Slide 1: Third Quarter Earnings Webcast
Exhibit 99.2 Third Quarter Earnings Webcast October 31,
Slide 2: Cautionary Statements And Factors That May Affect Future Results
Cautionary Statements And Factors That May Affect Future Results Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may
Slide 3: Agenda
J. H. Miller J. R. Biggar W. H. Spence Agenda n Third Quarter 2006 Earnings and Review of Longer-Term Earnings and Outlook n Third Quarter 2006 Operating Results, 2006 and 2007 Forecasts and Financial Overview n Operational Review n Q&A
Slide 4: Third Quarter 2006 Earnings from Ongoing Operations
Per Share Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations. Third Quarter 2006 Earnings from Ongoing Operations
Slide 5: Earnings Growth and Long-Term Growth Rate
*** Earnings from ongoing operations - see Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. * Midpoint of $2.20 to $2.30 ongoing earnings forecast. ** Forecast * * Midpoint of $2.30 to $2.40 earnings forecast. 11% Long-Term Growth Rate
Slide 6: Ongoing Earnings Overview
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Ongoing Earnings Overview
Slide 7: Supply Segment Earnings Drivers
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Supply Segment Earnings Drivers
Slide 8: Pennsylvania Delivery Segment Earnings Drivers
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Pennsylvania Delivery Segment Earnings Drivers
Slide 9: International Delivery Segment Earnings Drivers
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. International Delivery Segment Earnings Drivers
Slide 10: Ongoing Earnings Contributions
(Dollars per Share) * Midpoint of forecast Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations. $2.25* Ongoing Earnings Contributions
Slide 11: 2006 and 2007 Earnings Forecast
and 2007 Earnings Forecast EPS *Earnings from ongoing operations - see Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. $2.08 (Dollars per Share) $2.20 to $2.30 $2.30 to $2.40
Slide 12: Annualized Dividend
$/share Annualized Dividend Payout Ratio Greater than 50% after 2006
Slide 13: Cash Flow Forecast
Millions Note: See Appendix for the reconciliation of cash flow measures. Cash Flow Forecast
Slide 14: Stronger Balance Sheet
Equity % Note: See Appendix for the reconciliation of GAAP equity to adjusted equity. Does not reflect any adjustments to reflect the impact of SFAS 158. Stronger Balance Sheet
Slide 15: Supply Margins: Key Drivers of Margin Growth
3 Supply Margins (Millions) Key Drivers of Margin Growth
Slide 16: PPL Proposal to Transition to Competitive Electricity Markets
PPL Proposal to Transition to Competitive Electricity Markets n Conduct procurements for 2010 POLR supply in March and September of 2007, 2008 and 2009 n Reduces the risk of customer exposure to price spikes in wholesale markets n PUC approval would remove risk for PPL Electric Utilities by ensuring
Slide 17: Scrubbers on Budget and on Schedule
In-Service Dates Montour March 2008 Montour May 2008 Brunner Island 3 Q4-08 Brunner Island 1 & 2 Q2-09 Scrubbers on Budget and on Schedule
Slide 18: Completed or Proposed MW & In-Service Dates
Completed or Proposed MW & In-Service Dates Brunner Island 3 Turbine Brunner Island 1 Turbine Brunner Island 2 Turbine Montour Turbine Susquehanna Susquehanna Susquehanna Susquehanna Colstrip 14 Kerr Holtwood MW 16 10 “1 16 45 45 45 50 20 12 2006 2007 2009 2008 2007 2008 2009 2010 2006-2008 2007 201
Slide 19: Shrinking Reserve Margins Create Potential Value for PPL
Reserve Margin Shrinking Reserve Margins Create Potential Value for PPL
Slide 20: Slide 20
Slide 21: Market Prices
(1) Market prices based on the average of broker quotes as of 9/30/2006. (2) 24-hour average. (3) NYMEX forward gas price on 9/30/2006. Market Prices
Slide 22: Current Hedge Positions - Electricity and Fuel
Current Hedge Positions - Electricity and Fuel
Slide 23: PPL's Generation Portfolio
Coal 3,454* Nuclear 2,120 Oil 1,722 Gas 1,524 Hydro 337 CTs 451 QFs 295 East 9,903 MW* Coal 687 Hydro 602 West 1,289 MW PPL’s Generation Portfolio Total Domestic Generation: 11,192 MW Planned Uprate Projects: 395 MW Nuclear Uprate (2007-2010) Hydro Uprate (2011) 125 Coal Uprate (2006-2009) Coal Upra
