Avista Corp (AVA) 2023 Q4 法說會逐字稿

Hello, and thank you for standing by.

您好，感謝您的支持。

Welcome to the Avista Corporation's fourth-quarter 2023 earnings conference call.

歡迎參加 Avista Corporation 2023 年第四季財報電話會議。

(Operator Instructions)

（操作員說明）

Again.

再次。

I would now like to hand the conference over to Stacey Wenz, you may begin.

現在我想將會議交給史黛西·溫茲（Stacey Wenz），您可以開始了。

Good morning.

早安.

I'm pleased to welcome you all to Avista's Fourth Quarter 2023 earnings conference call.

我很高興歡迎大家參加 Avista 2023 年第四季財報電話會議。

Our earnings and 2023 form 10-K were released pre-market this morning.

我們的收益和 2023 年 10-K 表格已於今天上午盤前發布。

You can find both on our website.

您可以在我們的網站上找到兩者。

Joining me this morning are Avista Corp.'s CEO, Dennis Vermillion; President and COO, Heather Rosentrater; Senior Vice President, CFO, Treasurer, and Regulatory Affairs Officer, Kevin Christie; and Vice President, Controller, and Principal Accounting Officer, Ryan Krasselt.

今天早上和我一起來的是 Avista Corp. 的執行長 Dennis Vermillion；總裁兼營運長希瑟‧羅森特拉特 (Heather Rosentrater)；資深副總裁、財務長、財務主管兼監管事務官 Kevin Christie；副總裁、財務總監兼首席會計官 Ryan Krasselt。

Today, we will make certain statements that are forward-looking.

今天，我們將做出一些前瞻性的聲明。

These involve assumptions, risks, and uncertainties, which are subject to change.

這些涉及假設、風險和不確定性，可能會發生變化。

Various factors could cause actual results to differ materially from the expectations we discuss in today's call.

各種因素可能導致實際結果與我們在今天的電話會議中討論的預期有重大差異。

Please refer to our 10-K for 2023, which is available on our website for a full discussion of these risk factors.

請參閱我們的 2023 年 10-K，該文件可在我們的網站上獲取，以全面討論這些風險因素。

To begin, I'll recap the financial results presented in today's press release.

首先，我將回顧今天新聞稿中公佈的財務表現。

Our consolidated earnings for the fourth quarter of 2023 were $1.08 per diluted share compared to $1.05 for the fourth quarter of 2022.

我們 2023 年第四季的合併攤薄收益為每股 1.08 美元，而 2022 年第四季為 1.05 美元。

For the full year, consolidated earnings were $2.24 per diluted share in 2023 compared to $2.12 last year.

2023 年全年，稀釋後每股綜合收益為 2.24 美元，去年為 2.12 美元。

Now, I'm happy to turn the call over to Dennis.

現在，我很高興將電話轉給丹尼斯。

Well, thanks, Stacey, and good morning, everyone.

好吧，謝謝史黛西，大家早安。

I'd like to start by saying how proud I am of what we accomplished in 2023.

首先我想說，我對我們在 2023 年的成就感到非常自豪。

We really had a great year.

我們確實度過了美好的一年。

Our 2023 earnings at Avista Utilities show significant improvement from 2022 and reflect the benefits of improved cost recovery resulting from our general rate cases, as well as our success in managing our costs through the headwinds of increased interest rates and the impact of higher power supply costs.

我們Avista Utilities 的2023 年收益較2022 年顯著改善，反映了我們的一般費率案例帶來的成本回收改善的好處，以及我們成功地克服了利率上升的不利因素和電力供應成本上升的影響來管理成本。

Our improved earnings demonstrate the team's commitment to delivering results.

我們收入的提高證明了團隊對交付成果的承諾。

This teamwork is core to Avista's values, and there are many examples I could point to.

這種團隊合作是 Avista 價值觀的核心，我可以舉出許多例子。

To touch on one, in November, we faced the largest natural gas outage in our company's history, nearly 37,000 natural gas customers were impacted when a gas pipeline that transports gas to Avista's system was damaged by a third-party dig-in.

舉個例子，11 月份，我們面臨公司歷史上最大規模的天然氣中斷，向 Avista 系統輸送天然氣的天然氣管道因第三方挖掘而受損，近 37,000 名天然氣客戶受到影響。

Our people, along with mutual aid workers from eight utilities spanning eight states and contract employees, worked safely to restore service to every impacted customer in less than one week.

