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HomeMy WebLinkAbout20180130AVU to WNIDCL_PR_37 Attachment A.pdfStewardship. Shared Value. Avista’s Report on Our Performance 2016 Sustainability. WNIDCL_PR_037(AVA) Attachment A Page 1 of 115 II WNIDCL_PR_037(AVA) Attachment A Page 2 of 115 1 Table of Contents A Message from Our Leadership ..................................................2 About the Report .........................................................................4 Utility Operations .........................................................................8 Environmental Stewardship ........................................................42 Community Partnership .............................................................62 Our Company ............................................................................78 Global Reporting Initiative ..........................................................94 WNIDCL_PR_037(AVA) Attachment A Page 3 of 115 2 A Message from Our Leadership On Nov. 17, 2015, Spokane, Washington was hit with an unprecedented windstorm with near- hurricane force winds that devastated parts of our service territory. Over the following 10 days, employees from all across Avista and organizations from across the community banded together to restore power to the 180,000 (nearly half) Avista electric customers that were without power as a result. It was all hands on deck.Dennis P. Vermillion President, Avista Utilities WNIDCL_PR_037(AVA) Attachment A Page 4 of 115 3 In addition to the lineworkers working around the clock to restore power, Avista employees and leadership (many also without power) could be seen going door-to-door checking on neighbors, delivering generators to critical businesses in need and offering their work time to whatever needed to be done throughout the company. We also contributed significant funds to community organizations that were providing comfort and necessities for those without power. While the situation was extreme, the restoration effort was something we could be proud of – a community working together for the greater good. It was an example of the tremendous commitment we have to our customers, communities and all of our stakeholders. For more than 125 years, we have worked together to identify a path forward that will address a challenge, solve a problem or make our community stronger. Through all we do, I’m reminded that our vision for the future aligns with and reinforces where we’ve been. Sustainability and stewardship of our communities and environment have been engrained in our company since we began. We’ve maintained a tight focus on our core business of delivering the energy that enhances the lives of our customers while identifying new ways we can provide value and maintain the strength and integrity of our system and the places we call home. The success we find is a shared success that doesn’t simply benefit Avista. Our success lies in creating shared opportunities and value for Avista, our customers and the communities we serve. As I look at the accomplishments we achieved together in 2015, I’m as proud as I’ve ever been to be part of Avista. Throughout our journey – past, present and future – we recognize that our purpose is not just to put the wires up or keep rates down. At Avista, our work and the innovation we dedicate ourselves to is about improving the lives of our customers, to make a positive impact in the communities we serve. With this, we’re proud to present our 2016 Shared Value Report, the eighth report on our operations, that provides a comprehensive view into our business and the work done that demonstrates our commitment to our stakeholders. Creating shared value means aligning our strategic business interests, including philanthropy and community involvement, in powerful ways that create the opportunity to bring value to our stakeholders. The key drivers are the links between our corporate strategic plans — opportunities that create economic value for our company — and the positive outcomes that also address societal needs and challenges. Our activities and shared value opportunities throughout 2015, many of which you will read about, highlight the investments we continue to make in our systems, infrastructure, employees and communities and align with our company strategies: • Customer Engagement and Value — Deliver more value to more customers and strengthen engagement; • Community Vitality — Act through partnerships and service to enhance community vitality and prosperity in the communities we serve; • Safe and Reliable Infrastructure — Invest in our infrastructure to achieve optimum life-cycle performance — safely, reliably and at a fair price; • Responsible Resources — Control a portfolio of resources that responsibly meet our longterm energy needs; • People and Performance — Reinforce a values- driven culture of employees who do the right thing to help us succeed; • Financial Performance — Strengthen financial performance to remain a healthy company and an attractive investment; and • Effective Public Policy Outcomes — Drive positive outcomes at the local, state, regional and federal levels. The stories highlighted in this report underscore the power of working together for a shared outcome — one that is meaningful and has a lasting impact but also serves to move Avista and our communities toward our goals. Throughout the following pages, you’ll read stories that paint the picture of how we do things and delve deeper into the numbers behind our operations. Thank you for your interest in Avista and this report. We hope that you will give us your feedback on the report and that you will share it with others. WNIDCL_PR_037(AVA) Attachment A Page 5 of 115 4 Materiality Materiality involves identifying those topics and issues that matter most to Avista and our stakeholder groups. We balance providing content that meets GRI guidelines and industry expectations with content that is stakeholder-relevant. Throughout this report, we’ve included and highlighted those items that have been identified as material. You will notice icons that call attention to these items. About the report The information in this report is based on the Global Reporting Initiative (GRI) G3 Guidelines and the Electric Utility Sector Supplement (EU). The most recent previous report was published in July 2015. We have considered the G4 Guidelines and you will see an emphasis on materiality throughout this report. We may report based on G4 Guidelines in the coming years. This report maintains a consistent format and structure as in previous years and a continued focus on shared value — how we create and bring value for our company and our stakeholders. Content and stories are informed not only by the G3 Guidelines but by what our stakeholders have told us is important and relevant to them. Information contained here is focused solely on Avista Utilities, a regulated business unit of Avista Corporation. Avista Utilities had no significant changes in size or structure in 2015. Data in the report is current as of Dec. 31, 2015, except where otherwise noted. This report is available for review online as well as for download in PDF at avistautilities.com. This is our eighth annual voluntary report on our operations, with an emphasis on corporate social responsibility and shared value opportunities. WNIDCL_PR_037(AVA) Attachment A Page 6 of 115 5 The materiality of information included in this report is determined by the level of significance each issue has in terms of: • Stakeholder interest, as measured by surveys, focus groups, formal and informal discussions and anecdotal information; • Its impact on our business today and in the future, as determined by state and federal regulatory and voluntary data reporting, and financial significance; Im p o r t a n c e t o S t a k e h o l d e r s LOW HI G H Relevance for Avista Stakeholder Materiality SYSTEM RELIABILITYConsistency of energy delivery CORPORATE CITIZENSHIPCommunity relations, volunteerism, philanthropy, sponsorships CUSTOMER SATISFACTIONCompany performance in ways that meet customer needs ENVIRONMENTAL PERFORMANCE Stewardship of environmental elements impacted by operations RESOURCE PLANNING Short and long-term outlook to meet customers’ energy needs • Society’s interest, in terms of its impact on the communities we serve and its importance, relevance or perception in part as reflected by coverage through traditional and social media channels; and • Materiality checks conducted with external groups that were asked to rate 25 specific topics in terms of their perceived impact on stakeholders and their relevance to Avista. The list of topics is here. The analysis of all available information resulted in five material topics which informed the majority of content for this report: • System Reliability • Customer Satisfaction • Resource Planning • Environmental Performance • Corporate Citizenship HIGH WNIDCL_PR_037(AVA) Attachment A Page 7 of 115 6 Review Of The Report While this report was not reviewed by outside stakeholders prior to its publication, we anticipate sharing it with the stakeholder groups we regularly interface with throughout the coming year. In doing so, we hope to engage individuals and organizations in an ongoing dialogue about our business operations and solicit suggestions about opportunities to further build shared value. This report is available online at: avistautilities.com For additional information about this report, or to give us feedback on our performance, please contact us at: SharedValue@avistacorp.com We welcome your questions and comments. Forward-Looking Statement This report contains forward-looking statements regarding the company’s current expectations. Forward- looking statements are all statements other than historical facts. Such statements speak only as of the date of the report and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in Avista Corp.’s Annual Report on Form 10-K for the year ended Dec. 31, 2015. Acknowledgements This report is produced through a partnership of knowledgeable and talented Avista employees, stakeholders and creative vendors within our service territory. We thank all of them for their time, contributions and support. Editor: Casey Fielder Communications Manager Design: Klündt | Hosmer WNIDCL_PR_037(AVA) Attachment A Page 8 of 115 7WNIDCL_PR_037(AVA) Attachment A Page 9 of 115 8 Energy for Life — Innovation for the Future Utility Operations From generating and delivering energy to empowering communities and embracing new technologies, we keep our stakeholders’ needs at the forefront of all we do. We strive to: • Provide safe, reliable service that is there when it’s needed. • Bring value to our customers through services, programs and methods for using energy efficiently. • Plan for the future through investments in utility infrastructure, resource planning and exploration of new technologies. Over the past few years, Avista has built a new foundation for our energy future. We are one of a handful of utilities across the country to receive multiple grants from the Department of Energy through the American Reinvestment and Recovery Act. By investing more than $80 million of combined federal matching funds and Avista capital, we’ve successfully modernized portions of our grid with upgraded substations and new software, sensors and switches that allow us to operate our distribution systems more efficiently and reliably. We know that technology continues to transform the energy industry, and that we’ll continue to make significant investments in our grid to accommodate technology and serve our customers into the future. Year after year, we are making intentional decisions about how we engage in responsible use of our resources, invest in our infrastructure and empower customers to manage their energy use. Our utility operations encompass a broad range of projects and actions all with a common focus on efficiency, reliability, forward-thinking and customer benefit so that we can deliver on our purpose of improving life’s quality, with energy. Across Avista, we focus on running our business to meet our customers’ expectations, efficiently and effectively. WNIDCL_PR_037(AVA) Attachment A Page 10 of 115 9WNIDCL_PR_037(AVA) Attachment A Page 11 of 115 10 Energy Storage Project: A Game Changer Avista continues to tackle one of the energy industry’s biggest challenges — how to integrate intermittent power from renewable energy into the electrical grid — through its Energy Storage Project. This leading-edge energy storage research will help address this challenge while also examining better ways to improve power system reliability. The Energy Storage Project is testing new batteries that can store power when it’s abundant and distribute energy when it’s needed, providing reliable energy to our customers regardless of weather patterns. This technology may enable better grid reliability, rapid adoption of renewable energy, store abundant resources for a later time and help level out peak demand. Washington state Governor Jay Inslee, Senator Maria Cantwell and Congresswoman Cathy McMorris Rodgers were in Pullman, Washington to flip the switch on the Energy Storage Project that went online in April 2015. This significant milestone marked the beginning of battery system testing. At the time the system went online, it was the largest- capacity vanadium-flow battery system in North America and Europe. The one-megawatt, 3.2 MWh battery storage system has the capacity to power 750 homes for 3.2 hours. The $7 million project is funded by a $3.2 million grant from Governor Inslee and the Washington State Department of Commerce’s Clean Energy Fund and another $3.8 million in Avista matching funds. Over an 18-month period, Avista is testing different scenarios in a real-world setting, and the results will inform future operations. Pacific Northwest Smart Grid Project Concludes with Positive Results For the past five years, Avista has collaborated with regional partners to complete the Pacific Northwest Smart Grid Demonstration Project. The goal of the project was to illustrate how a system with the ability to share information between the utility and customer can improve reliability, efficiency and the adjustment of loads based on demand while assisting in energy conservation. Avista’s contribution to the project was the Smart Grid Demonstration, which transformed Pullman, Washington into the region’s first “smart city.” Customers in this area had Advanced Metering Infrastructure (AMI) installed. Smart thermostats were installed in a subset of the customers’ homes and had the capability to display usage information to the customer as well as communicate this data to Avista through the customer’s AMI smart meter. Utilizing AMI technology allowed Avista to start or stop service remotely — translating into improved customer service and a reduced number of service calls. The reduction in service calls increased operating efficiency which translated into a savings of approximately $235,000 annually for Avista in this service area. Additionally, there was a reduction in the electrical load in Pullman illustrating that conservation may be another positive outcome of this technology. Nine Mile Dam Multi-Year Renovations Proceed WNIDCL_PR_037(AVA) Attachment A Page 12 of 115 11 A multi-year renovation to Avista’s 106-year-old Nine Mile Dam began in 2013, with overhaul efforts moving toward a 10 MW increase in generating capacity. The project is underway to replace two of the original four turbine-generator units, and other equipment as well as upgrading or replacing the turbine-generating units, the creation of a new warehouse, communication systems upgrades and upgrades to other systems within the powerhouse. The project reached a milestone in the spring of 2015 with the de-watering of the tailrace under two of the generating units that will be upgraded and the installation of new station service switchgear and a transformer. The new switchgear will allow the power from the two oldest generating units to be transferred to the Nine Mile substation and then on to customers. In the fall of 2015, another project milestone was reached as we began placing new concrete that will serve as the foundation for the new turbine generating units. The multi-year project is expected to be complete in 2019 and will continue to provide reliable, cost- effective hydropower for our customers. 11WNIDCL_PR_037(AVA) Attachment A Page 13 of 115 12 Damages to Underground Utilities Continue to Decline in Avista’s Service Territory Educating customers and the community about the importance of calling 811 before any digging project is the most important measure of prevention that can be taken to help continue to reduce the number of damages to underground utilities and increase safety. In 2015, Avista held 168 public education events in our service territory designed to educate our communities about being safe around underground utilities and the role of 811 in preventing damage. This kind of education is a key element of our outreach efforts to keep our customers safe around electricity and natural gas and underscores our commitment to safety. Since 2011, Avista’s service territory has seen a 41 percent decrease in the number of underground utility damages per 1,000 locates while the number of locates requested has increased by 48 percent. The national average is 3.2 dig ins per 1,000 locates; Avista’s 2015 average was 4.6. Kettle Falls Biomass Plant Participates in Forest Coalition to Create Successful Solutions Through involvement with the Northeast Washington Forestry Coalition (NEWFC) Avista’s Kettle Falls Generating Station (KFGS) in Washington has partnered with other stakeholders on projects promoting forest health. The biomass produced from efforts to thin forest vegetation is processed into fuel at KFGS. This process helps protect the environment by reducing particulate emissions. The logs harvested through these projects are provided to regional sawmills and plywood plants for processing which helps keep these local customers in business. Avista’s role in the Coalition is an excellent example of the commitment to customers, the community and the environment, illustrating how innovation, collaboration and trust lead to resolutions that benefit all. The NEWFC’s collaboration of local stakeholders in the Colville National Forest consists of several government agencies, timber companies, conservationists, business owners, forestry professionals and an Avista representative. All parties have an interest in the forest for different reasons and were able to work together to design a plan that benefitted all stakeholders. The coalition has been described as a model for timber communities nationwide. LEDs to Light the Way Through Avista’s Streetlight Change Out Program New lights are shining in Avista’s Washington and Idaho service area as the company launched a streetlight change program in October 2015. Beginning in Washington, the plan includes the replacement of nearly 30,000 company-owned streetlights with energy efficient LED lights, over five years. In 2015, 4,500 streetlights were replaced. As current High Pressure Sodium (HPS) streetlights burn out, they are being replaced with LED technology. When Avista completes the transition to LED technology for company-owned streetlights, the energy savings are expected to be enough each night to power about 2,300 homes. The energy savings is good for customers In 2015, Avista held 168 public education events in our service territory designed to educate our communities about being safe around underground utilities and the role of 811 in preventing damage. WNIDCL_PR_037(AVA) Attachment A Page 14 of 115 13 and Avista, while providing savings through reduced maintenance, equipment, material and other costs associated with continued use of 1980s-era HPS lights. In addition to the planned streetlight change out project, Avista is also participating in the Relight Washington program which was recently launched by Washington state’s Transportation Improvement Board (TIB). Through the Relight Washington program, funding is provided directly to small cities owning their own streetlights, helping them convert to LED lights and benefit from the energy saving technology. As part of the program, Avista will help administer a portion of the $6 million in statewide TIB grants that will help qualifying small cities using Avista-owned streetlights benefit from LED technology. Avista and Washington Elementary School Partner for Energy Savings As the result of energy efficiency improvements made to Washington Elementary School in 2015, as well as an on-going partnership between Avista and the Medford School District, Avista presented a check to Washington for approximately $12,500 in energy efficiency incentives in September 2015. The Medford School District completed many efficiency upgrades at Washington, including insulation of flooring which helps the site save energy by maintaining temperature. The insulation retrofit project at Washington is estimated to save the Medford School District over 3,600 therms and $3,000 annually in avoided natural gas consumption. The savings realized, not only from this project but other ongoing conservation efforts District-wide, will be redirected into programs and services for our students. In addition to the energy savings, the District sees educational benefits from these projects. The insulation project will make the classrooms more comfortable by buffering the outside weather conditions. Without the energy efficiency rebate provided by Avista, the Medford School District would not have been able to complete this project. Avista offers a number of energy efficiency programs for residential and commercial customers as a tool to help reduce their energy usage and resulting costs. Avista offers a number of energy efficiency programs for residential and commercial customers as a tool to help reduce their energy usage and resulting costs. These tariff-based programs have been offered for over three decades because it generally costs less to help customers reduce their usage through energy efficiency programs than to acquire additional, more costly energy resources. These tariff-based programs have been offered for over three decades because it generally costs less to help customers reduce their usage through energy efficiency programs than to acquire additional, more costly energy resources. The energy efficiency programs offered by Avista provide a great opportunity to assist our local schools as they achieve their energy efficiency goals and increase the sustainability of a valued community resource. WNIDCL_PR_037(AVA) Attachment A Page 15 of 115 14WNIDCL_PR_037(AVA) Attachment A Page 16 of 115 15 Wind Storm 2015 On Tuesday, Nov. 17, 2015, a National Weather Service- predicted wind storm hit eastern Washington, northern Idaho and western Montana. By 3:00 p.m. that day, Avista customers began to experience outages due to downed power lines and blown transformers. The near hurricane-force winds progressed through the afternoon and evening, before lessening around midnight. By that time, 178,210 Avista customers (nearly half of the customers we serve) were without electric service, making it the largest service crisis we have ever experienced. Avista normally maintains 28 crews in service across our entire organization. Additional contract crews arrived on the scene within a day of the windstorm event, and after six days, 132 crews were deployed to restore power to customers. Electricity wasn’t the only energy source affected by the windstorm. Natural gas operations in Spokane and Coeur d’Alene received 73 trouble orders from late Tuesday to Wednesday morning. Uprooting trees ruptured and exposed natural gas lines, and gas meters were damaged by falling trees. Over 30 Avista employees worked throughout the night to secure the natural gas system and ensure public safety. Avista communication teams managed 174 inquiries from local, regional and national media outlets, including NBC, CBS, ABC and Fox news, in addition to the Associated Press (Washington, D.C.) and the Seattle Times; and handled 75 Facebook posts, 4,750 post responses, and 8,250 direct messages, with a total Facebook reach of over 1.5 million readers. Online outage maps were continually updated showing where power was out and where it had been restored. 