Slide 1: 125 Years of Service
125 YEARS OF SERVICE NYSE: AVA www.avistacorp.com
Slide 2: Disclaimer
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 f
Slide 3: A core utility business with growth platforms
Acore utility business with growth platforms Regulated electric and natural gas operations Serves customers in Washington, Idaho and Oregon Contributes to over 90% of earnings Energy sustainability and management company Serves 700+ national customers and 50+ utilities We are an industry leader with
Slide 4: Key drivers to building value
Key drivers to building value Projecting earnings growth of 4% to 5% Other Businesses 5% to 6% rate base growth through investmentin our utility system Load growth ~1% + opportunity in oth ervalue added services Opportunity for addition al selective utility acquisitions Attractive dividend growth of
Slide 5: Strong foundation and deep dedication to accomplish great things
Strong foundation and deep dedication to accomplish great things Providing safe and reliable service for over 125 years = Serves electric and natural gas customers co 30,000 square mile service territory a Service area population 1.5 million WASHINGTON - 367,000 electric customers j MONTANA - 326,00
Slide 6: Growing customer base
Growing customer base Projected annual customer growth ~1% Increase in Customers Served 6,894 2011 2012 2013 Q1 2014 mElectric Natural Gas
Slide 7: Well positioned with a clean mix of generation resources
Well positioned with a clean mix of generation resources Founded on clean, renewable hydropower = Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs = Long resources until 2020 a Planto addtwo 83 MW single-cycle CTs, by the beginning of 2020 andthe end o
Slide 8: Modernizing facilities and technology
Modernizing facilities and technology Utility Capital Expenditures ($ millions) = Environmental ™ Generation aGas wother cet ™ Growth Enterprise Technology =T&D 2014 2015, 2016 Projected *Other includes Facilities and Fleet
Slide 9: Investment in our utility system driving growth
Investment in our utility system driving growth 5% to 6% rate base growth 2013 Rate Base by Jurisdiction (S millions) Oregon Idaho Gas Gas $164 $114 Idaho Electri ‘S66? Washington Electric $1,254 Washington Gas $233 Year-end Rate Base (S millions) $2,740 Compoundannual growth rate of 6% 2013 2014 20
Slide 10: AERC acquisition — one gateway to new growth
AERC* acquisition — one gateway to new growth = Expected to close by July 1, 2014 = Purchase price $170 million, less the assumption of debt and other closing adjustments = Funded primarily through the issuance of Avista common stock to AERC shareholders = Slightly accretive to earnings per share in
Slide 11: Steady earnings growth
Steady earnings growth Projecting growth of 4% to 5% per year Consolidated Diluted Earnings per Share Guidance* $1.77-$1.97 $1.85 $1.68 $1.72 lan Utilities $1.32 2010 2011 2012 2013-2014 Projected * Expect to be nearthe upper end of the range, including the impacts of the Energy Recovery Mechanism i
Slide 12: Driving effective regulatory outcomes
Driving effective regulatory outcomes Washington = Filed generalrate case Feb. 4, 2014, designedto increase electric base revenues by 3.8% or $18.2 million and natural gas base revenues by 8.1% or $12.1 million with proposed rates effective Jan. 1,2015 = Basedon49% equity ratio and 10.1% return on e
Slide 13: Strong utility returns
Strong utility returns rized Return on Equity by Jurisdiction Washington 9.80% Utility Return on Average Shareholder Equity een 9.80% ; ase 8.4% 9.1% - a 8.6% 2.4% regon fo 2010 2011 2012 2013 2014 Projected 13
Slide 14: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity $279.4 million of available liquidity as of March 31, 2014 No significant maturities until 2018 Consolidated Capital Structure (S millions) March 31, 2014 $273 $250 $90 $90 $52 $13.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Healthy Credit Rating” S&P
Slide 15: Maintaining appropriate capital structure
Maintaining appropriate capital structure Expected Issuance | ccuiy | vost] Avista Corp.* $145M $190M $60M Avista Utilities (stand alone) $75M $100M $50 M** AERC** $70M $90M $10M * Expect to issue approximately §145 million of common stock related to closing the planned acquisition of AERC * Include
Slide 16: Attractive and growing dividend
Attractive and growing dividend Dividend growth expected to keep pace with long-termearnings growth $1.27 2010 2011 2012 2013 2014* * Cunent Quarterly Dividend of $0.3175 Annualized 16
Slide 17: Ecova's contribution to growth
Ecova’s contribution to growth eCCOVd Total energy and sustainability management ee
Slide 18: Providing energy efficiency and cost management
Providing energy efficiency and cost management Industry pioneer, founded in 1995 ecova Headquartered in Spokane, Wash. Over 1,500 employees 80.2% owned by Avista Corp. = Weare in the process of exploring the possibility of selling our interest in Ecova Expense & Data Management Services Energy Mana
Slide 19: Ecova's customer retention rate at 97%
Ecova’s customer retention rate at 97% Manages over 720,000 billed sites totaling about $22B in expenditures smart@Zideas : « ae NVEnergy sacs Unisoureeéneray Mem, ww woturor X22 Progress Energy 0 GD
Slide 20: Continuing growth at Ecova
Continuing growth at Ecova TotalRevenue Total Net Income (Attributable to Avista Corp. Shareholders) $176,761 $9671 $155 B54 $137 848 $102,035 Ginthousands) (inthousands) $44 384 2010 1 2012 2013 ‘atzo14 2010 2011 nz 2013 Qi 204 2014 ProjectedRevenue by Service 2014 Expectations Revenue in a range o
Slide 21: Summary: Creating a valued investment
Summary: Creating a valued investment a Rate base and customer growth driving earnings growth Strong growth at Ecova » Potential monetization Creating other opportunities for growth « Selective utility acquisitions » Other value added services « Extending access to natural gas through CNG/LNG Attrac
Slide 22: Company Contact
Company Contact Jason Lang, Investor Relations Manager 509-495-2930