Diverse Resource Portfolio & Low-Carbon Pathway
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STRATEGIC RATIONALE FOR WATER
The water and wastewater sector aligns well with NWN's conservative risk profile and offers diversification, stable cash flows, and substantial
long-term investment opportunities
Conservative
Business Profile
Aligns with
Core Competencies
Supportive
Regulatory
Environment
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Demand for water and wastewater is relatively inelastic
Stable, predictable cash flows
Complementary seasonality of cash flows and earnings between the natural gas & water utilities
Aligns with our core competencies including:
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Customer service
Developing and managing critical distribution infrastructure safely and reliably
Environmental stewardship
Constructive regulatory engagement
Existing constructive relationships with regulators that can be extended to water sector
Federal and state agencies driving upgrades to water and wastewater infrastructure
Need for
Substantial
Investment
EPA estimates over $775 billion in water and wastewater capital needs nationally through 2040
Over long term, growing water business targeted to be an earnings driver and opportunity to deploy capital
at attractive rates of return for infrastructure needs
Deliberate and Disciplined Roll-Up Strategy
NW Natural
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