Avista Corporation · NYSE:AVA
Avista — Investor Presentation (December 2017)
23 slides from Avista's investor presentation, Dec 5, 2017
Slide 1: Positioned for performance: An overview of Q3 2017 and beyond
Positioned for performance: An overview of Q3 2017 and beyond December 2017 NYSE: AVA www.avistacorp.com Exhibit 99.1
Slide 2: 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 factors and
Slide 3: Avista to be acquired by Hydro One
3 Avista to be acquired by Hydro One Key Transaction Terms Offer price of US$53.00 per Avista common share in cash Represents a 24% premium to Avista’s closing price on July 18, 2017, of US$42.74 Equity purchase price of US$3.4 billion (C$4.4 billion) Total enterprise value of US$5.3 billion
Slide 4: Strong and stable utility core
4 Strong and stable utility core Regulated electric and natural gas operations Serves customers in Washington, Idaho and Oregon Contributes about 95% of earnings Regulated electric operations Serves customers in City and Borough of Juneau Avista Utilities Alaska Electric Light & Power Comp
Slide 5: Steadily building long-term value
5 Steadily building long-term value Reliably building value for our customers, investors, communities and employees Projecting long-term earnings and dividend growth of 4% to 5% Avista Utilities AEL&P Strategic Investments 5% to 6% rate base growth through utility capital investments Upgrading i
Slide 6: Avista Utilities
Avista Utilities Significant investments in utility infrastructure 6
Slide 7: Diverse customer base
7 Diverse customer base □ 30,000 square mile service territory □ Service area population 1.6 million – 377,000 electric customers – 340,000 natural gas customers Strong customer focus □ 90% percent or better customer satisfaction ratings every year since 1999 □ Developing key customer initiative
Slide 8: A responsible mix of generation
8 A responsible mix of generation Hydro 49% Biomass 2% Wind 4.5% Coal 9.5% Natural Gas 35% Avista Utilities Electricity Generation Resource Mix* Dec. 31, 2016 Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs Filed electric Integrated Resource Plan
Slide 9: Projected investments to upgrade our systems
Projected Investments to upgrade our systems *Excludes projected capital expenditures at AEL&P of $7 million in 2017, $7 million 2018 and $13 million in 2019 5% to 6% rate base growth $163 $148 $153 $190 $73 $71 $73 $50 $49 $69 $51 $52 $49 $49 $62 $53 $47 $46 $46 $47 $23 $22 $21 $13 $405 $405 $405 $
Slide 10: Investing in our utility
10 Investing in our utility Little Falls Plant Upgrade Grid Modernization Aldyl A Natural Gas Pipe Replacement Advanced Metering Infrastructure (AMI) Preserving and enhancing service reliability Electric Vehicle Pilot Program Customer Facing Technology
Slide 11: Driving Effective Regulatory Outcomes: Washington
11 Washington May 26, 2017, filed an electric and natural gas rate request designed to increase annual electric revenues by $61.4 million and annual natural gas revenues by $8.3 million, effective May 1, 2018. • Dec. 1, 2017, filed updated revenue requirements in rebuttal testimony due to timing o
Slide 12: Driving Effective Regulatory Outcomes: Idaho and Alaska
12 Driving Effective Regulatory Outcomes Recovery of costs and capital investments Idaho Oct. 19, 2017, filed multi-party settlement agreement designed to increase annual electric base revenues by $12.9 million, or 5.2 percent, effective Jan. 1, 2018, and by $4.5 million, or 2.3 percent, effective
Slide 13: Alaska Electric Light & Power Company (AEL&P)
Alaska Electric Light & Power Company (AEL&P) Growing the utility core 13
Slide 14: Oldest regulated electric utility in Alaska
Oldest regulated electric utility in Alaska, founded in 1893 14 Serves 17,000 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 structure of 58.18% equity ratio an
Slide 15: Strategic Investments
15 Strategic Investments Developing platforms for future growth
Slide 16: Creating new growth platforms
LNG opportunities continue to be impacted by current market economics □ Salix (subsidiary) – Generation – substitution for diesel – Marine and rail fueling □ Plum Energy – Small LNG project investments Targeted investments □ Energy Impact Partners – Private equity fund that invests in emerging t
Slide 17: Financial Performance Metrics
17 Financial Performance Metrics
Slide 18: Prudent Balance Sheet and Liquidity
Prudent Balance Sheet and Liquidity Debt 53.6% Equity 46.4% Consolidated Capital Structure Sept. 30, 2017 18 Additional long-term debt maturities beyond 2027 not shown *Excludes debt maturities of $15 million at Alaska Energy and Resources Company in 2019 $161.1 million of available liquidity at Avi
Slide 19: Continued long-term earnings growth
$1.85 $3.10 $1.97 $2.15 2013 2014 2015 2016 2017 Guidance * Continuing Operations Ecova (DiscOp) $1.75-$1.90 19 Continued long-term earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments Q3 2017 Q3 2016 Avista Utilities $0.08 $0.20 AEL&P $0.01 $0.01 Oth
Slide 20: 2017 Earnings Guidance
20 2017 Earnings Guidance Original Revised* Avista Utilities $1.71 $1.85 $1.71 $1.80 AEL&P $0.10 $0.14 $0.10 $0.14 Other $(0.01) $0.01 $(0.06) $(0.04) Consolidated $1.80 $2.00 $1.75 $1.90 Guidance Assumptions Our outlook for Avista Utilities assumes, among other variables, normal p
Slide 21: Attractive and growing dividend
*Current quarterly dividend of $0.3575 annualized 21 Dividend growth expected to keep pace with long-term earnings growth Attractive and growing dividend $1.22 $1.27 $1.32 $1.37 $1.43* 2013 2014 2015 2016 2017*
Slide 22: A solid investment
22 A solid investment Strong and responsible core utility □ Investing substantially to modernize infrastructure and upgrade systems □ Steady returns and attractive dividend yield □ One of the greenest utilities in the U.S.* □ Committed to reducing current regulatory timing lag Focus on utility g
Slide 23: We welcome your questions
We welcome your questions Company Contact Lauren Pendergraft, Investor Relations Manager 509-495-2998 Lauren.pendergraft@avistacorp.com www.avistacorp.com Photo: Huntington Park, Spokane, Wash. 23