Avista Corporation · NYSE:AVA
Avista — Investor Presentation (March 2006)
22 slides from Avista's investor presentation, Mar 21, 2006
Slide 1: Corporate Summary
Corporate Summary Regulated Non-regulated Energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses Incorporated in 1889 and headquartered in Spokane, Washington Avista Utilities is a company operating division comprising the regula
Slide 2: Electric and Natural Gas Service Areas
Electric and Natural Gas Service Areas
Slide 3: 2005 Customer Growth Results
Results 7,418 new electric customers 10,326 new natural gas customers Extended service to: 3,754 electric lots 8,943 gas lots 3,000 6,000 9,000 12,000 15,000 18,000 21,000 Electric Gas 2005 Customer Growth Record number of electric hookups Adding these new customers created: 37 miles of new conducto
Slide 4: Integrated Resource Plan (IRP)
Integrated Resource Plan (IRP) Acquiring additional transmission is critical to the Company’s plans Over half of future energy needs are met with renewables, plant upgrades and conservation Energy and capacity deficits begin in 2010 and 2009, respectively Avista’s 2005 IRP calls for acquisition of 6
Slide 5: 2006 Utility Capital Expenditures
2006 Utility Capital Expenditures $160 million in CapEx equates to an additional $80 million to net rate base $160.0 million Total CapEx 230 kV Upgrades $29.2 Other $6.7 IS/IT & Security $9.9 Gas $11.1 Environmental $9.9 Growth $40.4 T&D $25.7 Generation $27.1
Slide 6: Transmission System Upgrades
Transmission System Upgrades of projects fully commissioned (63%) 50 of 115 miles of 230 kV line constructed 4 of 6 – 230 kV substations energized 90 of 200 miles of F/O cable installed Total project cost is approximately $120 million through 2007 230 kV Construction Schedule and Cost Trend Palouse
Slide 7: Noxon Rapids Dam
Noxon Rapids Dam Hydro Upgrades Noxon Rapids Runner Upgrade Noxon Rapids is Avista’s largest hydro project Upgrade Units 1-4 to improve efficiency, reliability and eliminate operating restrictions Replace turbine runners on Units 1-4 Requires $31.4 million of capital over the next seven years Requir
Slide 8: Advanced Meter Reading (AMR)
Advanced Meter Reading (AMR) Oregon 93,000 gas meters installed Oregon granted a 35% Business Tax Credit on a portion of the cost of the project Idaho Completed installation of 112,000 electric and gas meters in 2005; additional 60,000 to install through 2008 IPUC pre-approved $16 million, four-year
Slide 9: Mobile Dispatch
Phase I: Gas service and collections company-wide, gas compliance Oregon Phase II: Gas compliance in WA/ID, electric service workers company-wide Phase II: Excludes construction crews & CPCs Mobile Dispatch Process improvements unlocks expense savings N/A $700,000 Approved Energy Business Tax Credit
Slide 10: Avista Utilities Regulatory Update
Avista Utilities Regulatory Update Authorized 48% 10.25% 8.88% Oregon Natural Gas (implemented in October 2003) 43% 40% 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) 10.40% 9.11% Washington Ele
Slide 11: Electric Power Cost Mechanism
Washington ERM * Idaho PCA Power Supply Costs in Base Rates $0 + $9 Million - $9 Million 90/10 Sharing 90/10 Sharing Power Supply Costs in Base Rates $0 90/10 Sharing 90/10 Sharing Avista Utilities Electric Power Cost Mechanism * On January 31, Avista filed with the WUTC to review the ERM and elimin
Slide 12: Avista Advantage
Post payment analysis, leverage data and execute strategies. Validate invoices, identify and resolve errors, optimize services. Receive, enter and scan invoices, cost allocate, issue vendor payments. Facility Information and Expense Management Services for Utilities, Telecom and Waste ENHANCED SERVI
Slide 13: Avista Advantage
Avista Advantage Avista Advantage has penetration in virtually all market segments; industry penetration is approximately 18%. All Clients by Market Segment Health & Med 6% Government 7% Big Box 9% Retail Food 17% Industrial 19% Financial Services 4% Multi-Site Retail 21% Hospitality & Property Mgt
Slide 14: Provides services for more than 175,000 Client sites
Provides services for more than 175,000 Client sites throughout the United States
Slide 15: Avista Advantage
Avista Advantage Net Income Revenue Avista Advantage’s revenues increased by 35% for 2005, as compared to 2004. . $(4,500,000) $(3,500,000) $(2,500,000) $(1,500,000) $(500,000) $500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,
Slide 16: Avista Advantage
Avista Advantage Sites Billed $ Value of Bills Processed Total Accounts The number of billed sites increased by approximately 33,000, or 25% in 2005. $- $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 $8,000,000,000 $9,000,000,000 $10,000,000,
Slide 17: Avista Energy
Saskatchewan Medford Mid-Columbia Malin COB Spokane AECO Sumas Stanfield Lancaster (270mw) British Columbia Alberta Jackson Prairie Storage John Day Chelan (2.6 BCF) Kingsgate Teck Cominco Clark Co. PUD To Rockies Montana Idaho Oregon Washington Saskatchewan Medford Mid-Columbia Malin COB COB Spokan
Slide 18: Avista Energy Key Contractual Assets and Strategic Agreements
Avista Energy Key Contractual Assets and Strategic Agreements Power Generation and Transmission Lancaster 270 MW CCCT power project 250 MW of NW point-to-point transmission (BPA) 200 MW of firm AC intertie transmission capacity Chelan PUD: real-time management of 2000 MW hydro system Teck-Cominco: 4
Slide 19: Capital Expenditures
Capital Expenditures ($ millions) 50,000 100,000 150,000 200,000 250,000 2006 Target Avista Utilities Energy Marketing & Resource Management Avista Advantage & Other Coyote Springs 2 $84 $106 $118 $218 $160
Slide 20: Consolidated Earnings
Consolidated Earnings $0.20 $0.60 $0.89 $0.72 $0.92 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00
Slide 21: 2006 Earnings Guidance
2006 Earnings Guidance $(0.05) Other $0.10-$0.12 Avista Advantage $0.20-$0.30 Energy Marketing & Resource Management $1.00-$1.15 Avista Utilities $1.30-$1.45 Consolidated
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