Avista (AVA) risk factors, FY2024 10-K

Other

1. 01Regulators may not grant rates that provide timely or sufficient recovery of our costs or allow a reasonable rate of return for our shareholders
2. 02required to write off our regulatory assets, and be
3. 03Wildfires ignited, or allegedly ignited, by Avista Corp. equipment or facilities, could cause significant loss of life and property, thereby causing serious operational and financial harm
4. 04We are subject to various operational and event risks
5. 05Physical attacks on our assets could have a negative impact on our business and our results of operations
6. 06Adverse impacts to AEL&P could result from an extended outage of its hydroelectric generating resources or its inability to deliver energy, due to its lack of interconnectivity to other electrical grids and the cost of replacement power (diesel)
7. 07A trend of increasing average temperatures and its effects could cause significant direct and indirect impacts on our operations and results of operations
8. 08Cyberattacks, ransomware, terrorism or other malicious acts could disrupt our businesses and have a negative impact on our results of operations and cash flows
9. 09Our technology may become obsolete, development of new technologies could create additional risk, or we may not have sufficient resources to manage our technology
10. 10We may be adversely affected by our inability to successfully implement certain technology projects
11. 11Our strategic business plans, which may be affected by the foregoing, may change, including the entry into new businesses and/or the exit from existing businesses and/or the curtailment of our business development efforts where potential future business is uncertain
12. 12External Mandates Risk Factors
13. 13Actions or limitations to address concerns over long-term climate change, both globally and within our utilities' service areas, may affect our operations and financial performance
14. 14We have contingent liabilities, including certain matters related to potential environmental liabilities, and cannot predict the outcome of these matters
15. 15Import tariffs could lead to increased prices on energy commodities and/or equipment and materials that are critical to our business
16. 16restrictions could have a similar impact on our suppliers and certain customers, which could have a negative impact on our financial condition, results of operations and cash flows
17. 17Weather (temperatures, precipitation levels, wind patterns and storms) has a significant effect on our results of operations, financial condition and cash flows. These effects could increase as climate changes occur
18. 18the cost of power supply
19. 19Company in current expense and is partially deferred or shared with customers through regulatory mechanisms. However, these deferred costs require cash outflows from the time of power purchases until the costs are later recovered through retail rates
20. 20We rely on regular access to financial markets but we cannot assure favorable or reasonable financing terms will be available when we need them
21. 21Performance of the financial markets could also result in significant declines in the market values of assets held by our pension plan and/or a significant increase in the pension liability (which impacts the funded status of the plan) and could increase future funding obligations and pension expense
22. 22Credit risk may be affected by industry concentration and geographic concentration
23. 23energy marketing and trading companies
24. 24Activist shareholder actions could have a negative impact on our business and operations
25. 25Energy commodity price changes affect our cash flows and results of operations
26. 26the potential non-performance by commodity counterparties, which could lead to replacement of the scheduled energy or natural gas at higher prices
27. 27Even if our regulators ultimately allow the recovery of deferred power and natural gas costs, our operating cash flows can be negatively affected until these costs are recovered from customers
28. 28The hedges we enter into are reviewed for prudence by our various regulators and deferred costs (including those as a result of our hedging transactions) are subject to review for prudence and potential disallowance by regulators
29. 29There have been numerous changes in legislation, related administrative rulemakings, and Executive Orders, including periodic audits of compliance with such rules, which may adversely affect our operational and financial performance