Uil Co. Ltd. · KRX:049520
Uil — 41st EEI Financial Conference 2006
29 slides from Uil's conference presentation, Nov 7, 2006
Slide 1: UIL Holdings Corporation 41st EEI Financial Conference
UIL HOLDINGS CORPORATION 41 st EEI Financial Conference Las Vegas, Nevada November 7, 2006 Presenters: Jim Torgerson, President & CEO Rich Nicholas, Executive VP & CFO EXHIBIT 99.1
Slide 2: Safe Harbor Provisions
Safe Harbor Provisions For more information, contact: Susan Allen – V.P. IR, 203.499.2409, [email protected] Michelle Hanson – Mgr. IR, 203.499.2481, [email protected] n UI Service Territory in CT Certain statements contained herein, regarding matters that are not historical facts, are f
Slide 3: Executive Summary
Executive Summary Ø Today’s Update Ø The United Illuminating Company Ø Financing Plan Ø Third-Quarter 2006 Results Ø 2006 Earnings Guidance and Beyond Ø Strategic Direction
Slide 4: Today's Update
Today’s Update Ø Xcelecom – Divestiture status Ø Updated 2007-2009 Capital expenditure estimates Ø Updated 2007-2009 Rate Base estimates q Including future potential transmission opportunities Ø 2007-2009 Earnings Guidance q Assumptions/Drivers
Slide 5: UIL Holdings Structure
UIL Holdings Structure High Quality, High Yielding Utility Total proceeds from Infrastructure and YTD Xcelecom Divestitures = $111.1 million
Slide 6: The United Illuminating Company
The United Illuminating Company
Slide 7: Key Developments
Key Developments Ø 4-Year Distribution rate case decision (2006-2009) q Revenue increase of $37.9 million, or 5.3%, by 2009 compared to current rates q Return on Equity – 9.75% q Capital Structure – 48% equity, 52% debt q Sales Forecast – 1% growth per year q Earnings Sharing 50/50 from first dollar
Slide 8: Middletown/Norwalk (M/N) Transmission Project
Middletown/Norwalk (M/N) Transmission Project Middletown Middletown Scovill Scovill Rock Rock S/S S/S East Devon East Devon S/S S/S Singer Singer S/S S/S Norwalk Norwalk S/S S/S Beseck Beseck S/S S/S ~ ~ ~ ~ Norwalk Norwalk Miles of 345kV OH Miles of - 345kV Miles of - 345kV Miles of 345kV OH Miles
Slide 9: UI Transmission Business Unit
UI Transmission Business Unit Ready for Growth Ø Formed in 2006 Ø Charged to explore future transmission opportunities Ø Mission is to create value by: q Vigorously pursuing FERC incentives q Influencing the ISO planning process q Infrastructure projects
Slide 10: Transmission
Transmission Ø Transmission tariff q Fully tracks the FERC-approved transmission revenue requirements q Rates are looking forward q Adjusted every 6 months, trued-up annually Ø 50% of CWIP in rate base – approved q Allows earlier recovery of investment Ø FERC “Promoting Transmission Investment throu
Slide 11: Transmission (Continued)
Transmission (Continued) Ø FERC New England Transmission Owner ROE order issued 10/31/06, Order number 489 q Base level ROE 10.2% effective 2/1/05 – 10/31/06 § basis point participation adder § basis point incentive for new transmission investment q Base level ROE 10.94% effective 11/1/06 going forw
Slide 12: Capital Expenditure Program 2006-2009
Capital Expenditure Program 2006-2009 q Distribution - other - Recloser program - Maintenance; transformers, cables, poles, substations, etc. q Transmission - other - Transmission substations, switch replacements, circuit breakers, etc. (In Millions) Note: Cap Ex program is subject to change
Slide 13: Average Rate Base 2005-2009
Average Rate Base 2005-2009 Distribution, Transmission & CTA Note: Average rate base shown. Total M/N project in service is not fully recognized in the average 2009 rate base. Rate Base CAGR Distribution – 5.3% Transmission – 34.9% Trans. Incl. Opportunities – 48.7% Total (Incl. Trans. Oppor.)- 10.5
Slide 14: Energy Procurement – 2007 and Beyond
Energy Procurement – 2007 and Beyond Ø Current Transitional Standard Offer service q Available through December ’06 q All power costs are fully recoverable q Benefited in ’06 against rising energy costs Ø 2007 and beyond q Standard Service § Requires series of laddered contracts § “Full requirements
Slide 15: UIL Holdings Corporation
BIL UIL HOLDINGS COnFonaATICN
Slide 16: Financing Plan
Financing Plan Ø Proceeds from divestitures of UBE, CSC and Xcelecom q Pay off short-term debt q Provide equity infusion to UI q Anticipation of 2011 payoff of UIL Senior Notes Ø M/N transmission project funding q No new equity issuance q Combination of short-term bank borrowings and; q Long-term de
Slide 17: Resolved Uncertainties
Resolved Uncertainties Enron Claim Settlement ü UI paid $7.9M to settle claim ü UI received $5.7M from an investment banking firm for the purchase of UI’s claim against Enron Steel Point Settlement ü Settles all claims with city of Bridgeport ü Expected payment from Bridgeport of $10.3M in 2006 & $4
Slide 18: UIL Holdings Corporation
BIL UIL HOLDINGS COnFonaATICN
Slide 19: Third-Quarter 2006 Results
Third-Quarter 2006 Results Ø Consolidated earnings of $0.48 per share including discontinued operations Ø Regulated earnings of $1.23 per share, compared to $0.83 per share in 2005 q Non-recurring earnings of $0.38 per share resulting from IRS PLR and gross earnings tax allocation resolutions q High
Slide 20: Third Quarter & YTD 2006 EPS
Third Quarter & YTD 2006 EPS Note: EPS earnings/(loss) per basic share of Common Stock 2005 results restated to reflect intent to divest Xcelecom vs. Third Quarter & YTD 2005 EPS
Slide 21: UIL Holdings Corporation
BIL UIL HOLDINGS COnFonaATICN
Slide 22: Disclaimer
Disclaimer The following information reflects management’s forecasts using information that is available at the time of this presentation. Factors that may affect future earnings estimates include, but are not limited to, inflation, the level of capital spending in the wires distribution and transmi
Slide 23: 2007 – 2009 Guidance Assumptions
2007 – 2009 Guidance Assumptions Ø Remaining Xcelecom divested in a timely manner Ø M/N transmission project expected to be completed in 2009 Ø Maintaining of Capital Structure, 48% equity / 52% debt
Slide 24: 2006 Earnings Guidance and Beyond
2006 Earnings Guidance and Beyond as of November 2, 2006 Note: Business unit expectations are not intended to be additive to derive consolidated expectations *EPS earnings/(loss) per basic share of Common Stock ** CAGR from 2006 forecast
Slide 25: UIL Holdings Corporation
BIL UIL HOLDINGS COnFonaATICN
Slide 26: Strategic Direction
Strategic Direction Positioned for Success Ø UIL continues to seek maximum shareholder value Ø Investing in the regulated utility business through capital spending q Pure T&D company with earnings growth Ø Consistent Dividend Policy q Current level of $1.728 per share paid for 48 consecutive quarter
Slide 27: Why Invest in UIL?
Why Invest in UIL? Stock Appreciation as of October 31, 2006
Slide 28: Delivering Results for Shareowners
Delivering Results for Shareowners UIL Consistently Outperforms the Market
Slide 29: UIL Holdings Corporation
IL UIL HOLDINGS conr