Avista Corporation · NYSE:AVA
Avista — Investor Presentation (September 2006)
28 slides from Avista's investor presentation, Sep 19, 2006
Slide 1: Corporate Summary
We answer to you. Corporate Summary Regulated Non-regulated Energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses Incorporated in 1889 and headquartered in Spokane, Washington Avista Utilities is a company operating division com
Slide 2: Avista Service Territory
We answer to you. Avista Service Territory Electric Customers 338,000 Gas Customers 297,000
Slide 3: Q2 YTD 2006 Results
We answer to you. Q2 YTD 2006 Results 3,547 new electric customers 4,080 new natural gas customers Extended service to: 1,683 electric development lots 3,719 gas development lots 3,000 6,000 9,000 12,000 15,000 18,000 21,000 Q2 YTD Electric Gas Customer Growth Forecasted growth for the next four yea
Slide 4: 2006 Utility Capital Expenditures
We answer to you. 2006 Utility Capital Expenditures Total Utility capital expenditures results in an additional $80 million to net rate base 230 kV Upgrades $29 Other $7 IS/IT & Security $10 Gas $11 Environmental $10 Growth $40 Electric Transmission & Distribution $26 Generation $27 $160 Million Tot
Slide 5: Transmission System Upgrades
We answer to you. Transmission System Upgrades Palouse 230 Line Lolo Substation Beacon-Bell 230 Lines $29,200 $20,835 Benewah Fiber Optic and C. Fork RAS $21,926 $27,104 $21,041 230 kV Upgrade Total CapX Boulder Sub & 230 Lines Dry Creek Sub & 230 Lines Beacon-Rathdrum Line Palouse 230 Line Lolo Sub
Slide 6: Noxon Rapids/Cabinet Gorge Turbine Upgrades
We answer to you. Noxon Rapids Dam Cabinet Gorge Dam Noxon Rapids/Cabinet Gorge Turbine Upgrades Avista’s two largest hydro projects Noxon Rapids Improve efficiency, reliability and eliminate operating restrictions Replace turbine runners on Units 1-4 Requires $31.4 million of capital over the next
Slide 7: Annual Average Loads and Resources 2008-2016
We answer to you. 1,000 1,200 1,400 1,600 1,800 Peakers Average Load (with reserves) Hydro Base Load Thermal Contracts Gas Dispatch Annual Average Loads and Resources 2008-2016 (in aMW)
Slide 8: Integrated Resource Plan (IRP)
We answer to you. Integrated Resource Plan (IRP) Over half of future energy needs are met with renewables, plant upgrades and conservation A Request for Proposal for up to 35 average MW of renewable energy was issued to the public on January 4, 2006 Energy and Capacity deficits begin in 2010 and 200
Slide 9: Avista Utilities Regulatory Update
We answer to you. Avista Utilities Regulatory Update Authorized 48% 10.25% 8.88% Oregon Natural Gas (implemented in October 2003) 43% 40% Common Equity Level Return on Equity Rate of Return Jurisdiction and service 10.40% 9.25% Idaho Electric and Natural Gas (implemented in September 2004) 10.40% 9.
