Avista Corporation (NYSE: AVA) files 4-year Washington rate plan

Rhea-AI Filing Summary

Avista Corporation has filed a multi-year rate plan with the Washington Utilities and Transportation Commission seeking higher base revenues for electric and natural gas service from 2027 through 2030. For 2027, the plan requests additional electric base revenue of $111 million, a 13.9 percent increase, and additional natural gas base revenue of $12 million, a 4.7 percent increase. Smaller step-ups follow each year through 2030 for both electric and gas customers.

The 2027 electric revenue request is driven mainly by higher electric resource costs of $46 million, capital additions of $29 million, and other items including employee benefits, insurance, regulatory amortizations and wildfire costs. Avista is also asking for an overall rate of return of 7.5 percent in 2027 with a 10.2 percent return on equity, rising to a 7.67 percent overall return and 10.5 percent return on equity in 2029. The plan proposes changes to baseline power supply cost calculations and several cost deferral mechanisms, and will be reviewed by the regulator for up to eleven months.

Insights

Regulated utilities analyst

Avista requests multi-year Washington rate increases and updated returns.

Avista Corporation has submitted a four-year Washington multi-year rate plan that, if approved, would raise base revenues for both electric and natural gas operations beginning in 2027. The largest step is in 2027, with additional electric base revenue of $111 million and natural gas base revenue of $12 million, followed by smaller annual increases through 2030. The filing also seeks an authorized overall rate of return of 7.5% in 2027 and 7.67% in 2029, with returns on equity of 10.2% and 10.5%, respectively.

The 2027 revenue need is driven by higher electric resource costs of $46 million, capital additions of $29 million for electric and $5 million for natural gas, plus employee benefits, insurance, regulatory amortizations, wildfire costs and other items. Avista also proposes changes to how baseline power supply costs are calculated and to the timing of cost recovery under the Energy Recovery Mechanism, along with expanded deferral mechanisms including for employee benefits. These elements can influence earnings stability within the multi-year period.

Washington law sets the multi-year rate plan framework and gives the WUTC up to eleven months to review and decide on the filing. The law also allows Avista, under certain conditions, to file a new plan for later years, which could help address factors the company lists as potential risks such as inflation, interest rate volatility, labor and benefits challenges, and escalating capital costs. Actual financial impact will depend on the WUTC’s final decision and any adjustments made during the review process.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 16, 2026

AVISTA CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Washington			001-03701	91-0462470
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1411 East Mission Avenue
Spokane, Washington				99202-2600
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 509 489-0500

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		AVA		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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 pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events

On January 16, 2026, Avista Corporation (Avista Corp. or the Company) filed a multi-year rate plan (MYRP) with the Washington Utilities and Transportation Commission (WUTC). The MYRP requests base rate relief over four years designed to produce the additional base revenues shown below (dollars in millions):

Rate Year	Rates Effective		Electric								Natural Gas
1	2027		$	111				13.9	%		$	12				4.7	%
2	2028			43				4.7	%			7				2.4	%
3	2029			34				3.5	%			6				2.1	%
4	2030			28				2.8	%			3				1.1	%

The Company is requesting an overall rate of return in 2027 of 7.5 percent, with a 48.5 common equity ratio and a 10.2 percent return on equity. The Company is requesting an increase to the overall rate of return in 2029 to 7.67 percent, with a 48.5 common equity ratio and 10.5 percent return on equity.

Key drivers of the revenue requirement in rate year one (2027) are outlined below (dollars in millions):

		Electric				Natural Gas
Electric resource costs		$	46			$	—
Capital additions			29				5
Employee benefits			7				1
Insurance			7				—
Regulatory amortizations			5				4
Wildfire			4				—
Other			13				2
Total		$	111			$	12

In the MYRP, the Company proposes certain changes to the calculation of authorized baseline power supply cost. These changes are designed to address the changing market dynamics which have led to significant volatility in actual power supply costs. The MYRP provides updates to the Company's baseline power supply cost for rate years one and two; as required by Washington law, baseline power supply costs for rate years 3 and 4 will be established in later filings and as such are not included in the additional revenue requirements for those years shown above. In addition, the Company proposes changes to the timing for recovery of costs deferred under the Energy Recovery Mechanism.

In addition to requesting re-approval of existing insurance, wildfire, and decoupling deferral accounts, the Company proposes an additional deferral mechanism for costs associated with employee benefits.

Washington law requires utilities to file MYRPs of a minimum of two and up to four years. The law allows utilities filing a rate plan of 3 or 4 years the option to file a new rate plan for the third year and fourth year. Under this provision, the Company has the opportunity to address the numerous unpredictable factors that could materially affect the Company’s financial position over a longer-term rate plan. These risks include, but are not limited to, inflation, interest rate volatility, labor and benefits challenges, escalating capital costs, and other unforeseen cost drivers. Please refer to the Company's 10-K for 2024 and 10-Q for the third quarter of 2025 for a full discussion of these factors.

The WUTC has up to eleven months to review the general rate case filings and issue a decision.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			AVISTA CORPORATION
Date:	January 16, 2026	By:	/s/ Kevin J. Christie
			Kevin J. Christie Senior Vice President, Chief Financial Officer, Treasurer and Regulatory Affairs Officer

FAQ

What did Avista Corporation (AVA) file with the Washington regulator?

Avista Corporation filed a multi-year rate plan (MYRP) with the Washington Utilities and Transportation Commission. The plan covers four rate years starting in 2027 and requests higher base revenues for both electric and natural gas customers, along with updates to returns and cost-recovery mechanisms.

How much additional base revenue is Avista seeking in 2027 for electric and gas?

For rate year one in 2027, Avista is requesting additional base revenues of $111 million for electric service, a 13.9 percent increase, and $12 million for natural gas service, a 4.7 percent increase.

What rate of return and return on equity is Avista requesting in the MYRP?

Avista is requesting an overall rate of return of 7.5 percent in 2027 with a 48.5 percent common equity ratio and a 10.2 percent return on equity. For 2029, the company is requesting an overall rate of return of 7.67 percent, maintaining the 48.5 percent common equity ratio and increasing the return on equity to 10.5 percent.

What are the main drivers of Avista’s 2027 revenue requirement increase?

The key 2027 drivers include higher electric resource costs of $46 million, electric and gas capital additions of $29 million and $5 million, employee benefits of $7 million for electric and $1 million for gas, insurance of $7 million for electric, regulatory amortizations of $5 million electric and $4 million gas, wildfire-related costs of $4 million for electric, plus other costs of $13 million electric and $2 million gas.

How does Avista’s multi-year rate plan address power supply cost volatility?

In the MYRP, Avista proposes changes to the calculation of authorized baseline power supply cost to address changing market dynamics and significant volatility in actual power supply costs. The plan updates the company’s baseline power supply cost for rate years one and two; baseline costs for rate years three and four will be established in later filings as required by Washington law.

What deferral and recovery mechanisms is Avista proposing in this filing?

Avista is requesting re-approval of existing insurance, wildfire and decoupling deferral accounts. The company also proposes an additional deferral mechanism for employee benefit costs and changes to the timing for recovery of costs deferred under the Energy Recovery Mechanism.

How long does the Washington Utilities and Transportation Commission have to decide on Avista’s rate plan?

The Washington Utilities and Transportation Commission has up to eleven months to review Avista’s general rate case filings under the multi-year rate plan and issue a decision.