial billed to customers.We are permitted to defer income statement
costs,require significant attention from our board of directors and recognition and recoveryfrom customers for some of these differences,
management,and divert resources from the execution of our strategy which are recorded as deferred charges with the opportunityfor
and business operations. future recoverythrough retail rates.These deferred costs are subject
Shareholder activism could result in perceived uncertainties, to reviewfor prudence and potential disallowance by regulators,who
negatively affect our business opportunities,our abilityto access have discretion as to the extent and timing of future recovery or refund
capital markets,and relationships with our customers and employees. to customers.
These actions could have a material adverse effect on ourfinancial Power and natural gas costs higherthan those recovered in retail
condition and results of operations,and could result in significant rates negatively impact cash flows.Amounts that are not allowed for
fluctuations in the trading price of our common stock based on market deferral or which are not approved to become part of customer rates
perceptions or other factors. affect our results of operations.
Even if our regulators ultimately allowthe recovery of deferred
Energy Commodity Risk Factors power and natural gas costs,our operating cash flows can be negatively
Energy commodity price changes affect our cash flows and affected until these costs are recovered from customers.
results of operations. Fluctuating energy commodity prices and volumes in relation
Energy commodity prices can be volatile.We rely on energy to our energy risk management process can cause volatility in our
markets and other counterparties for energy supply,surplus and cash flows and results of operations.We engage in active hedging
optimization transactions and commodity price hedging.A combination and resource optimization practices to reduce energy cost volatility
of factors exposes our operations to commodity price risks,including: and economic exposure related to commodity price fluctuations.We
• our obligation to serve our retail customers at rates setthrough routinely enter into contracts to hedge a portion of our purchase and
the regulatory process—we cannot decline to serve our sale commitments for electricity and natural gas,as well as forecasted
excess or deficit energy positions and inventories of natural gas.
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We use physical energy contracts and derivative instruments,such as ITEM 1C. Cybersecurity
forwards,futures,swaps and options traded in the over-the-counter
markets or on exchanges.If market prices decrease compared to The energy sector,including electric and natural gas utility
the prices we have locked in with our energy commodity derivatives, companies,has become the subject of cyberattacks with increased
this will result in a liability related to these derivatives,which can be frequency and we,along with other utility companies,are the target of
significant.As a result of price fluctuations,we may be required to post these frequent attacks.In addition,there is a growing reliance on third
significant amounts of cash or letters of credit as collateral depending party providers which are also subjectto attacks and breaches.Any
on fluctuations in the fair value of the derivative instruments. unexpected failure,or unauthorized access to technology systems or
We do not attemptto fully hedge our energy resource assets or third parties relied upon can result in the unavailability of systems or
ourforecasted net positions forvarioustime horizons.To the extent services,which can result in a loss of operating revenues,damage to
we have positions that are not hedged,or if hedging positions do not our brand and reputation,and/or an increase in operating expenses and
fully match the corresponding purchase or sale,fluctuating commodity costs to repair or replace damaged assets.See"Risk Factors—Cyber
prices could have a material effect on our operating revenues,resource Risk Factors"for further information.
costs,derivative assets and liabilities,and operating cash flows.In We considerthe management of cybersecurity risk in our overall
addition,actual loads and resources typically vary from forecasts, enterprise risk management program.See"Item 7.Management's
sometimes to a significant degree,which require additional transactions Discussion and Analysis—Enterprise Risk Management"for further
or dispatch decisions that impact cash flows. discussion of the program.
The hedges we enter into are reviewed for prudence by our We mitigate cyber risk by maintaining an enterprise security
various regulators and deferred costs(including those as a result of our program based on the National Institute of Standards and Technology
hedging transactions)are subject to review for prudence and potential Cybersecurity Framework.This program includes trainings and
disallowance by regulators. exercises at all levels of the Company.Our security program
Generation plants may become obsolete.We rely on a variety incorporates enterprise business continuity which facilitates a business
of generation and energy commodity market sources to fulfill impact analysis of core functions for development of emergency
our obligation to serve customers and meetthe demands of our operating and disaster recovery plans and coordinates annual testing
counterparty agreements.Some of our generation sources,such as and training exercises.In addition,there are independent third party and
coal,may become obsolete or be prematurely retired through regulatory regulatory audits of our security program.
action or legislation.This could result in higher commodity costs The technology department,led bythe Vice President,Chief
to replace the lost generation,as well as higher costs to retire the Information Officer,and Chief Security Officer,is responsible for our
generation source before the end of its expected life.This also includes cybersecurity program.The Vice President,Chief Information Officer
costs(including replacement of lost generation)associated with our and Chief Security Officer has over 20 years of experience,including
transfer of Colstrip ownership to NorthWestern atthe end of 2025.See serving in similar roles leading and overseeing cybersecurity programs
"Item 7.Management's Discussion and Analysis—Environmental Issues at other companies.This program includes maintenance of appropriate
and Contingencies"for discussion regarding environmental and other cybersecurity measures,such as firewalls,anti-virus,patching,and
issues surrounding Colstrip. other zero-trust security protocols,monitoring for intrusion and security
events that may include a data breach or an attack on our operations,
Compliance Risk Factors and working with our supply chain departmentto ensure contracts with
There have been numerous changes in legislation,related third party service providers include appropriate requirements for the
administrative rulemakings,and Executive Orders,including mitigation of cybersecurity risk that might impact our business.
periodic audits of compliance with such rules,which may Our data breach response team is comprised of designated
adversely affect our operational and financial performance. members of the technology department,senior management and other
We expectto continue to be affected by legislation atthe national, appropriate individuals.The team is tasked with assessing,managing
state and local level,as well as by administrative rules and requirements and responding to material cybersecurity incidents involving either
published by government agencies,including but not limited to the our systems or the systems of third party service providers.The data
FERC,the EPA and state regulators.We are also subjectto NERC and breach response team includes subject matter experts within the
WECC reliability standards.The FERC,the NERC and the WECC perform Company,as well as outside experts who specialize in cybersecurity
periodic audits of the Company.Failure to comply with the FERC,the response.A subset of this team is also responsible for assessing the
NERC,or the WECC requirements can result in financial penalties. materiality of cybersecurity incidents,reporting to the Audit Committee
Future legislation,administrative rules or Executive Orders could of the Board of Directors as appropriate,and ensuring timeline reporting
have a material adverse effect on our operations,results of operations, of cybersecurity incidents deemed material to the Company.
financial condition and cash flows. The Environmental,Technology and Operations Committee of the
Board of Directors oversees our management of cybersecurity risks.
ITEM 1113. Unresolved Staff Comments This Committee is briefed on security policy,programs and incidents on
at least a quarterly basis.The Audit Committee of the Board of Directors
As of the filing date of this Annual Report on Form 10-K,we have provides oversight of required disclosures relating to cybersecurity.
no unresolved comments from the staff of the SEC.
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ITEM 2. Properties Electric Power Purchase Agreements
Avista Utilities enters into long-term PPAs to purchase a portion or
AVISTA UTILITIES all of the output of specific generation assets.These generating assets
are owned by other parties,notthe Company,and are not subject to
Substantially all of Avista Utilities'properties are subject to the the lien of Avista Corp:s mortgage indenture.See further discussion of
lien of Avista Corp.'s mortgage indenture. certain of these PPAs in"Part 1—Item 1.Business—Avista Utilities—
Electric Operations".
Avista Utilities'electric properties,located in the states of
Washington,Idaho,Montana and Oregon,include the following: The following is a summary of PPAs as of December 31,2024:
COMPANY-OWNED GENERATION PROPERTIES Present
Capability Expiration of
Present Capability(MW)"� (MW)" Contract
Hydroelectric Generating Stations(River) Hydroelectric
Washington: Douglas County PUD 16 2028
Long Lake(Spokane) 88 Grant County PUD 76 2052
Little Falls(Spokane) 48 Chelan County PUD(2) 175 2045
Nine Mile(Spokane) 41 Columbia Basin Hydro i3i 11 2045
Upper Falls(Spokane) 10 Total Hydroelectric 278
Monroe Street(Spokane) 15 Thermal
Idaho: Lancaster 270 2041
Cabinet Gorge(Clark Fork)(2) 273 Wind
Post Falls(Spokane) 12 Clearwater Wind 100 2055
Montana: Palouse Wind 105 2042
Noxon Rapids(Clark Fork) 562 Rattlesnake Flat Wind 144 2040
Total Hydroelectric 1,049 Total Wind 349
Thermal Generating Stations(cycle,fuel source) Solar
Washington: Lind Solar 28 2038
Kettle Falls GS(combined-cycle,wood waste)13 53 Total Power Purchase Agreements 925
Kettle Falls CT(combined-cycle,natural gas)13 7
Northeast CT(simple-cycle,natural gas) 65 (1) Present capability is the maximum capacity of the plant under standard test
Boulder Park GS(simple-cycle,natural gas) 25 conditions without exceeding specified limits of temperature,stress and
Idaho: environmental conditions.
Rathdrum CT(simple-cycle,natural gas) 166 (2) Our contracted portion of generation asset output from Chelan County PUD
Montana: changes throughout the life of the agreement.Our output is expected to
Colstrlp Units 3&4(simple-cycle,coal) ^ 222 increase 88MWin 2026,decrease 88 MWin 2032,and decrease 88 MW
Oregon: in 2034.
Coyote Springs 2(combined-cycle,natural gas) 322 (3) Ouroutputfrom this contractis expected to increase to a total of 147MWby
Total Thermal 860 2030 as we receive additional capacity under this contract.
Total Generation Properties 1,909
Electric Distribution and Transmission Plant
(1) Present capability is the maximum capacity of the plant under standard test Avista Utilities owns and operates approximately 19,900 miles
conditions without exceeding specified limits of temperature,stress and of primary and secondary electric distribution lines providing service
environmental conditions. to retail customers.We have an electric transmission system of
(2) For Cabinet Gorge,we have water rights permitting generation up to 265 MW. approximately 700 miles of 230 kV line and approximately 1,600 miles
However,if natural stream flows will allow for generation above our water of 115 kV line.We also own an 11 percent interest in approximately
rights,we are able to generate above our waterrights.If natural stream flows 500 miles of a 500 kV line between Colstrip,Montana and Townsend,
onlyallow forgeneration atorbelow265MW,we are limited to generation Montana.Ourtransmission and distribution systems also include
of265MW.The present capability disclosed above represents the capability numerous substations with transformers,switches,monitoring and
based on maximum stream flowconditions when we are allowed to generate metering devices and other equipment.
above our water rights. The 230 kV lines are the backbone of ourtransmission grid and
(3) These generating stations can operate as separate single-cycle plants or are used to transmit power from generation resources,including Noxon
combined-cycle with the natural gas plant providing exhaust heat to the wood Rapids,Cabinet Gorge and the Mid-Columbia hydroelectric projects,to
boiler to increase efficiency. the major load centers in our service area,as well as to transfer power
(4) Jointly owned,•data refers to our 15 percent interest.See"Irem7. between points of interconnection with adjoining electric transmission
Management's Discussion and Analysis of Financial Condition—Colstrip"for systems.These lines interconnect at various locations with the
information related toColstrip Units 3&4. BPA,Grant County PUD,PacifiCorp,NorthWestern and Idaho Power
Company and serve as points of delivery for power from generating
AVISTA m

facilities outside of our service area,including Colstrip,Coyote Springs ALASKA ELECTRIC LIGHT AND
2 and the Lancaster Plant. POWER COMPANY
These lines also provide a means to optimize resources through
short-term purchases and sales of power with entities within and Substantially all of AEL&P's utility properties(except
outside of the Pacific Northwest. the Snettisham plant)are subjectto the lien of the AEL&P
The 115 kV lines provide for transmission of energy and the mortgage indenture.
integration of smaller generation facilities with our service-area
load centers,including the Spokane River hydroelectric projects,the AEL&P's utility electric properties,located in Alaska include
Kettle Falls projects,Rathdrum CT,Boulder Park GS and the Northeast the following:
CT.These lines interconnect with the BPA,Chelan County PUD,the
Grand Coulee Project Hydroelectric Authority,Grant County PUD, Present Capability(MW) '
NorthWestern,PacifiCorp and Pend Oreille County PUD.Both the 115 kV Hydroelectric Generating Stations
and 230 kV interconnections with the BPA are used to transfer energy to Snettisham(1) 78
facilitate service to each other's customers that are connected through Lake Dorothy 14
the other's transmission system.We hold a long-term transmission Salmon Creek 5
agreement with the BPA that allows us to serve our native load Annex Creek 4
customers that are connected through the BPA's transmission system. Gold Creek 2
Total Hydroelectric 103
Natural Gas Plant Diesel Generating Stations
Avista Utilities has natural gas distribution mains of approximately Lemon Creek 52
3,600 miles in Washington,2,200 miles in Idaho and 2,400 miles in Auke Bay 25
Oregon.We have natural gas transmission mains of approximately 75 Gold Creek 7
miles in Washington and 15 miles in Oregon.Our natural gas system Industrial Blvd.Plant 23
includes numerous regulator stations,service distribution lines, Total Diesel 107
monitoring and metering devices,and other equipment. Total Generation Properties 210
We own a one-third interest in Jackson Prairie,an underground
natural gas storage field located near Chehalis,Washington.See"Part (1) Present capability is the maximum capacity of the plant under standard test
1—Iteml.Business—Avista Utilities—Natural Gas Operations"for conditions without exceeding specified limits of temperature,stress and
further discussion of Jackson Prairie. environmental conditions.
(1) AEL&P does not own this generating facility and it is not subject to the lien of
the AEL&P mortgage indenture.AEL&P has a PPA under which it has the right
to purchase,and the obligation to pay for,all the capacity and energy of this
facility.See further information at"Part 1—Item 1.Business—Alaska Electric
Light and Power Company."
In addition to the generation properties above,AEL&P owns 61
miles of transmission lines,which are primarily comprised of 69 kV line,
and 184 miles of distribution lines.
ITEM 3. Legal Proceedings
See"Note 22 of Notes to Consolidated Financial Statements"for
information with respect to legal proceedings.
ITEM 4. Mine Safety Disclosures
Not applicable.
® AVISTA

ITEM 5. Market for Registrant's Common ITEM 7. Management's Discussion and Analysis of
Equity, Related Stockholder Matters and Issuer Financial Condition and Results of Operations
Purchases of Equity Securities
This section of this Annual Report on Form 10-K generally
AVISTA CORP. MARKET INFORMATION AND discusses financial statement items and comparisons between 2024 and
DIVIDEND POLICY 2023.Discussion of 2022 financial statement items and comparisons
between 2023 and 2022 not included in this Form 10-K can be found in
Avista Corp.'s common stock is listed on the New York Stock "Management's Discussion and Analysis of Financial Conditions and
Exchange under the ticker symbol"AVA."As of January 31,2025,there Results of Operations"in Part Il,Item 7 of the Company's Annual Report
were 5,781 registered shareholders of our common stock. on Form 10-K forthe year ended December 31,2023.
Avista Corp.'s Board of Directors considers the level of dividends
on our common stock on a recurring basis,taking into account numerous BUSINESS SEGMENTS
factors including,without limitation:
• our results of operations,cash flows and financial condition, As of December 31,2024,we have two reportable business
• the success of our business strategies,and segments,Avista Utilities and AEL&P.We also have other businesses
• general economic and competitive conditions. which do not represent a reportable business segment and are
conducted by various direct and indirect subsidiaries of Avista Corp.
Avista Corp.'s net income available for dividends is generally See"Part I—Item 1.Business—Company Overview"forfurther
derived from our regulated utility operations(Avista Utilities discussion of our business segments.
and AEL&P).
The payment of dividends on common stock could be limited by: The following table presents net income(loss)for each of our business
• certain covenants applicable to preferred stock(when segments and the other businesses,for the year ended December 31
outstanding)contained in the Company's Restated Articles of (dollars in millions):
Incorporation,as amended(currently there are no preferred
shares outstanding), 2024 2023 2022
• certain covenants applicable to the Company's outstanding long- Avista Utilities $ 179 $ 167 $ 118
term debt and committed line of credit agreements(see"Item 7. AEL&P 8 9 7
Management's Discussion and Analysis—Capital Resources"for Other non-reportable segment income(loss) (7) (5) 30
compliance with these covenants►, Net income $ 180 $ 171 $ 155
• the hydroelectric licensing requirements of section 10(d)
of the FPA(see"Note 1 of Notes to Consolidated Financial EXECUTIVE OVERVIEW
Statements"),and
• certain requirements underthe OPUC approval of the AERC Overall Results
acquisition in 2014.The OPUC's AERC acquisition order requires Net income increased primarily due to the effects of general rate
Avista Utilities to maintain a capital structure of no less than cases.This increase in earnings was partially offset by increases in
35 percent common equity(inclusive of short-term debt).This other operating expenses,depreciation and amortization expense,taxes
limitation may be revised upon request bythe Companywith otherthan income taxes and interest expense.
approval from the OPUC. More detailed explanations of the fluctuations are provided in the
results of operations and business segment discussions(Avista Utilities,
For additional information,see"Notes 1 and 19 of Notes to AEL&P,and the other businesses).
Consolidated Financial Statements."
For information with respect to securities authorized for Resource Adequacy
issuance under equity compensation plans,see"Item 12.Security Peak Load Requirements
Ownership of Certain Beneficial Owners and Management and Related Extreme weather events,both in summer and winter,have
Stockholder Matters." recently occurred in the Pacific Northwest.These events have resulted
in system load peaks thatwere higherthan anticipated.Historically,we
ITEM 6. [Removed and Reserved] have had excess capacity as compared to peak load,but during some
extreme events we have had to purchase short-term energy from the
wholesale marketto meet demand when our energy resources were not
operating atfull capacity orwere otherwise unavailable.These weather
events have highlighted the growing need for additional generating
capacity both on our system and in the Pacific Northwest region.
Accordingly,we are taking the increased peaks in demand into account
as we consider our resource adequacy and generation requirements.
AVISTA W

Annual Energy Requirements Amounts allocated to Idaho are not approved for recovery from
The transition to clean energy(including the replacement of customers.Costs incurred for CCA compliance did not have a material
emitting facilities with non-emitting facilities,which are impacted effect on our results of operations for 2024 and 2023.See"Note 22 of
by conditions outside of our control),and electrification,combined the Notes to Consolidated Financial Statements"for further discussion
with expected load growth,factor into the analysis of the need for of the CCA costs associated with our electric operations and impacts on
additional generation. ourfinancial results.
2025 IRP Regulatory Lag
Our 2025 IRP was filed with the WUTC and IPUC in December 2024. Regulatory"lag"is inherent in utility ratemaking;a result of
While the IRP is subjectto change from time-to-time due to changing the delay between the investment in utility plant and/orthe increase
circumstances,assumptions and projections,given the exit of Colstrip in costs and the receipt of an order of a public utility commission
(222 MW)from our system by December31,2025 and the expected authorizing an increase in rates sufficientto recover such investment
retirement of the Northeast CT(65 MW)in 2030,our preferred resource or costs.Regulatory lag can be mitigated to some extent by the
strategy includes the addition of approximately 490 MW of generating incorporation of reasonably expected forward-looking information into
capacity by 2030 and a total addition of approximately 950 MW through an authorization of increased rates.However,there is no protection
2035.We believe the additional capacity would likely consist primarily of against unexpected inflation and increased interest rates,as
wind resources and a natural gas combustion turbine.The new capacity experienced in 2022 and 2023.See"Regulatory Matters"for additional
would likely be a combination of resources owned by the Company and discussion of the general rate cases.
resources committed under PPAs,to be determined on a case-by-case
basis depending upon financial,tax and regulatory considerations.See Potential Tariffs on Imports
"Part I—Item 1.Business—Company Overview—Future Resource The President of the United States of America has announced
Needs"for further discussion of the IRP. plans to impose tariffs on certain imported goods.The implementation
We also expect expanded transmission infrastructure will provide of these tariffs has been paused until March 2025.We anticipate that
access to additional resources and improve reliability in our region.We any such tariffs would apply to natural gas and electricity imported from
signed a non-binding memorandum of understanding to join the North Canada,as well as wood waste used as fuel atthe Kettle Falls GS.As we
Plains Connector transmission line project,constructing a transmission import a significant amount of natural gas from Canada,both to serve
line from Bismarck,North Dakota to Colstrip,Montana. our retail natural gas customers and as fuel for electric generation,
these tariffs could have a significant impact on our resource costs.In
2024 Hydroelectric Generation addition,we cannot predict how the broader energy markets would
Our hydroelectric generation is affected not only by precipitation respond and change as a result of the tariffs.The impact of an increase
levels,but also by temperatures since warmer weather causes earlier in resource costs on our results of operations from the tariffs would be
melting and runoff of snowpack,and extremely cold weather can result partially mitigated by various deferral and recovery mechanisms(ERM,
in the formation of ice which can decrease streamflow.During 2024, PCA,and PGAs),butthere could be an immediate impact on our cash
our region experienced low precipitation,resulting in low snowpack flow.These tariffs could also impactthe cost of other equipment and
levels and streamf lows when compared to historical averages.This had materials that are critical to our business,and could increase capital
a negative impact on our hydroelectric generation resources.Lower and operating expenses.
hydroelectric generation increased net power supply costs and resulted
in us absorbing additional costs under the ERM in Washington.In 2024, REGULATORY MATTERS
we had a$8 million pre-tax expense under the ERM in Washington.
General Rate Cases
Washington Climate Commitment Act We regularly review the need for electric and natural gas rate
Effective January 1,2023,the CCA went into effect in the State changes in each state in which we provide service.We will continue to
of Washington,requiring us to secure carbon allowances to cover our file for rate adjustments to:
carbon emissions over a certain amount each year.Costs associated • seek recovery of operating costs and capital investments,and
with the CCA are being deferred and are included in Washington natural • seek the opportunity to earn reasonable returns as allowed
gas customer rates starting in April 2024.The resulting aggregate by regulators.
increase to customer bills was 3.7 percent over a one year period,and
impacts customers differently based on revenue class,income level, The assessment of our need for rate relief and the development
and meter connection date.An additional customer bill increase to of rate case plans takes into consideration short-term and long-term
recover costs associated with the CCA of 9.1 percent became effective needs,as well as specific factors that can affectthe timing of rate
in November 2024. filings.Such factors include,but are not limited to,in-service dates of
Costs associated with the CCA related to our electric operations major capital investments and the timing of changes in major revenue
are deferred and included in the ERM for Washington customers. and expense items.
AVISTA

Avista Utilities Colstrip Tariff
Washington General Rate Cases In 2019,the Washington State Legislature passed the CETA,
2022 General Rate Cases which,among other things,requires costs associated with coal-fired
In December 2022,the WUTC issued an order approving the generation facilities to be removed from rates no later than December
multi-party settlement agreement filed in June 2022.The approved 31,2025.The WUTC order approving the settlement of the 2022 general
rates were designed to increase annual base electric revenues by$38 rate cases,discussed above,required us to establish a tracker for our
million,or 6.9 percent,effective in December 2022,and$13 million,or Colstrip-related costs,including operating and maintenance expense,
2.1 percent,effective in December 2023.The approved rates were also depreciation and amortization expense,and a return on rate base.
designed to increase annual base natural gas revenues by$8 million,or In October 2024,we filed a cost recoverytariff seeking to recover
6.5 percent,effective in December 2022,and$2 million,or 1.2 percent, the costs associated with our ownership of Colstrip in 2025.In the
effective in December 2023. filing,we requested an increase in annual Colstrip tariff revenues of
To mitigate the overall impact of the revenue increases on $19 million—from$24 million in 2024to$43 million in 2025,effective
customers,part of the 2022 base rate increase was offset with tax January 1,2025.In its review,WUTC Staff raised three concerns related
customer credits.The total estimated benefits of these credits,$28 to(1)whether forecasted 2025 investments are allowed in rates;(2)
million for electric customers and$13 million for natural gas customers, whether the capital investment included in the filing will be used and
were returned over a two-year period from December 2022 to useful for customers prior to the end of 2025;and(3)one major capital
December 2024. investmentthat will not be in service until 2027.In December 2024,
In addition,the order approved a separate tracking mechanism the WUTC allowed our filed tariff to go into effect,but setthe rates as
and tariff for purposes of recovering existing and prospective Colstrip subject to refund.The WUTC setthe matter for adjudication in 2025,
costs through December 31,2025.See"Colstrip Tracker"below. but also ordered us,WUTC Staff,and other interested parties to meet
The WUTC approved an ROR of 7.03 percent,butthe settlement and resolve the issues.A status report is due to the WUTC by March
does not specify an explicit ROE,cost of debt or capital structure. 31,2025.If the parties cannot resolve the concerns of WUTC Staff,we
believe a procedural schedule will be developed and a hearing date set.
2024 General Rate Cases
In December 2024,the WUTC issued orders related to our multi- Idaho General Rate Cases
year electric and natural gas general rate cases filed with the WUTC in 2023 General Rate Cases
January 2024. In August 2023,the IPUC approved the multi-party settlement
The approved rates within the orders are designed to increase agreement designed to increase annual base electric revenues by$22
annual electric base revenues by$12 million(or 2.0 percent),effective million,or 8.0 percent,effective in September 2023,and$4 million,or 1.4
January 1,2025(Rate Year 1),and$44 million(or 7.5 percent)for Rate percent,effective in September 2024.The agreement was designed to
Year 2.The difference in approved rates for Rate Year 1 and those increase annual base natural gas revenues by$1 million,or 2.7 percent,
included in our original request of a$77 million increase is primarily effective in September 2023,and a negligible increase effective in
due to a$56 million decrease in power supply costs compared to those September 2024.
set forth in the original request,and also due to a lower approved The settlement was based on an R 0 E of 9.4 percent,with a
return on equity than what was requested.The Rate Year 2 increase common equity ratio of 50 percent,and an ROR of 7.19 percent.
represents the effective increase to customers resulting from the$69
million approved in the order,partially offset by a$25 million decrease 2025 General Rate Case
due to the expiration of a separate tariff in effect during Rate Year 1 to In January 2025,we filed multiyear electric and natural gas
collect remaining Colstrip expenses by December 31,2025(see further general rate cases with the IPUC.If approved,new rates would be
discussion below). effective in September 2025 and September 2026.The proposed rates
The approved rates are also designed to increase annual natural are designed to increase annual base electric revenues by$43 million,
gas base revenues by$14 million(or 11.2 percent),effective January 1, or 14.0 percent,effective in September 2025,and$18 million,or 5.0
2025,and$4 million(or 2.8 percent)for Rate Year 2. percent,effective in September 2026.For natural gas,the proposed
The WUTC approved an ROE of 9.8 percent,based on a common rates are designed to increase annual base natural gas revenues by$9
equity ratio of 48.5 percent,and an ROR of 7.32 percent. million,or 17.7 percent,effective September 2025,and$1 million,or 1.7
The WUTC did not approve our request to modifythe ERM under percent,effective September 2026.The proposed electric and natural
which differences between actual net power supply costs and the gas revenue increase requests are based on an ROR of 7.68 percent,
amount reflected in base retail customer rates are tracked.Based on with a common equity ratio of 50 percent and an ROE of 10.4 percent.
our forecast energy commodity costs in 2025 and 2026,we expect Ongoing capital infrastructure investment(including replacement of
actual net power supply costs to exceed the level included in base rates. wood poles and natural gas distribution pipe,continued investment in
We plan to continue to address how net power supply costs are set in the wildfire resiliency plan,and technology)and increases in operations,
base rates in future regulatory proceedings. maintenance,and power supply costs are the main drivers of the
The Commission continued its support for important recovery proposed increases.The IPUC has up to nine months to review the
mechanisms such as wildfire and insurance balancing accounts, general rate case filings and issue a decision.
and decoupling.
AVISTA

Oregon General Rate Cases Alaska Electric Light and Power Company
2023 General Rate Case 2022 General Rate Case
In October 2023,the OPUC approved the all-party settlement In August 2023,the RCA issued a final order related to AEL&P's
agreementfiled in August 2023.The approved rates are designed to electric general rate case,which was originally filed in July 2022.
increase annual base natural gas revenues by$7 million,or 9.4 percent. The order reflects an ROE of 11.45 percent,a common equity
The OPUC approved an ROR of 7.24 percent,a common equity ratio of ratio of 60.7 percent,and an ROR of 8.79 percent.The order results in
50 percent,and an ROE of 9.5 percent.New rates were effective on an approved base electric revenue increase of 6.0 percent(designed
January 1,2024. to increase annual electric revenues by$2 million),and makes non-
refundable the interim rate increase of 4.5 percent that was approved
2024 General Rate Case by the RCA in August 2022 and took effect in September 2022.The final
In November 2024,we filed a general rate case with the OPUC, increase to rates was effective in October 2023.
which is designed to increase overall revenue by$8 million,or 9.2 AEL&P is required to file its next general rate case by August 2027.
percent,effective September 1,2025.The case is based on a proposed
ROR of 7.67 percentwith a common equity ratio of 50 percent and
an ROE of 10.4 percent.Ongoing capital infrastructure investment
(including replacement and expansion of natural gas distribution pipe
and technology)is the main driver of the proposed increase.The OPUC
has up to ten months to reviewthe general rate case filing and issue
a decision.
Power Cost Deferrals,Decoupling,Earnings Sharing
Mechanisms,and Purchased Gas Adjustments
See"Note 23 of the Notes to Consolidated Financial Statements"
for discussion of these regulatory mechanisms.
® AVISTA

RESULTS OF OPERATIONS—OVERALL
The following provides an overview of changes in our Consolidated Statements of Income.More detailed explanations are provided,
particularlyfor operating revenues and operating expenses,in the business segment discussions(Avista Utilities,AEL&P and the other businesses)
thatfollowthis section.
2024 compared to 2023
The following graph shows the total change in net income for 2024 to 2023,as well as the various factors that caused such change
(dollars in millions):
CHANGE IN NET INCOME
Increase to Earnings Decrease to Earnings
$186
I
I
I
I
I $9
SO $(5) $(2)
$(28) I
$1371 I
I
$(96) I
I
Utility Utility Utility Utility Interest Income Other I Total
Revenues Resource Operating Depreciation Expense Tax Benefit I Change in
Costs Expenses and Amortization Net Income
AVISTA

Utility revenues increased at Avista Utilities primarily due to The presentation of electric utility margin and natural gas
increased electric retail rates(due to the effects of general rate cases), utility margin is intended to enhance understanding of our operating
and increased sales of fuel.These increases were partially offset by performance.We use these measures internally and believe they
decreased natural gas retail sales volumes(due to warmer weather and provide useful information to investors in their analysis of how
lower usage)and rates,and decreased electric wholesale revenue due changes in loads(due to weather,economic or other conditions),
to decreased sale prices. rates,supply costs and other factors impact our results of operations.
Utility resource costs increased at Avista Utilities primarily due Changes in loads,as well as power and natural gas supply costs,are
to increased prices and volumes of purchased power,and an increase generally deferred and recovered from customers through regulatory
in net amortizations and deferrals of costs and benefits under our accounting mechanisms.Accordingly the analysis of utility margin
regulatory mechanisms.These increases were partially offset by a generally excludes most of the change in revenue resulting from these
decrease in fuel for generation and purchased natural gas,resulting regulatory mechanisms.We present electric and natural gas utility
from decreased natural gas prices. margin separately below for Avista Utilities since each portion of
The increase in utility operating expenses was primarily due to our business has different cost sources,cost recovery mechanisms
increased thermal generation costs,legal costs and employee benefit and jurisdictions,so we believe that separate analysis is beneficial.
costs(primarily related to medical).In addition,amortizations and base These measures are not intended to replace utility operating revenues
levels of wildfire mitigation costs and insurance costs have increased, as determined in accordance with GAAP as an indicator of operating
with corresponding increases to revenue which result in no impact performance.Reconciliations of operating revenues to utility margin are
to earnings. setforth below.
Utility depreciation and amortization increased primarily due to
additions to utility plant. RESULTS OF OPERATIONS—AVISTA UTILITIES
Interest expense increased due to increased borrowings
outstanding during the period and increased interest rates compared Resource Optimization
to 2023. We engage in resource optimization,which involves the selection
Income tax was an expense in 2024,compared to a benefit in 2023. from available energy resources to serve our load obligations and the
The change is primarily due to the decrease in tax customer credits use of these resources to capture economic value through wholesale
offsetting the bill impact of rate increases included in our prior general market transactions,which is ultimately intended to lower net power
rate cases.There is a corresponding change in retail revenues related and natural gas supply costs.Our resource optimization transactions
to tax customer credits such thatthere is minimal impact on net income. can take the form of physical sales and purchases of electric capacity
See"Note 13 of the Notes to Consolidated Financial Statements"for and energy and fuel for electric generation,purchases and sales of
further details and a reconciliation of our effective tax rate. natural gas to optimize use of pipeline and storage capacity,as well
as financial derivative contracts related to capacity,energy,fuel and
NON-GAAP FINANCIAL MEASURES fuel transportation.See Item 1."Business—Avista Utilities—Electric
Operations—General"and"Business—Avista Utilities—Natural Gas
The following discussion for Avista Utilities includestwo financial Operations—General."
measuresthat are considered"non-GAAP financial measures,"electric We typically enter into multiple transactions simultaneously to
utility margin and natural gas utility margin.In the AEL&P section,we capture value.Even though these transactions are considered together
also include a discussion of electric utility margin. when determining the net impact,they are recorded in separate items
Generally,a non-GAAP financial measure is a numerical measure within components of utility operating revenue and resource costs
of a company's financial performance,financial position or cash flows and can cause fluctuations in each item.Gains and losses on financial
that excludes(or includes)amounts that are included(excluded)in derivative contracts in certain line items below(such as wholesale
the most directly comparable measure calculated and presented in sales and purchases of power and natural gas,sales of fuel,and other
accordance with GAAP.Electric utility margin is electric operating fuel costs).The ERM,PCA and PGAs are based on net supply costs
revenues less electric resource costs,while natural gas utility margin and consider all transactions related to resource procurement and
is natural gas operating revenues less natural gas resource costs. optimization(both physical and financial).
The most directly comparable GAAP financial measure to electric and
natural gas utility margin is utility operating revenues as presented in
"Note 24 of the Notes to Consolidated Financial Statements."
® AVISTA

2024 compared to 2023
Utility Operating Revenues
The following graphs present Avista Utilities'electric operating revenues and MWh sales for 2024 and 2023,respectively
(dollars in millions and MWhs in thousands):
ELECTRIC OPERATING REVENUES
2024 _ 2023
$473
$425
$369 $344
$225 $250
$131
$110
or
$67 $57
$13 $23 $12
$(26)
Residential Commercial Industrial Wholesale Sales of Fuel Decoupling Other '
(1) This balance includes public street and highway lighting,which is considered part of retail electric revenues,and deferrals/amortizations to customers related to federal
income tax law changes.
Total electric operating revenues in the graph above include intracompany sales of$4 million and$6 million for 2024 and 2023,respectively.
ELECTRIC ENERGY MWh SALES 02024 2023
4,018 4,020
3,740
3,468
3,166 3,160
1,785 1,671
Residential Commercial Industrial Wholesale
AVISTA

The following table presents the current year decoupling deferrals Total electric revenues increased$129 million for 2024 as
and the amortization of prior year decoupling balances reflected in compared to 2023.The primary differences in the results forthese
utility electric operating revenues for the years ended December 31 periods were as follows:
(dollars in millions): a$96 million increase in retail electric revenues due to an increase
in revenue per MWh(increased revenues$83 million),and an
Electric Decoupling Revenues increase in total MWhs sold(increased revenues$13 million).
2024 2023 • The increase in revenue per MWh was primarily due to the
Current year decoupling deferrals(a) $ 5 $ (3) effects of our general rate cases,as well as the ERM surcharge
Amortization of prior year to customers that commenced in July 2023.
decoupling deferrals(1) 18 15 • The increase in total retail MWhs sold was primarily the result
Total electric decoupling revenue $ 23 $ 12 of customer growth,including a large industrial customer that
we began serving in August 2024.
(a) Positive amounts are increases in decoupling revenue in the current year a$25 million decrease in wholesale electric revenues due to
and will be surcharged to customers in future years.Negative amounts are a decrease in sales prices(decreased revenues$41 million),
decreases in decoupling revenue in the current year and will be rebated to partially offset by an increase in sales volumes(increased
customers in future years. revenues$16 million).The increase in volumes was due to
(b) Positive amounts are increases in decoupling revenue in the current year and Increased opportunities to optimize our generation assets based
are related to the amortization of rebate balances thatresulted in prioryears on market conditions.
and are being refunded to customers(causing a corresponding decrease a$39 million increase in revenues from sales of fuel due to thermal
in retail revenue from customers)in the current year.Negative amounts are generation resource optimization activities,which includes net
decreases in decoupling revenue in the current year and are related to the losses on derivative instruments resulting from commodity price
amortization ofsurcharge balances that resulted in prior years and are being volatility In early 2023.
surcharged to customers(causing a corresponding increase in retail revenue • an$11 million Increase In electric decoupling revenue,resulting
from customers)in the current year. from current year deferrals in a surcharge position,compared
to a rebate position in the prior year,as well as an increase in
amortization of prior year rebate balances.
• a$10 million increase in other electric revenues,primarily
resulting from increased transmission and REC revenues.
The following graphs present Avista Utilities'natural gas operating revenues and therms delivered for 2024 and 2023,respectively(dollars in
millions and therms in thousands):
NATURAL GAS OPERATING REVENUES 2024 2023
$317 $326
$163 $164
$61 $55 $53
$33
$12
$(7)
Residential Commercial Wholesale Decoupling Other
(1) This balance includes interruptible and industrial revenues,which are considered part of retail natural gas revenues,and deferrals/amortizations to customers related to
federal income tax law changes.
Total natural gas operating revenues in the graph above include intracompany sales of$16 million and$33 million for 2024
and 2023,respectively.
® AVISTA

