Avista Corporation · NYSE:AVA
Avista — Investor Presentation (December 2014)
24 slides from Avista's investor presentation, Dec 1, 2014
Slide 1: 125 Years of Service
125 YEARS OF SERVICE NYSE: AVA www.avistacorp.com
Slide 2: Disclaimer
Disclaimer All forward-looking statements are Avista management's present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For more information on such f
Slide 3: A core utility business with growth platforms
Acore utility business with growth platforms Avista Utilities _ = Regulated electric and natural gas operations = Serves customers in Washington, Idaho and Oregon = Contributes over 90% of earnings Alaska Electric Light & Power Company (AEL&P) = Primary subsidiary of Alaska Energy and Resources Comp
Slide 4: Key drivers to building value
Key drivers to building value Projecting earnings growth of 4% to 5% Avista Utilities Alaska Electric Light & Power Company (AEL&P) Other Businesses 5% to 6% rate base growth through investmentin our utility system Load growth ~1% Attractive dividend growth of 4% to 5% Acquisition effective July 1,
Slide 5: 2014 strategic changes reshaping Avista
2014 strategic changes reshaping Avista = Ecova disposition = Alaska Electric Light and Power Company (AEL&P) acquisition
Slide 6: Ecova — monetizing the value for shareholders
Ecova — monetizing the value for shareholders Sold to Cofely USA, Inc., a sub. of GDF Suez, on June 30, 2014 Founded in 1995 Initially four employees, increased to over 1,500 $177 million in revenues (2013) $335 million sales price a Net proceeds approximately $133 million* ($219 million less $86 mi
Slide 7: AEL&P acquisition — one gateway to new growth
AEL&P acquisition — one gateway to new growth = Transaction closed July 1, 2014 = Issued 4.5 million new shares of common stock = Purchase price $170 million, less the assumption of debt and other closing adjustments = Recapitalizing to authorized capital structure a In Sept. AEL&P issued $75 millio
Slide 8: Avista Utilities
Avista Utilities ee
Slide 9: Strong foundation and deep dedication
Strong foundation and deep dedication Providing safe and reliable service for over 125 years = Serves electric and natural gas customers a 30,000 square mile service territory a Service area population 1.5 million WASHINGION = 365,000 electric customers i - 325,000 natural gas customers MONTANA. = S
Slide 10: Well positioned with a clean mix of generation resources
Well positioned with a clean mix of generation resources Founded on clean, renewable hydropower = Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs = Long resources until 2020 a Planto addtwo 83 MW single-cycle CTs by the beginning of 2020 andthe end of
Slide 11: Replacing and upgrading facilities and technology
"1 Replacing and upgrading facilities and technology 5% to 6% rate base growth Avista Uti ($ millions) ies Capital Expenditures* = Environmental ™ Generation aGas =| Other ™ Growth Enterprise Technology aT&D 2013 2014 2015 2016 Actual Projected * Other includes Facilities and Fleet ** Excludes plann
Slide 12: Driving effective regulatory outcomes
Driving effective regulatory outcomes Washington bevee| = Aug. 18,2014 reached an all- party settlement agreement = Designedto increase electric base revenues by $7.0 million and natural gas base revenues by $8.5 million = Fulldecouplingmechanism for electric and natural gas = Noagreementon cost of
Slide 13: Alaska Electric Light & Power Company (AEL&P)
Alaska Electric Light & Power Company (AEL&P) ee
Slide 14: Expanding and diversifying energy assets
Expanding and diversifying energy assets = Alaska Electric Light and Power Company (AEL&P) is the primary subsidiary of Alaska Energy and Resources Company (AERC) = AEL&P is the oldest regulated electric utility in Alaska, founded in 1893 Total Revenues $42.6 million Total Rate Base $109 million = A
Slide 15: Opportunities to drive growth in Alaska
Opportunities to drive growth in Alaska Development Opportunities & Expanding Energy Products & Services = Identify new infrastructure = Assess value for offering energy services in Juneau (AEL&P) o DSM o SmartGrid 15 Seek & Engage = Evaluate opportunities to acquire additional utility customers or
Slide 16: Salix — Custom LNG Solutions
SALIX Custom LNG Solutions ee
Slide 17: Liquefied Natural Gas (LNG) — platform for growth
Liquefied Natural Gas (LNG) —- platform for growth Opportunities for displacing diesel fuel Generation — Diesel Substitution Marine Bunkering (fueling) Rail Fueling Plum Energy — Small LNG Project Investments
Slide 18: Financial Update
Financial Update ee
Slide 19: Steady earnings growth
Steady earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation 03 03 Business Segments yrp 2014 | yt 2013 Avista Utilities $1.38 $1.27 AELEP $0.01 Other so.0s* | $0.04) Continuing Operations — Diluted EPS sass | $1.23 Ecova (DiscOp) $1.14 $0.08 TOTAL - Diluted EPS $2.59 $
Slide 20: Initiating 2015 Earnings Guidance
Initiating 2015 Earnings Guidance 2014 Original | 2014 Revised 2015 Guidance Guidance Guidance Avista Utilities $1.68-$1.82 $1.79-$1.94* $1.81-$1.95 Alaska Electric Light and Power Company - $0.03-$0.04 $0.08-$0.12 Ecova (Discontinued Operations) $0.12-$0.16 $1.13-$1.15 - Other $(0.03)-$(0.01) | $0.
Slide 21: Attractive and growing dividend
Attractive and growing dividend Dividend growth expected to keep pace with long-termearnings growth $1.27 $1.22 2010 2011 2012 2013 2014* *Current quarterly dividend of §0.3175 annualized 24
Slide 22: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity $319.4 million of available liquidity as of Sept. 30, 2014 = In Sept. AEL&P issued $75.0 million of 4.54% first mortgage bonds due in 2044 = Expecttoissue $15.0 million in term loans at AERC during the fourth quarter of 2014 = In Oct. priced $60 million of 4.11% A
Slide 23: Summary: Creating a valued investment
23 Summary: Creating a valued investment Rate base and customer growth Growth opportunities in Alaska o Possible LDC a Selective acquisitions o Othervalue added services Creating other opportunities for growth a Extending accessto natural gas through LNG YEARS OF SERVICE Attractive dividend yield, c
Slide 24: Jason Lang, Investor Relations Manager
Jason Lang, Investor Relations Manager 509-495-2930