Regulatory Uncertainty: Avista operates in a highly regulated environment, and adverse regulatory decisions regarding rate-setting, cost recovery, or operational requirements could negatively impact its financial performance and ability to invest in infrastructure.

Climate and Weather Events: Increased frequency and intensity of extreme weather events, such as wildfires, droughts impacting hydroelectric generation, or severe storms, could cause significant damage to infrastructure, incur high repair costs, and disrupt service, leading to increased operational expenses and potential liabilities.

Cybersecurity Threats: As a critical infrastructure provider, Avista faces a constant threat of cyberattacks, which could disrupt operations, compromise sensitive data, damage reputation, or lead to substantial remediation costs and regulatory fines.