837,767 customer visits were made to the outage maps. In total, the Avista Utilities website handled 3.6 million minutes (that’s 60,000 hours) of customer engagement, keeping people informed through the largest crisis in Avista’s 126-year history. More than 300 Avista employee volunteers from 90 different organizational units were trained and mobilized to work around the clock throughout the restoration effort, helping in any capacity necessary. At least 50 Avista volunteers in non-critical positions worked with other community volunteers going door-to-door in areas hardest hit by the windstorm to check on vulnerable customers without power to ensure that they were OK or helped them receive the resources they needed to stay safe. Avista pledged more than $94,000 to fund shelters and warming centers and to provide emergency food and other emergency services, including home repairs as part of the service restoration process. As the restoration stretched into the Thanksgiving holiday, 45 Avista volunteers assisted in a local television station’s Turkey Drive, where Avista provided 1,000 meals to people in need. 3,000 customers who were expected to be without power on Thanksgiving Day received grocery store gift cards from Avista in recognition of their hardship and to thank them for their perseverance. The environmental impact of the windstorm was substantial, with 241 transformers recovered, 119 environmental spill site locations cleaned-up, with zero penalties or violations cited. It took more than 30,000 man-hours to restore power under extremely demanding conditions. Overall, 482 poles were set, 60 miles of transmission wire was installed, and 6,823 insulators replaced. The repair, restoration and communication work of Avista employees was unprecedented. It showed us how effective our planning, technologies, support, logistics, safety procedures and communications could be. Avista is grateful for our dedicated team, our patient and understanding customers, and the resourceful communities we serve, who helped one another through the aftermath of this devastating wind storm. On Nov. 17, 2015, a National Weather Service-predicted wind storm hit eastern Washington, northern Idaho and western Montana. By 3:00 p.m. that day, Avista customers began experiencing power outages due to downed power lines and blown transformers. WNIDCL_PR_037(AVA) Attachment A Page 17 of 115 16 Inside Our Operations AVISTA CORP. TOTAL ANNUAL REVENUE Organizational Profile Selected Company Statistics (as of Dec. 31, 2015) AVISTA CORP. NET INCOME AVISTA UTILITIES NUMBER OF EMPLOYEES POPULATION OF SERVICE AREA $1,484,776,000 $123,227,000 1,711 NUMBER OF CUSTOMER ACCOUNTS COMMERCIAL/INDUSTRIAL NATURAL GAS RESIDENTIAL — ELECTRIC COMMERCIAL/INDUSTRIAL — ELECTRIC RESIDENTIAL — NATURAL GAS 327,235 42,649 296,00534,490 1.6 million WNIDCL_PR_037(AVA) Attachment A Page 18 of 115 17WNIDCL_PR_037(AVA) Attachment A Page 19 of 115 18 Customer Satisfaction Customer satisfaction is an essential element in all we do at Avista. From our Call Center representatives who seek to provide answers in 60 seconds or less to the line workers and servicemen in the field and from finance to environmental, every Avista employee has an impact on our interactions with customers. We set clear customer satisfaction goals for our company, have established metrics for tracking this and provide our employees the tools needed to be successful. One way we measure customer satisfaction is through a quarterly survey — “Voice of the Customer” — to measure and track the satisfaction of customers who have contact with Avista through the Call Center and/or work performed through an Avista construction office. Customers are asked to rate the importance of several key service attributes (time for connection to a representative, representative being courteous and friendly, representative being knowledgeable, being informed of job status, leaving property in condition found, etc.) and then to rate Avista’s performance with respect to the same attributes. Customers are also asked to rate their satisfaction with the overall service received from Avista. Customer verbatim comments are also captured and recorded. Customer satisfaction ratings have exceeded 90 percent in each of the past 16 years. A Diverse Generation Mix Avista uses different kinds of fuel to produce the electricity that powers the lives and businesses of our customers. The company maintains a diversified generation portfolio, including hydroelectric, biomass, natural gas, coal and wind that is a combination of Avista-owned generating facilities and long-term contracts. We choose a diverse energy mix that is the foundation for providing our customers with clean, reliable power at fair, reasonable prices. Making decisions about the energy mix must balance reliability, cost and the environment. HYDRO (40% Avista & 8% Contracts) NATURAL GAS (35%) COAL (9%) WIND (6%) BIOMASS (2%) WNIDCL_PR_037(AVA) Attachment A Page 20 of 115 19 The company complies with renewable portfolio standards set out in Washington’s Energy Independence Act (EIA) by using qualified renewable resources, renewable energy credits (RECs) or a combination of both to meet the following annual targets: 9 percent of energy used to meet customer load in Washington by Jan. 1, 2016 and 15 percent by Jan. 1, 2020. Avista met the 2015 targets with qualifying hydroelectric upgrades. In addition, to meet future requirements, we helped facilitate a change to the EIA in 2012 to qualify energy generated from biomass at our Kettle Falls plant beginning in 2016. Electric and Magnetic Fields — a Public Health Discussion As Avista prepares to join many other utilities across the country and deploy advanced meters in Washington, some people may wonder whether or not exposure to the electromagnetic fields (EMF) associated with radio frequencies (RF) emitted by wireless smart grid technologies pose health risks. It’s important to understand that we now live in a wireless world. Many devices emit RF transmission in our homes, public buildings and private businesses, so we’re exposed to these EMF fields in varying intensity all day long. Based on current research, Avista is confident that the advanced metering and other smart technologies do not pose additional safety or health hazards to our customers. The advanced metering equipment is installed outside the home. The RF power level of advanced meters is comparable to and in most cases significantly lower than those used by many common wireless devices, such as cell phones, baby monitors, garage door openers, wireless routers (Wi-Fi), cordless telephones or other common electronic devices inside homes today. The RF level of advanced meters also falls well below state and federal safety standards, including the exposure standards for wireless devices adopted in 1996 by the Federal Communications Commission. Avista is committed to providing safe and reliable electric service for our customers and a safe work environment for our employees. What are the implications of the resource for our environment? Our diverse energy mix is why Avista is ranked by the National Resource Defense Council in its “Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States” as one of the cleanest utilities when it comes to greenhouse gases. What role does the resource play in making sure the power is there when customers expect? The wind is not always blowing, the sun is not always shining, and hydroelectric output changes throughout the year. Reliability Cost Environment What role does the resource play in customer rates? Some resources are more expensive than others. Having a diverse energy mix also allows us to keep electricity rates as low as possible by providing flexibility to shift between generating resources when it makes economic sense. WNIDCL_PR_037(AVA) Attachment A Page 21 of 115 20 Serving Our Customers with Natural Gas The natural gas pipeline replacement program currently underway is a result of Avista’s commitment to maintain a safe and reliable natural gas pipeline system. Over the life of the 20-year program, we will replace approximately 737 miles of natural gas pipeline, which was installed prior to 1987. In addition, we are performing preventative maintenance on service taps through a structured replacement program in Washington, Idaho and Oregon. These kinds of stepped programs help control impacts to neighborhoods and manage construction resources more effectively than simply repairing leaks as they occur or are discovered through annual leak surveys. Avista provides natural gas services to more than 330,000 customers in eastern Washington, northern Idaho and parts of southern and eastern Oregon and maintains 7,700 miles of natural gas distribution pipeline on behalf of the communities and residences throughout our service area. WNIDCL_PR_037(AVA) Attachment A Page 22 of 115 21 Pullman Clarkston La Grande Moscow Lewiston Grangeville Kettle Falls Sandpoint Klamath Falls Medford OthelloOlympia Salem Boise Goldendale Roseburg Stevenson HelenaMissoula Portland Seattle AVISTA SERVICE TERRITORY Electric and Natural Gas Natural GasAEL&P SERVICE TERRITORY Electric Juneau Sitka Anchorage Ketchikan Coeur d’ Alene Noxon Spokane OREGON IDAHO ALASKA WASHINGTON MONTANA WNIDCL_PR_037(AVA) Attachment A Page 23 of 115 22 The 2015 Electric Integrated Resource Plan Over the next 20 years, Avista anticipates adding almost 90,000 retail customers with a 0.6 percent annual growth in electric demand. The utility plans to meet this growth with a mix of new natural gas-fired generation resources, efficiency upgrades at existing generation facilities and various energy efficiency measures. The IRP describes strategies to meet projected energy demand and renewable portfolio standards through energy efficiency and a careful mix of energy resources. This plan helps us balance meeting customers’ needs for safe, reliable energy with satisfying renewable portfolio standards over the next 20 years. The plan calls for Avista to continue system upgrades and improvements to deliver energy to our customers efficiently and reliably. It calls for Avista to obtain new resources in a responsible and environmentally sound manner and at a reasonable cost to our customers. Each IRP is a thoroughly researched and data-driven document to guide responsible resource planning for the utility. The IRP is updated every two years and looks 20 years into the future. Avista’s 2015 electric IRP was filed with the Washington and Idaho state commissions on August 31, 2015. Highlights of the plan include: • Population and employment growth is starting to recover from the Great Recession. • Natural gas-fired plants represent the largest portion of generation potential. • The first anticipated resource acquisition is a natural gas-fired peaker by the end of 2020 to replace expiring contracts and to serve load growth. • Colstrip remains a cost effective and reliable source of power to meet future customer needs. • Energy efficiency offsets more than half of the projected load growth through the 20-year timeframe. The 2015 Preferred Resource Strategy The 2015 Preferred Resource Strategy (PRS) is a plan for a mix of additional energy efficiency, upgrades at existing generation and distribution facilities and new natural gas-fired generation. A contract for the power from the Palouse Wind project located near Oakesdale, in southeast Washington, and the addition of Kettle Falls as a qualified renewable energy facility, will fulfill Avista’s PRS obligations through the end of this IRP. Avista’s first thermal acquisition would be a natural gas-fired peaking plant in 2020; total natural gas-fired acquisitions from new and upgraded resources is expected to be 565 MW over the IRP timeframe. The 2015 plan splits natural gas- fired generation between simple and combined cycle plants in anticipation of a growing need for system flexibility to integrate variable resources such as wind. Estimated total capital needs for generation resources in the PRS are $682 million over the next 20 years. Conservation and system efficiency spending will increase over time; a total of $459 million will acquire 125 aMW over 20 years. The 2017 Electric Integrated Resource Plan The 2017 Electric IRP is currently in process and will be published in August 2017. It will be available on our website at www.avistautilities.com/inside/resources/irp/ electric/Pages/default.aspx Resource Planning Avista’s biennial Integrated Resource Plans (IRP) for electric and natural gas services guides the utility’s resource acquisition strategies and the overall direction of resource procurements for a 20-year planning horizon. It is a key part of how we plan for and determine how to meet the future energy needs of our customers. The IRPs provide a snapshot of the company’s resources and forecasted loads and guidance regarding resource needs and acquisitions. Avista’s management, along with stakeholders from the Technical Advisory Committee (TAC), play a key role in guiding the development of the IRP. TAC members include customers, commission staff, consumer advocates, academics, utility peers, government agencies, environmental groups and other interested parties. The TAC provides significant input on modeling, resource assumptions and the general direction of the planning process. Public participation is an important part of the IRP development process. The experience of this group provides a robust forum for the exchange of ideas and discussion of issues and risks that affect the planning process. Regulators in Washington, Idaho and Oregon ensure that reliability, environmental impact, conservation, efficiency, and cost are factored into our forecasting and ultimately the decisions we make on behalf of our customers. WNIDCL_PR_037(AVA) Attachment A Page 24 of 115 23 The 2014 Natural Gas Integrated Resource Plan The IRP for our natural gas operations was filed in August of 2014. The IRP identifies a strategic natural gas resource portfolio that includes both supply-side and demand-side resources to meet customer’s needs for the next 20 years in a safe, reliable and least-cost manner considering multiple levels of uncertainty. To meet this goal, our philosophy is to develop a plan that incorporates an appropriate balance of price certainty and prudent cost management utilizing our portfolio of supply contracts, storage and firm pipeline capacity rights. We work collaboratively with our Technical Advisory Committee (TAC), which is comprised of members from regulatory staff, industry stakeholders, customers, peer utilities, and company representatives from several departments. Avista’s 2014 natural gas IRP was filed with the Washington, Idaho and Oregon state commissions on Aug. 29, 2014. Highlights of the plan include: • Avista has sufficient natural gas resources to meet customer needs well into the future. • There is no expected resource need in Washington, Idaho or Oregon during the 20 year planning horizon. • Demand continues to be lower than previous plans, driven by lagging economic recovery and declining use per customer across our service territory. • This prolonged flat demand poses a risk that should load growth increase sooner or greater than expected the need for additional resources would accelerate. • The long-term forecasted price of natural gas remains relatively low, and while this is good for customers, it challenges the cost-effectiveness of natural gas demand side management programs. WNIDCL_PR_037(AVA) Attachment A Page 25 of 115 24 Energy Efficiency and Conservation Programs Avista has more than 30 years of experience in offering Demand Side Management (DSM) or energy efficiency programs, creating shared value for our residential, commercial/industrial and limited-income customers. To our customers, DSM means managing energy use from the customer side of the meter. For Avista, it also means implementing programs that help customers use less energy as well as ways Avista can generate energy, through better equipment and processes. DSM also involves much, much more. It’s how we plan, implement, measure and monitor energy efficiency as a way to ensure it’s being used wisely. At Avista, we make choices everyday about the best and most affordable source of energy to deliver to our customers. Energy efficiency gives us one more choice—and one that is lower cost. This is why it is an important element of our Integrated Resource Plan as we look to the future. Our approach to energy efficiency is based on two key principles: to pursue cost- effective electric and natural gas energy savings by offering financial incentives for limited qualifying energy saving measures, and to use the most effective means to deliver energy efficiency services to customers. These mechanisms are varied and include: • Prescriptive programs or “standard offers” such as high efficiency equipment rebates; • Site-specific or “customized” analyses at commercial and industrial customer premises; • “Market transformational”, or regional, efforts with other utilities; • Low-income weatherization services through local Community Action Agencies; • Robust multichannel communication efforts to build awareness of programs and low- cost/no-cost advice. Avista has more than 30 years of experience in offering Demand Side Management (DSM) or energy efficiency programs, creating shared value for our residential, commercial/ industrial and limited- income customers. WNIDCL_PR_037(AVA) Attachment A Page 26 of 115 25 Washington and Idaho DSM Programs and Outcomes Avista’s DSM services provide energy efficiency programs to the company’s Washington electric and natural gas customers and Idaho electric customers funded through the DSM Tariff Rider. Avista’s DSM programs delivered 51.3 MWh and nearly 920,000 therms in efficiency savings in 2015. This achieved 91 percent of the company’s electric Integrated Resource Planning (IRP) goal and 61 percent of Avista’s natural gas IRP goal. In 2015, Avista made a request with the utility commission in Idaho to resume natural gas energy efficiency programs, effective in 2016. Approximately 64 percent of the 2015 local program expenditures of $19.4 million were returned to customers in the form of rebates toward energy efficiency measures installed. In addition to these local programs, Avista funds regional programs, in partnership with other utilities, through the Northwest Energy Efficiency Alliance (NEEA) to deliver additional savings to the company’s customers. Including NEEA funds, 2015 energy efficiency funding was over $21.5 million. We work in partnership with our Advisory Group, which is comprised of a wide variety of industry and regulatory professionals, and the dedication of experienced, talented and professional staff. During 2015, nearly 7,400 rebates for residential energy efficiency projects were processed benefiting approximately 4,500 households. Over $6.5 million in rebates were provided directly to residential customers to offset the cost of implementing energy efficiency upgrades. Residential programs, including third party vendor programs, contributed 26.3 MWh and approximately 357,000 therms in energy savings. For non-residential customers, the company processed approximately 980 energy efficiency project submissions in 2015, resulting in the payment of $5.9 million in rebates paid directly to customers to offset the cost of their energy efficiency projects. These projects contributed 25.0 MWh and over 563,000 therms in savings. Oregon DSM Programs and Outcomes Avista provides only natural gas to customers in our Oregon service territory. The company’s DSM portfolio is divided between four segments: residential weatherization, residential equipment, low income weatherization and commercial/light industrial. Of the total DSM goal, residential weatherization is 9 percent, residential equipment is 38 percent, low income weatherization is 3 percent and commercial/light industrial is 50 percent. The 2015 target from the Integrated Resource Plan (IRP) called for savings of 161,000 therms. The combined results for all programs totaled 207,036 therms — a 7.8 percent increase over 2014 results and approximately 28.6 percent over the 2015 IRP goal. Approximately 62.2 percent of Avista’s 2015 DSM expenditures were returned to customers in the form of direct incentive payments. In addition, program participants received the benefits of over $66,000 in commercial and residential energy audits, which raises the value of the return to customers to 