About Avista Corporation
Avista enjoys quite a wide vista when it comes to its service area. This electric and natural gas utility primarily serves the Pacific Northwest through Avista Utilities, and some customers in Juneau, Alaska through electric utility AEL&P (Alaska Electric Light and Power). Through its subsidiaries, Avista also engages in sheet metal fabrication, venture fund investments, real estate and capital investments. The company has a net capability of more than 1,880 MW, of which over 55% come from hydroelectric and about 45% is thermal. It serves more than 600,000 electric and natural gas customers.
Avista's two reportable business segments are Avista Utilities and AEL&P.
Avista Utilities consists of the regulated utility operations in the Pacific Northwest that provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington, northern Idaho, and a few customers in Montana. It also manages natural gas distribution service in parts of northeastern and southwestern Oregon. Additionally, Avista engages in wholesale purchases and sales of electricity and natural gas to meet its load-serving obligation. Avista Utilities generates most of the company's revenue.
AEL&P provides electric services in Juneau, Alaska, where it is the sole utility provider due to its geographic isolation. It operates five hydroelectric generation facilities with some 103 MW of hydroelectric generation capacity.
Avista Utilities owns and operates six hydroelectric projects on the Spokane River and two hydroelectric projects on the Clark Fork River, and more than five thermal generating resources in Washington, Montana and Oregon. AEL&P provides electric services in Juneau, Alaska. The company's headquarter is located in Spokane, Washington.
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Avista Utilities supplied retail electric service to approximately 395,000 customers and retail natural gas service to approximately 365,000 customers across its service territory.
Avista Utilities has a diverse electric resource mix of company-owned and contracted hydroelectric, thermal and wind generation facilities, and other contracts for power purchases and exchanges.
Additionally, the company has exclusive rights to all the capacity of Palouse Wind project in Washington, as well as natural gas distribution services (purchased wholesale) to retail customers in parts of eastern Washington, northern Idaho, and northeastern and southwestern Oregon.
Total revenue for Avista has been declining since 2015. Net income, however, is going up except in 2017 when it reported a 16% dip in income.
Avista's revenue went down slightly by 4% to $1.3 billion due to decreases in utility and non-utility revenues.
Net income was $197.0 million for 2019, an increase from $136.4 million for 2018 due to increases in Utilities and Other income segments offset by decrease in AEL& P segment.
Cash at the end of the year was $9.9 million, a $4.8 million decrease from the prior year. Operations provided $398.2 million and financing activities added $42.5 million. Investing activities used $445.5 million for capital expenditures and property investments.
The company resource strategy includes additional clean energy resources and potential for existing resource retirements. This plan is subject to change in the 2021 IRP due to rulemaking in Washington State to implement the Clean Energy Transformation Act.
Avista's natural gas procurement strategy is to provide a reliable supply to its customers with some level of price certainty. Avista procure natural gas from various supply basins and over varying time periods. The resulting portfolio is a diversified mix of forward fixed price purchases, index and spot market purchases, and utilizing physical and financial derivative instruments. It also use natural gas storage to support high demand periods and to procure natural gas when prices may be lower. Securing prices throughout the year and even into subsequent years provides a level of price certainty and can mitigate price volatility to customers between years.
As opportunities arise, the company may dispose of investments and phase out operations that do not fit with its overall corporate strategy. However, Avista may invest incremental funds to protect its existing investments and invest in new businesses that the company believes fit with its overall corporate strategy.
Avista was founded in 1889 as the Washington Water Power Company. In 2018, the company unsuccessfully tried to merge with Hydro One Ltd, to create a combined $5.3 billion company. But plans for the merger were terminated when regulators in Washington state and Idaho denied the merger.
1411 E Mission Ave
Spokane, WA 99202-1902
Phone: 1 (509) 489-0500
Employer Type: Publicly Owned
Stock Symbol: AVA
Stock Exchange: , NYSE
VP and CIO: James M. Kensok
Chairman, President and CEO: Scott L. Morris
SVP and CFO: Mark T. Thies
Employees (This Location): 900
Employees (All Locations): 1,920
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