Execution ChallengesAVA’s less constructive regulatory environments, power supply cost volatility, weaker balance sheet, and O&M management, will remain challenges to execution.
Financial ChallengesEarnings per share for the first quarter fell short of analyst expectations, suggesting potential challenges in meeting financial targets.
Regulatory And Market RisksThe current 14% discount to peers is reasonable due to factors including OR/ID rate case risks, below-avg rate base/EPS CAGR, lower visibility into load acceleration thesis, pending/uncertain ERM modifications, and wildfire exposure.