Avista (AVA) risk factors, FY2025 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 operations31% rewritten
6. 06Lack of control over facilities under PPAs could impact power supply costsNew
7. 07Adverse 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)
8. 08A trend of increasing average temperatures and its effects could cause significant direct and indirect impacts on our operations and results of operations
9. 09Cyberattacks, ransomware, terrorism or other malicious acts could disrupt our businesses and have a negative impact on our results of operations and cash flows
10. 10Our technology may become obsolete, development of new technologies could create additional risk, or we may not have sufficient resources to manage our technology
11. 11We may be adversely affected by our inability to successfully implement certain technology projects
12. 12Problems with the transition, design or implementation of our new enterprise resource planning system could interfere with our business and operations, and adversely affect our financial conditionNew
13. 13The expanded adoption of artificial intelligence has the potential to increase exposure to cyberattacks and negatively impact business operationsNew
14. 14Our 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
15. 15Non-regulated investments in businesses outside of our core utilities operations may increase earnings volatility and can be difficult to sell due to their illiquid natureNew
16. 16External Mandates Risk Factors
17. 17Actions 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
18. 18We have contingent liabilities, including certain matters related to potential environmental liabilities, and cannot predict the outcome of these matters
19. 19Import tariffs could lead to increased prices on energy commodities and/or equipment and materials that are critical to our business71% rewritten
20. 20Weather (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
21. 21the cost of power supply
22. 22We rely on regular access to financial markets, but we cannot assure favorable or reasonable financing terms will be available when we need them
23. 23Performance 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 expense33% rewritten
24. 24Credit risk may be affected by industry concentration and geographic concentration
25. 25energy marketing and trading companies
26. 26Activist shareholder actions could have a negative impact on our business and operations
27. 27Energy commodity price changes affect our cash flows and results of operations
28. 28the potential non-performance by commodity counterparties, which could lead to replacement of the scheduled energy or natural gas at higher prices
29. 29Even 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
30. 30The 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
31. 31There 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
32. 32Multiple factors are influencing the ability to source and deliver adequate energy to meet customer demand, which could lead to power and gas market liquidity risksNew