Avista Corporation · NYSE:AVA
Avista — AGA Financial Forum 2016
22 slides from Avista's conference presentation, May 13, 2016
Slide 1: Positioned for performance: An overview of Q1 2016 and beyond
Positioned for performance: An overview of Q1 2016 and beyond AGA Financial Forum Naples, Florida May 2016 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: Strong and stable utility core
3 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 4: Steadily building long-term value
4 Steadily building long-term value Reliably building value for our customers, investors, communities and employees Projecting 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 infrastruct
Slide 5: Avista Utilities: Significant investments in utility infrastructure
Avista Utilities Significant investments in utility infrastructure 5
Slide 6: Diverse customer base and strong customer focus
6 Diverse customer base □ 30,000 square mile service territory □ Service area population 1.6 million – 375,000 electric customers – 335,000 natural gas customers Strong customer focus □ 90% percent or better customer satisfaction ratings every year since 1999 □ Developing key customer initiative
Slide 7: A responsible mix of generation
7 A responsible mix of generation Hydro 48% Biomass 2% Wind 6% Coal 9% Natural Gas 35% Avista Utilities Electricity Generation Resource Mix* Dec. 31, 2015 Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs Long resources through 2020; plan to add 96
Slide 8: Significant investments to upgrade all systems
8 $136 $131 $151 $178 $71 $52 $54 $33 $55 $51 $53 $56 $50 $43 $43 $42 $49 $47 $56 $45 $48 $29 $30 $39 $6 $22 $18 $12 $415 $375 $405 $405 2015 2016 2017 2018 Avista Utilities Capital Expenditures** ($ millions) Environmental Other* Gas Customer Growth Enterprise Technology Generation T&D Projected Si
Slide 9: Investing in our utility
9 Investing in our utility Nine Mile Falls Rehab Little Falls Plant Upgrade Grid Modernization Aldyl A Natural Gas Pipe Replacement Advanced Metering Infrastructure (AMI) Preserving and enhancing service reliability
Slide 10: Driving effective regulatory outcomes
10 Driving effective regulatory outcomes Continued recovery of costs and capital investments Washington Feb. 19, 2016, filed an electric and natural gas rate request with a proposed 18-month rate plan designed for new rates effective Jan. 1, 2017 and Jan. 1, 2018. Under this plan, we would not fil
Slide 11: Alaska Electric Light & Power Company (AEL&P): Growing the utility core
Alaska Electric Light & Power Company (AEL&P) Growing the utility core 11
Slide 12: Oldest regulated electric utility in Alaska, founded in 1893
Oldest regulated electric utility in Alaska, founded in 1893 12 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 53.8% equity and an au
Slide 13: Opportunity to drive additional growth in Alaska
13 Opportunity to drive additional growth in Alaska Planning to bring natural gas to Juneau Invest approximately $130 million over 10 years □ 50% during first five years □ Expect $0.05 of earnings by third year of operations □ Two-year construction phase – Construction could begin in the first hal
Slide 14: Strategic Investments
14 Strategic Investments Developing platforms for future growth
Slide 15: Creating new growth platforms
Expand natural gas services via LNG □ Salix (subsidiary) – Generation – diesel substitution – Marine fueling – Rail fueling □ Finalist for LNG liquefaction plant to serve the Interior Energy Project, specifically Fairbanks, Alaska – Need approval from the AIDEA Board – Multiple components of the f
Slide 16: Financial Performance Metrics
16 Financial Performance Metrics
Slide 17: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity Debt 51.9% Equity 48.1% Consolidated Capital Structure March 31, 2016 17 Additional long-term debt maturities beyond 2026 not shown $263 million of available liquidity at Avista Corp. as of March 31, 2016 In 2016, expect to issue about $155 million of long-term
Slide 18: Continued earnings growth
$1.32 $1.85 $3.10 $1.97 2012 2013 2014 2015 2016 Guidance Continuing Operations Ecova (DiscOp) $1.96-$2.16 18 Continued earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments Q1 2016 Q1 2015 Avista Utilities $0.85 $0.71 AEL&P $0.05 $0.04 Other $(0.01) $
Slide 19: 2016 Earnings Guidance
19 2016 Earnings Guidance Avista Utilities $1.91 - $2.05 AEL&P $0.09 - $0.13 Other $(0.04) - $(0.02) Consolidated $1.96 - $2.16 Guidance Assumptions Our outlook for Avista Utilities assumes, among other variables, normal precipitation and temperatures for the remainder of the year. Our outlook f
Slide 20: Stable and growing dividend
*Current quarterly dividend of $0.3425 annualized 20 Dividend growth expected to keep pace with long-term earnings growth Stable and growing dividend $1.16 $1.22 $1.27 $1.32 $1.37 2012 2013 2014 2015 2016*
Slide 21: An attractive investment
21 An attractive 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.** Focus on utility growth □ Selective acquisitions □ Developing ne
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 Photo: Huntington Park, Spokane, Wash. 22