Avista Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Avista Corp. has submitted its 2023 10-K filing, detailing its financial performance and operations.</b>

AI Summary

AVISTA CORP (AVA) filed a Annual Report (10-K) with the SEC on February 21, 2024. Avista Corp. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The filing was made on February 21, 2024. The company's Central Index Key is 0000104918. Avista Corp. is classified under SIC code 4931 (Electric & Other Services Combined). The company's principal business address is 1411 E Mission Ave, Spokane, WA 99202.

Why It Matters

For investors and stakeholders tracking AVISTA CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Avista Corp.'s financial health, operational performance, and strategic positioning for the fiscal year 2023. Investors and analysts can use this document to assess the company's financial stability, regulatory environment, and future outlook in the utility sector.

Risk Assessment

Risk Level: medium — AVISTA CORP shows moderate risk based on this filing. The company operates in a regulated utility sector, which inherently involves medium risk due to potential changes in regulations, rate approvals, and environmental policies that can impact financial performance.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Avista Corp.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240221 — Filing Date (Filed as of date)
• 0000950170-24-017421 — Accession Number (SEC filing accession number)
• 182 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• AVISTA CORP (company) — Filer name
• 0000104918 (company) — Central Index Key
• 4931 (company) — Standard Industrial Classification
• WA (company) — State of incorporation
• 1411 E MISSION AVE (company) — Business address street
• SPOKANE (company) — Business address city
• 99202 (company) — Business address zip
• 5094890500 (company) — Business phone

FAQ

Industry Context

Avista Corp. operates within the regulated electric and natural gas utility industry, providing essential energy services to customers in its service territories.

Regulatory Implications

As a regulated utility, Avista Corp. is subject to oversight and rate-setting by state public utility commissions and federal agencies, impacting its revenue and operational decisions.

What Investors Should Do

1. Analyze Avista Corp.'s revenue streams and operating expenses for fiscal year 2023.
2. Examine any disclosed risk factors related to regulatory changes or environmental policies.
3. Compare key financial metrics from the 2023 10-K with previous filings to identify trends.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $4.0 million — eadband or ERM deadband - The first $4.0 million in annual power supply costs above or b

Filing Documents

• ava-20231231.htm (10-K) — 6543KB
• ava-ex10_24.htm (EX-10.24) — 157KB
• ava-ex10_25.htm (EX-10.25) — 218KB
• ava-ex10_26.htm (EX-10.26) — 36KB
• ava-ex10_29.htm (EX-10.29) — 21KB
• ava-ex21.htm (EX-21) — 12KB
• ava-ex23.htm (EX-23) — 4KB
• ava-ex31_1.htm (EX-31.1) — 16KB
• ava-ex31_2.htm (EX-31.2) — 18KB
• ava-ex32.htm (EX-32) — 8KB
• ava-ex97.htm (EX-97) — 44KB
• img132939905_0.jpg (GRAPHIC) — 16KB
• img132939905_1.jpg (GRAPHIC) — 16KB
• img132939905_2.jpg (GRAPHIC) — 36KB
• img133863426_0.jpg (GRAPHIC) — 24KB
• img133863426_1.jpg (GRAPHIC) — 25KB
• img133863426_2.jpg (GRAPHIC) — 8KB
• img133863426_3.jpg (GRAPHIC) — 22KB
• img133863426_4.jpg (GRAPHIC) — 40KB
• img134786947_0.jpg (GRAPHIC) — 8KB
• img150164383_0.jpg (GRAPHIC) — 39KB
• img150164383_1.jpg (GRAPHIC) — 27KB
• img150164383_2.jpg (GRAPHIC) — 66KB
• img150164383_3.jpg (GRAPHIC) — 26KB
• img150164383_4.jpg (GRAPHIC) — 169KB
• img150164383_5.jpg (GRAPHIC) — 120KB
• img150164383_6.jpg (GRAPHIC) — 103KB
• img150164383_7.jpg (GRAPHIC) — 105KB
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• img150164383_9.jpg (GRAPHIC) — 101KB
• img150164383_10.jpg (GRAPHIC) — 87KB
• img150164383_11.jpg (GRAPHIC) — 98KB
• 0000950170-24-017421.txt (&nbsp;) — 32103KB
• ava-20231231.xsd (EX-101.SCH) — 2934KB
• ava-20231231_htm.xml (XML) — 7707KB

