Avista Corporation · NYSE:AVA
Avista — West Coast Utilities Seminar 2019
24 slides from Avista's conference presentation, Mar 19, 2019
Slide 1: Positioned for performance: An overview of 2018 and beyond
Exhibit 99.1 Positioned for performance: An overview of 2018 and beyond West Coast Utilities Seminar Las Vegas, Nevada March 20-21, 2019 NYSE: AVA www.avistacorp.com
Slide 2: Disclaimer
Disclaimer All forward-looking statements in this presentation are based on underlying assumptions (many of which are based, in turn, upon further assumptions). These statements are subject to a variety of risks and uncertainties and other factors. Most of these factors are beyond our control and ma
Slide 3: Our focus in 2019
Our focus in 2019 . Avista Corp and Hydro One filed termination of Merger Agreement on Jan. 23, 2019 . Received termination fee of $103 million from Hydro One . Remain focused on running a great utility and providing reliable energy service to our customers . Reduce regulatory lag and more closely a
Slide 4: Resetting expectations that drive performance
Resetting expectations that drive performance . Annual earnings growth* □ Approximately 9% to 10% from 2020 through 2022 □ Projecting long-term earnings growth of 4% to 5% following 2022 . Avista Utilities expected return on equity (ROE) approximately 7.5% for 2019 . 2019 structural costs and regula
Slide 5: Investments to upgrade our systems
Investments to upgrade our systems 5% to 6% rate base growth $428 $21 $405 $405 $405 $405 Failed Plant & $15 $14 $17 $16 Operations $48 $89 $69 $53 $49 Customer Requested $53 $73 $63 $51 $57 Performance & $54 $49 Capacity $37 $46 $66 $68 Customer Service, Quality $79 $94 $72 & Reliability $89 Mandat
Slide 6: Timely recovery of costs and capital investments
Timely recovery of costs and capital investments Expected general rate case filings Oregon . March 15, 2019, filed natural gas rate request designed to increase annual natural gas base revenues by 10.3% or $6.7 million . Request based on a 9.9% return on equity with a 50% common equity ratio . The P
Slide 7: 2019 Earnings Guidance
2019 Earnings Guidance 2019 Earnings Guidance Avista Utilities $2.72 $2.86 AEL&P $0.09 $0.13 Other $(0.03) $(0.01) Consolidated $2.78 $2.98 Guidance Assumptions . Our guidance for Avista Utilities includes $1.01 per diluted share for the termination fee received from Hydro One and the paymen
Slide 8: A solid investment
A solid investment . Strong and responsible core utility □ Investing substantially to modernize infrastructure and upgrade systems □ Committed to reducing current regulatory timing lag by 2022 □ Steady returns and attractive dividend yield □ One of the greenest utilities in the U.S.* Reliably buildi
Slide 9: We welcome your questions
We welcome your questions Company Contact Jason Lang, Director of Finance 509-495-2930 jason.lang@avistacorp.com www.avistacorp.com Photo: Huntington Park, Spokane, Wash. 9
Slide 10: Appendix
Appendix 10
Slide 11: 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, innovat
Slide 12: Avista Utilities: Significant investments in utility infrastructure
Avista Utilities Significant investments in utility infrastructure 12
Slide 13: Solid foundation and continued commitment to innovation
Solid foundation and continued commitment to innovation Providing safe and reliable service for nearly 130 years . Diverse customer base □ 30,000 square mile service territory □ Service area population 1.6 million – 379,000 retail electric customers – 343,000 retail natural gas customers . Strong cu
Slide 14: 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 . Filed last electric Integrated Resource Plan in August 2017; long resources until 2026 . Plan to exceed Washington state’s 15% R
Slide 15: Driving Effective Regulatory Outcomes
Driving Effective Regulatory Outcomes Recovery of costs and capital investments Washington Idaho Alaska . Dec. 28, 2017, the Idaho Public Utilities Commission approved a multi-party . Apr. 26, 2018, received Commission . Nov. 15, 2017, all-party settlement settlement agreement designed to increase a
Slide 16: Alaska Electric Light & Power Company (AEL&P)
Alaska Electric Light & Power Company (AEL&P) Growing the utility core 16
Slide 17: Diversifying our utility footprint
Diversifying our utility footprint Oldest regulated electric utility in Alaska, founded in 1893 . 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 str
Slide 18: Strategic Investments
Strategic Investments Developing platforms for future growth 18
Slide 19: Creating new growth platforms
Creating new growth platforms . Targeted investments □ Energy Impact Partners – Private equity fund that invests in emerging technologies, services, and business models throughout electric supply chain with a collaborative, strategic investment approach □ TROVE – Leverage AMI, consumer and other dat
Slide 20: Financial Performance Metrics
Financial Performance Metrics 20
Slide 21: Continued focus on financial performance
Continued focus on financial performance Total Earnings per Diluted Share Attributable to Avista Corporation $3.10 $2.15 $1.97 $2.07 $1.79 2014 2015 2016 2017* 2018* Continuing Operations Ecova (DiscOp) * 2018 earnings reduced by $0.04 per diluted share and 2017 earnings reduced by $0.19 per diluted
Slide 22: Prudent Balance Sheet and Liquidity
Prudent Balance Sheet and Liquidity $199 million of available liquidity at Avista Corp. as of December 31, 2018 . In 2019, we expect to issue approximately $165 million of long-term debt and up to $50 million of common stock Upcoming debt maturities ($ millions) Consolidated Capital Structure Decemb
Slide 23: Attractive and growing dividend
Attractive and growing dividend Targeting 60%-70% Payout Ratio by 2022 $1.55* 1.49 $1.43 $1.37 $1.32 2015 2016 2017 2018 2019 *Current quarterly dividend of $0.3875 annualized 23
Slide 24: Risks and Uncertainties That Could Affect Future Results
Risks and Uncertainties That Could Affect Future Results The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: weather conditions, which affect both energy demand and electric generating capability, including the effec