65.2 percent. Energy Efficiency In Avista’s Facilities Avista practices energy conservation and efficiency in our buildings and facilities. The focus of these efforts is to reduce energy consumption and manage energy costs while providing comfort to building occupants. Over the last few years, Avista has made great strides in improving energy efficiency and reducing annual energy usage in our facilities through a number of different projects. Some of these projects have included: • Lighting retrofit projects in a number of areas to reduce kWh usage and take advantage of more efficient lighting fixtures; • Replacing aging HVAC systems to improve energy efficiency and take advantage of the controls that new technology offers; and • Upgrading to high efficiency windows, providing better insulation and helping to reduce heat gain in the summer months. Approximately 64 percent of the 2015 local program expenditures of $19.4 million were returned to customers in the form of rebates toward energy efficiency measures installed. WNIDCL_PR_037(AVA) Attachment A Page 27 of 115 26 Distributed Generation: Solar Avista is embracing the opportunities that distributed generation brings for our customers and the utility. One area that reflects this is our efforts around solar generation in 2015. Solar Concierge In 2015, we implemented functionality on our website that allows customers to evaluate the feasibility of rooftop solar on their premises. This tool helps customers compare the cost of service from Avista to costs of rooftop solar, incorporating state and federal incentives that are available for such installations. Community Solar In 2015, we installed a community solar project in Spokane, Washington that allows Avista’s Washington residential customers to participate in solar and receive bill credits to offset their energy use while also helping the environment and supporting Washington’s renewable energy initiatives. The Movement Toward Distributed Generation The utility industry has seen broad adoption of distributed generation, with the majority of that being rooftop solar installations. Adoption rates vary throughout the United States. In Avista’s service territory, less than 500 customers (or about 0.1%) have distributed generation installed. The relatively low adoption rate in Avista’s service territory, and across the Pacific Northwest more broadly, is primarily attributed to the lower utility retail rates in the region and the less favorable solar profile that exists. Avista recognizes the potential opportunities and risks associated with further penetration of distributed generation and is evaluating opportunities with respect to solar generation. In our Integrated Resource Plan, which is filed every two years, we evaluate distributed, community, and grid- scale solar as an alternative to other more traditional sources of generation. We also consider how growing adoption of rooftop solar could impact our customers’ consumption patterns in the future. We will continue to monitor and assess how changes in the costs of solar generation, changes in federal and state incentives, changes in customer preferences related to solar generation, and changes in our retail rates impact the viability of solar generation as a resource at the premise, community, and utility-scale levels, and our Integrated Resource Plan will reflect that analysis going forward. WNIDCL_PR_037(AVA) Attachment A Page 28 of 115 27 In 2015, we implemented functionality on our website that allows customers to evaluate the feasibility of rooftop solar on their premises. This tool helps customers compare the cost of service from Avista to costs of rooftop solar, incorporating state and federal incentives that are available for such installations. WNIDCL_PR_037(AVA) Attachment A Page 29 of 115 28WNIDCL_PR_037(AVA) Attachment A Page 30 of 115 29 Supply Chain Avista is committed to maximizing the value created through timely and effective supply chain services to meet our needs and the needs of the customers and communities we serve. We strive to ensure a competitive contracting environment while developing strong partnerships with our suppliers. We engage with suppliers who meet our requirements, with a particular interest in their capabilities, price and the overall value they provide for our organization and customers. We focus on building and maintaining diverse supplier relationships, keeping things local when possible and providing opportunities for our contractors to develop their capabilities that align with our business needs. Avista’s Supplier Recognition Program was created in 2015 to annually recognize our top performing suppliers in a formal way. We have approximately 30 companies that have been selected to participate in Avista’s supplier scorecard program and each has the potential to earn a “top performer” designation via their official scorecard results. Each spring, one contractor, supplier and professional service provider receive an engraved commemorative hardwood plaque to affirm Avista’s genuine appreciation of outstanding service and performance. The primary goal of this endeavor is to highlight specific areas of accomplishment as well as demonstrate the significant value of aligned goals and the required collaborative efforts to attain them. IN 2015 WE SPENT$161,082,866 34.13%or AND SERVICES SPEND IN OUR COMMUNITY OF OUR TOTAL GOODS IN 2015 WAS$18,311,418 3.77%or SERVICES TOTAL SPENDOF OUR GOODS AND DIVERSITY SPEND 29WNIDCL_PR_037(AVA) Attachment A Page 31 of 115 30 Engaging Our Stakeholders Identification of Stakeholders Avista engages a diverse array of stakeholders, in different settings, depending on the specific need or business context. Effective stakeholder engagement improves our business decisions and our overall performance. Our stakeholders include residential, commercial and industrial customers; investors, financial analysts, credit rating and financial institutions; active and retired employees; residents of the communities we serve and those of neighboring cities and towns; non-profit and low income advocates; environmental groups; federal and state regulators; vendors; elected officials; media channels; and other companies in the energy industry. Approaches to Stakeholder Engagement Across the company, Avista values the interaction we have with our stakeholders. Some of these interactions are: • Issue-Focused Meetings with key groups e.g. Technical Advisory Committees, Energy Efficiency Advisory Group, regulatory hearings, community town hall meetings, etc.; • Customer Outreach with Two-Way Communications — issue-focused emails, social media channels (Facebook, Twitter, Avista blog), listening posts, focus groups, surveys, community meetings, print and electronic media channels, electronic and print newsletters, bill stuffers, call-in information lines, etc.; • Customer Satisfaction Surveys — asking 1,600 residential and business customers each year who have completed a transaction with the company to report on components of the interaction as well as Avista works with federal and state agencies, conservation organizations, and area tribes to bring a variety of perspectives and interests to the table in implementing federal and state mandated environmental measures associated with our dams on the Spokane and Clark Fork rivers. WNIDCL_PR_037(AVA) Attachment A Page 32 of 115 31 their overall satisfaction. In addition, we subscribe to J.D. Power for customer satisfaction information, and Avista conducts an annual survey to assess perceptions and attitudes about the company. • Regular Meetings with Media Editors and Staff to discuss industry and utility issues and a commitment to rapidly responding to media inquiries. Key Topics Raised by Stakeholders Customers have told us their key concerns include power outages and restoration, energy pricing, customer service and executive compensation. We have developed a comprehensive, multi-channel customer communication program which is intended to provide more information about these topics and increase customers’ awareness of the rate-making process, rate components, energy efficiency, energy assistance, ongoing investments we make in our infrastructure and what Avista is doing to manage our costs. community groups and customers. For our energy planning and infrastructure development, the electric and natural gas Technical Advisory Committees (TACs) provide opportunities for input from three main groups of stakeholders. These groups include 1) those who provide technical input and review of the resource options, modeling and results (utility commission staff, other utilities, academics and consultants); 2) those who have an interest in a particular aspect of our Integrated Resource Plan (environmental groups, resource developers and government agencies); and 3) members from regional planning organizations (Northwest Power and Conservation Council). In addition, we are in partnership with our energy efficiency Advisory Group which is comprised of a wide variety of industry and regulatory professionals, as well as Avista staff members. This group advises us on planning and implementing a broad range of energy efficiency programs. Stakeholder Participation in Decision Making for Energy Planning and Infrastructure Development We seek out and encourage stakeholder involvement in our activities on a regular basis on a variety of issues, including transmission and distribution projects, implementing vegetation management programs and the requirements of our hydroelectric licenses. Avista works with federal and state agencies, conservation organizations, and area tribes to bring a variety of perspectives and interests to the table in implementing federal and state mandated environmental measures associated with our dams on the Spokane and Clark Fork rivers. Representatives of federal and state agencies address issues such as water quality, endangered species and fish passage. Tribal representatives are concerned with protecting the area’s cultural and natural resources. Other stakeholders represent local non-profits, WNIDCL_PR_037(AVA) Attachment A Page 33 of 115 32 Business Continuity Planning Avista operates in a part of the country where heavy snows, ice storms, fire storms, volcanoes, floods and earthquakes are genuine probabilities. In addition to these natural threats to normal business operations, Avista must also consider possible man-made threats such as sabotage, terrorism and cyber-related issues. To ensure our continued utility and business operations, we have implemented an enterprise incident management response program. Our incident response, business continuity and disaster recovery plans are designed to safeguard life and property. They are also designed to provide for the restoration of electric and natural gas services and the continuation of business functions critical to the support of Avista operations in case of natural disasters, accidents or other realized threats to the company. Incident Management Avista has formally adopted and implemented the Incident Command System (ICS) as the means by which all emergencies will be managed. In recent years, the ICS methodology has been widely adopted across many utilities and is required among local, state and federal agencies. Use of this standardized incident management process ensures Avista is better prepared for and better positioned for rapid response, restoration and recovery during an interruption, whether a service outage or a disruption to business. Avista is also able to integrate with local emergency responders as well as partner utilities under the ICS framework. WNIDCL_PR_037(AVA) Attachment A Page 34 of 115 33 Emergency Operating Plan (EOP) Avista has developed Emergency Operating Plans (EOPs) to respond to varying types of incidents from utility outages, cyber security breaches and internal incidents such as fires, or other unplanned emergencies. Each EOP aligns with the use of ICS. These plans are designed to enable Avista operations to successfully respond to an emergency or severe disruption, resuming operations in a timely and orderly fashion. Emergency response activities are focused on responding to the initial event and subsequent impacts in an effort to prevent further damage to life, property, and the environment, and to stabilize the situation by activating recovery and back-up processes and procedures. The plans are exercised regularly. During the major windstorm in November 2015, Avista activated the EOP for major storm response and this served as an effective way to manage operations until all customers were restored to power. Enterprise Business Continuity Program (EBCP) Avista has developed an Enterprise Business Continuity Program (EBCP) to facilitate and administer emergency operating plans, business continuity and disaster recovery plans and activities simultaneously across multiple departments in response to any scope of disruption to normal business operations. It serves as the governing structure for the coordination of Avista’s EOPs during an emergency response situation, using ICS for enhanced coordination, planning and response execution. Business continuity and disaster recovery activities may occur concurrently with the emergency response activities of the EOPs and are focused on sustaining Avista’s critical business processes. Our EBCP ensures that emergency response activities occur in a coordinated and timely fashion, maximizing resources and reducing further disruption to normal business operations. Emergency Action Plans (EAPs) Even though the probability of a major structural emergency at any Avista hydroelectric facility is remote, we have developed Emergency Action Plans (EAPs) to help ensure public safety at our hydroelectric facilities. The plans are designed to minimize potential dangers to people and property downstream of the dams. Based on computer simulations of catastrophic failures at each site, the EAPs provide guidelines for notification and early warning in the event of an actual or potential dam breach. Each EAP is evaluated annually and exercised and revised every five years. Business Continuity Plans Avista prepares and regularly updates Business Continuity Plans (BCP) for its critical business functions. The BCPs include incident response, crisis communications and business specific recovery procedures. Disaster Recovery Avista has established system and data backup and recovery capabilities to support the recovery of critical business functions. Exercising the Plans Avista exercises its Business Continuity Plans and conducts testing of the disaster recovery site and strategy annually. Alternate Facilities/Work Area Recovery Strategy Avista has implemented an alternate facilities recovery strategy as part of the EBCP to support the relocation of staff and resumption of business should one or more facilities be impacted by an event. Enterprise Business Continuity Program Management Avista employs a cross-section of subject matter experts, including a Certified Business Continuity Professional, that participate in the maintenance, exercise and review of the program and specific plan elements to ensure that Avista maintains the highest standards for business continuity. Board of Directors Updates The EBCP objectives and results are reported to the board of directors annually. WNIDCL_PR_037(AVA) Attachment A Page 35 of 115 34 Utility Opertions — By the numbers Installed Capacity, Generation Capability Net Energy Output by Primary Energy Source Present Generating Nameplate Rating Net Energy Capability (MW) (Installed Capacity) (MW) Output (MWh) Hydro Projects Upper Falls 10.2 10.0 38,000 Monroe Street 15.0 14.8 84,000 Nine Mile 17.5 26.4 67,000 Post Falls 18.0 14.8 73,000 Little Falls 35.2 32.0 148,000 Long Lake 89.0 81.6 394,000 Cabinet Gorge 270.5 265.2 995,000 Noxon Rapids 610.0 518.0 1,635,000 Total Hydro 1,065.4 962.8 3,434,000 Thermal Projects Kettle Falls GS 50.0 50.7 321,000 Kettle Falls CT 6.9 7.2 4,000 Boulder Park 24.0 24.6 22,000 Coyote Springs 2 278.3 287 1,892,000 Northeast CT 56.3 61.8 1,000 Rathdrum CT 149.0 166.5 53,000 Colstrip Units 3 & 4 222.0 233.4 1,690,000 Total Thermal 786.5 831.2 3,983,000 Total Generation Properties 1,851.9 1,794.0 7,417,000 WNIDCL_PR_037(AVA) Attachment A Page 36 of 115 35 Plant Name Energy Source Heat Rate (Btu/kWh) Boulder Park Natural Gas 9,025 Colstrip Units 3 & 4 Coal 11,950 Coyote Springs 2 Natural Gas 6,730 Kettle Falls Biomass 13,500 Kettle Fall CT Natural Gas 8,750 Northeast Natural Gas 12,825 Rathdrum Natural Gas 11,950 2015 Average Plant Availability by Energy Source Plant Energy Source 2015 Availability Boulder Park* Natural gas 90.1% Colstrip Units 3 & 4 Coal 94.3% Coyote Springs 2 Natural Gas 95.1% Kettle Falls Biomass 87.3% Kettle Falls CT Natural gas 96.6% Rathdrum* Natural Gas 96.0% Northeast CT* Natural gas 96.0% *Peaker unit — used only in times of significant energy demand Average Generation Efficiency of Thermal Plants by Energy Source Thermal generation is approximately 44 percent of Avista’s total generation capability. Each facility has a specific purpose in Avista’s diversified generation portfolio — whether it is for economic or load demand efficiencies. WNIDCL_PR_037(AVA) Attachment A Page 37 of 115 36 Electric Miles Transmission Lines 230kV 685 115kV 1,565 500kV 500 Distribution lines 19,000 Natural Gas Miles Natural gas distribution mains 7,700 Avista does not own any interstate natural gas transportation pipelines, only contractual rights, and receives natural gas at over 60 points along interestate pipelines. Electric And Natural Gas Loads Electric average hourly load (aMW) 1,047 Peak electric native load (aMW) Summer (retail) 1,638 Winter (retail) 1,529 Peak natural gas day demand (Dth) 241,164 Length of Above and Underground Transmission and Distribution Lines WNIDCL_PR_037(AVA) Attachment A Page 38 of 115 37 Plant 2015 Annual Water Use Discharge Per NPDES* Permit Boulder Park — Natural Gas Domestic use only Zero discharge facility Colstrip Units 3 & 4 — Coal 5.0 billion gallons Zero discharge facility Coyote Springs 2 — Natural gas CT 34.4 million gallons Port of Morrow, Ore. discharge Kettle Falls — Biomass/Natural Gas 273 million gallons 57.2 million gallons Northeast — Natural Gas Domestic use only Zero discharge facility Rathdrum — Natural Gas Domestic use only Zero discharge facility * National Pollution Discharge Elimination System Reliability 2015 2014 2013 2012 2011 Average outage restoration time (minutes) 155 125 132 121 108 Average outages per customer 1.05 1.11 1.05 1.14 1.48 Total Water Discharge by Quality and Destination — Thermal Generation WNIDCL_PR_037(AVA) Attachment A Page 39 of 115 38 Direct and Indirect Energy Consumption of Thermal Generating Resources Source Fuel Equity/Control Total Units Gigajoules Kettle Falls Boiler Wood 100% 433,546.00 Tons 3,891,029.83 Colstrip Units 3 & 4 Coal 15% 1,063,105.00 Tons 19,110,574.01 Colstrip Units 3 & 4 Oil 15% 1,768.00 Bbl 10,976.66 Rathdrum Natural Gas 100% 627.07 MMscf 680,641.15 Northeast Natural Gas 100% 13.83 MMscf 15,015.90 Boulder Park Natural Gas 100% 200.973 MMscf 218,143.00 Coyote Springs 2 Natural Gas 100% 12,834.12 MMscf 13,930,594.83 Kettle Falls Combustion Turbine (CT) Natural Gas 100% 4.73 MMscf 5,131.93 2015 Preferred Resource Strategy Resource By the End of Year Nameplate (MW) Energy (MW) Natural Gas-Fired Peaker 2020 96 89 Thermal Upgrades 2021-2025 38 35 Combined Cycle CT 2026 286 265 Natural Gas-Fired Peaker 2027 96 89 Thermal Upgrades 2033 3 3 Natural Gas-Fired Peaker 2034 47 43 Total 566 524 Efficiency Improvement By the End of Year Peak Reduction Energy (aMW) Energy Efficiency 2016-2035 193 132 Distribution Efficiencies <1 <1 Total 193 132 WNIDCL_PR_037(AVA) Attachment A Page 40 of 115 39 Public Safety Dig-Ins 2015 2014 2013 2012 2011 Locates 103,574 99,635 92,190 80,629 69,547 Dig-Ins to Avista Underground Gas Lines 474 514 494 517 550 Goal of Number/1,000 Locates 5.36 6 6 7.1 8.26 Actual Number/1,000 Locates 4.6 5.2 5.4 6.4 7.9 National Average 2.99 3.4 3.2 3.8 3.7 Energy Efficiency — Avista Facilities — Spokane, WA Electric (kWh) Use Reduction kW h ( i n t h o u s a n d s ) 900,000 800,00 700,000 600,000 500,000 400,000 300,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Avista has achieved efficiencies and reduction of electric use in its facilities over time. In 2013, electric use did not decline as much as years past due to the operation of a new warehouse and utilization of previous warehouse space, which increased the heating and cooling load. WNIDCL_PR_037(AVA) Attachment A Page 41 of 115 40 Energy Efficiency Programs — Customer Savings Washington/Idaho 2015 2014 2013 2012 2011 Electric (kWh Saved) Residential 26.3 million 43.5 million 13.5 million 18.8 million 12.8 million Non-Residential 25.0 million 24.4 million 45.2 million 59.1 million 49 million Natural Gas (Therms Saved) Residential 356,549 429,416 255,211 440,000 911,811 Non-Residential 563,343 261,888 337,939 400,000 975,704 2015 OPUC Target Achieved Savings % of Oregon (Therms) (Therms) Target Existing Residential State-Mandated Weatherization 20,000 18,007 90% Prescriptive Residential Equipment 61,000 86,058 141% Residential DSM Portfolio Total 81,000 104,065 128% Existing Commercial/Industrial Commercial/Industrial DSM 80,000 102,971 129% Grand Total 161,000 207,036 129% 2014 OPUC Target Achieved Savings % of Oregon (Therms) (Therms) Target Existing Residential State-Mandated Weatherization 60,000 25,901 43% Prescriptive Residential Equipment 90,000 80,697 90% Residential DSM Portfolio Total 150,000 106,598 71% Existing Commercial/Industrial Commercial/Industrial DSM 100,000 85,471 85% Grand Total 250,000 192,069 77% WNIDCL_PR_037(AVA) Attachment A Page 42 of 115 41 Energy Efficiency Programs — Customer Savings 2013 OPUC Target Achieved Savings % of Oregon (Therms) (Therms) Target Previous Residential State-Mandated Weatherization 76,257 62,382 82% Prescriptive Residential Equipment 49,996 83,189 166% Residential DSM Portfolio Total 126,253 145,571 115% Previous Commercial/Industrial Commercial/Industrial DSM 98,746 71,606 73% Grand Total 224,999 217,177 97% 2012 IRP Target Achieved Savings % of Oregon (Therms) (Therms) Target Previous Residential State-Mandated Weatherization 98,402 85,771 87% Prescriptive Residential Equipment 98,402 98,355 100% Residential DSM Portfolio Total 196,804 184,126 94% Previous Commercial/Industrial Commercial/Industrial DSM 119,998 93,276 78% Grand Total 316,792 277,402 88% WNIDCL_PR_037(AVA) Attachment A Page 43 of 115 42 Environmental Stewardship It means we are responsible in our operations and strive to protect and enhance the environment. It is a commitment that has been integral to our operations since we were founded on the banks of the Spokane River in 1889. The conversation about being green or sustainable isn’t new, but it continues to be a complex issue throughout the energy industry. Our approach today is consistent with the way we’ve done things for over a century. For Avista, environmental stewardship means conducting our business in ways that honor the integrity of the natural resources in the areas we serve. WNIDCL_PR_037(AVA) Attachment A Page 44 of 115 43 Strive At Avista, we: Invest Listen Promote Protect Connect to surpass environmental laws and regulations in practicing practical stewardship in the best interest of the environment and our communities. to and collaborate with our stakeholders. We serve as a convener, partner and participant when addressing environmental issues and adapt to be effective. in technology that supports a clean energy future and aligns with customer expectations. You’ll read more about our community solar project and developments with electric vehicles and compressed natural gas serving fleet. people to natural resources through education about recreation opportunities, outreach about how to stay safe in the water and around dams, and by increasing and improving public access to the rivers. wildlife and fish in the areas we serve through fish passage efforts, restoring and conserving habitat, and more. water quality to support habitat and benefit all those who use and rely on our rivers. 