Avista Corp Sells Alaska Utility Unit for $485 Million Cash

Avista Corp, a Spokane-based utility, finalized the disposition of its Alaska Electric Light and Power Company subsidiary on May 4, 2026, according to the company's Form 8-K filing with the Securities and Exchange Commission.

The transaction affects approximately 17,000 customers in Juneau, Alaska, who receive electric service from the subsidiary. The sale involves assets valued at $485 million, including hydroelectric generation facilities with a combined capacity of 100 megawatts, per the filing's Item 2.01 details. Avista reported no ongoing operational involvement in Alaska post-closing.

Prior to the sale, Avista owned and operated the Alaska unit as part of its broader energy portfolio, serving residential and commercial customers in the region since 1893. The new state post-closing transfers full ownership and operational control to Hydro One Limited, a Toronto-based utility, effective immediately on May 4, 2026.

The consideration was entirely in cash, with no stock or contingent payments mentioned in the filing.

The completion triggers a requirement for Avista to file pro forma financial statements reflecting the disposition within 71 days, per SEC rules for material asset sales. Hydro One must integrate the assets into its reporting, potentially filing its own disclosures if the acquisition meets materiality thresholds under Canadian securities regulations.

The deal also activates standard post-closing adjustments, including any working capital true-ups within 90 days as outlined in the purchase agreement excerpted in Item 9.01 exhibits.

Avista previously announced plans for this divestiture in a December 2025 press release, citing a strategic focus on regulated operations in Washington, Idaho, and Oregon. The SEC filing follows a regulatory approval from the Regulatory Commission of Alaska on April 15, 2026.