THERMS DELIVERED 2024 02023
271,803 262,188
217,808 225,665
203,655 190,551
137,972 138,719
1 6
Residential Commercial Wholesale Other
The following table presents the current year decoupling deferrals Retail natural gas sales volumes decreased primarily due
and the amortization of prior year decoupling balances reflected in to lower residential and commercial usage due to warmer
natural gas operating revenues for the years ended December 31 weather.Compared to 2023,residential use per customer
(dollars in millions): decreased 4 percent and commercial use per customer
decreased 1 percent.Heating degree days in Spokane during
Natural Gas Decoupling Revenues 2024 were 11 percent below historical average,compared to
2024 2023 8 percent below historical average in 2023.These decreases
Current year decoupling deferrals(a) $ 15 $ — were partially offset by customer growth.
Amortization of prior year Retail rates decreased due to PGA rate decreases(which do
decoupling deferrals(1) (3) (7) not impact utility margin),partially offset by the effects of our
Total natural gas decoupling revenue $ 12 $ (7) general rate cases and net rate increases associated with
the CCA.
(a) Positive amounts are increases in decoupling revenue in the current year a$6 million increase in wholesale natural gas revenues due to an
and will be surcharged to customers in future years.Negative amounts are increase in prices(increased revenues$4 million)and an increase
decreases in decoupling revenue in the current year and will be rebated to in volumes(increased revenues$2 million).Differences between
customers in future years. revenues and costs from sales of resources in excess of retail load
(b) Positive amounts are increases in decoupling revenue in the current year and requirements and from resource optimization are accounted for
are relatedto the amortization ofrebate balances that resulted in prior years through the PGA mechanisms.
and are being refunded to customers(causing a corresponding decrease a$19 million increase in decoupling revenues due to surcharge
in retail revenue from customers)in the current year.Negative amounts are deferrals in the current year resulting from lower customer
decreases in decoupling revenue in the current year and are related to the usage,compared to rebate deferrals in the prior year.There were
amortization of surcharge balances that resulted in prior years and are being also lower amortizations of prior year surcharges compared to
surcharged to customers(causing a corresponding increase in retail revenue amortizations in 2023.
from customers)in the current year. a$20 million increase in other natural gas revenue due to revenues
associated with the sale of CCA emissions credits,which are
Total natural gas revenues increased$35 million for 2024 as deferred and are amortized as they are passed through to
compared to 2023.The primary differences in the results for these customers through decreases in retail rates.The increase in other
periods were as follows: revenues is offset by decreased retail rates,resulting in no impact
• a$14 million decrease in retail natural gas revenues(including a to utility margin.
$4 million decrease in interruptible and industrial revenues,which
are included in other)due to decreased sales volumes(decreased
revenues$11 million)and decreased retail rates(decreased
revenues$3 million).
AVISTA m

Utility Resource Costs
The following graph presents Avista Utilities'electric resource costs for 2024 and 2023,respectively(dollars in millions):
ELECTRIC RESOURCE COSTS 2024 2023
$229
$202
$151 $160
$84
no
$41
$18 $21 In
Power Purchased Fuel for generation Otherfuel costs Other
Total electric resource costs in the graph above include intracompany resource costs of$16 million and$33 million for 2024
and 2023,respectively.
Total electric resource costs increased$58 million for 2024 as compared to 2023.The primary differences in the results for these periods were
as follows:
• a$27 million increase in power purchased due to an increase in wholesale prices(increased costs by$15 million),and an increase in the volume
of power purchases(increased costs by$12 million).In mid-January 2024,our service territory experienced much colder than normal weather,
requiring purchases at a time when wholesale prices were substantially elevated due to capacity constraints in our region.
• a$9 million decrease in fuel for generation primarily due to decreased natural gas prices and decreased thermal generation.
• a$3 million decrease in otherfuel costs,including gains on financial derivative instruments associated with our hedging activities.
This represents fuel and the related derivative instruments thatwere purchased for generation but later sold when conditions indicated that it
was more economical to sell the fuel as part of the resource optimization process.When the fuel or related derivative instruments are sold,that
revenue is included in sales of fuel.
• a$43 million increase in other electric resource costs,primarily related to an increase in amortization of previously deferred costs,and an
increase in deferred benefits underthe PCA in Idaho related to currentyear power supply costs.There was also an increase in the deferral of
funds related to our customer assistance payment programs(low income rate assistance and demand side management).
The following graph presents Avista Utilities'natural gas resource Total natural gas resource costs in the graph to the left include
costs for 2024 and 2023,respectively(dollars in millions): intracompany resource costs of$4 million and$6 million for 2024 and
2023,respectively.
Total natural gas resource costs increased$18 million for 2024
NATURAL GAS RESOURCE COSTS 2024 2023 as compared to 2023.The primary differences in the results for these
periods were as follows:
$285 • a$98 million decrease in natural gas purchased due to a decrease
in the price of natural gas,
• a$116 million increase in other costs,primarily due to a decrease
$187 in deferred costs during the period,largely a result of lower
$145 natural gas prices,as well as the amortization of costs associated
with the CCA thatwere recovered from customers,resulting in no
impact to utility margin.
$29
Natural Gas Purchased Other
® AVISTA

Utility Margin
The following table reconciles Avista Utilities'operating revenues,as presented in"Note 24 of the Notes to Consolidated Financial Statements',to
the Non-GAAP financial measure utility margin for the years ended December 31(dollars in millions):
Electric Natural Gas Intracompany Total
2024 2023 2024 2023 2024 2023 2024 2023
Operating revenues $ 1,301 $ 1,172 $ 606 $ 571 $ (20) $ (40) $ 1,887 $ 1,703
Resource costs 482 424 332 314 (20) (40) 794 698
Utility margin $ 819 $ 748 $ 274 $ 257 $ — $ — $ 1,093 $ 1,005
Electric utility margin increased$71 million and natural gas utility RESULTS OF OPERATIONS—
margin increased$17 million. OTHER BUSINESSES
Electric and natural gas utility margin increased primarily due
to our general rate cases,as well as customer growth.The effects 2024 compared to 2023
of general rate cases include decreased tax customer credits,which Our other businesses had a net loss of$7 million for 2024
increase operating revenues,and therefore utility margin,with a compared to a net loss of$5 million for 2023.The fluctuation in results is
corresponding increase to income tax expense.This has a minimal primarily related to higher net investment losses due to changes in fair
impact on net income. value and recognizing our portion of equity investment losses.
In both 2024 and 2023,we had an$8 million pre-tax expense under
the ERM. ACCOUNTING STANDARDS TO BE
Intracompany revenues and resource costs represent purchases ADOPTED IN 2025
and sales of natural gas between our natural gas distribution operations
and our electric generation operations(as fuel for our generation We are not expecting the adoption of accounting standards to
plants).These transactions are eliminated in the presentation of total have a material impact on our financial condition,results of operations
results for Avista Utilities and in the consolidated financial statements and cash flows in 2025.For more information on accounting standards
but are included in the separate results for electric and natural gas expected to be adopted in future periods,see"Note 2 of the Notes to the
presented above. Consolidated Financial Statements".
RESULTS OF OPERATIONS—ALASKA ELECTRIC CRITICAL ACCOUNTING POLICIES
LIGHT AND POWER COMPANY AND ESTIMATES
2024 compared to 2023 The preparation of our consolidated financial statements in
Net income for AEL&P was$8 million for 2024,compared to$9 conformity with GAAP requires the use of estimates and assumptions
million for 2023. that affect amounts reported in the consolidated financial statements.
Changes in these estimates and assumptions are considered reasonably
The following table presents AEL&P's operating revenues,resource possible and may have a material effect on our consolidated financial
costs and resulting utility margin forthe years ended December 31 statements and thus actual results could differ from the amounts
(dollars in millions): reported and disclosed herein.The following accounting policies
represent those that management believes are particularly importantto
Electric the consolidated financial statements and require the use of estimates
2024 2023 and assumptions:
Operating revenues $ 50 $ 48 Regulatory accounting,in accordance with ASC Topic 980,
Resource costs 4 4 Regulated Operations,among other things,requires that costs
Utility margin $ 46 $ 44 and/or obligations that,in our judgement,are probable of recovery
through rates charged to customers,but are not yet reflected
in rates,not be reflected in our Consolidated Statements of
Utility margin increased for 2024 primarily due to higher sales Income until the period in which they are reflected in rates and
volumes and rate increases.The increase in utility margin was offset by matching revenues are recognized.Meanwhile,these costs and/
increased operating expenses,resulting in a decrease to net income in or obligations are deferred and reflected on our Consolidated
2024 compared to 2023.Utility margin is a Non-GAAP financial measure. Balance Sheets as regulatory assets or liabilities.We generally
See"Non-GAAP Financial Measures"above. receive regulatory orders before deferring costs as regulatory
assets and liabilities;however,in certain instances in which we
have regulatory precedent,we may not request an order before
deferring the costs.If we no longer met the criteria to apply
regulatory accounting or no longer allowed recovery of these
costs,we would be required to recognize significant write-offs of
regulatory assets and liabilities in the Consolidated Statements
AVISTA M

of Income.See"Notes 1,4 and 23 of the Notes to Consolidated pension cost is$12 million of settlement cost,which was deferred as a
Financial Statements"for further discussion of our regulatory regulatory asset and therefore did not impact our net income in 2022.
accounting policy and mechanisms. See"Note 12 of the Notes to Consolidated Financial Statements"for
• Pension plans and other postretirement benefit plans,discussed further discussion of pension settlement accounting treatment.Of
in further detail below. our pension cost(excluding the SERP),approximately 55 percent is
• Equity investments,specifically valuations performed to expensed and 45 percent is capitalized consistent with labor charges.
determine the fair value of certain investment holdings,require The cost related to the SERP is expensed.Our costfor the pension
judgement in the selection of assumptions used to estimate fair plan is determined in part by actuarial formulas that are dependent
value of investments for which there is not a quoted active market upon numerous factors resulting from actual plan experience and
price.We primarily use a market approach to determine fair assumptions of future experience.
value of an investment,and transactions involving comparable Pension cost is affected by among otherthings:
securities may need to be adjusted to estimate our investment's • employee demographics(including age,compensation and length
fairvalue.See"Notes 7 and 18 of the Notes to Consolidated of service by employees),
Financial Statements"forfurther discussion of our equity • the amount of cash contributions to the pension plan,
investments and method for determining their fairvalue. • the actual return on pension plan assets,
• Contingencies,related to unresolved regulatory,legal and tax • expected return on pension plan assets,
issues as to which there is inherent uncertainty for the ultimate • discount rate used in determining the projected benefit obligation
outcome of the respective matter.We accrue a loss contingency and pension costs,
if it is probable that an asset is impaired or a liability has been • assumed rate of increase in employee compensation,
incurred and the amount of the loss or impairment can be • life expectancy of participants and other beneficiaries,and
reasonably estimated.To the extent material,we also disclose • expected method of payment(lump sum or annuity)of
losses that do not meet these conditions for accrual,if there is pension benefits.
a reasonable possibility that a potential loss may be incurred.
For all material contingencies,we have made a judgment as We make estimates and assumptions as to many of these factors.
to the probability of a loss occurring and as to whether or not In accordance with accounting standards,changes in pension plan
the amount of the loss can be reasonably estimated.However, obligations associated with these factors may not be immediately
no assurance can be given as to the ultimate outcome of any recognized as pension costs in our Consolidated Statements of
contingency.See"Notes 1 and 22 of the Notes to Consolidated Income,but we generally recognize the change in future years over the
Financial Statements"for further discussion of our commitments remaining average service period of pension plan participants.As such,
and contingencies. our cost recorded in a period may not reflectthe actual level of cash
benefits provided to pension plan participants.
Pension Plans and Other Postretirement Benefit We revise the key assumption of the discount rate each year.
Plans—Avista Utilities In selecting a discount rate,we consider yield rates atthe end of
We have a defined benefit pension plan covering substantially the year for highly rated corporate bond portfolios with cash flows
all regular full-time employees at Avista Utilities hired priorto from interest and maturities similarto the expected payout of
January 1,2014 and regular full-time union employees thatwere hired pension benefits.
prior to January 1,2024.See"Note 12 of the Notes to Consolidated The expected long-term rate of return on plan assets is reset or
Financial Statements"forfurther discussion of these individual plans. confirmed annually based on past performance and economic forecasts
Pension cost(including the SERP)was$7 million for 2024, for the types of investments held by our plan.
$9 million for 2023 and$23 million for 2022.Included in our 2022
The following chart reflects the assumptions used each year for the pension discount rate(exclusive of the SERP),the expected long-term
return on plan assets and the actual return on plan assets and their impacts to the pension plan associated with the change in assumption
(dollars in millions):
2024 2023 2022
Discount rate(exclusive of SERP)
Pension discount rate 6.13% 5.86% 6.10%
Increase/(decrease►to projected benefit obligation $ (17) $ 14 $ (198)
Return on plan assets(,)
Expected long-term return on plan assets 7.80% 8.30% 5.80%
Increase/(decrease)to pension costs $ 3 $ (13) $ (3)
Actual return on plan assets—net of fees 7.30% 15.00% (21.80)%
Actual gain(loss)on plan assets $ 42 $ 79 $ (164)
(a) The SERP has no plan assets.The plan assets in this disclosure are for the pension plan only.
m AVISTA

The following chart reflects the sensitivities associated with a change in certain actuarial assumptions by the indicated percentage
(dollars in millions):
Actuarial Assumption Change in Assumption Effect on Projected Benefit Obligation Effect on Pension Cost
Expected long-term return on plan assets (0.5)% $ —* $ 3
Expected long-term return on plan assets 0.5% -* (3)
Discount rate (0.5)% 31 3
Discount rate 0.5% (28) (3)
*Changes in the expected return on plan assets would not affect our projected benefit obligation.
We provide certain health care and life insurance benefits for • unplanned outages at generating facilities,and
substantially all of our retired employees.We accrue the estimated cost • failure of third parties to deliver on energy or capacity contracts.
of postretirement benefit obligations during the years that employees
provide service. In addition to the above,we enter into derivative instruments to
hedge exposure to certain risks,including fluctuations in commodity
LIQUIDITY AND CAPITAL RESOURCES prices,foreign exchange rates and interest rates(for purposes of
issuing long-term debt in the future).These derivative instruments
OVERALL LIQUIDITY periodically require the posting of collateral(in the form of cash or
letters of credit)or other credit enhancements or to reduce or terminate
Avista Corp.'s consolidated operating cash flows are primarily a portion of the contract through cash settlement,in the event of a
derived from the operations of Avista Utilities.The primary source downgrade in our credit ratings or changes in market prices.In periods
of operating cash flows for Avista Utilities is revenues from sales of of price volatility,the level of exposure can change significantly.As a
electricity and natural gas.Significant uses of cash flows from Avista result,sudden and significant demands may be made against our cash
Utilities include the purchase of power,emissions allowances,fuel on hand and credit facilities.See"Enterprise Risk Management—Credit
and natural gas,and payment of other operating expenses,taxes and Risk Liquidity Considerations"below.
interest,with any excess being available for other corporate uses such Material contractual obligations that demand cash arise in the
as capital expenditures and dividends. normal course of business including energy purchase contracts and
We design operating and capital budgets to control operating contractual obligations related to generation facilities and transmission
costs and to direct capital expenditures to projects that support and distributions services.See"Note 14 of the Notes to Consolidated
immediate and long-term strategies,particularly for our regulated Financial Statements"for additional information related to these
utility operations.In addition to operating expenses,we have contractual obligations.
continuing commitments for capital expenditures for construction and Additional demands for cash include payments of borrowings
improvement of utility facilities. and interest payments(see"Notes 15-17 of the Notes to Consolidated
Our annual net cash flows from operating activities usually do not Financial Statements"),lease obligations(see"Note 5 of the Notes to
fully supportthe amount required for annual utility capital expenditures. Consolidated Financial Statements"),pension and other postretirement
As such,from time-to-time,we need to access capital markets to fund benefit plan contributions(see"Note 12 of the Notes to Consolidated
these needs as well as fund maturing debt.See further discussion at Financial Statements")and investment fund commitments(see"Note 6
"Capital Resources." of the Notes to Consolidated Financial Statements").
We regularlyfile for rate adjustments for recovery of operating See discussion in"Capital Resources"belowfor available liquidity
costs and capital investments and to seekthe opportunityto earn under our credit facilities.With our available liquidity underthese
reasonable returns. agreements,we believe thatwe have adequate liquidityto meet our
We have regulatory mechanisms in place that provide forthe needs forthe next 12 months.
deferral and recovery of the majority of power and natural gas supply
costs.However,when power and natural gas costs exceed the levels REVIEW OF CONSOLIDATED CASH
currently recovered from customers,net cash flows are negatively FLOW STATEMENT
affected.Factors that could cause purchased power and natural gas
costs to exceed the levels currently recovered from customers under 2024 compared to 2023
base rates include,but are not limited to,higher prices in wholesale Consolidated Operating Activities
markets and/or an increased need to purchase power in the wholesale Net cash provided by operating activities was$534 million for 2024
markets,and a lack of regulatory approval for higher authorized net compared to$447 million for 2023.The increase in net cash provided
power supply costs.Factors beyond our control that could result in an by operating activities primarily relates to a$97 million increase in net
increased need to purchase power in the wholesale markets include,but power and natural gas cost amortizations compared to 2023 due to
are not limited to: decreases in commodity prices and recovery of previously deferred
• reduced snowpack and/or lower streamf lows for hydroelectric costs from customers.Net cash flows associated with accounts
generation(due to lower precipitation and/or warmer weather or payable increased$58 million due to large balances paid in early 2023
extreme cold weather), associated with elevated commodity prices atthe end of 2022,and net
• increases in demand(due to either weather or customer growth),
AVISTA m

cash flows associated with other current assets increased$42 million Consolidated Financing Activities
due to timing of payments. Net cash provided byfinancing activities was$0 million for 2024
These increases to operating cash flows are partially offset compared to$85 million for 2023.The decrease in financing cash flows
by a$111 million decrease in cash proceeds from collateral posted was primarilythe result of a$84 million of long-term debt issuances
for derivative instruments.In 2023,large amounts of collateral were in 2024,compared to$250 million issued in 2023,and$68 million
returned due to fluctuations in commodity prices. of common stock issued in 2024 compared to$113 million in 2023.
These decreases were partially offset by an increase in short-term
Consolidated Investing Activities borrowings of$5 million in 2024,compared to a decrease in borrowings
Net cash used in investing activities was$539 million for 2024, of$114 million in 2023.
an increase compared to$510 million for 2023.During 2024,we paid
$533 million for utility capital expenditures,compared to$499 million
for 2023.
CAPITAL RESOURCES
Capital Structure
Our consolidated capital structure,including the current portion of long-term debt and short-term borrowings consisted of the following as of
December 31,2024 and 2023(dollars in millions):
December 31,2024 December 31,2023
Amount Percent of total Amount Percent of total
Current portion of long-term debt and leases $ 8 0.1% $ 22 0.4%
Short-term borrowings 354 6.2% 349 6.3%
Long-term debt to affiliated trusts 52 0.9% 52 0.9%
Long-term debt and leases 2,711 47.4% 2,618 47.4%
Total debt 3,125 54.7% 3,041 55.0%
Total Avista Corporation shareholders'equity 2,591 45.3% 2,485 45.0%
Total $ 5,716 100.0% $ 5,526 100.0%
Our shareholders'equity increased$106 million during 2024 primarily due to net income and the issuance of common stock,partially offset by
dividends paid.
We need to finance capital expenditures and acquire additional funds for operations from time-to-time.The cash requirements needed to
service our indebtedness,both short-term and long-term,reduce the amount of cash available to fund capital expenditures,purchased power,fuel
and natural gas costs,dividends and other requirements.
Short Term Borrowings
Avista Corp.
Avista Corp.has a committed line of credit in the total amount of$500 million and an expiration date of June 2028,with the option to extend for
an additional one year period(subjectto customary conditions).Avista Corp.also has a continuing letter of credit agreement in the aggregate amount
of$50 million,and either party may terminate the agreement at any time.
The following table summarizes the balances outstanding and available liquidity as of December 31,2024(dollars in millions):
Aggregate Amount Amount Outstanding Letters of Credit Outstanding ' Available Liquidity
Line of credit expiring June 2028 $ 500 $ 342 $ 5 $ 153
Letter of credit facility 50 N/A 12 38
Total $ 550 $ 342 $ 17 $ 191
(1) Letters of credit are not reflected on the Consolidated Balance Sheets.If a letter of credit were drawn upon by the holder,we would have an immediate obligation to
reimburse the bank that issued that letter.
The Avista Corp.creditfacilities contain customary covenants and default provisions,including a change in control(as defined in the
agreements).The events of default under each of the credit facilities also include a cross default from other indebtedness(as defined)and in
some cases other obligations.Some of these agreements also include a covenant which does not permit our ratio of"consolidated total debt"to
"consolidated total capitalization"to be greater than 65 percent at anytime.As of December 31,2024,we complied with this covenant with a ratio of
54.7 percent.
m AVISTA

Balances outstanding and interest rates on borrowings(excluding letters of credit)under Avista Corp.'s lines of credit were as follows as of and for
the year ended December 31(dollars in millions):
cucw 2023
$500 million line of credit,expiring June 2028
Maximum balance outstanding during the year $ 350 $ 357
Average balance outstanding during the year 270 246
Average interest rate during the year 6.26% 6.06%
Average interest rate at end of year 5.52% 6.46%
$100 million line of credit,terminated June 2023
Maximum balance outstanding during the period ' N/A $ 15
Average balance outstanding during the period ' N/A —
Average interest rate during the period ' N/A 7.75%
Average interest rate at end of year N/A N/A
(1) Amounts for each period are from entering the agreementin December2022 to the termination in June 2023.
AEL&P Common Stock
AEL&P has a$25 million committed line of credit with an We issued common stock in 2024 for total net proceeds of
expiration date in June 2028.As of December 31,2024,there was $68 million.Most of the stock was issued through our sales agency
$12 million outstanding at an average interest rate of 6.13 percent, agreements under which we may offer and sell new shares of our
and$13 million of available liquidity under this line of credit. common stock from time-to-time through our sales agents,with the
The AEL&P credit facility contains customary covenants and balance related to compensation plans.In 2024,1.8 million shares were
default provisions including a covenant which does not permitthe issued under these agreements.
ratio of"consolidated total debt at AEL&P"to"consolidated total
capitalization at AEL&P,"(including the impact of the Snettisham 2025 Liquidity Expectations
obligation)to be greater than 67.5 percent at any time.As of During 2025,we expectto issue up to$120 million of long-
December 31,2024,AEL&P complied with this covenant with a ratio term debt and up to$80 million of common stock to fund planned
of 49.7 percent. capital expenditures.
As of December 31,2024,Avista Corp.and its subsidiaries After considering the expected issuances of long-term debt and
complied with the covenants of their financing agreements,and none common stock during 2025,we expect net cash flows from operating
of Avista Corp.'s subsidiaries constituted a"significant subsidiary" activities,together with cash available under our credit facilities,to
as defined in Avista Corp.'s committed line of credit. provide adequate resources to fund capital expenditures,dividends,and
other contractual commitments.
Long-Term Debt
In April 2024,Avista Corp.closed on the remarketing of$67 million Limitations on Issuances of Preferred Stock and
(series A)and$17 million(series B)of City of Forsyth,Montana Pollution First Mortgage Bonds
Control Revenue Refunding Bonds due in 2032 and 2034,respectively. We are restricted under our Restated Articles of Incorporation,
The interest rate on both series of bonds is 3.875 percent.The net as amended,as to the additional preferred stock we can issue.As of
proceeds from the remarketing of the Forsyth bonds were used to repay December 31,2024,we could issue$1.7 billion of preferred stock at an
a portion of the borrowings outstanding under Avista Corp.'s committed assumed dividend rate of 6.875 percent.We are not planning to issue
line of credit.In connection with the pricing of the Forsyth bonds preferred stock.
in March 2024,we cash-settled two interest rate swap derivatives See"Note 16 of the Notes to Consolidated Financial Statements"
(notional aggregate amount of$20 million)and received a net amount of for discussion of first mortgage bonds issuance limits.
$4 million,which will be amortized as a component of interest expense
over the life of the bonds.The effective interest cost of the bonds is
3.61 percent for series A and 3.97 percent for series B,including the
effects of the settled interest rate swap derivatives and issuance costs.
AVISTA m

UTILITY CAPITAL EXPENDITURES
We make capital investments at our utilities to enhance service and system reliability for our customers and replace aging infrastructure.
The following table summarizes our actual and expected capital expenditures as of and for the year ended December 31,2024(dollars in millions):
Avista Utilities AEL&P
2024 Actual capital expenditures
Capital expenditures(per the Consolidated Statement of Cash Flows) $ 510 $ 23
Expected total annual capital expenditures(by year)
2025 $ 525 $ 12
2026 575 10
2027 600 14
The following graph shows Avista Utilities'expected capital These estimates of capital expenditures are subject to continuing
expenditures for 2025-2027 by category(in millions): review and adjustment.Actual expenditures may vary from our
estimates due to factors such as changes in business conditions,
CAPITAL BUDGET $600 construction schedules and environmental requirements.In particular,
$575 these estimates do not include expenditures for additional generation
ortransmission facilities that are contemplated in our IRP but have not
$525 $76 been specifically identified and approved.
r$8 - NON—REGULATED INVESTMENTS AND
$8B CAPITAL EXPENDITURES
$82
$81 We make investments and capital expenditures at our other
$102 businesses including those related to economic development
$97 projects in our service territory that demonstrate the latest energy
and environmental building innovations and house several local
$103 college degree programs.In addition,we make investments in
emerging technology companies,venture capital funds,and other
business ventures.
$303 The following table summarizes our actual and expected investments
$240 $276 and capital expenditures at our other businesses as of and for the year
ended December 31,2024(dollars in millions):
Other
2024 Actual investments and capital expenditures
2025 2026 2027 Investments and capital expenditures $ 10
Expected total annual investments and capital expenditures(by year)
Other 2025 $ 9
2026 4
Enterprise Technology 2027 3
These estimates of investments and capital expenditures are
Natural Gas subject to continuing review and adjustment.Actual expenditures may
varyfrom our estimates due to factors such as changes in business
Generation conditions or strategic plans.
See"Liquidity"for information regarding other material cash
Transmission and Distribution requirements for 2025 and thereafter.
m AVISTA

