Avista Q2 Earnings Call Highlights

Key Points

• Wildfires near Spokane caused significant outages and infrastructure damage: Approximately 7,300 electric customers and 5,300 natural gas customers remained without service, while Avista worked to repair damaged transmission and distribution facilities. The full scope and timeline of distribution-system restoration remain uncertain.
• Avista is still evaluating wildfire-related costs and recovery options. Management said securitization was unlikely to be appropriate because the event does not appear large enough financially, while wildfire mitigation measures—including public safety power shutoffs and vegetation management—helped reduce ignition and safety risks.
• Large data-center discussions remain paused as Avista reviews tariffs and customer protections to ensure new loads benefit existing customers without undermining affordability or reliability. The company also expects a difficult Washington rate-case process, with hearings scheduled for September and a commission decision expected around mid-December.

Avista NYSE: AVA used its second-quarter 2026 earnings call to focus primarily on wildfires near Spokane, Washington, which have damaged parts of its electric transmission and distribution system, displaced residents and employees, and left thousands of customers without electric or natural gas service.

President and CEO Heather Rosentrater said multiple fires, fueled by dry and windy conditions, spread rapidly over the weekend and remain uncontained. She said the company’s facilities were not involved in starting any of the Spokane-area fires.

“Thousands of people, including many of our employees, have been displaced and many are still facing great uncertainty,” Rosentrater said. “Our hearts are with everyone who has had to evacuate their homes, everyone who has suffered loss, and all who continue working on the front lines.”

Outages and Infrastructure Damage

At the time of the call, about 7,300 of Avista’s 429,000 electric customers were without power, while approximately 5,300 of its 386,000 natural gas customers were without service. The remaining outages were related to active wildfire conditions, damaged infrastructure, evacuation restrictions and safety concerns, rather than the company’s public safety power shutoff event, Rosentrater said.

The company identified significant impacts to transmission and distribution facilities serving parts of West Spokane. Several transmission lines sustained wildfire damage, reducing system capacity. Avista repaired and energized one key transmission line on the morning of the call, which Rosentrater said significantly reduced the risk of additional customer outages caused by capacity constraints.

Avista has also repaired some other damaged lines, but several remain out of service. Crews have gained access to affected areas and begun repairs to the transmission system. Rosentrater said the transmission restoration work should take less time than repairs to the distribution system, where the full extent of the damage remains under assessment.

“With the distribution, there’s a significant structure loss,” Rosentrater said in response to a question about the expected timing for normalizing infrastructure. “Working through how we support the areas that remain, that’s what we’re trying to understand better right now and how long that will take. It’s still to be determined.”

Recovery, Insurance and Wildfire Mitigation

Senior Vice President, CFO, Treasurer and Regulatory Affairs Officer Kevin Christie said the company was still assessing the damage and had not determined whether it would seek a regulatory filing related to recovery of wildfire-related costs. He noted that many of the affected assets are long-lived, which should limit the effect of regulatory lag.

Christie said Washington legislation enacted two legislative sessions earlier permits the securitization of wildfire-related costs. However, he said the current event did not appear to approach the level of monetary impact that would warrant securitization.

“Securitization would be for, I would say, much more impactful events than what we’re experiencing now,” Christie said, while emphasizing that the fires remain significant for affected communities and employees.

Rosentrater said the company’s wildfire mitigation measures, including public safety power shutoffs, vegetation management, real-time situational awareness and operational changes, demonstrated value during the event. During inspections before restoring service to proactively de-energized feeders, crews found several trees that had fallen into one line, she said.

Rosentrater described public safety power shutoffs as a tool to help prevent wildfire ignitions, though she acknowledged the difficulty those outages can create for communities.

Data Center Discussions Remain Paused

Avista also addressed its ongoing review of potential large data center loads. Rosentrater said the company would not move forward with a new large data center customer unless it is confident the customer would make significant contributions supporting affordability for existing customers and would maintain or enhance reliability.

The company expects any large-load arrangement to provide a net benefit to current customers and include protections ensuring existing customers do not bear associated costs, she said. Avista has been considering potential tariff updates, hybrid tariffs, special contracts and possible state-level policy measures.

The company has paused activity under a memorandum of understanding related to a proposed 500-megawatt data center project, which Avista removed as upside from its capital plan. Rosentrater said the pause has allowed more time to review internal processes and engage with regulators, local partners and other stakeholders.

Christie said an upcoming Washington Utilities and Transportation Commission workshop should help inform the process. He said Avista has historically used special contracts for large-load customers and wants to provide clearer assurances that existing customers are protected and receive benefits.

Washington Rate Case Outlook

On Avista’s Washington rate case, Christie said a settlement appears likely to be difficult because parties hold fundamentally different views on the company’s proposed four-year rate plan. He said the company continues to support the four-year structure.

Christie said staff testimony was relatively close to Avista’s position in some areas, despite differences in methodology. He identified return levels proposed by public counsel and the lack of a proposed power-supply adjustment as major points of disagreement.

Avista planned to file rebuttal testimony on Aug. 7, followed by hearings expected Sept. 17-18. Christie said the company expects a commission order around the middle of December.

He added that, if an extreme event occurred during a four-year plan, Avista could refile and replace the third and fourth years of the plan, though he said the company does not believe the current wildfire event would require that action.

About Avista (NYSE:AVA)

Avista Corporation operates as an integrated energy company providing electric and natural gas delivery services to residential, commercial and industrial customers in the Pacific Northwest. Through its regulated utility operations, the company maintains and upgrades an extensive transmission and distribution network, delivering reliable energy to approximately 400,000 electric customers and 324,000 natural gas customers across Washington, Oregon and Idaho. In addition to its core utility business, Avista invests in owned generation assets, including hydroelectric, natural gas–fired, coal and wind facilities, to support system reliability and long-term supply planning.

Founded in 1889 as the Spokane and Inland Empire Water Power Company, the business adopted the Avista name in 1999 to reflect its growing energy portfolio and strategic focus on innovation.

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