Uil Co. Ltd. · KRX:049520
Uil — Midwest Utilities Seminar (April 2007)
24 slides from Uil's conference presentation, Apr 10, 2007
Slide 1: UIL Holdings Corporation Midwest Utilities Seminar
UIL Holdings Corporation Midwest Utilities Seminar James Torgerson – President and Chief Executive Officer Richard Nicholas – Executive VP and Chief Financial Officer April 10, 2007 Chicago EXHIBIT 99.1
Slide 2: Safe Harbor Provision
Certain statements contained herein, regarding matters that are not historical facts, areforward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the futu
Slide 3: Today's Topics
Today’s Topics UIL Holdings Corporation The United Illuminating Company Financing Plan Earnings Guidance and Beyond
Slide 4: UIL Holdings Structure
United Illuminating Retail Distribution Wholesale Transmission UIL Holdings Corporation Operations CTA Regulated Utility established in 1899 Holding Company established in UIL Holdings Structure
Slide 5: Service Territory in Connecticut
square miles in southwestern CT 320,000 customers % of revenue: 46% residential, 41% commercial, 11% industrial and 2% other Service Territory in Connecticut
Slide 6: Highlights
Highlights 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 Transmission q Approved Middletown/Norwalk project - $230-$260 million commitment q Transmission tracker q Approved 50% of CWIP in rate base q Ad
Slide 7: What this Means Going Forward
What this Means Going Forward Distribution revenue predictability through 2009 Transmission q Investment Incentives q Growth engine Proceeds from non-utility divestitures provide financial flexibility Labor stability – collective bargaining agreement through 2011
Slide 8: Strategic View
Strategic View Positioned for Success Seek out maximum shareholder value Invest in the regulated utility q Increase earnings q Earn allowed ROEs q Execute capital expenditure program q Seek out additional transmission investment opportunities Cash to be managed q Support equity base of utility q Dev
Slide 9: Capital Expenditure Program 2006-2009
Capital Expenditure Program 2006-2009
Slide 10: Average Rate Base 2006-2009
Total $747 $890 $1,002 $1,024 Average Rate Base 2006-2009 Distribution, Transmission & CTA CAGR – 11.09% Invest in aging distribution infrastructure M/N project triples investment in transmission q Expected rate base growth, $255 - $285 million CTA expected to be fully amortized by 2015 q Provides s
Slide 11: Middletown/Norwalk Transmission Project
UI to own, construct and operate approximately 20% of total project UI’s portion is all underground Expected growth in transmission rate base - $255 to $285 million 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 Bes
Slide 12: Transmission
Transmission Filed request for additional FERC incentives for M/N project on March 23, q Increase of CWIP in rate base to 100% q Additional ROE incentives – 50 basis points Estimating an overall weighted average ROE of 11.85% in 2007, excluding additional FERC incentives Transmission Unit formed in
Slide 13: Energy Procurement
Energy Procurement Transitional Standard Offer Service through December ’06 Settlement approved by DPUC • Acceleration of revenue requirement reductions • Reduction of working capital balances • Target working capital balance recovered by UI, including carrying charges, by end of Power supply arrang
Slide 14: Competitive Transition Assessment
Competitive Transition Assessment Earnings of $11.4 million, or $0.47 per share in ’06 Earns allowed ROE of 9.75%, no more, no less Cash flow from operations in 2006, $26 million
Slide 15: Other UI / Below the Line Items
Other UI / Below the Line Items Earnings of $2.3 million, or $0.10 per share in ’06 Earnings consist of: q Conservation and Load Management incentive q GSC procurement fee • No GSC procurement fee and incentive beginning January 1, 2007 • 2004, 2005 & 2006 incentive yet to be approved by DPUC q Misc
Slide 16: Potential CT Legislation
Potential CT Legislation 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, gen
Slide 17: Financing Plan
Financing Plan
Slide 18: Financing Plan
Financing Plan Consolidated cash on hand at UIL at year-end, $62 million q Primarily proceeds from non-utility divestitures q Used to infuse equity into UI Filed a 3-year financing plan with the DPUC q Issue up to $375 million of debt securities • Refinance maturing debt - $225 million • Capital exp
Slide 19: Earnings Guidance & Beyond
Earnings Guidance & Beyond
Slide 20: Financial Results (EPS)
* Includes impact of IRS private letter ruling, $0.27 per share Financial Results (EPS)
Slide 21: Earnings Guidance and Beyond
(1) Business unit expectations are not intended to be additive. Also, expectations do not include any earnings or losses from Xcelecom that would need to be included in continuing operations. (2) CAGR based on actual 2006 results, excluding the impact of IRS private letter ruling, $0.27 per share. *
Slide 22: Guidance Drivers
Guidance Drivers UI q Distribution • Will manage to 9.75% allowed ROE • Maintain allowed capital structure of 48% equity, 52% debt q Transmission • Earn allowed ROE based on current composition of rate base and projected capital spending • Does not assume additional FERC incentives • M/N transmissio
Slide 23: Guidance Drivers - Continued
Guidance Drivers - Continued UIL Corporate, including remaining UCI investments q Administrative costs q Interest charges q Results from remaining UCI investments q Assumes no additional investments in 2007
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