1. OPUC Natural Gas Outlook 2017
July 13, 2017

2. 2

3. Winter 2016/2017 Load Activity
Area
IRP HDD
1/5 HDD
Klamath Falls 72 70
La Grande 74 66
Medford 61 43
Roseburg 55 38
IRP Oregon modeled peak for ’16-’17 = 94,344 (74,234 Actual)
Avista system record core usage day of 313,000 Dth on January 5, 2017
La Grande, Oregon usage was 77 Dth shy of the forecasted peak day 3

4. Increasing Rigs, Growing Production, Where’s the Demand?
PNW Natural Gas Power Burn Sample
Mexico and LNG Demand
US Net Imports/Exports 4

5. US Natural Gas Storage 5

6. Jackson Prairie Oregon Storage (11/1/2016 – 7/5/2017)
Leased
Owned
Facility
Current Balance
Capacity
% of Capacity
Leased
.071 Bcf
.096 Bcf
74%
Owned
.587 Bcf
.823 Bcf
71%
OR Total
.658 Bcf
.919 Bcf
72% 6
*As of 7/5/17

7. 2017 – 2018 Procurement Plan What changed?
A single mechanism for all hedging from prompt month to as much as 3 years out
Daily spot purchases make up a higher percentage mix
Currently, no planned discretionary hedges
Storage optimization plan is a separate model 7

8. 2007/2008 Hedges vs. YTD 2017/2018 Hedges 8

9. OR PGA Forecast* Commodity Amortization Demand Total Revenue
Current: $
Projected: $
Current: $ $
Current: ($ )
($ )
Projected Overall Revenue Increase:
(3%)
Based on Prices as of ,
Deferral Balances 9