PENSION PLAN customers,which are subjectto regulatory review and approval)are
generally determined on a"cost of service"basis.In theory,rates are
We contributed$10 million to the pension plan in 2024.We expect designed to provide,after recovery of allowable operating expenses
to contribute a total of$50 million to the pension plan in the period 2025 and capital investments,an opportunity to earn a reasonable return on
through 2029,with an annual contribution of$10 million. investment as allowed by our regulators.
The final determination of pension plan contributions for future In retail markets,we compete with various rural electric
periods is subjectto multiple variables,most of which are beyond our cooperatives and public utility districts in and adjacent to our service
control,including changes to the fair value of pension plan assets, territories in the provision of service to new electric customers.
changes in actuarial assumptions(in particular the discount rate used We have service territory agreements with certain rural electric
in determining the benefit obligation),or changes in federal legislation. cooperatives and public utility districts,approved in applicable
We may change our pension plan contributions in the future depending jurisdictions,to set forth conditions under which one or the other utility
on changes to any variables,including those listed above. will provide service to customers.Alternative energy technologies,
See"Note 12 of the Notes to Consolidated Financial Statements" including customer-sited solar,wind or geothermal generation,and
for additional information regarding the pension plan. energy storage,may also compete for sales to existing customers.
Advances in power generation,energy efficiency,energy storage and
CREDIT RATINGS other alternative energy technologies could lead to more wide-spread
usage of these technologies,thereby reducing customer demand
Our access to capital markets and our cost of capital are directly for the energy supplied by us.This reduction in usage and demand
affected by our credit ratings.In addition,many of our contracts for would reduce our revenue and negatively impact our financial
the purchase and sale of energy commodities contain terms dependent condition including possibly leading to our inability to fully recover
upon our credit ratings.See"Enterprise Risk Management—Credit our investments in generation,transmission and distribution assets.
Risk Liquidity Considerations"and"Note 8 of the Notes to Consolidated Similarly,our natural gas distribution operations compete with other
Financial Statements." energy sources including heating oil,propane and other fuels.
Certain natural gas customers could bypass our natural gas
The fallowing table summarizes our credit ratings as of system,reducing both revenues and recovery of fixed costs.To reduce
February 25,2025: the potential for such bypass,we price natural gas services,including
transportation contracts,competitively and have varying degrees
Standard of flexibility to price transportation and delivery rates by means
&Poor's M Moody's(2) of individual contracts.These individual contracts are subjectto
Corporate/Issuer rating BBB Baal regulatory review and approval.We have long-term transportation
Senior Secured Debt A- A3 contracts with several of our largest industrial customers under which
Senior Unsecured Debt BBB Baal the customer acquires its own commodity while using our infrastructure
for delivery.Such contracts reduce the risk of these customers
(1) standard&Poor's lowest"investment grade"creditrating is BBB-. bypassing our system in the foreseeable future and minimizes the
(2) Moody's lowest"investment grade"creditrating is Baa3. Impact on our earnings.
Customers may have a choice in the future over the sources from
A security rating is not a recommendation to buy,sell or hold which to receive their energy.To effectively compete for our customers
securities.Each security rating is subject to revision or withdrawal in the future,we continue to strive to create value through product and
at anytime by the assigning rating organization.Each security rating service offerings.We are also attempting to enhance the effectiveness
agency has its own methodology for assigning ratings,and,accordingly, and ease of our customer interactions by tailoring internal initiatives
each rating should be considered in the context of the applicable to focus on choices for customers to increase their overall satisfaction
methodology,independent of all other ratings.The rating agencies with the Company.
provide ratings at the request of Avista Corp.and charge fees for Also,non-utility businesses are developing new technologies and
their services. services to help energy consumers manage energy in new ways that
may improve productivity and could alter demand for the energy we sell.
DIVIDENDS In wholesale markets,competition for available electric supply is
influenced bythe:
See"Item 5.Marketfor Registrant's Common Equity,Related • localized and system-wide demand for energy,
Stockholder Matters and Issuer Purchases of Equity Securities"for a • type,capacity,location and availability of generation
detailed discussion of our dividend policy and the factors which could resources,and
limitthe payment of dividends. • variety and circumstances of market participants.
COMPETITION These wholesale markets are regulated bythe FERC,which
requires electric utilities to transmit power and energy to or for
Our electric and natural gas distribution utility business has wholesale purchasers and sellers,enlarge or construct additional
historically been recognized as a natural monopoly.In each regulatory transmission capacityforthe purpose of providing these services,and
jurisdiction,our rates for retail electric and natural gas services(other transparently price and offer transmission services withoutfavorto any
than specially negotiated retail rates for industrial or large commercial party,including the merchant functions of the utility.
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Participants in the wholesale energy markets include: and to acquire and comply with a wide variety of environmental
• other utilities, licenses,permits,approvals and settlement agreements.These items
• federal power marketing agencies, are enforceable by public officials and private individuals.Some of
• energy marketing and trading companies, these regulations are subjectto ongoing interpretation,whether
• independent power producers, administratively or judicially,and are often in the process of being
• financial institutions,and modified.We conduct periodic reviews and audits of pertinent facilities
• commodity brokers. and operations to enhance compliance and to respond to or anticipate
emerging environmental issues.The Company's Board of Directors has
UTILITY CUSTOMER AND LOAD GROWTH established a committee to oversee environmental issues and to assess
and manage environmental risk.
We develop customer and load growth forecasts for the nextfive We monitor legislative and regulatory developments at different
years.For 2025-2029,we expect electric and natural gas customer levels of government for environmental issues,particularly those with
growth of 1.3 percent and 0.5 percent,respectively.Expected load the potential to impactthe operation of our generating plants and other
growth far the same period is 0.6 percent for electric and 0.4 percent assets,and our ability to provide service to natural gas customers.
for natural gas.These estimates do not include the impact of adding any We continue to be subjectto increasingly stringent or expanded
large load customers. application of environmental and related regulations from all levels
Recent and emerging legislation with potential restrictions to new of government.
connections does create further uncertaintywhen forecasting natural Environmental laws and regulations may restrict or impact our
gas customer and load growth,with additional potential impacts to business activities in many ways,including,but not limited to:
our electric customer and load growth from resulting electrification • increasing the operating costs of generating plants,natural
efforts.Further,natural gas extension allowance programs(which gas and electric transmission and distribution facilities and
encourage customer growth)have been phased out in Washington and other assets,
are in the process of being phased out in Oregon.See further discussion • increasing the lead time and capital costs for the construction of
regarding regulations impacting our natural gas operations as included new generating plants,natural gas and electric transmission and
in"Environmental Issues and Contingencies". distribution facilities and other assets,
The forward-looking statements setforth above regarding • requiring modification of existing generating plants,natural gas
retail load growth are based,in part,upon purchased economic and electric transmission and distribution facilities,
forecasts and publicly available population and demographic studies. • requiring existing generating plant,natural gas and/or operations
The expectations regarding retail load growth are also based upon to be curtailed or shutdown,
various assumptions,including: • reducing the amount of energy available from generating plants,
• assumptions relating to weather and economic and • restricting the types of generating plants that can be built or
competitive conditions, contracted with,
• internal analysis of company-specific data,such as energy • requiring construction of specific types of generation plants at
consumption patterns, higher cost,and
• internal business plans, • increasing costs of distributing,or limiting our ability to distribute,
• an assumption thatwe will incur no material loss of retail electricity and/or natural gas.
customers due to self-generation or retail wheeling,and
• an assumption that demand for electricity and natural gas as a fuel Compliance with environmental laws and regulations could result
for mobility will for now be immaterial. in increases to capital expenditures and operating expenses.We intend
to seek recovery of such costs through the ratemaking process.
Changes in actual experience can vary significantly from
our projections. Policies and Other Impacts Related to
See also"Competition"above for a discussion of competitive Climate Change
factors that could affect our results of operations in the future. Legal and policy changes responding to concerns about climate
changes,and the potential impacts of such changes,could have a
ENVIRONMENTAL ISSUES significant effect on our business.Direct impacts of climate changes
AND CONTINGENCIES include,without limitation,variations in the amount and timing of
energy demand throughoutthe year,variations in the level and timing of
We are subjectto environmental regulation byfederal,state,tribal precipitation throughout the year,as well as variations in temperature,
and local authorities.The generation,transmission,distribution,service and the resulting impact on the availability of hydroelectric resources
and storage facilities in which we have ownership interests or which at times of peak demand as well as an increased risk of wildfire and
we may need to acquire or develop are subjectto environmental laws, other impacts of extreme weather.Indirect impacts include,without
regulations and rules relating to construction permitting,air quality and limitation,changes in laws and regulations intended to mitigate the risk
emissions,water quality,fisheries,wildlife,endangered species,avian of,or alter,climate changes,including restrictions on the operation of
interactions,wastewater and stormwater discharges,waste handling, our power generation resources and obligations or limitations imposed
natural resource protection,historic and cultural resource protection, on the sale of natural gas.When direct or indirect impacts of climate
and other similar activities.These laws and regulations require the change lead to increased operational costs or capital investments,we
Companyto make substantial investments in compliance activities intend to recover such costs through the ratemaking process.
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Washington Legislation and Regulatory Actions agreements of five years or longer duration to purchase energy
Clean Energy Transformation Act produced by plants that have emission levels higherthan 925 pounds
In 2019,the Washington State Legislature passed the CETA, of GHG per MWh.The Washington State Department of Commerce
which effectively prohibits sales of energy produced by coal-fired reviews the standard every five years.We intend to seek recovery
generation to Washington retail customers after December 31,2025. of costs related to ongoing and new requirements through the
In addition,the CETA establishes the policy of Washington State ratemaking process.
that retail sales of electricity to Washington customers must be
carbon-neutral by January 1,2030 and requires that each electric Washington Climate Commitment Act
utility demonstrate compliance with this standard by using electricity The CCA,and its implementing regulations,established a cap and
from renewable and other non-emitting resources for 100 percent trade program to reduce GHG emissions and achieve the GHG limits
of the utility's retail electric load over consecutive multi-year previously established under state law.The final rules implement a
compliance periods;provided,however,that through December 31, cap on emissions,provide mechanisms for the sale and tracking of
2044the utility may satisfy up to 20 percent of this requirementwith tradable emissions allowances and establish additional compliance
specified payments,credits and/or investments in qualifying energy and accountability measures.The state issues allowances necessary
transformation projects. to serve our Washington retail electric load;off-system wholesale
The law has direct,specific impacts on Colstrip,which are unique sales may result in additional obligation costs.The CCA also has direct
to those owners of Colstrip who serve Washington customers.See impacts on our Idaho electric operations as it applies to power that is
"Colstrip"section and"Note 22 of the Notes to Consolidated Financial delivered in Washington but is allocated to Idaho customers(wholesale
Statements"for further details on the impacts of the CETA on Colstrip sales)or power generated in Washington that is delivered to Idaho
and our plans to exit Colstrip through an agreement with NorthWestern. customers.Annually,the model and its resulting calculations must
Our hydroelectric and biomass generation facilities can be used to be certified by an independent third party and submitted to Ecology
comply with the CETA's clean energy standards.We intend to seek for approval.If the independent third party or Ecology disagrees with
recovery of costs associated with the clean energy legislation and the approach or any of the calculations,it could result in a change to
regulations through the regulatory process. the number of allowances needed for compliance and could result
In compliance with the CETA,we filed our first CEIP in October in changes to anticipated costs for our electric operations.For
2021,that was approved by the WUTC in June 2022.The CEIP's Washington electric,we are allowed to defer any incremental costs
four-year compliance period of 2022-2025 proposes targets and associated with the CCA in accordance with our regulatory accounting
specific actions to meet Washington State's clean energy goals and order;however,in Idaho we are not allowed to recover any costs
the equitable distribution of benefits and reduction of burdens to all associated with CCA compliance from customers.See"Note 22 of the
customers.We have and will continue to deliver on our commitments Notes to Condensed Consolidated Financial Statements"for further
under the current CEIP and are planning targets and actions for our next discussion of the CCA costs associated with our electric operations and
CEIP.The 2025 CEIP detailing targets and actions for the 2026-2029 impacts on our financial results.
compliance period will be filed with the WUTC by October 1,2025.Some For our Washington natural gas operations,we have additional
highlights of the proposed plan include: financial burdens associated with compliance which are being deferred
• increasing the annual targets for renewable and non-emitting and recovered from customers in accordance with our regulatory
energy delivered to Washington electric customers, accounting order in Washington(see"Executive Overview"for
• continuing to provide cost-effective energy efficiency programs to discussion of the CCA).
lower electric energy consumption,
• measuring a set of customer benefit indicator metrics to ensure Washington State Building Codes
the equitable distribution of energy and non-energy benefits and In April 2022,the Washington State Building Code Council(SBCC)
reduction of burden to all customers and those residing in Named approved a revised energy code requiring most new commercial
Communities,and buildings and large multifamily buildings to install all-electric space
• the Named Communities Investment Fund that will invest up to heating.An amendment to the code allows for natural gas to supplement
$5 million annually in projects,programs,and initiatives that electric heat pumps.In addition,in November 2022,the SBCC approved
directly benefit customers residing in historically disadvantaged new building and energy codes for residential housing,requiring new
and vulnerable communities. residential buildings in Washington to use electricity as the primary
heat source.
Through the third quarter of 2025,we will seek input from the Both the commercial and residential building and energy codes
public and interested parties on the 2025 CEIP.The plan will represent were the subject of legal challenges in both Washington State Superior
our objectives when filed in October 2025,and will be subjectto change Court(the State Action)and in the Federal District Court for the
through the approval process with the WUTC. Eastern District of Washington(the Federal Action).In the Federal
Action,to which the Company was a party,the plaintiffs challenged the
Emissions Performance Standard amendments on the grounds that they were preempted by the federal
Washington applies a GHG emissions performance standard Energy Policy and Conservation Act(EPCA),citing the Ninth Circuit's
to electric generation facilities used to serve retail loads,whether decision in California Restaurant Association v.Berkeley(the Berkeley
the facilities are located within Washington or elsewhere.The Decision),which involved similar restrictions on the use of natural gas in
emissions performance standard prevents utilities from constructing new construction in Berkeley,California.
or purchasing generation facilities,or entering into power purchase
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In May 2023,the SBCC voted to delay the effective date of Department of Environmental Quality did not appeal the decision,but
the code amendments and commenced an emergency rulemaking instead went backthrough the rulemaking process.The result of that
process to evaluate additional amendments to the code in light of the process was a new version of the CPP that is very similar to the original.
Berkeley decision.As a result of this action,in July 2023,the Federal We are reviewing the new rules,and considering what legal action,
District Court declined to issue a preliminary injunction to preventthe if any,may be taken.To the extentthe new rules impose additional
amendments from taking effect.The plaintiffs in the Federal Action compliance costs,we will seek to recover those costs through the
subsequently dismissed the action,without prejudice to their ability to ratemaking process.
refile after the SBCC rulemaking process is complete.
The SBCC has since voted to approve revised residential and Emissions Performance Standard
commercial energy regulations that continue to require new residential Oregon applies a GHG emissions performance standard to electric
and commercial buildings in Washington to use electricity as the generation facilities,requiring that new baseload natural gas plant,
primary heat source.In light of this action,the plaintiffs in the State non-base load natural gas plant,and non-generating facility reduce its
Action amended their complaintto challenge the new regulations. net carbon dioxide emissions 17 percent below whatthe Oregon Facility
The State Action remains pending. Siting Council identifies as the most efficient combustion-turbine plant
In May 2024,we,along with Cascade Natural Gas Corporation, in the United States.The Oregon Energy Facility Siting Council issues
Northwest Natural Gas Company,and a coalition of homebuilders, rules periodicallyto update the standard,as more efficient power
heating unit dealers and other parties,filed a lawsuit challenging the plants are built.The standard can be met by combination of efficiency,
approved building codes on the grounds thatthey are preempted by cogeneration,and offsets from carbon dioxide mitigation measures.
EPCA.The Iawsuitwas filed in the United States District Courtforthe We have thermal generation located in Oregon,and as such this
Western District of Washington.This lawsuit remains pending. standard applies to that facility.We intend to seek recovery of costs
In November 2024,Washington voters approved Initiative 2066, related to requirements through the ratemaking process.
which would prohibit state and local governments from restricting
access to natural gas,prohibit the SBCC from discouraging or penalizing Clean Air Act (CAA)
the use of natural gas,and prohibit the WUTC from approving any The CAA creates numerous requirements for our thermal
multi-year rate plan that requires or incentivizes natural gas companies generating plants.Colstrip,Kettle Falls GS,Coyote Springs and
to terminate or limit natural gas service.Opponents of the Initiative Rathdrum CT all require CAA Title V operating permits.The Boulder
have since filed suit in Washington state court challenging the validity Park GS,Northeast CT and other operations require minor source
of the Initiative,while proponents of the Initiative have also filed suit in permits or simple source registration permits.We have secured
Washington state courtto require the SBCC to comply with the new law. these permits and certify our compliance with Title V permits on an
Both lawsuits remain pending. annual basis.These requirements can change overtime as the CAA or
Overtime,the building code changes would likely have an adverse applicable implementing regulations are amended and new permits are
impact on our natural gas business and natural gas customers but could issued.We actively monitor legislative,regulatory and other program
also have a positive effect on our electric business.While we are in the developments of the CAA that may impact our facilities.
process of studying the implications of the changes on our business,
atthis time we are not able to quantify the likely net effect,positive Other
or negative,on our overall results of operations over the long term. For other environmental issues and other contingencies see
However,the changes would clearly require that additional generating "Note 22 of the Notes to Consolidated Financial Statements."
capacity be available to utilities and customers in Washington state.
COLSTRIP
Oregon Legislation and Regulatory Actions
Climate Protection Plan Colstrip is a coal-fired generating plant in southeastern Montana
In March 2020,Oregon Governor Kate Brown issued Executive that includes four units and which is owned by six separate entities.
Order No.20-04,"Directing State Agencies to Take Actions to We have a 15 percent ownership interest in Units 3&4.The owners
Reduce and Regulate Greenhouse Gas Emissions."The Executive of Units 3&4 share operating and capital costs pursuantto the terms
Order launched rulemaking proceedings for every Oregon agency of an operating agreement among them(the Ownership and Operation
with jurisdiction over GHG-related matters,with the aim of reducing Agreement).Due to the enactment of CETA in Washington,in January
Oregon's overall GHG emissions to 80 percent below 1990 levels by 2050. 2023 we entered into an agreement with NorthWestern under which,
This Executive Order led to the Oregon Department of Environmental subject to the terms and conditions specified in the agreement,we
Quality developing cap and reduce rules known as the CPP.The CPP, will transfer our ownership of Colstrip.See"Note 22 of the Notes
which became effective in January 2022,outlines GHG emissions to Consolidated Financial Statements"forfurther discussion of
reduction goals of 50 percent by 2035 and 90 percent by 2050 from the the agreement.
1990 baseline.The first three-year compliance period was to be 2022
through 2024. Coal Ash Management/Disposal
In March 2022,we,along with the utilities NW Natural and In 2015,the EPA issued a final rule regarding coal combustion
Cascade Natural Gas,filed a lawsuit requesting judicial review of the residuals(CCRs),also termed coal combustion byproducts or coal ash
CPP.This action was subsequently consolidated with a lawsuit filed by (Colstrip produces this byproduct).The CCR rule has been the subject
several other parties.In December 2023,the Oregon Court of Appeals of ongoing litigation.In August 2018,U.S.Court of Appeals for the D.C.
issued a decision declaring the CPP regulations invalid.The Oregon Circuit struck down provisions of the rule.In December 2019,a proposed
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revision to the rule was published in the Federal Register to address the to determine whether any potential changes to our existing
D.C.Circuit's decision.The rule includes technical requirements for CCR remediation efforts are required.
landfills and surface impoundments under Subtitle D of the Resource
Conservation and Recovery Act,the nation's primary law for regulating We continue to analyze each of these rules to assess the impact,if
solid waste.The Colstrip owners developed a multi-year compliance any,it may have on our existing generating units,including Colstrip and/
plan to address the CCR requirements along with existing state or our natural gas-fired generating units.A substantial number of legal
obligations expressed through the 2012 Administrative Order on Consent challenges have been filed regarding these rules.Atthis time,we do not
(AOC)with Montana Department of Environmental Quality(MDEG). believe the implementation of these rules will impact our agreementto
These requirements continue despite the 2018 federal court ruling. transfer our Colstrip ownership to NorthWestern,which is planned to
The AOC requires MDEO to review Remedy and Closure plans close by December 31,2025.Additionally,along with the other owners
for all parts of the Colstrip plant through an ongoing public process. (including the operator),we have assessed the CCR Rule and believe
The AOC also requires the Colstrip owners to provide financial there will not be a material change to our asset retirement obligation
assurance,primarily in the form of surety bonds,to secure each for Colstrip.
owner's pro rata share of various anticipated closure and remediation
obligations.We are responsible for our share of two major areas:the Colstrip Arbitration, Litigation, and
Plant Site Area and the Effluent Holding Pond Area.Generally,the Other Contingencies
plans include the removal of boron,chloride,and sulfate from the See"Note 22 of the Notes to Consolidated Financial Statements"
groundwater,closure of the existing ash storage ponds,and installation for disputes,arbitration,litigations and other contingencies related to
of a new water treatment system to convertthe facility to a dry ash Colstrip.We intend to seek recovery of costs associated with Colstrip
storage.Our share of the posted surety bonds is$16 million.This through the ratemaking process.
amount is updated annually,with expected obligations decreasing
overtime as remediation activities are completed.The contemplated 2025 Presidential Executive Action
transfer of our interest in Colstrip to Northwestern will not relieve us of Since taking office,the U.S.President's Administration has issued
these obligations. a multitude of Executive Orders directed towards national energy
resources and development.These include actions to(a)immediately
2024 EPA Regulations for Power Plants pause the disbursement of funds appropriated through the Inflation
On April 25,2024,the EPA released a package of final regulations Reduction Act of 2022 or the Infrastructure and Jobs Act;(b)require
addressed to electric generation facilities.These include: agency review of regulations,programs and executive orders that might
• Greenhouse gas regulations for new natural gas-based turbines limitthe development or use of domestic energy resources such as
and existing coal-based units,pursuantto section III of the oil,natural gas,coal and nuclear;(c)revoke the prior Administration's
CleanAirAct.This rule finalizes(a)the repeal of the Affordable Executive Orders on climate policy;(d)withdraw from the Paris Accord;
Clean Energy rule;(b)guidelines for GHG emissions from existing (e)require agency review of regulations,programs and executive orders
fossil fuel-fired steam generating electric generating units; that limit consumer choice for vehicles and appliances;(f)require
and(c)revisions to existing performance standards for new, review of the 2009 EPA endangerment finding for greenhouse gasses
reconstructed or heavily modified fossil fuel-fired stationary underthe Clean Air Act;(g)directthe EPA to revise or eliminate
combustion turbine electric generating units. the use of a social cost of carbon in federal decision-making;
• Supplemental Effluent Limitations Guidelines and Standards (h)terminate certain offshore wind projects;(i)expedite resource
forthe Steam Electric Power Generating Point Source Category development and permitting in Alaska,including liquified natural gas;
(ELG Rule).The ELG Rule applies to wastewater discharges from and(j)declare a national emergencyto expedite the development of
coal-based generating units and establishes pollution control energy infrastructure.
requirements.The Rule builds upon the 2015 and 2020 ELG Rules. We continue to assess potential impacts from these and other
It includes a subcategory of requirements for coal plants that will executive actions that may be taken by the Administration.To the extent
be retired or repowered bythe end of 2028 and provides additional that any action taken bythe Administration results in increased costs
compliance pathways for coal plants that retire bythe end of 2034. for our business,we will seekto recoverthose costs through the rate-
• Updated Mercury and Air Toxics Standards,pursuantto section making process.
112 of the Clean Air Act(MATS Rule).The MATS Rule sets
emissions limits forfilterable particulate matterfor coal-based ENTERPRISE RISK MANAGEMENT
generating units.The Rule reduces those limits from the standards
that were originally set in 2012. The following discussion focuses on our processes and
• Disposal of Coal Combustion Residuals from Electric Utilities— procedures to identify and manage the principal known risks that
Legacy CCR Surface Impoundments(CCR Rule).The CCR Rule we face.See"Item 1A:Risk Factors,""Item 1C:Cybersecurity,"
builds on 2015 regulations,which applyto active power plants that "Forward-Looking Statements,"as well as"Environmental Issues
dispose of coal combustion residuals in surface impoundments or and Contingencies."
landfills,by regulating inactive surface impoundments at inactive We considerthe management of these risks an integral part of
power plants and CCR management units at active and inactive managing our core businesses and a key element of our approach to
power plants.In January 2025,the EPA issued a revised proposed corporate governance.
and final rule to address language inconsistencies and submittal Risk management includes identifying and measuring various
deadlines.The owners of Colstrip will be performing analyses forms of riskthat may affectthe Company.We have an enterprise risk
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management process for managing risks throughout the organization. of the Board of Directors and from senior management with input from
Our Board of Directors and its Committees take an active role in the each operating department.
oversight of risk affecting the Company.We collect risk information
across the Company,and senior management reviews the Company's Climate Change Risk
major risks and risk mitigation measures.Each area identifies risks Multiple departments work to mitigate risks related to climate
and implements the related mitigation measures.The enterprise risk change.Climate change adds uncertaintyto existing risks thatwe
process supports management in identifying,assessing,quantifying, have historically managed and mitigated.These efforts are reflected in
managing and mitigating the risks.Despite all risk mitigation measures, electric and gas operations,investments in assets and asset reliability
however,risks are not eliminated. and resiliency across our operations.
Our primary identified categories of risk exposure are: Power Supply staff monitor items such as snowpack and broader
• Utility regulatory precipitation conditions,patterns and modeled or predicted climate
• Operational change.These and other assessments are incorporated into our IRP
• Climate Change processes.Environmental Affairs,Governmental Affairs and other
• Cybersecurity departments monitor policy and regulatory developments that may
• Technology relate to climate change to engage these efforts constructively and
• Strategic prepare for compliance matters.
• External mandates Our Wildfire Resiliency Plan was also developed to mitigate
• Financial the increased wildfire risk associated with climate change.See
• Energy commodity "Item 1.Business—Wildfire Resiliency Plan"forfurther discussion
• Compliance of the program.
In addition,issues concerning climate-related risk and our clean
Our primary categories of risks are described in"Item 1A. energy goals are reviewed and regularly discussed bythe Board of
Risk Factors." Directors.The Board's Environmental,Technology and Operations
Committee regularly reviews and discusses environmental and climate
Utility Regulatory Risk related risks,and advises the full Board on critical or emerging risks
We have a regulatory group which seeks to mitigate regulatory and/or related policies.Likewise,the Audit Committee provides
riskthrough open communications with regulatory commissioners oversight of climate-related disclosures.
and staff regarding the Company's business plans and concerns.
The regulatory group also considers the regulator's priorities and Cybersecurity Risk
rate policies and makes recommendations to senior management See"Item 1C.—Cybersecurity"for discussion of Cybersecurity
on regulatory strategy for the Company.Oversight of our regulatory risk and processes for mitigation.
strategies and policies is performed by senior management and the
Board of Directors.See"Regulatory Matters"forfurther discussion of Technology Risk
regulatory matters affecting the Company. Technology governance is led by senior management,and
includes newtechnology strategy,risk planning and major project
Operational Risk planning and approval.Oversight of technology risk is performed by
To manage operational and event risks,we maintain emergency the Board's Environmental,Technology and Operations Committee.
operating plans,business continuity and disaster recovery plans, We are dedicated to securing,maintaining and evaluating and
maintain insurance coverage against some,but not all,potential losses developing our information technology systems.We evaluate our
and seekto negotiate indemnification arrangements with contractors technology for obsolescence and upgrade or replace systems as
for certain event risks.In addition,we design and follow detailed necessary.The technology project management office and enterprise
vegetation management and asset management inspection plans,which business performance team provide project cost,timeline and
help mitigate wildfire and storm event risks,as well as identify utility schedule oversight.
assets which may be failing and in need of repair or replacement.We
also have an Emergency Operating Center,which is a team of employees Strategic Risk
that plan for and train to deal with potential emergencies or unplanned Oversight of strategic risk is performed bythe Board of Directors
outages at our facilities,resulting from natural disasters or other and senior management.We have a Senior Vice President,Energy
events.To prevent unauthorized access to our facilities,we have both Policy and Chief Strategy Officer who leads strategic initiatives,
physical and cybersecurity in place. searches for and evaluates opportunities and makes recommendations
To address the risk related to fuel cost,availability and delivery to other members of senior management and the Board of Directors.
restraints,we have an energy resources risk policy,which includes We not only focus on whether opportunities are financially viable,but
a wholesale energy markets credit policy and control procedures to also consider whether these opportunities fall within our core policies
manage energy commodity price and credit risks.Development of the and our core business strategies.We strive to mitigate reputational
energy resources risk policy includes planning for sufficient capacity risk primarily through a focus on adherence to our core policies,
to meet our customer and wholesale energy delivery obligations.See including our Code of Conduct,maintaining an appropriate culture
further discussion of the energy resources risk policy below. and tone atthe top,and through communication and engagementwith
Oversight of the operational risk management process is external stakeholders.
performed bythe Environmental,Technology and Operations Committee
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External Mandates Risk Access to Capital Markets
Oversight of external mandate risk mitigation strategies is Our capital requirements rely to a significant degree on regular
performed by the Environmental,Technology and Operations Committee access to capital markets.We actively engage with rating agencies,
of the Board of Directors and senior management.Our Environmental, banks,investors and state public utility commissions to understand
Social and Governance program creates a framework that is intended and address the factors that support access to capital markets on
to attract investment,enhancement of our brand,and promotion of reasonable terms.We manage our capital structure to maintain a
sustainable long-term growth.We also have employees dedicated financial risk profile that we believe these parties will deem prudent.
to actively engage and monitor federal,state and local government We forecast cash requirements to determine liquidity needs,including
positions and legislative actions that may affect us or our customers. sources and variability of cash flows that may arise from spending plans
To preventthe threat of municipalization,we work to build or from external forces,such as changes in energy prices or interest
strong relationships with the communities we serve through,among rates.Our financial and operating forecasts consider various metrics
other things: that affect credit ratings.Our regulatory strategies include working
• communicating and being involved with local business leaders and with state public utility commissions and filing for rate changes as
community organizations, appropriate to meet financial performance expectations.
• providing customers with a multitude of limited income initiatives,
including energy fairs,senior outreach,low income workshops, Interest Rate Risk
mobile outreach strategy and a Low Income Rate Assistance Plan, Uncertainty about future interest rates causes risk related to a
• tailoring internal company initiatives to focus on choices for portion of existing debt,future borrowing requirements,and pension
customers,to increase their overall satisfaction with the and other post-retirement benefit obligations.We manage debt
Company,and interest rate risk by limiting variable rate debtto a percentage of total
• engaging in the legislative process in a manner that fosters the capitalization,monitoring market conditions when timing the issuance
interests of our customers and the communities we serve. of long-term debt and optional debt redemptions and establishing fixed
rate long-term debt with varying maturities.We may hedge a portion of
Financial Risk our interest rate risk with financial derivative instruments,particularly
Financial risk is impacted by many factors,including regulation to manage risk associated with significant concentrations of forecasted
and rates,weather risk,access to capital markets,interest rate debt issuances.The Finance Committee of the Board of Directors
risk,credit risk,and foreign exchange risk.Our Treasury department periodically reviews and discusses interest rate risk management
monitors our daily cash position and future cash flow needs,as well processes and the steps management has undertaken to control
as monitoring market conditions to determine the appropriate course interest rate risk.Our Risk Management Committee(RMC)also reviews
of action for capital financing strategies.Oversight of financial risk the interest rate risk management plan.
mitigation strategies is performed by senior management and the Our interest rate swap derivatives are considered economic
Finance Committee of the Board of Directors. hedges againstthe future forecasted interest rate payments of long-
term debt.Interest rates on our long-term debt are generally set based
Regulation and Rates on underlying U.S.Treasury rates plus credit spreads,which are based
The Regulatory Affairs department is critical in mitigation on our credit ratings and prevailing market prices for debt.The interest
of financial risk as they have regular communications with state rate swap derivatives hedge against changes in the U.S.Treasury rates
commission regulators and staff and they monitor and develop rate but do not hedge the credit spread.
strategies.Rate strategies,such as decoupling and operating expense Through regulatory accounting practices similar to energy
balancing accounts,help mitigate the impacts of revenue fluctuations commodity derivatives,interim mark-to-market gains or losses are
due to weather,conservation or the economy. offset by regulatory assets and liabilities.See"Energy Commodity
Risk".Upon settlement of interest rate swap derivatives,the cash
Weather Risk payments made or received are recorded as a regulatory asset or
To partially mitigate the risk of financial under-performance liability and(after a pruriency review through a general rate case)
due to weather-related factors,we developed decoupling rate are subsequently amortized as a component of interest expense
mechanisms that were approved by the Washington,Idaho and Oregon over the life of the associated debt.The settled interest rate swap
commissions.Decoupling mechanisms are designed to break the link derivatives are included as a part of the cost of debt calculation for
between a utility's revenues and consumers'energy usage and instead ratemaking purposes.
provide revenue based on the number of customers,thus mitigating
a large portion of the risk associated with lower customer loads.
See"Note 23 of the Notes to Consolidated Financial Statements"
for further discussion of our decoupling mechanisms.
AVISTA m

The following table summarizes interest rate swap derivatives outstanding as of December 31,2024 and December 31,2023(dollars in millions):
December 31,2024 December 31,2023
Number of agreements 1 3
Notional amount $ 10 $ 30
Mandatory cash settlement dates 2025 2024 to 2025
Short-term derivative assets(') $ 1 $ 4
(1) There are offsetting regulatory assets and liabilities for these items on the Consolidated Balance Sheets in accordance with regulatory accounting practices.
The interest rate on$52 million of long-term debt to affiliated trusts is adjusted quarterly,reflecting current market rates.Amounts borrowed
under our committed line of credit agreements have variable interest rates.
The following table shows long-term debt and related weighted-average interest rates,by expected maturity dates as of December 31,2024
(dollars in millions):
2025 2026 2027 2028 2029 Thereafter Total Fair Value
Fixed rate long-term debt(') $ — $ — $ — $ 25 $ 15 $ 2,594 $ 2,634 $ 2,101
Weighted-average
interest rate 6.37% 5.92% 3.64% 4.35%
Variable rate long-term debt
to affiliated trusts — — — — — $ 52 $ 52 $ 47
Weighted-average
interest rate — — — — — 5.64% 5.64%
(1) These balances include the fixed rate long-term debt ofAvista Corp.,AEL&P and AERC.
Our pension plan is exposed to interest rate risk because the We seek to mitigate credit risk by:
value of pension obligations and other post-retirement obligations • transacting through clearinghouse exchanges,
varies directly with changes in the discount rates,which are derived • entering into bilateral contracts that specify credit terms and
from end-of-year market interest rates.In addition,the value of pension protections against default,
investments and potential income on pension investments is partially • applying credit limits and duration criteria to existing and
affected by interest rates because a portion of pension investments prospective counterparties,
are in fixed income securities.Oversight of pension plan investment • actively monitoring credit exposures,
strategies is performed bythe Finance Committee of the Board of • asserting collateral rights with counterparties,and
Directors,which approves investment and funding policies,objectives • carrying outtransaction settlements timely and effectively.
and strategies that seek an appropriate return for the pension plan.We
manage interest rate risk associated with pension and other post- The extent of transactions conducted through exchanges has
retirement benefit plans by investing a targeted amount of pension plan increased,as many market participants have shown a preference
assets in fixed income investments that have maturities with similar toward exchange trading and have reduced bilateral transactions.
profiles to future projected benefit obligations.See"Note 12 of the We actively monitor the collateral required by such exchanges to
Notes to Consolidated Financial Statements"for further discussion of effectively manage capital requirements.
our investment policy associated with the pension plan assets. Our exposure to risks attributable to counterparties'credit
profile is dynamic in normal markets and may change significantly in
Credit Risk more volatile markets.The amount of potential default risk from each
Counterparty Non-Performance Risk counterparty depends on the extent of forward contracts,unsettled
We enter into bilateral transactions with various counterparties. transactions,interest rates and market prices.There is a risk that we do
We also trade energy and related derivative instruments through not obtain sufficient additional collateral from counterparties that are
clearinghouse exchanges. unable or unwilling to provide it.
Counterparty non-performance risk relates to potential lasses that
we would incur due to non-performance of contractual obligations by Credit Risk Liquidity Considerations
counterparties to deliver energy or make financial settlements. To address the impact on our operations of energy market price
Changes in market prices may dramatically alter the size of credit volatility,our hedging practices for electricity(including fuel for
risk with counterparties,even when we establish conservative credit generation)and natural gas extend beyond the current operating year.
limits.Should a counterparty fail to perform,we may be required to Executing this extended hedging program may increase our credit risk
honor the underlying commitment or to replace existing contracts with and demands on us for collateral.Our credit risk management process
contracts atthen-current market prices. is designed to mitigate such credit risks through limit setting,contract
protections and counterparty diversification,among other practices.
® AVISTA

Credit risk affects demands on our capital.We are subjectto Canadian currency prices.The short-term natural gas transactions
limits and credit terms that counterparties may assertto enter into are typically settled within sixty days with U.S.dollars.We hedge a
transactions with them and maintain acceptable credit exposures. portion of the foreign currency risk by purchasing Canadian currency
Many of our counterparties allow unsecured credit at limits prescribed exchange derivatives when such commodity transactions are initiated.
by agreements or their discretion.Capital requirements for certain This risk has not had a material effect on our financial condition,results
transaction types involve a combination of initial margin and market of operations or cash flows and these differences in cost related
value margins without unsecured credit threshold.Counterparties to currency fluctuations are included with natural gas supply costs
may seek assurances of performance in the form of letters of credit, for ratemaking.
prepayment or cash deposits. Further information for derivatives and fair values is disclosed at
Credit exposure can change significantly in periods of commodity "Note 8 of the Notes to Consolidated Financial Statements"and"Note
price and interest rate volatility.As a result,sudden and significant 18 of the Notes to Consolidated Financial Statements."
demands may be made against our credit facilities and cash.We actively
monitorthe exposure to possible collateral calls and take stepsto Energy Commodity Risk
minimize capital requirements. We mitigate energy commodity risk primarily through our energy
As of December3l,2024,we had cash deposited as collateral resources risk policy,which includes oversightfrom the RMC and
of$24 million and letters of credit of$12 million outstanding related oversight from the Audit Committee and the Environmental,Technology
to energy contracts.Price movements and/or a downgrade in our and Operations Committee of the Board of Directors.In conjunction
credit ratings or other established credit criteria could impact with the oversight committees,our management team develops
further the amount of collateral required.See"Credit Ratings"for hedging strategies,detailed resource procurement plans,resource
further information. optimization strategies and long-term integrated resource planning
to mitigate some of the risk associated with energy commodities.The
For example,in addition to limiting our ability to conduct transactions, various plans and strategies are monitored daily and developed with
if our credit ratings were lowered to below"investment grade"based quantitative methods.
on positions outstanding at December 31,2024(including contracts Our energy resources risk policy includes a wholesale energy
that are considered derivatives and those that are considered non- markets credit policy and control procedures to manage energy
derivatives),we would potentially be required to postthe following commodity price and credit risks.Nonetheless,adverse changes in
additional collateral(dollars in millions): commodity prices,generating capacity,customer loads,regulation
and other factors may result in losses of earnings,cash flows and/or
December 31,2024 fair values.
Additional collateral taking into account We measure the volume of monthly,quarterly and annual
contractual thresholds") $ 22 energy imbalances between projected power loads and resources.
Additional collateral without The measurement process is based on expected loads at fixed prices
contractual thresholds 33 (including those subject to retail rates)and expected resources to the
extent costs are essentially fixed by virtue of known fuel supply costs
(1) This amountis different from the amount disclosed in"Note 8 of the Notes or projected hydroelectric conditions.To the extent expected costs
to Consolidated Financial Statements'because,while this analysis includes are not fixed,either because of volume mismatches between loads
contracts that are not considered derivatives in addition to the contracts and resources or because fuel cost is not locked in through fixed price
considered in Note 8,this analysis also takes into account contractual contracts or derivative instruments,our risk policy guides the process
threshold limits that are not considered in Note 8. to manage this open forward position over a period of time.Normal
operations result in seasonal mismatches between power loads and
Under the terms of interest rate swap derivatives that we enter available resources.We vary the operation of generating resources to
into periodically,we may be required to post cash or letters of credit as match parts of intra-hour,hourly,daily and weekly load fluctuations.
collateral depending on fluctuations in the fair value of the instrument. We use the wholesale power markets,including the natural gas market
As of December 31,2024,we had one interest rate swap agreement as it relates to power generation fuel,to sell projected resource
outstanding with a notional amounttotaling$10 million and we had surpluses and obtain resources when deficits are projected.We buy and
deposited no cash as collateral forthese interest rate swap derivatives. sell fuel forthermal generation facilities based on comparative power
If our credit ratings were lowered to below"investment grade"based market prices and marginal costs of fueling and operating available
on interest rate swap derivatives outstanding as of December 31,2024, generating facilities and the relative economics of substitute market
we would not be required to post additional collateral because all of our purchases for generating plant operation.
outstanding interest rate swaps were in an asset position atthe time. To address the impact on our operations of energy market price
volatility,our hedging practices for electricity(including fuel for
Foreign Currency Risk generation)and natural gas extend beyond the current operating year.
A significant portion of our utility natural gas supply(including Executing this extended hedging program may increase credit risks.
fuel for electric generation)is obtained from Canadian sources.Most of Our credit risk management process is designed to mitigate such credit
those transactions are executed in U.S.dollars,which avoids foreign risks through limit setting,contract protections and counterparty
currency risk.A portion of short-term natural gas transactions and diversification,among other practices.
long-term Canadian transportation contracts are committed based on
AVISTA

Projected retail natural gas loads and resources are regularly reviewed by operating management and the RMC.To manage the impacts of
volatile natural gas prices,we procure natural gas through a diversified mix of spot market purchases and forward fixed price purchases from various
supply basins and time periods.We have an active hedging program that extends into future years with the goal of reducing price volatility in natural
gas supply costs.We use natural gas storage capacityto support high demand periods and to procure natural gas when price spreads are favorable.
Securing prices throughoutthe year and even into subsequent years mitigates potential adverse impacts of significant purchase requirements in a
volatile price environment.
The following table presents energy commodity derivative fair values as a net asset or(liability)as of December 31,2024 that are expected to settle
in each respective year(dollars in millions).There are no expected deliveries of energy commodity derivatives after 2027:
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Year Physical ' Financial ' Physical�') Financial") Physical�') Financial ' Physical('� Financial'
2025 $ — $ — $ (23) $ (19) $ 10 $ 7 $ (3) $ —
2026 — — (9) (3) — — — —
2027 — — (2) — — — — —
The following table presents energy commodity derivative fair values as a net asset or(liability)as of December 31,2023 that were expected to
settle in each respective year(dollars in millions).There were no expected deliveries of energy commodity derivatives after 2026:
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Year Physical ' Financial ' Physical�') Financial(11 Physical M Financial(1) Physical(1) Financial(1)
2024 $ 1 $ — $ (7) $ (51) $ 7 $ 2 $ (3) $ 1
2025 — — (6) (5) — — (4) (1)
2026 — — (1) — — — — —
(1) Physical transactions represent commodity transactions where we will take or make delivery of either electricity or natural gas;financial transactions represent
derivative instruments with delivery of cash in the amount of the benefit or cost but with no physical delivery of the commodity,such as futures,swap derivatives,
options,or forward contracts.
The above electric and natural gas derivative contracts will be included in either power supply costs or natural gas supply costs during the
period they are delivered and will be included in the various deferral and recovery mechanisms(ERM,PCA,and PGAs),or in the general rate case
process,and are expected to eventually be collected through retail rates from customers.
See"Item 1.Business—Electric Operations"and"Item 1.Business—Natural Gas Operations,"for additional discussion of the risks associated
with Energy Commodities.
Compliance Risk
Compliance risk is mitigated through separate Regulatory and Environmental Compliance departments that monitor legislation,regulatory
orders and actions to determine the overall potential impact and develop strategies for complying with the various rules and regulations.We also
engage outside attorneys and consultants,when necessary,to help ensure compliance with laws and regulations.Oversight of compliance risk
strategy is performed by senior management,including the Chief Compliance Officer,and the Environmental,Technology and Operations Committee
and the Audit Committee of the Board of Directors.
See"Item 1.Business,Regulatory Issues"through"Item 1.Business,Reliability Standards"and"Environmental Issues and Contingencies"for
further discussion of compliance issues that impact our Company.
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk
The information required bythis item is setforth in the Enterprise Risk Management section of"Item 7.Management's Discussion and Analysis"
and is incorporated herein by reference.
ITEM 8. Financial Statements and Supplementary Data
The Report of Independent Registered Public Accounting Firm and Financial Statements begin on the next page.
® AVISTA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Avista Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Avista Corporation and subsidiaries(the"Company")as of
December 31,2024 and 2023,the related consolidated statements of income,comprehensive income,equity,and cash flows,for each of the
three years in the period ended December 31,2024,and the related notes(collectively referred to as the"financial statements").In our opinion,
the financial statements present fairly,in all material respects,the financial position of the Company as of December 31,2024 and 2023,and the
results of its operations and its cash flows for each of the three years in the period ended December 31,2024,in conformity with accounting
principles generally accepted in the United States of America.
We have also audited,in accordance with the standards of the Public Company Accounting Oversight Board(United States)(PCAOB),the
Company's internal control over financial reporting as of December 31,2024,based on criteria established in Internal Control—Integrated Framework
(2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25,2025,expressed an
unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management.Our responsibility is to express an opinion on the Company's
financial statements based on our audits.We are a public accounting firm registered with the PCAOB and are required to be independentwith
respectto the Company in accordance with the U.S.federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB.Those standards require thatwe plan and perform the auditto obtain
reasonable assurance aboutwhetherthe financial statements are free of material misstatement,whether due to error orfraud.Our audits included
performing procedures to assess the risks of material misstatement of the financial statements,whether due to error or fraud,and performing
procedures that respond to those risks.Such procedures included examining,on a test basis,evidence regarding the amounts and disclosures in the
financial statements.Our audits also included evaluating the accounting principles used and significant estimates made by management,as well as
evaluating the overall presentation of the financial statements.We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that(1)relates to accounts or disclosures that are material to the financial
statements and(2)involved our especially challenging,subjective,or complex judgments.The communication of critical audit matters does not alter
in any way our opinion on the financial statements,taken as a whole,and we are not,by communicating the critical audit matter below,providing a
separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Matters—Refer to Notes 1,22,and 23 to the financial statements
Critical Audit Matter Description
The Company accounts for its regulated operations in accordance with Financial Accounting Standards Board Accounting Standards
Codification Topic 980,Regulated Operations("ASC 980").The provisions of this accounting guidance require,among other things,thatfinancial
statements of a rate-regulated enterprise reflectthe actions of regulators,where appropriate.These actions may result in the recognition of
revenues and expenses in time periods that are different than non-rate-regulated enterprises.When this occurs,costs are deferred as assets in
the balance sheet(regulatory assets)and recorded as expenses when those amounts are reflected in rates.Also,regulators can impose liabilities
upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future
(regulatory liabilities).
The Company is subjectto regulation by the Washington Utilities and Transportation Commission,the Idaho Public Utilities Commission,the
Public Utility Commission of Oregon,the Public Service Commission of the State of Montana and the Regulatory Commission of Alaska(collectively,
the"Commissions"),which have jurisdiction with respect to,among other things,the rates of electric and natural gas distribution companies in
Washington,Idaho,Oregon,Montana,and Alaska,respectively.Accounting for the economics of rate regulation has an impact on certain financial
statement line items and disclosures.
The Company's rates are subjectto the rate-setting processes of the Commissions and,in certain jurisdictions,annual earnings oversight.
Rates are determined and approved in regulatory proceedings based on analyses of the Company's costs to provide utility service and are
designed to recover the Company's prudently incurred investments in the utility business and provide a return thereon.Decisions to be made by the
Commissions in the future will impactthe accounting for regulated operations under ASC 980 as described above.While the Company has indicated
that it expects to recover costs from customers through regulated rates,there is a risk thatthe Commissions will not approve(1)full recovery of the
costs of providing utility service or(2)full recovery of all amounts invested in the utility business and a reasonable return on that investment.
AVISTA m

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its
assertions about affected account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory
orders on the financial statements.Management judgments include assessing the likelihood of(1)recovery in future rates of incurred costs,
(2)a disallowance of part of the cost of recently completed plant or plant under construction and(3)refunds to customers.Given that management's
accounting judgments are based on assumptions aboutthe outcome of future decisions bythe Commissions,auditing these judgments required
specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following procedures,among others:
• We tested the effectiveness of management's controls aver the evaluation of the likelihood of(1)the recovery in future rates of costs incurred
and deferred as regulatory assets and(2)a refund or a future reduction in rates that should be reported as regulatory liabilities.We also tested
the effectiveness of management's controls over the initial recognition of amounts as property,plant and equipment;regulatory assets or
liabilities;and the monitoring and evaluation of regulatory developments that may affectthe likelihood of recovering costs in future rates or of a
future reduction in rates.
• We evaluated the Company's disclosures related to the impacts of rate regulation,including the balances recorded and
regulatory developments.
• We read relevant regulatory orders issued by the Commissions for the Company and other publicly available information to assess the
likelihood of recovery in future rates or of a future reduction in rates based on the precedents of the Commissions'treatment of similar costs
under similar circumstances.We evaluated the external information and compared itto management's recorded regulatory asset and liability
balances for completeness.
• We inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impactthe Company's
future rates,evaluating the evidence in relation to management's assertions,as applicable.
• We inquired of management about property,plant,and equipment that may be abandoned.We inspected the capital-projects budget and
construction-work-in-process listings and inquired of managementto identify projects that are designed to replace assets that may be
retired priorto the end of their useful life.We inspected minutes of the Board of Directors and regulatory orders and otherfilings with the
Commissions,evaluating the evidence in relation to management's assertions,as applicable,regarding probability of an abandonment.
• We obtained an analysis from management regarding probability of recovery for regulatory assets or probability of either refund or future
reduction in rates for regulatory liabilities not yet addressed in a regulatory order in orderto assess management's assertion that amounts are
probable of recovery and/or that a future refund or reduction in rates is not probable.
/s/Deloitte&Touche LLP
Portland,Oregon
February 25,2025
We have served as the Company's auditor since 1933.
® AVISTA

CONSOLIDATED STATEMENTS OF INCOME
Avista Corporation
For the years Ended December 31
Dollars in millions,except per share amounts
2024 2023 2022
Operating Revenues:
Utility revenues:
Utility revenues,exclusive of alternative revenue programs $ 1,902 $ 1,746 $ 1,743
Alternative revenue programs 35 5 (34)
Total utility revenues 1,937 1,751 1,709
Non-utility revenues 1 1 1
Total operating revenues 1,938 1,752 1,710
Operating Expenses:
Utility operating expenses:
Resource costs 798 702 736
Other operating expenses 442 414 405
Depreciation and amortization 274 265 253
Taxes other than income taxes 116 110 114
Non-utility operating expenses 2 3 12
Total operating expenses 1,632 1,494 1,520
Income from operations 306 258 190
Interest expense 147 141 118
Interest expense to affiliated trusts 3 3 1
Capitalized interest (5) (4) (4)
Other income—net (22) (19) (63)
Income before income taxes 183 137 138
Income tax expense(benefit) 3 (34) (17)
Net income $ 180 $ 171 $ 155
Weighted-average common shares outstanding(thousands)—basic 78,725 76,396 72,989
Weighted-average common shares outstanding(thousands)—diluted 78,820 76,495 73,093
Earnings per common share:
Basic $ 2.29 $ 2.24 $ 2.13
Diluted $ 2.29 $ 2.24 $ 2.12
The Accompanying Notes are an Integral Part of These Statements.
AVISTA V-1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Avista Corporation
For the Years Ended December31
Dollars in millions
2024 2023 2022
Net income: $ 180 $ 171 $ 155
Other Comprehensive Income:
Change in unfunded benefit obligation for pension and other
postretirement benefit plans—net of taxes of$0,$0 and$2,respectively — 2 9
Total other comprehensive income — 2 9
Comprehensive income $ 180 $ 173 $ 164
The Accompanying Notes are an Integral Part of These Statements.
® AVISTA