, Items 10, 11,

Part III, Items 10, 11, 12, 13 and 14 AVISTA CORPORATION INDEX Item No. Page No. Acronyms and Terms iv

Forward-Looking Statements

Forward-Looking Statements 1 Available Information 5 Part I 1

Business

Business 6 Company Overview 6 Avista Utilities 8 General 8 Electric Operations 8 Electric Requirements 9 Electric Resources 9 Hydroelectric Licenses 12 Future Resource Needs 13 Natural Gas Operations 15 Utility Regulation 17 Federal Laws Related to Wholesale Competition 18 Regional Transmission Planning 18 Regional Energy Markets 18 Reliability Standards 18 Vulnerability to Cyberattack 19 Avista Utilities Operating Statistics 20 Alaska Electric Light and Power Company 22 Alaska Electric Light and Power Company Operating Statistics 24 Other Businesses 25 1A.

Risk Factors

Risk Factors 26 1B. Unresolved Staff Comments 35 1C. Cybersecurity 35 2

Properties

Properties 36 Avista Utilities 36 Alaska Electric Light and Power Company 37 3

Legal Proceedings

Legal Proceedings 38 4 Mine Safety Disclosures 38 Part II 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 6 Removed and Reserved 39 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Business Segments 40 Executive Level Summary 40 Regulatory Matters 41 Results of Operations - Overall 44 i AVISTA CORPORATION Non-GAAP Financial Measures 46 Results of Operations - Avista Utilities 46 Results of Operations - Alaska Electric Light and Power Company 53 Results of Operations - Other Businesses 53 Accounting Standards to Be Adopted in 2024 53 Critical Accounting Policies and Estimates 53 Liquidity and Capital Resources 55 Overall Liquidity 55 Review of Consolidated Cash Flow Statement 56 Capital Resources 57 Utility Capital Expenditures 59 Non-Regulated Investments and Capital Expenditures 60 Pension Plan 60 Credit Ratings 61 Dividends 61 Competition 61 Economic Conditions and Utility Load Growth 62 Environmental Issues and Other Contingencies 63 Colstrip 66 Enterprise Risk Management 67 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 74 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 74 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 75

Financial Statements

Financial Statements 77 Consolidated Statements of Income 77 Consolidated Statements of Comprehensive Income 78 Consolidated Balance Sheets 79 Consolidated Statements of Cash Flows 80 Consolidated Statements of Equity 82

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 83 Note 1. Summary of Significant Accounting Policies 83 Note 2. New Accounting Standards 89 Note 3. Balance Sheet Components 90 Note 4. Revenue 91 Note 5. Leases 95 Note 6. Variable Interest Entities 98 Note 7. Equity Investments 98 Note 8. Derivatives and Risk Management 99 Note 9. Jointly Owned Electric Facilities 103 Note 10. Property, Plant and Equipment 104 Note 11. Asset Retirement Obligations 104 Note 12. Pension Plans and Other Postretirement Benefit Plans 105 Note 13. Accounting for Income Taxes 110 ii AVISTA CORPORATION Note 14. Energy Purchase Contracts 111 Note 15. Short-Term Borrowings 112 Note 16. Long-Term Debt 114 Note 17. Long-Term Debt to Affiliated Trusts 115 Note 18. Fair Value 116 Note 19. Common Stock 120 Note 20. Accumulated Other Comprehensive Loss 121 Note 21. Earnings per Common Share 121 Note 22. Commitments and Contingencies 121 Note 23. Regulatory Matters 127 Note 24. Information by Business Segments 131 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure * 133 9A.

Controls and Procedures

Controls and Procedures 133 9B. Other Information 135 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 135 Part III 10. Directors, Executive Officers and Corporate Governance 136 11.

Executive Compensation

Executive Compensation 137 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 137 13. Certain Relationships and Related Transactions, and Director Independence 138 14. Principal Accounting Fees and Services 138 Part IV 15. Exhibits, Financial Statement Schedules 139 Exhibit Index 140

Signatures

Signatures 146 * = not an applicable item in the 2023 calendar year for Avista Corp. iii AVISTA CORPORATION 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 company to 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, b

View Full Filing

View this 10-K filing on SEC EDGAR