我們的員工與來自八個州的八家公用事業公司的互助人員和合約工一起，在不到一周的時間內安全地恢復了對每位受影響客戶的服務。

That we were able to achieve 100% restoration in such a short time frame is a testament to the determination of our company's work and to the determination and drive of our people and the people who came alongside of us to help.

我們能夠在如此短的時間內實現 100% 的恢復，這證明了我們公司工作的決心、我們的員工以及與我們一起提供幫助的人們的決心和動力。

I'm thankful for each one, and for the resilience and understanding of our customers.

我感謝每一位客戶，感謝客戶的堅韌與體諒。

We're thankful for the safety of all involved, as well as for the regulatory support from our commissions.

我們感謝所有相關人員的安全，以及我們委員會的監管支持。

We received approval to defer the costs of the incident for recovery to be addressed in a future regulatory proceeding.

我們已獲準推遲該事件的恢復費用，以便在未來的監管程序中解決。

And I wouldn't be a utility guy if I didn't take this opportunity to say this, please call 811 before you dig.

如果我不藉此機會說這句話，我就不會成為公用事業人員，請在挖掘之前撥打 811。

Although much of the winter season has been milder than normal, we experienced very cold temperatures in mid-January.

儘管冬季的大部分時間比正常情況溫和，但我們在一月中旬經歷了非常寒冷的氣溫。

At the same time, two operational issues impacted our system and the natural gas system throughout the Pacific Northwest.

同時，兩個營運問題影響了我們的系統和整個太平洋西北地區的天然氣系統。

Mechanical issues at both a third-party transmission pipeline and the natural gas storage facility we partially owned reduced the capacity of natural gas in the region.

第三方輸送管道和我們部分擁有的天然氣儲存設施的機械問題減少了該地區的天然氣產能。

These challenges, combined with the extreme cold, resulted in very high commodity prices.

這些挑戰，再加上極寒，導致大宗商品價格非常高。

Just as with the gas outage, I'm proud of the resilience of our customers and our operational decisions as we navigated these issues.

就像天然氣中斷一樣，我為我們的客戶在解決這些問題時的復原力和我們的營運決策感到自豪。

Although we had to purchase energy during this period of higher commodity prices, these costs will be included under various deferral mechanisms for power and gas costs.

儘管我們必須在商品價格上漲期間購買能源，但這些成本將包含在電力和天然氣成本的各種遞延機制中。

We continue to make progress on our clean energy goals on the natural gas front with the four renewable natural gas supply contracts we've executed so far.

透過迄今為止已執行的四份可再生天然氣供應合同，我們繼續在天然氣方面的清潔能源目標方面取得進展。

We expect to purchase $9.7 million [therms] of natural gas annually from renewable sources.

我們預計每年從再生能源購買價值 970 萬美元的天然氣。

We're also partnering with school districts in our service area to work toward fleet electrification.

我們也與服務區內的學區合作，致力於車隊電氣化。

And by the end of 2024, we expect to be working with nine school districts on this effort.

到 2024 年底，我們預計將與九個學區合作進行這項工作。

So whether it's improving the carbon profile of our natural gas operations or assisting our customers with electrification initiatives, we're building on our foundation of clean hydropower to work towards an even cleaner energy future for our region.

因此，無論是改善天然氣業務的碳排放，還是幫助客戶實施電氣化計劃，我們都在清潔水力發電的基礎上，努力為我們地區打造更清潔的能源未來。

In December, we published our 2023 corporate responsibility report.

12 月，我們發布了 2023 年企業責任報告。

The latest report includes progress updates regarding the Avista's aspirational goals for clean energy and workplace equity, inclusion, and diversity, including supplier diversity.

最新報告包括有關阿維斯塔清潔能源和工作場所公平、包容性和多樣性（包括供應商多樣性）的理想目標的最新進展。

And I really encourage you to check out the report if you haven't done it already.

如果您還沒有查看該報告，我真的鼓勵您查看一下。

Great report.

很棒的報告。

You can see recent examples that demonstrate our longstanding commitment to doing the right thing for our environment, our people, our customers, and communities along with our shareholders.

您可以看到最近的例子，這些例子證明了我們長期以來致力於為我們的環境、我們的員工、我們的客戶和社區以及我們的股東做正確的事情。

Earlier this month, the Board increased our annual dividend to $1.90 per share.

本月早些時候，董事會將我們的年度股息提高至每股 1.90 美元。

The Board has a longstanding commitment to maximize shareholder value, and we strive to target a competitive dividend for our shareholders.