CONSOLIDATED BALANCE SHEETS
Avista Corporation
As ofDecember3l
Dollars in millions
2024 2023
Assets:
Current Assets:
Cash and cash equivalents $ 30 $ 35
Accounts and notes receivable—net 205 217
Inventory 193 160
Regulatory assets 137 146
Other current assets 91 104
Total current assets 656 662
Net utility property 5,987 5,700
Goodwill 52 52
Non-current regulatory assets 847 894
Other property and investments—net and other non-current assets 399 394
Total assets $ 7,941 $ 7,702
Liabilities and Equity:
Current Liabilities:
Accounts payable $ 125 $ 143
Current portion of long-term debt — 15
Short-term borrowings 354 349
Regulatory liabilities 108 76
Other current liabilities 184 192
Total current liabilities 771 775
Long-term debt 2,614 2,515
Long-term debt to affiliated trusts 52 52
Pensions and other postretirement benefits 75 90
Deferred income taxes 751 718
Non-current regulatory liabilities 834 857
Other non-current liabilities and deferred credits 253 210
Total liabilities 5,350 5,217
Commitments and Contingencies(See Notes to Consolidated Financial Statements)
Equity:
Common stock,no par value;200,000 shares authorized;80,039 and 78,075 shares issued
and outstanding,respectively(shares in thousands) 1,720 1,644
Retained earnings 871 841
Total equity 2,591 2,485
Total liabilities and equity $ 7,941 $ 7,702
The Accompanying Notes are an Integral Part of These Statements.
AVISTA m

CONSOLIDATED STATEMENTS OF CASH FLOWS
Avista Corporation
For the years Ended December 31
Dollars in millions
2024 2023 2022
Operating Activities:
Net income $ 180 $ 171 $ 155
Non-cash items included in net income:
Depreciation and amortization 274 265 253
Provision for deferred income taxes (5) (37) (18)
Power and natural gas cost amortizations(deferrals)—net 104 7 (78)
Amortization of debt expense 2 3 2
Stock-based compensation expense 9 8 9
Equity-related AFUDC (9) (7) (7)
Pension and other postretirement benefit expense 12 14 32
Other regulatory assets and liabilities (28) (34) (15)
Other non-current assets and liabilities 36 26 (5)
Change in decoupling regulatory deferral (35) (3) 33
Realized and unrealized losses(gains)on assets and investments 5 3 (50)
Other (4) (6) 12
Contributions to defined benefit pension plan (10) (10) (42)
Cash paid on settlement of interest rate swap agreements (17)
Cash received on settlement of interest rate swap agreements 4 8 —
Changes in certain current assets and liabilities:
Accounts and notes receivable 3 37 (56)
Inventory (40) (52) (23)
Collateral posted for derivative instruments 18 129 (141)
Income taxes receivable (3) 2 (1)
Other current assets 16 (26) (7)
Accounts payable (8) (66) 66
Other current liabilities 13 15 22
Net cash provided by operating activities 534 447 124
Investing Activities:
Utility property capital expenditures(excluding equity-related AFUDC) (533) (499) (452)
Issuance of notes receivable — (3) (3)
Equity and property investments (10) (13) (10)
Proceeds from sale of investments — 3 1
Other 4 2 4
Net cash used in investing activities $ (539) $ (510) $ (460)
The Accompanying Notes are an Integral Part ofThese Statements.
m AVISTA

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Avista Corporation
For the years Ended December 31
Dollars in millions
2024 2023 2022
Financing Activities:
Net increase(decrease)in short-term borrowings $ 5 $ (114) $ 179
Proceeds from issuance of long-term debt 84 250 400
Maturity of long-term debt and finance leases (3) (17) (253)
Issuance of common stock—net of issuance costs 68 113 137
Cash dividends paid (150) (141) (129)
Other (4) (6) (7)
Net cash provided by financing activities — 85 327
Net increase(decrease)in cash and cash equivalents (5) 22 (9)
Cash and cash equivalents at beginning of year 35 13 22
Cash and cash equivalents at end of year $ 30 $ 35 $ 13
Supplemental Cash Flow Information:
Cash paid(received)during the year:
Interest $ 141 $ 132 $ 107
Income taxes paid 12 3 2
Income tax refunds (1) (1) —
Non-cash financing and investing activities:
Accounts payable for capital expenditures 24 34 28
The Accompanying Notes are an Integral Part ofThese Statements.
AVISTA m

CONSOLIDATED STATEMENTS OF EQUITY
Avista Corporation
For the Years Ended December31
Dollars in millions,except per share amounts
2024 2023 2022
Common Stock,Shares(in thousands):
Shares outstanding at beginning of year 78,075 74,946 71,498
Shares issued through equity compensation plans 147 118 124
Shares issued through Employee Investment Plan 13 12 14
Shares issued through sales agency agreements 1,804 2,999 3,310
Shares outstanding at end of year 80,039 78,075 74,946
Common Stock,Amount:
Balance at beginning of year $ 1,644 $ 1,525 $ 1,380
Equity compensation expense 8 7 8
Issuance of common stock through equity compensation plans 1 1 1
Issuance of common stock through Employee Investment Plan 1
Issuance of common stock through sales agency agreements—net of issuance costs 68 112 137
Payment of minimum tax withholdings for share-based payment awards (1) (1) (2)
Balance at end of year 1,720 1,644 1,525
Accumulated Other Comprehensive Income(Loss):
Balance at beginning of year — (2) 01)
Other comprehensive income — 2 9
Balance at end of year (2)
Retained Earnings:
Balance at beginning of year 841 812 786
Net income 180 171 155
Dividends on common stock (150) (142) (129)
Balance at end of year 871 841 812
Total equity $ 2,591 $ 2,485 $ 2,335
Dividends declared per common share $ 1.90 $ 1.84 $ 1.76
The Accompanying Notes are an Integral Part of These Statements.
m AVISTA

NOTES TO CONSOLIDATED amounts due to the nature of rounding relative to the change in
FINANCIAL STATEMENTS presentation.In addition,historical percentages and per share amounts
presented may not add to their respective totals or recalculate due
NOTE 1. SUMMARY OF SIGNIFICANT to rounding.
ACCOUNTING POLICIES
Use of Estimates
Nature of Business The preparation of the consolidated financial statements in
Avista Corp.is primarily an electric and natural gas utility with conformitywith GAAP requires managementto make estimates and
certain other business ventures.Avista Utilities is an operating division assumptions that affectthe amounts reported for assets and liabilities
of Avista Corp.,comprising its regulated utility operations in the and the disclosure of contingent assets and liabilities atthe date of
Pacific Northwest.Avista Utilities provides electric distribution and the financial statements and the reported amounts of revenues and
transmission,and natural gas distribution services in parts of eastern expenses during the reporting period.Significant estimates include:
Washington and northern Idaho.Avista Utilities also provides natural • determining the marketvalue of energy commodity derivative
gas distribution service in parts of northeastern and southwestern assets and liabilities,
Oregon.Avista Utilities has electric generating facilities in Washington, • pension and other postretirement benefit plan obligations,
Idaho,Oregon and Montana.Avista Utilities also supplies electricity to a • contingent liabilities,
small number of customers in Montana. • obligations under the CCA,
AERC is a wholly owned subsidiary of Avista Corp.The primary • goodwill impairment testing,
subsidiary of AERC is AEL&P,which comprises Avista Corp.'s regulated • fair value of equity investments,
utility operations in Alaska. • recoverability of regulatory assets,and
Avista Capital,a wholly owned non-regulated subsidiary of • unbilled revenues.
Avista Corp.,is the parent company of the subsidiary companies in the
non-utility businesses,except AJT Mining Properties,Inc.,which is a Changes in these estimates and assumptions are considered
subsidiary of AERC.See Note 24for business segment information. reasonably possible and may have a material effect on the consolidated
financial statements and thus actual results could differ from the
Basis of Reporting amounts reported and disclosed herein.
The consolidated financial statements include the assets,
liabilities,revenues and expenses of the Company and its subsidiaries Regulation
and other majority owned subsidiaries and variable interest The Company is subjectto state regulation in Washington,
entities for which the Company or its subsidiaries are the primary Idaho,Montana,Oregon and Alaska.The Company is subjectto
beneficiaries.Intercompany balances were eliminated in consolidation. federal regulation primarily bythe FERC,as well as various other
The accompanying consolidated financial statements include the federal agencies with regulatory oversight of particular aspects of
Company's proportionate share of utility plant and related operations its operations.
associated with its interests in jointly owned plants(see Note 9).
During 2024,management elected to change the presentation Depreciation
of the Company's financial statements and accompanying footnote For utility operations,depreciation expense is estimated by a
disclosures from thousands to millions.The change in presentation had method of depreciation accounting utilizing composite rates for utility
no material impact on previously reported financial information,but plant.Such rates are designed to provide for retirements of properties
certain amounts reported for prior periods may differ by insignificant atthe expiration of their service lives.
For utility operations,the ratio of depreciation provisions to average depreciable property was as follows for the years ended December 31:
2024 2023 2022
Avista Utilities 3.45% 3.52% 3.50%
Alaska Electric Light and Power Company 2.80% 2 78% 2 78%
The average service lives for the following broad categories of utility plant in service are(in years):
Alaska Electric Light
Avista Utilities and Power Company
Electric thermal/other production 27 41
Hydroelectric production 81 42
Electric transmission 44 43
Electric distribution 42 39
Natural gas distribution property 44 N/A
Other shorter-lived general plant 8 18

Allowance for Funds Used During Construction service.Cash inflow related to AFUDC does not occur until the related
AFUDC represents the cost of bath the debt and equityfunds utility plant is placed in service and included in rate base.
used to finance utility plant additions during the construction period. The WUTC and IPUC have authorized Avista Utilities to calculate
As prescribed by regulatory authorities,AFUDC is capitalized as a part AFUDC using its allowed rate of return on rate base.To the extent
of the cost of utility plant.The debt component of AFUDC is credited amounts calculated using this rate exceed the AFUDC amounts
againsttotal interest expense in the Consolidated Statements of Income calculated using the FERC formula,Avista Utilities capitalizes the
in the line item"capitalized interest."The equity component of AFUDC excess as a regulatory asset.The regulatory asset associated with plant
is included in the Consolidated Statements of Income in the line item in service is amortized overthe average useful life of Avista Utilities'
"other income-net."The Company is permitted,under established utility plant which is approximately 30 years.The regulatory asset
regulatory rate practices,to recover the capitalized AFUDC,and a associated with construction work in progress is not amortized until the
reasonable return thereon,through its inclusion in rate base and the plant is placed in service.
provision for depreciation after the related utility plant is placed in
The effective AFUDC rate was the following for the years ended December 31:
2024 2023 2022
Avista Utilities 7.03% 7.03% 7.12%
Alaska Electric Light and Power Company 8.47% 8.61% 8.08%
Income Taxes expense in the period the credit is generated,which corresponds to the
Deferred income tax assets representfuture income tax period the energy production occurs.The Company applies the deferral
deductions the Company expects to utilize in future tax returns to method of accounting for investmenttax credits(ITCs).Under this
reduce taxable income.Deferred income tax liabilities represent method,ITCs are amortized as a reduction to income tax expense over
future taxable income the Company expects to recognize in future the estimated useful lives of the underlying property that gave rise to
tax returns.Deferred tax assets and liabilities arise when there are the credit.
temporary differences resulting from differing treatment of items for The Company's largest deferred income tax item is the difference
tax and accounting purposes.A deferred income tax asset or liability is between the book and tax basis of utility plant.This item results
determined based on the enacted tax rates that will be in effect when from the temporary difference on depreciation expense.In early tax
the temporary differences between the financial statement carrying years,this item is recorded as a deferred income tax Iiabilitythatwill
amounts and tax basis of existing assets and liabilities are expected eventually reverse and become subject to income tax in later tax years.
to be reported in the Company's consolidated income tax returns. The Company did not incur penalties on income tax positions in
The effect on deferred income taxes from a change in tax rates is 2024,2023 or 2022.The Company would recognize interest accrued
recognized in income in the period that includes the enactment date related to income tax positions as interest expense or interest income
unless a regulatory order specifies deferral of the effect of the change and penalties incurred as other operating expense.
in tax rates over a longer period of time.The Company establishes a
valuation allowance when it is more likely than not that all,or a portion, Stock-Based Compensation
of a deferred tax asset will not be realized.Deferred income tax assets The Company issues three types of stock-based
and liabilities and regulatory assets and liabilities are established for compensation awards—restricted shares,market-based awards
income tax benefits flowed through to customers. and performance-based awards.Compensation cost relating to
The Company has elected to accountfor transferable tax credits share-based payment transactions is recognized in the Company's
as a component of the income tax provision.The Company recognizes financial statements based on the fair value of the equity
the benefit of production tax credits as a reduction of income tax instruments issued and recorded over the requisite service period.
The Company recorded stock-based compensation expense(included in other operating expenses)and income tax benefits in the Consolidated
Statements of Income of the following amounts for the years ended December 31(dollars in millions):
2024 2023 2022
Stock-based compensation expense $ 8 $ 7 $ 8
Income tax benefits 2 2 2
Restricted share awards vest in equal thirds each year over are payable in cash or Avista Corp.common stock atthe end of the
3 years and are payable in Avista Corp.common stock at the end three-year period.The method of settlement is atthe discretion of
of each year if the service condition is met.Restricted stock is the Company and historicallythe Company has settled these awards
valued atthe close of market of the Company's common stock on through issuance of Avista Corp.common stock and intends to continue
the grant date. this practice.Both types of awards entitle the recipients to dividend
Total Shareholder Return(TSR)awards are market-based awards equivalent rights,are subjectto forfeiture under certain circumstances,
and Cumulative Earnings Per Share(CEPS)awards are performance and are subject to meeting specific market or performance conditions.
awards.Both types of awards vest after a period of 3 years and Based on the level of attainment of the market or performance
M AVISTA

conditions,the amount of cash paid or common stock issued will range are still considered vested even though the market metric was not met.
from 0 to 200 percent of the initial awards granted.Dividend equivalent For CEPS awards,at the end of the three-year service period,if the
rights are accumulated and paid out only on shares that have vested and internal performance metric of cumulative earnings per share is not met,
have met the market and performance conditions. all compensation cost for these awards is reversed as these awards are
The Company accounts for both the TSR awards and CEPS awards not considered vested.
as equity awards and compensation costfor these awards is recognized The fair value of each TSR award is estimated on the date of grant
overthe requisite service period,provided the requisite service period using a statistical model incorporating the probability of meeting the
is rendered.For TSR awards,if the market condition is not met atthe markettargets based on historical returns relative to a peer group.CEPS
end of the three-year service period,there will be no change in the awards are valued at the close of market of the Company's common
cumulative amount of compensation cost recognized,since the awards stock on the grant date.
The following table summarizes the number of grants,vested and unvested shares,earned shares(based on market metrics),and other pertinent
information related to the Company's stock compensation awards for the years ended December 31:
2024 2023 2022
Restricted Shares
Shares granted during the year 82,433 76,806 115,746
Shares vested during the year 75,107 75,007 44,829
Unvested shares at end of year 158,464 152,140 157,860
Unrecognized compensation expense at end of year(in millions) $ 3 $ 3 $ 4
TSR Awards
TSR shares granted during the year 45,739 34,912 69,814
TSR shares vested during the year 64,640 61,456 43,730
TSR shares earned based on market metrics 35,552 44,863 48,890
Unvested TSR shares at end of year 77,530 96,915 130,567
Unrecognized compensation expense at end of year(in millions) $ 2 $ 2 $ 4
CEPS Awards
CEPS shares granted during the year 137,161 104,685 69,814
CEPS shares vested during the year 64,640 61,456 43,730
CEPS shares earned based on performance metrics 29,088 33,801 -
Unvested CEPS shares at end of year 232,486 161,235 130,567
Unrecognized compensation expense at end of year(in millions) $ 3 $ 2 $ 2
Outstanding restricted,TSR and CEPS share awards include a dividend recognized a liability of$3 million and$2 million,respectively,related
component paid in cash.A liability for the dividends payable related to to the dividend equivalents payable on the outstanding and unvested
these awards is accrued as dividends are announced throughout the share grants.
life of the award.As of December 31,2024 and 2023,the Company had
Other Income-Net
Other income-net consisted of the following items for the years ended December 31(dollars in millions):
2024 2023 2022
Interest income $ 5 $ 6 $ 2
Interest on regulatory deferrals 9 9 2
Equity-related AFUDC 9 7 7
Non-service portion of pension and other postretirement benefit expenses 2 - 3
Earnings(losses)on investments (7) (3► 48
Other income 4 - 1
Total $ 22 $ 19 $ 63
AVISTA M

Earnings per Common Share Cash and Cash Equivalents
Basic earnings per common share is computed by dividing net For the purposes of the Consolidated Statements of Cash Flows,
income by the weighted-average number of common shares outstanding the Company considers all temporary investments with a maturity of
for the period.Diluted earnings per common share is calculated by three months or less when purchased to be cash equivalents.
dividing net income by diluted weighted-average common shares
outstanding during the period,including common stock equivalent Accounts Receivable and Allowance for
shares outstanding using the treasury stock method,unless such shares Doubtful Accounts
are anti-dilutive.Common stock equivalent shares include shares The Company maintains an allowance for doubtful accounts to
issuable under contingent stock awards.See Note 21 for earnings per provide for estimated and potential losses on accounts receivable.
common share calculations. The Company determines the allowance for utility and other customer
accounts receivable based on historical write-offs as compared to
accounts receivable and operating revenues.Additionally,the Company
establishes specific allowances for certain individual accounts.
The following table presents the activity in the allowance for doubtful accounts during the years ended December 31(dollars in millions):
2024 2023 2022
Allowance as of the beginning of the year 5 $ 6 $ 10
Additions expensed during the year 7 7 —
Net deductions (7) (8) (4)
Allowance as of the end of the year $ 5 $ 5 $ 6
The Company has received grants from various government its present value each period and the related capitalized costs are
agencies to assist customers with their energy bills.The Company depreciated over the useful life of the related asset.In addition,if
received these grant funds and applied them to customer accounts, there are changes in the estimated timing or estimated costs of the
reducing accounts receivable balances.These grants totaled$10 million AROs,adjustments are recorded during the period new information
in 2024,$2 million in 2023 and$6 million in 2022. becomes available as an increase or decrease to the liability,with the
offset recorded to the related long-lived asset.Upon retirement of the
Utility Plant in Service asset,the Company either settles the ARO for its recorded amount
The cost of additions to utility plant in service,including an or recognizes a regulatory asset or liability forthe difference,which
allowance for funds used during construction and replacements of units will be surcharged/refunded to customers through the ratemaking
of property and improvements,is capitalized.The cost of depreciable process.The Company records regulatory assets and liabilities for the
units of property retired plus the cost of removal less salvage is charged difference between asset retirement costs currently recovered in rates
to accumulated depreciation. and AROs recorded since asset retirement costs are recovered through
rates charged to customers(see Note 11 for further discussion of the
Asset Retirement Obligations Company's AROs).
The Company records the fair value of a liability for an ARO in the The Company recovers certain asset retirement costs through
period in which it is incurred.When the liability is initially recorded, rates charged to customers as a portion of its depreciation expense for
the associated costs of the ARO are capitalized as part of the carrying which the Company has not recorded asset retirement obligations.
amount of the related long-lived asset.The liability is accreted to
The Company records the amount of estimated retirement costs collected from customers(that do not represent legal or contractual obligations)
and includes them as a non-current regulatory liability on the Consolidated Balance Sheets in the following amounts as of December 31
(dollars in millions):
2024 2023
Regulatory liability for utility plant retirement costs $ 448 $ 417
Goodwill between November 30,2024 and December 31,2024thatwould more
Goodwill arising from acquisitions represents the future economic likely than not reduce the fair values of the reporting units belowtheir
benefit arising from other assets acquired in a business combination carrying amounts.As of December 31,2024 and December 31,2023,the
not individually identified and separately recognized.In 2024,the carrying amount of goodwill was$52 million.There are no accumulated
Company evaluated goodwill for impairment using a qualitative analysis impairment losses recognized to date.
(Step 0).The Company completed its annual evaluation of goodwill for
potential impairment as of November 30,2024 and determined goodwill
was not impaired atthat time.No events or circumstances occurred
m AVISTA

Derivative Assets and Liabilities Regulatory Deferred Charges and Credits
Derivatives are recorded as either assets or liabilities on the The Company prepares its consolidated financial statements in
Consolidated Balance Sheets measured at estimated fair value. accordance with regulatory accounting practices because:
The WUTC and the IPUC issued accounting orders authorizing • rates for regulated services are established by or subjectto
Avista Corp.to offset energy commodity derivative assets or liabilities approval by independent third-party regulators,
with a regulatory asset or liability.This accounting treatment is intended • the regulated rates are designed to recover the cost of providing
to defer the recognition of mark-to-market gains and losses on energy the regulated services,and
commodity transactions until the period of delivery.Realized benefits • in view of demand for the regulated services and the level of
and costs result in adjustments to retail rates through PGAs,the ERM competition,it is reasonable to assume that rates can be charged
in Washington,the PCA mechanism in Idaho,and periodic general to and collected from customers at levels that will recover costs.
rate cases.The resulting regulatory assets associated with energy
commodity derivative instruments are probable of recovery through Regulatory accounting practices require certain costs and/or
future rates. obligations(such as incurred power and natural gas costs not
Substantially all forward contracts to purchase or sell power and currently reflected in rates,but expected to be recovered or refunded
natural gas are recorded as derivative assets or liabilities at estimated in the future),to be reflected as deferred charges or credits on the
fairvalue with an offsetting regulatory asset or liability.Contracts not Consolidated Balance Sheets.These costs and/or obligations are
considered derivatives are accounted for on the accrual basis until they not reflected in the Consolidated Statements of Income until the
are settled or realized unless there is a decline in the fair value of the period during which matching revenues are recognized.The Company
contract determined to be other-than-temporary. also has decoupling revenue deferrals.See Note 4for discussion on
For interest rate swap derivatives,Avista Corp.records all decoupling revenue deferrals.
mark-to-market gains and losses in each accounting period as assets If at some point in the future the Company determines it no longer
and liabilities,as well as offsetting regulatory assets and liabilities, meets the criteria for continued application of regulatory accounting
such thatthere is no income statement impact.The interest rate swap practices for all or a portion of its regulated operations,the Company
derivatives are risk managementtools similarto energy commodity could be:
derivatives.Upon settlement of interest rate swap derivatives,the • required to write off its regulatory assets,and
regulatory asset or liability is amortized as a component of interest • precluded from the future deferral of costs or decoupled revenues
expense over the term of the associated debt.The Company records not recovered through rates atthe time such amounts are
an offset of interest rate swap derivative assets and liabilities with incurred,even if the Company expected to recover these amounts
regulatory assets and liabilities,based on the prior practice of the from customers in the future.
commissions to provide recoverythrough the ratemaking process.
The Company has multiple master netting agreements with a See Note 23 for further details of regulatory assets and liabilities.
variety of entities allowing for cross-commodity netting of derivative
agreements with the same counterparty(i.e.,power derivatives can be Unamortized Debt Expense
netted with natural gas derivatives).In addition,some master netting Unamortized debt expense includes debt issuance costs that are
agreements allow for the netting of commodity derivatives and interest amortized over the life of the related debt.These costs are recorded as
rate swap derivatives for the same counterparty.The Company does not an offsetto Long-Term Debt on the Consolidated Balance Sheets.
have agreements which allow for cross-affiliate netting among multiple
affiliated legal entities.The Company nets all derivative instruments Unamortized Debt Repurchase Costs
when allowed bythe agreementfor presentation in the Consolidated Premiums paid or discounts received to repurchase debt are
Balance Sheets. amortized overthe remaining life of the original debt repurchased or,
if new debt is issued in connection with the repurchase,these costs
Fair Value Measurements are amortized overthe life of the new debt.These costs are recovered
Fair value represents the price that would be received when through retail rates as a component of interest expense.
selling an asset or paid to transfer a liability(an exit price)in an
orderly transaction between market participants atthe measurement Appropriated Retained Earnings
date.Energy commodity derivative assets and liabilities,deferred In accordance with the hydroelectric licensing requirements of
compensation assets,some equity investments,as well as derivatives section 10(d)of the Federal Power Act(FPA),the Company maintains
related to interest rate swaps and foreign currency exchange contracts, an appropriated retained earnings account for earnings in excess of the
are reported at estimated fair value on the Consolidated Balance specified rate of return on the Company's investment in the licenses
Sheets.See Note 18 forthe Company's fair value disclosures. for its various hydroelectric projects.Per section 10(d)of the FPA,
the Company must maintain these excess earnings in an appropriated
retained earnings account until the termination of the licensing
agreements or apply them to reduce the net investment in the licenses
of the hydroelectric projects at the discretion of the FERC.The Company
calculates the earnings in excess of the specified rate of return on an
annual basis,usually during the second quarter.
AVISTA m

The appropriated retained earnings amounts included in retained loss contingency if it is probable that a liability has been incurred and
earnings were as follows as of December 31(dollars in millions►: the amount of the loss or impairment can be reasonably estimated.
The Company also discloses loss contingencies that do not meet these
2024 2023 conditions for accrual,if there is a reasonable possibilitythat a material
Appropriated retained earnings $ 62 $ 59 loss may be incurred.As of December 31,2024,the Company has not
recorded significant amounts related to unresolved contingencies.
Contingencies See Note 22forfurther discussion of the Company's commitments
The Company has unresolved regulatory,legal and tax issues and contingencies.
which have inherently uncertain outcomes.The Company accrues a
NOTE 2. NEW ACCOUNTING STANDARDS
ASU 2022-03"Fair Value Measurement of Equity Securities ASU 2023-07"Segment Reporting(Topic 280)—Improvements to
Subject to Contractual Sale Restrictions" Reportable Segment Disclosures'
In June 2022,the FASB issued ASU 2022-03,Fair Value In November 2023,the FASB issued ASU 2023-07,requiring
Measurement(Topic 820):Fair Value Measurement of Equity Securities additional disclosures around reportable segment information.
Subject to Contractual Sale Restrictions.The purpose of this guidance The additional required disclosures include significant segment
is to clarify that a contractual restriction on the ability to sell an equity expenses,an amount for other segment activity not included in the
security is not considered part of the unit of account of the equity disaggregated segment amounts and a description of the activity,
security,and therefore should not be considered when measuring the and the title and position of the chief operating decision maker and an
equity security's fair value.Additionally,an entity cannot separately explanation of how they use the reported measures of segment profit
recognize and measure a contractual sale restriction.This guidance or loss in assessing segment performance and allocating resources.
also adds specific disclosures related to equity securities subject The ASU became effective for annual periods after December 15,
to contractual sale restrictions,including(i)the fair value of equity 2023 and interim periods after December 15,2024.The Company has
securities subjectto contractual sale restrictions reflected in the incorporated the newly required disclosures with a retrospective
balance sheet,(ii)the nature and remaining duration of the restrictions adoption,in Note 24.
and(iii)the circumstances that could cause a lapse in the restrictions.
The Company adopted the amendments effective January 1,2024,with ASU 2023-09"Income Taxes(Topic 740)—Improvements to
no material impacts to the Company's financial statements resulting Income Tax Disclosures"
upon adoption. In December 2023,the FASB issued ASU 2023-09,requiring
additional income tax disclosures.The additional disclosures include
ASU 2023-06"Disclosure Improvements—Codification prescribed items presented in the income tax rate reconciliation,and
Amendments in Response to the SEC"s Disclosure Update and further disaggregation of income taxes paid between federal,state
Simplification Initiative" and foreign taxes.The ASU is effective for fiscal years beginning after
In October 2023,the FASB issued ASU 2023-06,which December 15,2024 and early adoption is permitted.The Company
incorporates a variety of SEC required disclosures into the FASB expects the implementation of the ASU to result in expanded
Accounting Standards Codification(ASC).For entities subject income tax disclosures.
to SEC's existing disclosure requirements,the effective date for
each amendment will be the date on which the SEC removes the ASU 2024-03"Disaggregation of Income Statement Expenses"
related disclosure from Regulation S-X or Regulation S-K,with In November 2024,the FASB issued ASU 2024-03,requiring
early adoption permitted.If the SEC has not removed the applicable additional footnote disclosures disaggregating certain expenses
requirementfrom Regulation S-X or Regulation S-K by June 30,2027, included on the income statement.The ASU is effective for annual
the disclosure requirements will be removed from the Codification. reporting periods beginning after December 15,2026 and interim
The requirements of the ASU will not have a material impact on the reporting periods beginning after December 15,2027,and early adoption
Company's financial statements. is permitted.The Company is in the process of evaluating the impact
of the ASU;however,it has determined it will not early adopt as of
December 31,2024.
m AVISTA

NOTE 3. BALANCE SHEET COMPONENTS
Inventory Other Non-Current Liabilities and Deferred
Inventories of materials and supplies,emission allowances,stored Credits
natural gas and fuel stock are recorded at average cost and consisted Other non-current liabilities and deferred credits consisted of the
of the following as of December 31(dollars in millions): following as of December 31(dollars in millions):
2024 2023 2024 2023
Materials and supplies $ 99 $ 82 Operating lease liabilities $ 62 $ 64
Emission allowances 79 56 Finance lease liabilities 35 39
Stored natural gas 10 16 Deferred investmenttax credits 28 28
Fuel stock 5 6 Climate Commitment Act obligations 77 26
Total 193 $ 160 Asset retirement obligations 18 18
Derivative liabilities 12 18
Other Current Assets Other 21 17
Other current assets consisted of the following as of December 31 Total $ 253 $ 210
(dollars in millions):
NOTE 4. REVENUE
2024 2023
Prepayments $ 37 $ 53 The core principle of the revenue recognition model is that
Income taxes receivable 32 29 an entity should identify the various performance obligations in a
Derivative assets—net of collateral 11 12 contract,allocate the transaction price among the performance
Other 11 10 obligations and recognize revenue when(or as)the entity satisfies
Total $ 91 $ 104 each performance obligation.
Other Property and Investments—Net and Utility Revenues
Other Non-Current Assets Revenue from Contracts with Customers
Other property and investments—net and other non-current assets General
consisted of the following as of December 31(dollars in millions): The majority of Avista Corp.'s revenue is from rate-regulated
sales of electricity and natural gasto retail customers,which has
2024 2023 two performance obligations,(1)having service available for a
Equity investments $ 157 $ 153 specified period(typically a month at a time)and(2)the delivery of
Operating lease ROU assets 66 68 energyto customers.The total energy price generally has a fixed
Finance lease ROU assets 33 36 component(basic charge)related to having service available and a
Non-utility property 33 34 usage-based component,related to the delivery and consumption of
Notes receivable 16 15 energy.The commodity is sold and/or delivered to and consumed by
Long-term prepaid license fees 18 19 the customer simultaneously,and the provisions of the relevant utility
Pension assets 35 33 commission authorization determine the charges the Company may bill
Investment in affiliated trust 12 12 the customer.Since all revenue recognition criteria are met upon the
Deferred compensation assets 9 8 delivery of energy to customers,revenue is recognized immediately.
Other 20 16 In addition,the sale of electricity and natural gas is governed by
Total S 399 $ 394 the various state utility commissions,which set rates,charges,terms
and conditions of service,and prices.Collectively,these rates,charges,
Other Current Liabilities terms and conditions are included in a"tariff,"which governs all
Other current liabilities consisted of the following as of December 31 aspects of the provision of regulated services.Tariffs are only permitted
(dollars in millions): to be changed through a rate-setting process involving an independent,
third-party regulator empowered by statute to establish rates that bind
2024 2023 customers.Thus,all regulated sales by the Company are conducted
Accrued taxes other than income taxes $ 34 $ 32 subject to the regulator-approved tariff.
Employee paid time off accruals 32 32
Accrued interest 24 24
Pensions and other postretirement benefits 15 14
Derivative liabilities 14 17
Climate Commitment Act obligations — 19
Other 65 54
Total $ 184 $ 192
AVISTA m

Tariff sales involve the current provision of commodity service alternative revenue programs separately from revenues arising from
(electricity and/or natural gas)to customers for a price that generally contracts with customers on the Consolidated Statements of Income.
has a basic charge and a usage-based component.Tariff rates also The Company's decoupling mechanisms(also known as a FCA in
include certain pass-through costs to customers such as natural Idaho)qualify as alternative revenue programs.Decoupling revenue
gas costs,retail revenue credits and other miscellaneous regulatory deferrals are recognized in the Consolidated Statements of Income
items that do not impact net income,but can cause total revenue to during the period they occur(i.e.,during the period of revenue shortfall
fluctuate significantly up or down compared to previous periods. or excess due to fluctuations in customer usage),subjectto certain
The commodity is sold and/or delivered to and consumed by the limitations,and a regulatory asset or liability is established which
customer simultaneously,and the provisions of the relevanttariff will be surcharged or rebated to customers in future periods.GAAP
determine the charges the Company may bill the customer,payment requires that for an alternative revenue program,like decoupling,the
due date,and other pertinent rights and obligations of both parties. revenue must be expected to be collected from customers within 24
Generally,tariff sales do not involve a written contract.Since all months of the deferral to qualify for recognition in the Consolidated
revenue recognition criteria are met upon the delivery of energy to Statements of Income.Amounts included in the Company's decoupling
customers,revenue is recognized atthat time. program that are not expected to be collected from customers within
Revenues from contracts with customers are presented in the 24 months are not recorded in the financial statements until the
Consolidated Statements of Income in the line item"Utility revenues, period in which revenue recognition criteria are met.The amounts
exclusive of alternative revenue programs." expected to be collected from customers within 24 months represents
an estimate made by the Company on an ongoing basis due to it being
Unbilled Revenue from Contracts with Customers based on the volumes of electric and natural gas sold to customers on a
The determination of the volume of energy sales to individual go-forward basis.
customers is based on the reading of their meters,which occurs on The Company records alternative program revenues underthe
a systematic basis throughoutthe month(once per month for each gross method,which is to amortize the decoupling regulatory asset/
individual customer).Atthe end of each calendar month,the amount of liability to the alternative revenue program line item on the Consolidated
energy delivered to customers since the date of the last meter reading Statements of Income as it is collected from or refunded to customers.
is estimated and the corresponding unbilled revenue is estimated and The cash passing between the Company and the customers is presented
recorded.The Company's estimate of unbilled revenue is based on: in revenue from contracts with customers since it is a portion of the
• the number of customers, overall tariff paid by customers.This method results in a gross-up
• tariff rates, to both revenue from contracts with customers and revenue from
• meter reading dates, alternative revenue programs,but has a net zero impact on total
• actual native load for electricity, revenue.Depending on whetherthe previous deferral balance being
• actual throughputfor natural gas,and amortized was a regulatory asset or regulatory liability,and depending
• electric line losses and natural gas system losses. on the size and direction of the current year deferral of surcharges
and/or rebates to customers,it could result in negative alternative
Any difference between actual and estimated revenue is revenue program revenue during the year.
recorded in the following month when the meter reading and customer
billing occurs. Derivative Revenue
Most wholesale electric and natural gas transactions(including
Accounts receivable includes unbilled energy revenues of the both physical and financial transactions),and the sale of fuel are
following amounts as of December31(dollars in millions): considered derivatives,which are disclosed separatelyfrom revenue
from contracts with customers.Revenue is recognized forthese
2024 2023 items upon the settlement/expiration of the derivative contract.
Unbilled accounts receivable $ 75 $ 79 Derivative revenue includes transactions entered into and settled
within the same month.
Non-Derivative Wholesale Contracts
The Company has certain wholesale contracts that are not Other Utility Revenue
accounted for as derivatives and are considered revenue from contracts Other utility revenue includes rent,sales of materials,late fees
with customers.Revenue is recognized as energy is delivered to the and other charges that do not represent contracts with customers.
customer orthe service is available for a specified period of time, This revenue is excluded from revenue from contracts with customers,
consistent with the discussion of rate regulated sales above. as this revenue does not represent items where a customer is a party
that has contracted with the Company to obtain goods or services
Alternative Revenue Programs(Decoupling) that are an output of the Company's ordinary activities in exchange for
Alternative revenue programs are contracts between an entity consideration.As such,these revenues are presented separatelyfrom
and a regulator of utilities,not a contract between an entity and a revenue from contracts with customers.
customer.GAAP requires the presentation of revenue arising from
m AVISTA

Other Considerations for Utility Revenues Significant Judgments and Unsatisfied
Gross Versus Net Presentation Performance Obligations
Revenues and resource costs from Avista Utilities'settled energy The only significant judgments involving revenue recognition are
contracts"booked out"(not physically delivered)are reported on a net estimates surrounding unbilled revenue and receivables from contracts
basis as part of derivative revenues. with customers and estimates surrounding the amount of decoupling
Utility-related taxes collected from customers(primarily state revenues that will be collected from customers within 24 months
excise taxes and city utilitytaxes)are imposed on Avista Utilities as (discussed above).
opposed to being imposed on customers;therefore,Avista Utilities is The Company has certain capacity arrangements,where the
the taxpayer and records these transactions on a gross basis in revenue Company has a contractual obligation to provide either electric or
from contracts with customers and operating expense(taxes other natural gas capacity to its customers for a fixed fee.Most of these
than income taxes).The utility-related taxes collected from customers arrangements are paid for in arrears by the customers and do not result
at AEL&P are imposed on the customers ratherthan AEL&P;therefore, in deferred revenue and only result in receivables from the customers.
the customers are the taxpayers and AEL&P is acting as their agent. The Company has one capacity agreement where the customer
As such,these transactions at AEL&P are presented on a net basis makes payments throughout the year.As of December 31,2024,the
within revenue from contracts with customers. Company estimates it had unsatisfied capacity performance obligations
of$2 million,which will be recognized as revenue in future periods
Utility-related taxes included in revenue from contracts with as the capacity is provided to the customers.These performance
customers were as follows for the years ended December 31 obligations are not reflected in the financial statements,as the
(dollars in millions): Company has not received payment for these services.
2024 2023 2022
Utility-related taxes $ 81 $ 75 $ 70
Disaggregation of Total Operating Revenue
The following table disaggregates total operating revenue by segment and source for the years ended December 31(dollars in millions):
2024 2023 2022
AVISTA UTILITIES
Revenue from contracts with customers $ 1,570 $ 1,486 $ 1,400
Derivative revenues 249 199 286
Alternative revenue programs 35 5 (34)
Other utility revenues 33 13 11
Total Avista Utilities 1,887 1,703 1,663
AEL&P
Revenue from contracts with customers 49 47 46
Other utility revenues 1 1 —
Total AEL&P 50 48 46
Other
Other revenues 1 1 1
Total operating revenues $ 1,938 $ 1,752 $ 1,710
AVISTA m

Utility Revenue from Contracts with Customers by Type and Service
The following table disaggregates revenue from contracts with customers associated with the Company's electric operations for the years ended
December 31(dollars in millions):
2024 2023 2022
Avista Total Avista Total Avista Total
Utilities AEL&P Utility Utilities AEL&P Utility Utilities AEL&P Utility
ELECTRIC OPERATIONS
Revenue from contracts
with customers
Residential $ 473 $ 22 $ 495 $ 425 $ 20 $ 445 $ 415 $ 20 $ 435
Commercial and governmental 369 27 396 344 27 371 339 26 365
Industrial 131 — 131 110 — 110 108 — 108
Public street and
highway lighting 9 — 9 8 — 8 7 — 7
Total retail revenue 982 49 1,031 887 47 934 869 46 915
Transmission 38 — 38 33 — 33 32 — 32
Other revenue from
contracts with customers 40 — 40 45 — 45 50 — 50
Total revenue from
contracts with
customers $ 1,060 $ 49 $ 1,109 $ 965 $ 47 $ 1,012 $ 951 $ 46 $ 997
The following table disaggregates revenue from contracts with customers associated with the Company's natural gas operations for the years
ended December 31(dollars in millions):
2024 2023 2022
Avista Avista Avista
Utilities Utilities Utilities
NATURAL GAS OPERATIONS
Revenue from contracts with customers
Residential $ 317 $ 326 $ 284
Commercial 163 164 140
Industrial and interruptible 13 17 10
Total retail revenue 493 507 434
Transportation 11 8 9
Other revenue from contracts with customers 6 6 6
Total revenue from contracts with customers $ 510 $ 521 $ 449
m AVISTA