43WNIDCL_PR_037(AVA) Attachment A Page 45 of 115 44 Community Solar Program Opens Solar Generation to Washington Electric Customers In May, 2015, Avista announced plans to partner with Colorado-based community solar developer Clean Energy Collective (CEC) to construct a 425 kW community solar site at Avista’s Boulder Park property located in the City of Spokane Valley. In October 2015, Avista hosted a grand opening and ribbon cutting, celebrating the completion of the building of the solar array and the panels being online and serving customers. The 1,512 panel installation allows upwards of 500 residential and commercial customers, selected through lottery, to participate in solar energy. The Avista Community Solar program is open to all Avista Washington electric retail customers. Residential and non-residential customers who rent or lease their properties or those with shaded roofs now have an option to buy solar through the subscription of panels. This model furthers Avista’s efforts to adapt for the future and allows Avista customers to participate in solar and receive bill credits to offset their energy use while also helping the environment and supporting Washington’s renewable energy initiatives. Dedicated Electric Vehicle Workplace Charging Makes its Debut at Avista’s Main Campus As Avista explores the expansion of offerings related to electric transportation, dedicated employee charging stations were installed at our main campus to provide greater access and support for those interested in electric vehicles. Reliable workplace charging extends the practical commuting range of all-electric vehicles like the Nissan LEAF, as well as increases the electric miles driven by plug-in hybrid vehicles like the Chevy Volt. In order to better advise our customers, Avista needs to set an example and “learn by doing.” That is one reason why we are a Partner of the DOE’s Workplace Charging Challenge and pledged our commitment to Edison Electric Institute’s (EEI) Employee PEV Engagement Initiative. Avista has offered electric vehicle charging at the main campus for employee and public use for several years. This expands our commitment to electrification and supporting efforts that lower emissions and protect our environment. Avista Partners with the City of Spokane to Fuel New Trucks with CNG The vast majority of natural gas is used by Avista’s nearly 330,000 customers mainly for residential and commercial heating, water heating and cooking uses. However, our company has been a leader in the use of compressed natural gas (CNG) for transportation uses since the mid-1980s. Avista is putting that expertise to work with our own fleet of CNG-fueled vehicles that use the less-expensive and cleaner fuel, which is dispensed from three of our own CNG fueling stations. The City of Spokane recently opened its new Central Service Center which is the home base for the city’s new fleet of CNG-powered garbage trucks. While the fueling station was being completed, Avista provided the city with CNG from an Avista facility under a new Washington state tariff that allows Avista to provide CNG to commercial fleet operators by way of a service contract. Once the City’s CNG facility was complete, it began to purchase natural gas from Avista and convert it to CNG at the new service center. While neither Avista nor the City of Spokane can sell CNG to the public, the use of this alternative fuel makes sense for these fleet vehicles both in terms of keeping costs low and keeping our environment clean. WNIDCL_PR_037(AVA) Attachment A Page 46 of 115 45 Preserving Cutthroat Trout Populations on the Lower Clark Fork River Westslope cutthroat trout are a “species of special concern” (states of Montana and Idaho designations) that occupy the lower Clark Fork River and many of its tributaries. The lower Clark Fork River flows from Montana into Lake Pend Oreille, Idaho approximately 10 miles downstream of Avista’s Cabinet Gorge Dam. This dam blocks upstream fish passage to tributaries within the lower Clark Fork River in Montana that were historically available to westslope cutthroat trout. Avista began the relicensing process for this dam in 1996. One of the outcomes of this process was the development of a Native Salmonid Restoration Plan (NSRP) which addresses the need to improve native trout habitat and their likelihood of persistence. The NSRP also identifies a need to “establish and maintain connectivity in the Clark Fork Basin for migratory trout” in an effort to increase native salmonid numbers in tributaries to the Clark Fork River. Avista and a number of stakeholders, including Idaho Department of Fish and Game, Trout Unlimited and Montana Fish, Wildlife and Parks, have been working collaboratively to address a number of concerns related to westslope cutthroat trout passage since 2006. WNIDCL_PR_037(AVA) Attachment A Page 47 of 115 46 Efforts were made to pass westslope cutthroat trout over Avista’s mainstem Clark Fork River dams beginning in 2006. Avista and a number of stakeholders including Idaho Department of Fish and Game, Trout Unlimited, Montana Fish, Wildlife and Parks, and U.S. Fish and Wildlife Service have been working collaboratively to address a number of concerns related to westslope cutthroat trout passage since that time. In April of 2015, Avista, with the help of local stakeholder groups, began transporting westslope cutthroat trout past Cabinet Gorge Dam. This was the first time in over 60 years that a westslope cutthroat trout that potentially hatched in a Montana tributary and migrated downstream past Cabinet Gorge Dam to mature in Lake Pend Oreille, Idaho, had the opportunity to return to a stream in Montana. Avista worked to radio tag and transport approximately 50 mature westslope cutthroat trout to Cabinet Gorge Reservoir in 2015 and monitor their movements following release to determine if they will enter tributaries to Cabinet Gorge Reservoir to spawn. The first-year results will dictate future transport efforts. With this work, we hope to see an increase in the number of large migratory westslope cutthroat trout both in Montana tributaries and Lake Pend Oreille, Idaho. WNIDCL_PR_037(AVA) Attachment A Page 48 of 115 47 Avista Partners with Agencies to Improve the Clark Fork Delta The loss of land and associated habitat to erosion in the Clark Fork Delta has been a concern to many in the community and surrounding area. As part of Avista’s collaborative relicensing of the Noxon and Cabinet Gorge dams, the rate and cause of this loss was quantified and the role of the dams was understood. With this information in hand, a protection, mitigation and enhancement (PM&E) measure was developed to address the impacts to the Clark Fork Delta as part of the Clark Fork Settlement Agreement, and the license that allows Avista to own and operate these dams. After exploration into potential solutions and their associated costs and based on the lessons learned and demonstrated success of the Pack River Delta restoration project completed in 2009, funding partners, such as Bonneville Power Administration, became available for the Clark Fork Delta Restoration project. Ducks Unlimited, under contract with Idaho Fish and Game, designed and is overseeing construction of the project. A representative from Idaho Fish and Game has spearheaded the effort to include a multitude of partners and volunteers needed to assist with the project. Efforts include installing various erosion control structures along the face of the Delta and main river channel, along with restoration activities that include creating deeper pond areas and higher uplands to increase the diversity of habitat in the area. WNIDCL_PR_037(AVA) Attachment A Page 49 of 115 48 Inside Environmental Stewardship Stewardship of the Waterways Avista protects and improves water quality in the Spokane River watershed as part of our ongoing operations, as well as part of implementing the Spokane River Hydroelectric Project license. We participate in the Washington Department of Ecology’s Total Maximum Daily Load (TMDL) process to improve dissolved oxygen (DO) levels in the Spokane River and Lake Spokane. Under our license, and in coordination with area wastewater dischargers, we developed a plan and are currently implementing it to improve dissolved oxygen levels in Lake Spokane. In addition, we carry out construction and maintenance activities in ways that protect surface and ground waters and which prevent storm water run-off. We handle and store oils and other chemicals in a responsible manner and follow best management practices in our day-to-day operations. WNIDCL_PR_037(AVA) Attachment A Page 50 of 115 49 Spokane River Project Avista owns and operates six hydroelectric plants on the Spokane River. The Spokane River Hydroelectric Project, which is comprised of five of Avista’s Spokane River plants, operates under a 50-year license issued by the Federal Energy Regulatory Commission (FERC). The license includes a variety of measures, many based on multi-stakeholder agreements, designed to protect and enhance natural resources connected with the project and the Spokane River. The sixth plant, Little Falls, is operated under separate authority from the U.S. Congress and an agreement with the Spokane Tribe. Avista, with key stakeholders, continues to implement the FERC license conditions. These collaborative efforts help protect and enhance fish and their habitat, wetlands, water quality, recreational opportunities, wildlife habitat, and cultural and aesthetic resources connected to the Spokane River. Under the terms of a settlement agreement, Avista and the Coeur d’Alene Tribe are working together over the term of the new license and beyond to ensure continued operation of an important hydroelectric resource. Specific 2015 water quality activities on the Spokane River Project included: • Completed the design for the Long Lake Dam Total Dissolved Gas (TDG) Spillway Modification Project to allow for construction in 2016; • Continued implemention of the Lake Spokane Dissolved Oxygen Water Quality Attainment Plan, which focuses on reasonable and feasible measures to improve DO in Lake Spokane; • Provided funding to Idaho Department of Environmental Quality and the Coeur d’Alene Tribe to complete water quality monitoring in Coeur d’Alene Lake and the Upper Spokane River; and • Continued implementing draft tube aeration at Long Lake Dam to improve DO levels downstream. Aeration was used in the summer months to help keep levels above the state standard of 8 mg/L downstream of the dam. The Spokane River Hydroelectric Project, which is comprised of five of Avista’s Spokane River plants, operates under a 50-year license issued by the Federal Energy Regulatory Commission (FERC). WNIDCL_PR_037(AVA) Attachment A Page 51 of 115 50 In 2015, Avista completed the following work on aquatic weeds for the Spokane River Project: • Surveyed Coeur d’Alene Lake’s shoreline and partnered with the Idaho Department of Environmental Quality to survey four bays for milfoil. As part of this project we treated 40 acres of milfoil in Windy Bay and two acres in Mica Bay. This work was completed outside the Coeur d’Alene Indian Reservation and was done in accordance with the Coeur d’Alene Lake Aquatic Weed Management Plan for Non-Tribal Waters; • Worked collaboratively with the Coeur d’Alene Tribe to control milfoil within the Reservation (South end of Coeur d’Alene Lake) on approximately 95 acres; • Partnered with the Lake Spokane Association to treat approximately 40 acres of aquatic weeds with herbicide and completed pre-treatment surveys for the winter reservoir drawdown in Lake Spokane; and • Removed approximately 1,100 individual flowering rush plants in Lake Spokane and Nine Mile Reservoir. In 2015, Avista completed the following work on wetlands related to the Spokane River Project: • Planted approximately 3,500 trees in the Hangman Creek wetland area in Idaho in cooperation with the Coeur d’Alene Tribe; • Continued with the yellow flag iris control efforts and planted 400 trees and shrubs along the five-acre Little Spokane River Wetland Complex, located near the confluence with the Spokane River; and • Implemented the management plan for the 109 acre Sasheen Wetland Area, located in the little Spokane River drainage, by treating approximately 26 acres of reed canarygrass. In 2015, Avista completed the following work on fisheries related to the Spokane River Project: • Partnered with the Washington Department of Fish and Wildlife to complete the sixth year of a 10-year population assessment of redband trout in the lower Spokane River; • Stocked 6,000, 9,000 and 155,000 rainbow trout in Upper Falls, Nine Mile and Lake Spokane, respectively, for family fishing opportunities; and • Partnered with the Idaho Department of Fish and Game to assess additional properties for protection for cold water fish habitat. In 2015, Avista continued to work with local, state and federal agencies to improve and/or manage public recreation sites and opportunities that are scattered along the Coeur d’Alene, St. Joe, St. Maries and Spokane rivers, as well as on Coeur d’Alene Lake, Nine Mile Reservoir and Lake Spokane. Avista also works with the City of Spokane to manage Huntington Park as a component of the city’s Riverfront Park. Clark Fork River Project Avista’s Clark Fork Hydroelectric Project includes the Cabinet Gorge and Noxon Rapids dams, located on the Clark Fork River in northern Idaho and northwestern Montana. 2015 marked the 17th year of successful, collaborative implementation of the Clark Fork Settlement Agreement, a multi-stakeholder agreement for managing and protecting the natural resources of the area. The agreement includes a 45-year operating license from FERC to operate Cabinet Gorge and Noxon Rapids dams. As part of the Clark Fork Settlement Agreement, and with the oversight of the Clark Fork Management Committee, we implement protection, mitigation and WNIDCL_PR_037(AVA) Attachment A Page 52 of 115 51 enhancement measures every year. In the first 17 years of implementation, 23 recreational facilities have been upgraded and six new facilities created, over 45 stream habitat restoration projects have occurred on 25 different tributaries, bull trout populations are increasing and nearly 89,000 acres of bull trout, wetlands, riparian and associated upland habitat have been protected. In addition, water quality and cultural resource protection continue. Activities implemented related to the Clark Fork River Project in 2015, include: • Completed annual fall meetings of the Clark Fork Settlement Agreement Aquatic and Terrestrial Technical Advisory Committees and Management Committee (MC) during September. At the Fall MC meeting, IDFG presented Avista a plaque and a letter from the Director recognizing Avista’s 15 years of stewardship of Idaho’s fish and wildlife resources. • Electro fished below Cabinet Gorge Dam and operated the Cabinet Gorge Fish Hatchery ladder to capture and manually transport upstream migrating adult bull trout into Montana waters. • Work continued on the construction of the Cabinet Gorge Fish Handling Facility. Once completed, the facility will provide a safe and reliable facility to hold, analyze and process fish collected by the existing upstream fish passage program. The new handling facility is designed to handle significantly higher numbers of fish anticipated once the passage facility is operational. • The first mainstem Lightning Creek large woody debris habitat enhancement project was completed in the summer, a combined effort between Avista, Idaho Panhandle National Forests, Idaho Department of Fish and Game, and the National Forest Foundation. With success of these improvements, future work will continue downstream, increasing channel stability and improving fish habitat in lower Lightning Creek. Avista implements the requirements of National Pollution Discharge Elimination System (NPDES) permits when necessary and has made efforts to eliminate the need for permits, going from four permits to two in 2015. For specific details on land managed, protected habitats, biodiversity impacts and strategies, see our Spokane River Project FERC License and Clark Fork Project FERC License online at avistautilities.com. Our protection, mitigation and enhancement expenditures in 2015 for implementing the Spokane River Project License were approximately $2.8 million. For the Clark Fork River license implementation, we spent $7.0 million. These totals reflect environmental affairs activities associated with license implementation only. Avista practices environmental stewardship in all of our daily operations, including generation and production, and the costs of doing so are included in our capital and operations and maintenance budgets. Bull trout populations are increasing and nearly 89,000 acres of bull trout, wetlands, riparian and associated upland habitat have been protected. WNIDCL_PR_037(AVA) Attachment A Page 53 of 115 52 Climate and Environmental Impacts The latest report of the National Resources Defense Council, “Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States,” has ranked Avista among the cleanest power producers in the country when it comes to greenhouse gases. With 48 percent of our net generation capability from hydroelectric resources, a majority of our thermal generation fueled with natural gas, wind and biomass, and a long-standing commitment to energy efficiency, Avista is one of the lowest utility emitters of greenhouse gases in the country. Climate Policy Council Avista’s Climate Policy Council is an interdisciplinary team of management and other employees from key departments across the company. The council meets regularly to report on various issues including climate policy, federal, state and regional climate initiatives and legislation. The council also facilitates internal and external communications regarding climate change issues, analyzes policy impacts, anticipates opportunities, evaluates relevant strategies for Avista, and develops recommendations on climate-related policy positions and action plans. Avista also tracks and reports greenhouse gas emissions according to federal and state requirements. In addition to engaging in regulatory and legislative policy making regarding climate change policies, we are preparing for future opportunities related to innovations in electric transportation, distributed generation, and more that can reduce our carbon footprint. While climate change and potential impacts are difficult to predict, Avista continues to focus on providing a responsible generation resource mix for our customers, including a wide range of conservation and efficiency measures. Greenhouse Gas Emissions Avista reduces potential greenhouse gas emissions through conservation and improving the efficiency of our operations, transmission and distribution system and generation capacity. We are avoiding associated greenhouse gas emissions through the 125 average megawatts of energy efficiency on our system, as well as through system upgrades as a result of our smart grid projects, green fleet program and commute trip reduction participation. While Avista has not established specific greenhouse gas emissions reduction goals, we are undertaking voluntary efforts that provide both environmental and economic benefits. In two of the states where we have operations — Washington and Oregon — greenhouse gas reduction goals have been enacted. We will align our program with state and federal requirements as they evolve. CO2 Emissions Reporting Avista is not currently obligated by any federal or state regulatory agencies to provide or purchase allowances through any carbon trading network. Mandatory greenhouse gas emissions reporting to the EPA and the Oregon Department of Environmental Quality started in 2011, and reporting to the Washington Department of Ecology started in 2012. We have a greenhouse gas monitoring plan in place that documents data collection and emission calculations and specifies quality assurance procedures to be used prior to submitting greenhouse gas data to these agencies. We have met all applicable regulatory reporting requirements and will report greenhouse gas emissions for 2015 to the appropriate agencies in 2016. The latest report of the National Resources Defense Council, “Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States,” has ranked Avista among the cleanest power producers in the country when it comes to greenhouse gases. WNIDCL_PR_037(AVA) Attachment A Page 54 of 115 53 Reducing Vehicle Impacts Avista’s Commute Trip Reduction (CTR) Program educates and encourages employees to make informed decisions about reducing their “drive alone” miles — the miles an employee travels to their work site as a solo