董事會長期致力於股東價值最大化，我們努力為股東提供有競爭力的股利。

We are committed to providing affordable and reliable energy to our customers, and we make customer-focused investments in our infrastructure to improve reliability and maintain the safety of our operations.

我們致力於為客戶提供負擔得起且可靠的能源，並以客戶為中心對基礎設施進行投資，以提高可靠性並維護營運安全。

Periodically, this requires us to request adjustments to customer rates to reflect the actual costs of providing service.

這要求我們定期要求調整客戶費率，以反映提供服務的實際成本。

So in January, we filed two-year general rate cases in Washington, electric and gas.

因此，一月份，我們在華盛頓提交了為期兩年的電力和天然氣一般費率案件。

We've asked for increases in the first year of our plan of $77.1 million for electric and $17.3 million for natural gas.

我們已要求在計劃的第一年增加 7,710 萬美元的電力費用和 1,730 萬美元的天然氣費用。

Colstrip's exit from our generation portfolio will occur at the end of 2025 in compliance with the clean energy regulations in the state of Washington.

根據華盛頓州的清潔能源法規，Colstrip 將於 2025 年底退出我們的發電組合。

And the resulting change in the projected power supply costs when netted with the rule changes resulting in the elimination of Colstrip costs results in a total request of $57 million -- $53.7 million in the second year of our plan for electric.

由此產生的預計供電成本的變化，再加上導致消除 Colstrip 成本的規則變化，導致總需求為 5700 萬美元——我們電力計劃的第二年為 5370 萬美元。

On the natural gas side, we've asked for an increase of $4.6 million in the second year of our plan.

在天然氣方面，我們要求在計畫的第二年增加 460 萬美元。

Kevin will share more about our Washington filing in a moment.

凱文稍後將分享更多有關我們在華盛頓提交的文件的資訊。

And at this time, I'll hand the call over to Kevin.

這時候，我會把電話轉給凱文。

Thanks, Dennis, and good morning, everyone.

謝謝丹尼斯，大家早安。

We've executed meaningful steps in our strategy at Avista Utilities that show in our results.

我們在 Avista Utilities 的策略中執行了有意義的步驟，這在我們的結果中得到了體現。

Our core utility operations are strong and demonstrate significant earnings growth of over 35% in 2023 when compared to 2022.

我們的核心公用事業業務實力雄厚，與 2022 年相比，2023 年的獲利將顯著成長 35% 以上。

As Dennis mentioned, this increase at Avista Utilities is largely a result of improved cost recovery, successful cost management, and lower net power supply costs.

正如 Dennis 所提到的，Avista Utilities 的成長主要歸功於成本回收的改善、成本管理的成功以及淨供電成本的降低。

For the full year of 2023, the energy recovery mechanism was a pre-tax expense of $8.7 million compared to a pretax expense of $10.9 million in 2022.

2023 年全年，能源回收機制的稅前費用為 870 萬美元，而 2022 年的稅前費用為 1,090 萬美元。

AEL&P had a strong year as well.

AEL&P 也度過了強勁的一年。

Their results met the high end of our expectations for the year.

他們的業績達到了我們今年預期的上限。

Our consolidated results came in below our expectations.

我們的綜合業績低於我們的預期。

This was the result of losses in our other businesses driven by the periodic valuation of our investments.

這是由於我們的投資定期估值導致我們其他業務虧損的結果。

We continue to invest the necessary capital in order for us to provide safe and reliable service for our customers and to comply with clean energy regulations, and we are getting timely recovery of that investment.

我們繼續投資必要的資本，以便為客戶提供安全可靠的服務並遵守清潔能源法規，我們正在及時收回該投資。

This is in part due to the multi-year rate plan structure in Washington, which allows us to place capital and rate base prospectively, as well as filing rate cases on a timely basis.

這在一定程度上是由於華盛頓的多年利率計劃結構，它使我們能夠前瞻性地放置資本和利率基礎，並及時提交利率案件。

A significant portion of our Washington electric rate request, more than half in year one and nearly 70% in year two, is related to the reset of power supply costs, the removal of costs related to coal strip from customer rates, and recovery of costs we previously deferred, all of which we expect to fully recover.

我們華盛頓電價請求的很大一部分（第一年超過一半，第二年接近 70%）與重新設定供電成本、從客戶電價中刪除與煤帶相關的成本以及回收成本有關我們之前推遲了，我們預計所有這些都將完全恢復。

Our improved cost recovery in 2023 is partially the result of deferral mechanisms we've been successful in developing with our commissions, such as wildfire and insurance costs.