NOTE 5. LEASES
The core principle of lease accounting is that an entity should Avista Corp.of amounts previously paid will be included in the future
recognize the ROU assets and liabilities from leases on the balance ratemaking process.
sheet and depreciate or amortize the asset and liability over the term In addition to the lease with the State of Montana,the Company
of the lease,as well as provide disclosure to enable users of the has other operating leases for land associated with its utility operations,
consolidated financial statements to assess the amount,timing,and as well as communication sites which support network and radio
uncertainty of cash flows from leases. communications within its service territory.The Company's leases have
remaining terms of 1 to 69 years.Most of the Company's leases include
Significant Judgments and Assumptions options to extend the lease term for periods of 5to 50 years.Options are
The Company determines if an arrangement is a lease,as well as exercised atthe Company's discretion.
its classification,at its inception. Certain of the Company's lease agreements include rental
ROU assets representthe Company's rightto use an underlying payments which are periodically adjusted over the term of the
asset for the lease term,and lease liabilities representthe Company's agreement based on the consumer price index.The Company's lease
obligation to make lease payments.Operating and finance lease ROU agreements do not include material residual value guarantees or
assets and lease liabilities are recognized atthe commencement date material restrictive covenants.
of the agreement based on the present value of lease payments over In March 2023,the Company entered into an agreement with
the lease term.As most of the Company's leases do not provide an Rathdrum Power,LLC amending and restating a PPA for the output of
implicit rate,the Company uses its incremental borrowing rate based the Lancaster Plant.The restated PPA meets the accounting definition
on the information available at the commencement date to determine of a lease,and all payments are variable in nature,based on capacity,
the present value of lease payments.The implicit rate is used when it is usage,or performance of the plant.Therefore,there is no lease
readily determinable.The operating and finance lease ROU assets also obligation or corresponding ROU asset recorded by the Company related
includes lease payments made and exclude lease incentives,if any,that to this agreement.The variable lease costs related to this agreement are
accrue to the benefit of the lessee. included in resource costs on the Consolidated Statements of Income.
Lease terms may include options to extend or terminate the lease Avista Corp.does not record leases with a term of 12 months or
when it is reasonably certain the Company will exercise that option. less in the Consolidated Balance Sheets.Total short-term lease costs
Lease expense is recognized on a straight-line basis over the lease term. for 2024 are immaterial.
The difference between lease expense and cash paid for leased assets
is recognized as a regulatory asset or regulatory liability. Finance Lease
AEL&P has a PPA which is a finance lease for accounting
Description of Leases purposes related to the Snettisham Hydroelectric Project,which
Operating Leases expires in 2034.For ratemaking purposes,this lease is an operating
The Company's most significant operating lease is with the State lease with a constant level of annual rental expense(straight line rent
of Montana associated with submerged land around the Company's expense).Because of this regulatory treatment,differences between
hydroelectric facilities in the Clark Fork River basin,which expires in the operating lease expense for ratemaking purposes and the expenses
2046.The terms of this lease are subject to adjustment—depending recognized under GAAP(interest expense and amortization of the
on the outcome of ongoing litigation between the State of Montana finance lease ROU asset)are recorded as a regulatory asset and
and NorthWestern.In addition,the State of Montana and Avista Corp. amortized during the later years of the lease when the finance lease
were engaged in litigation regarding lease terms,including how much expense is less than the operating lease expense included in base
money,if any,the State of Montana should return to Avista Corp.; rates.The amortization of the ROU asset is included in depreciation
however,that litigation was dismissed as premature pending the and amortization and the interest associated with the lease liability is
outcome of the ongoing litigation between the State of Montana and included in interest expense on the Consolidated Statements of Income.
NorthWestern.Any reduction in future lease payments or the return to
Operating and Finance Lease Balances in the Financial Statements
The components of lease expense were as follows for the year ended December 31(dollars in millions):
2024 2023 2022
Operating lease cost:
Fixed lease cost(Other operating expenses) $ 5 $ 5 $ 5
Variable lease cost(Other operating expenses and Resource costs) 31 25 2
Total operating lease cost $ 36 $ 30 $ 7
Finance lease cost:
Amortization of ROU asset(Depreciation and amortization) $ 4 $ 4 $ 4
Interest on lease liabilities(Interest expense) 2 2 2
Total finance lease cost $ 6 $ 6 $ 6
AVISTA m

Supplemental cash flow information related to leases was as follows for the year ended December 31(dollars in millions):
2024 2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows:
Operating lease payments $ 5 $ 5 $ 5
Interest on finance lease 2 2 2
Total operating cash outflows $ 7 $ 7 $ 7
Finance cash outflows:
Principal payments on finance lease $ 3 $ 3 $ 3
Supplemental balance sheet information related to leases was as follows for December 31(dollars in millions):
2024 2023
Operating Leases
Operating lease ROU assets(Other property and investments—net and other non-current assets) $ 66 $ 68
Other current liabilities $ 4 $ 4
Other non-current liabilities and deferred credits 62 64
Total operating lease liabilities $ 66 $ 68
Finance Leases
Finance lease ROU assets(Other property and investments—net and other non-current assets) $ 33 $ 36
Other current liabilities $ 4 $ 3
Other non-current liabilities and deferred credits 35 39
Total finance lease liabilities $ 39 $ 42
Weighted-Average Remaining Lease Term
Operating leases 21 years 22 years
Finance leases 4 years 5 years
Weighted-Average Discount Rate
Operating leases 4.30% 4.29%
Finance leases 3.46% 3.77%
Maturities of lease liabilities(including principal and interest)were as follows as of December 31,2024(dollars in millions):
Operating Finance
Leases Leases
2025 $ 5 $ 5
2026 5 5
2027 5 5
2028 5 6
2029 5 6
Thereafter 79 22
Total lease payments $ 104 $ 49
Less:imputed interest (38) (10)
Total $ 66 $ 39
® AVISTA

NOTE b. VARIABLE INTEREST ENTITIES
Under GAAP,a limited partnership or similar legal entity that is majority ownership in any of the funds,it does not have the power to
the functional equivalent of a limited partnership is considered a VIE direct activities of the funds,and it does not have the powerto appoint
regardless of whether it otherwise qualifies as a voting interest entity executive leadership,including the board of directors.
unless a simple majority or lower threshold of the"unrelated"limited Avista Corp.participates in profits and losses of the investment
partners(i.e.,parties otherthan the general partner,entities under funds based on its ownership percentage and its losses are capped at
common control with the general partner,and other parties acting on its total initial investment in the funds.Equity investments in VIES are
behalf of the general partner)have substantive kick-out rights(including accounted for under the equity method(see Note 7).As of December 31,
liquidation rights)or participating rights. 2024,Avista Corp.has invested$82 million in these investment funds,
The Company has investments in limited partnerships(orthe with an additional commitment of$18 million remaining to be invested.
functional equivalent)where Avista Corp.is a limited partner investor The Company is not allowed to withdraw capital contributions from an
in an investmentfund where the general partner makes all of the investmentfund until afterthatfund expiration date and all liabilities of
investment and operating decisions with regards to the partnership thatfund are settled.The expiration dates range from 2025 to 2036,with
and fund.To remove the general partner from any of the funds,approval some investments having no termination date(as they are perpetual).
from greater than a simple majority of the limited partners is required. As of December 31,2024,the Company has a total carrying amount of
As such,the limited partners do not have substantive kick-out rights $89 million in these VIES,including$79 million of equity investments
and these investments are considered VIES.Consolidation of these VIES and$10 million of notes receivable.
by Avista Corp.is not required because the Company does not have
NOTE 7. EQUITY INVESTMENTS
The Company has equity investment holdings that are accounted for under the equity method,at fair value,or using the fair value measurement
alternative provided for in ASC 321,adjusting cost for impairment and observable price changes.
The following table summarizes Avista Corp:s equity investments,which are included in"Other property and investments—net and other
non-current assets"on the Consolidated Balance Sheets as of December 31(dollars in millions):
2024 2023
Equity method investments $ 77 $ 79
Investments without readily determinable fair value
Non-recurring fair value 27 24
Recurring fair value 53 50
Total $ 157 $ 153
Equity Method Investments Investments Without Readily Determinable Fair Value
The Company has investments in limited partnerships(or The Company has investments that do not qualify for equity
the functional equivalent)where Avista Corp.is a limited partner method treatment,and for which fair value is not readily determinable.
investor in an investmentfund.Holdings in these investmentfunds The Company has elected the measurement alternative for a majority
are accounted for untlerthe equity method.Underlying investments of these investments,adjusting the recorded value on a non-recurring
held bythe funds are recorded atfairvalue bythe fund,and Avista basis as a result of observable transactions involving the underlying
Corp.recognizes its share of the fund's profits and losses based on asset.The observable transaction indicates an updated fair value,and
its ownership percentage. the Company adjusts carrying value to fair value atthis point in time.
The Company also has ownership in joint ventures with The fair value of these assets is determined using the market approach,
underlying holdings in real estate,which are accounted for under and these assets are considered Level 2 on the fair value hierarchy
the equity method. (see Note 18 for a description of the fair value hierarchy).
The Company's earnings and losses related to equity method The Company has elected to record two investments at fair
investments are included in"Other income—net"on the Consolidated value on a recurring basis.These equity investments are considered
Statements of Net Income. Level 3 on the fair value hierarchy.See further discussion of Level 3
equity investments,including valuation methods and significant inputs,
as included in Note 18.
Realized and unrealized gains or losses in equity investments are
included in net income.
AVISTA m

The following table summarizes net unrealized gains(losses)related to investments without readily determinable fair value held as of the end of the
respective period for the years ended December 31(dollars in millions):
IU/4 2023 2022
Investments recorded at non-recurring fair value $ — $ — $ 12
Investments recorded at recurring fair value — (4) 33
Total $ — $ (4) $ 45
Net unrealized gains recorded related to investments recorded at non-recurring fair value result from identified observable transactions.On a
cumulative basis,the Company has recognized a net gain of$15 million for fair value adjustments to investments recorded at non-recurring fair value
held at December 31,2024.
NOTE 8. DERIVATIVES AND RISK MANAGEMENT
Energy Commodity Derivatives and delivery constraints from natural gas supply locations to Avista
Avista Corp.is exposed to market risks relating to changes in Corp.'s distribution system.However,daily variations in natural gas
electricity and natural gas commodity prices and certain other fuel demand can be significantly different than monthly demand projections.
prices.Market risk is,in general,the risk of fluctuation in the market Based on these projections,Avista Corp.plans and executes a
price of the commodity being traded and is influenced primarily by series of transactions to hedge a portion of its projected natural gas
supply and demand.Market risk includes the fluctuation in the market requirements through forward market transactions and derivative
price of associated derivative commodity instruments.Avista Corp. instruments.These transactions may extend as much as three natural
utilizes derivative instruments,such as forwards,futures,swap gas operating years(November through October)into the future.
derivatives and options to manage the various risks relating to these Avista Corp.also leaves a significant portion of its natural gas supply
commodity price exposures.Avista Corp.has an energy resources risk requirements unhedged for purchase in short-term and spot markets.
policy and control procedures to manage these risks. Avista Corp.plans for sufficient natural gas delivery capacity
As part of Avista Corp.'s resource procurement and management to serve its retail customers for a theoretical peak day event.Avista
operations in the electric business,Avista Corp.engages in an ongoing Corp.generally has more pipeline and storage capacity than what is
process of resource optimization,which involves the economic needed during periods otherthan a peak day.Avista Corp.optimizes
selection from available energy resources to serve Avista Corp.'s its natural gas resources by using market opportunities to generate
load obligations and the use of these resources to capture available economic value that mitigates the fixed costs.Avista Corp.also
economic value through wholesale market transactions.These include optimizes its natural gas storage capacity by purchasing and storing
sales and purchases of electric capacity and energy,fuel for electric natural gas when prices are traditionally lower,typically in the summer,
generation,and derivative contracts related to capacity,energy and and withdrawing during higher priced months,typically during the
fuel.Such transactions are part of the process of matching resources winter.However,if market conditions and prices indicate that Avista
with load obligations and hedging a portion of the related financial risks. Corp.should buy or sell natural gas at othertimes during the year,
These transactions range from terms of intra-hour up to multiple years. Avista Corp.engages in optimization transactions to capture value in
As part of its resource procurement and management of its natural the marketplace.Natural gas optimization activities include,but are
gas business,Avista Corp.makes continuing projections of its natural not limited to,wholesale market sales of surplus natural gas supplies,
gas loads and assesses available natural gas resources including purchases and sales of natural gas to optimize use of pipeline and
natural gas storage availability.Natural gas resource planning typically storage capacity,and participation in the transportation capacity
includes peak requirements,low and average monthly requirements release market.
® AVISTA

The following table presents the underlying energy commodity derivative volumes as of December 31,2024 expected to be delivered in each
respective year(in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical(') Financial Physical(') Financial' Physical(') Financial' Physical(') Financial(')
Year MWh MWh mmBTUs mmBTUs MWh MWh mmBTUs mmBTUs
2025 7 — 27,993 39,483 427 420 1,897 1,963
2026 — — 17,560 13,175 — — — —
2027 — — 7,555 2,250 — — — —
As of December 31,2024,there are no expected deliveries of energy commodity derivatives after 2027.
The following table presents the underlying energy commodity derivative volumes as of December 31,2023 that were expected to be delivered in
each respective year(in thousands of MWhs and mmBTUs):
Purchases Sales
Electric Derivatives Gas Derivatives Electric Derivatives Gas Derivatives
Physical(') Financial' Physical(') Financial' Physical(') Financial' Physical(') Financial(')
Year MWh MWh mmBTUs mmBTUs MWh MWh mmBTUs mmBTUs
2024 9 — 22,747 74,596 472 510 1,723 12,038
2025 12,505 19,590 11 96 1,115 1,125
2026 — — 5,570 3,940 — — — —
As of December 31,2023,there were no expected deliveries of energy commodity derivatives after 2026.
(1) Physical transactions represent commodity transactions in which Avista Corp.will take or make delivery of either electricity or natural gas;financial transactions
represent derivative instruments with delivery of cash in the amount of the benefit or cost but with no physical delivery of the commodity,such as futures,swap
derivatives,options,or forward contracts.
The electric and natural gas derivative contracts above will be flows and these differences in cost related to currency fluctuations are
included in either power supply costs or natural gas supply costs during included with natural gas supply costs for ratemaking.
the period they are scheduled to be delivered and will be included in
the various deferral and recovery mechanisms(ERM,PCA,and PGAs), The following table summarizes the foreign currency exchange
or in the general rate case process,and are expected to be recovered derivatives outstanding as of December 31(dollars in millions):
through retail rates from customers.
2024 2023
Foreign Currency Exchange Derivatives Number of contracts 22 5
A significant portion of Avista Corp.'s natural gas supply(including Notional amount(in United States dollars) $ 2 $ —
fuel for power generation)is obtained from Canadian sources.Most Notional amount(in Canadian dollars) 2 of those transactions are executed in U.S.dollars,which avoids
foreign currency risk.A portion of Avista Corp.'s short-term natural Interest Rate Swap Derivatives
gas transactions and long-term Canadian transportation contracts are Avista Corp.is affected by fluctuating interest rates related
committed based on Canadian currency prices.The shortterm natural to a portion of its existing debt,and future borrowing requirements.
gas transactions are settled within 60 days with U.S.dollars.Avista Avista Corp.may hedge a portion of its interest rate risk with financial
Corp.hedges a portion of the foreign currency risk by purchasing derivative instruments,including interest rate swap derivatives.
Canadian currency exchange derivatives when such commodity These interest rate swap derivatives are considered economic hedges
transactions are initiated.The foreign currency exchange derivatives against fluctuations in future cash flows associated with anticipated
and the unhedged foreign currency risk have not had a material effect debt issuances.
on Avista Corp.'s financial condition,results of operations or cash
AVISTA m

The following table summarizes the unsettled interest rate swap derivatives outstanding as of the balance sheet date indicated below
(dollars in millions):
Mandatory
Cash
Number of Notional Settlement
Balance Sheet Date Contracts Amount Date
December 31,2024 1 $ 10 2025
December 31,2023 2 $ 20 2024
1 10 2025
The fair value of outstanding interest rate swap derivatives can cash to settle its interest rate swap derivatives when prevailing market
vary significantly from period to period depending on the total notional rates atthe time of settlement exceed the fixed swap rates.
amount of swap derivatives outstanding and fluctuations in market
interest rates compared to the interest rates fixed bythe swaps. Summary of Outstanding Derivative Instruments
Avista Corp.is required to make cash payments to settle the interest The amounts recorded on the Consolidated Balance Sheets as
rate swap derivatives when the fixed rates are higher than prevailing of December 31,2024 and December 31,2023 reflect the offsetting of
market rates atthe date of settlement.Conversely,Avista Corp.receives derivative assets and liabilities where a legal right of offset exists.
The following table presents the fair values and locations of derivative instruments recorded on the Consolidated Balance Sheets as of
December 31,2024(dollars in millions):
Fair Value
Net Asset
(Liability)
Gross Gross Collateral on Balance
Derivative and Balance Sheet Location Asset Liability Netting Sheet
Interest rate swap derivatives
Other current assets $ 1 $ — $ — $ 1
Energy commodity derivatives
Other current assets 10 10
Other current liabilities 11 (48) 23 (14)
Other non-current liabilities and deferred credits 2 (16) 1 (13)
Total derivative instruments recorded on the balance sheet $ 24 $ (64) $ 24 $ (16)
The following table presents the fair values and locations of derivative instruments recorded on the Consolidated Balance Sheets as of
December 31,2023(dollars in millions):
Fair Value
Net Asset
(Liability)
Gross Gross Collateral on Balance
Derivative and Balance Sheet Location Asset Liability Netting Sheet
Interest rate swap derivatives
Other current assets $ 4 $ — $ — $ 4
Energy commodity derivatives
Other current assets 9 9
Other current liabilities 20 (79) 42 (17)
Other non-current liabilities and deferred credits 3 (21) — (18)
Total derivative instruments recorded on the balance sheet $ 36 $ (100) $ 42 $ (22)
m AVISTA

Exposure to Demands for Collateral additional collateral may be required.In periods of price volatility,the
Avista Corp.'s derivative contracts often require collateral(in level of exposure can change significantly.As a result,sudden and
the form of cash or letters of credit)or other credit enhancements,or significant demands may be made againstAvista Corp.'s credit facilities
reductions or terminations of a portion of the contractthrough cash and cash.Avista Corp.actively monitors the exposure to possible
settlement.In the event of changes in market prices or a downgrade collateral calls and takes steps to mitigate capital requirements.
in Avista Corp.'s credit ratings or other established credit criteria,
The following table presents collateral outstanding related to its derivative instruments as of December 31(dollars in millions):
2024 2023
Energy commodity derivatives
Cash collateral posted $ 24 $ 43
Letters of credit outstanding 12 20
There was no collateral or letters of credit outstanding related from the major credit rating agencies.If Avista Corp.'s credit ratings
to interest rate swap derivatives as of December 31,2024 and were to fall below"investment grade,"it would be in violation of
December 31,2023. these provisions,and the counterparties to the derivative instruments
Certain of Avista Corp.'s derivative instruments contain provisions could request immediate payment or demand immediate and ongoing
requiring Avista Corp.to maintain an"investment grade"credit rating collateralization on derivative instruments in net liability positions.
The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features in a liability position
and the amount of additional collateral Avista Corp.could be required to post as of December 31(dollars in millions):
2024
Energy commodity derivatives
Liabilities with credit-risk-related contingent features $ 33
Additional collateral to post 22
AVISTA W

NOTE 9. JOINTLY OWNED ELECTRIC FACILITIES
The Company has a 15 percent ownership interest in Units 3&4 of Colstrip,and provides financing for its ownership interest in the project.
In January 2023,the Company entered into an agreementto transfer its ownership in Colstrip Units 3&4to Northwestern on December 31,2025.
The Companywill retain responsibility for remediation obligations in existence atthe time the transaction closes.See further discussion of the
transaction within Note 22.
Pursuantto the ownership and operating agreements among the co-owners,the Company's share of related fuel costs as well as operating
expenses for plant in service are included in the corresponding accounts in the Consolidated Statements of Income.
The Company's share of utility plant in service for Colstrip and accumulated depreciation(inclusive of the ARO assets and accumulated
amortization)were as follows as of December 3l(dollars in millions):
2024 2023
Utility plant in service $ 401 $ 394
Accumulated depreciation (355) (334)
See Note 11 forfurther discussion of AROs.
While the obligations and liabilities with respectto Colstrip are to be shared among the co-owners on a pro-rata basis,many of the
environmental liabilities are joint and several underthe law,so that if any co-owner failed to pay its share of such liability,the other co-owners
(or any one of them)could be required to paythe defaulting co-owner's share(orthe entire liability).
M AVISTA

NOTE 10. PROPERTY, PLANT AND EQUIPMENT
Net Utility Property
Net utility property consisted of the following as of December 31(dollars in millions):
2024 2023
Utility plant in service $ 8,180 $ 7,799
Construction work in progress 238 180
Total 8,418 7,979
Less:Accumulated depreciation and amortization 2,431 2,279
Total net utility property $ 5,987 $ 5,700
Gross Property, Plant and Equipment
The gross balances of the major classifications of property,plant and equipment are detailed in the following table as of December 31
(dollars in millions):
2024 2023
Avista Utilities:
Electric production $ 1,523 $ 1,498
Electric transmission 1,105 1,059
Electric distribution 2,580 2,383
Electric construction work-in-progress(CWIP)and other 452 395
Electric total 5,660 5,335
Natural gas underground storage 63 60
Natural gas distribution 1,624 1,539
Natural gas CWIP and other 95 92
Natural gas total 1,782 1,691
Common plant(including CWIP) 760 760
Total Avista Utilities 8,202 7,786
AEL&P:
Electric production 120 119
Electric transmission 23 23
Electric distribution 36 32
Electric CWIP and other 26 9
Electric total 205 183
Common plant 11 10
Total AEL&P 216 193
Total gross utility property 8,418 7,979
Other(') 6 6
Total $ 8,424 $ 7,985
Ill Included in other property and investments—net and other non-current assets on the Consolidated Balance Sheets.
AVISTA

NOTE 11. ASSET RETIREMENT OBLIGATIONS
The Company has recorded liabilities for future AROs to: performing analyses to determine whether any potential changes
• restore coal ash containment ponds and coal holding areas to the existing remediation efforts are required.Based on the results
at Colstrip, of these analyses to date,the Company believes there will not be a
• cap a landfill at the Kettle Falls Plant,and material change to the asset retirement obligation for Colstrip related to
• remove plant and restore the land at the Coyote Springs 2 site at these final rules.
the termination of the land lease. The actual asset retirement costs related to the CCR rule
requirements may vary substantially from the estimates used to
Due to an inability to estimate a range of settlement dates, record the ARO due to the uncertainty and evolving nature of the
the Company cannot estimate a liability for the: compliance strategies that will be used and the availability of data used
• removal and disposal of certain transmission and distribution to estimate costs,such as the quantity of coal ash present at certain
assets,and sites and the volume of fill that will be needed to cap and cover certain
• abandonment and decommissioning of certain hydroelectric impoundments.The Company updates its estimates as new information
generation and natural gas storage facilities. becomes available.The Company expects to seek recovery of costs
related to complying with the CCR rule through the ratemaking process.
In 2015,the EPA issued a final rule regarding CCRs.Colstrip In addition to the above,under a 2018 Administrative Order on
produces this byproduct.The CCR rule has been the subject of ongoing Consent and ongoing negotiations with the Montana Department
litigation.In August 2018,the D.C.Circuit struck down provisions of of Ecological Quality,the owners of Colstrip are required to provide
the rule.The rule includes technical requirements for CCR landfills and financial assurance,primarily in the form of surety bonds,to secure
surface impoundments.The Colstrip owners developed a multi-year each owner's pro-rata share of various anticipated closure and
compliance plan to address the CCR requirements and existing state remediation of the ash ponds and coal holding areas.The amount of
obligations. financial assurance required of each owner may,like the ARO,vary
In April 2024 and January 2025,the EPA issued additional final substantially due to the uncertainty and evolving nature of anticipated
rules building on the 2015 regulations and regulating CCR management closure and remediation activities,and as those activities are
units at active and inactive power plants.The Colstrip owners are completed overtime.
The following table documents the changes in the Company's asset retirement obligation during the years ended December 31(dollars in millions):
2024 2023 2022
Asset retirement obligation at beginning of year $ 18 $ 16 $ 17
Liabilities incurred — 2 —
Liabilitiessettled (1) — (2)
Accretion expense 1 — 1
Asset retirement obligation at end of year $ 18 $ 18 $ 16
NOTE 12. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
The pension and other postretirement benefit plans described the maximum amounts currently deductible for income tax purposes.
below only relate to Avista Utilities.AEL&P participates in a defined The Company contributed$10 million in cash each year to the pension
contribution multiemployer plan for its union workers and a defined plan in 2024 and 2023,and$42 million in 2022.The Company expects to
contribution money purchase pension plan for its nonunion workers. contribute$10 million in cash to the pension plan in 2025.
None of the subsidiary retirement plans,individually or in the aggregate, In 2022,the defined benefit pension plan lump sum payments
are significant to Avista Corp. exceeded the annual service and interest costs for the plan.
This resulted in a partial settlement of the plan,and the Company
Avista Utilities recorded a settlement loss of$12 million for the previously
The Company has a defined benefit pension plan covering the unrecognized losses in 2022.This loss was deferred as a regulatory
majority of regular full-time non-union employees atAvista Utilities asset and is being amortized over 12 years in accordance with
hired prior to January 1,2014 and regular full-time union employees regulatory accounting orders.
that were hired prior to January 1,2024.Employees eligible for the plan In 2024,the Company offered pension participants an election
continue to accrue benefits.Individual benefits under this plan are to leave the pension plan for an alternative defined contribution
based upon the employee's years of service,date of hire and average 401(k)plan.In April 2024,it was determined that due to the number
compensation as specified in the plan.Non-union employees hired of participants electing to leave the pension plan,as well as the
on or after January 1,2014 and union employees hired on or after resulting decrease in expected future service,this event resulted in
January 1,2024 participate in a defined contribution 401(k)plan in lieu a curtailment of the pension plan,and an associated gain of$1 million
of a defined benefit pension plan.The Company's funding policy is to for the reduction in the benefit obligation.This gain was offset against
contribute at leastthe minimum amounts required to be funded under the unrecognized net actuarial loss(and recorded within a regulatory
the Employee Retirement Income Security Act,but not more than asset).The curtailment triggered a remeasurement of pension plan.
AVISTA

The remeasurement did not have a material impact on the Company's defined benefit pension plan are reduced due to the application of
financial condition or results of operations. Section 415 of the Internal Revenue Code of 1986 and the deferral of
The Company has a SERP providing additional pension benefits to salary under deferred compensation plans.The liability and expense
certain executive officers and certain key employees of the Company. forthis plan are included as pension benefits in the tables included in
The SERP provides benefits to individuals whose benefits under the this Note.
The Company expects benefit payments under the pension plan and the SERP will total(dollars in millions):
Total
2025 2026 2027 2028 2029 2030-2033
Expected benefit payments $ 44 $ 45 $ 45 $ 46 $ 46 $ 242
The expected long-term rate of return on plan assets is based on The Company has a Health Reimbursement Arrangement(HRA)
past performance and economic forecasts forthe types of investments to provide employees with tax-advantaged funds to payfor allowable
held bythe plan.In selecting a discount rate,the Company considers medical expenses upon retirement.The amount earned by the employee
yield rates for highly rated corporate bond portfolios with maturities is fixed on the retirement date based on the employee's years of service
similar to that of the expected term of pension benefits. and the ending salary.The liability and expense of the HRA are included
The Company provides certain health care and life insurance as other postretirement benefits.
benefits for eligible retired employees hired priorto January 1,2014. The Company provides death benefits to beneficiaries of executive
The Company accrues the estimated cost of postretirement benefit officers who die during theirterm of office or after retirement.Under the
obligations during the years employees provide services.The liability plan,an executive officer's designated beneficiary will receive a
and expense of this plan are included as other postretirement benefits. payment equal to twice the executive officer's annual base salary atthe
Non-union employees hired on or after January 1,2014,will have access time of death(or if death occurs after retirement,a payment equal to
to the retiree medical plan upon retirement;however,Avista Corp.will twice the executive officer's total annual pension benefit).The liability
no longer provide a contribution toward their medical premium. and expense forthis plan are included as other postretirement benefits.
The Company expects benefit payments under other postretirement benefit plans will total(dollars in millions):
Total
2025 2026 2027 2028 2029 2030-2034
Expected benefit payments $ 7 $ 7 $ 7 $ 7 $ 7 $ 38
The Company expects to contribute$7 million to other postretirement benefit plans in 2025.The Company uses a December 31 measurement
date for its pension and other postretirement benefit plans.
AVISTA

The following tables set forth the pension and other postretirement benefit plan disclosures as of December 31,2024 and 2023 and the components
of net periodic benefit costs forth eyears ended December 31,2024,2023 and 2022(dollars in millions):
Other
Pension Benefits Postretirement Benefits
2024 2023 2024 2023
Change in benefit obligation:
Benefit obligation as of beginning of year $ 585 $ 558 $ 122 $ 116
Service cost 16 14 3 2
Interest cost 34 33 7 7
Actuarial(gain)/loss') 2 21 (9) 4
Benefits paid (36) (41) (6) (7)
Curtailments (1)
Benefit obligation as of end of year(2) $ 600 $ 585 $ 117 $ 122
Change in plan assets:
Fair value of plan assets as of beginning of year $ 590 $ 541 $ 58 $ 49
Actual return on plan assets 42 79 9 9
Employer contributions 10 10 — —
Benefits paid (34) (40)
Fair value of plan assets as of end of year1'1 $ 608 $ 590 $ 67 $ 58
Funded status $ 8 $ 5 $ (50) $ (64)
Amounts recognized in the Consolidated Balance Sheets:
Other non-current assets $ 35 $ 33 $ — $ —
Othercurrentliabilities (2) (2) (1) (1)
Non-current liabilities (25) (26) (49) (63)
Net amount recognized $ 8 $ 5 $ (50) $ (64)
Accumulated pension benefit obligation(2) $ 522 $ 514
Accumulated postretirement benefit obligation:
For retirees $ 67 $ 68
For fully eligible employees $ 16 $ 16
For other participants $ 34 $ 38
Included in accumulated other comprehensive loss(income)(net of tax):
Unrecognized prior service cost(credit) $ 3 $ 4 $ — $ (1)
Unrecognized net actuarial loss 70 69 2 13
Total 73 73 2 12
Less regulatory asset (73) (72) (2) (13)
Accumulated other comprehensive loss for unfunded benefit
obligation for pensions and other postretirement benefit plans $ — $ 1 $ — $ (1)
(1) The change in the pension benefit obligation related to actuarial loss is primarily related to changes in demographic experience,partially offset by financial
assumption changes.
(2) As of December3l,2024,the SERP had a projected benefit obligation of$27 million and an accumulated benefit obligation of$26 million,with no plan assets.
Other
Pension Benefits Postretirement Benefits
2024 2023 2024 2023
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation 6.13% 5.86% 6.09% 5.83%
Discount rate for annual expense 5.86% 6.10% 5.83% 6.10%
Expected long-term return on plan assets 7.80% 8.30% 6.70% 7.20%
Rate of compensation increase 5.19% 4.87%
Medical costtrend pre-age 65—initial 6.50% 6.50%
Medical costtrend pre-age 65—ultimate 5.00% 5.00%
Ultimate medical costtrend year pre-age 65 2031 2030
Medical costtrend post-age 65—initial 6.50% 6.50%
Medical costtrend post-age 65—ultimate 5.00% 5.00%
Ultimate medical costtrend year post-age 65 2031 2030
M AVISTA

Pension Benefits Other Postretirement Benefits
2024 2023 2022 2024 2023 2022
Components of net periodic benefit cost:
Service cost") $ 16 $ 14 $ 24 3 $ 2 $ 4
Interest cost 34 33 27 7 7 6
Expected return on plan assets (45) (44) (44) (4) (3) (3)
Amortization of prior service cost(credit) — 1 — (1) (1) (1)
Net loss recognition 2 5 4 3
Settlement loss(') — — 12 — — —
Net periodic benefit cost $ 7 $ 9 $ 23 $ 5 $ 5 $ 9
(1) Total service cost in the table above is recorded to the same accounts as labor expense.Labor and benefits expense is recorded to various projects based on whether
the work is a capital project or an operating expense.Approximately 45 percent of all labor and benefits is capitalized to utility property and 55 percent is expensed to
utility other operating expenses.
(1) The settlement loss was deferred as a regulatory asset and is being amortized over 11 years in accordance with regulatory accounting orders.
Pension costs other than service costs are presented in the Consolidated Statements of Income in the line item"Other income—net."
Plan Assets The target investment allocation percentages are typically the midpoint
The Finance Committee of the Board of Directors approves of the established range.
investment policies,objectives and strategies that seek an appropriate The fair value of pension plan assets invested in debt and equity
return for the pension plan and other postretirement benefit plans and securities was based primarily on fair value(market prices).The fair
reviews and approves changes to the investment and funding policies. value of investment securities traded on a national securities exchange
The Company has contracted with investment consultants who is determined based on the reported last sales price;securities traded
are responsible for monitoring the individual investment managers. in the over-the-counter market are valued atthe last reported bid price.
The investment managers'performance and related individual fund Investment securities for which market prices are not readily available
performance is periodically reviewed by an internal benefits committee or for which market prices do not representthe value atthe time of
and bythe Finance Committee to monitor compliance with investment pricing,the investment manager estimates fair value based upon other
policy objectives and strategies. inputs(including valuations of securities comparable in coupon,rating,
Pension plan assets are invested in mutual funds,and trusts maturity and industry).
and partnerships that hold marketable debt and equity securities and Pension plan and other postretirement plan assets with fair values
real estate.In seeking to obtain a return that aligns with the funded are measured using net asset value(NAV)are excluded from the fair
status of the pension plan,the investment consultant recommends value hierarchy and included as reconciling items in the tables below.
allocation percentages by asset classes.These recommendations are The plan's investments in common/collective trusts have
reviewed bythe internal benefits committee,which then recommends redemption limitations that permit quarterly redemptions following
their adoption by the Finance Committee.The Finance Committee has notice requirements of 45 to 60 days.Most of the plan's investments in
established target investment allocation percentages by asset classes closely held investments and partnership interests have redemption
and investment ranges for each asset class of 55 percent in equity limitations ranging from bi-monthly to semi-annually following
securities,40 percent in debt securities,and 5 percent in real estate. redemption notice requirements of 60 to 90 days.
AVISTA

The following table discloses by level within the fair value hierarchy(see Note 18 for a description of the fair value hierarchy)of the pension plan's
assets measured and reported as of December 31,2024 at fair value(dollars in millions):
Level Level Level Total
Cash equivalents $ — $ 8 $ — $ 8
Fixed income securities:
U.S.government issues — 37 — 37
Corporate issues — 213 — 213
International issues — 33 — 33
Municipal issues — 11 — 11
Mutual funds:
U.S.equity securities 160 160
International equity securities 63 63
Plan assets measured at NAV(not subject to hierarchy disclosure)
Common/collective trusts:real estate 24
Partnership/closely held investments:
International equity securities 52
Real estate 7
Total $ 223 $ 302 $ — $ 608
The following table discloses by level within the fair value hierarchy(see Note 18 for a description of the fair value hierarchy)of the pension plan's
assets measured and reported as of December 31,2023 at fair value(dollars in millions):
Level Level Level Total
Cash equivalents $ — $ 7 $ — $ 7
Fixed in come securities:
U.S.government issues — 19 — 19
Corporate issues — 175 — 175
International issues — 27 — 27
Municipal issues — 14 — 14
Mutual funds:
U.S.equity securities 170 170
International equity securities 75 75
Plan assets measured at NAV(not subject to hierarchy disclosure)
Common/collective trusts:real estate 25
Partnership/closely held investments:
International equity securities 71
Real estate 7
Total $ 245 $ 242 $ — $ 590
The fair value of other postretirement plan assets invested in debt 401(k) Plans and Executive Deferral Plan
and equity securities was based primarily on market prices.The fair Avista Utilities has a salary deferral 401(k)plan that is a defined
value of investment securities traded on a national securities exchange contribution plan and covers substantially all employees.Employees can
is determined based on the last reported sales price;securities traded make contributions to their respective accounts in the plans on a pre-tax
in the over-the-counter market are valued atthe last reported bid basis up to the maximum amount permitted by law.The Company
price.For investment securities for which market prices are not readily matches a portion of the salary deferred by each participant according
available,the investment manager determines fair value based upon to the schedule in the respective plan.
other inputs(including valuations of securities comparable in coupon,
rating,maturity and industry).The target asset allocation was 60 Employer matching contributions were as follows for the years ended
percent equity securities and 40 percent debt securities in both 2024 December 31(dollars in millions):
and 2023.
The fair value of other postretirement plan assets was determined 2024 2023 2022
to be$67 million as of December 31,2024 and$58 million as of Employer 401(k)matching
December 31,2023.The assets consist of a balanced index mutual fund, contributions $ 16 $ 15 $ 13
which is a single mutual fund that includes a percentage of U.S.equity
and fixed income securities and international equity and fixed income
securities.This mutual fund is classified as Level 1 in the fair value
hierarchy(see Note 18 for a description of the fair value hierarchy).
m AVISTA

The Company has an Executive Deferral Plan.This plan allows up to 75 percent of their base salary and/or up to 100 percent of their
executive officers and other key employees the opportunityto defer incentive payments.Deferred compensation funds are held bythe
until the earlier of their retirement,termination,disability or death, Company in a Rabbi Trust.
There were deferred compensation assets included in other property and investments—net and corresponding deferred compensation liabilities
included in other non-current liabilities and deferred credits on the Consolidated Balance Sheets of the following amounts as of December 31
(dollars in millions):
2024 2023
Deferred compensation assets and liabilities $ 9 $ 8
AVISTA m