occupant in a vehicle. Washington’s Commute Trip Reduction (CTR) law, adopted in 1991, and incorporated into the Washington Clean Air Act, seeks to improve air quality, reduce traffic congestion, and minimize energy consumption. The subsequent Commute Trip Reduction Efficiency Act requires employers with 100 or more employees at a single worksite, in counties with 150,000 or more residents, to promote eco-friendly transportation options including: riding the bus, carpooling, vanpooling, bicycling, walking, working from home, compressed work weeks and flexible work schedules. For the year 2015, Avista employees reduced their drive-alone miles by 189,776 miles and eliminated 182,185 pounds of carbon dioxide. These results are in line with the prior year’s performance, although slightly decreased due to the changing economic environment and the fluctuating price of gasoline. Avista employees reduced their drive-alone miles by For the year 2015 miles pounds and eliminated of carbon dioxide 189,776 182,185 WNIDCL_PR_037(AVA) Attachment A Page 55 of 115 54 Avista’s Green Fleet Program Avista’s Green Fleet Program was created with the intent of investing in and implementing technologies and practices that serve as the foundation of a sustainable fleet. Avista’s fleet consists of more than 1,200 assets, including trucks, trailers, backhoes and other pieces of equipment. We strive to manage our fleet in a manner that is in the best interest of our stakeholders and the environment. The program focuses on: • Maintaining company vehicles to maximize efficiency and purchasing and using the “right-sized” vehicle for a particular job or service. • Exploring alternative fuel vehicle purchasing practices that include the use of cleaner fuels and technologies, including CNG, and Plug-In Hybrid Electric vehicles (PHEVs). • Studying renewable fuel / clean fuel options for our fleet, specifically, renewable diesel options. Compressed Natural Gas (CNG) Avista’s implementation of CNG to fuel our own Natural Gas Vehicles (NGVs) aims to reduce fuel costs and reduce our carbon footprint. CNG is a safe, clean and efficient alternative fuel that serves Avista and a growing number of vehicles on the road. Since 2011, Avista has: • Completed the construction of three new CNG refueling stations, with fast-fill and time-fill capability in Spokane and Coeur d’Alene. • Purchased 91 CNG bi-fueled half-ton, three quarter- ton and one-ton pick-up trucks to our fleet. WNIDCL_PR_037(AVA) Attachment A Page 56 of 115 55 CNG is a safe, clean and efficient alternative fuel that serves Avista and a growing number of vehicles on the road. Electric Vehicles Avista operates a growing number of electric vehicles. In 2014, Avista was instrumental in implementing Edison Electric Institute’s pledge to put five percent of our vehicle spend towards electrified vehicles and we have exceeded this target. Highlights of our electric vehicle operations and fleet include: • Operation of two PHEVs and one electric vehicle (EV). The use of these vehicles helps to provide more information on the performance of electric vehicles as well as future purchasing decisions. • Placement of three Level 2 charging stations in our community for the public’s use. • An electric puller-tensioner, a tool for installing conductor by our electric operations crews. This device sets a new standard for both a clean vehicle as well as worksite safety. • A bucket truck with a jobsite energy management system that uses an electric power take-off (ePTO) to power to the boom so that the engine can be turned off and the bucket can operate on batteries instead of the diesel engine. Additionally, this truck features exportable power and electrified heating and air conditioning in the cab. Through our green fleet efforts, we have grown our deployment of idle reduction technologies and electric vehicles in our fleet, and will continue to investigate additional technologies and opportunities to enhance our fleet and maximize the value of our investments. Managing PCBs Manufacture of Polychlorinated Biphenyls (PCBs) was banned in the United States in 1979 due to concerns about the toxicity of these chemicals. However, until that time, manufacturers incorporated PCBs in a wide range of products and materials, many of which are still in use across the country. Ongoing concerns regarding PCBs, including their persistence in the environment, have resulted in extensive regulation. Avista manages PCBs and mineral oil that contains low levels of PCBs in a manner that meets or exceeds the standards of the federal Toxic Substances Control Act (TSCA) and Washington state’s stringent regulations. Our goal is to minimize risk associated with PCBs, to avoid spills or releases, and to clean up any releases to levels of non-detection. Federal and state regulations allow the ongoing use of PCB-containing electrical equipment. However, we decided to take a more conservative and proactive approach to reducing risks associated with PCBs. The vast majority of the equipment in service at Avista is non-PCB. Our first wave of removal efforts focused on equipment with levels at 500 ppm or greater of PCBs. This type of equipment, as identified, was removed and properly disposed of during the 1980s. During the 1990s and early 2000s, we focused on removal of equipment containing between 50 and 500 ppm of PCBs. We are now in the midst of a multi-year project to remove and replace all electrical overhead distribution equipment with detectable levels of PCBs, an approach that exceeds any regulatory requirement. We are, once again, conducting these efforts in concert with system and efficiency upgrades and in coordination with our wood pole management plans. In this way, we are achieving increased environmental protection along with reliability improvements in a cost-effective manner, benefitting our customers and our communities. In 2015, 33.96 lbs of PCBs were sent for destruction in accordance with the Toxics Substance Control Act (TSCA). WNIDCL_PR_037(AVA) Attachment A Page 57 of 115 56 Managing Hazardous Waste Streams “RCRA waste” represents hazardous waste as defined in the federal Resource Conservation and Recovery Act and applicable state laws. We try to avoid generating hazardous waste by careful product selection, and we look for other ways to reduce the generation of hazardous waste. For those wastes we do generate, we manage them carefully. Until 2011, our largest source of hazardous waste was from aerosol cans that were collected from throughout the company. We achieved a 98 percent reduction of this waste stream through 2015 due to an increased emphasis on using the full content of aerosols and a device that captures residual content from cans. We manage all federal hazardous waste to meet or exceed regulations. This includes, as appropriate, treatment or disposal at permitted disposal facilities. “Non-RCRA” wastes include waste streams that are not deemed “hazardous,” but which we manage as special wastes. These include waste oils, greases, antifreeze, and a range of miscellaneous wastes that can be recycled, blended into fuels, or responsibly disposed. These are managed and disposed of in ways to meet or exceed state and federal regulations. “Universal wastes” include specific waste streams designated by federal and state law that are excluded from being treated as “hazardous” if they are managed according to specific standards. These include items such as fluorescent light bulbs. We manage all universal wastes in accordance with these standards. Spill Response/Pollution Prevention The Environmental Compliance group at Avista is on call 24 hours a day, seven days a week to respond immediately to environmental emergencies. In the case of an oil spill originating from any of our facilities, lines or poles, we immediately implement emergency spill procedures and begin working with the appropriate local, state and federal agencies to assess the situation and begin clean-up. Avista responds to all spills, regardless of size, location or oil type. The goal is to safely and efficiently eliminate any potential harm to fish, wildlife, natural resources, water supplies or people. Avista crews and personnel respond directly to typical, smaller spills, such as those that happen when a car hits a utility pole. For larger spills, Avista has on-call contracts with emergency spill response companies. These firms specialize in clean up and are able to mount appropriate responses. Avista is also a voluntary member of the Spokane River Response Group, organized by the Washington Department of Ecology, a collaborative effort made up of local, state, and federal oil spill responders as well as members of industry. This group was developed to address the need for oil spill preparedness and response along the Spokane River. Members of the group share resources and collaborate on training to make coordination on spill responses efficient and effective. We also participate in local emergency planning committees in Washington, Idaho and Montana. Pollution prevention matters at Avista. We’re continuously looking for process modifications and ways to improve housekeeping, maintenance and training that reduce the amount of hazardous or any regulated waste we generate. Recycling Through a 26-year partnership with a community non- profit organization, Avista’s recycling program employs full-time a number of developmentally disabled workers who help us recycle paper, corrugated cardboard, aluminum cans, plastic and glass bottles, magazines, newspapers, wood reels, phone books and batteries. Avista is also committed to recycling nonhazardous electrical equipment and materials. Working closely with recycling companies, aluminum, copper, lead, and other ferrous and non-ferrous metals are reclaimed and recycled. Not only is it good for the environment, but our recycling efforts have saved Avista refuse disposal costs. Environmental Fines And Sanctions Avista did not incur any environmental fines or sanctions in 2015. WNIDCL_PR_037(AVA) Attachment A Page 58 of 115 57WNIDCL_PR_037(AVA) Attachment A Page 59 of 115 58 Carbon Footprint Rate of CO2 Emissions of Company-Owned Generation 100 Largest U.S. Electric Power Producers CO 2 L b s / M W h Environmental Stewardship – By the numbers Gr a n t C o u n t y P U D Ch e l a n C o u n t y P U D ID A C O R P Pu g e t H o l d i n g s 2,000 1,500 1,000 500 0 WNIDCL_PR_037(AVA) Attachment A Page 60 of 115 59 Avista’s CO2e Emission Intensity Source: Avista FERC Form 1; World Resources Institute/World Business Council on Sustainable Development lb s C O 2e/ M W h 1200 1000 800 600 400 200 0 Avista’s CO2e Emissions mi l l i o n m e t r i c t o n n e s C O 2e 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 4.00 3.00 2.00 1.00 0.00 WNIDCL_PR_037(AVA) Attachment A Page 61 of 115 60 Significant Air Emissions by Type and Weight, Total Metric Tons Facility Fuel Type CO2e SO2 NOx Hg voc Kettle Falls Wood 13,158 4 380 0.0 13 Colstrip Units 3 & 4 Coal 1,669,829 722 2,956 0.1 49 Colstrip Units 3 & 4 Oil 764 2 1 0.0 0 Rathdrum Natural Gas 34,000 0 20 0.0 1 Northeast Natural Gas 750 0 2 0.0 0 Boulder Park Natural Gas 10,897 0 2 0.0 8 Coyote Springs 2 Natural Gas 695,873 4 119 0.0 5 Kettle Falls CT Natural Gas 256 0 0 0.0 0 Totals 2,425,528 732 3,481 0.1 75 Note: CO2e = Total CO2 and CO2 equivalents of all greenhouse gases emitted by generating units, CO2 generated from biomass at Kettle Falls is carbon neutral and not inlcuded in totals Emissions per MWh MWh CO2e SO2 NOx Hg voc Total Energy Electricity Generation 7,417,080 720 0.22 1.03 0.0 0.02 Fossil Fuel Electricity Generation 3,662,014 1,457 0.44 2.10 0.0 0.05 Note: All values in lbs parameter/MWh except where noted WNIDCL_PR_037(AVA) Attachment A Page 62 of 115 61WNIDCL_PR_037(AVA) Attachment A Page 63 of 115 62 Community Partnership Our vision for giving back means that we are investing in organizations and causes in ways that can be transformational and have long-lasting impact. Avista community investments are made through corporate and foundation donations and are not included in customer rates. Avista gives back a portion of the profits it is allowed to earn, reinvesting in the communities we serve. We believe that bringing value to our customers and attaining our business goals go hand-in-hand. We are Invested in Our Customers and the Communities We Serve Bringing energy to life extends beyond providing electricity and natural gas for our customers. As employees and a company, we are an active partner and advocate that brings energy to strengthening those communities where we serve, as well as where we live and play. WNIDCL_PR_037(AVA) Attachment A Page 64 of 115 63 Avista helps build value for our communities through active involvement in organizations and causes that are growing jobs and improving the quality of life in our region. Where there is a major event, it’s a given that Avista is there. From January through December, Avista employees are active in events that bring people together for camaraderie, for fun and for service to others. Investments are also made through the time, talent and treasure that our employees put into the organizations in the towns they call home throughout our service territory. Special events, non-profit fundraisers, community gatherings, sports games and more — Avista provides sponsorship support across our service areas to strengthen our communities and broaden the reach of local organizations. In 2015, Avista was named as one of the top 75 corporate philanthropists in the state of Washington by the Puget Sound (Wash.) Business Journal for the fifth consecutive year. Giving through Avista corporate and Avista Foundation donations in 2015 totaled $2.58 million. Sponsorships: Philanthropy: Economic Vitality: Employee Volunteerism: Our community giving is focused in the following areas: WNIDCL_PR_037(AVA) Attachment A Page 65 of 115 64 A Legacy of Community Support — The Avista Foundation The Avista Foundation was formed in 2002 to create a legacy of investment for the communities served by Avista and to serve as the primary charitable vehicle for the company. The foundation focuses its giving on grants that strengthen communities and enhance the quality of lives of the people served by our company. Emphasis is in the areas of: • Education — supporting K-12 education particularly in the fields of science, math and technology; and higher education including scholarships. • Vulnerable and limited income populations — providing assistance to those on limited incomes and support for initiatives to reduce poverty. • Economic and cultural vitality — supporting projects that help our communities and citizens to grow and prosper. Avista corporate donations focus primarily on energy assistance and economic vitality- related initiatives that benefit our customers and communities. WNIDCL_PR_037(AVA) Attachment A Page 66 of 115 65 $1,270,256 HEALTH AND HUMAN SERVICES YOUTH ARTS AND CULTURE EDUCATION COMMUNITY VITALITY ENVIRONMENTAL $137,856 $148,418 $435,169 $566,071 $24,439 * The majority of Avista’s support for environmental stewardship comes through the millions spent each year in meeting the federal license requirements for our projects on the Clark Fork and Spokane rivers. See the Environmental Stewardship section of this report for more information. $2,582,209 TOTAL GIVING 65WNIDCL_PR_037(AVA) Attachment A Page 67 of 115 66 Idaho Food Bank The current location of the north central branch of the Idaho Foodbank is hidden in east Lewiston near the Lewiston Livestock Market. The current out of the way location and the fact that the Foodbank has outgrown its warehouse facility were two reasons the organization embarked on a capital campaign for a new facility which will be located in the heart of the Lewiston Orchards, accessible to Orchards residents as well as those who live downtown. Avista’s service territory in north central Idaho mirrors that of the Foodbank’s, so it makes sense that Avista partners with the Foodbank whenever possible. In 2015, the Avista Foundation contributed $5,000 to the capital campaign, entitled “A Fresh Approach to Feeding Idaho Families.” The Idaho Foodbank is the largest distributor of free, critical food items in Idaho. The capital campaign and Avista’s investment gives the Food Bank the opportunity to build a modern warehouse with the equipment needed to accept and distribute more food, particularly more fresh food, to schools, community centers and non-profit partners. The new teaching kitchen inside the warehouse will support the growing demand for classes on how to make the best use of the food received and provide the resources to offer nutrition programs geared to alleviate food insecurity among those many residents in need in the area. Every month, more than 17,500 children, families and senior citizens in north central Idaho are hungry. When the cupboards are empty, The Idaho Foodbank and its partner networks help those who struggle. At Avista, we believe one of the vital elements of a healthy community is the care and feeding of those who are most in need. The new warehouse with energy-efficient refrigerators and freezers will give the food bank more flexibility in the foods it can receive from a wider variety of sources. Josephine County Library District Promotes Literacy In 2007, the Josephine County government funding crisis caused the Josephine Community Libraries, Inc. (JCLI) to close the doors to its four branches. Two years later, with the help of a group of committed volunteers, the JCLI was able to reopen its doors. As one part of increasing graduation rates and reducing poverty in Josephine County, the JCLI worked to upgrade their two children’s libraries that promote literacy, reduce poverty, and help all Josephine County residents prosper. Avista supported the renovation project which helped fund the modernization of their children’s spaces as well as provide hands on tools that will inspire fun, literacy exploration. Avista Supports Christ Kitchen and Job training Christ Clinic / Christ Kitchen has been impacting lives in Spokane for more than two decades. Through Christ Kitchen, the organization has provided job training, support and fellowship for women in poverty since 1998. The organization enables women to learn how to work, to become employable and, eventually, to support themselves and their families. What began with the production and sales of gourmet, dried food products, has morphed into a catering service and now a mobile food truck project. The Avista Foundation was proud to donate $2,000 in support of this program and partner with Christ Clinic / Christ Kitchen on the food truck job initiative. We see the value of this quality training and opportunities given to the women in their programs. This is an innovative way to extend the quality food service Christ Kitchen has become known for. Juneau Creates Seward Statue After narrowly losing a close race for the Republican presidential nomination to none other than Abraham Lincoln, William H. Seward was appointed Secretary of State by President Lincoln in one of his very first cabinet appointments. Seward provided President Lincoln with years of counsel, and Lincoln developed respect for Seward’s interest in the value of undeveloped territory. Seward believed it was the government’s responsibility to provide infrastructure to nurture development, and saw large opportunities for expansion in the state we now call Alaska. On March 30, 1867 (now called Seward’s Day), Seward signed the treaty to purchase Alaska. Seward’s Legacy has been honored again and again throughout Alaska as a city and a highway, as well as many other historical landmarks. To support the preservation of Seward’s legacy, Avista has contributed to a project that will commemorate him with a life-size statue in Juneau. WNIDCL_PR_037(AVA) Attachment A Page 68 of 115 67 Spokane’s Chinese Lantern Festival Presented by Avista In the fall of 2015, Spokane hosted the Chinese Lantern Festival, the first of its kind in the western United States. This five-week celebration of chinese culture featured massive lanterns, amazing performances and incredible food. Avista was proud to serve as the presenting sponsor, infusing our region with incredible culture, providing family gathering opportunities and bolstering our local economy. The festival brought Riverfront Park, in downtown Spokane to life, and included 30 large displays and hundreds of individual displays that were made in and brought to Spokane from China. In addition, the Lantern Festival featured nightly cultural performances and demonstrations, children’s activities such as Chinese calligraphy and fascinating historic displays chronicling nearly 5,000 years of Chinese culture. WNIDCL_PR_037(AVA) Attachment A Page 69 of 115 68 Avista Provides Space that Will Be Home to Science Center Built in 1911 to house back-up energy generated from Avista’s Monroe Street Hydroelectric Project, the small building next door to the Post St. substation had been underutilized over the last several decades. That began to change in 2015. On May 1, Avista and the Mobius Science Center signed a 10-year lease for the first (street) level of the Post St. Annex, providing a permanent home for the science center. The location of building close to the Spokane River and the generation facility provides children and families with a unique learning opportunity and view. Having Mobius in the center of downtown, overlooking Huntington Park and across from Riverfront Park is a gift we are sharing with our community. Our hope is that this will leverage further development and enhancements for Spokane and the Inland Northwest. On May 1, Avista and the Mobius Science Center signed a 10-year lease for the first (street) level of the Post St. Annex, providing a permanent home for the science center. WNIDCL_PR_037(AVA) Attachment A Page 70 of 115 69 Amazing Kids Caught in the Act Avista, in partnership with northwest credit union STCU and Kids Newspaper each month celebrates amazing kids and teachers in local schools who are making a big difference every day. Caught in the Act is a program created by STCU and co-sponsored by Avista that recognizes area students who demonstrate outstanding character and behavior. It lets elementary school teachers and staff catch kids in the act of doing good and nominate them to receive awards, including having their names published in Kids Newspaper. Teacher of the Month is a