UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

AVISTA CORPORATION

(Exact name of Registrant as Specified in Its Charter)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 8 - Other Events

Item 8.01 Other Events.

On December 12, 2022, Avista Corporation (Avista Corp. or the Company) received an order from the Washington Utilities and Transportation Commission (the Commission) that approved the multi-party settlement agreement that was filed on June 28, 2022, relating to the Company's Washington 2022 general electric and natural gas rate cases, which were originally filed in January 2022.

The approved rates are designed to increase annual base electric revenues by $38.0 million (or 6.9 percent), effective in December 2022, and $12.5 million (or 2.1 percent), effective in December 2023. The agreement is also designed to increase annual base natural gas revenues by $7.5 million (or 6.5 percent), effective in December 2022, and $1.5 million (or 1.2 percent), effective in December 2023.

To mitigate the overall impact of the revenue increases on customers, concurrent with the effective date of this rate case, the base rate increases will be partially offset with a residual tax customer credit (described in the 2021 Annual Report on Form 10-K). The estimated benefits of this credit, $27.6 million for electric customers and $12.5 million for natural gas customers, will be incrementally returned over a two-year period from December 2022 to December 2024.

The Commission approved a rate of return on rate base of 7.03%, but the approved settlement did not include an explicit return on equity, cost of debt, or capital structure.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.