我們在 2023 年的成本回收率有所提高，部分原因是我們與委員會成功開發了延期機制，例如野火和保險費用。

We continue to focus upon additional regulatory mechanisms that improve cost recovery.

我們持續關注改善成本回收的額外監管機制。

To that end, in our Washington general rate case, we are requesting a modification to the ERM.

為此，在我們的華盛頓一般利率案例中，我們要求修改企業風險管理。

We propose a straight 95% customer, 5% company sharing of power supply costs.

我們建議直接95%的客戶，5%的公司分擔供電費用。

The ERM was introduced in 2002 and the energy markets have evolved since then.

ERM 於 2002 年推出，自那時以來，能源市場不斷發展。

We believe this is the appropriate time to refresh the mechanism to better reflect current market dynamics.

我們認為現在是刷新該機制以更好地反映當前市場動態的適當時機。

We are committed to investing the necessary capital in our utility infrastructure.

我們致力於在我們的公用事業基礎設施上投資必要的資本。

Our capital expenditures at Avista Utilities were $485 million in 2023.

2023 年，我們 Avista Utilities 的資本支出為 4.85 億美元。

So that we can continue to support customer growth and maintain our system to provide safe, reliable energy to our customers, our planned capital expenditures are $500 million in 2024, $525 million in 2025, and $575 million in 2026.

為了繼續支持客戶成長並維護我們的系統，為客戶提供安全、可靠的能源，我們計劃的資本支出分別為 2024 年 5 億美元、2025 年 5.25 億美元和 2026 年 5.75 億美元。

Our planned expenditures for 2026 have increased $25 million primarily due to the projects planned for wildfire mitigation.

我們 2026 年的計畫支出增加了 2,500 萬美元，主要是因為計畫的野火緩解計畫。

AEL&P's capital expenditures were $14 million in 2023, and $21 million of capital expenditures are expected in 2024.

AEL&P 2023 年的資本支出為 1,400 萬美元，預計 2024 年資本支出為 2,100 萬美元。

We also invested $17 million in other investments during 2023, and we expect to invest $22 million in 2024.

2023 年，我們也在其他投資中投資了 1,700 萬美元，預計 2024 年投資 2,200 萬美元。

On the liquidity front, as of December 31 we had $146 million of available liquidity under our committed line of credit and $30 million available under our letter of credit facility.

在流動性方面，截至 12 月 31 日，我們承諾的信用額度下有 1.46 億美元的可用流動性，信用證設施下有 3000 萬美元的可用流動性。

We issued $112 million of common stock and $250 million of long-term debt in 2023.

2023 年，我們發行了 1.12 億美元的普通股和 2.5 億美元的長期負債。

In 2024, we expect to issue approximately $85 million of long-term debt and $70 million of common stock to partially fund our capital spending for the year.

2024 年，我們預計將發行約 8,500 萬美元的長期債務和 7,000 萬美元的普通股，為我們當年的資本支出提供部分資金。

Improved cash from operations will help fund the remainder.

營運現金流的改善將有助於為剩餘資金提供資金。

We are initiating our guidance for 2024 with a consolidated range of $2.36 to $2.56 per diluted share.

我們正在啟動 2024 年的指導，合併範圍為稀釋後每股 2.36 美元至 2.56 美元。

We expect Avista Utilities to contribute within a range of $2.23 to $2.39 per diluted share in 2024.

我們預計 Avista Utilities 到 2024 年的攤薄每股貢獻將在 2.23 美元至 2.39 美元之間。

We expect the impact of the ERM on earnings to be negative during the first quarter of '24 in the 50% customer, 50% company sharing band.

我們預計，在 2024 年第一季度，在 50% 客戶、50% 公司共享範圍內，ERM 對收益的影響將為負面。

For the full year, we expect the ERM to be neutral to earnings as we anticipate a positive impact in the latter part of the year which will offset the early negative impact.

就全年而言，我們預期企業風險管理對獲利將呈現中性，因為我們預計今年下半年將產生正面影響，抵銷早期的負面影響。

Our guidance for Avista Utilities in 2024 reflects unrecovered structural costs which we estimate reduce the return on equity by 70 basis point of regulatory timing lag in 2024.

我們對 Avista Utilities 的 2024 年指引反映了未收回的結構性成本，我們估計這會使 2024 年監管時間落後的股本回報率降低 70 個基點。

This results in an expected return on equity at Avista Utilities of 8.1% in 2024.

