Avista Corporation Reports $35 Million Net Income in Q2 2026, Up from $14 Million Last Year

Avista Corporation reported a net income of $35 million for the second quarter of 2026, a significant increase from $14 million in the same period last year. For the first half of 2026, net income rose to $127 million, compared to $93 million in the first half of 2025. The company's total operating revenues for the second quarter were $413 million, slightly up from $411 million in the prior year, while revenues for the first half decreased to $983 million from $1.028 billion. The increase in net income was primarily attributed to net investment gains in its non-utility businesses, contrasting with losses in the previous year, and the effects of general rate cases that positively impacted revenues.

In terms of operational metrics, Avista's utility revenues, excluding alternative revenue programs, were $398 million for the second quarter, down from $399 million in 2025. The company experienced a decrease in utility operating expenses, which totaled $359 million for the quarter, compared to $354 million a year earlier. The reduction in expenses was driven by lower resource costs and depreciation, reflecting the removal of the Colstrip generating facility from its portfolio. The company also reported a decrease in electric utility revenues due to a significant drop in sales volumes, particularly from industrial customers, which was partially offset by increased retail rates.

Avista's customer base showed growth, with the total number of electric customers rising to 428,919 from 423,664 year-over-year, and natural gas customers increasing to 385,880 from 383,447. The company is also actively pursuing strategic initiatives, including a memorandum of understanding with a data center developer for a potential load demand of 125 MW starting in 2029, with plans for expansion to 500 MW by 2032. However, negotiations have been paused to address community concerns regarding large load requests.

Looking ahead, Avista anticipates continued capital expenditures to enhance service reliability and replace aging infrastructure, with expected base annual capital expenditures of $615 million in 2026. The company is also evaluating the need for up to $100 million in additional short-term liquidity by the end of 2026, driven by increased regulatory deferrals and delayed recovery of costs. Avista's liquidity position remains strong, with $199 million available under its committed line of credit as of June 30, 2026. The company plans to issue additional long-term debt and common stock to support its financial needs in the coming year.