NOTE 13. ACCOUNTING FOR INCOME TAXES
Income Tax Expense
Income tax expense consisted of the following for the years ended December 31(dollars in millions):
2024 2023 2022
Current income tax expense $ 8 $ 3 $ 1
Deferred income tax benefit (5) (37) (18)
Total income tax expense(benefit) $ 3 $ (34) $ (17)
A reconciliation of federal income taxes derived from the statutory federal tax rate of 21 percent applied to income before income taxes is as
follows for the years ended December 31(dollars in millions):
2024 2023 2022
Federal income taxes at statutory rates $ 38 21.0% $ 29 21.0% $ 29 21.0%
Increase(decrease)in tax resulting from:
Tax effect of regulatory treatment of utility
plant differences (12) (6.6) (12) (8.9) (12) (9.0)
State income tax expense 2 0.9 2 1.5 2 1.2
Flow through related to deduction of meters
and mixed service costs') (23) (12.4) (48) (34.9) (35) (25.0)
Tax credits (1) (0.6) (3) (1.7) — (0.2)
Other (1) (0.8) (2) (1.4) (1) (0.5)
Total income tax expense(benefit) $ 3 1.5% $ (34) (24.4)% $ (17) (12.5)%
(1) The Company's general rate cases included approval of base rate increases,offset by tax customer credits.As the tax customer credits are returned to customers,this
results in a decrease to income tax expense due to flowing through the benefits related to meters and mixed service costs.Once these tax customer credits have been
applied to customers and are exhausted,income tax expense will increase.
Deferred Income Taxes
Deferred income taxes reflectthe net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes and tax credit carryforwards.
The total net deferred income tax liability consisted of the following as of December 31(dollars in millions):
2024 2023
Deferred income tax assets:
Regulatory liabilities $ 194 $ 192
Tax credits and net operating loss carryforwards 36 77
Provisions for pensions 16 19
Other 49 48
Total gross deferred income tax assets 295 336
Valuation allowances for deferred tax assets (8) (10)
Total deferred income tax assets after valuation allowances 287 326
Deferred income tax liabilities:
Utility property,plant,and equipment 759 747
Regulatory assets 252 269
Other 27 28
Total deferred income tax liabilities 1,038 1,044
Net long-term deferred income tax liability $ 751 $ 718
The realization of deferred income tax assets is dependent upon it is more likelythan notthat itwill only be able to utilize$11 million of
the ability to generate taxable income in future periods.The Company the state tax credits.As such,the Company has recorded a valuation
evaluated available evidence supporting the realization of its deferred allowance of$8 million against the state tax credit carryforwards and
income tax assets and determined it is more likely than not that deferred reflected the net amount of$11 million as an asset as of December 31,
income tax assets will be realized. 2024.State tax credits expire from 2025 to 2038.
As of December 31,2024,the Company had$19 million of state tax
credit carryforwards.Of the total amount,the Company believes that
AVISTA

Status of Internal Revenue Service (IRS) are charged or credited with the tax effects of their operations on a
and State Examinations stand-alone basis.
The Company and its eligible subsidiaries file consolidated federal All tax years after 2020 are open for examination in Idaho,Oregon,
income tax returns.All tax years after 2020 are open for an IRS tax Montana and Alaska.
examination.The IRS is reviewing tax year 2019. The Company believes open tax years for federal or state income
The Companyfiles state income tax returns in certain taxes will not result in adjustments thatwould be significantto the
jurisdictions,including Idaho,Oregon,Montana and Alaska.Subsidiaries consolidated financial statements.
NOTE 14. ENERGY PURCHASE CONTRACTS
The discussion below only relates to Avista Utilities.The sole Avista Utilities has contracts for the purchase of fuel for
energy purchase contract at AEL&P is a PPA for the Snettisham thermal generation,natural gas for resale and various agreements
Hydroelectric Project and it is accounted for as a lease.AEL&P does forthe purchase or exchange of electric energy with other entities.
not have any other significant operating agreements or contractual The remaining term of the contracts range from one month to
obligations.See Note 5 for further discussion of the Snettisham PPA. twenty-five years.
Total expenses for power purchased,natural gas purchased,fuel for generation and other fuel costs,which are included in utility resource costs in
the Consolidated Statements of Income,were as follows for the years ended December 31(dollars in millions):
2024 2023 2022
Utility power resources $ 548 $ 607 $ 661
The following table details Avista Utilities'future contractual commitments for power resources(including transmission contracts)and natural gas
resources(including transportation contracts)(dollars in millions):
2025 2026 2027 2028 2029 Thereafter Total
Power resources $ 333 $ 311 $ 285 $ 263 $ 264 $ 2,570 $ 4,026
Natural gas resources 108 81 64 55 50 249 607
Total $ 441 $ 392 $ 349 $ 318 $ 314 $ 2,819 $ 4,633
These energy purchase contracts were entered into as part of costs in the Consolidated Statements of Income.The contractual
Avista Utilities'obligation to serve its retail electric and natural gas amounts included above consist of Avista Utilities'share of existing
customers'energy requirements,including contracts entered into debt service cost and its proportionate share of the variable operating
for resource optimization.These costs are recovered eitherthrough expenses of these projects.The minimum amounts payable under
base retail rates or adjustments to retail rates as part of the power and these contracts are based in part on the proportionate share of the
natural gas cost deferral and recovery mechanisms. debt service requirements of the PUD's revenue bonds for which the
The future contractual commitments for power resources Company is indirectly responsible.The Company's total future debt
include fixed contractual amounts related to the Company's contracts service obligation associated with the revenue bonds outstanding at
with PUDs to purchase portions of the output of certain generating December 31,2024(principal and interest)was$267 million.
facilities.Although Avista Utilities has no investment in the PUD In addition,Avista Utilities has operating agreements,settlements
generating facilities,the contracts obligate Avista Utilities to pay and other contractual obligations related to its generating facilities and
certain minimum amounts whether or notthe facilities are operating. transmission and distribution services.The expenses associated with
The cost of power obtained underthe contracts,including payments these agreements are reflected as other operating expenses in the
made when a facility is not operating,is included in utility resource Consolidated Statements of Income.
The following table details future contractual commitments under these agreements(dollars in millions):
2025 2026 2027 2028 2029 Thereafter Total
Contractual obligations $ 39 $ 40 $ 18 $ 18 $ 9 $ 165 $ 289
AVISTA m

NOTE 15. SHORT-TERM BORROWINGS
Avista Corp. to customary conditions).The committed line of credit is secured by
Lines of Credit non-transferable first mortgage bonds of the Company issued to the
Avista Corp.has a committed line of credit in the total amount agent bankthatwould only become due and payable in the event,and
of$500 million with an expiration date of June 2028.The Company then onlyto the extent,thatthe Company defaults on its obligations
has the option to extend fortwo additional one year periods(subject underthe committed line of credit.
Balances outstanding and interest rates on borrowings(excluding letters of credit)under the Company's revolving committed line of credit were as
follows as of December 31(dollars in millions):
2024 2023
Balance outstanding at end of period $ 342 $ 349
Letters of credit balance outstanding at end of period 5 5
Average interest rate at end of period 5.52% 6.46%
As of December 31,2024 and 2023,the borrowings outstanding AEL&P
under Avista Corp.'s committed lines of credit were classified as AEL&P has a committed line of credit in the amount of$25 million
short-term borrowings on the Consolidated Balance Sheets. that expires in June 2028.The committed line of credit is secured by
non-transferable first mortgage bonds of AEL&P issued to the agent
Letter of Credit Facility bank that would only become due and payable in the event,and then
In December 2022,the Company entered into a continuing letter only to the extent,that AEL&P defaults on its obligations under the
of credit agreement in the aggregate amount of$50 million.Either party committed line of credit.
may terminate the agreement at anytime. The committed line of credit agreement contains customary
The Company had$12 million and$20 million in letters of credit covenants and default provisions.The credit agreement has a covenant
outstanding underthis agreement as of December 31,2024 and which does not permitthe ratio of"consolidated total debt atAEL&P"
December 31,2023,respectively.Letters of credit are not reflected on to"consolidated total capitalization at AEL&P,"including the impact of
the Consolidated Balance Sheets.If a letter of credit were drawn upon the Snettisham bonds to be greater than 67.5 percent at any time.As of
by the holder,we would have an immediate obligation to reimburse the December 31,2024,AEL&P complied with this covenant.
bank that issued that letter. As of December 31,2024,$12 million was outstanding under
the committed line of credit classified as short term borrowings on
Covenants and Default Provisions the Consolidated Balance Sheet,with an average interest rate of
The short-term borrowing agreements contain customary 6.13 percent.As of December 31,2023,there were no borrowings
covenants and default provisions,including a change in control(as outstanding under the agreement.
defined in the agreements).The events of default under each of the
credit facilities also include a cross defaultfrom other indebtedness(as
defined)and in some cases other obligations.Most of the short-term
borrowing agreements also include a covenant which does not
permitthe ratio of"consolidated total debt"to"consolidated total
capitalization"of Avista Corp.to be greater than 65 percent at any time.
As of December 31,2024,the Company complied with this covenant.
m AVISTA

NOTE 16. LONG—TERM DEBT
The following details long-term debt outstanding as of December 31(dollars in millions):
Maturity Interest
Year Description Rate 2024 2023
Avista Corp.Secured Long-Term Debt
2028 Secured Medium-Term Notes 6.37% $ 25 $ 25
2032 Secured Pollution Control BondsM 3.88% 67 67
2034 Secured Pollution Control BondsM 3.88% 17 17
2035 First Mortgage Bonds 6.25% 150 150
2037 First Mortgage Bonds 5.70% 150 150
2040 First Mortgage Bonds 5.55% 35 35
2041 First Mortgage Bonds 4.45% 85 85
2044 First Mortgage Bonds 4.11% 60 60
2045 First Mortgage Bonds 4.37% 100 100
2047 First Mortgage Bonds 4.23% 80 80
2047 First Mortgage Bonds 3.91% 90 90
2048 First Mortgage Bonds 4.35% 375 375
2049 First Mortgage Bonds 3.43% 180 180
2050 First Mortgage Bonds 3.07% 165 165
2051 First Mortgage Bonds 3.54% 175 175
2051 First Mortgage Bonds 2.90% 140 140
2052 First Mortgage Bonds 4.00% 400 400
2053 First Mortgage Bonds 5.66% 250 250
Total Avista Corp.secured long-term debt 2,544 2,544
Alaska Electric Light and Power Company Secured Long-Term Debt
2044 First Mortgage Bonds 4.54% 75 75
Total secured long-term debt 2,619 2,619
Alaska Energy and Resources Company Unsecured Long-Term Debt
2029 Unsecured Term Loan"' 5.92% 15 15
Total secured and unsecured long-term debt 2,634 2,634
Other Long-Term Debt Components
Unamortized debt discount (1) (1)
Unamortized long-term debt issuance costs (19) (19)
Total 2,614 2,614
Secured Pollution Control Bonds held by Avista Corporation"' — (84)
Current portion of long-term debt — (15)
Total long-term debt $ 2,614 $ 2,515
(1) In Apri12024,the Company remarketed the City of Forsyth,Montana Pollution Control Revenue Refunding Bonds.The bonds are not subject to ordinary optional
redemption.The bonds are secured by equal principal amounts of non-transferable first mortgage bonds of the Company.Avista Corp.had purchased the Forsyth bonds
upon original issuance in December1010 and held the bonds until market conditions were favorable for remarketing the bonds to unaffiliated investors.In connection
with the pricing of the Forsyth bonds,the Company cash-settled two interest rate swap derivatives(notional aggregate amount of$20 million)and received a net amount
of$4 million.See note 6 for a discussion of interest rate swap derivatives.
(2) In December 2024,AERC entered an amended agreement for its$15 million unsecured term loan.The amendment extends the maturity to December 2029,and increases
the interest rate from 3.44 percent to 5.92 percent.
The following table details future long-term debt maturities including long-term debt to affiliated trusts(see Note 17)(dollars in millions):
2025 2026 2027 2028 2029 Thereafter Total
Debt maturities $ — $ — $ — $ 25 $ 15 $ 2,646 $ 2,686
AVISTA W

Substantially all of Avista Utilities'and AEL&P's owned properties Avista Utilities and AEL&P may not individually issue any
are subject to the lien of their respective mortgage indentures. additional first mortgage bonds(with certain exceptions in the case
Under the Mortgages and Deeds of Trust(Mortgages)securing their first of bonds issued on the basis of retired bonds)unless the particular
mortgage bonds(including secured medium-term notes),Avista Utilities entity issuing the bonds has"net earnings"(as defined in that entity's
and AEL&P may each issue additional first mortgage bonds under their Mortgage)for any period of 12 consecutive calendar months out
specific mortgage in an aggregate principal amount equal to the sum of: of the preceding 18 calendar months that were at least twice the
• 662/3 percent of the cost or fair value to the Company(whichever annual interest requirements on all mortgage securities atthe time
is lower)of property additions of that entity which have not outstanding,including the first mortgage bonds to be issued,and on
previously been made the basis of any application under that all indebtedness of prior rank.As of December 31,2024,property
entity's Mortgage,or additions and retired bonds would have allowed,and the net earnings
• an equal principal amount of retired first mortgage bonds of that test would not have prohibited,the issuance of$1.5 billion by Avista
entity which have not previously been made the basis of any Corp.in an aggregate principal amount of additional first mortgage
application under that entity's Mortgage,or bonds and$56 million by AEL&P,at an assumed interest rate of
• deposit of cash. 8 percent in each case.
AVISTA

NOTE 17. LONG-TERM DEBT TO AFFILIATED TRUSTS
In 1997,the Company issued Floating Rate Junior Subordinated by the Company.Avista Capital II issued$50 million of Preferred Trust
Deferrable Interest Debentures,Series B,with a principal amount Securities.The distribution rate on the Preferred Trust Securities is
of$52 million to Avista Capital II,an affiliated business trustformed three-month CME Term SOFR plus 1.137 percent.
The distribution rates paid were as follows during the years ended December 31:
2024 2023 2022
Low distribution rate 5.64% 5.64% 1.05%
High distribution rate 6.51% 6.55% 5.64%
Distribution rate at the end of the year 5.64% 6.51% 5.64%
Concurrent with the issuance of the Preferred Trust payments from the respective debt securities.Upon maturity or prior
Securities,Avista Capital 11 issued$2 million of Common Trust redemption of such debt securities,the Preferred Trust Securities will
Securities to the Company.These Preferred Trust Securities may be mandatorily redeemed.The Company does not include these capital
be redeemed atthe option of Avista Capital II at anytime and trusts in its consolidated financial statements as Avista Corp.is not
mature on June 1,2037.In December 2000,the Company purchased the primary beneficiary.As such,the sole assets of the capital trusts
$10 million of these Preferred Trust Securities. are$52 million of junior subordinated deferrable interest debentures of
The Company owns 100 percent of Avista Capital II and has Avista Corp.,which are reflected on the Consolidated Balance Sheets.
solely and unconditionally guaranteed the payment of distributions on, Interest expense to affiliated trusts in the Consolidated Statements of
and redemption price and liquidation amount for,the Preferred Trust Income represents interest expense on these debentures.
Securities to the extent Avista Capital II has funds available for such
NOTE 18. FAIR VALUE
The carrying values of cash and cash equivalents,accounts and various assumptions,including quoted forward prices for commodities,
notes receivable,accounts payable and short-term borrowings as time value,volatility factors,and current market and contractual prices
shown on the Consolidated Balance Sheets are reasonable estimates of for the underlying instruments,as well as other relevant economic
their fair values.The carrying values of long-term debt(including current measures.Substantially all of these assumptions are observable in the
portion and finance leases),and long-term debtto affiliated trusts as marketplace throughoutthe full term of the instrument,can be derived
shown on the Consolidated Balance Sheets may be different from the from observable data or are supported by observable levels at which
estimated fair value.See belowforthe estimated fair value of long-term transactions are executed in the marketplace.
debt and long-term debtto affiliated trusts. Level 3—Pricing inputs include significant inputs generally
The fairvalue hierarchy prioritizes the inputs used to measure unobservable from objective sources.These inputs may be used with
fairvalue.The hierarchy gives the highest priorityto unadjusted internally developed methodologies that result in management's best
quoted prices in active markets for identical assets or liabilities estimate of fair value.
(Level 1 measurements)and the lowest priorityto fair values derived Financial assets and liabilities are classified in their entirety
from unobservable inputs(Level3 measurements). based on the lowest level of inputthat is significantto the fair value
The three levels of the fairvalue hierarchy are defined as follows: measurement.The Company's assessment of the significance of a
Level 1—Quoted prices are available in active markets for particular inputto the fair value measurement requires judgment and
identical assets or liabilities.Active markets are those in which may affectthe valuation of fair value assets and liabilities and their
transactions for the asset or liability occur with sufficient frequency and placement within the fair value hierarchy levels.The determination of
volume to provide pricing information on an ongoing basis. the fair values incorporates various factors that include not onlythe
Level 2—Pricing inputs are otherthan quoted prices in active credit standing of the counterparties involved and the impact of credit
markets included in Level 1,but which are either directly or indirectly enhancements(such as cash deposits and letters of credit),but also the
observable as of the reporting date.Level 2 includes financial impact of Avista Corp.'s nonperformance risk on its liabilities.
instruments valued using models or other valuation methodologies.
These models are primarily industry-standard models that consider
AVISTA

The following table sets forth the carrying value and estimated fair value of the Company's financial instruments not reported at estimated fair
value on the Consolidated Balance Sheets as of December 31(dollars in millions):
2024 2023
Carrying Estimated Carrying Estimated
Value Fair Value Value Fair Value
Long-term debt(Level 2) $ 1,100 $ 938 $ 1,100 $ 969
Long-term debt(Level 3) 1,534 1,163 1,450 1,167
Snettisham finance lease obligation(Level 3) 39 35 42 40
Long-term debt to affiliated trusts(Level 3) 52 47 52 46
These estimates of fair value of long-term debt and long-term debt consists of private placement bonds and debtto affiliated trusts,
to affiliated trusts were primarily based on available market information, which typically have no secondary trading activity.Fair values in
which generally consists of estimated market prices from third party Level 3 are estimated based on market prices from third party brokers
brokers for debtwith similar risk and terms.The price ranges obtained using secondary market quotes for debt with similar risk and terms to
from the third party brokers consisted of market prices of 57.68 to generate quotes for Avista Corp.bonds.Due to the unique nature of the
105.474 percent of the principal amount,where 100.00 represents the Snettisham finance lease obligation,the estimated fair value of these
carrying value recorded on the Consolidated Balance Sheets.Level 2 items was determined based on a discounted cash flow model using
long-term debt represents publicly issued bonds with quoted market available market information.The Snettisham finance lease obligation
prices;however,due to their limited trading activity,they are classified fair value is determined using the Morgan Markets A Ex-Fin discount
as Level 2 because brokers must generate quotes and make estimates rate as published on December 31,2024.
if there is no trading activity near a period end.Level 3 long-term debt
The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on the
Consolidated Balance Sheets as of December 31,2024 at fair value on a recurring basis(dollars in millions):
Counterparty
and Cash
Collateral
Level 1 Level 2 Level 3 Netting ' Total
December 31,2024
Assets:
Energy commodity derivatives(2) $ — $ 23 $ — $ (13) $ 10
Interest rate swap derivatives — 1 — — 1
Equity investments(1) — — 53 — 53
Deferred compensation assets:
Mutual Funds:
Fixed income securities isi 2 2
Equity securities i3i 7 7
Total $ 9 $ 24 $ 53 $ (13) $ 73
Liabilities:
Energy commodity derivatives(2) $ — $ 61 $ 3 $ (37) $ 27
Total $ — $ 61 $ 3 $ (37) $ 27
AVISTA

The following table discloses by level within the fair value hierarchy the Company's assets and liabilities measured and reported on the
Consolidated Balance Sheets as of December 31,2023 at fair value on a recurring basis(dollars in millions):
Counterparty
and Cash
Collateral
Level 1 Level Level 3 Netting " Total
December 31,2023
Assets:
Energy commodity derivatives(2) $ — $ 31 $ — $ (23) $ 8
Interest rate swap derivatives — 4 — — 4
Equity investments(3) — — 50 — 50
Deferred compensation assets:
Mutual Funds:
Fixed income securities(3) 1 — — — 1
Equity securities 13 7 — — — 7
Total $ 8 $ 35 $ 50 $ (23) $ 70
Liabilities:
Energy commodity derivatives(2) $ — $ 92 $ 8 $ (65) $ 35
Total $ — $ 92 $ 8 $ (65) $ 35
(1) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement
exists.In addition,the Company nets derivative assets and derivative liabilities against payables and receivables for cash collateral held or placed with these
same counterparties.
(2) The Leve13 energy commodity derivative balances are associated with a natural gas exchange agreement.
(3) Included in other property and investments-net and other non-current assets on the Consolidated Balance Sheets.
The difference between the amount of derivative assets the swap compared to the floating market interest rate multiplied by the
and liabilities disclosed in respective levels in the table above notional amount for each period.
and the amount of derivative assets and liabilities disclosed on Deferred compensation assets and liabilities representfunds
the Consolidated Balance Sheets is due to netting arrangements held by the Company in a Rabbi Trustfor an executive deferral plan.
with certain counterparties.See Note 8 for additional discussion These funds consist of activelytraded equity and bond funds with
of derivative netting. quoted prices in active markets.
To establish fair value for energy commodity derivatives,the
Company uses quoted market prices and forward price curves to Level 3 Fair Value
estimate the fair value of energy commodity derivative instruments Natural Gas Exchange Agreement
included in Level 2.Electric derivative valuations are performed using For the natural gas commodity exchange agreement,the Company
market quotes,adjusted for periods in between quotable periods. uses the same Level 2 market quotes described above;however,the
Natural gas derivative valuations are estimated using Newyork Company also estimates the purchase and sales volumes(within
Mercantile Exchange pricing for similar instruments,adjusted for contractual limits)as well as the timing of those transactions.Changing
basin differences,using market quotes.Where observable inputs are the timing of volume estimates changes the timing of purchases
available for substantially the full term of the contract,the derivative and sales,impacting which brokered quote is used.Because the
asset or liability is included in Level 2. brokered quotes can vary significantly from period to period,the
To establish fair values for interest rate swap derivatives,the unobservable estimates of the timing and volume of transactions can
Company uses forward market curves for interest rates for the term of have a significant impact on the calculated fair value.The Company
the swaps and discounts the cash flows back to present value using an currently estimates volumes and timing of transactions based on a
appropriate discount rate.The discount rate is calculated by third party most likely scenario using historical data.Historically,the timing and
brokers according to the terms of the swap derivatives and evaluated volume of transactions are not highly correlated with market prices and
by the Company for reasonableness,with consideration given to the market volatility.
potential non-performance risk bythe Company.Future cash flows of As of December 31,2024,expected remaining transactions under
the interest rate swap derivatives are equal to the fixed interest rate in the agreement were sales.The contract expires in April 2025.
AVISTA

The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and liabilities above as of
December 31,2024(dollars in millions,except mmBTU amounts):
Fair Value(Net)at
December 31,2024 Valuation Technique Unobservable Input Range
Natural gas exchange $ (3) Internally derived Forward sales prices $2.28—$4.57/mmBTU
weighted-average $3.18 Weighted-Average
cost of gas
Sales volumes 280,000-600,000 mmBTUs
The valuation methods,significant inputs and resulting fair values described above were developed bythe Company and are reviewed on at
least a quarterly basisto ensure they provide a reasonable estimate of fair value each reporting period.
Equity Investments based on income statement forecasts from the underlying company
The Company has two equity investments measured at fair value to determine cash flows for the period of ownership.The model then
on a recurring basis.For one investment,fair value is determined utilizes market multiples from publicly traded comparable companies
using a market approach,starting with enterprise values from recent in similar industries and projects to estimate the terminal fair value.
market transaction data for comparable companies with similar equity The market multiples are reduced to reflectthe difference in the life
instruments.The market transaction data was used to estimate an cycle between the publiclytraded comparable companies and the
enterprise value of the underlying investment and thatvalue was start-up nature of the investment company.The selection of appropriate
allocated to the various classes of equity via an option pricing model comparable companies,market multiples and the reduction to those
and a waterfall approach.The selection of appropriate comparable market multiples requires management judgment.The significant
companies and the expected time to a liquidation event requires assumptions in the model include the discount rate representing the
management judgment.The significant assumptions in the analysis risk associated with the investment,market multiples and the related
include the comparable market transactions and related enterprise reduction to those multiples,revenue forecasts,and the estimated
values,time to liquidity event and the market discount for lack of terminal date for the investment.In the eventthere are relevant market
liquidity.In the event there are relevant market transactions for the transactions for the same or similar securities of the subject company
same or similar securities of the subject company or there is the or there is the reasonable possibility of a transaction occurring,those
reasonable possibility of a transaction occurring,these transactions transactions are used to determine the fair value of Avista Corp.'s
are utilized as an inputto the valuation with a probability weight investment under a market approach instead of utilizing a discounted
applied to the valuation. cash flow model.The market transactions are considered Level 3 inputs
Forthe second investment,the fair value is determined using an because they are not publicly available observable transactions.
income approach utilizing a discounted cash flow model.The model is
The following table presents the quantitative information which was used to estimate the fair values of the Level 3 equity investments as of
December 31,2024(dollars in millions):
Fair Value at
December 31,2024 Valuation Technique Unobservable Input Range
Equity investments $ 53 Market approach Comparable enterprise $130—$389
values $246Average
Time to liquidity event 1.5 years
Discounted cash flows Revenue market multiples 0.49xto 6.02x Revenue
2.11xAverage
Market exit reduction 50%
Discount rate 25%
Annual revenues $23—$153
Terminal date 2029
m AVISTA

The following table presents activity for assets and liabilities measured at fair value using significant unobservable inputs(Level 3)for the years
ended December 31(dollars in millions):
Natural Gas
Exchange Equity
AgreementM Investments Total
2024:
Balance as of January 1,2024 $ (8) $ 50 $ 42
Total gains or(lasses)(realized/unrealized):
Included in regulatory assets 5 — 5
Purchases and debt conversions — 3 3
Ending balance as of December 31,2024 $ (3) $ 53 $ 50
2023:
Balance as of January 1,2023 $ (18) $ 54 $ 36
Total gains or(lasses)(realized/unrealized):
Included in regulatory assets 10 — 10
Recognized in net income — (4) (4)
Purchases and debt conversions — 3 3
Other — (3) (3)
Ending balance as of December 31,2023 $ (8) $ 50 $ 42
2022:
Balance as of January 1,2022 $ (8) $ — $ (8)
Transfers in(2) — 21 21
Total gains(realized/unrealized):
Included in regulatory assets (5) — (5)
Recognized in net income — 33 33
Settlements (5) — (5)
Ending balance as of December 31,2022 $ (18) $ 54 $ 36
(1) There were no purchases,issuances or transfers from other categories of derivatives instruments during the periods presented in the table above.
(2) The Company elected to account for certain equity investments at recurring fair value in 2022,as such,the transfer in represents the value as of the date of the election.
See further discussion within Note 7.
NOTE 19. COMMON STOCK
The payment of dividends on common stock could be limited by: The requirements of the OPUC approval of the AERC acquisition
• certain covenants applicable to preferred stock(when are the most restrictive.Under the OPUC restriction,the amount
outstanding)contained in the Company's Restated Articles of available for dividends at December 31,2024 was$326 million.
Incorporation,as amended(currentlythere are no preferred See the Consolidated Statements of Equity for dividends declared
shares outstanding), in the years 2022 through 2024.
• certain covenants applicable to the Company's outstanding long- The Company has 10 million authorized shares of preferred
term debt and committed line of credit agreements, stock.The Company did not have preferred stock outstanding as of
• the hydroelectric licensing requirements of section 10(d)of the December 31,2024 and 2023.
FPA(see Note 1),and
• certain requirements under the OPUC approval of the AERC Common Stock Issuances
acquisition in 2014.The OPUC's AERC acquisition order requires The Company issued common stockfortotal net proceeds of
Avista Utilitiesto maintain a capital structure of no lessthan $68 million in 2024.Most of these issuances were made through sales
40 percent common equity(inclusive of short-term debt).This agency agreements under which the Company may offer and sell new
limitation may be revised upon request by the Company with shares of common stock from time-to-time through its sales agents.
approval from the OPUC. In 2024,1.8 million shares were issued under these agreements.
AVISTA m

NOTE 20. ACCUMULATED OTHER COMPREHENSIVE LOSS
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss—net of tax,was immaterial as of December 31,2024 and December 31,2023.
The following table details the reclassifications out of accumulated other comprehensive loss by component for the years ended December 31
(dollars in millions):
Amounts Reclassified from
Details about Accumulated Other Comprehensive Loss Components Accumulated Other Comprehensive Loss
(Affected Line Item in Statements of Income) 2024 2023 2022
Amortization of defined benefit pension and postretirement benefit items
Amortization of net prior service cost(a) $ 1 $ (1) $ (4)
Amortization of net loss(a) (12) 19 57
Adjustment due to effects of regulation a 11 (16) (42)
Total before tax n — 2 11
Tax expense 1e) — — (2)
Net of tax iei $ — $ 2 $ 9
(a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost(see Note 12 for additional details).
(b) Description is also the affected line item on the Consolidated Statements of Income.
NOTE 21. EARNINGS PER COMMON SHARE
The following table presents the computation of basic and diluted earnings per common share for the years ended December 31(dollars in millions,
except per share amounts,and shares in thousands):
2024 2023 2022
Numerator:
Net income $ 180 $ 171 $ 155
Denominator:
Weighted-average number of common shares outstanding—basic 78,725 76,396 72,989
Effect of dilutive securities:
Performance and restricted stock awards 95 100 104
Weighted-average number of common shares outstanding—diluted 78,820 76,495 73,093
Earnings per common share: '
Basic $ 2.29 $ 2.24 $ 2.13
Diluted $ 2.29 $ 2.24 $ 2.12
(1) Per share amounts may not recalculate due to rounding of numerator and denominator amounts within this table.
There were no shares excluded from the calculation because they were antidilutive.
AVISTA

NOTE 22. COMMITMENTS AND CONTINGENCIES
In the course of its business,the Company becomes involved in subrogation claims seeking recovery of$1.8 million in insurance
various claims,controversies,disputes and other contingent matters, proceeds purportedly paid to their insureds.
including the items described in this Note.Some of these claims, The lawsuits were filed in the Superior Court of Ferry County,
controversies,disputes and other contingent matters involve litigation Washington,and is scheduled for trial on July 7,2025.The Company
or other contested proceedings.For all such matters,the Company continues to vigorously defend itself in the litigation.However,atthis
will vigorously protect and defend its interests and pursue its rights. time the Company is unable to predictthe likelihood of an adverse
However,no assurance can be given as to the ultimate outcome of any outcome or estimate a range of potential loss in the event of such
matter because litigation and other contested proceedings are subject an outcome.
to numerous uncertainties.For matters affecting Avista Utilities'
or AEL&P's operations,the Company intends to seek,to the extent Labor Day 2020 Windstorm/Babb Road Fire
appropriate,recovery of incurred costs through the ratemaking process. In September 2020,a severe windstorm occurred in eastern
Washington and northern Idaho.The extreme weather event resulted
Climate Commitment Act in customer outages and multiple wildfires in the region,including the
The CCA requires the Company to submit greenhouse gas emission Babb Road Fire,which occurred near the town of Malden,Washington.
reports to Ecology annually for its electric and natural gas entities.The The Babb Road Fire covered approximately 15,000 acres and destroyed
CCA then requires the Company to contract with a third-party verifier approximately 220 structures.There are no reports of personal injury or
to audit the emissions data in the emissions reports.In August 2024, death resulting from the fire.
the Company's third-party verifier submitted to Ecology its verification In May 2021 the Company learned the Washington Department of
report on the Company's 2023 emissions report.The verification report Natural Resources(DNR)had completed its investigation and issued a
was issued with an adverse emissions data verification statement.In report on the Babb Road Fire.
September 2024,in the absence of a positive verification statement, The DNR report concluded,among other things,that:
Ecology assigned an emission level(AEL)to Avista Corp.based on • the fire was ignited when a branch of a multi-dominant Ponderosa
information submitted bythe Company's third-party verifier.In late Pine tree was broken off bythe wind and fell on an Avista Corp.
October 2024,the Company resubmitted a revised emissions report distribution line;
to the third-party verifier and Ecology.In November 2024,the third- • the tree was located approximately 30 feet from the center of
party verifier issued a revised 2023 emissions report with a positive Avista Corp.'s distribution line and approximately 20 feet beyond
verification statement.In December 2024 Ecology issued a revised Avista Corp.'s right-of-way;
AEL for the 2023 emissions reporting year that was in line with the • the tree showed some evidence of insect damage,a small area of
Company's estimates. scarring where a lateral branch/leader(LBL)had broken off in the
past,and some past signs of Gall Rust disease.
Collective Bargaining Agreements
The Company's collective bargaining agreement with the IBEW The DNR report concluded that:"because of the unusual
represents 36 percent of all Avista Utilities'employees.The Company's configuration of the tree,and its proximity to the powerline,a closer
largest represented group,representing approximately 90 percent of inspection was warranted.A nearer inspection of the tree should have
Avista Utilities'bargaining unit employees in Washington and Idaho, revealed the cut LBL ends and its previous failure,and necessitated
are covered under a four year agreement which expires in March 2025. determination of the failure potential of the adjacent LBL,implicated in
The Company and the IBEW began negotiations on a new collective starting the Babb Road Fire."
bargaining agreement in the first quarter of 2025. The DNR report acknowledged that,otherthan the multi-dominant
nature of the tree,the conditions mentioned above would not have
Boyds Fire (State of Washington Department of been easily visible without close-up inspection of,or cutting into,
Natural Resources v. Avista) the tree.The report also acknowledged that,while the presence of
In August 2019,the Company was served with a complaint, multiple tops would have been visible from the nearby roadway,the
captioned"State of Washington Department of Natural Resources tree did notfail at a v-fork due to the presence of multiple tops.The
v.Avista Corporation,"seeking recovery of up to$4.4 million for fire Company contends that applicable inspection standards did not require
suppression and investigation costs and related expenses incurred in a closer inspection of the otherwise healthy tree,nor was the Company
connection with a wildfire that occurred in Ferry County,Washington,in negligentwith respectto its maintenance,inspection orvegetation
August2018.Specifically,the complaint alleges the fire,which became management practices.
known as the"Boyds Fire,"was caused by a dead ponderosa pine tree Eleven lawsuits have been filed in connection with the Babb Road
falling into an overhead distribution line,and that Avista Corp.,along fire.Asplundh Tree Company and CN Utility Consulting,which both
with its independent vegetation management contractors Asplundh perform vegetation management services as independent contractors
Tree Company and CN Utility Consulting,were negligent in failing to to the Company,are also named as defendants in each of the lawsuits.
identify and remove the tree before it came into contact with the line. The lawsuits include six subrogation actions filed by 51 insurance
Avista Corp.disputes that it was negligent in failing to identify and companies seeking to recover approximately$21 million purportedly
remove the tree in question.Additional lawsuits were subsequently paid to insureds to date;and five actions on behalf of 128 individual
filed by private landowners seeking$0.8 million in property damages plaintiffs.One of the private plaintiff actions was originallyfiled as
as well as potential non-economic damages,and holders of insurance a class action lawsuit,but has since been amended to assert direct
AVISTA m

claims on behalf of 10 individual plaintiffs.In the course of discovery, estimate the likelihood of an adverse outcome nor the amount or range
approximately 80 private plaintiffs have provided information about their of a potential loss in the event of an adverse outcome.
alleged damages.Based on information received to date,the 80 private
plaintiffs claim damages of approximately$60 million.$21 million of this Colstrip
claim is alleged noneconomic damages(i.e.,emotional distress).The Colstrip Owners Arbitration and Litigation
Company does not believe non-economic damages are applicable in this Colstrip Units 3&4 are owned by the Company,PacifiCorp,
case and will vigorously dispute such claims.Approximately$6 million of Portland General Electric(PGE),and Puget Sound Energy(PSE)
private plaintiffs'claimed damages have been covered by insurance or (collectively,the"Western Co-Owners"),as well as NorthWestern and
other forms of reimbursement. Talen Montana,LLC(Talen),as tenants in common under an Ownership
All proceedings,exceptfor one action filed on September 1,2023 and Operating Agreement,dated May 6,1981,as amended(0&0
on behalf of three individual plaintiffs(the"Willman Action")have been Agreement),in the percentages set forth below:
consolidated in the Superior Court of Spokane County Washington
under the lead action Blakeleyv.Avista Corporation et al.,and variously Co-Owner Unit3 Unit
assert causes of action for negligence,private nuisance,and trespass Avista 15% 15%
(the"Blakeley Proceeding"). PacifiCorp 10% 10%
In November 2023,all parties to the Blakeley Proceeding agreed PGE 20% 20%
to a stipulated order,which was presented to and entered by the PSE 25% 25%
Superior Court of Spokane County,Washington.The order consolidates NorthWestern — 30%
the Blakeley Proceeding for trial(in addition to discovery and pre-trial Talen 30% —
proceedings)and bifurcates the trial into liability and damages phases,
such thatthe initial trial in the case will focus solely on whether the Colstrip Units 1&2,owned by PSE and Talen,were shutdown in
defendants are legally responsible for the Babb Road Fire.A trial date on 2020 and are in the process of being decommissioned.The co-owners
the liability phase is currently setfor May 5,2025,but may be continued of Units 3&4 also own undivided interests in facilities common to
given the current status of discovery.The Widman Action is setfor trial both Units 3&4,as well as in certain facilities common to all four
on October 6,2025. Colstrip units.
In addition,the stipulated order relating to the Blakeley The Washington Clean Energy Transformation Act(CETA),among
Proceeding memorializes the plaintiffs'agreementto voluntarily dismiss other things,imposes deadlines by which each electric utility must
all claims asserting inverse condemnation as a theory of liability, eliminate from its electricity rates in Washington the costs and benefits
without prejudice to their ability to seek permission from the Courtto associated with coal-fired resources,such as Colstrip.The practical
refile those claims at a later date if they can show good cause to do so. impact of CETA is electricity from such resources,including Colstrip,
The Widman Action does not include claims for inverse condemnation. may no longer be delivered to Washington retail customers after 2025.
The parties to the Blakeley Proceeding agreed to a preliminary
mediation no later than 60 days prior to the liability trial,and,if there Agreement Between Avista and NorthWestern
is a trial following that mediation and if the jury returns a verdict in the In January 2023,the Company entered into an agreement with
plaintiffs'favor in the liability trial,a second mediation within 90 days NorthWestern under which,subject to the terms and conditions
following the verdictfocusing on damages.The preliminary mediation specified in the agreement,the Company will transfer its 15 percent
is scheduled forthe first quarter of 2025.Finally,the plaintiffs agreed ownership in Colstrip Units 3&4to NorthWestern.There is no monetary
to complete a damages questionnaire identifying all claimed damages exchange included in the transaction.The transaction is scheduled to
being sought in connection with the litigation. close on December 31,2025 or such other date as the parties mutually
The Company will vigorously defend itself in the legal proceedings; agree upon.
however,atthis time the Company is unable to predictthe likelihood of Underthe agreement,the Company will remain obligated through
an adverse outcome or estimate a range of potential loss in the event of the close of the transaction to pay its share of(i)operating expenses,(ii)
such an outcome. capital expenditures,but not in excess of the portion allocable pro rata
to the portion of useful life(through 2030)expired through the close of
Orofino Fire the transaction,and(iii)site remediation expenses except certain costs
In August 2023,a fire subsequently referred to as the"Hospital relating to post closing activities.In addition,the Company would enter
Fire"started in windy conditions near Orofino,Idaho,burning 53 acres into an agreement under which it would retain its voting rights with
and seven primary residences,as well as several outbuildings.The respect to decisions relating to remediation.
Idaho Department of Lands investigated and has issued a report in The Company will retain its Colstrip transmission system assets,
which it concluded the fire was caused by an electrical fault igniting which are excluded from the transaction.
three separate spots which then spread uphill.The Company has a The transaction is subjectto the satisfaction of customary
distribution line in the area near the ignition point.The Company has to closing conditions.Although the agreement was also contingent upon
date found no evidence suggesting negligence on its part.Exceptfor NorthWestern's abilityto enter into a new coal supply agreement by
two minor claims for damage to personal property which were resolved, December 31,2024,NorthWestern has since waived that contingency.
the Company has not,at this time,received any claims in connection The Company does not expectthis transaction to have a direct
with the fire.The Company will vigorously defend itself in the event material impact on its financial results.
any additional claims are asserted;however,atthis time,it is unable to
m AVISTA

