Avista Corporation Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Avista Corporation Q1 2023 Earnings Summary

Consolidated Earnings: $0.73 per diluted share in Q1 2023, down from $0.99 per diluted share in Q1 2022. The decrease was primarily driven by higher net power supply costs under the Energy Recovery Mechanism (ERM) in Washington ($7.6M pre-tax expense vs. $1.9M in Q1 2022, an ~$0.10 per share impact).

2023 Guidance (Confirmed)

  • Consolidated: $2.27–$2.47 per share
  • Avista Utilities: $2.15–$2.31 per share (midpoint excludes ERM; ERM expected to contribute +$0.03 for the full year)
  • AEL&P: $0.08–$0.10 per share
  • Other businesses: $0.04–$0.06 per share

Quarterly Earnings Distribution (Avista Utilities, ex-ERM): 35% in Q1, 5% in Q2, 10% in Q3, 50% in Q4 (shift due to tax credit allocation and customer credits from prior rate cases rolling off in Q3 2023).

Key Operational & Strategic Updates

  • Rate cases filed: Multi-year plan in Idaho (Feb 2023); general rate case in Oregon (Mar 2023). Washington rate case strategy to be filed near end of current two-year plan for rates effective 2025.
  • Resource agreements: 100 MW wind PPA (30-year); two renewable natural gas contracts; Lancaster Generating Facility PPA extension. Over 70% of peak generating capability expected from non-emitting resources by 2026.
  • Requested ROE in Idaho: 10.25% (prior approved: 9.4%).

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Operator: Good day, and thank you for standing by. Welcome to the Avista Corporation First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stacy Wentz, Investor Relations Manager. Please go ahead. Stacey Wenz: Good morning. Welcome to Avista's first quarter 2023 earnings conference call. Our earnings and our first quarter 10-Q were released pre-market this morning, both are available on our website. Joining me this morning are Avista Corp. President and CEO, Dennis Vermillion; Executive Vice President, Treasurer and CFO, Mark Thies; Senior Vice President, External Affairs and Chief Customer Officer, Kevin Christie; and Vice President, Controller and Principal Accounting Officer, Ryan Krasselt. Today, we will make certain statements that are forward looking. These involve assumptions, risks and uncertainties, which are subject to change. For reference to the various factors, which could cause actual results to differ materially from those discussed in today's call, please refer to our 10-K for 2022 and 10-Q for the first quarter of 2023, which are available on our website. I'll begin by recapping the financial results presented in today's press release. Our consolidated earnings for the first quarter of 2023 were $0.73 per diluted share, compared to $0.99 for the first quarter o

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