Slide 1: 125 Years of Service
125 ‘YEARS OF SERVICE NYSE: AVA www.avistacorp.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statementsin this presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operatingresults, andthe assumptions uponwhich those statements are based, are “forward-lo
Slide 3: The value of investing in Avista
The value of investing in Avista Target long-term corporate earnings growth, 4% to 5% per year = Growing rate base, 5% to 6% = Attractive dividend yield, currently 4.2% = Focused on discovering new ways to YEARS OF SERVICE accelerate growth for Avista Corp. within and adjacent to the core utility bu
Slide 4: Who we are...
Who we are... = Regulated utility is the core business — Provides over 90% of earnings = Primary non-regulated subsidiary Ecova a ” A - Other” businesses | AERC i — Sheet metal fabrication SS beet — Emerging technology venture fundinvestments ang Y | AELaP 1 eas — Commercial real estate investments
Slide 5: Providing reliable and safe energy services since 1889
Providing reliable and safe energy services since 1889 = Serves electric and natural gas customers —- Service area population 1.5 million o 366,000electric customers a 326,000natural gas customers = Retail revenue by customer — Residential 51% — Commercial 37% — Industrial 12% = One of the smallest
Slide 6: Diverse generation mix and long resources until 2020
Diverse generation mix and long resources until 2020 Loads & Resources (Average Annual Energy) mmaHycro Resources aBaceiintermediate Resources 4.300 ‘[mENet Firm Contracts ‘—=SPeakingResources Load ‘© Load + Contingency Planning 4,600 4.400 4.200 ‘average megawatts Resource Mix Basedon maximum capac
Slide 7: Updating and maintaining our utility system
Updating and maintaining our utility system 2014U (Sin millions) Environment $16 Natural Gas $40 $33 ity Capital Expenditures $335 Million Total Capital Expenditures® ($in millions) 2012 $271 2013 $294 2014 $335 2015 $355 2016 $350 = Actual Estimate * Excludes the planned acquisition of Alaska Energ
Slide 8: Acquiring Alaska Energy and Resources Company
Acquiring Alaska Energy and Resources Company = Signed a definitive agreement on Nov. 4, 2013 to /\ EL&e acquire Alaska Energy and Resources Company (AERC) = The purchase price at closing will be $170 million, less the assumption of debt and other customary closing adjustments = The transaction will
Slide 9: Expanding and diversifying energy assets
Expanding and diversifying energy assets = Alaska Energy and Resources Company (AERC) is the holding company to Alaska Electric Light and Power (AEL&P), AJT Mining Properties and Snettisham Electric Company = AEL&P is the oldest regulated electric utility in Alaska, founded in 1893 = AEL&P serves th
Slide 10: Driving effective regulatory outcomes
Driving effective regulatory outcomes Washington = Filed generalrate case Feb. 4, 2014, designed to increase electric base revenues by 3.8% or $18.2 million andnatural gas base revenues by 8.1% or $12.1 million with proposed rates effective Jan. 1, 2015 = Based on 49% equity ratio and 10.1% return o
Slide 11: Ecova
Ecova
Slide 12: Providing energy efficiency and cost management
Providing energy efficiency and cost management ecova Industry pioneer, founded in 1995 Headquartered in Spokane, Wash. /f XA Ss Over 1,500 employees 80.2% owned by Avista Corp. = Manages =722,000 billed sites totaling =$21B in expenditures Information as of Dec. 31, 2013 SE
Slide 13: Total energy and sustainability management
Total energy and sustainability management ecova Expense & Data Energy Management Management Services Services Utility Bill Processing & Analysis . Telecom Lifecycle Management Financial Planning/Budgeting : Real Estate Owned 5. 13 Energy Supply Management (including Procurement, Conservation & Perf
Slide 14: 97% customer retention rate
97% customer retention rate ecova Customer base includes 24% of Fortune 500 smart@Zideas Pacific Gas and FA Electric Company ® NW Notural”
Slide 15: Strong trends at Ecova
Strong trends at Ecova ecova TotalRevenue Total Net Income $176,761 (Attributable to Avista Corp. Shareholders) $155,664 $9,671 $137,848 5 $102,035 : 2 $77,275 3 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2014 ProjectedRevenue by Service 2014 47% Revenue expectedto be in a range of $180-$200
Slide 16: Corporate Financial Overview
Corporate Financial Overview
Slide 17: Targeting long-term corporate earnings growth at 4%-5% per year
Targeting long-term corporate earnings growth at 4%-5% per year* Consolidated Diluted EPS $1.85 $1.72 $1.58 $1.65 $1.32 Utility Diluted EPS $184 $158 $155 $1.56 2009 2010 2011 2012 2013 009-2010 2011 204: 013 * Based on midpoint of 2013 guidance range 7
Slide 18: Strong liquidity and capital resources
Strong liquidity and capital resources $201.6 million of available liquidity as of Dec. 31, 2013 Long-Term Debt Maturities through 2024 (Sin miliions) $273 $250 $90 $90 $52 13.5 2014 2045 2016 2017 2018 2019 2020 2021 2022 2023 2024 18 Consolidated Capital Structure Dec. 31, 2013 Current Credit Rati
Slide 19: Maintaining appropriate capital structure
19 Maintaining appropriate capital structure Financing Overview = We expect to issue approximately $190 million of long-term debt — Includes about $90’ million of debt issuances associated with rebalancingthe consolidated capital structure at Alaska Energy and Resources Company (AERC) = We expect to
Slide 20: Solid dividend growth
Solid dividend growth Compound annual growth rate 6.2% since 2010 Twelfth consecutive yearly increase Targeting 60% to 70% payout ratio Expected to keep pace with long-term earnings growth Annual Dividend $1.22 $1.27 $1.10 $1.16 I | 2010 2011 2012 2013 2014" *Curent Quarterly Dividend of §0.3175 Ann
Slide 21: 2014 Guidance
2014 Guidance Avista Utilities $1.68-$1.82 Ecova $0.12-$0.16 Other $(0.03)-$(0.01) Consolidated $1.77-$1.97 Guidance Assumptions = Our outlook for 2014 assumes, among other variables, normal precipitation temperatures and hydroelectric generation = Our2014 guidance ran ge for Avista Utilities en com
Slide 22: Company Contact
Company Contact Jason Lang, Investor Relations Manager 509-495-2930 jason.lang@avistacorp.com