Avista Makes Big Power Users Cover Their Own Costs

Operators buying large amounts of electricity in Washington should expect utilities to require new loads to pay for their own generation and transmission.

Updated on Nov. 4, 2026 in Corporate Finance

Avista Makes Big Power Users Cover Their Own Costs

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Should your local utility keep pausing new large data center projects?

Avista Corp. shares rose 5% after the utility reported third-quarter net income of $49 million on revenues of $421 million, up from $403 million a year earlier. The company slightly missed Wall Street expectations on its utility business, and its results also reflect a private investment gain.

Why it matters

Around a third of Avista's profit came from gains on ERock, Inc., a private investment that went public, held through the Energy Impact Partners fund in which Avista owns a 4.71% stake. Avista paused processing new large data center applications in September after protests and public pushback, and a city moratorium on data centers followed, a dynamic that matters for any Washington business tied to utility costs and service planning.

Avista reported $49 million in net income on $421 million in revenue, up from $403 million a year earlier, and its shares rose 5% on the release. The stock had shed nearly 11% in August and September before recovering roughly 15% since late September.

The players

Avista Corp.

A regulated Pacific Northwest electric and natural gas utility whose earnings depend on rate-approved utility operations and related investments.

Washington Utilities and Transportation Commission

The Washington state regulator that sets utility rates and will decide Avista's pending rate case.

Energy Impact Partners

An investment fund in which Avista holds a 4.71% stake, through which it holds an interest in ERock, Inc.

The details

Avista's earnings were lifted by gains from ERock, Inc., a private investment that went public, which accounted for about a third of profit. Operationally, the company paused new large data center applications that would require significant new generation or transmission investment, and it will not proceed with a new large data-center customer unless confident that customer will cover its own costs. The pause follows protests and a city moratorium in Spokane, and it respects the moratorium in place in the City of Spokane and Spokane County.

August 2026: Avista stock began shedding value, down nearly 11% over August and September.
September 2026: Avista paused processing new large data center applications.
Nov. 4, 2026: Avista reported third-quarter earnings and shares rose 5%.
Dec. 15, 2026: The Washington Utilities and Transportation Commission is scheduled to decide Avista's rate case.

Market Landscape

Avista's pause sits inside a local moratorium framework in Spokane and Spokane County that has constrained large data center load, which in turn shapes how the utility weighs new generation and transmission commitments. The utility's rate case before the Washington Utilities and Transportation Commission, due Dec. 15, will determine how those investments are recovered from ratepayers.

Operators in Washington who buy electricity or depend on utility service planning should watch how Avista allocates new generation and transmission costs. Businesses weighing large power loads should expect tighter scrutiny on cost recovery for new capacity, and should review the rate case outcome with their accountant or energy advisor.

The takeaway

Avista's pause shows that utilities are now tying large-load growth to whether the customer covers its own costs, a standard operators should expect to see more often. Track the Washington Utilities and Transportation Commission's Dec. 15 decision, since it will set how new utility investment is recovered.