Avista Corporation · NYSE:AVA
Avista — Investor Presentation (June 2015)
22 slides from Avista's investor presentation, Jun 2, 2015
Slide 1: Avista Corporation
7 AIVISTA 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 Avista Utilities = 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, = Serve
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 Avista Utilities a Grid modernization Customer and load growth (~19%) Strong near-term rate base growth through investment in
Slide 5: Avista Utilities
Avista Utilities Significant investments in utility infrastructure AiVISTA
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 until 2020; plan to add two 83 MW single-cycle CTs by the beginning of 2020 and the end of 2023 Exceeds Washington st
Slide 8: Significant investments to upgrade all systems
Significant investments to upgrade all systems 5% to 6% rate base growth Avista Util ($ millions) lies Capital Expenditures* $352 @ Environmental = Generation =Gas ™ Other* = Growth Al "Enterprise Technology =TaD $94 2014 2015 2016 2017 Projected * Other includes Facilities and Fleet Excludes planne
Slide 9: Grid Modernization
Grid Modemization Advanced Metering Infrastructure (AMI) line Mile Falls Rehab Little Falls Plant Upgrade Aldyl A Natural Gas 9 Pipe Replacement
Slide 10: Driving effective regulatory outcomes
Driving effective regulatory outcomes Continued recovery of costs and capital investments Washington i = May 4, 2015, filed a partial settlement agreement on cost of capital, net power supply costs and rate spread and rate design Cost of capital based on 48.5% equity ratio and 9.5% retum on equity =
Slide 11: Alaska Electric Light & Power Company
11 Alaska Electric Light & Power Company (AEL&P) Growing the utility core AEP AiVISTA
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: Opportunities to drive growth in Alaska
Opportunities to drive growth in Alaska 13 New Products & Services Develop and deploy new infrastructure and related energy products and services in greater Juneau Natural Gas LDC via LNG Establish pathways for bringing natural gas to Juneau and southeast Alaska as an alternative to diesel fuel AiVI
Slide 14: Strategic Investments
Strategic Investments Developing platforms for future growth 14
Slide 15: Creating new growth platforms
Creating new growth platforms = Expand natural gas services via LNG u Salix (subsidiary) — Generation — diesel substitution — Marine fueling — Rail fueling = Targeted investments 15 u Plum Energy — Small LNG project investments u TROVE — Leverage AMI data through applied analytics PLUM @ energy TROV
Slide 16: Financial Performance Metrics
Financial Performance Metrics 16
Slide 17: Continued earnings growth
Continued earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments 12015 | a12014 Avista Utlities go71 | $0.80 AELEP $0.04 Z Other son) | $01 Continuing Operations - DilutedePs | $0.74 | $0.79 SBI Ecova (DiscOn) gooo | $0.02 TOTAL - Diluted EPS |_s074 | $
Slide 18: Growth for 2015
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, among ather variables, normal precipitation and temperatures for the remainder af the year and includes the expecte
Slide 19: Attractive and growing dividend
Attractive and growing dividend Dividend growth expected to keep pace with long-term earnings growth 2011 2012 2013 2014 2015* *Curent quarterly dividend of $0.33 annualized 19
Slide 20: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity $299.4 million of available liquidity at Avista Corp. as of March 31, 2015 = We expect to issue up to $125 million of long-term debt at Avista Corp. in 2015 = We do not expect to issue any equity in 2015, other than small amounts under the employee benefit plans N
Slide 21: An attractive investment
21 An attractive investment = Strong and responsible core utility a a a Investing substantially to modemize infrastructure and upgrade systems Steady retums and attractive dividend yield* One of the greenest utilities in the U.S.** = Focus on utility growth a a a Selective acquisition of AEL&P Devel
Slide 22: We welcome your questions
We welcome your questions Company Contact Jason Lang, Investor Relations Manager 509-495-2930 jason.lana@avistacorp.com www.avistacorp.com