Flexible Renewable Storage Potential

42 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 • • 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: - 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 WATER™

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