Avista Corporation · NYSE:AVA
Avista — West Coast Utilities Seminar 2017
21 slides from Avista's conference presentation, Mar 22, 2017
Slide 1: Positioned for performance: An overview of 2016 and beyond
Positioned for performance: An overview of 2016 and beyond West Coast Utilities Seminar Las Vegas, Nevada March 23, 2017 NYSE: AVA www.avistacorp.com
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 long-term 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 i
Slide 5: Avista Utilities: Investments in utility infrastructure
Avista Utilities Investments in utility infrastructure 5
Slide 6: Diverse customer base
6 Diverse customer base □ 30,000 square mile service territory □ Service area population 1.6 million – 377,000 electric customers – 340,000 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 49% Biomass 2%Wind 4.5% Coal 9.5% Natural Gas 35% Avista Utilities Electricity Generation Resource Mix* Dec. 31, 2016 Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs Long resources through 2021; evaluating p
Slide 8: Projected investments to upgrade our systems
8 Projected Investments to upgrade our systems * Other includes Facilities and Fleet ** Excludes capital expenditures at AEL&P of $16 million in 2016, and projected capital expenditures of $7 million in 2017, $7 million 2018 and $13 million in 2019 5% to 6% rate base growth $139 $137 $164 $157 $55 $
Slide 9: Investing in our utility
9 Investing in our utility Little Falls Plant Upgrade Grid Modernization Aldyl A Natural Gas Pipe Replacement Advanced Metering Infrastructure (AMI) Preserving and enhancing service reliability Electric Vehicle Pilot Program
Slide 10: Driving effective regulatory outcomes
10 Driving effective regulatory outcomes Planned recovery of costs and capital investments Washington Dec. 15, 2016, received an order which denied the Company's proposed electric and natural gas rate increase requests of $38.6 million and $4.4 million, respectively, that were originally filed in
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: Strategic Investments: Developing platforms for future growth
13 Strategic Investments Developing platforms for future growth
Slide 14: Creating new growth platforms
Expand natural gas services via LNG □ Salix (subsidiary) – Generation – diesel substitution – Marine fueling – Rail fueling Targeted investments □ Energy Impact Partners – Private equity fund that invests in emerging technologies, products, services, and business models throughout electricity su
Slide 15: Financial Performance Metrics
15 Financial Performance Metrics
Slide 16: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity Debt 52.9% Equity 47.1% Consolidated Capital Structure Dec. 31, 2016 16 Additional long-term debt maturities beyond 2027 not shown $245.6 million of available liquidity at Avista Corp. as of Dec. 31, 2016 In 2016, issued and sold $175.0 million of first mortgage
Slide 17: Continued long-term earnings growth
$1.85 $3.10 $1.97 $2.15 2013 2014 2015 2016 2017 Guidance Continuing Operations Ecova (DiscOp) $1.80-$2.00 17 Continued long-term earnings growth Total Earnings per Diluted Share Attributable to Avista Corporation Business Segments Q4 2016 Q4 2015 Avista Utilities $0.59 $0.51 AEL&P $0.05 $0.04 Other
Slide 18: 2017 Earnings Guidance
18 2017 Earnings Guidance Avista Utilities $1.71 $1.85 AEL&P $0.10 $0.14 Other $(0.01) $0.01 Consolidated $1.80 $2.00 Guidance Assumptions Our outlook for Avista Utilities assumes, among other variables, normal precipitation, temperatures and hydroelectric generation for the remainder of t
Slide 19: Attractive and growing dividend
*Current quarterly dividend of $0.3575 annualized 19 Dividend growth expected to keep pace with long-term earnings growth Attractive and growing dividend $1.22 $1.27 $1.32 $1.37 $1.43 2013 2014 2015 2016 2017*
Slide 20: An attractive investment
20 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.* □ Committed to reducing current regulatory timing lag of 100-120 bps
Slide 21: We welcome your questions
We welcome your questions Company Contact Lauren Pendergraft, Investor Relations Manager 509-495-2998 [email protected] www.avistacorp.com Photo: Huntington Park, Spokane, Wash. 21