這導致 Avista Utilities 2024 年的預期股本回報率為 8.1%。

In 2023, the distribution of earnings between quarters differed from our typical historical results due to the impact of customer tax credits being returned to customers, reducing customer bills, and income tax expense.

2023 年，由於客戶稅收抵免返還給客戶、減少客戶帳單和所得稅費用的影響，季度之間的收益分配與我們典型的歷史結果不同。

We expect the distribution of earnings between quarters in '24 to closely align with the results prior to 2023, with the first and fourth quarters representing the largest contributions to our annual earnings.

我們預計 24 年各季度之間的盈利分配將與 2023 年之前的業績密切相關，其中第一季和第四季度對我們年度盈利的貢獻最大。

We expect AEL&P to contribute in the range of $0.09 to $0.11 per diluted share in 2024 and we expect our other businesses to contribute in the range of $0.04 to $0.06 per diluted share in 2024.

我們預計 2024 年 AEL&P 的攤薄每股貢獻為 0.09 至 0.11 美元，我們預計其他業務 2024 年攤薄每股貢獻為 0.04 至 0.06 美元。

Assuming a constructive outcome in our 2024 Washington general rate case filings, we expect our earnings to grow over the long term in the range of 4% to 6% from a 2025 base year.

假設我們的 2024 年華盛頓一般利率案件備案取得建設性結果，我們預計我們的收入將在 2025 年基準年的基礎上長期增長 4% 至 6%。

Now, we'll be happy to answer questions.

現在，我們很樂意回答問題。

(Operator Instructions) Tanner James, Bank of America.

（操作員說明）Tanner James，美國銀行。

Hi.

你好。

Good morning.

早安.

Just a quick one sizing the ERM and the ongoing support that updated [bands] might provide.

只是快速評估 ERM 的規模以及更新的 [bands] 可能提供的持續支援。

What did the ERM impact have looked like for 2023 with the updated bands as requested in year 2024 [rate case]?

根據 2024 年要求的更新頻段，2023 年 ERM 的影響如何？[費率案例]？

And then, also regarding precision of your annual EPS guide.

然後，還涉及年度 EPS 指南的精度。

Would implementation of a less volatile IRM encourage you to tighten the typical EPS guidance with the implementation of a less volatile ERM encourage you to tighten the typical EPS guidance range you provide?

實施波動性較小的 IRM 是否會鼓勵您收緊您提供的典型 EPS 指導範圍？實施波動性較小的 ERM 是否會鼓勵您收緊典型的 EPS 指導範圍？

Yeah, thanks for the questions, Tanner.

是的，謝謝你的提問，坦納。

I don't have the exact numbers off the top of my head here, but obviously with an ERM that was negative or a power supply cost that was negative to the tune of $0.09, if we had a 95-5 mechanism in place, it would have shrunk that significantly.

我這裡沒有確切的數字，但顯然，如果 ERM 為負值，或者電源成本為負值 0.09 美元，如果我們有 95-5 機制，那麼會顯著縮小。

My off-the-cuff estimate would be in the range of a couple of cents.

我的即興估計在幾美分左右。

And then to your second question, we'll continue to evaluate as we move through the Washington case, how successful we are in modifying that mechanism and what comes out the other side before we can really say how we would narrow guidance on a go-forward basis, if we would narrow guidance on a go-forward basis.

然後，關於你的第二個問題，在我們真正說出我們將如何縮小指導範圍之前，我們將繼續評估華盛頓案件的進展，我們在修改該機制方面是否成功，以及另一方的結果如何——未來的基礎上，如果我們縮小未來的指導範圍。

Great, thanks.

萬分感謝。

And thank you for the disclosure of the wildfire-related increase to the CapEx.

感謝您披露與野火相關的資本支出增加。

For the cumulative T&D spend and guide, can you deconstruct what might be allocated towards typical maintenance versus wildfire resiliency on a go-forward basis, just trying to figure out the run rate system need for wildfire resiliency going forward?

對於累積的 T&D 支出和指南，您能否在未來的基礎上解構可能分配給典型維護與野火彈性的資源，只是試圖找出未來野火彈性所需的運行率系統？

Well, when we plan our capital spending, we have allocated the capital for 2024 on a basis based on need that we received from the business.

嗯，當我們計劃資本支出時，我們已經根據從企業收到的需求分配了 2024 年的資本。

And so those dollars are more well-known or understood by project and program.

