Regulatory decisions, increased operating costs impact Avista Corp. first-quarter earnings

Avista Corp. on Friday reported a loss in net income for the first quarter of 2020 compared with the prior year.

Avista reported first-quarter net income of $48.4 million, or 72 cents per share, compared with $115.8 million, or $1.76 per share, in the first quarter of 2019, according to a company news release.

The utility company attributed its first-quarter earnings loss to Washington regulatory decisions and increased operating costs related to higher labor, employee benefits and bad debt expenses.

The Washington state Utilities and Transportation Commission issued orders earlier this year that resolved Avista’s 2015 general rate case, which calls for refunding $8.4 million to customers, the cost of replacement power related to an unplanned outage at Colstrip in 2018 and its 2019 general rate cases.

Avista is anticipating additional losses at its nonutility businesses for the remainder of the year because of overall market declines and the effects of COVID-19, according to the release.

“The COVID-19 global pandemic is currently impacting all aspects of our business, as well as the global, national and local economies,” Avista said. “We provide critical services to our customers. Accordingly, it is paramount that we keep our employees who operate our business safe so that we can continue to provide reliable service.”

Avista indicated that although it hasn’t experienced “any significant issues to date,” there could be impact on the performance of suppliers, vendors or contractors.

Avista is also expecting a decrease in retail loads and payments from customers.

The company stated it expects to offset some of the negative effects of COVID-19 with cost-saving measures, and has filed petitions in each of its jurisdictions to “defer recognition of COVID-19 expenses.”