Whitney Mutalemwa

Whitney Mutalemwa of Wells Fargo Securities inquired about Avista's 2026 financing strategy, including the sequencing of equity issuance, flexibility with debt or hybrids, and the internal go/no-go threshold for incremental CapEx related to new large load customers, ensuring existing customer protection.

Answer

Kevin Christie, SVP, CFO, Treasurer, and Regulatory Affairs Officer, explained that the 2026 guidance incorporates the base plan, with additional capital investment opportunities requiring reassessment of debt and equity issuance. He noted equity would be issued through a periodic offering program. For the incremental CapEx, he stated that a significant deposit has been received, with an MOU expected within 90 days, and emphasized that collateral and security would be in place to protect existing customers if the project doesn't fully materialize.

Whitney Mutalemwa of Wells Fargo Securities inquired about Avista's 2026 financing strategy, considering factors like customer departure, ERM variability, and the Washington rate case. She also asked about flexibility with debt/hybrids, the go/no-go threshold for incremental CapEx for large load customers, and how existing customers would be protected.

Answer

Kevin Christie, SVP, CFO, Treasurer, and Regulatory Affairs Officer, explained that the base plan incorporates capital investment, with equity issuance via a periodic offering program, noting that significant additional investment opportunities would prompt reassessment. For large load CapEx, Mr. Christie highlighted a significant customer deposit and plans for an MOU, emphasizing that the new customer would contribute significantly to affordability, and collateral/security would protect existing customers.

Whitney Mutalemwa asked if IDACORP plans to move towards a standardized large load tariff rather than negotiating special contracts case by case, and what would drive such a decision.

Answer

Lisa Grow (President and CEO) and Brian Buckham (SVP, CFO, and Treasurer) confirmed that IDACORP currently has no plans for a standardized large load tariff. They explained that each customer has unique needs, necessitating tailored 'tariffs of one' to meet specific requirements.

Whitney Mutalemwa asked if IDACORP plans to transition from negotiating special contracts for large load arrangements, such as those tied to Tariff Schedule 33, to a more standardized large load tariff, and what factors would drive such a decision.

Answer

Lisa Grow, President and CEO, and Brian Buckham, SVP, CFO, and Treasurer, confirmed that IDACORP currently has no plans to move towards a standardized large load tariff. They emphasized that each customer has unique needs, leading to tailored 'tariffs of one' rather than a one-size-fits-all approach.

Whitney Mutalemwa asked about the rate base trajectory in relation to the investment plan, seeking clarification on the linkage and potential lumpiness in conversion. She also inquired about changes in the large load opportunity set since the last update, specifically how much is contracted versus in the pipeline.

Answer

CFO Charles Walworth explained that the current investment plan indicates a rate-based growth of about 9%, with additional opportunities being incremental. He clarified that nothing has changed regarding the large load panel, with active negotiations ongoing for 6-7 customers, and Customer X's agreement is nearing finalization for filing by mid-year.

Whitney Mutalemwa asked about the rate base trajectory versus the investment plan, seeking clarity on timing and recovery dynamics. She also inquired about changes in the large load opportunity set, specifically how much is contracted or committed versus still in the advanced pipeline stages.

Answer

CFO Charles Walworth explained that the current investment plan indicates a rate-based growth of about 9%, with additional incremental opportunities. He confirmed active negotiations with six to seven large load customers and that agreements for 'Customer X' are being finalized, with a large load tariff expected to be filed by mid-year.

Whitney Mutalemwa of Jefferies inquired about the monetization of Clean Fuel Production Credits (CFPC), asking why biogas credits hadn't been monetized yet and what the expected cadence would be for the RNG business.

Answer

CFO Leke Agiri clarified that the recent $22 million sale did include credits from the RNG business alongside ethanol. He explained the transaction structure is similar for both assets and that the company expects to monetize the remaining 2025 credits and has a pathway to place its 2026 credits as well.

Whitney Mutalemwa of Jefferies, on behalf of Dushyant Ailani, inquired about Gevo's expected cash cadence for 2025 and requested a timeline comparison for the new 30 million gallon per year alcohol-to-jet (ATJ-30) project versus the existing ATJ-60 project.

Answer

CEO Patrick Gruber clarified that the previously planned $40 million in CapEx for ATJ-60 would be reduced for the year as the company awaits clarity on the Department of Energy (DOE) loan timeline. He noted that resources are shifting to the ATJ-30 project and that a planned refinancing of the RNG plant will also free up cash. Gruber stated the timeline for the ATJ-30 project is expected to be the "same or sooner" than ATJ-60, as it leverages existing engineering in a smaller, modular, and more cost-effective format.