The Williams Capital Group lowered its rating on Avista Corp. to "sell" from "hold," citing valuation and an unfavorable recommendation for refunds by Washington Utilities and Transportation Commission staff.
The commission's staff recommended one-time refunds of approximately $36.0 million for electric customers and $7.1 million for natural gas customers to account for adjusting the 2015 rate case for faulty attrition allowances, analyst Christopher Ellinghaus said in a Sept. 16 investor note.
Avista has argued that attrition adjustment is not required. The most favorable scenario offered by the staff would reduce the refunds to about $13.2 million for electric and approximately $1.3 million for gas, the analyst added.
Along with the downgrade, Williams Capital Group raised its target price on the company to $42. Avista shares closed at $47.38 on Sept. 17.
