Avista Q2 2021 Earnings Report
Key Takeaways
Avista Corp. reported net income of $14.1 million, or $0.20 per diluted share, for the second quarter of 2021, compared to $17.5 million, or $0.26 per diluted share, for the second quarter of 2020. Avista Utilities' earnings were below expectations due to an increase in net power supply costs. The company is confirming its 2021 consolidated earnings guidance with a range of $1.96 to $2.16 per diluted share.
Net income was $14.1 million, or $0.20 per diluted share, for the second quarter of 2021.
Avista Utilities' earnings were below expectations due to higher net power supply costs.
AEL&P’s earnings met expectations for the second quarter and they are on track to meet the full year guidance.
Confirmed 2021 consolidated earnings guidance with a range of $1.96 to $2.16 per diluted share.
Avista
Avista
Forward Guidance
Avista Corp. is confirming its 2021 consolidated earnings guidance with a range of $1.96 to $2.16 per diluted share. We are lowering our 2022 consolidated earnings guidance by $0.15 per diluted share to a range of $2.03 to $2.23 per diluted share. We are confirming our 2023 consolidated earnings guidance with a range of $2.42 to $2.62 per diluted share.
Positive Outlook
- Timely and appropriate rate relief in our jurisdictions.
- AEL&P to contribute in the range of $0.08 to $0.11 per diluted share for 2021.
- Other businesses to contribute in the range of $0.05 to $0.08 per diluted share for 2021.
- Normal precipitation, temperatures, other operating conditions, and below normal hydroelectric generation.
- As we begin planning our next Washington general rate case to be filed early in the first quarter of 2022, which will be a multiyear rate plan as required under a new law, we will seek to include all capital investment (through the end of the rate plan period) in rates in order to earn our allowed return by 2023.
Challenges Ahead
- Increased regulatory lag due to increased capital expenditures and higher than expected depreciation expense.
- Increase in actual and forecasted net power supply costs.
- Current expectation for the ERM is a surcharge position within the 90 percent customer/10 percent Company sharing band, which is expected to decrease earnings by $0.08 per diluted share.
- Absorbing more than expected net power supply costs under the Power Cost Adjustment mechanism in Idaho.
- Below normal hydroelectric generation.