Slide 24: PPL Supply Business Overview
Coal 39% Gas/Oil 32% Nuclear 18% Hydro 8% QFs 3% Coal 56% Gas/Oil 5% Nuclear 31% Hydro 8% n In 2006, 95% of our owned generation output is expected to be produced at a fuel cost of approximately $16/MWh or less. PPL Supply Business Overview Installed Capacity MW Production GWh
Slide 25: Proactive Coal Supply Management Supports Growth in Margins
Projected 2007 Coal Supply Central Appalachia Southwest PA Central PA Powder River Basin Montana Mine-mouth Proactive Coal Supply Management Supports Growth in Margins 21% 41% 12% 20% 6% n Supply region diversity n Fleet trains (1600 cars) n Average delivered costs n 4%-5% annual increase to
Slide 26: Key Drivers/Challenges Through 2010
Key Drivers/Challenges Through 2010 n Increased prices for POLR sales n Expiration of supply contracts remarketed at current forward prices n Power plant uprates n Net benefits from the installation of scrubbers at the Montour and Brunner Island coal-fired power plants n Increased fuel and O&M costs
Slide 27: Increasing Prices Under the POLR Contract
Increasing Prices Under the POLR Contract
Slide 28: New NorthWestern Contract Highlights
New NorthWestern Contract Highlights n FERC reaffirmed PPL Montana’s market-based rate authority n PPL Montana signed long-term electricity supply deal with NorthWestern Energy Period On-Peak Supply Off-Peak Supply 7/1/2007-6/30/2010 MW 175 MW 7/1/2010-6/30/2012 MW 150 MW 7/1/2012-6/30/2014 MW 125 M
Slide 29: Improving Cash from Operations
Millions Note: See Appendix for the reconciliation of cash flow measures. Improving Cash from Operations
Slide 30: Reconciliation of Cash from Operations to Free Cash Flow before Dividends
(millions of dollars) Reconciliation of Cash from Operations to Free Cash Flow before Dividends
Slide 31: Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios
Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios
Slide 32: Capital Expenditures by Segment
Millions Capital Expenditures by Segment
Slide 33: Reconciliation of Third Quarter Reported Earnings and Ongoing Earnings
(Millions of Dollars) Reconciliation of Third Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 34: Reconciliation of Third Quarter Earnings (Per Share)
(Dollars Per Share) Reconciliation of Third Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 35: Reconciliation of YTD Reported Earnings and Ongoing Earnings
(Millions of Dollars) Reconciliation of YTD Reported Earnings and Earnings from Ongoing Operations
Slide 36: Reconciliation of YTD Earnings (Per Share)
(Dollars per Share) Reconciliation of YTD Reported Earnings and Earnings from Ongoing Operations
Slide 37: Reconciliation of 12 Months Ending Reported Earnings
(Millions of Dollars) Reconciliation of 12 Mos. Ending Reported Earnings and Earnings from Ongoing Operations
Slide 38: Reconciliation of 12 Months Ending Earnings (Per Share)
(Dollars per Share) Reconciliation of 12 Mos. Ending Reported Earnings and Earnings from Ongoing Operations
Slide 39: Reconciliation of PPL's Reported Earnings and Ongoing Earnings
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations
Slide 40: Credit Ratings
A-14 Credit Ratings *Insured
Slide 41: Credit Ratings by Entity
Moov Slandand &Poots Fie PPL Tranetton Bond Co, Traneiton Bonds Aaa pon pon PPL Montana Pass-Though Certfioates Baas bee. Bee tle STABLE STABLE WD Holdings Lirited tesuer Rating Baas BEB. eee. Senior Uneecured Debt Bax2 Bee. Be. Commercial Paper re Preferred Stock utleae STABLE STABLE STABLE \WPD Ho
Slide 42: Forward-Looking Statements
Statements contained in this presentation, including statements with respect to future earnings, energy prices, marginsand sales, growth, revenues, expenses, cash flows, cash from operations, dividends, credit profile, capital expenditures and generating capacity, are “forward-looking statements” wi
Slide 43: Non-GAAP Measure Definitions
“Earnings from ongoing operations” excludes the impact of unusual items. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income, which is an indicator of operating performance determined in accordance with generally accepted accounting princip