Avista Corporation Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Avista Corporation Q3 2020 Earnings Summary

  • Consolidated Earnings: Q3 2020: $0.07 per diluted share (down from $0.08 in Q3 2019). YTD 2020: $1.04 per diluted share (down from $2.21 YTD 2019).
  • Avista Utilities Contribution: Q3 2020: $0.08 per diluted share (down from $0.09 in Q3 2019), impacted by higher bad debt expense and lower loads due to COVID-19, partially offset by lower power supply costs, rate relief in WA/OR, and customer growth.
  • Key COVID-19 Impacts: Incremental $8M bad debt expense YTD 2020 (expected additional $3.5M for full year vs. original forecast). Expect to defer most bad debt via regulatory orders in Q4 2020 (WA and OR). Electric loads down 2% vs. normal (commercial -6%, industrial -6%, residential +5%).
  • Other Metrics: Energy Recovery Mechanism (ERM) in WA: Q3 pretax benefit $0.3M (vs. $2.4M expense in Q3 2019); YTD pretax benefit ~$6M (vs. ~$1M in 2019). Over 90% of utility revenues covered by regulatory mechanisms (decoupling mitigates load changes).

Operational and Strategic Highlights

  • Completed majority of Washington smart meter project; customers gain timely usage info for winter heating season.
  • Opened Catalyst Building and Morris Center for Energy Innovation (Eco-district shared energy model) in September 2020.

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Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Avista Corporation Third Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to your speaker today, John Wilcox, Investor Relations Manager. Please go ahead, sir. John Wilcox: Good morning, everyone, and welcome to Avista's Third Quarter 2020 Earnings Conference Call. Our earnings were released premarket this morning and are available on our website. Joining me this morning are Avista Corp. President and CEO, Dennis Vermillion; Executive Vice President, CFO and Treasurer, Mark Thies; Senior Vice President, External Affairs and Chief Customer Officer, Kevin Christie; and Vice President, Controller and Principal Accounting Officer, Ryan Krasselt. Just want to let you know that some of us are remote due to the pandemic. I would like to remind everyone that some of the statements that will be made today are forward-looking statements that involve assumptions, risks and uncertainties, which are subject to change. For reference to the various factors that -- which could cause actual results to differ materially from those discussed in today's call, please refer to our 10-K for 2019 and 10-Q for the third quarter of 2020, which are available on our website. To begin this presentation, I would like to recap the financial results presented in today's press release. Our consolidated earnings for the third quarter of 2020 were $0.07 per diluted share com

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