program that recognizes teachers who are nominated by their students for excellence in the classroom. Avista’s support of this program allows us to strengthen our community, focus on and enhance the education system and celebrate our neighbors. Extending the Reach of Avista’s Low Income Rate Assistance Program (LIRAP) Beginning in October 2015, Avista implemented a rate discount pilot program available to 800 senior and disabled customers that are living on a fixed income in Stevens, Lincoln, Ferry and Spokane counties. Seeing a need and as a request out of Avista’s 2014 general rate case, the rate discount was designed by a group of stakeholders that included representatives from Avista staff, the Commission staff, the Department of Commerce, Public Counsel Division of the Attorney General’s office, low-income advocates and other interested parties. The group came together to explore modifications and additions to extend the reach of the existing Low Income Rate Assistance Program (LIRAP) to achieve the following goals: • keeping customers connected to their energy service; • serving more customers in need with assistance; • lowering the energy burden for those struggling to pay their energy bill; • ensuring that there is data to support the program’s effectiveness. The average benefit is based on the customer’s annual energy usage and the customer can elect to have the rate discount applied to either their electric or natural gas service. Depending on the customer’s energy use, the discount can range between 31 to 43 percent on an electric bill or 42 to 47 percent on a natural gas bill. The pilot will run through September 2017. The Juneau Symphony Connects with Youth Through Kids2Concerts Kids2Concerts, a program of the Juneau Symphony, was created to provide opportunity for young listeners and their families who might not have access to attend live, symphonic music. Avista partnered with the Juneau Symphony to provide 400 ticket vouchers for performances to students and the Student Symphony. By supporting the program, Avista is enabling youth development through musical training and music exposure. WNIDCL_PR_037(AVA) Attachment A Page 71 of 115 70 Avista Contributes to the Upgrade of the Cardiac Intensive Care Unit at Providence Sacred heart Medical Center As a company that relies on advanced equipment and infrastructure, Avista recognizes the importance of upgraded and reliable equipment. The Providence Health Care Foundation reached out for support, and agreed to match one hundred percent of Avista’s contribution, in renovating their Cardiac Intensive Care Unit (CICU), which had not been renovated in 30 years. The CICU plays a critical role in cardiac care in the area and is the regional referral center for approximately 1.7 million residents of the Inland Northwest. In the last year, the CICU performed over 5,200 lifesaving procedures, including 13 heart transplants and 111 pediatric cardiac surgeries. Avista’s $100,000 donation will contribute to the expansion of the facilities that will now include a 34-bed intensive care unit, an increase of 12 beds, which will be equipped with cutting-edge technology for patients. Rooms will be larger with new equipment and infrastructure features to enhance the overall patient experience and staff efficiency and contribute to a healthier overall community. With Avista’s support, exceptional cardiac care will remain accessible to the region. The Providence Health Care Foundation reached out for support, and agreed to match one hundred percent of Avista’s contribution, in renovating their Cardiac Intensive Care Unit (CICU), which had not been renovated in 30 years. WNIDCL_PR_037(AVA) Attachment A Page 72 of 115 71 Whitworth University Music Building and Program Expands Whitworth University’s music program is vibrant and thriving. The number of faculty and students has increased significantly over the last 35 years, and with this, came the need to make substantial investment in expanding the music building — the Cowles Music Center. Faculty, alumni, and students that study, practice, and teach in these facilities are well known for their community involvement as they work as professional musicians in the Spokane Symphony, Coeur d’Alene Symphony, and the Spokane Jazz Orchestra and perform in various theater productions. In their plans for a new, state-of-the-art music facility, Whitworth included numerous energy conservation measures that will make the building more efficient. With the investment of $100,000 over the next five years, Avista is strengthening Whitworth’s ability to influence and enrich the education of students and supporting the success of the music program on campus, in our communities and beyond. Windstorm 2015 Giving Early Tuesday, Nov. 17, 2015, Avista’s service territory endured a windstorm that created the worst devastation in our history. Beyond the round the clock power restoration efforts, in the 10 days customers were without power, Avista pledged more than $94,000 to fund shelters and warming centers and to provide emergency food and associated services. With the well- being of the community as a top priority, at least 50 Avista volunteers in non-restoration critical positions worked with other volunteers throughout Spokane going door-to-door checking on vulnerable customers, Avista provided 1,000 Thanksgiving meals and 45 employee volunteers in support of Tom’s Turkey Drive, and we also offered $150 grocery store gift cards to more than 3,000 customers who were expected to be without service on Thanksgiving Day. With the investment of $100,000 over the next five years, Avista is strengthening Whitworth’s ability to influence and enrich the education of students and supporting the success of the music program on campus, in our communities and beyond. WNIDCL_PR_037(AVA) Attachment A Page 73 of 115 72 First Move Chess First Move, a two year chess curriculum, was developed with the mission to integrate chess as a learning tool to promote critical and creative thinking to second and third graders all over the country. Chess requires students to analyze, plan, and execute their every move all while using math, science, and reading based concepts. In 2015, Avista donated to a cause that will help students develop their problem solving skills at an early age, increase their math and reading aptitude, as well as help them cultivate an intellectual self-esteem and positive social behavior. First Move is an organization that Avista is proud to support and by supporting a foundation that invests in our youth we can expect a generation that will contribute to the study of math and the sciences. Kootenai Health Expands Facility and Access With a mission to improve the health of each one of its patients and the entire community, Kootenai Health is beginning an expansion of their facilities that will help them provide greater access to high quality care for their patients. With the expansion, they will have the ability to serve a greater number of patients more efficiently. Kootenai Health serves a wide range of health care needs expanding over a large territory including Kootenai, Benewah, Bonner, Boundary, and Shoshone counties in Idaho and this project will allow the organization to serve over 220,000 patients with care in a safe, friendly, professional environment. Avista committed $45,000 to the project that will contribute to patients being served with modern equipment and facility as well as increasing the health of the community. Bemiss Elementary School First Move is an organization that Avista is proud to support, and by supporting a foundation that invests in our youth, we can expect a generation that will contribute to the study of math and the sciences. WNIDCL_PR_037(AVA) Attachment A Page 74 of 115 73 Community Involvement Company leadership encourages employees to engage in external relationships throughout the regions we serve. Hundreds of our employees are in volunteer leadership roles in Washington, Idaho, Oregon, Montana and Alaska. These include health and human services organizations, civic organizations, environmental and non-governmental groups (NGOs), economic development organizations, educational institutions and industry groups. Employee Giving The heart and soul of Avista can be found in our employees. They are not only devoted to doing an exceptional job for our customers but they dedicate themselves to community service in a way that is inspirational and downright contagious. In 2015, their generosity resulted in more than 48,500 hours of volunteer service to more than 800 organizations, both large and small, across our service territory. Inside Community PartnershipEmployee Gift Matching Avista’s matching gifts program is a tangible way for our company to support and recognize the “treasure” that employees generously donate to non-profit organizations. As our employees invest in the community, the company is able to increase the impact of that investment to those non-profit organizations valued by our employees through the matching gifts program of the Avista Foundation. All eligible gifts up to $200 each year receive a dollar-for-dollar match. Funding for this program is from the Avista Foundation and is not included in customer rates. Avista joins with their employees to give generously to causes and organizations that make meaningful impacts for our children, families, and communities. This year, employees gave $24,454 to non-profit organizations that are important to them, their families, and their community and Avista matched those contributions. We recognize that our employees so generously give their time, talent, and treasure to our community. The matching gifts program is a tangible way for Avista to support and recognize our employees’ generous donations to non-profit organizations. As our employees invest in the community, the company is now able to increase the impact of that investment to those non- profit organizations valued by our employees. Employee Volunteerism Hours Four-Year Trend In Volunteering 2012 50,700 2015 48,500 hours hours 2014 48,000 2013 hours hours 46,500 WNIDCL_PR_037(AVA) Attachment A Page 75 of 115 74 Low Income and Senior Energy Assistance and Outreach Families living on limited incomes and seniors with fixed incomes may rely on assistance to maintain essential needs such as food on the table or gasoline in their vehicles, access to healthcare or utility services in their homes. Avista is committed to reducing the burden of energy costs for our customers most affected by rising energy prices, including low income individuals and families, senior citizens, and disabled and vulnerable customers. To assist our customers, we focus on actions and programs in four primary areas: • advocacy for and support of energy assistance programs that provide direct financial assistance; • low income and senior outreach programs; • energy efficiency and conservation education; and • support of community programs that increase customers’ ability to meet the basic costs of living. Energy Assistance In 2001, the Washington Utilities and Transportation Commission (UTC) approved Avista’s Low Income Rate Assistance Program (LIRAP). Through this tariff surcharge program, customers currently pay an average $0.68 per month on their electric bill and an average of $0.74 per month on their natural gas bill, that is designated for rate assistance programs in Washington. A similar program was approved in Oregon in 2002 (where Avista provides solely natural gas), currently collecting 0.05 percent of the total charge per therm on Avista customers’ bills. LIRAP is not available in Idaho. In Oregon and Washington, we partner with community action agencies to distribute the funds to our customers. Avista is committed to reducing the burden of energy costs for our customers most affected by rising energy prices, including low income individuals and families, senior citizens, and disabled and vulnerable customers. WNIDCL_PR_037(AVA) Attachment A Page 76 of 115 75 Avista also is an active partner in advocating for and facilitating the distribution of federal Low Income Heating Assistance Program (LIHEAP) funds, which are distributed through our community action agency partner programs. Avista is the significant contributor to the regional Project Share program that provides emergency energy assistance for residential customers. Project Share is primarily funded through contributions from Avista customers, Avista employees and an annual donation from Avista Corp. In 2015, Avista helped to raise more than $494,313 to assist some 1,136 households, housing more than 6,489 individuals in need in Washington, Idaho and Oregon. Education — Energy Efficiency and Conservation Energy Fairs Throughout the year, our customers ask for help in managing their energy use and costs, but most particularly through the cold winter months. During the fall of 2015, Avista hosted four energy fairs in select communities in our service area in Washington and Idaho. The fairs were held in neighborhood community centers and other locations that are recognized as core to a given neighborhood, and each fair had a focus on serving those in need, though they were open to the general public. Approximately 1,250 people attended the fairs in 2015. Avista’s energy fairs offer a broad range of ideas and demonstrations that help residents keep the warm air inside and the cold air outside their homes. They’re also a great way for customers to conveniently access information about utility payment options, energy assistance and energy efficiency as well as valuable community resources, including home weatherization, safety and independence resources for seniors, and employment and financial counseling services. Fair attendees see first-hand how to install such things as rope caulk, window plastic and door sweeps. And following each demonstration, they receive free samples of each item used in the demonstration. Free admission to the fair includes all demonstrations, free samples of energy efficiency materials, complimentary food and beverages and door prizes. Workshops Senior citizens on fixed incomes and low income families often are struggling to make tight budgets cover all the household expenses, including energy costs. Avista’s workshops are specifically targeted to these vulnerable groups, which are held in convenient locations, such as senior centers and meal sites. Of the 31 workshops we facilitated in 2015, we equipped 899 people with information and resources to help them effectively manage their energy use. At workshops and outreach events, customers learn about energy efficiency and conservation topics such as controlling household drafts, managing the efficient use of major appliances and home lighting, no-cost tips for weatherization and information on bill payment options and resources for assistance. Recognizing that a significant portion of our target audience may be reliant on medical equipment or living with chronic health condition, our team provided other relevant information such as power outage preparedness so that individuals could have a plan should an outage occur. During the fall of 2015, Avista hosted four energy fairs in select communities in our service area in Washington and Idaho. WNIDCL_PR_037(AVA) Attachment A Page 77 of 115 76 Mobile Outreach Avista’s Energy Resource Van serves as mobile outreach to improve access to energy assistance services/ information, home energy information and efficiency resources for low-income, senior and vulnerable Avista customers. Partnership has been a key component for reaching these audiences. The primary partner in 2015 was Second Harvest Food Bank mobile pantry. By working together, Avista was able to access nearly 7,200 individuals in larger and more remote areas including: • Washington: Clark Fork, Ritzville, Elk, and Othello • Idaho: Bolvill, Juliaetta, and Bonners Ferry Energy Resource Van visitors are provided with samples of low-cost energy saving items such as weather stripping, plastic window seal kits, refrigerator coil cleaners and energy tips. Energy Use Guides are distributed to help provide continued learning and references about tips that help manage energy and informational materials about bill options and bill assistance are also available. Lowering the Barriers to Service Percentage of Population Unserved in Service Areas The opportunity for electric and/or natural gas service is available by law to all who request it within the areas Avista serves in Washington, Idaho and Oregon. Breaking Through the Language Barrier Through our Customer Contact Center, Avista provides a complimentary language line with quick access to an interpreter 24 hours a day. It works by way of a three- person conference call between our non-English speaking customer, our customer service representative and an interpreter. We can accommodate dozens of languages, including Cambodian, Laotian, Russian, Spanish and Vietnamese. In addition, one of Avista’s engineers who speaks Spanish serves as communication support at community events and through direct customer outreach to ensure we can communicate effectively with our customers and provide them a high level of customer service. Public Policy Participation Public policy has an important role in shaping the economic environment in which we work and live. As an energy company, we are affected by the decisions made by federal, state and local officials. In turn, these decisions also affect our customers, employees and shareholders. It is essential that we have a voice in the public policy arena and that we participate in the process for the benefit of all our stakeholders. Avista actively participates in local, state and national legislative and governmental activities. We work to develop trusting and credible relationships with elected and appointed office holders who determine public policy affecting our company. It is appropriate and responsible for the company, through shareholder dollars and the employee-funded political action committee, to be supportive of those individuals through political contributions as one part of a comprehensive government relations program. Lobbying and Political Contributions In 2015 we spent $514,719 on reportable lobbying expenses at the federal and state levels to help promote sound energy policy. In addition, $69,630 of our 2015 federal trade association dues were used for lobbying. Avista, using general treasury funds, is legally prohibited from contributing directly to political candidates for elected federal offices and is also prohibited from making such contributions in certain states. In 2015, we contributed $181,230 in the states where we serve customers and where such contributions are allowed. Many of our employees are members of the Avista Employees for Effective Government Political Action Committee. It is a voluntary, non-partisan committee for non-craft member employees. Through this PAC, our employees contributed $13,295 to state and federal candidates and political organizations in 2015. WNIDCL_PR_037(AVA) Attachment A Page 78 of 115 77 Philanthropy — Avista Foundation & Avista Corporation 2015 2014 2013 2012 2011 Health & Human Services $1,270,256 $765,111 $633,472 $624,966 $575,967 Education $435,169 $486,543 $249,605 $389,683 $227,073 Arts & Culture $148,418 $151,974 $152,765 $129,032 $178,202 Community Vitality $566,071 $417,198 $373,745 $300,650 $345,593 Youth Development $137,856 $195,724 $122,890 $144,392 $105,102 Environmental $24,439 $20,886 $42,000 $37,687 $42,373 Total Giving $2,582,209 $2,037,436 $1,574,477 $1,626,410 $1,474,310 Low Income and Senior Outreach — Energy Assistance Energy Assistance* 2014/2015 2013/2014 2012/2013 2011/2012 2010/2011* LIRAP Grants Made** $4,67 million $4.49 million $4.68 million $5.8 million $2.7 million Project Share Grants Made $242,019.00 $569,042 $375,064 $269,380 $504,389 Avista Contributions to Project Share*** $473,405.70 $494,313 $215,000 $215,000 $215,000 LIHEAP Grants Made**** $4,70 million $4.79 million $5,137,160 $9.2 million $10.8 million * The energy assistance program year is October 1 through September 30 ** LIRAP is only available in Washington and Oregon *** Starting with 2013/2014 year employee and customer contributions were included in Project Share amount **** Avista is an active partner in advocating for and facilitating the distribution of federal Low Income Heating Assistance (LIHEAP) funds Community Partnership – By the numbers WNIDCL_PR_037(AVA) Attachment A Page 79 of 115 78 Our Company We are a regulated business unit of Avista Corp., an investor-owned corporation headquartered in Spokane, Wash. As one of the largest taxpayers in the region, paying approximately $100 million in taxes annually, our economic impact supports family- wage jobs in rural, suburban and urban communities in our 30,000 square-mile service territory in eastern Washington, northern Idaho and parts of southern and eastern Oregon and Sanders County, Montana. Over time, we’ve fostered a culture of innovation where employees are empowered to explore new concepts and technologies as well as identify solutions and new ways of doing things to find efficiencies for the company and our customers. We’ve maintained a commitment to embracing the change that comes in our ever-evolving industry and positioning ourselves to navigate this. Avista is a utility that generates and transmits electricity and distributes natural gas, while providing innovative energy solutions for our residential, commercial and industrial customers. WNIDCL_PR_037(AVA) Attachment A Page 80 of 115 79 To improve life’s quality with energy — safely, reliably, responsibly. Certain principles have stood the test of time and remain deeply rooted in our company. Every aspect of what we do is aligned with these principles. Trustworthy: Our word is reliable; we do what is right. Innovative: We continuously improve and find better ways to get things done. Collaborative: We are respectful and are at our best when working together. Our Lasting Principles At Avista we are: Our Purpose WNIDCL_PR_037(AVA) Attachment A Page 81 of 115 80WNIDCL_PR_037(AVA) Attachment A Page 82 of 115 81 Our Employees The culture at Avista is based on integrity and respect. We offer employees the chance to enrich their careers through challenging and meaningful work assignments and ongoing training and development — all in an equal opportunity workplace that is surrounded by a supportive environment. Our