Slide 10: Electric Power Cost Mechanisms
We answer to you. Electric Power Cost Mechanisms Idaho PCA $0 90/10 Sharing 90/10 Sharing Power Supply Costs in Base Rates $0 Washington ERM 90/10 Sharing + $10 Million 50/50 Sharing + $4 Million Power Supply Costs in Base Rates - $4 Million - 50/50 Sharing - $10 Million - 90/10 Sharing
Slide 11: Washington Production and Transmission Update
We answer to you. Washington Production and Transmission Update Filed August 31, 2006 Increase of 8.8% or $28.9 million in revenue Rates effective on or before February 1, 2007 Increase driven by: Additional investments in Avista’s hydroelectric and thermal generating plants Upgrades to 230 kV trans
Slide 12: Purchased Gas Adjustment Filings
We answer to you. Purchased Gas Adjustment Filings Nov. 1, 2006 Nov. 1, 2006 Nov. 1, 2006 Proposed Effective Date 8.8% 3.2% 8.1% % Increase $11.0 m $2.7 m $16.7 m Amount Aug. 31, 2006 Sept. 14, 2006 Aug. 31, 2006 Filing Date Oregon Idaho Washington
Slide 13: Advantage IQ
We answer to you. Advantage IQ Bill payment processing and related services for large, multi-site customers Started in 1996 Today we manage $10.0 billion annually in customer payments Pay over 500,000 bills per month supporting 180,000 sites in the United States and Canada $75 million in client savi
Slide 14: Advantage IQ serves customers in the following industry categories
We answer to you. Advantage IQ serves more than 350 customers in the following industry categories Casual Dining Education Medium Box Retail Commercial Banking/Finance Convenience Stores Government Small Box Retail Big Box Retail Entertainment Grocery Hospitality Airlines Communications Fast Food In
Slide 15: Revenue Growth
We answer to you. Revenue Growth $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Projected 35% increase over 2004
Slide 16: Net Income
We answer to you. Net Income ($2,000) ($1,000) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Projected 2006 Guidance $0.10-$0.12
Slide 17: Advantage IQ Growth Opportunities
We answer to you. Advantage IQ Growth Opportunities Existing Customers We grow as our customers grow Expanded services New Customers New Services Advanced analysis, budgeting, consulting Supply Management International Acquisition/Merger/Monetization
Slide 18: Avista Energy
We answer to you. Teck Cominco Chelan PUD Avista Energy Energy Marketing and Resource Management Adding customer value through our experience and knowledge of the integrated gas and electric systems.
Slide 19: Avista Energy Overview
We answer to you. Lancaster Generating Station Avista Energy Overview 51 employees headquartered in Spokane, Washington Deep operating experience within the region Four employees in Vancouver, BC office Natural gas end-use marketing with over 250 customers Two employees in Montana Natural gas end-us
Slide 20: Avista Energy Business Model
We answer to you. Avista Energy Business Model How the business operates … Marketing energy to wholesale and large end-use customers Moving energy between locations , by transporting to higher price markets Moving energy between time periods , by storing it in the interim Capturing price differences
Slide 21: Firm Electric and Natural Gas Resources
We answer to you. Firm Electric and Natural Gas Resources SASKATCHEWAN Medford Mid-Columbia Chelan Malin COB Spokane AECO Sumas Stanfield Lancaster (270mw) BRITISH COLUMBIA ALBERTA Jackson Prairie Storage John Day (2.7 BCF) Kingsgate Teck Cominco Clark PUD (280 mw) To Rockies MONTANA IDAHO OREGON El
Slide 22: Key Contractual Assets and Strategic Agreements
We answer to you. Avista Energy Key Contractual Assets and Strategic Agreements Power Generation and Transmission Lancaster 270 MW CCCT power project 250 MW of NW point-to-point transmission (BPA) 200 MW of firm AC intertie transmission capacity Chelan PUD: real-time management of 2000 MW hydro syst
Slide 23: Avista Energy Growth Opportunities
We answer to you. Avista Energy Growth Opportunities Improve recent ROE performance Grow asset base that we manage for other firms Grow end-use gas customer business Consider strategic alternatives
Slide 24: Consolidated Earnings
We answer to you. Consolidated Earnings $0.60 $0.89 $0.72 $0.92 $0.91 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Q2 YTD 2006
Slide 25: AVA Dividend Payment History
We answer to you. AVA Dividend Payment History $0.12 $0.125 $0.130 $0.135 $0.140 $0.145 $0.100 $0.105 $0.110 $0.115 $0.120 $0.125 $0.130 $0.135 $0.140 $0.145 $0.150 Dividend Increase Occurred Dividend Payment Trend $0.12 per share dividend initially paid Dec. 15, 1998
Slide 26: Percent Change in Stock Price
We answer to you. Percent Change in Stock Price Compared to Northwest Utilities and the S&P MidCap Utilities December 31, 2002 through September 1, 2006 PSD +1.90 AVA +107.18 IDA +54.09 CGC +28.40 S&P +64.90 NWN +42.09 -20% 0% 20% 40% 60% 80% 100% 120%
Slide 27: 2006 Earnings Guidance
We answer to you. 2006 Earnings Guidance $(0.05) Other $0.10-$0.12 Avista Advantage $0.20-$0.30 Energy Marketing & Resource Management $1.00-$1.15 Avista Utilities $1.30-$1.45 Consolidated
Slide 28: We answer to you.
We answer to you.