因此，這些資金透過專案和計劃更加為人所知或理解。

As we look forward for 2025 and beyond, we have not yet allocated all the dollars among all the potential programs and projects.

當我們展望 2025 年及以後時，我們尚未將所有資金分配給所有潛在的計劃和項目。

Generally speaking, though, we would expect for capital for wildfire in 2025 to be about $35 million or so and closer to $60 million in 2026.

不過，一般來說，我們預計 2025 年應對野火的資金約為 3,500 萬美元左右，2026 年將接近 6,000 萬美元。

[Willie Granger, Mzuhu].

[威利·格蘭傑，姆祖胡]。

Hi.

你好。

Good morning, team.

早上好，團隊。

Good morning.

早安.

Thanks for taking my question.

感謝您提出我的問題。

Maybe just a question on the financing plans.

也許只是關於融資計劃的問題。

I see previously for 2024 you're guiding to about $60 million of equity and it's come up modestly to $70 million.

我之前看到您指導的 2024 年股本約為 6000 萬美元，目前已適度上升至 7000 萬美元。

I just kind of wanted to understand what's driving that.

我只是想了解是什麼推動了這一點。

I saw CapEx is staying the same across utilities.

我發現公用事業公司的資本支出保持不變。

But just any color on that would be super helpful.

但任何顏色都會非常有幫助。

Thanks again for the question.

再次感謝您的提問。

We are rebalancing debt and equity as we move forward with this case and as the regulators consider what we filed there.

隨著此案的進展以及監管機構考慮我們提交的文件，我們正在重新平衡債務和股本。

And so it's really just fine tuning the numbers at this point in time.

所以現在只是對數字進行微調。

As you pointed out, capital hasn't changed planning-wise for 2024.

正如您所指出的，資本對於 2024 年的規劃沒有改變。

We've had changes in expenditures.

我們的支出發生了變化。

A little bit higher run rate for winter, given power supply costs and what have you.

考慮到電力供應成本和你擁有的條件，冬季的運作率會高一些。

Understood.

明白了。

And then maybe just one on kind of how are you thinking about -- I know you said weather's been challenging from an ERM perspective so far in Q1, and in your guidance you expect that to kind of balance out towards the end of the year.

然後也許只是您如何思考——我知道您說過，從ERM 的角度來看，第一季度到目前為止，天氣一直充滿挑戰，在您的指導中，您預計這種情況會在年底前得到平衡。

Are you assuming that you just have more control over some of like the variables and the hydrology here or what's kind of the puts and takes to that, if you can unpack that a little bit for us?

您是否假設您對這裡的一些變數和水文學等有更多的控制權，或者對此有哪些投入和採取，如果您能為我們解開一點？

Sure.

當然。

We are building into our forecast the expectations of current hydro, which is below normal.

我們正在將當前水力發電的預期納入我們的預測中，該預期低於正常水平。

And at the same time, we believe we have the opportunity to optimize our resources on a go-forward basis.

同時，我們相信我們有機會不斷優化我們的資源。

And if we're able to optimize the resources like we plan, that would help offset the first quarter negative ERM.

如果我們能夠按照計劃優化資源，這將有助於抵消第一季的負 ERM。

Understood.

明白了。

Thank you very much, team.

非常感謝你們，團隊。

I'll leave it there.

我會把它留在那裡。

And I also want to add that, of course, that assumes that we have a reasonable melt in our hydro, in our snowpack, and that the flow comes over and we can optimize in our hydro facilities.

我還想補充一點，當然，假設我們的水力和積雪有合理的融化，並且水流恢復正常，我們可以優化我們的水力設施。

To the extent that we have a hydro outcome that looks similar to 2023, it'll be tougher to do that.

如果我們的水力發電結果看起來與 2023 年相似，那麼做到這一點將會更加困難。

Brian Russo, Sidoti.

布萊恩·羅素，西多蒂。

Hey.

嘿。

You mentioned the two buckets of regulatory lag that support the 2024 guidance.

您提到了支持 2024 年指導方針的兩類監管滯後。

Just remind me, what can be mitigated with new Washington rates in 2025?

請提醒我，2025 年華盛頓新利率可以緩解哪些問題？

Is it the 60 basis points of timing or is it the 70 basis points of structural?

是60個基點的時機還是70個基點的結構性？

Yeah.

是的。

The structural lag, Brian, can't change.

布萊恩，結構性落後是無法改變的。

It's in place because of rule or law.

