In preparation for the upcoming financial year, Avista Corp. has announced its plans to issue $120 million in long-term debt and up to $80 million in common stock by 2025. This includes an initial issuance of $16 million in the first quarter. The company also revealed details about capital expenditures at both Avista Utilities and AEL&P, as well as earnings guidance for the same period. Furthermore, Avista Corp. highlighted potential risks that could affect their operations and profitability, ranging from regulatory decisions to climate change impacts. These forward-looking statements come with a cautionary note regarding uncertainties and factors that might cause actual results to vary significantly.
For 2025, Avista Utilities anticipates capital spending reaching approximately $525 million, while AEL&P expects expenditures around $15 million. Over the next five years, Avista Utilities projects nearly $3 billion in total capital outlays, reflecting an annual growth rate of 5 to 6 percent. Additionally, investments amounting to $10 million are planned for non-regulated opportunities and economic development initiatives within the company's service territory. Despite these ambitious plans, Avista remains vigilant against various risks such as tariff fluctuations and supply chain disruptions, which could escalate costs in subsequent periods.
The earnings outlook for 2025 forecasts consolidated earnings between $2.52 and $2.72 per diluted share. Contributions from Avista Utilities are estimated within a range of $2.43 to $2.61 per diluted share, incorporating an expected negative impact of $0.12 due to Energy Risk Management (ERM). Meanwhile, AEL&P is projected to contribute between $0.09 and $0.11 per diluted share. However, other businesses under Avista Corp. are not expected to generate any earnings during this timeframe.
Looking beyond immediate projections, long-term earnings growth is anticipated in the 4-6 percent range based on the forecasted 2025 baseline. Nevertheless, several external factors could influence outcomes, including environmental regulations, technological advancements, strategic shifts, and financial constraints. To address these challenges, Avista Corp. continues to implement risk mitigation strategies aimed at safeguarding its operational integrity and financial stability.
As part of its commitment to transparency, Avista Corp. will host a conference call on May 7, 2025, inviting financial analysts and investors to discuss these developments further. Participants can access the event via the company’s website, where registration details and webcast replay options are available. Serving over 800,000 customers across expansive regions in the Pacific Northwest and Alaska, Avista Corp. remains dedicated to delivering reliable energy solutions amidst evolving market dynamics and regulatory landscapes.
Beyond the numbers and strategic planning, it is crucial for stakeholders to recognize the comprehensive approach Avista Corp. takes in addressing uncertainties. By identifying and preparing for potential obstacles, the corporation aims to ensure sustained success and value creation for shareholders. Whether navigating through regulatory hurdles or adapting to climate-related changes, Avista Corp.'s proactive stance positions them favorably in an increasingly complex industry environment.