Agreement Between PSE and Northwestern Complaint of Consumers for Independent
In July2024,PSE entered into an agreementwith NorthWestern Regional Transmission Planning for All FERC-
underwhich,PSE will transfer its 25 percent ownership in Colstrip jurisdictional Transmission Facilities at 1001<V
Units 3&4to NorthWestern.There is no monetary exchange and Above
included in the transaction.The transaction is scheduled to close on In December 2024,the Company received notice of a complaint
December 31,2025. filed with the FERC by Consumers for Independent Regional
Transmission Planning against all FERC-jurisdictional Transmission
Burnett et al.v.Talen et al. providers with local planning tariffs utilizing facilities at 100 kV and
Multiple property owners initiated a legal proceeding(titled above,which includes the Company.The complaint alleges thatthe local
Burnett et al.v.Talen et al.)in the Montana District Court for transmission planning process allows individual transmission owners
Rosebud County againstTalen,PSE,PacifiCorp,PGE,Avista Corp., to plan FERC-jurisdictional transmission facilities without regard to
NorthWestern,and Westmoreland Rosebud Mining.The plaintiffs whether that planning is the more efficient or cost-effective project for
allege a failure to contain coal dust in connection with the operation of the interconnected grid and cost effective for customers.The Company
Colstrip,and seek unspecified damages.The Colstrip owners reached intends to vigorously defend itself in this action;however,atthis time
a settlementwith one of the litigants,Richard Burnett,for an amount of the Company is unable to predictthe likelihood of an adverse outcome or
less than$0.1 million.The settlement does not involve or implicate the estimate a range of potential loss in the event of such an outcome.
claims of any other litigants.The Company will vigorously defend itself
in the litigation,but at this time is unable to predict the outcome,nor an Other Contingencies
amount or range of potential impact in the event of an outcome adverse In the normal course of business,the Company has various other
to the Company's interests. legal claims and contingent matters outstanding.The Company believes
any ultimate liability arising from these actions will not have a material
Westmoreland Mine Permits impact on its financial condition,results of operations or cash flows.
Two lawsuits have been commenced bythe Montana It is possible a change could occur in the Company's estimates of the
Environmental Information Center and others,challenging certain probability or amount of a liability being incurred.Such a change,should
permits relating to the operation of the Westmoreland Rosebud Mine, it occur,could be significant.
which provides coal to Colstrip.In the first,the Montana District Court The Company routinely assesses,based on studies,expert
for Rosebud County issued an order vacating a permit for one area of analysis and legal reviews,its contingencies,obligations and
the mine,which decision was subsequently upheld bythe Montana commitments for remediation of contaminated sites,including
Supreme Court.In the second,the Montana Federal District Court assessments of ranges and probabilities of recoveries from other
vacated a decision bythe federal Office of Surface Mining Reclamation responsible parties who either have or have not agreed to a settlement
and Enforcement,a branch of the United States Department of the as well as recoveries from insurance carriers.The Company's policy is
Interior,approving expansion of the mine into a new area,pending to accrue and charge to current expense identified exposures related
further analysis of potential environmental impact.An initial appeal of to environmental remediation sites based on estimates of investigation,
that decision to the Ninth Circuit was dismissed for lack of jurisdiction, cleanup and monitoring costs to be incurred.
pending further proceedings before the Department of the Interior. The Company has potential liabilities under the Endangered
Avista Corp.is not a party to either of these proceedings,but continues Species Act and similar state statutes for species of fish,plants and
to monitor the progress of both issues and assess the impact,if any,of wildlife that have either already been added to the endangered species
the proceedings on Westmoreland's ability to meet its contractual coal list,listed as"threatened"or petitioned for listing.Thus far,measures
supply obligations. adopted and implemented have had minimal impact on the Company.
However,the Company will continue to seek recovery,through the
Rathdrum, Idaho Natural Gas Incident ratemaking process,of all operating and capitalized costs related to
In October 2021,there was an incident in Rathdrum,Idaho these issues.
involving the Company's natural gas infrastructure.The incident Underthe federal licenses for its hydroelectric projects,the
occurred after a third party damaged those facilities during excavation Company is obligated to protect its property rights,including water
work.The incident resulted in a fire which destroyed one residence rights.In addition,the Company holds additional non-hydro water
and resulted in minor injuries to the occupants.In January 2023, rights.The States of Montana and Idaho are each conducting general
the Company was served with a lawsuit filed in the District Court of adjudications of water rights in areas that include the Company's
Kootenai County,Idaho by one property owner,seeking unspecified facilities in these states.Claims within the Clark Fork River basin and the
damages.In February 2024,the Company received a second lawsuit Spokane River basin could adversely affect the energy production of the
filed bythe owners of the adjacent property,seeking damages for Company's hydroelectric facilities.The Company is and will continue to
personal injury and emotional distress from having witnessed the be a participant in the adjudication processes.The complexity of such
incident.The Company will vigorously defend itself in the legal adjudications makes each unlikely to be concluded in the foreseeable
proceedings;however,atthis time the Company is unable to predict the future.As such,it is not possible for the Company to estimate the
likelihood of an adverse outcome or estimate a range of potential loss in impact of any outcome atthis time.The Company will continue to
the event of such an outcome. seek recovery,through the ratemaking process,of all costs related
to this issue.
AVISTA M

NOTE 23. REGULATORY MATTERS
Regulatory Assets and Liabilities
The following table presents the Company's regulatory assets and liabilities as of December 31,2024(dollars in millions):
Receiving
Regulatory Treatment 2024 2023
Remaining Not Expected
Amortization Earning Earning Recovery
Period a Return!" a Return or Refund 12 Current Non-current Current Non-current
Regulatory Assets:
Deferred income tax (3)(16) $ — $ 246 $ — $ — $ 246 $ — $ 244
Pensions and other
postretirement benefit plans (4) — 106 — — 106 — 118
Climate Commitment Act (14) 50 — 50 — — 46
Energy commodity derivatives (5) — 41 — 27 14 51 18
Unamortized debt repurchase costs (5) 5 — — 5 — 6
Settlement with Coeur d'Alene Tribe 2059 36 — — 36 — 37
Demand side management programs (3) — 38 — — 38 — 10
Decoupling surcharge 2025 24 12 12 5 5
Utility plant abandoned (7) 39 3 — 4 38 — 38
Interest rate swaps (9) 172 — — — 172 — 179
Deferred power costs (3) 36 — — 9 27 29 21
Deferred natural gas costs (3) — — — — — 61 —
AFUDC above FERC allowed rate (11) 49 — — — 49 — 50
COVID-19 deferrals 11�1 — — 12 — 12 — 12
Advanced meter infrastructure (13) 26 — — — 26 — 29
Other regulatory assets (3) 45 52 4 35 66 — 81
Total regulatory assets $ 482 $ 486 $ 16 $ 137 $ 847 $ 146 $ 894
Regulatory Liabilities:
Deferred natural gas costs (3) $ 25 $ — $ — $ 25 $ — $ 9 $ —
Deferred power costs (3) 14 — — 8 6 — 4
Utility plant retirement costs (9) 448 — — — 448 — 417
Excess deferred income taxes (19) 293 14 279 15 293
Other income tax related liabilities 131(15) — 64 — 5 59 25 57
Climate Commitment Act (14) 44 — — 44 — — 37
Interest rate swaps (8) 19 — 5 — 24 — 24
Decoupling rebate 2025 4 — — 4 — 19 6
COVID-19 deferrals (1�) — — 10 — 10 — 10
Other regulatory liabilities 131 9 7 — 8 8 8 9
Total regulatory liabilities $ 856 $ 71 $ 15 $ 108 $ 834 $ 76 $ 857
(1) Earning a return includes either interest on the regulatory asset/liability or a return on the investment as a component ofrate base at the allowed rate of return.
(2) Expected recovery is pending regulatory treatment including regulatory assets and liabilities with prior regulatory precedence.
(3) Remaining amortization period varies depending on timing of underlying transactions.
(4) As the Company has historically recovered and currently recovers its pension and other postretirement benefit costs related to its regulated operations in retail rates,the
Company records a regulatory asset for that portion of its pension and other postretirement benefit funding deficiency.
(5) The WUTC and the IPUC issued accounting orders authorizing Avista Corp.to offset energy commodity derivative assets or liabilities with a regulatory asset or liability.
This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity transactions until the period of delivery.
Realized benefits and losses result in adjustments to retail rates through PGAs,the ERM in Washington,the PCA mechanism in Idaho and periodic general rates cases.
The resulting regulatory assets associated with energy commodity derivative instruments have been concluded to be probable of recovery through future rates.
(6) Premiums paid or discounts received to repurchase debt are amortized over the remaining life of the original debt repurchased or,if new debt is issued in connection with
the repurchase,these costs are amortized over the life of the new debt.These costs are recovered through retail rates as a component of interest expense.
(7) The WUTC approved recovery ofAMI project costs through the 2020general rate case settlements,including amortization of retired meters replaced through the project
through 2033.The IPUC approved deferral accounting treatment for the Idaho AN project,which will be included in a future rate case.In addition,the IPUC approved
M AVISTA

the depreciation of Colstrip through 2027,and as such the remaining depreciation after our exit of Colstrip in 2025 is included in this balance.There are additional smaller
projects included in the balance the Company expects to fully recover,which have not yet been through the regulatory process.
(8) For interest rate swap derivatives,Avista Corp.records all mark-to-market gains and losses in each accounting period as assets and liabilities,as well as offsetting
regulatory assets and liabilities,such that there is no income statement impact.The interest rate swap derivatives are risk management tools similar to energy commodity
derivatives.Upon settlement of interest rate swap derivatives,the regulatory asset or liability is amortized as a component of interest expense over the term of the
associated debt.The Company records an offset of interest rate swap derivative assets and liabilities with regulatory assets and liabilities,based on the prior practice
of the commissions to provide recovery through the ratemaking process.Settled interest rate swap derivatives which have been through a general rate case proceeding
are classified as earning a return in the table above,whereas all unsettled interest rate swap derivatives and settled interest rate swap derivatives which have not been
included in a general rate case are classified as expected recovery.
(9) This amount is dependent upon the cost ofremoval of underlying utility plant assets and the life of utility plant.
(10) This balance represents amounts due back to customers and resulted from the Tax Cuts and Jobs Act signed into law in December2017,which changed the federal
income tax rate from 35 percent to 21 percent.The Company revalued all deferred income taxes as of December31,2017.The Company expects the amounts for utility
plant items for Avista Utilities to be returned to customers over a period of approximately29 years.The Company expects the AEL&P amounts to be returned to customers
over a period of approximately 20 years.
01) This amount is being amortized based on the underlying utility plant assets and the life of utility plant.
(12) The WUTC,IPUC and OPUC issued accounting orders allowing the Company to defer certain costs,net of benefits,related to the COVID-19 pandemic.The Company has
recorded all benefits on a gross basis as a regulatory liability to customers and all additional allowed costs are a regulatory asset.The ratemaking treatment is being
determined in general rate cases in each jurisdiction.
(13) This amount represents the deferral ofthe depreciation expense of the Company'sAMI project in Washington state.Recovery of these amounts was approved by WUTC
in the 2021 general rate case order,and the asset will be amortized through 2033.
(14) Regulatory assets related to the Climate CommitmentAct represent costs incurred to comply with the program.Regulatory liabilities related to the Climate Commitment
Act represent proceeds from the required sale of allowances,which will be returned to customers.The Company submits filings periodically to receive approval to
include these items in customer rates.
(15) The majority of this amount represents the remaining tax customer credits being returned to customers and the tax gross-up on tax customer credits and investment tax
credits,which have a corresponding deferred tax asset within Note 13.
(16) The majority of this balance represents flow-through income tax accounting differences and the related tax gross-up which have a corresponding deferred tax liability
within Note 13.
Power Cost Deferrals and Recovery Mechanisms In Wash ington,the ERM al lows Avista Utilities to periodically
Deferred power supply costs are recorded as a deferred charge or increase or decrease electric rates with WUTC approval to reflect
liability on the Consolidated Balance Sheets for future prudence review changes in power supply costs.The ERM is an accounting method used
and recovery or rebate through retail rates.The power supply costs to track certain differences between actual power supply costs,net of
deferred include certain differences between actual net power supply wholesale sales and sales of fuel,and the amount included in base retail
costs incurred byAvista Utilities and the costs included in base retail rates for Washington customers.Underthe ERM,the Company defers
rates.This difference in net power supply costs primarily results from these differences(over the$4 million deadband and sharing bands)for
changes in: future surcharge or rebate to customers.
• short-term wholesale market prices and sales
and purchase volumes,
• the level,availability and optimization of hydroelectric generation,
• the level and availability ofthermal generation(including changes
in fuel prices),
• retail loads,and
• sales of surplus transmission capacity.
AVISTA

The following is a summary of the ERM:
Deferred for Future
Surcharge or Rebate Expense or Benefit
Annual Power Supply Cost Variability to Customers to the Company
within+/-$0 to$4 million(deadband) 0% 100%
higher by$4 million to$10 million 50% 50%
lower by$4 million to$10 million 75% 25%
higher or lower by over$10 million 90% 10%
Total net deferred power costs under the ERM were assets of energy usage.In each of Avista Utilities'jurisdictions,Avista Utilities'
$36 million as of December 31,2024 and$38 million as of December 31, electric and natural gas revenues are adjusted so as to be based on the
2023.The deferred power cost assets represent amounts due from number of customers in certain customer rate classes and assumed
customers,and deferred power cost liabilities represent amounts due "normal"kilowatt hour and therm sales,rather than being based on
to customers. actual kilowatt hour and therm sales.The difference between revenues
Pursuantto WUTC requirements,should the cumulative deferral based on the number of customers and"normal"sales and revenues
balance exceed$30 million in the rebate or surcharge direction,the based on actual usage is deferred and either surcharged or rebated to
Company must make a filing with the WUTC to adjust customer rates customers beginning in the following year.Only residential and certain
to either return the balance to customers or recover the balance commercial customer classes are included in decoupling mechanisms.
from customers.Avista Utilities makes an annual filing on,or before,
April 1 of each yearto provide the opportunity for the WUTC staff Washington Decoupling and Earnings Sharing
and other interested parties to review the prudence of,and audit,the In Washington,the WUTC approved the Company's decoupling
ERM deferred power cost transactions forthe prior calendar year. mechanisms for electric and natural gas through December 2026.
In June 2023,the Company received approval from the WUTC for a rate Electric and natural gas decoupling surcharge rate adjustments
surcharge to customers over a two-year period,effective July 1,2023. to customers are limited to a 3 percent increase on an annual basis,
Avista Utilities has a PCA mechanism in Idaho allowing forthe with remaining surcharge balance carried forward for recovery in a
modification of electric rates on October 1 of each year with IPUC future period.There is no limit on the level of rebate rate adjustments.
approval.Underthe PCA mechanism,Avista Utilities defers 90 percent New customers added after a test period are not decoupled until
of the difference between certain actual net power supply expenses included in a future test period.
and the amount included in base retail rates for its Idaho customers. The decoupling mechanisms each include an after-the-fact
The October 1 rate adjustments recover or rebate power costs deferred earnings test.Atthe end of each calendar year,separate electric
during the preceding July—June twelve-month period.Total net power and natural gas earnings calculations are made forthe calendaryear
supply costs deferred underthe PCA mechanism were liabilities of just ended.These earnings tests reflect actual decoupled revenues,
$15 million as of December 31,2024 and assets of$8 million as of normalized power supply costs and other normalizing adjustments.
December 31,2023.Deferred power cost assets represent amounts due Through the 2022 general rate cases,the Company modified its earnings
from customers and liabilities represent amounts due to customers. test so that if the Company earns more than 0.5 percent higher than the
ROR authorized by the WUTC in the multi-year rate plan,the Company
Natural Gas Cost Deferrals and would defer these excess revenues and later return them to customers.
Recovery Mechanisms
Avista Utilities files a PGA in all three states it serves to Idaho FCA and Earnings Sharing Mechanisms
adjust natural gas rates for:1)estimated commodity and pipeline In Idaho,the IPUC approved the implementation of FCAs for
transportation costs to serve natural gas customers forthe coming electric and natural gas through March 31,2025.A pending application
year,and 2►the difference between actual and estimated commodity would extend the mechanism through August 31,2029.
and transportation costs forthe prior year.In Oregon,the Company
absorbs(cost or benefit)10 percent of the difference between actual Oregon Decoupling Mechanism
and projected natural gas costs included in base retail rates for supply In Oregon,the Company has a decoupling mechanism for natural
that is not hedged.Total net deferred natural gas costs were a liability gas.An earnings review is conducted on an annual basis.In the annual
of$25 million as of December 31,2024 and an asset of$52 million as earnings review,if the Company earns more than 100 basis points
of December 31,2023.Asset balances represent amounts due from above its allowed ROE,one-third of the earnings above the 100 basis
customers and liabilities represent amounts due to customers. points would be deferred and later returned to customers.The earnings
review is separate from the decoupling mechanism and was in place
Decoupling and Earnings Sharing Mechanisms prior to decoupling.
Decoupling(also known as an FCA in Idaho)is a mechanism
designed to sever the link between a utility's revenues and consumers'
M AVISTA

Cumulative Decoupling and Earnings Sharing Mechanism Balances
As of December 31,2024 and December 31,2023,the Company had the following cumulative balances outstanding related to decoupling and
earnings sharing mechanisms in its various jurisdictions(dollars in millions):
December31, December31,
2024 2023
Washington
Decoupling surcharge(rebate) $ 18 $ (3)
Idaho
Decoupling surcharge(rebate) $ 1 $ (8)
Provision for earnings sharing rebate — (1)
Oregon
Decoupling surcharge(rebate) $ 1 $ (4)
NOTE 24. INFORMATION BY BUSINESS SEGMENTS
The business segment presentation reflects the information it has separate financial information and its operations and risks are
reviewed bythe Company's Chief Operating Decision Maker(CODM, sufficiently differentfrom Avista Utilities and the other businesses
the Company's President and Chief Operating Officer,who became at AERC that it cannot be aggregated with other operating segments.
President and Chief Executive Officer effective January 1,2025). The Other category,which is not a reportable segment,includes other
Such information is the basis for the analysis of segment performance investments and operations of various subsidiaries,as well as certain
and the allocation of resources.Performance is evaluated based on net other operations of Avista Capital.Decisions by the CODM are made
income(loss)and variances of actual performance from the Company's in consultation with other members of management,as appropriate,
budget and/or forecast when making decisions.The accounting policies and are subject to the general oversight and strategic direction of the
of the segments are the same as those described in the summary of Board of Directors.
significant accounting policies.Avista Utilities'business is managed
based on the total regulated utility operation;therefore,it is considered
one segment.AEL&P is a separate reportable business segment since
AVISTA

The following table presents information for each of the Company's business segments(dollars in millions):
Reportable Segments
Alaska Other
Electric Non-
Light and Reportable
Avista Power Segment
Utilities Company Total Utility Items Eliminations(') Total
2024
Operating revenues $ 1,887 $ 50 $ 1,937 $ 1 $ — $ 1,938
Resource costs 794 4 798 798
Other operating expenses 426 17 443 1 — 444
Depreciation and amortization 263 11 274 274
Interest income 15 — 15 1 (2) 14
Interest expense(2) 143 6 149 3 (2) 150
Other segment expense 0 95 1 96 7 — 103
Income tax expense(benefit) 2 3 5 (2) — 3
Net income(loss) 179 8 187 (7) — 180
Capital expenditures(') 510 23 533 533
2023
Operating revenues $ 1,703 $ 48 $ 1,751 $ 1 $ — $ 1,752
Resource costs 698 4 702 702
Other operating expenses 399 15 414 3 — 417
Depreciation and amortization 254 11 265 265
Interest income 15 — 15 1 15
Interest expense(2) 137 6 143 2 (') 144
Other segment expense 0 98 — 98 4 — 102
Income tax expense(benefit) (35) 3 (32) (2) — (34)
Net income(loss) 167 9 176 (5) — 171
Capital expenditures(1) 485 14 499 499
2022
Operating revenues $ 1,663 $ 46 $ 1,709 $ 1 $ — $ 1,710
Resource costs 732 4 736 736
Other operating expenses 391 14 405 12 — 417
Depreciation and amortization 242 11 253 253
Interest income 3 — 3 1 — 4
Interest expense(2) 112 6 118 1 — 119
Other segment expense 0 98 2 100 (49) — 51
Income tax expense(benefit) (27) 2 (25) 8 — (17)
Net income 118 7 125 30 — 155
Capital expenditures(1) 443 9 452 1 — 453
Total Assets:
As of December 31,2024 $ 7,494 $ 283 $ 7,777 $ 194 $ (30) $ 7,941
As of December 31,2023 7,263 270 7,533 191 (22) 7,702
As of December 31,2022 6,976 264 7,240 187 (10) 7,417
(1) Eliminations reported as interest expense and interest income represent intercompany interest.Eliminations reported as assets represent intersegment
accounts receivable.
(2) Including interest expense to affiliated trusts.
(3) Other segment items include taxes other than income tax,AFUDC equity,other miscellaneous expenses,and earnings(losses)from investments.
(4) The capital expenditures for the other businesses are included in other investing activities on the Consolidated Statements of Cash Flows.
M AVISTA

ITEM 9. Changes in and Disagreements The Company's internal control overfinancial reporting includes
with Accountants on Accounting and policies and procedures that pertain to the maintenance of records
Financial Disclosure that,in reasonable detail,accurately and fairly reflect transactions and
dispositions of assets;provide reasonable assurances that transactions
Not applicable. are recorded as necessaryto permit preparation of financial statements
in accordance with accounting principles generally accepted in the
ITEM 9A. Controls and Procedures United States of America,and that receipts and expenditures are being
made only in accordance with authorizations of management and the
CONCLUSION REGARDING THE directors of the Company;and provide reasonable assurance regarding
EFFECTIVENESS OF DISCLOSURE CONTROLS prevention or timely detection of unauthorized acquisition,use or
AND PROCEDURES disposition of the Company's assets that could have a material effect on
the Company's financial statements.
The Company has disclosure controls and procedures(as defined Underthe supervision and with the participation of the Company's
in Rules 13a-15(e)and 15d-15(e)underthe Securities Exchange Act of management,including the Company's principal executive officer and
1934,as amended(Act))that are designed to ensure that information principal financial officer,the Company conducted an assessment of the
required to be disclosed in the reports itfiles or submits underthe Act effectiveness of the Company's internal control overfinancial reporting
is recorded,processed,summarized and reported on a timely basis. based on the framework established in Internal Control-Integrated
Disclosure controls and procedures include,without limitation,controls Framework(2013)issued by the Committee of Sponsoring Organizations
and procedures designed to ensure that information required to be of the Treadway Commission.Based on this assessment,management
disclosed by the Company in the reports that it files or submits underthe determined that the Company's internal control overfinancial reporting
Act is accumulated and communicated to the Company's management, as of December 31,2024 is effective at a reasonable assurance level.
including its principal executive and principal financial officers,as The Company's independent registered public accounting
appropriate,to allowtimely decisions regarding required disclosure. firm,Deloitte&Touche LLP,has issued an attestation report
With the participation of the Company's principal executive officer and on the Company's internal control overfinancial reporting as of
principal financial officer,the Company's management evaluated its December 31,2024.
disclosure controls and procedures as of the end of the period covered
by this report.There are inherent limitations to the effectiveness of any CHANGES IN INTERNAL CONTROL OVER
system of disclosure controls and procedures,including the possibility FINANCIAL REPORTING
of human error and the circumvention or overriding of the controls
and procedures.Accordingly,even effective disclosure controls and There have been no changes in the Company's internal control
procedures can only provide reasonable assurance of achieving their overfinancial reporting that occurred during the Company's lastfiscal
control objectives.Based upon this evaluation,the Company's principal quarterthat has materially affected,or is reasonably likelyto materially
executive officer and principal financial officer have concluded that affect,the Company's internal control over financial reporting.
the Company's disclosure controls and procedures are effective at a
reasonable assurance level as of December 31,2024.
MANAGEMENT'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
The Company's management,together with its consolidated
subsidiaries,is responsible for establishing and maintaining adequate
internal control overfinancial reporting(as defined in Rule 13a-15(f)
underthe Securities Exchange Act of 1934).The Company's internal
control overfinancial reporting is a process designed underthe
supervision of the Company's principal executive officer and principal
financial officer to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of the Company's
financial statements for external reporting purposes in accordance
with accounting principles generally accepted in the United States
of America.
AVISTA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Avista Corporation
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Avista Corporation and subsidiaries(the"Company")as of December 31,2024,
based on criteria established in Internal Control—Integrated Framework(2013)issued by the Committee of Sponsoring Organizations of the Treadway
Commission(COSO).In our opinion,the Company maintained,in all material respects,effective internal control overfinancial reporting as of
December 31,2024,based on criteria established in Internal Control—Integrated Framework(2013)issued by COSO.
We have also audited,in accordance with the standards of the Public Company Accounting Oversight Board(United States)(PCAOB),
the consolidated financial statements as of and for the year ended December 31,2024,of the Company and our report dated February 25,2025,
expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting,included in the accompanying Management's Report on Internal Control Over Financial
Reporting.Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.We are a public
accounting firm registered with the PCAOB and are required to be independent with respectto the Company in accordance with the U.S.federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB.Those standards require that we plan and perform the auditto obtain
reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.Our audit included
obtaining an understanding of internal control over financial reporting,assessing the riskthat a material weakness exists,testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk,and performing such other procedures as we considered
necessary in the circumstances.We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A company's internal control over financial reporting includes those policies and procedures that(1)pertain to the maintenance of records that,
in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company;(2)provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles,and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors
of the company;and(3)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,use,or disposition of the
company's assets that could have a material effect on the financial statements.
Because of its inherent limitations,internal control over financial reporting may not prevent or detect misstatements.Also,projections of any
evaluation of effectiveness to future periods are subjectto the riskthat controls may become inadequate because of changes in conditions,or that
the degree of compliance with the policies or procedures may deteriorate.
/s/Deloitte&Touche LLP
Portland,Oregon
February 25,2025
M AVISTA

ITEM 9B. Other Information ITEM 9C. Disclosure Regarding Foreign
Jurisdictions That Prevent Inspections
During the fiscal quarter ended December 31,2024,none of
our directors or officers informed us ofthe adoption or termination Not applicable.
of a"Rule 10b5-1 trading arrangement"or"non-Rule 10b5-1 trading
arrangement,"as those terms are defined in Regulation S-K,Item 408.
A copy of our insidertrading policy has been included as Exhibit 19 to
this report.
AVISTA ®.

0:7AA211M E
ITEM 10. Directors, Executive Officers and Corporate Governance
The information required by this Item(other than the information regarding executive officers and the Company's Code of Business Conduct and
Ethics set forth below)is omitted pursuant to General Instruction G to Form 10-K.Such information is incorporated herein by reference as follows:
• on and after the date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders scheduled
to be held on May 8,2025,from such Proxy Statement;and
• prior to such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of Shareholders held
on May 1,2024.
Information about our Executive Officers
Name Age Business Experience
Heather L.Rosentrater 47 President,Chief Executive Officer and Director since January 2025,President and Chief
Operating Officer October 2023 to December 2024;Senior Vice President and Chief Operating
Officer from September 2022 to October 2023;Senior Vice President,Energy Delivery and
Shared Services from January 2020 to September 2022;Senior Vice President,Energy
Delivery from October 2019to December 2019;Vice President of Energy Delivery from
December 2015 to October 2019;various other management and staff positions with the
Company since 1996.
Dennis P.Vermillion 63 Executive Vice President since January 2025,Chief Executive Officer October 2019 to
December 2024;Director from January 2018 to December 2024;President of Avista Corp.
from January 2018 to October 2023;Senior Vice President from January 2010to January
2018;Vice President July 2007 to December 2009;President—Avista Utilities since January
2009;Vice President of Energy Resources and Optimization—Avista Utilities July 2007 to
December 2008;President and Chief Operating Officer of Avista Energy February 2001 to
July 2007;various other management and staff positions with the Company since 1985.
Kevin J.Christie 57 Senior Vice President,Chief Financial Officer,Treasurer and Regulatory Affairs Officer since
May 2023;Senior Vice President,External Affairs and Chief Customer Officer from October
2019 to May 2023;Vice President,External Affairs and Chief Customer Officer January 2018
to October 2019;Vice President of Customer Solutions from February 2015to January 2018;
various other management and staff positions with the Company since 2005.
Bryan A.Cox 55 Senior Vice President,Safety and Chief People Officer since October 2023;Vice President,
Safety and Chief People Officer from September 2022 to October 2023;Vice President,
Safety and Human Resources from January 2020 to September 2022;Vice President,Safety
and HR Shared Services from January 2018 to January 2020;various other management and
staff positions with the Company since 1997.
Gregory C.Hesler 47 Senior Vice President,General Counsel,Corporate Secretary and Chief Ethics/Compliance
Officer since September 2022;Vice President,General Counsel,Corporate Secretary
and Chief Ethics/Compliance Officer from May 2020 to September 2022;Vice President,
General Counsel and Chief Compliance Officer from January 2020 to May 2020;various other
management and staff positions with the Company since 2015.
Em AVISTA

Jason R.Thackston 55 Senior Vice President,Energy Policy and Chief Strategy Officer since January 2025;
Senior Vice President,Chief Strategy and Clean Energy Officer September 2022 to
December 2024;Senior Vice President of Energy Resources and Environmental Compliance
Officer from May 2018 to September 2022;Senior Vice President of Energy Resources
from January 2014 to May 2018;Vice President of Energy Resources from December 2012
to January 2014;Vice President of Customer Solutions—Avista Utilities from June 2012
to December 2012;Vice President of Energy Delivery from April 2011 to December 2012;
Vice President of Finance from June 2009 to April 2011;various other management and
staff positions with the Company since 1996.
Joshua D.DiLuciano 44 Vice President of Energy Delivery since September 2022;various other management
and staff positions with the Company since 2006.
Latisha D.Hill 46 Vice President,Community Affairs and Chief Customer Officer since May 2023;
Vice President of Community and Economic Vitality from January 2020 to May 2023;
various other management and staff positions with the Company since 2005.
Scott J.Kinney 56 Vice President,Energy Resources and Integrated Planning since January 2025;
Vice President of Energy Resources from September 2022 to December 2024;various
other management and staff positions with the Company since 1999.
Ryan L.Krasselt 55 Vice President,Controller and Principal Accounting Officer since October 2015;
various other management and staff positions with the Company since 2001.
Wayne 0.Manuel 52 Vice President,Chief Information Officer and Chief Security Officer since June 2023;
priorto employment with the Company,Senior Vice President,Chief Strategy Officer
and Chief Information Officer of Valley Medical Center from 2014 to May 2023.
David J.Meyer 71 Vice President and Chief Counsel for Regulatory and Governmental Affairs since February
2004;Senior Vice President and General Counsel from September 1998 to February 2004.
All of the Company's executive officers,with the exception of Joshua D.DiLuciano,Scott J.Kinney,David J.Meyer and Wayne 0.Manuel
were officers or directors of one or more of the Company's subsidiaries in 2024.The Company's executive officers are appointed annually bythe
Board of Directors.
The Company has adopted a Code of Conductfor directors,officers(including the principal executive officer,principal financial officer and
principal accounting officer),and employees.The Code of Conduct is available on the Company's website at www.avistacorp.com and will be
provided to any shareholder without charge upon written requestto:
Avista Corp.
General Counsel
P.O.Box3727 MSC-10
Spokane,Washington 99220-3727
Any changes to or waivers for executive officers and directors of the Company's Code of Conduct will be posted on the Company's website.
AVISTA ®i

ITEM 11. Executive Compensation
The information required bythis Item is omitted pursuantto General Instruction G to Form 10-K.Such information is incorporated herein by
reference as follows:
• on and afterthe date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders scheduled
to be held on May 8,2025,from such Proxy Statement;and
• priorto such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of Shareholders held
on May 1,2024.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
(a) Security ownership of certain beneficial owners(owning 5 percent or more of Registrant's voting securities):
Information regarding security ownership of certain beneficial owners(owning 5 percent or more of Registrant's voting securities)has
been omitted pursuantto General Instruction G to Form 10-K.Such information is incorporated herein by reference as follows:
• on and afterthe date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders
scheduled to be held on May 8,2025,from such Proxy Statement;and
• priorto such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of
Shareholders held on May 1,2024;reference also being made to Schedules 13G,as amended,on file with the SEC with respectto the
Registrant's voting securities(the information contained in such schedules 13G,as amended,not being incorporated herein
by reference).
(b) Security ownership of management:
The information required bythis Item regarding the security ownership of management is omitted pursuantto General Instruction G to
Form 10-K.Such information is incorporated herein by reference as follows:
• on and afterthe date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders
scheduled to be held on May 8,2025,from such Proxy Statement;and
• priorto such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of
Shareholders held on May 1,2024.
(c) Changes in control:
None.
(d) Securities authorized for issuance under equity compensation plans as of December 31,2024:
(a) (b) (c)
Number of securities to be Weighted-average Number of securities remaining
issued upon exercise of exercise price of available for future issuance under
outstanding options, outstanding options, equity compensation plans(excluding
Plan category warrants and rights" warrants and rights securities reflected in column(a))
Equity compensation plans approved by
security holders — $ — 351,811
(1) Excludes unvested restricted shares and performance share awards granted under Avista Corp.'s Long-Term Incentive Plan.AtDecember3l,2024,158,464 Restricted
Share awards were outstanding.Performance and market-based share awards maybe paid out at zero shares ate minimum achievement level;310,016 shares at target
level,or 620,032 shares at a maximum level.Because there is no exercise price associated with restricted shares or performance and market-based share awards,such
shares are not included in the weighted-average price calculation.
(2) Includes the Long-Term Incentive Plan approved by shareholders in 1998(amended in 2016)and the Non-Employee Director Stock Plan approved by shareholders in 1996.
In February 2005,the Board of Directors elected to terminate the Non-Employee Director Stock Plan.
® AVISTA

ITEM 13. Certain Relationships and Related Transactions, and Director Independence
The information required bythis Item is omitted pursuantto General Instruction G to Form 10-K.Such information is incorporated herein by
reference as follows:
• on and afterthe date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders scheduled
to be held on May 8,2025,from such Proxy Statement;and
• priorto such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of Shareholders held
on May 1,2024.
ITEM 14. Principal Accounting Fees and Services
The information required bythis Item is omitted pursuantto General Instruction G to Form 10-K.Such information is incorporated herein by
reference as follows:
• on and afterthe date of filing with the SEC the Registrant's definitive Proxy Statement relating to its Annual Meeting of Shareholders scheduled
to be held on May 8,2025,from such Proxy Statement;and
• priorto such date,from the Registrant's definitive Proxy Statement,dated March 20,2024,relating to its Annual Meeting of Shareholders held
on May 1,2024.
AVISTA

RT IV4
ITEM 15. Exhibits, Financial Statement Schedules
(a) 1. Financial Statements(Included in Part II of this report):
Report of Independent Registered Public Accounting Firm
Consolidated Statements of Income forthe Years Ended December 31,2024,2023 and 2022
Consolidated Statements of Comprehensive Income for the Years Ended December 31,2024,2023 and 2022
Consolidated Balance Sheets as of December 31,2024,and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31,2024,2023 and 2022
Consolidated Statements of Equityforthe Years Ended December 31,2024,2023 and 2022
Notes to Consolidated Financial Statements
(a) 2.Financial Statement Schedules:
None
(a) 3.Exhibits:
Reference is made to the Exhibit Index commencing on the following page.The Exhibits include the management contracts and
compensatory plans or arrangements required to be filed as exhibits to this Form 10-K pursuantto Item 15(b).
® AVISTA

