Avista signs renewable natural gas deal

Avista (NYSE:AVA) said Tuesday it signed an agreement with Pine Creek RNG to buy renewable natural gas to be produced from projects in Washington and Iowa; financial details were not disclosed.

The contract follows Avista's (AVA) request for proposal last October to secure RNG resources for its customers over the long term.

In Washington, Pine Creek plans to begin construction of a landfill and potato processing plant in Richland, which are expected to produce a combined 2.5M therms/year of RNG after anticipated completion by the end of this year.

In Iowa, a project at the Black Hawk County Landfill in Waterloo is expected to begin producing 2.6M therms/year beginning in 2024.

Avista (AVA) enjoys remarkably stable cash flows over time, which gives it a degree of stability that investors may find comforting, but the stock looks rather pricy compared to peers, Power Hedge writes in an analysis published recently on Seeking Alpha.