Avista Corporation · NYSE:AVA

Avista — Investor Presentation (May 2006)

23 slides from Avista's investor presentation, May 23, 2006

  1. Slide 1: Corporate Summary

    We answer to you. 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 com

  2. Slide 2: Electric and Natural Gas Service Areas

    We answer to you. Electric and Natural Gas Service Areas

  3. Slide 3: Q1 2006 Results

    We answer to you. Q1 2006 Results 1,885 new electric customers 2,091 new natural gas customers Extended service to: 589 electric development lots 6,012 in planning stage 1,118 gas development lots 5,291 in planning stage Customer Growth Forecasted growth for the next four years: 2.5% for electric cu

  4. Slide 4: Integrated Resource Plan (IRP)

    We answer to you. 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 fo

  5. Slide 5: 2006 Utility Capital Expenditures

    We answer to you. 2006 Utility Capital Expenditures Total Utility capital expenditures results in an additional $80 million to net rate base 230 kV Upgrades $29 Other $7 IS/IT & Security $10 Gas $11 Environmental $10 Growth $40 Electric Transmission & Distribution $26 Generation $27 $160 Million Tot

  6. Slide 6: Transmission System Upgrades

    We answer to you. Transmission System Upgrades of projects fully commissioned (63%) of miles of kV line constructed of – kV substations energized of miles of F/O cable installed Total project cost is approximately $120 million through 2007 230 kV Construction Schedule and Cost Trend Palouse 230 Line

  7. Slide 7: Noxon Rapids Dam

    We answer to you. 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

  8. Slide 8: Advanced Meter Reading (AMR)

    We answer to you. 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

  9. Slide 9: Mobile Dispatch

    We answer to you. 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 unlock expense savings N/A $700,000 Approved Energy Bu

  10. Slide 10: Avista Utilities Regulatory Update

    We answer to you. 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. Slide 11: Electric Power Cost Mechanism

    We answer to you. 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

  12. Slide 12: Avista Advantage

    We answer to you. 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 Wa

  13. Slide 13: Avista Advantage

    We answer to you. 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% Hospitali

  14. Slide 14: Avista Advantage

    We answer to you. Provides services for more than 175,000 Client sites throughout the United States Avista Advantage

  15. Slide 15: Avista Advantage

    We answer to you. 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 Q1 2006 $- $5,000,000 $10,000,000 $15,000,000 $20,0

  16. Slide 16: Avista Advantage

    We answer to you. 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 $9,000,00

  17. Slide 17: Avista Energy

    We answer to you. 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 Ma

  18. Slide 18: Avista Energy Key Contractual Assets and Strategic Agreements

    We answer to you. 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 syst

  19. Slide 19: Cash Flow

    We answer to you. Cash Flow First Quarter 2006 ($ thousands) Three Months Ended March 31, $59,225 $71,090 Ending Cash 88,317 25,917 Beginning Cash (29,092) 45,173 Increase (Decrease) in Cash (126) 1,690 Other (20,459) (40,425) Debt Increase (Decrease), Net (6,544) (6,803) Dividends on Common Stock (

  20. Slide 20: Capital Expenditures

    We answer to you. 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

  21. Slide 21: Consolidated Earnings

    We answer to you. Consolidated Earnings $0.60 $0.89 $0.72 $0.92 $0.64 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Q1 2006

  22. Slide 22: 2006 Earnings Guidance

    We answer to you. 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

  23. Slide 23: We answer to you.

    We answer to you.

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