Derivatives and Risk Management (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedges, Assets [Abstract]

Schedule of Energy Commodity Derivative Volumes

The following table presents the underlying energy commodity derivative volumes as of June 30, 2026 expected to be settled in each respective year (in thousands of MWhs and mmBTUs):


	Purchases								Sales
	Electric Derivatives				Gas Derivatives				Electric Derivatives				Gas Derivatives
Year	Physical (1) MWh		Financial (1) MWh		Physical (1) mmBTUs		Financial (1) mmBTUs		Physical (1) MWh		Financial (1) MWh		Physical (1) mmBTUs		Financial (1) mmBTUs
Remainder 2026		3		—		14,374		16,323		256		135		669		230
2027		—		—		18,050		22,008		—		—		1,393		—
2028		—		—		7,923		10,263		—		—		1,013		—
2029		—		—		1,125		2,250		—		—		—		—

As of June 30, 2026, there are no energy commodity derivative contracts outstanding with expected settlements after 2029.

The following table presents the underlying energy commodity derivative volumes as of December 31, 2025 expected to be settled in each respective year (in thousands of MWhs and mmBTUs):


	Purchases								Sales
	Electric Derivatives				Gas Derivatives				Electric Derivatives				Gas Derivatives
Year	Physical (1) MWh		Financial (1) MWh		Physical (1) mmBTUs		Financial (1) mmBTUs		Physical (1) MWh		Financial (1) MWh		Physical (1) mmBTUs		Financial (1) mmBTUs
2026		6		—		30,523		30,535		373		328		2,325		543
2027		—		—		14,558		14,443		—		—		1,393		—
2028		—		—		4,413		5,393		—		—		1,013		—

As of December 31, 2025, there were no energy commodity derivative contracts outstanding with expected settlements after 2028.

(1)

Physical transactions represent commodity derivative transactions in which Avista Corp. will take or make delivery of either electricity or natural gas; financial transactions represent financial derivative instruments that are settled in cash with no physical delivery of the underlying commodity, such as futures, swaps, or options contracts.

Summary of Foreign Currency Exchange Derivatives

The following table summarizes the foreign currency exchange derivatives outstanding as of June 30, 2026 and December 31, 2025 (dollars in millions):


	June 30,		December 31,
	2026		2025
Number of contracts		23		26
Notional amount (in United States dollars)	$	3	$	6
Notional amount (in Canadian dollars)		4		4

Schedules of Fair Values and Locations of Energy Commodity Derivative Instruments

The following table presents the fair values and locations of energy commodity derivative instruments recorded on the Condensed Consolidated Balance Sheet as of June 30, 2026 (dollars in millions):


	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted		Net Asset (Liability) on Balance Sheet
Other current assets	$	5	$	—		$	—	$	5
Other current liabilities		3		(36	)		11		(22	)
Other non-current liabilities and deferred credits		2		(16	)		1		(13	)
Total derivative instruments recorded on the balance sheet	$	10	$	(52	)	$	12	$	(30	)

The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 2025 (dollars in millions):


	Fair Value
Derivative and Balance Sheet Location	Gross Asset		Gross Liability			Collateral Netted		Net Asset (Liability) on Balance Sheet
Other current assets	$	8	$	—		$	—	$	8
Other current liabilities		7		(33	)		8		(18	)
Other non-current liabilities and deferred credits		2		(14	)		2		(10	)
Total derivative instruments recorded on the balance sheet	$	17	$	(47	)	$	10	$	(20	)

Schedule of Collateral Outstanding Related to Energy Commodity Derivative Instruments

The following table presents collateral outstanding related to its energy commodity derivative instruments as of June 30, 2026 and December 31, 2025 (dollars in millions):


	June 30,		December 31,
	2026		2025
Cash collateral posted	$	13	$	12
Letters of credit outstanding	$	6	$	14

In the event of changes in market prices or a downgrade in Avista Corp.'s credit ratings (including maintaining "investment grade" credit rating) or other established credit criteria, or, in some cases, if the counterparty has reasonable grounds to believe that there has been a material change in Avista Corp.'s creditworthiness, additional collateral may be required. Counterparties could request immediate payment or demand immediate and ongoing collateralization on derivative instruments in net liability positions.

In periods of price volatility, the level of exposure can change significantly. In addition, these contracts contain customary events of default (including cross-defaults to indebtedness and other obligations) and termination provisions. As a result, sudden and significant demands may be made against Avista Corp.'s credit facilities and cash. See Note 9 for further discussion of these credit facilities, including the immediate reimbursement obligation associated with outstanding letters of credit.

The following table presents the aggregate fair value of energy commodity derivative instruments with credit-risk-related contingent features in a liability position, and the amount of additional collateral (in cash or letters of credit) Avista Corp. could be required to post as of June 30, 2026 (dollars in millions):


	June 30,
	2026
Liabilities with credit-risk-related contingent features	$	25
Additional collateral to post		25