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Investor Presentaiton

• • Maintaining Capital Investment Forecast $2.1 billion of total capital investment over the five year period. We expect to finance this capital with a combination of cash flows from operations, first mortgage bonds and equity issuances. We anticipate initiating a 3-year $200 million At-the-Market (ATM) offering during 2021 and begin issuing equity under that program. The ATM issuances will be sized to maintain and protect our current credit ratings. Capital investment in response to our Montana electric supply resource planning would be incremental to these amounts. Millions Regulated Utility Five Year Capital Forecast 19 $500 $451 $456 $450 18.0 14.0 $418 $400 $400 13.2 $400 81.5 89.8 15.6 15.7 55.3 41.4 42.0 $350 $300 65.9 104.0 65.7 94.9 70.6 $250 $200 $150 277.4 277.4 256.2 254.8 271.2 $100 $50 $0 2021 2022 2023 2024 2025 MT Electric MT Gas SD Electric ISD/NE Gas 2021 2022 2023 2024 2025 $367 $338 $310 $319 $313 Natural Gas $84 $118 $108 $81 $87 Total Capital Forecast $451 $456 $418 $400 $400 Financing plans are subject to change, depending on capital expenditures, regulatory outcomes, internal cash generation, market conditions and other factors. $ Millions Electric Based on the results of the competitive solicitation process in South Dakota, approximately $100 million of incremental investment for SD generation is included in the projections above (2021-2023). This level of capital investment is anticipated to result in annualized rate base growth of 4%-5%. The projections do not include investment necessary to address generation capacity shortages in Montana. We are reviewing the independent administrators analyses in the current all-source competitive solicitation and expect to announce the selection of multiple projects during the first quarter of 2021. We anticipate that at least one of our projects will be among those selected resulting in owned capacity generation investment in excess of $200 million over the next three years.
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