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    The Bull Case For Avista (AVA) Could Change Following New 100 MW Battery Storage Plan - Learn Why

    Simply Wall St·02/08/2026 02:12:18
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    • In January 2026, Avista announced it had selected a mix of new resources, including natural gas turbine upgrades, a 100 MW battery storage project, a Montana wind power purchase agreement and expanded demand response programs, to meet long-term reliability, customer demand and clean energy goals outlined in its 2025 Electric Integrated Resource Plan.
    • This portfolio-style approach, which combines generation, storage and customer-side demand response, highlights Avista’s effort to balance reliability with decarbonization across its service territory.
    • We’ll now examine how Avista’s planned 100 MW battery energy storage system could influence the company’s broader investment narrative.

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    What Is Avista's Investment Narrative?

    For Avista, you really have to believe in the long game of a regulated utility steadily investing in its grid while trying to keep earnings and dividends on a reasonably stable track. The new resource plan decisions, including the 100 MW battery project and Montana wind PPA, slot into that story by clarifying Avista’s capital spending and clean energy roadmap, but they are unlikely to shift the near term earnings guidance or the key catalysts around rate cases, regulatory decisions and quarterly results. The bigger swing factors still look like dividend sustainability given pressured free cash flow, modest expected earnings growth versus the wider market, and balance sheet flexibility as interest costs remain a constraint. The January announcement mostly reframes risk toward execution and regulatory recovery of these new projects rather than changing the investment thesis outright.

    However, one key risk here is how regulators ultimately treat the cost recovery on these new projects. Avista's shares are on the way up, but they could be overextended by 10%. Uncover the fair value now.

    Exploring Other Perspectives

    AVA 1-Year Stock Price Chart
    AVA 1-Year Stock Price Chart
    With just 2 fair value estimates from the Simply Wall St Community, opinions cluster between about US$37.83 and US$40.60, showing a relatively tight band of expectations. Set that against Avista’s expanding investment commitments from the IRP, and you can see why some community members may be focusing more on regulatory and financing risks than on short term price moves.

    Explore 2 other fair value estimates on Avista - why the stock might be worth 9% less than the current price!

    Build Your Own Avista Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.