374 added · 296 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
In May 2024, we, along with Cascade Natural Gas Corporation, Northwest Natural Gas Company, and a coalition of homebuilders, heating unit dealers and other parties, filed a lawsuit challenging the approved building codes on the grounds that they are preempted by EPCA.
This lawsuit remains pending. 68 AVISTA CORPORATION In November 2024, Washington voters approved Initiative 2066, which would prohibit state and local governments from restricting access to natural gas, prohibit the SBCC from discouraging or penalizing the use of natural gas, and prohibit the WUTC from approving any multi-year rate plan that requires or incentivizes natural gas companies to terminate or limit natural gas service.
Colstrip Tariff In 2019, the Washington State Legislature passed the CETA, which, among other things, requires costs associated with coal-fired generation facilities to be removed from rates no later than December 31, 2025.
In the filing, we requested an increase in annual Colstrip tariff revenues of $19 million – from $24 million in 2024 to $43 million in 2025, effective January 1, 2025.
In March 2022, we, along with the utilities NW Natural and Cascade Natural Gas, filed a lawsuit requesting judicial review of the CPP.
In October 2024, we filed a cost recovery tariff seeking to recover the costs associated with our ownership of Colstrip in 2025.
The AEL&P credit facility contains customary covenants and default provisions including a covenant which does not permit the ratio of “consolidated total debt at AEL&P” to “consolidated total capitalization at AEL&P,” (including the impact of the Snettisham obligation) to be greater than 67.5 percent at any time.
The rule is currently being challenged in the D.C. circuit, and that litigation remains pending. • Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category (ELG Rule) .
In December 2024, the WUTC allowed our filed tariff to go into effect, but set the rates as subject to refund.
The WUTC order approving the settlement of the 2022 general rate cases, required us to establish a tracker for our Colstrip-related costs, including operating and maintenance expense, depreciation and amortization expense, and a return on rate base.
Idaho General Rate Cases 2023 General Rate Cases In August 2023, the IPUC approved the multi-party settlement agreement designed to increase annual base electric revenues by $22 million, or 8.0 percent, effective in September 2023, and $4 million, or 1.4 percent, effective in September 2024.
The settlement was based on an ROE of 9.4 percent, with a common equity ratio of 50 percent, and an ROR of 7.19 percent. 2025 General Rate Cases In August 2025, the IPUC approved the all-party settlement agreement designed to increase annual base electric revenues by $20 million, or 6.3 percent, effective September 2025, and $15 million, or 4.5 percent, effective September 2026.
No longer disclosed
For example, in addition to limiting our ability to conduct transactions, if our credit ratings were lowered to below “investment grade” based on positions outstanding at December 31, 2024 (including contracts that are considered derivatives and those that are considered non-derivatives), we would potentially be required to post the following additional collateral (dollars in millions): December 31, 2024 Additional collateral taking into account contractual thresholds (1) $ 22 Additional collateral without contractual thresholds 33 (1) This amount is different from the amount disclosed in “Note 8 of the Notes to Consolidated Financial Statements” because, while this analysis includes contracts that are not considered derivatives in addition to the contracts considered in Note 8, this analysis also takes into account contractual threshold limits that are not considered in Note 8.
This guidance also adds specific disclosures related to equity securities subject to contractual sale restrictions, including (i) the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, (ii) the nature and remaining duration of the restrictions and (iii) the circumstances that could cause a lapse in the restrictions. 88 AVISTA CORPORATION The Company adopted the amendments effective January 1, 2024 , with no material impacts to the Company's financial statements resulting upon adoption.
ASU 2023-06 "Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative" In October 2023, the FASB issued ASU 2023-06, which incorporates a variety of SEC required disclosures into the FASB Accounting Standards Codification (ASC).
If the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K by June 30, 2027, the disclosure requirements will be removed from the Codification.
The Company completed its annual evaluation of goodwill for potential impairment as of November 30, 2024 and determined goodwill was not impaired at that time.
We seek to mitigate credit risk by: • transacting through clearinghouse exchanges, • entering into bilateral contracts that specify credit terms and protections against default, 70 AVISTA CORPORATION • applying credit limits and duration criteria to existing and prospective counterparties, • actively monitoring credit exposures, • asserting collateral rights with counterparties, and • carrying out transaction settlements timely and effectively.
Significant estimates include: • determining the market value of energy commodity derivative assets and liabilities, • pension and other postretirement benefit plan obligations, • contingent liabilities, • obligations under the CCA, • goodwill impairment testing, • fair value of equity investments, • recoverability of regulatory assets, and • unbilled revenues.
The purpose of this guidance is to clarify that a contractual restriction on the ability to sell an equity security is not considered part of the unit of account of the equity security, and therefore should not be considered when measuring the equity security's fair value.
Tariff rates also include certain pass-through costs to customers such as natural gas costs, retail revenue credits and other miscellaneous regulatory items that do not impact net income, but can cause total revenue to fluctuate significantly up or down compared to previous periods.
The commodity is sold and/or delivered to and consumed by the customer simultaneously, and the provisions of the relevant tariff determine the charges the Company may bill the customer, payment due date, and other pertinent rights and obligations of both parties.
The Company's estimate of unbilled revenue is based on: • the number of customers, • tariff rates, • meter reading dates, • actual native load for electricity, • actual throughput for natural gas, and • electric line losses and natural gas system losses. 91 AVISTA CORPORATION Any difference between actual and estimated revenue is recorded in the following month when the meter reading and customer billing occurs.
For entities subject to SEC's existing disclosure requirements, the effective date for each amendment will be the date on which the SEC removes the related disclosure from Regulation S-X or Regulation S-K, with early adoption permitted.