Avista Corporation · NYSE:AVA
Avista — EEI Finance Meeting 2008
26 slides from Avista's conference presentation, May 20, 2008
Slide 1: Avista Corp. Business Update
Exhibit 99.1 Avista Corp. Business Update EEI Finance Meeting May 2008 NYSE: AVA www.avistacorp.com
Slide 2: Company Overview
Company Overview Headquartered in Spokane, Wash. Core business is the utility Generates, transmits and distributes electricity and distributes natural gas Has one of the smallest carbon footprints in the United States Non-regulated Subsidiary Advantage IQ Provides utility, telecom and waste bill pro
Slide 3: 2008 Highlights
2008 Highlights New rates effective on January 1, 2008 Moody’s and S&P upgraded our corporate credit rating to investment grade Filed General Rate Case in Washington on March 4, 2008 Electric rate increase of $36.6 million Natural gas rate increase of $6.6 million 46.3% equity ratio and 10.8% ROE Fi
Slide 4: 2008 Highlights continued …
2008 Highlights continued … Issued $250 million of 5.95% first mortgage bonds on April 3, 2008 $273 million of 9.75% senior notes mature on June 1, 2008 Settled Oregon General Rate Case Rate increase of $2.28 million 50.0% equity ratio and 10.0% ROE Quarterly dividend increase of 10% Acquired the de
Slide 5: The economy in our service territory is well diversified and continues to grow
The economy in our service territory is well diversified and continues to grow Healthcare, education, finance and tourism provide an important balance Strong commodity prices for wheat and metals have led to a resurgence in agriculture and mining Housing prices have continued to rise Spokane, Wash.
Slide 6: Responsible Resources
Responsible Resources
Slide 7: Avista is Long Resources Through 2010
Avista is Long Resources Through 2010* 2008-2017 Annual Available Resource Capability (in aMW) 1,000 1,200 1,400 1,600 1,800 Peakers Gas Dispatch Contracts Base Thermal Hydro Load w/ CI * Excludes new resources from the 2007 Integrated Resource Plan shown on next page.
Slide 8: 2007 Integrated Resource Plan
2007 Integrated Resource Plan Preferred Resource Strategy by 2017 350 MW of natural gas-fired plants 300 MW of wind 87 MW of conservation 38 MW of hydro plant upgrades 34 MW of other renewables Timing of Preferred Resource Strategy in MW Other Renewables 9.5 9.5 9.5 9.5 Hydro Upgrades Conservation W
Slide 9: What Has Changed?
What Has Changed? Citizens Initiative 937 Renewables Mandate 3% Washington energy by 2012 9% Washington energy by 2016 15% Washington energy by 2020 Western governors sign agreement to reduce greenhouse gases (Washington, California, Oregon, Arizona, New Mexico) Washington HB 6001 limiting emissions
Slide 10: 2008 Budgeted Utility Capital Expenditures
2008 Budgeted Utility Capital Expenditures $200 million JP Gas Storage Expansion $14.5 Other $22.7 IS/IT $12.6 Growth $43.0 AMR $5.0 Environmental $8.5 Gas $20.9 Generation $26.4 Electric T&D $46.4
Slide 11: 2009-2010 Forecasted Utility Capital Expenditures
2009-2010 Forecasted Utility Capital Expenditures* $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 Environmental Gas Generation Growth IS/IT Other Electric T&D *Excludes capital expenditures for 50 MW wind project
Slide 12: Avista Utilities Regulatory Update
Avista Utilities Regulatory Update Authorized 50.00% 10.00% 8.20% Oregon Natural Gas (settlement reached on February 22, 2008) 42.59% 46.00% Common Equity Level Return on Equity Rate of Return Jurisdiction and Service 10.40% 9.25% Idaho Electric and Natural Gas (implemented in September 2004) 10.20%
Slide 13: Oregon Gas General Rate Case
Oregon Gas General Rate Case Filed October 12, 2007 All-party settlement agreement reached on February 22, 2008 Increase will be implemented in two steps resulting in a total of $2.28 million $866,000 in April 2008 Approximately $1.42 million in November based on completion of certain capital projec
Slide 14: Washington Electric and Gas General Rate Case
Washington Electric and Gas General Rate Case Primary Electric Revenue Requirement Factors Hydro Relicensing & Compliance Issues 30% Distribution & Other Expense 13% Increased Net Plant Investment (1) 36% Production & Transmission Expense 21% Increased Loads Mid Columbia Purchase Expenses Colstrip &
Slide 15: Idaho Electric and Gas General Rate Case
Idaho Electric and Gas General Rate Case The last General Rate Case filed in Idaho was in February 2004 Hydro Relicensing & Compliance Issues 12% Distribution & Other Expense 8% Increased Net Plant Investment (1) 36% Production & Transmission Expense 48% Increased Loads Mid Columbia Purchases Colstr
Slide 16: Avista Corp. Advantage IQ
AWISTA Corp. advantage @
Slide 17: Advantage IQ
Advantage IQ Analyzes utility usage and provides cost-management services for national, multi-site customers Management services include electricity, natural gas, water/sewer, waste and telecom expenses Manage over $12.5B in expenses for 410+ clients Currently process and pay 660,000 bills per month
Slide 18: Financial Information
Financial Information Revenue $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Q1 2008 Net Income $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Q1 2008
Slide 19: Avista Corp.
AWISTA Corp.
Slide 20: Investment Grade Credit Rating
Investment Grade Credit Rating BBB- Baa3 BBB- Senior Unsecured Debt BBB Baa2 BBB+ Senior Secured Debt BB+ Baa3 BBB- Corporate/Issuer Rating Fitch, Inc. Moody’s Standard & Poor’s Standard & Poor’s upgraded corporate credit rating and senior unsecured debt from BB+ to BBB- on February 7, 2008 Upgraded
Slide 21: Debt Maturities by Year
6% 3% 4% 1% 25% 8% 2% 2% 6% 2% 14% 19% 9% $0 $50 $100 $150 $200 $250 $300 Long-term debt outstanding April FMB's issuance Proposed 2008 debt issuances Debt Maturities by Year proforma December 31,
Slide 22: AVA Dividend Payment History
AVA Dividend Payment History $0.12 per share dividend initially paid Dec. 15, 1998 $0.12 $0.125 $0.130 $0.135 $0.140 $0.145 $0.150 $0.165 $0.100 $0.110 $0.120 $0.130 $0.140 $0.150 $0.160 $0.170 Dividend Increase Occurred Dividend Payment Trend
Slide 23: Consolidated Earnings
$0.72 $0.92 $1.46 $0.72 $0.47 -$0.05 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 $1.35 $1.55 $1.75 Q1 2008 Consolidated Earnings
Slide 24: 2008 Earnings Guidance
2008 Earnings Guidance $(0.03)-$0.00 $0.10-$0.12 $1.20-$1.40 $1.35-$1.55 Other Advantage IQ Avista Utilities Consolidated
Slide 25: Forward-looking statements
This presentation contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, our current plans or objectives for future operations, future hydroelectric generation projections and other factors,
Slide 26: Avista Corp.
AWISTA Corp.