EXHIBIT INDEX
Previously Filed'
Exhibit With Registration Number As Exhibit
2.1 (with Form 8-K filed as of 2.1 Colstrip Units 3&4 Interests Abandonment and Acquisition
January 17,2023) agreement,dated as of January 16,2023,among Avista Corporation
and Northwestern Corporation.
3.1 (with June 30,2012 3.1 Restated Articles of Incorporation of Avista Corporation,as amended
Form 10-0.) and restated June 6,2012.
3.2 (with Form 8-K filed as of 3.2 Bylaws of Avista Corporation,as amended August 17,2016.
August 17,2016)
4.1 2-4077 B-3 Mortgage and Deed of Trust,dated as of June 1,1939.*
4.2 2-9812 4(c) First Supplemental Indenture,dated as of October 1,1952.*
4.3 2-60728 2(b)-2 Second Supplemental Indenture,dated as of May 1,1953.*
4.4 2-13421 4(b)-3 Third Supplemental Indenture,dated as of December 1,1955.*
4.5 2-13421 4(b)-4 Fourth Supplemental Indenture,dated as of March 15,1967.*
4.6 2-60728 2(b)-5 Fifth Supplemental Indenture,dated as of July 1,1957.*
4.7 2-60728 2(b►-6 Sixth Supplemental Indenture,dated as of January 1,1958.*
4.8 2-60728 2(b)-7 Seventh Supplemental Indenture,dated as of August 1,1958.*
4.9 2-60728 2(b)-8 Eighth Supplemental Indenture,dated as of January 1,1959.*
4.10 2-60728 2(b)-9 Ninth Supplemental Indenture,dated as of January 1,1960.*
4.11 2-60728 2(b►-10 Tenth Supplemental Indenture,dated as of April 1,1964.*
4.12 2-60728 2(b)-11 Eleventh Supplemental Indenture,dated as of March 1,1965.*
4.13 2-60728 2(b)-12 Twelfth Supplemental Indenture,dated as of May 1,1966.*
4.14 2-60728 2(b)-13 Thirteenth Supplemental Indenture,dated as of August 1,1966.*
4.15 2-60728 2(b)-14 Fourteenth Supplemental Indenture,dated as of April 1,1970.*
4.16 2-60728 2(b)-15 Fifteenth Supplemental Indenture,dated as of May 1,1973.*
4.17 2-60728 2(b►-16 Sixteenth Supplemental Indenture,dated as of February 1,1975.*
4.18 2-60728 2(b)-17 Seventeenth Supplemental Indenture,dated as of November 1,1976.*
4.19 2-69080 2(b)-18 Eighteenth Supplemental Indenture,dated as of June 1,1980.*
4.20 (with 1980 Form 10-K) 4(a)-20 Nineteenth Supplemental Indenture,dated as of January 1,1981.*
4.21 2-79571 4(a)-21 Twentieth Supplemental Indenture,dated as of August 1,1982.*
AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed'!
Exhibit With Registration Number As Exhibit
4.22 (with Form 8-K dated 4(a)-22 Twenty-First Supplemental Indenture,dated as of September 1,1983.*
September 20,1983)
4.23 2-94816 4(a)-23 Twenty-Second Supplemental Indenture,dated as of March 1,1984.*
4.24 (with 1986 Form 10-K) 4(a)-24 Twenty-Third Supplemental Indenture,dated as of December 1,1986.*
4.25 (with 1987 Form 10-K) 4(a)-25 Twenty-Fourth Supplemental Indenture,dated as of January 1,1988.*
4.26 (with 1989 Form 10-K) 4(a)-26 Twenty-Fifth Supplemental Indenture,dated as of October 1,1989.*
4.27 33-51669 4(a)-27 Twenty-Sixth Supplemental Indenture,dated as of April 1,1993.*
4.28 (with 1993 Form 10-K) 4(a)-28 Twenty-Seventh Supplemental Indenture,dated as of January 1,1994.
4.29 (with 2001 Form 10-K) 4(a)-29 Twenty-Eighth Supplemental Indenture,dated as of September 1,2001.
4.30 333-82502 4(b) Twenty-Ninth Supplemental Indenture,dated as of December 1,2001.
4.31 (with June 30,2002 Form 10-0.) 4(f) Thirtieth Supplemental Indenture,dated as of May 1,2002.
4.32 333-39551 4(b) Thirty-First Supplemental Indenture,dated as of May 1,2003.
4.33 (with September 30,2003 4(f) Thirty-Second Supplemental Indenture,dated as of September 1,2003.
Form 10-0.)
4.34 333-64652 4(a)33 Thirty-Third Supplemental Indenture,dated as of May 1,2004.
4.35 (with Form 8-K dated as of 4.1 Thirty-Fourth Supplemental Indenture,dated as of November 1,2004.
December 15,2004)
4.36 (with Form 8-K dated as of 4.2 Thirty-Fifth Supplemental Indenture,dated as of December 1,2004.
December 15,2004)
4.37 (with Form 8-K dated as of 4.3 Thirty-Sixth Supplemental Indenture,dated as of December 1,2004.
December 15,2004)
4.38 (with Form 8-K dated as of 4.4 Thirty-Seventh Supplemental Indenture,dated as of December 1,2004.
December 15,2004)
4.39 (with Form 8-K dated as of 4.1 Thirty-Eighth Supplemental Indenture,dated as of May 1,2005.
May 12,2005)
4.40 (with Form 8-K dated as of 4.1 Thirty-Ninth Supplemental Indenture,dated as of November 1,2005.
November 17,2005)
4.41 (with Form 8-K dated as of 4.1 Fortieth Supplemental Indenture,dated as of April 1,2006.
April 6,2006)
4.42 (with Form 8-K dated as of 4.1 Forty-First Supplemental Indenture,dated as of December 1,2006.
December 15,2006)
® AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed"'
Exhibit With Registration Number As Exhibit
4.43 (with Form 8-K dated as of 4.1 Forty-Second Supplemental Indenture,dated as of April 1,2008.
April 3,2008)
4.44 (with Form 8-K dated as of 4.1 Forty-Third Supplemental Indenture,dated as of November 1,2008.
November 26,2008)
4.45 (with Form 8-K dated as of 4.1 Forty-Fourth Supplemental Indenture,dated as of December 1,2008.
December 16,2008)
4.46 (with Form 8-K dated as of 4.3 Forty-Fifth Supplemental Indenture,dated as of December 1,2008.
December 30,2008)
4.47 (with Form 8-K dated as of 4.1 Forty-Sixth Supplemental Indenture,dated as of September 1,2009.
September 15,2009)
4.48 (with Form 8-K dated as of 4.1 Forty-Seventh Supplemental Indenture,dated as of November 1,2009.
November 25,2009)
4.49 (with Form 8-K dated as of 4.5 Forty-Eighth Supplemental Indenture,dated as of December 1,2010.
December 15,2010)
4.50 (with Form 8-K dated as of 4.1 Forty-Ninth Supplemental Indenture,dated as of December 1,2010.
December 20,2010)
4.51 (with Form 8-K dated as of 4.1 Fiftieth Supplemental Indenture,dated as of December 1,2010.
December 30,2010)
4.52 (with Form 8-K dated as of 4.1 Fifty-First Supplemental Indenture,dated as of February 1,2011.
February 11,2011)
4.53 (with Form 8-K dated as of 4.1 Fifty-Second Supplemental Indenture,dated as of August 1,2011.
August 16,2011)
4.54 (with Form 8-K dated as of 4.1 Fifty-Third Supplemental Indenture,dated as of December 1,2011.
December 14,2011)
4.55 (with Form 8-K dated as of 4.1 Fifty-Fourth Supplemental Indenture,dated as of November 1,2012.
November 30,2012)
4.56 (with Form 8-K dated as of 4.1 Fifty-Fifth Supplemental Indenture,dated as of August 1,2013.
August 14,2013)
4.57 (with Form 8-K dated as of 4.1 Fifty-Sixth Supplemental Indenture,dated as of April 1,2014.
April 18,2014)
4.58 (with Form 8-K dated as of 4.1 Fifty-Seventh Supplemental Indenture,dated as of December 1,2014.
December 18,2014)
4.59 (with Form 8-K dated as of 4.1 Fifty-Eighth Supplemental Indenture,dated as of December 1,2015.
December 16,2015)
4.60 (with Form 8-K dated as of 4.1 Fifty-Ninth Supplemental Indenture,dated as of December 1,2016.
December 16,2016)
AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed(')
Exhibit With Registration Number As Exhibit
4.61 (with Form 8-K dated as of 4.1 Sixtieth Supplemental Indenture,dated as of December 1,2017.
December 14,2017)
4.62 (with Form 8-K dated as of 4(a)(62) Sixty-First Supplemental Indenture,dated as of May 1,2018.
May 15,2018)
4.63 (with Form 8-K dated as of 4.1 Sixty-Second Supplemental Indenture,dated as of November 1,2019.
November 26,2019)
4.64 (with Form 8-K dated as of 4.1 Sixty-Third Supplemental Indenture,dated as of June 1,2020.
June 4,2020)
4.65 (with Form 8-K dated as of 4.1 Sixty-Fourth Supplemental Indenture,dated as of September 1,2020.
September 30,2020)
4.66 (with Form 8-K dated as of 4.1 Sixty-Fifth Supplemental Indenture,dated as of September 1,2021.
September 30,2021)
4.67 (with Form 8-K dated as of 4.1 Sixty-Sixth Supplemental Indenture,dated as of March 1,2022.
March 8,2022)
4.68 (with Form 8-K dated as of 4.1 Sixty-Seventh Supplemental Indenture,dated as of March 1,2023.
March 29,2023)
4.69 (with Form 8-K dated as of 4.1 Sixty-Eighth Supplemental Indenture,dated as of June 1,2023.
June 8,2023)
4.70 333-82165 40) Indenture dated as of April 1,1998 between Avista Corporation and
The Bank of New York,as Successor Trustee.
4.71 (with Form 8-K dated as of 4.5 Supplemental Indenture No.1,dated as of December 1,2004to the
December 15,2004) Indenture dated as of April 1,1998 between Avista Corporation and
JPMorgan Chase Bank,N.A.
4.72 (with Form 8-K dated as of 4.1 Loan Agreement between City of Forsyth,Montana and Avista
December 15,2010) Corporation$66,700,000 City of Forsyth,Montana Pollution Control
Revenue Refunding Bonds(Avista Corporation Colstrip Project)Series
2010A dated as of December 1,2010.
4.73 W Waiver of redemption right under Section 8.01 of the Loan Agreement
between City of Forsyth,Montana and Avista Corporation$17,000,000
City of Forsyth,Montana Pollution Control Revenue Refunding Bonds
(Avista Corporation Colstrip Project)Series 2010A.
4.74 (with Form 8-K dated as of 4.3 Trust Indenture between City of Forsyth,and the Bank of New York
December 15,2010) Mellon Trust Company,N.A.,as Trustee,$66,700,000 City of
Forsyth,Montana Pollution Control Revenue Refunding Bonds
(Avista Corporation Colstrip Project)Series 2010A,dated as of
December 1,2010.
® AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed"'
Exhibit With Registration Number As Exhibit
4.75 (with Form 8-K dated as of 4.2 Loan Agreement between City of Forsyth,Montana and Avista
December 15,2010) Corporation$17,000,000 City of Forsyth,Montana Pollution Control
Revenue Refunding Bonds(Avista Corporation Colstrip Project)
Series 2010B dated as of December 1,2010.
4.76 W Waiver of redemption right under Section 8.01 of the Loan Agreement
between City of Forsyth,Montana and Avista Corporation$17,000,000
City of Forsyth,Montana Pollution Control Revenue Refunding Bonds
(Avista Corporation Colstrip Project)Series 2010B.
4.77 (with Form 8-K dated as of 4.4 Trust Indenture between City of Forsyth,and the Bank of New York
December 15,2010) Mellon Trust Company,N.A.,as Trustee,$17,000,000 City of
Forsyth,Montana Pollution Control Revenue Refunding Bonds
(Avista Corporation Colstrip Project)Series 2010B,dated as of
December 1,2010.
4.78 (with 2022 Form 10-K) 4.76 Description of the Registrant's Securities registered under Section 12
of the Securities Exchange Act of 1934.
10.1 (with Form 8-K dated as of 10.1 Credit Agreement,dated as of February 11,2011,among Avista
February 11,2011) Corporation,the Banks Party hereto,The Bank of Newyork Mellon,
Keybank National Association,and U.S.Bank National Association,
as Co-Documentation Agents,Wells Fargo Bank National Association
as Syndication Agent and an Issuing Bank,and Union Bank N.A.as
Administrative Agent and an Issuing Bank.
10.2 (with Form 8-K dated as 10.1 Second Amendmentto Credit Agreement,dated as of April 18,2014,
of April 18,2014) among Avista Corporation,Wells Fargo Bank,National Association,
as an Issuing Bank,Union Bank,N.A.as Administrative Agent and
an Issuing Bank,and the financial institutions identified hereof as
Continuing Lenders and Exiting Lender.
10.3 (with Form 8-K dated as of 10.1 Fifth Amendment to Credit Agreement,dated as of June 8,2023,
June 8,2023) among Avista Corporation,the lending financial institutions,U.S.Bank
National Corporation and Wells Fargo Bank National Association
as issuing banks,and MUFG Bank,LTD as Administrative Agent.
10.4 (with Form 8-K dated as of 10.2 Bond Delivery Agreement,dated as of April 18,2014,between
April 18,2014) Avista Corporation and Union Bank,N.A.
10.5 (with Form 8-K dated as of 10.2 Bond Delivery Agreement,dated as of June 8,2023,between
June 8,2023) Avista Corporation and Union Bank,N.A.
10.6 (with Form 8-K dated as of 10.1 First Amendment and Waiver Thereunder,dated as of
December 14,2011) December 14,2011,to the Credit Agreement dated as of
February 11,2011,among Avista Corporation,the Banks Party hereto,
Wells Fargo Bank National Association as an Issuing Bank,and Union
Bank N.A.as Administrative Agent and an Issuing Bank.
AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed 0)
Exhibit With Registration Number As Exhibit
10.7 (with 2002 Form 10-K) 10(b)-3 Priest Rapids Project Product Sales Contract executed by Public
Utility District No.2 of Grant County,Washington and Avista
Corporation dated December 12,2001(effective November 1,2005
forthe Priest Rapids Development and November 1,2009 forthe
Wanapum Development).
10.8 (with 2002 Form 10-K) 10(b)-4 Priest Rapids Project Reasonable Portion Power Sales Contract
executed by Public Utility District No.2 of Grant County,Washington
and Avista Corporation dated December 12,2001(effective
November 1,2005 forthe Priest Rapids Development and
November 1,2009forthe Wanapum Development).
10.9 (with 2002 Form 10-K) 10(b)-5 Additional Product Sales Agreement(Priest Rapids Project)
executed by Public Utility District No.2 of Grant County,Washington
and Avista Corporation dated December 12,2001(effective
November 1,2005 forthe Priest Rapids Development and
November 1,2009forthe Wanapum Development).
10.10 2-60728 5(g) Power Sales Contract(Wells Project)with Public Utility District No.1
of Douglas County,Washington,dated as of September 18,1963.*
10.11 2-60728 5(g)-1 Amendmentto Power Sales Contract(Wells Project)with Public
Utility District No.1 of Douglas County,Washington,dated as of
February 9,1965.*
10.12 2-60728 5(h) Reserved Share Power Sales Contract(Wells Project)with Public
Utility District No.1 of Douglas County,Washington,dated as of
September 18,1963.*
10.13 2-60728 5(h)-1 Amendment to Reserved Share Power Sales Contract(Wells Project)
with Public Utility District No.1 of Douglas County,Washington,dated
as of February 9,1965.*
10.14 (with September 30,1985 1 Settlement Agreement and Covenant Notto Sue executed by the
Form 10-Q) United States Department of Energy acting by and through the
Bonneville Power Administration and the Company,dated as of
September 17,1985,describing the settlement of Project 3 litigation.*
10.15 (with 1981 Form 10-K) 10(s)-7 Ownership and Operation Agreement for Colstrip Units No.3&4,
dated as of May 6,1981.*
10.16 (with 2019 Form 10-K) 10.14 Avista Corporation Executive Deferral Plan(2020 Component).13i(5)
10.17 (with 2019 Form 10-K) 10.15 Avista Corporation Supplemental Executive Retirement Plan
(Post-2004 Component,Amended in 2018).(3)(6)
10.18 (with 1992 Form 10-K) 10(t)-11 The Company's Unfunded Supplemental Executive Disability Plan.(3)*
10.19 (with 2007 Form 10-K) 10.34 Income Continuation Plan of the Company.(3)
10.20 (with 2018 Form 10-K) 10.21 Avista Corporation Long-Term Incentive Plan.131
M AVISTA

EXHIBIT INDEX (CONTINUED)
Previously Filed
Exhibit With Registration Number As Exhibit
10.21 (with 2010 Form 10-K) 10.23 Avista Corporation Performance Award Plan Summary.(3)
10.22 (with 2022 Form 10-K) 10.22 Avista Corporation Performance Award Agreement 2022.131
10.23 (with 2023 Form 10-K) 10.24 Avista Corporation Performance Award Agreement 2023.(3)
10.24 121 Avista Corporation Performance Award Agreement 2024.(3)
10.25 121 Avista Corporation Officer Incentive Plan.(3)
10.26 (with September 30,2019 10.1 Form of Change of Control Plan between the Company and
Form 10-G) its Executive Officers.")(')
10.27 12) Avista Corporation Non-Employee Director Compensation.
10.28 (with Form 8-K dated 10.1 Credit Agreement dated as of November 29,2022 among
November 30,2022) Avista Corporation and U.S.Bank,as Lender and Administrative
Agent,and MUFG Bank Ltd.as Lender.
10.29 (with Form 8-K dated 10.1 Credit Agreement dated as of December 14,2022 among Avista
December 19,2022) Corporation and Keybank National Association,as Lender and
Administrative Agent.
10.30 (with Form 8-K dated 10.2 First Amendment,dated as of December 15,2022,to the
December 19,2022) Credit Agreement dated as of November 29,2022 among Avista
Corporation and Keybank National Association,as Lender and
Administrative Agent.
10.31 (with Form 8-K dated 10.1 Continuing Letter of Credit Agreement dated as of December 29,2022,
January 4,2023) among Avista Corporation and MUFG Bank Ltd.,as Issuer.
10.32 (with Form 8-K dated 10.2 Incremental Commitment and Joinder Agreement,dated as of
January 4,2023) December 30,2022,among Avista Corporation and U.S.Bank
National Association,as Administrative Agent,and CoBank
as Incremental Lender.
19 12) Insider Trading Policy.
21 12) Subsidiaries of Registrant.
23 12) Consent of Independent Registered Public Accounting Firm.
31.1 12) Certification of Chief Executive Officer(Pursuantto 18 U.S.C.
Section 1350,as Adopted Pursuantto Section 302 of the
Sarbanes-Oxley Act of 2002).
31.2 12) Certification of Chief Financial Officer(Pursuantto 18 U.S.C.
Section 1350,as Adopted Pursuantto Section 302 of the
Sarbanes-Oxley Act of 2002).
32 )4) Certification of Corporate Officers(Pursuantto 18 U.S.C.
Section 1350,as Adopted Pursuantto Section 906 of the
Sarbanes-Oxley Act of 2002).
AVISTA ®i

EXHIBIT INDEX (CONTINUED)
Previously Filed(')
Exhibit With Registration Number As Exhibit
97 (with 2023 Form 10-K) 97 Avista Corporation Dodd-Frank Recovery Policy.
101.INS W Inline XBRL Instance Document—the instance document does
not appear in the Interactive Data File because its XBRLtags
are embedded within the Inline XBRL document.
101.SCH (2) Inline XBRLTaxonomy Extension Schema with embedded
linkbases Document.
104 (2) Cover page formatted as Inline XBRL and contained in Exhibit 101.
*Exhibit originally filed with the U.S.Securities and Exchange Commission in paper format and as such,a hyperlink is not available.
(1) Incorporated herein byreference.
(2) Filed herewith.
(3) Management contracts or compensatory plans filed as exhibits to this Form 10-K pursuant to Item 151b).
(4) Furnished herewith.
(5) Applies to Kevin J.Christie,Bryan A.Cox,Josh D.DiLuciano,Gregory C.Hasler,Latisha D.Hill,James M.Kensok,ScottJ.Kinney,Ryan L.Krasselt,Wayne 0.Manuel,
David J.Meyer,Heather L.Rosentrater,Jason R.Thackston,and Dennis P.Vermillion.
(6) Applies to Kevin J.Christie,Bryan A.Cox,Josh D.DiLuciano,Latisha D.Hill,James M.Kensok,Scott J.Kinney,Ryan L.Krasselt,David J.Meyer,Heather L.Rosentrater,
Jason R.Thackston,and Dennis P.Vermillion.
® AVISTA

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d)of the Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on
its behalf bythe undersigned,thereunto duly authorized.
AVISTA CORPORATION
February 25,2025 By/s/Heather L.Rosentrater
Date Heather L.Rosentrater
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934,this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Signature Title Date
/s/Heather L.Rosentrater Principal Executive Officer and Director February 25,2025
Heather L.Rosentrater
President and Chief Executive Officer
/s/Kevin J.Christie Principal Financial Officer February 25,2025
Kevin J.Christie
Senior Vice President,Chief Financial Officer,
Treasurer,and Regulatory Affairs Officer
/s/Ryan L.Krasselt Principal Accounting Officer February 25,2025
Ryan L.Krasselt
Vice President,Controller and Principal Accounting Officer
/s/Scott L.Morris Director February 25,2025
Scott L.Morris
Chairman of the Board
/s/Julie A.Bentz Director February 25,2025
Julie A.Bentz
/s/Donald C.Burke Director February 25,2025
Donald C.Burke
/s/Kevin B.Jacobsen Director February 25,2025
Kevin B.Jacobsen
/s/Rebecca A.Klein Director February 25,2025
Rebecca A.Klein
/s/Sena M.Kwawu Director February 25,2025
Sena M.Kwawu
/s/Scott H.Maw Director February 25,2025
Scott H.Maw
/s/Jeffry L.Philipps Director February 25,2025
Jeffry L.Philipps
/s/Heidi B.Stanley Director February 25,2025
Heidi B.Stanley
/s/Janet D.Widmann Director February 25,2025
Janet D.Widmann
AVISTA

EXHIBIT 21
AVISTA CORPORATION
SUBSIDIARIES OF REGISTRANT
State or Country
Subsidiary of Incorporation
Avista Capital,Inc. Washington
Avista Development,Inc. Washington
Avista Edge,Inc. Washington
Avista Northwest Resources,LLC Washington
Pentzer Corporation Washington
Pentzer Venture Holding II,Inc. Washington
Avista Capital II Delaware
Alaska Energy and Resources Company Alaska
Alaska Electric Light and Power Company Alaska
AJT Mining Properties,Inc. Alaska
Snettisham Electric Company Alaska
Salix,Inc. Washington
University Development Company,LLC Washington
® AVISTA

EXHIBIT 23
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement Nos.333-33790,333-179042 and 333-208986 on Form S-8 and in
Registration Statement No.333-264790 on Form S-3 of our reports dated February 25,2025,relating to the financial statements of Avista Corporation,
and the effectiveness of Avista Corporation's internal control over financial reporting,appearing in this Annual Report on Form 10-K of Avista
Corporation forthe year ended December31,2024.
/s/DELOITTE&TOUCHE LLP
Portland,Oregon
February 25,2025
AVISTA

EXHIBIT 31.1
CERTIFICATION
I,Heather L.Rosentrater,certifythat:
1. 1 have reviewed this report on Form 10-K of Avista Corporation;
2. Based on my knowledge,this report does not contain any untrue statement of a material fact or omitto state a material fact necessary to
make the statements made,in light of the circumstances under which such statements were made,not misleading with respectto the period
covered by this report;
3. Based on my knowledge,the financial statements,and other financial information included in this report,fairly present in all material
respects the financial condition,results of operations and cash flows of the registrant as of,and for,the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures(as defined
in Exchange Act Rules 13a-15(e)and 15d-15(e))and internal control over financial reporting(as defined in Exchange Act Rules 13a-15(f)and
15d-15(f))forthe registrant and have:
a. Designed such disclosure controls and procedures,or caused such disclosure controls and procedures to be designed under our
supervision,to ensure that material information relating to the registrant,including its consolidated subsidiaries,is made known to us by
others within those entities,particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting,or caused such internal control over financial reporting to be designed under our
supervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures,as of the end of the period covered by this report based on such evaluation;and
d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter(the registrant's fourth fiscal quarter in the case of an annual report)that has materially affected,or is reasonably
likely to materially affect,the registrant's internal control over financial reporting;and
5. The registrant's other certifying officer and I have disclosed,based on our most recent evaluation of internal control over financial reporting,
to the registrant's auditors and the audit committee of the registrant's board of directors(or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likelyto adversely affect the registrant's ability to record,process,summarize and report financial information;and
b. Any fraud,whether or not material,that involves management or other employees who have a significant role in the registrant's internal
control over financial reporting.
Date:February 25,2025 /s/Heather L.Rosentrater
Heather L.Rosentrater
President and Chief Executive Officer
(Principal Executive Officer)
® AVISTA

EXHIBIT 31.2
CERTIFICATION
I,Kevin J.Christie,certify that:
1. 1 have reviewed this report on Form 10-K of Avista Corporation;
2. Based on my knowledge,this report does not contain any untrue statement of a material factor omit to state a material fact necessary to
make the statements made,in light of the circumstances under which such statements were made,not misleading with respect to the period
covered by this report;
3. Based on my knowledge,the financial statements,and other financial information included in this report,fairly present in all material
respects the financial condition,results of operations and cash flows of the registrant as of,and for,the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures(as defined
in Exchange Act Rules 13a-15(e)and 15d-15(e))and internal control over financial reporting(as defined in Exchange Act Rules 13a-15(f)and
15d-15(f)►for the registrant and have:
a. Designed such disclosure controls and procedures,or caused such disclosure controls and procedures to be designed under our
supervision,to ensure that material information relating to the registrant,including its consolidated subsidiaries,is made known to us by
others within those entities,particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting,or caused such internal control over financial reporting to be designed under our
supervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures,as of the end of the period covered by this report based on such evaluation;and
d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter(the registrant's fourth fiscal quarter in the case of an annual report)that has materially affected,or is reasonably
likely to materially affect,the registrant's internal control over financial reporting;and
5. The registrant's other certifying officer and I have disclosed,based on our most recent evaluation of internal control over financial reporting,
to the registrant's auditors and the audit committee of the registrant's board of directors(or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,process,summarize and report financial information;and
b. Any fraud,whether or not material,that involves management or other employees who have a significant role in the registrant's internal
control over financial reporting.
Date:February 25,2025 /s/Kevin J.Christie
Kevin J.Christie
Senior Vice President,Chief Financial Officer,
Treasurer and Regulatory Affairs Officer
(Principal Financial Officer)
AVISTA

EXHIBIT 32
AVISTA CORPORATION
CERTIFICATION OF CORPORATE OFFICERS
(Furnished Pursuant to 18 U.S.C.Section 1350,as Adopted Pursuant to Section 906 of the Sarbanes-OxleyAct of2002)
Each of the undersigned,Heather L.Rosentrater,President and Chief Executive Officer of Avista Corporation(the"Company"),and Kevin J.Christie,
Senior Vice President and Chief Financial Officer of the Company,hereby certifies,pursuantto 18 U.S.C.Section 1350,as adopted pursuantto
Section 906 of the Sarbanes-Oxley Act of 2002,thatthe Company's Annual Report on Form 10-K for the year ended December 31,2024 fully complies
with the requirements of Section 13(a)of the Securities Exchange Act of 1934,as amended,and thatthe information contained therein fairly presents,
in all material respects,the financial condition and results of operations of the Company.
Date:February 25,2025 /s/Heather L.Rosentrater
Heather L.Rosentrater
President and Chief Executive Officer
/s/Kevin J.Christie
Kevin J.Christie
Senior Vice President,Chief Financial Officer,
Treasurer and Regulatory Affairs Officer
® AVISTA

SELECTED FINANCIAL DATA
Avista Corporation
As of and for the years ended December 31,
Dollars in millions,except per share data and ratios
2024 2023 2022 2021 2020 2014
FINANCIAL RESULTS
Operating revenues $ 1,938 $ 1,752 $ 1,710 $ 1,439 $ 1,322 $ 1,473
Operating expenses 1,632 1,494 1,520 1,211 1,089 1,217
Income from continuing operations 306 258 190 228 233 256
Interest expense 150 144 119 106 105 76
Income tax expense(benefit) 3 (34) (17) 12 7 72
Net income from continuing operations 180 171 155 147 129 120
Net income(loss)from discontinued operations 72
Net income 180 171 155 147 129 192
Net income attributable to Avista Corp.shareholders:
Net income from continuing operations
attributable to Avista Corp.shareholders $ 180 $ 171 $ 155 $ 147 $ 129 $ 120
Net income from discontinued operations
attributable to Avista Corp.shareholders $ - $ - $ - $ - $ - $ 72
Net income attributable to Avista Corp.shareholders $ 180 $ 171 $ 155 $ 147 $ 129 $ 192
Earnings per common share attributable
to Avista Corp.shareholders-diluted:
Earnings from continuing operations $ 2.29 $ 2.24 $ 2.12 $ 2.10 $ 1.90 $ 1.93
Earnings from discontinued operations 1.17
Total 2.29 2.24 2.12 2.10 1.90 3.10
Earnings per common share attributable
to Avista Corp.shareholders-basic: 2.29 2.24 2.13 2.11 1.91 3.12
COMMON STOCK STATISTICS
Dividends paid per common share $ 1.90 $ 1.84 $ 1.76 $ 1.69 $ 1.62 $ 1.27
Book value per common share $ 32.37 $ 31.83 $ 31.15 $ 30.14 $ 29.31 $ 23.84
Shares of common stock(thousands):
Outstanding atyear-end 80,039 78,075 74,946 71,498 69,239 62,243
Average-basic 78,725 76,396 72,989 69,951 67,962 61,632
Average-diluted 78,820 76,495 73,093 70,085 68,102 61,887
Return on average Avista Corp.stockholders'equity:
Total company 7.1% 7.1% 6.9% 7.1% 6.6% 13.7%
Utility only 7.9% 7.8% 5.9% 6.7% 7.1% 9.0%
Non-utility only 0.4% 1.6% 15.6% 10.0% 2.2% 54.4%
Common stock price:
High $ 39.99 $ 45.29 $ 46.90 $ 49.14 $ 53.00 $ 37.37
Low $ 31.91 $ 30.53 $ 35.72 $ 36.68 $ 32.09 $ 27.71
Year-end close $ 36.63 $ 35.74 $ 44.34 $ 42.49 $ 40.14 $ 35.35
AVISTA

SELECTED FINANCIAL DATA (continued)
Avista Corporation
As ofand forthe years ended December31,
Dollars in millions,except per share data and ratios
2024 2023 2022 2021 2020 2014
DEBT AND PREFERRED STOCK STATISTICS
Pretax interest coverage:
Including AFUDC/AFUCE 2.27(x) 1.99(x) 2.14(x) 2.54(x) 2.37(x) 4.52(x)
Excluding AFUDC/AFUCE 2.18(x) 1.92(x) 2.05(x) 2.43(x) 2.26(x) 4.35(x)
Embedded cost of long-term debt 4.92% 4.98% 4.87% 4.95% 5.06% 5.37%
FINANCIAL CONDITION
Total assets�1) $ 7,941 $ 7,702 $ 7,417 $ 6,854 $ 6,402 $ 4,701
Total net Avista Utilities property 5,811 5,542 5,295 5,078 4,843 3,428
Avista Utilities property capital expenditures
(excluding equity-related AFUDC) 510 485 443 436 397 324
Long-term debt(including current portion)(1) 2,614 2,530 2,295 2,268 2,132 1,487
Nonrecourse long-term debt of Spokane
Energy(including current portion) 1
Long-term debt to affiliated trusts 52 52 52 52 52 52
Avista Corporation stockholders'equity $ 2,591 $ 2,485 $ 2,335 $ 2,155 $ 2,030 $ 1,484
(1) The total assets and totallong-term debtfor2014 were adjusted in accordance with a change in accounting standards.
M AVISTA

SELECTED FINANCIAL DATA (continued)
Avista Corporation
As of and for the years ended December31,
Dollars in millions,except per share data and ratios
2n?- 2023 2022 2021 2020 2014
AVISTA UTILITIES
Electric Operations
Electric operating revenues:
Residential $ 473 $ 425 $ 415 $ 395 $ 378 $ 338
Commercial 369 344 339 326 304 300
Industrial 131 110 108 107 103 111
Public street and highway lighting 9 8 7 7 7 8
Total retail 982 887 869 835 792 757
Wholesale 225 250 179 90 77 138
Sales of fuel 13 (26) 84 64 29 84
Other 58 49 46 38 34 20
Decoupling 23 12 (32) (20) (4) -
Total electric operating revenues $ 1,301 $ 1,172 $ 1,146 $ 1,007 $ 928 $ 999
Electric energy sales(thousands of kWhs):
Residential 4,018 4,020 4,154 3,955 3,807 3,694
Commercial 3,166 3,160 3,201 3,158 2,995 3,189
Industrial 1,785 1,671 1,699 1,666 1,615 1,868
Public street and highway lighting 17 17 17 17 18 25
Total retail 8,986 8,868 9,071 8,796 8,435 8,776
Wholesale 3,740 3,468 3,094 2,461 2,680 3,686
Total electric energy sales 12,726 12,336 12,165 11,257 11,115 12,462
Retail electric customers(average per year):
Residential 371,076 366,450 361,564 356,387 350,669 324,188
Commercial 45,794 45,341 44,550 44,110 43,497 40,988
Industrial 1,175 1,188 1,193 1,205 1,277 1,385
Public street and highway lighting 739 690 681 666 639 531
Total retail electric customers 418,784 413,669 407,988 402,368 396,082 367,092
Retail electric customers(at year-end):
Residential 374,290 370,081 363,932 359,452 354,191 326,917
Commercial 45,778 44,452 44,806 44,303 43,968 41,264
Industrial 1,164 1,158 1,195 1,195 1,210 1,378
Public street and highway lighting 753 638 708 672 649 527
Total retail electric customers 421,985 416,329 410,641 405,622 400,018 370,086
Revenue per residential kWh(cents) 11.78 10.58 9.99 9.98 9.92 9.17
Use per residential customer(kWh) 10,827 10,971 11,487 11,098 10,857 11,394
Revenue per commercial kWh(cents) 11.66 10.87 10.58 10.33 10.15 9.41
Use per commercial customer(kWh) 69,141 69,687 71,805 71,589 68,847 77,814
Electric energy resources(millions of kWhs):
Hydro generation(from Company facilities) 3,168 3,024 3,930 3,598 3,651 4,143
Thermal generation(from Company facilities) 4,995 5,084 4,055 3,635 3,474 3,252
Purchased power 4,965 5,121 5,065 4,954 4,922 5,615
Power exchanges (14) (421) (385) (398) (446) (25)
Total power resources 13,114 12,808 12,665 11,789 11,601 12,985
Energy losses and company use (388) (472) (500) (532) (486) (523)
Total electric energy resources 12,726 12,336 12,165 11,257 11,115 12,462
AVISTA ®i

SELECTED FINANCIAL DATA (continued)
Avista Corporation
As ofand forthe years ended December31,
Dollars in millions,except per share data and ratios
2024 2023 2022 2021 2020 2014
AVISTA UTILITIES
Electric Operations(continued)
Retail Native Load at time of system peak
Winter 1,869 1,771 1,860 1,696 1,613 1,715
Summer 1,831 1,809 1,810 1,889 1,721 1,606
Cooling degree days(at Spokane,Washington):
Actual 903 811 758 946 546 631
30 year average 596 585 568 546 537 394
Actual as a percent of average 152% 139% 133% 173% 102% 160%
Natural Gas Operations
Natural gas operating revenues:
Residential $ 317 $ 326 $ 284 $ 221 $ 214 $ 203
Commercial 163 164 140 101 95 103
Industrial and interruptible 13 17 10 8 7 7
Total retail 493 507 434 330 316 313
Wholesale 61 55 133 113 105 228
Transportation 11 8 9 9 8 8
Other 29 8 8 8 7 8
Decoupling 12 (7) (2) 13 1 -
Totalnaturalgas operating revenues $ 606 $ 571 $ 582 $ 473 $ 436 $ 557
Natural gas therms delivered(millions of therms):
Residential 218 226 243 220 220 190
Commercial 138 139 147 130 128 117
Industrial and interruptible 25 25 20 21 20 11
Total retail 381 390 410 371 368 318
Wholesale 272 262 280 357 542 545
Transportation and other 179 165 172 173 181 163
Total natural gas therms delivered 831 817 862 901 1,091 1,026
Retail natural gas customers(average per year):
Residential 343,267 340,655 337,073 332,187 327,125 291,928
Commercial 37,353 37,193 36,753 36,448 36,164 34,047
Industrial and interruptible 237 237 232 232 265 301
Total retail natural gas customers 380,857 378,085 374,058 368,867 363,554 326,276
Retail natural gas customers(at year-end):
Residential 345,278 343,384 340,048 335,166 330,124 294,993
Commercial 37,404 37,383 37,136 36,622 36,483 34,267
Industrial and interruptible 238 235 236 237 229 304
Total retail natural gas customers 382,920 381,002 377,420 372,025 366,836 329,564
Revenue per residential therm(in dollars) $ 1.46 $ 1.44 $ 1.17 $ 1.01 $ 0.97 $ 1.07
Use per residential customer(therms) 635 662 719 662 672 651
Revenue per commercial therm(in dollars) $ 1.18 $ 1.18 $ 0.95 $ 0.77 $ 0.74 $ 0.88
Use per commercial customer(therms) 3,694 3,730 4,001 3,578 3,530 3,429
® AVISTA

SELECTED FINANCIAL DATA (continued)
Avista Corporation
As ofand forthe years ended December31,
Dollars in millions,except per share data and ratios
2024 2023 2022 2021 2020 2014
AVISTA UTILITIES
Natural Gas Operations(continued)
Heating degree days(at Spokane,Washington):
Actual 5,875 6,012 6,811 6,124 6,187 6,215
30 year average 6,569 6,557 6,560 6,596 6,651 6,748
Actual as a percent of average 89% 92% 104% 93% 93% 92%
ALASKA ELECTRIC LIGHT AND POWER COMPANY
Revenues $ 50 $ 48 $ 46 $ 45 $ 43 $ 22
Total assets $ 283 $ 270 $ 264 $ 265 $ 269 $ 263
ECOVA
Revenues $ — $ — $ — $ — $ — $ 88
OTHER
Revenues $ 1 $ 1 $ 1 $ 1 $ 2 $ 39
Total assets $ 194 $ 191 $ 187 $ 132 $ 110 $ 80
AVISTA

CORPORATE IN • •
Company Headquarters Exchange Listing Help Us Help the
Spokane,Washington Ticker Symbol:AVA Environment
New York Stock Exchange Managing costs is a primary goal for
Avista on the Internet Avista.You can help us meet this goal by
Financial results,stock quotes, news Certifications agreeing to receive future annual reports
releases, documents filed with the On May 2, 2024,the Chief Executive and proxy statements electronically.This
Securities and Exchange Commission Officer(CEO)of Avista Corp.filed service saves on the costs of printing
(SEC),and information on the a Section 303A.12(a)Annual CEO and mailing, provides timely delivery
company's products and services Certification with the New York Stock of information, and helps protect our
are available on Avista's website at Exchange.The CEO Certification attests environment by decreasing the need for
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by the company of NYSE's Corporate For more information, please visit:
Direct Stock Purchase and Governance Listing Standards. investor.avistacorp.com.
Dividend Reinvestment Plan Avista Corp. has included as exhibits to its
Computershare sponsors and administers annual report on Form 10-K for the year
the Computershare Investment Plan (CIP) 2024,filed with the SEC,certifications of
for Avista Corp.common stock.To invest, Avista's Chief Executive Officer and Chief
obtain forms,or for information about your Financial Officer regarding the quality of
holdings, please contact the transfer agent Avista's public disclosure in compliance
using the information below. with Section 302 of the Sarbanes-Oxley
Act of 2002.
Transfer Agent This annual report contains forward-
Computershare looking statements regarding the
P.O. Box 43006 company's current expectations.These
Providence, RI 02940-3078 statements are subject to a variety
800.642.7365 of risks and uncertainties that could
computershare.com/investor cause actual results to differ materially
from the expectations.These risks and
Investor Information uncertainties include, in addition to those
discussed herein, all factors discussed
A copy of the company's financial reports, in the company's annual report on Form
including the reports on Forms 10-K and 10-K for the year 2024. Our 2024 annual
10-Q filed with the SEC,will be provided report is provided for shareholders. It is
without charge upon request to: not intended for use in connection with
Avista Corp. any sale or purchase of or any solicitation
Investor Relations of others to buy or sell securities.
P.O. Box 3727 MSC-19 ©2025,Avista Corp.All rights reserved.
Spokane,WA 99220-3727
800.222.4931 The 2024 annual report is produced
through a partnership of Avista employees
Annual Meeting of and companies within Avista's service
Shareholders area. Design and Production: 116&West;
Photography: Dean Davis Photography
The company's annual meeting will and Craig Goodwin Photography;
be held at 8:00 a.m. PDT on Thursday, Printing: National Color Graphics.
May 8,2025.
This year's meeting will be held in a
virtual format only. AIIIF
In our commitment to green thinking,this year's annual report is printed on paper made from responsibly managed forests.

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509.489.0500 avistacorp.com