success lies in hiring talented people and setting them free to pursue great ideas — ideas that engage the imagination, stretch us all and ensure that Avista continues to provide exemplary and cost-effective service to our customers. • Approximately seven percent of employees system- wide identify themselves as minority. • Spokane County has approximately 10 percent minority population in the workforce. • Roughly 34 percent of our employees will be eligible to retire in the next five years, and 51 percent will be eligible to retire in the next 10 years. However, we’ve been planning for this shift in our demographics for many years. Through robust professional development programs along with careful succession planning and targeted and intentional recruitment efforts, we continue to develop our workforce to keep ideas fresh and leadership strong. • Avista does periodic assessments of future retirement scenarios to anticipate how to attract, retain and develop critical talent needed for the continued effective operation of the company. Our Commitment to Diversity Avista is enriched by the diversity of our employees. We are committed to the goals of Equal Employment Opportunity and Affirmative Action, maintaining an environment of acceptance and inclusion for everyone in all aspects of our daily operations. Our employees and our company value diversity and mutual respect, and the workplace is free from harassment and discrimination for employees, customers, suppliers and other stakeholders. Working at Avista Local Hiring In an ongoing effort to recruit qualified local employees, we: • Post positions on local job web sites such as Worksource (Washington) and Idahoworks (Idaho) as well as through traditional and social media channels (Facebook, Craigslist and LinkedIn) and on our company website. • Submit external job postings to more than 100 agencies across Washington, Idaho, Oregon and Montana. • Notify local schools of student employment opportunities. Of the 14 executive level officers employed by Avista, nine were hired locally (from within the Northwest region). Collective Bargaining At Avista, 39 percent of employees are covered by collective bargaining agreements. Avista employees are represented by the International Brotherhood of Electrical Workers, Local 659 (Oregon) and Local 77 (Washington/Idaho). Performance Reviews All regular, non-bargaining unit employees receive formal performance reviews on an annual basis and updates at mid-year. Our union employees receive periodic evaluations as needed. Supporting Military Service Avista’s policy is to grant military absence and military time off without a break in service time or benefits, as required by law and in accordance with the needs of employees who are members of the military service. • Avista has approximately 148 self-declared veterans of military service, about nine percent of our work force. • Avista works with local organizations to identify opportunities to support veterans-to-work initiatives. Avista staff attended the following career fairs: Hero 2 Hired, Airman and Family Readiness Center at Fairchild Airforce Base, Fair at the Lair at SCC and the Inland Northwest Hire Our Heroes. Staff also continued Avista’s strong relationship with the Eastern Washington University Veterans Resource Center and planned a Careers in Energy Week event for job developers who help veterans find meaningful career opportunities. WNIDCL_PR_037(AVA) Attachment A Page 83 of 115 82 Who We Are Board of Directors • 4 females, 40 percent female* • One of the 10 directors identifies as minority Corporate Officers • 3 females, 21 percent female • No officers identify as a minority • Of the top 6 executive officers, 2 are female Employees • 29 percent female, 71 percent male • 7.0 percent identify as a minority * While the national activist group 2020 Women on Boards call for at least 20 percent of public company directors to be women by the year 2020, Avista already meets that standard. (Puget Sound Business Journal, May 25-31, 2012) Programs and Processes to Ensure the Availability of Skilled Workforce Avista Scholars Program Avista partners with colleges and universities throughout our three-state service territory to provide several different scholarship opportunities for students. The mission of the Avista Scholars program is to promote excellence in the fields of math, science, technology and engineering, leading students to become innovators, problem solvers and diverse, talented employees of our future. Through this program, Avista is helping to ensure there is a skilled workforce for the future. A Training Partnership with the Community Colleges Avista continues a more than 20-year partnership with Spokane Community College to offer a course that provides an introduction to the electric lineman field through the Line Pre-Apprentice Program. It is held at Avista’s Jack Stewart Training Center, a 10-acre training facility, and is open to individuals interested in entry-level positions leading to careers in the electric line worker craft and other utility-related professions. Participants learn, through hands-on and classroom experience, the skills and knowledge required for the position of a line crew helper. Apprenticeship Programs As part of Avista’s commitment to workforce development, we provide 11 active apprenticeship programs. The programs, which typically take 2-4 years to complete, provide participants living-wage jobs along with the opportunity to advance within their field and at Avista. With 11 programs, there are a wide-range of focus areas, ranging from electric mechanic and lineman to hydro and substation operator and communications technician. There were 60 apprentices trained in 2015. We support a culture of continuous learning at Avista. Our development opportunities are created to prepare employees at all levels to ensure we have the skilled workforce we need now and into the future. WNIDCL_PR_037(AVA) Attachment A Page 84 of 115 83 Student Engineering Development Program As a part of ensuring a skilled workforce for the long- term, Avista offers a Student Engineering Development Program (SEDP) that provides a variety of opportunities for engineering students to develop their engineering skills, gain an insight into the energy industry, gain valuable real-world experience and explore future professional opportunities. Students spend the summer working at Avista, where they participate in meaningful projects, experience focused mentorship and prepare for the next steps in their career. In 2015, 15 students participated in the SEDP. The program is mutually beneficial for local and regional students and Avista as it provides us with employees who can contribute to the overall success of the department they are working for bringing in fresh new ideas while giving us the link to the latest technology being taught in our colleges. This program provides students with an overview of what it’s like to work at Avista and helps Avista build a strategic pipeline into our Engineering Development Program (EDP). Ongoing Training and Development Opportunities We support a culture of continuous learning at Avista. Our development opportunities are created to prepare employees at all levels to ensure we have the skilled workforce we need now and into the future. We develop training that is relevant, necessary and in demand within the organization to help employees find success within their jobs. Training for employees is delivered through instructor-led, self-service, computer-based, field and workshop models that include topics such as: craft, customer service, environmental, natural gas, desktop, warehouse, project management, gas for non-gas workers, health and safety, leadership development, electric, flagging/ forklift, line, apprentice, journeyman, power resources, hydro and power supply. Opportunities For Continued Learning And Professional Development Aspiring Leaders Program In its 14th year, the Aspiring Leaders Program provides development for those employees preparing to be considered for future leadership roles. This one-year program provides qualified employees exposure to a variety of departments, training, leadership, mentoring and includes a team project. College Tuition Aid The company provides tuition assistance of up to $5,250 each year for undergraduate and master’s level studies in programs that add to employees’ performance and effectiveness in present or foreseeable jobs within the company. Learning Center Avista’s Learning Center was established in 1998 to promote lifelong learning for all employees. The center focuses on being proactive in terms of training and learning opportunities. Resources available include audio/video media, books, journal/periodicals and self- study courses. Workshops, Classes and Development Programs Avista offers a series of workshops and classes that are open to all employees as part of an overall professional and leadership development program. Topics include leadership enhancement, business process improvement and leading change for understanding more about the role of leadership, utility strategies and operations. In addition to in-house courses, we also send staff to classes offered through the Western Energy Institute, American Gas Association, Edison Electric Institute, University of Idaho, Willamette University, Gonzaga University and others. We develop training that is relevant, necessary and in demand within the organization to help employees find success within their jobs. WNIDCL_PR_037(AVA) Attachment A Page 85 of 115 84 Safety and Health A safe and healthy work environment is an essential part of our commitment to all our employees. This commitment is part of our culture and in recent years there is dedicated focus on and increased awareness about safety across the organization. Implementation of efforts to enhance the safety of employees have increased including communication, training, behavior-based observation, and recognition for safe behavior. A few examples of this include: • Monthly safety meetings • Weekly “Safety Huddles” • Structured tailboard meetings at the start of each job • Safety Alerts and “Heads Up” notices sent to employees about potential safety concerns • Safety medallion recognition for outstanding service to safety Every employee at Avista is a safety leader and each person has a role in ensuring the safety of themselves and those around them. This is a responsibility accepted by all Avista employees. This responsibility includes the authority to “Stop Work” without fear of reprimand or retaliation whenever the work presents a danger to the employee, co-workers or the public. Avista’s Central Safety Council is committed to providing the safest workplace possible and a safe environment. The Council sets the company safety policy for our employees, contractors and general public. The Central Safety Council’s mission is to: • Act as a forum to provide leadership and direction to the safety efforts; • Advocate the steps needed to achieve safety goals; • Coordinate, monitor and focus on safety and prevention; • Ensure proper action will be taken to provide a safe and healthy work environment for all our employees. There are 37 location-specific safety committees and safety chairpersons throughout the company. Safety information is reported quarterly to Avista’s board of directors; • Ensure the resources are provided to achieve the above. Employee Emergency Preparedness Avista uses the Incident Command System (ICS) to deal with major events. The use of ICS provides for better coordination of activities and reduces the chance for error which can cause employee injuries in these situations. During the historic Windstorm Event in November 2015 there were no employee or contractor injuries. Health and Safety Topics Covered In Formal Agreements with Trade Unions Avista follows all federal, state and local health and safety regulations and compliance programs. We work with our craft representatives to promote safety from the foremen to their crews. Our Labor/Management Committee meets quarterly or as needed to address problems and concerns. The union contracts also include grievance and arbitration language to deal with safety concerns or complaints. Policies and Requirements for Health and Safety Avista follows the requirements and guidance of numerous regulatory agencies for employee safety, including the United States Occupational Safety and Health Administration (OSHA), Washington Division of Occupational Safety and Health (DOSH), Oregon Department of Occupational Safety and Health (Oregon OSHA), and the Department of Transportation (DOT). Our Incident Prevention Manual (IPM) serves as an accident prevention plan covering safety rules and practices for the different operating units. We conduct numerous training programs internally and externally as required for employee and contractor safety by OSHA, DOT, DOSH and Oregon OSHA. A combination of instructor-led, third-party and online training programs are used throughout the year to keep employees properly trained and safe. Avista supplies personal protective equipment for employees as needed for their work, including the tools, equipment and machinery required to perform their jobs safely. Ergonomic equipment is used whenever possible to reduce potential injuries. Contractors and sub- contractors are required to follow all regulatory rules and regulations when working on Avista systems. WNIDCL_PR_037(AVA) Attachment A Page 86 of 115 85WNIDCL_PR_037(AVA) Attachment A Page 87 of 115 86 Other programs that ensure a safe workplace include: • A substance abuse prevention program, including pre- employment, random, for-cause and post-incident segments; • Operator Qualification training for gas employees to ensure safe operation of gas systems; • OSHA required training in craft work areas; • Pre-job review and orientation for contractors awarded bids on Avista properties; • Tailboards prior to starting a job to ensure the crew fully understands the job, hazards of the job, and the measures put in place to address those hazards; and • Crew visits by managers, directors, safety specialists to review current work practices and provide coaching to employees centered on getting the job done in a safe manner. Governance Governance Structure The board of directors of Avista Corp. has long adhered to governance principles designed to assure the continued vitality of the board in the execution of its duties. The board is responsible for management oversight and providing strategic guidance to the company. The board believes that it must continue to renew itself to ensure that its members understand the industry and the markets in which the company operates. The board also believes that it must remain well informed about the positive and negative issues, problems and challenges facing the company and markets so that the board members can exercise their fiduciary responsibilities to the company’s investors WNIDCL_PR_037(AVA) Attachment A Page 88 of 115 87 Communicating with the Board Shareholders and other interested parties may send correspondence to the board or individual directors through the Avista Corporate Secretary’s office. All communications will be forwarded to the person(s) to whom it is addressed unless it is determined that the communication does not relate to company or board business, is an advertisement or other solicitation, is frivolous or offensive, or is otherwise not appropriate to deliver. Shareholder proposals, in writing, may be delivered to the company’s Corporate Secretary. Specific information about the process to do this can be found in the company’s proxy statement. Reporting Suspected Violations The message hotline number (1-877-861-6690) provides an alternate point of access for serious concerns regarding possible breaches of the Code of Business Conduct and Ethics, corporate policies, business ethics or environmental practices (except environmental spills, for which a specific phone number is provided). and other shareholders. The board has six standing committees: Audit Committee, Governance/Nominating Committee, Compensation & Organization Committee, Finance Committee, Environmental, Technology & Operations Committee and Executive Committee. Information about these committees is available online at avistacorp.com. Composition of the Board According to the company’s Articles of Incorporation, the board will consist of no more than 11 directors, as determined by the board from time to time. The board included 10 directors as of Dec. 31, 2015. The majority of the board will consist of directors who meet applicable independence requirements of the New York Stock Exchange, which will be determined by the board on an annual basis. Members of the board are elected annually. The board does not have a policy as to whether the role of CEO should be separate from that of chairman. The board selects the chairman in a manner that it determines to be in the best interests of the company and its shareholders. This flexibility has allowed the board to determine whether the role should be separated based on the individuals serving and circumstances existing at that time. The board believes that it needs to retain the ability to balance the independent board structure with the flexibility to appoint as chairman someone with hands-on knowledge of and experience in the operations of the company. The board periodically examines its governance practices, including the separation of the offices of chairman and CEO. Independence It is the policy of the board that a majority of the directors will be independent from management. Independence determinations are made on an annual basis at the time the board approves nominees for election at the next annual meeting and, if a director joins the board between annual meetings, at that time. As of Dec. 31, 2015, of the 10 members of the board, nine are independent. The chairman of the board is the president and CEO of Avista Corp. Code of Ethics We strive to achieve the highest business and personal ethical standards, as well as compliance with the laws and regulations that apply to our business. Business practices focused on Avista’s values of integrity and principle-based conduct are essential for Avista’s board and employees. The company’s Code of Business Conduct and Ethics provides the framework for our decisions and our operations. It is the obligation of every member of the board and each officer and employee of Avista to become familiar with the goals and policies of the company and integrate them into every aspect of our business. Our standard has been, and will continue to be, that of the highest ethical conduct. We strive to achieve the highest business and personal ethical standards, as well as compliance with the laws and regulations that apply to our business. WNIDCL_PR_037(AVA) Attachment A Page 89 of 115 88 Compensation of Directors Directors’ compensation is determined by the board, based on recommendations of the Governance/ Nominating Committee. Members of management who are also directors will not receive additional compensation for their service as directors. The board believes that it is important for the interests of the board to be aligned with the company’s shareholders and, accordingly, a portion of directors’ compensation will be provided and must be held in company stock. Conflicts of Interest The company requires its board of directors, officers, employees, consultants, representatives and agents to avoid conflicts of interest, or even the appearance of such, between their obligations to the company and their personal affairs. None of these persons shall have an interest, position or relationship with any person, firm or corporation with whom the company does business or competes, if such interest, position or relationship would influence or might be likely to influence the actions of such individual in the performance of his or her duties. Board Membership Criteria The Governance/Nominating Committee annually reviews with the board the composition of the board as a whole and recommends, if necessary, steps to be taken so that the board reflects the appropriate skills, experience, attributes and characteristics required of board members all in the context of an assessment of the needs of the board and the company at the time. In conducting this assessment, the committee considers diversity, retirement age, skills, experience, expertise and such other factors as it deems appropriate. Say-on-Pay Shareholders voted in 2011 to have the non-binding advisory vote on the company’s executive compensation program appear annually in the company’s proxy statement. At the May 2015 annual meeting, Avista’s shareholders approved the company’s executive compensation program. Every six years shareholders will have the opportunity to determine how frequently the vote on “say on pay” will be included in the company’s proxy statement. Awards and Recognition Avista was recognized as Philanthropic Corporation of the Year by United Way of Spokane County Emerging Leaders Society: Avista was recognized for a commitment to sustaining our communities through a focus on education, delivering programs that help vulnerable and limited income customers, and by investing in activities that enhance economic and community vitality. Avista received the 2015 Environmental Excellence Award for Leading Environmental Practices from the Association of Washington Business for our work in phasing out PCBs in transformers throughout our system. Avista received an Agora award from Greater Spokane Incorporated and was recognized for business excellence in the Inland Northwest region and the depth of investment Avista has made in the community,as a corporation, and through support of employee volunteerism. WNIDCL_PR_037(AVA) Attachment A Page 90 of 115 89WNIDCL_PR_037(AVA) Attachment A Page 91 of 115 90 Initiatives Target Goal Actual Action Customer Satisfaction Consistently maintain customer satisfaction as measured through voice of the customer 90% satisfied and very satisfied Exceeded — 96% System Reliability Reliability Index — three common industry indices: Customer Average Interruption Duration — (CAIDI), System Average Interruption Frequency Index (SAIFI) and Customer Experiencing Multiple Interruptions (CEMI3) Reliability index of 1.0 or better Met — 1.0 Electric Energy Efficiency Achieve efficiency target to meet Washington and Idaho Integrated Resource Plan Goals 