Avista Corporation · NYSE:AVA
Avista — Investor Presentation (December 2015)
22 slides from Avista's investor presentation, Dec 7, 2015
Slide 1: Avista
AIWISTA 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: Strong and stable utility core
Strong and stable utility core = Regulated electric and natural gas operations = Serves customers in Washington, Idaho and Oregon = Contributes about 95% of earnings Alaska Electric Light & Power Company (AEL&P) = Regulated electric operations Long history of service, trust, = Serves customers in Ci
Slide 4: Steadily building long-term value
Steadily building long-term value Projecting earnings and dividend growth of 4% to 5% = 5% to 6% rate base growth through utility capital investments o Upgrading infrastructure a Grid modernization = Customer and load growth (~1%) = Strong near-term rate base growth through invest mentin generation
Slide 5: Avista Utilities
Avista Utilities Significant investments in utility infrastructure Avista
Slide 6: Solid foundation and continued commitment to innovation
Solid foundation and continued commitment to innovation Providing safe and reliable service for 125+ years = Diverse customer base a 30,000 square mile service territory a Service area population 1.5 million - 370,000 electric customers - 330,000 natural gas customers = Strong customer focus a 90% p
Slide 7: A responsible mix of generation
A responsible mix of generation Founded on clean, renewable hydropower = Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs = Long resources through 2020; plan to add 96 MW natural gas peaker by the end of 2020 = Exceeds Washington state’s 15% Renewable
Slide 8: Significant investments to upgrade all systems
Significant investments to upgrade all systems 5% to 6% rate base growth Avista Utilities Capital Expenditures** ( millions) $375 $352 $22 = Environmental wiz = Generation $47 Gas _ a a Sane x "= Other” $46 — = Growth $71 = Enterprise Technology =T8D $94 2014 2015 2016 2017 Projected * Other include
Slide 9: Investing in our utility
Investing in our utility Preserving and enhancing service reliability Advanced Metering Infrastructure (AMI) UY, Nine Mile Falls Rehab Little Falls Plant Upgrade Aldyl A Natural Gas AVISTA Pipe Replacement
Slide 10: Driving effective regulatory outcomes
Driving effective regulatory outcomes Continued recovery of costs and capital investments Washington DS] + May 4, 2016, filed a partial settlement agreement on cost of capital, net power supply costs and rate spread and rate design. Cost of capital based an 48.5% equity ratio and 9.5% return on equi
Slide 11: Alaska Electric Light & Power Company
"1 Alaska Electric Light & Power Company (AEL&P) Growing the utility core ANISTA
Slide 12: Diversifying our utility footprint
Diversifying our utility footprint Oldest regulated electric utility in Alaska, founded in 1893 = Serves 16,000 electric customers in the City and Borough of Juneau, meeting nearly all of its energy needs with hydropower = One of the lowest cost electric utilities in the state = Approved capital str
Slide 13: Opportunity to drive additional growth in Alaska
Opportunity to drive additional growth in Alaska Bringing natural gas to Juneau = Invest approximately $130 million over 10 years a 50% during first five years a Expect $0.05 of earnings by third year of operations a Two-year construction phase — Construction to begin firsthalf 2016 — Slightly dilut
Slide 14: Strategic Investments
Strategic Investments Developing platforms for future growth 14 Avista
Slide 15: Creating new growth platforms
Creating new growth platforms 15 = Expand natural gas services via LNG a Salix (subsidiary) — Generation—diesel substitution — Marine fueling — Railfueling a Finalist for LNG liquefaction plant to serve the Interior Energy Project, specifically Fairbanks, Alaska — One offive finalists selectedin RFP
Slide 16: Financial Performance Metrics
16 Financial Performance Metrics Avista
Slide 17: Continued earnings growth
Continued earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments | 932015 | a3z014 Avista Utiities $0.20 $0.16 AEL&P [soo | soot Oth 5 oF ab J 8001 $3.10 Continuing Operations - Diluted EPS | $0.21 | $0.16 Ecova (DiscOp) : 3 TOTAL - Diluted EPS | so21 |
Slide 18: Growth for 2015
18 Growth for 2015 2015 Earnings Guidance Avista Utilities $1.81 - $1.95 AEL&P $0.08 - $0.12 Other $(0.03) - $(0.01) Consolidated $1.86 - $2.06 * Our outlook for Avista Utilities assumes, arnong other variables, normal precipitation and temperatures for the remainder of the year and includes the exp
Slide 19: Attractive and growing dividend
Attractive and growing dividend Dividend growth expected to keep pace with long-termearnings growth $1.32 2011 2012 2013 2014 2015° *Current quarterly dividend of §0.33 annualized 19
Slide 20: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity $226 million of available liquidity at Avista Corp. as of Sept. 30, 2015 = In October, priced $100 million of 4.37 percent* Avista Corp. first mortgage bonds with a maturity date of December 2045. Expectto issue December 2015. = In 2016, expecttoissue about $155 m
Slide 21: An attractive investment
a An attractive investment = Strong and responsible core utility a Investing substantially to modernize infrastructure and upgrade systems a Steady returns and attractive dividendyield’ a One ofthe greenestutilities in the U.S." = Focus on utility growth a Selective acquisition of AEL&P a Developing
Slide 22: Company Contact
Company Contact Jason Lang, Investor Relations Manager 509-495-2930 jason.lang@avistacorp.com www.avistacorp.com Photo: Huntington Park, Spokane, Wash. 22