Uil Co. Ltd. · KRX:049520
Uil — Wall Street Utility Group (May 2007)
31 slides from Uil's conference presentation, May 17, 2007
Slide 1: UIL Holdings Corporation - Wall Street Utility Group
Holdings Corporation UIL Wall Street Utility Group May 17, 2007 James Torgerson - President and Chief Executive Officer Richard Nicholas - Executive VP and Chief Financial Officer EX HIBIT 99.1
Slide 2: Safe Harbor Provision
Safe Harbor Provision For more information, contact: Susan Allen - V.P. IR, 203.499.2409, [email protected] Michelle Hanson - Mgr. IR, 203.499.2481, [email protected] Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as
Slide 3: Today's Topics
Today’s Topics Ø UIL Holdings Corporation Ø Capital Expenditure Plan Ø Financial Plan and Earnings Guidance
Slide 4: Service Territory
Service Territory Ø 335 square miles in southwestern Connecticut Ø 320,000 customers Ø % of revenue: 46% residential, 41% commercial, 11% industrial and 2% other
Slide 5: Highlights
Highlights Ø Distribution rate case decision through 2009 q Allowed ROE 9.75% q Capital structure - 48% equity, 52% debt q Sales forecast 1% growth per year Ø Transmission q Approved Middletown/Norwalk project - $240-$270 million commitment q Transmission tracker q Approved 50% of Middletown/Norwalk
Slide 6: Today's Topics
Today’s Topics Ø UIL Holdings Corporation Ø Capital Expenditure Plan Ø Financial Plan and Earnings Guidance
Slide 7: Transmission Planning
Transmission Planning Distribution Capacity Reliability Projects in 3 Categories: Aging Infrastructure Standards Compliance Exhausted Distribution solutions q Distribution load transfers q Existing substation expansion Majority of assets exceeding useful lives North American Electric Reliability Cou
Slide 8: Reliability Projects Overview
Reliability Projects Overview Ø Distribution Capacity Projects: q Multiple substations Ø Aging Infrastructure: q Substation rebuilds q Line/Cable replacements q Component replacement program Ø Standards Compliance q Fault/duty solutions q Bulk Power System compliance q Cable upgrades
Slide 9: M-N $240-$270M Transmission Investment Opportunities
M-N $240-$270M Transmission Investment Opportunities Availability of Substitute Solutions e.g. Generation solutions UI Territory State-wide Region-wide Location of the Solution Local Projects $420M
Slide 10: 2012 Distribution Capacity Impact of Load Growth
2012 Distribution Capacity Impact of Load Growth
Slide 11: Aging Infrastructure
Aging Infrastructure Overview of an Aging System: Ø Majority of current assets installed in the 1960’s and 1970’s Ø Common useful lives: 35 to 50+ years q At end of life, risk of failure increases q Reliability diminishes Under 30 years 19% Over 30 years 81% For Example: Substations
Slide 12: Standards Compliance
Standards Compliance Ø North American Electric Reliability Council/Northeast Power Coordinating Council/ISO-NE Reliability Standards: q Thermal • Standards intended to ensure that equipment and components remain within acceptable operating limits q Voltage • Standards intended to keep system voltage
Slide 13: UI Transmission Project Locations
UI Transmission Project Locations ?
Slide 14: Transmission Plan
Transmission Plan $866 million in projects (2007-2016) Ø Long-term Transmission planning done Ø Reliability-driven projects q 3 Clear Categories Ø UI Control / UI Territory Ø Demonstrated performance on Middletown to Norwalk Ø 27% CAGR in Transmission average rate base through 2012
Slide 15: Distribution Overview / Strategy
Distribution Overview / Strategy $888 million in projects (2007-2016) Key Strategies Ø Proactive assessment of asset life cycle Ø Forecast peak future demand. Maintain capacity margins at substation, feeder and transformer levels Ø Connect customers safely, reliably, on demand Ø Extend engineering a
Slide 16: $1.75B Capital Expenditure Program 2007 - 2016
$1.75B Capital Expenditure Program 2007 - 2016
Slide 17: Average Rate Base 2006 - 2012 Distribution, Transmission & CTA
Average Rate Base 2006 - 2012 Distribution, Transmission & CTA Total $754 $860 $1,000 $1,025 $1,031 $1,112 $1,175 CAGR 8% Transmission CAGR 27% Distribution CAGR 9%
Slide 18: Middletown to Norwalk Transmission Project
Middletown to Norwalk Transmission Project Ø Cap Ex: $240 - $270M Ø In service in 2009 Ø All underground Ø Largest 345-kV Gas Insulated Switchgear substation in North America Ø Rate base growth: $265 - $295M Ø 50% CWIP Ø Applied for additional FERC incentives Experience & Demonstrated Capabilities
Slide 19: Middletown to Norwalk
Middletown to Norwalk SINGER SUBSTATION Largest GIS Substation in North America 345-kV UNDERGROUND CABLE XLPE Cable SYSTEM ENHANCEMENTS Replace Surge Arresters and Ground Grids Project At-A-Glance
Slide 20: Aerial View Singer Substation, Bridgeport CT
Aerial View Singer Substation, Bridgeport CT Singer Substation
Slide 21: Project Process
Project Process Horizontal directional drilling
Slide 22: Project Process
Project Process Singer Substation install of pre-cast wall panels Installing the Duct Bank 25 of 36 chambers have been installed
Slide 23: Middletown to Norwalk 2007 Look-Ahead
Middletown to Norwalk 2007 Look-Ahead GIS Equipment Delivery Transformer Deliveries 345-kV Cable Deliveries Shunt Reactor Deliveries 345-kV Civil Construction Complete July August September October November December
Slide 24: Potential CT Legislation
Potential CT Legislation Ø UI’s view q Electricity prices are too high q Fully support the development of a comprehensive energy plan that will include consideration of the three basic resource elements necessary for reasonably priced, reliable electric service: • Conservation and load management, g
Slide 25: Today's Topics
Today’s Topics Ø UIL Holdings Corporation Ø Capital Expenditure Plan Ø Financial Plan and Earnings Guidance
Slide 26: Financing Plan
Financing Plan Ø Consolidated cash on hand at UIL on 3/31/07, $41 million q Primarily proceeds from non-utility divestitures q Used to infuse equity into UI Ø Filed a 3-year financing plan with the DPUC q Issue up to $375 million of debt securities • Refinance maturing debt - $225 million • Capital
Slide 27: Full Year 2006 & 1Q 2007 Financial Results (EPS)
Full Year 2006 & 1Q 2007 Financial Results (EPS) * Includes impact of IRS private letter ruling, $0.27 per share
Slide 28: Other Financial
Other Financial Ø Filed request for additional FERC incentives for M/N project on March 23, 2007 q Increase of CWIP in rate base to 100% q Additional ROE incentives - 50 basis points Ø Manage to Distribution allowed ROE of 9.75% in 2007 and maintain allowed capital structure of 48% equity, 52% debt
Slide 29: 2007 Earnings Guidance & Beyond as of May 4, 2007
2007 Earnings Guidance & Beyond as of May 4, 2007 (1) CAGR based on actual 2006 results, excluding the impact of IRS private letter ruling, $0.27 per share. * Includes impact of IRS private letter ruling, $0.27 per share ** Earnings expectations are not intended to be additive
Slide 30: Investment Highlights
Investment Highlights Ø Completed strategic realignment q Divested non-utility businesses to focus solely on regulated utility • Decreased earnings volatility Ø Committed to long-term growth in regulated utility q Execute Capital expenditure program and grow rate base to increase earnings q Earn all
Slide 31: Questions
Questions