56,200,400 kWh saved Not met — 51,293,725 kWh saved IRP Target set several years ago and conditions have changed Natural Gas Energy Efficiency Acquire cost-effective conservation to align with the Washington Integrated Resource Plan efficiency target 1,515,000 therms saved Not met — 919,892 therms saved Numbers expected to be lower due to lower costs of natural gas Generation Plant Efficiency Ensure that generation, transmission and distribution systems reliably and cost-effectively meet customer energy requirements 93% availability Not met — 87.5% Complete generation plant replacement projects currently underway Employee Engagement Maintain engagement drivers that keep our employees involved and committed to Avista 75% engagement Exceeded — 81% Our Company — By the numbers Strategic Objectives WNIDCL_PR_037(AVA) Attachment A Page 92 of 115 91 Initiatives Target Goal Actual Action Employee Recordable Injury Rate (RIR) Reduction in employee injury rate from previous 3 year average 5% reduction Exceeded — 41% Reduction Employee Recordable Injury Rate (RIR) Employee Lost Time Injury Rate (LTIR) Reduction in employee injury rate from previous 3 year average 5% reduction Exceeded — 66% Reduction Vehicle Accident Rate (VAR) Reduction in vehicle accident rate from previous 3 year average 5% reduction Not met + 1% Increase Increased emphasis on driver safety including distracted driving Employee Volunteerism Be an integral part of the communities we serve and a contributor in mutually beneficial ways 50,000 hours Not met — 48,500 hours New volunteer engagement website tool will be implemented Natural Gas Dig-Ins/1,000 Locates Reduction in Dig-Ins/1,000 locates from the previous 3 year average 5% Reduction Exceeded — 19% Reduction Natural Gas Dig-Ins/1,000 Locates Natural Gas Public Safety Education Maximize awareness and adoption of safe practices that support our response to public safety Improve performance as compared to 2009 baseline 2015 Performance continues to improve as compared to 2009 baseline Natural Gas Emergency Response Maximize awareness and adoption of safe practices that support our response to public safety Meet natural gas response targets on 93% of calls Exceeded — 97% Strategic Objectives Continued WNIDCL_PR_037(AVA) Attachment A Page 93 of 115 92 2015 2014 2013 2012 2011 2010 Full-time 1,551 1,487 1,475 1,518 1,441 1,401 Part-time 96 95 97 77 84 75 Temporary 35 42 35 43 44 47 Student 20 16 23 25 9 12 Other - (Occasionals, Rehired Retirees) 9 12 13 9 16 19 1,711 1,652 1,643 1,672 1,594 1,554 Company contributions to defined benefit plan (pension) $12 million $32 million $44.26 million $44 million $26 million $21 million Total Workforce by Employment Type as of Dec. 31, 2015 Safety 2015 2014 2013 2012 2011 2010 Vehicle Accident Rate (VAR) Accidents/1,000,000 miles driven 6.78 4.16 9.29 10.11 8.33 7.97 Recordable Injury Rate (RIR) Recordable injuries per 200,000 hours worked 3.35 4.71 5.11 6.64 7.45 6.22 Lost Time Injury Rate (LTIUR) Lost-time injuries per 200,000 hours worked 0.81 1.42 2.55 2.11 2.58 2.54 Employee fatalities 0 0 0 0 0 0 Injuries to the public 0 1 5 1 3 2 WNIDCL_PR_037(AVA) Attachment A Page 94 of 115 93 2015** 2014 2013 2012 2011 2010 Pre-Line School Total students graduated 68 73 74 73 73 70 Hours of training 42,432 45,552 46,176 45,552 45,552 43,680 Credits awarded per student 49 49 49 49 49 49 Apprentices — All Crafts* Total number of apprentices trained 60 80 64 59 41 48 Number of active programs 10 10 11 10 9 10 Hours of training on the job 124,800 166,400 133,120 120,640 85,280 99,840 Hours of classroom training 7,798 14,101 8,236 3,961 2,269 4,310 Journeyman Training Electric/Generation 13,680 10,404 6,217 7,587 3,540 8,773* Gas refresher — hours 2,752 2,251 2,248 1,417 1,565 1,840 * In 2010 Avista added crane operator training and certification, and fork lift training, dramatically increasing the number of training hours for apprentices. ** In 2015, there was a craft-wide push to train Journeymen and track their classroom hours. Training Programs WNIDCL_PR_037(AVA) Attachment A Page 95 of 115 94 Global Reporting Initiative The 2016 Shared Value Report aligns with the Global Reporting Initiative G3 and Electric Utility Sector Supplement. The standard disclosures and indicators have not been verified externally by GRI, but they are consistent with previous reports that have been verified by GRI as application Level B. WNIDCL_PR_037(AVA) Attachment A Page 96 of 115 95 Indicator Description Reported Report Section(s) Strategy And Analysis 1.1 Statement from the most senior decision-maker of the organization Fully A Message from Our Leadership 1.2 Description of key impacts, risks, and opportunities Fully A Message from Our Leadership Organizational Profile 2.1 Name of the organization Fully Our Company 2.2 Primary brands, products, and/or services Fully Our Company 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures Fully Our Company 2.4 Location of organization's headquarters Fully Our Company 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report Fully Our Company 2.6 Nature of ownership and legal form Fully Our Company 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) Fully Our Company 2.8 Scale of the reporting organization Fully Utility Operations — Organizational Profile 2.9 Significant changes during the reporting period regarding size, structure, or ownership Fully About the Report 2.10 Awards received in the reporting period Fully Our Company — Awards & Recognitions EU1 Installed capacity, broken down by primary energy source and by regulatory regime Fully Utility Operations — By the Numbers EU2 Net energy output broken down by primary energy source and by regulatory regime Fully Utility Operations — By the Numbers EU3 Number of residential, industrial, institutional and commercial customer accounts Fully Utility Operations — Organizational Profile EU4 Length of above and underground transmission and distribution lines by regulatory regime Fully Utility Operations — By the Numbers EU5 Allocation of CO2e emissions allowances or equivalent, broken down by carbon trading framework Fully Environmental Stewardship — By the Numbers WNIDCL_PR_037(AVA) Attachment A Page 97 of 115 96 Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided Fully About the Report 3.2 Date of most recent previous report (if any)Fully About the Report 3.3 Reporting cycle (annual, biennial, etc.)Fully About the Report 3.4 Contact point for questions regarding the report or its contents Fully About the Report 3.5 Process for defining report content Fully About the Report 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) Fully About the Report 3.7 State any specific limitations on the scope or boundary of the report Fully About the Report 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. Fully About the Report 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report Fully About the Report 3.12 Table identifying the location of the Standard Disclosures in the report Fully Global Reporting Initiative 3.13 Policy and current practice with regard to seeking external assurance for the report Fully About the Report Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 98 of 115 97 Governance, Commitments And Engagements 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight Fully Our Company — Governance 4.2 Indicate whether the chair of the highest governance body is also an executive officer Fully Our Company — Governance 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/ or non-executive members Fully Our Company — Governance 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body Fully Our Company — Governance 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance) Fully Our Company — Governance 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided Fully Our Company — Governance 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental, and social topics Fully Our Company — Governance 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation Fully Our Company 4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles Fully Our Company — Governance Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 99 of 115 98 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance Fully Our Company — Governance 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization Fully 2015 Annual Report Form 10-K, Item I-A 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses Fully Community Partnership 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic Fully Community Partnership 4.14 List of stakeholder groups engaged by the organization 4.15 Basis for identification and selection of stakeholders with whom to engage Fully Utility Operations — Engaging Our Stakeholders 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Fully Utility Operations — Engaging Our Stakeholders 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting Fully Utility Operations — Engaging Our Stakeholders About the Report Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 100 of 115 99 Disclosure On Management Approach EC Aspects Economic performance Fully Avista Corp. 2015 Annual Report Market presence Fully Avista Corp. 2015 Annual Report Indirect economic impacts Fully Avista Corp. 2015 Annual Report Availability and reliability EU6 Management approach to ensure short and long-term electricity availability and reliability Fully Utility Operations — Business Continuity Planning Demand-side management EU7 Demand-side management programs including residential, commercial, institutional and industrial programs Fully Utility Operations — Energy Efficiency and Conservation Programs EU7 System efficiency Fully Utility Operations Research and development EU8 Research and development activity and expenditure aimed at providing reliable electricity and promoting sustainable development Fully Utility Operations Plant decommissioning EU9 Provisions for decommissioning of nuclear power sites No Nuclear Power Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 101 of 115 100 Disclosure On Management Approach EN Aspects Materials Fully Environmental Stewardship; Environmental Policy Energy Fully Utility Operations — Energy Efficiency and Conservation Programs Water Fully Environmental Stewardship — Stewardship of the Waterways Biodiversity Fully Environmental Stewardship — Stewardship of the Waterways Emissions, effluents and waste Fully Environmental Stewardship — Climate and Environmental Impacts Products and services Fully Environmental Stewardship — Climate and Environmental Impacts Compliance Fully Environmental Stewardship — Climate and Environmental Impacts Transport Fully Environmental Stewardship — Climate and Environmental Impacts Overall Disclosure On Management Approach LA Aspects Employment EU14 Programs and processes to ensure the availability of a skilled workforce Fully Our Company — Our Employees EU15 Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region Fully Our Company — Our Employees EU16 Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors Fully Our Company — Our Employees Labor/management relations Fully Our Company — Our Employees Occupational health and safety Fully Our Company — Our Employees Training and education Fully Our Company — Our Employees Diversity and equal opportunity Fully Our Company — Our Commitment to Diversity Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 102 of 115 101 Disclosure On Management Approach HR Aspects Investment and procurement practices Fully Utility Operations — Supply Chain Non-discrimination Fully Our Company — Our Commitment to Diversity Freedom of association and collective bargaining Fully Our Company — Our Employees Child labor Forced and compulsory labor Security practices Indigenous rights Partially Environmental Stewardship — Stewardship of the Waterways Disclosure On Management Approach SO Aspects Community EU19 Stakeholder participation in the decision making process related to energy planning and infrastructure development Fully Utility Operations — Engaging Our Stakeholders About the Report EU20 Approach to managing the impacts of displacement Corruption Fully Our Company — Governance Public policy Fully Community Partnership — Public Policy Participation Anti-competitive behavior Fully Code of Business Conduct Compliance Fully Code of Business Conduct Disaster/Emergency planning and response Fully Utility Operations — Business Continuity Planning EU21 Contingency planning measures, disaster/emergency management plan and training programs, and recovery/restoration plans Fully Utility Operations — Business Continuity Planning Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 103 of 115 102 Disclosure On Management Approach PR Aspects Customer health and safety Fully Utility Operations Product and service labelling Fully Utility Operations — Engaging Our Stakeholders Marketing communications Fully Utility Operations — Engaging Our Stakeholders Customer privacy Fully Avista Utilities Website Compliance Access EU23 Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services Fully Community Partnership — Low Income and Senior Energy Assistance and Outreach Provision of information EU24 Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services Fully Community Partnership — Low Income and Senior Energy Assistance and Outreach Economic Economic Performance EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments Fully Our Company — Organizational Profile; Community Partnership EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change Fully Environmental Stewardship — Climate and Environmental Impacts EC3 Coverage of the organization's defined benefit plan obligations Fully Avista Corp 2015 10-K EC4 Significant financial assistance received from government Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 104 of 115 103 Market Presence EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation Fully Utility Operations — Supply Chain EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation Fully Our Company — Our Employees Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement Fully Community Partnership EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts Availability and Reliability EU10 Planned capacity against projected electricity demand over the long term, broken down by energy source and regulatory regime Fully Utility Operations — Business Continuity Planning System Efficiency EU11 Average generation efficiency of thermal plants by energy source and regulatory regime Fully Utility Operations — By The Numbers EU12 Transmission and distribution losses as a percentage of total energy Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 105 of 115 104 Environmental Materials EN1 Materials used by weight or volume Fully Utility Operations — By The Numbers Energy EN3 Direct energy consumption by primary energy source Fully Utility Operations — By The Numbers EN4 Indirect energy consumption by primary source EN5 Energy saved due to conservation and efficiency improvements Fully Utility Operations — Energy Efficiency and Conservation Programs EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives Fully Utility Operations — Energy Efficiency and Conservation Programs EN7 Initiatives to reduce indirect energy consumption and reductions achieved Water EN8 Total water withdrawal by source EN9 Water sources significantly affected by withdrawal of water EN10 Percentage and total volume of water recycled and reused Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Fully Environmental Stewardship — Stewardship of the Waterways EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Fully Environmental Stewardship — Stewardship of the Waterways Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 106 of 115 105 EU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas EN13 Habitats protected or restored Fully Environmental Stewardship — Stewardship of the Waterways EN14 Strategies, current actions, and future plans for managing impacts on biodiversity Fully Environmental Stewardship — Stewardship of the Waterways EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk Emissions, Effluents and Waste EN16 Total direct and indirect greenhouse gas emissions by weight Fully Environmental Stewardship — By the Numbers EN17 Other relevant indirect greenhouse gas emissions by weight Fully Environmental Stewardship — By the Numbers EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Fully Environmental Stewardship — Climate and Environmental Impacts EN19 Emissions of ozone-depleting substances by weight EN20 NOx, SOx, and other significant air emissions by type and weight Fully Environmental Stewardship — By the Numbers EN21 Total water discharge by quality and destination Fully Utility Operations — By The Numbers EN22 Total weight of waste by type and disposal method EN23 Total number and volume of significant spills EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 107 of 115 106 EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff Products and Services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Fully Environmental Stewardship EN27 Percentage of products sold and their packaging materials that are reclaimed by category Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Fully Environmental Stewardship — Environmental Fines and Sanctions Transport EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce Fully Environmental Stewardship — Climate and Environmental Impacts Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 108 of 115 107 Overall EN30 Total environmental protection expenditures and investments by type Fully Environmental Stewardship — Stewardship of the Waterways Social: Labor Practices and Decent Work Employment LA1 Total workforce by employment type, employment contract, and region Fully Our Company — Our Employees LA2 Total number and rate of employee turnover by age group, gender, and region EU17 Days worked by contractor and subcontractor employees involved in construction, operation and maintenance activities EU18 Percentage of contractor and subcontractor employees that have undergone relevant health and safety training LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Labor/Management Relations LA4 Percentage of employees covered by collective bargaining agreements Fully Our Company — Our Employees LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements Occupational Health and Safety LA6 Percentage of total workforce represented in formal joint management- worker health and safety committees that help monitor and advise on occupational health and safety programs Fully Our Company — Our Employees LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region Fully Our Company — By the Numbers Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 109 of 115 108 LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases Fully Our Company — Our Employees LA9 Health and safety topics covered in formal agreements with trade unions Fully Our Company — Our Employees Training and Education LA10 Average hours of training per year per employee by employee category Partially Our Company — By the Numbers LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Fully Our Company — Our Employees LA12 Percentage of employees receiving regular performance and career development reviews Fully Our Company — Our Employees Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity Fully Our Company — Our Employees LA14 Ratio of basic salary of men to women by employee category Social: Human Rights Investment and Procurement Action HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 110 of 115 109 HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained Non-Discrimination HR4 Total number of incidents of discrimination and actions taken Freedom of Association and Collective Bargaining HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights Child Labor HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor Forced and Compulsory Labor HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor Security Practices HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 111 of 115 110 Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken Fully Environmental Stewardship — Stewardship of the Waterways Social: Society Community SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting EU22 Number of people physically or economically displaced and compensation, broken down by type of project None has occurred Corruption SO2 Percentage and total number of business units analyzed for risks related to corruption SO3 Percentage of employees trained in organization's anti-corruption policies and procedures Fully All employees and new hires receive a copy of the Code of Ethics, which is annually reviewed and updated. SO4 Actions taken in response to incidents of corruption Public Policy SO5 Public policy positions and participation in public policy development and lobbying Fully Community Partnership — Public Policy Participation SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country Fully Community Partnership — Public Policy Participation Anti-Competitive Behavior Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 112 of 115 111 SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Social: Product Responsibility Customer Health and Safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes EU25 Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases Product and Service Labeling PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction Fully Utility Operations Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 113 of 115 112 PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship Marketing Communications PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes None Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services None Access EU26 Percentage of population unserved in licensed distribution or service areas Fully Community Partnership — Low Income and Senior Energy Assistance and Outreach EU27 Number of residential disconnections for non-payment, broken down by duration of disconnection and by regulatory regime EU28 Power outage frequency Fully Utility Operations — By the Numbers EU29 Average power outage duration Fully Utility Operations — By the Numbers EU30 Average plant availability factor by energy source and by regulatory regime Fully Utility Operations — By the Numbers Indicator Description Reported Report Section(s) WNIDCL_PR_037(AVA) Attachment A Page 114 of 115 113WNIDCL_PR_037(AVA) Attachment A Page 115 of 115