Avista seeks energy solutions to meet growing demand

Published 30/05/2025, 18:34
Avista seeks energy solutions to meet growing demand

SPOKANE, Wash. - Avista Corporation (NYSE:AVA), a $3.1 billion market cap energy provider in the Northwest with a notable 5.1% dividend yield, has issued a request for proposals (RFP) for additional energy and capacity resources to meet the needs of its customers in Washington and Idaho. According to InvestingPro data, the company has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. The utility company is looking to secure up to 415 megawatts (MW) of capacity for winter and 425 MW for summer, addressing both peak demand and the requirements of Washington’s Clean Energy Transformation Act (CETA).

This all-source RFP, announced today, is part of Avista’s strategy to provide carbon-neutral electricity by 2030 as mandated by the CETA. It invites potential partners to submit proposals for distributed energy resources, excluding standalone Renewable Energy Certificates (RECs). With annual revenues of $1.95 billion and a solid financial health score rated as ’FAIR’ by InvestingPro, the company appears well-positioned to execute this strategic initiative. Additionally, Avista is exploring demand response (DR) programs, aiming to acquire at least 5 MW of DR capacity starting in 2026 to enhance energy efficiency during peak usage times.

Scott Kinney, Avista’s Vice President of Energy Resources & Integrated Planning, emphasized the company’s commitment to delivering clean, affordable, and reliable energy solutions. "We’re proud of our long-standing history of providing reliable power, and these additional resources will help ensure we continue to do so for years to come," said Kinney.

Potential bidders must demonstrate their ability to meet Avista’s eligibility requirements and are encouraged to submit hybrid proposals that may include combinations of clean energy, capacity, and storage solutions. The RFP is open to current resource owners, developers, or those holding rights to suitable resources.

Responses to the RFP are due by June 30, 2025. Details regarding the RFP and bid instructions are available on Avista’s website.

Avista Utilities, a division of Avista Corp., serves energy and electricity to approximately 422,000 customers and natural gas to 383,000 customers. The company’s service territory spans 30,000 square miles across eastern Washington, northern Idaho, and parts of southern and eastern Oregon.

This move by Avista is based on a press release statement and reflects the company’s efforts to address growing energy demand and legislative requirements in a sustainable manner. Analysts maintain a positive outlook on the company, with InvestingPro reporting that two analysts have recently revised their earnings expectations upward for the upcoming period. For deeper insights into Avista’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Avista Corporation reported its first-quarter earnings for 2025, which showed an 8% year-over-year improvement in earnings but fell slightly short of analysts’ expectations. The company announced earnings per share (EPS) of $0.98, just below the forecasted $1, and revenue of $603 million, which did not meet the anticipated $629.18 million. Despite the revenue miss, Avista reaffirmed its 2025 earnings guidance, projecting EPS between $2.52 and $2.72. The company is planning significant capital expenditures of nearly $3 billion from 2025 to 2029 to support growth and infrastructure improvements. Avista is also exploring new opportunities with potential large load customers and enhancements to the regional grid infrastructure. On the regulatory front, the company reached an all-party settlement in its Oregon General Rate Cases, with new rates expected to take effect in September. Additionally, Avista settled litigation related to the Babb Road Fire, with insurance proceeds expected to cover the settlement costs. Analysts from firms such as Bank of America and Mizuho participated in the earnings call, inquiring about various aspects of Avista’s operations and future plans.

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