它的存在是因為規則或法律。

So we're focused on the timing lag, that 60 basis points.

因此，我們關注的是時間滯後，即 60 個基點。

And with the constructive outcome in the Washington case, ongoing fair treatment on our deferral mechanisms and keeping in mind that we need to file rate cases or we'll likely file rate cases in Idaho and Oregon as we move forward, assuming we manage our costs, all of that would allow us to reduce that 60 -- the majority of that 60 basis points.

隨著華盛頓案件的建設性結果，對我們的延期機制的持續公平對待，並記住我們需要提交費率案件，否則我們可能會在前進的過程中在愛達荷州和俄勒岡州提交費率案件，假設我們管理我們的成本，所有這些都將使我們能夠減少 60 個基點——這 60 個基點中的大部分。

Okay.

好的。

Got it.

知道了。

So the way to look at your earnings trajectory in '25 versus 2024 is ROE improvement on a growing rate base, as simplistically as that.

因此，衡量 25 年與 2024 年獲利軌跡的方法是在成長率基礎上的 ROE 改善，就這麼簡單化。

Yeah.

是的。

And assuming we continue to manage our costs appropriately and we get that good regulatory treatment or constructive regulatory treatment.

假設我們繼續適當地管理我們的成本，並且我們得到良好的監管待遇或建設性的監管待遇。

Yep.

是的。

Okay.

好的。

Great.

偉大的。

And then, you know, in past calls, you've talked about longer term transmission and renewable investment opportunities.

然後，您知道，在過去的電話會議中，您談到了長期輸電和再生能源投資機會。

And then I see on slide 9, there's a bullet evaluating opportunities for expansion on the generation side, I think.

然後我在投影片 9 上看到，我認為有一個項目符號評估了發電方面的擴張機會。

Could you maybe elaborate on that?

能詳細說明一下嗎？

And that just kind of ties into -- it looks like a $575 million run rate CapEx in '26 to support a 5% rate base growth, right?

這與 26 年 5.75 億美元的營運資本支出有某種聯繫，以支持 5% 的基礎成長率，對嗎？

On a growing rate base.

在不斷增長的基礎上。

Is that kind of the optimal CapEx level to manage customer rates and maybe that balance of purchase power agreements versus stealing the ground that you have now?

這是管理客戶費率的最佳資本支出水準嗎？也許是購買力協議與竊取現有基礎之間的平衡？

Yeah.

是的。

The way I would look at it, Brian, is that the run rate that we've given you on capital is the capital we need to spend to continue to run the utility and balance customer rates to the extent that we have an opportunity to invest further in clean generation that may be incremental to our current capital plan.

布萊恩，我的看法是，我們給你的資本運行率是我們需要花費的資本，以繼續運行公用事業並平衡客戶費率，使我們有機會投資進一步發展清潔發電，這可能會增加我們當前的資本計劃。

And the way I've been thinking about it is we have more near-term opportunities to potentially invest in clean generation that may be incremental to our current capital plan.

我一直在考慮的方式是，我們有更多的近期機會來潛在地投資清潔發電，這可能會增加我們目前的資本計畫。

And the way I've been thinking about it is we have more near term opportunities to potentially invest in clean generation.

我一直在考慮的方式是，我們有更多的近期機會來潛在地投資清潔發電。

That's not in our rates right now through ownership.

這不屬於我們目前透過所有權的費率。

And there may be something out there that we could balance.

也許有一些東西我們可以平衡。

There may be something out there that we could purchase that would make sense both for customers and for the company as we move forward.

隨著我們的前進，我們可能會購買一些對客戶和公司都有意義的東西。

And then on the transmission side, there are really -- I think about it this way, there is the opportunity to enhance or build around our current system.

然後在傳輸方面，我確實有機會圍繞我們當前的系統進行增強或構建。

That's more of a near-term opportunity.

這更像是一個近期機會。

And when I do say near-term, I don't mean this year or next year, but nearer.

當我說近期時，我指的不是今年或明年，而是更近的時間。

And then when we think about transmission.

然後當我們考慮傳輸時。

Really, across the entire region and perhaps the country, there is a longer-term opportunity or really a requirement if we're going to deliver all this clean energy to all the locations that it needs to be delivered.

事實上，在整個地區，或許還有整個國家，如果我們要將所有這些清潔能源輸送到所有需要輸送的地方，就會有一個長期的機會，或者說確實是一個要求。

And that takes quite a bit more time.

