Avista Corporation · NYSE:AVA
Avista — Investor Presentation (March 2015)
22 slides from Avista's investor presentation, Mar 3, 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 a Upgrading infrastructure a Grid modernization = Customer and load growth (~1%) Alaska Electric ‘ = Strongnear-term rate base growth through investme
Slide 5: Avista Utilities
Avista Utilities Significant investments in utility infrastructure Avista
Slide 6: Strong foundation and deep dedication to accomplish great things
Strong foundation and deep dedication to accomplish great things 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 focu
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 addtwo 83 MW single-cycle CTs by the beginning of 2020 andthe end of 2023 = Exceeds Washingto
Slide 8: Significant investments to upgrade all systems
Significant investments to upgrade all systems 5% to 6% rate base growth Avista Utilities Capital Expenditures** (S millions) $375 $352 $22 $350 $19 $63 $41 = Environmental $47 $48 = Generation $39 $26 "Gas i ‘$41 "Other" = Growth ue "Enterprise Technology =T8D $94 2014 2015 2016 2017 Projected * Ot
Slide 9: Driving and enhancing infrastructure projects
ving and enhanc Grid Modernization ‘Advanced Metering Infrastructure (AMI) Nine Mile Falls Rehab Little Falls Plant Upgrade Aldyl A Replacement
Slide 10: Driving effective regulatory outcomes
Driving effective regulatory outcomes Continued recovery of costs and capital investments 10 Washington aa = Filedageneral rate case Feb. 9, 2015 design edto increase electric base revenues by $33.2 million and natural gas base revenues by $12.0 million = Based on 48% equity ratio and 9.9% retum on
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: 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.
Slide 14: Strategic Investments
Strategic Investments Developing platforms for future growth 14 Avista
Slide 15: Creating new growth platforms
Creating new growth platforms = Expand natural gas services via LNG a Salix (subsidiary) — Generation—diesel substitution — Marine fueling — Rail fueling = Targeted investments ao Plum Energy — SmallLNG projectinvestments o TROVE — Leverage AMI data through applied analytics 15 2 ES SALIX: PLUM & en
Slide 16: Financial Performance Metrics
16 Financial Performance Metrics Avista
Slide 17: Continued earnings growth
7 Continued earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments 2014 2013 Avista Utilities $1.83 $1.81 AEL&P 90.06 : Other 80.05" | $00.08) ing Operations — Diluted EPS $1.93 $1.74 Ecova DiscOp) S117 TOTAL - Diluted EPS $3.10 $1.85 * Includes $0.09 f
Slide 18: Growth for 2015
18 Growth for 2015 2015 Earnings Guidance Avista Utilities $1.81 - $1.95 Alaska Electric Light and Power Company $0.08 - $0.12 Other $(0.03) - $(0.01) Consolidated $1.86 - $2.06 Guidance Assumptions * Our outlook for Avista Utilities and AEL&P assumes, among othervariables, normal precipitation, tem
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 $262.4 million of available liquidity at Avista Corp. as of Dec. 31, 2014 = Jan. 2, 2015, we initiated a stock repurchase program for up to 800,000 sharesthat continuesthrough Mar. 31, 2015. Through Jan. 31, 2015, we have notrepurchased any shares under this progr
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 Developin
Slide 22: We welcome your questions
We welcome your questions Company Contact Jason Lang, Investor Relations Manager 509-495-2930 jason.lang@avistacorp.com www.avistacorp.com