這需要更多的時間。

Okay, great.

好的，太好了。

And then just to follow up on the ERM, I think it's been many years since you've actually tried or proposed adjustments to that.

然後，為了跟進 ERM，我認為自從您實際嘗試或提議對此進行調整以來已經很多年了。

When was the last time you did request an ERM adjustment?

您最後一次請求 ERM 調整是什麼時候？

And would you say that the adjustments you proposed puts you kind of on a more comparable level relative to your regional peers?

您是否認為您提出的調整使您與區域同行相比處於更具可比性的水平？

Yeah, good question.

是的，好問題。

Yeah, it was in the late 2000s, I think the last time we filed to adjust the ERM or we put in to adjust the ERM.

是的，那是在 2000 年代末，我想我們上次申請調整 ERM 或我們投入調整 ERM 時。

And when we're watching closely regional peers, there's been some change in power supply treatment in Oregon, and there's a filing in Washington that we're keeping a close eye on as well.

當我們密切關注地區同行時，俄勒岡州的電力供應處理發生了一些變化，華盛頓州也有一份文件，我們也密切關注。

And we think that if we're able to move forward with this change, it would position us at par with our peers.

我們認為，如果我們能夠推進這項變革，這將使我們與同行處於同等地位。

(Operator Instructions) [Alan Roach].

（操作員說明）[艾倫·羅奇]。

Good morning.

早安.

Appreciate the conference call.

感謝電話會議。

I'm curious as to the two wildfires that happened in the summer of 2023.

我很好奇2023年夏天發生的兩場山火。

Does that have a negative impact on your bottom line?

這會對您的利潤產生負面影響嗎？

Yeah, I mean, with regard to the wildfire, I think you're referring to the fire north of the Spokane area, and then there was one west of town.

是的，我的意思是，關於野火，我認為你指的是斯波坎地區北部的火災，然後在城鎮西部發生了一場火災。

With regard to both of those, our facilities were impacted by the fire on the West Plains and Medical Lake area.

就這兩方面而言，我們的設施受到了西部平原和醫療湖地區火災的影響。

We lost some of our infrastructure out there.

我們失去了一些基礎設施。

However, we were not involved in any way, shape, or form with the start of that fire.

然而，我們並沒有以任何方式、形式或形式參與那場火災的發生。

And then with the other fire that was north of the Spokane area, that happened and originated well away from all of our facilities.

然後，斯波坎地區以北的另一場火災發生並起源於遠離我們所有設施的地方。

And in fact, none of our infrastructure was damaged in that fire.

事實上，我們的基礎設施並沒有在那場火災中受損。

So really no impact at all to the bottom line.

所以其實對底線沒有任何影響。

We had to spend a little bit of money fixing all the stuff that was lost out on the West Plains there, but that was definitely manageable.

我們不得不花一點錢來修復西平原上失去的所有東西，但這絕對是可以控制的。

Got you.

明白你了。

That's good news.

那是好消息。

One other quick question.

另一個快速問題。

If the breachment of the Four Snake River dams happens to occur, how is that going to affect your bottom line?

如果四蛇河大壩潰決，會對您的利潤產生怎樣的影響？

Well, the Four Snake River dams are federal projects, and the power output from those facilities is managed by the Bonneville Power Administration.

嗯，四蛇河大壩是聯邦項目，這些設施的電力輸出由邦納維爾電力管理局管理。

We do not have any ownership stake or any off-take agreements for generation from those facilities.

我們沒有任何所有權股份或任何這些設施發電的承購協議。

So it really won't impact us at all from a power supply perspective.

所以從電源的角度來看，它真的不會對我們產生任​​何影響。

However, regionally, you'd be taking1,000 megawatts of supply out of the system.

然而，從區域來看，您將從系統中消耗 1,000 兆瓦的電力。

So until that's replaced in some manner, you could see an impact on commodity prices, on power prices in markets.

因此，在以某種方式取代它之前，您可能會看到對商品價格和市場電力價格的影響。

But no direct impact to our company from removal of those facilities.

但拆除這些設施對我們公司並沒有直接影響。

Thank you.

謝謝。

I'm showing no further questions in the queue.

我在隊列中沒有顯示任何其他問題。

I would now like to turn the call back over to Stacey for closing remarks.

我現在想將電話轉回給史黛西，讓其致閉幕詞。

Thank you all for joining us today and for your interest in Avista.

感謝大家今天加入我們以及對 Avista 的興趣。

Have a great day.

祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。