Uil Co. Ltd. · KRX:049520
Uil — 44th Annual EEI Financial Conference 2009
33 slides from Uil's conference presentation, Oct 30, 2009
Slide 1: 44th Annual EEI Financial Conference
Exhibit 99.1 44th Annual EEI Financial Conference November 2009 - transforming investment into future value 1 EEI Nov. 2009
Slide 2: Important Note to Investors
Important Note to Investors Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expectati
Slide 3: UIL Corporate Structure
UIL Corporate Structure UIL Holdings Corporation Ø Market cap of ~ $786 million* Ø 1,058 employees The United Illuminating GenConn Energy LLC Company (UI) 50% Ø 335 square miles Ø Regulated transmission Ø Joint venture between UI and NRG Ø Population of ~736,000 & distribution utility Ø Peaking gene
Slide 4: Investment Highlights
Investment Highlights Ø Virtually 100% regulated Progressive pure-play Ø Long history of National 1st quartile reliability performance electric utility Ø 20 year leader in Conservation & Load Management programs Ø Smart Grid - - ahead of the curve Ø $1.7 billion of projected regulated capital and eq
Slide 5: Base 10-yr Capital Expenditure Program
Base 10-yr Capital Expenditure Program ($ in millions) Total 2009-2018P Distribution $ 95 $ 141 $ 147 $ 141 $ 122 $ 534 $ 1,178 Transmission $ 29 $ 47 $ 63 $ 80 $ 96 $ 91 $ 405 GenConn* $ - $ 57 $ 65 $ - $ - $ - $ 122 Total Base Capital Exp.** Base 10-yr CapEx Forecast Growth Opportunities Beyond Ba
Slide 6: Forecasted Average Rate Base 2008-2013
Forecasted Average Rate Base 2008-2013 (Excluding GenConn Equity Investments) CAGR 5% 1% 4% 8% 39% 11% 37% 19% 15% 37% 38% 35% 38% 60% 59% 55% 46% 51% 47% Rate base growth even with a declining CTA balance Avg. GenConn Rate Base Equivalent (UI’s share) $56m $174m $232m $224m Avg. GenConn Equity Inve
Slide 7: Growth - Opportunities / Enablers
Growth - Opportunities / Enablers Opportunities not included in 2009-2018 Base Plan In-State Opportunity / Enabler Notes / Summary Distribution Transmission Generation Six of seven New England states have adopted standards. CT Renewable Portfolio A Standards has limited means to comply. Possible col
Slide 8: Growth - Renewable Portfolio Standards (RPS)
Growth - Renewable Portfolio Standards (RPS) Existing Renewables vs. Region-wide RPS CT RPS Requirements 30.1% 50,000 40,000 30,000 20,000 12.7% 10,000 10.8% 10.3% - 2007 2009 2011 2013 2015 2017 2019 2021 Exist. Renew. Energy RPS Reqmt Ø Requirement is ~3 times current renewables level Ø Gap will l
Slide 9: Growth - New England Governors' Blueprint
Growth - New England Governors’ Blueprint ISO-NE Study: Transmission Needed: Ø Basis for “Blueprint” is the Ø Significant transmission build-out indicated Renewable Development Ø Potential $7B to $9B range, could be higher or lower Scenario Analysis Ø Region can develop sufficient wind resources to
Slide 10: GenConn Energy - Devon Site Under Construction
GenConn Energy - Devon Site Under Construction 10 EEI Nov. 2009
Slide 11: Base Plan - GenConn Energy
Base Plan - GenConn Energy Ø 50/50 debt/equity UI Equity Bridge Loan Status Ø $121.5m in total à $88.3m drawn as of 9/30/09 » $57m due 6/1/10 with Devon in-service » $64.5m due 6/1/11 with Middletown in-service NRG Equity Bridge Loan Ø Devon Plant Ø $121.5m in total » Turbines enroute GenConn Projec
Slide 12: Empowering the Customer: Current State
Empowering the Customer: Current State “My Account” Dashboard 12 EEI Nov. 2009
Slide 13: UI's Smart Grid Base Plan
UI’s Smart Grid Base Plan Estimated Spend $83 million (2009-2018) Advanced Metering Meters & Meter Equipment Meter Data Management 2-way Mesh Network Enhanced Monitoring Outage Management System SCADA Network Systems Communications Standards Arc Flash Mitigation Customer Applications Home Area Netwo
Slide 14: UI - Ahead of the Curve
UI - Ahead of the Curve Smart Grid Vision Established - Execution in Progress Approximately 17% of UI’s Customers are on Time of Use rates Fixed one-way wireless network since 2002 Ø Remote meter reading once a day Ø Depending on customer class, meter reading capability » Hourly » In 15 minute inter
Slide 15: Empowering the Customer: Future State
Empowering the Customer: Future State Interactive Devices and “Smart” Appliances Energy Management Services AMI Host Software Wireless HAN Wireless Outlet Remote Software Dimmer Home Theater Wireless Display Controller AMI Network Wireless Thermostat WirelessWirelessWirelessWireless Wireless Dimmer
Slide 16: Leader in Conservation and Demand Response Programs
Leader in Conservation and Demand Response Programs UI has been a leader in energy efficiency programs for more than 2 decades Ø Nationally and internationally recognized for its programs CT Energy Efficiency Fund Activities in 2008 Ø Small Business Energy Advantage UI approximately 20% Program inco
Slide 17: Leader in Conservation and Demand Response Programs
Leader in Conservation and Demand Response Programs UI is a leading demand response provider throughout New England Ø All the Home Depot, Walmart and Kohl’s stores in New England participate in UI’s Load Response Program Ø 600 individual customer assets, 100 MW of load Ø Active in ISO-NE Market Comm
Slide 18: Base Plan - Distribution Investments
Base Plan - Distribution Investments ($ in millions) Total Aging Infrastructure $ 36.0 $ 49.1 $ 39.7 $ 48.4 $ 57.5 $ 276.9 $ 507.4 Capacity $ 19.8 $ 20.0 $ 18.3 $ 27.5 $ 26.5 $ 95.7 $ 207.8 System Operations $ 12.6 $ 16.1 $ 12.5 $ 10.1 $ 9.1 $ 53.8 $ 114.2 Core Support $ 16.2 $ 38.9 $ 57.2 $ 40.4 $
Slide 19: Base Distribution (and Smart Grid) Examples
Base Distribution (and Smart Grid*) Examples Major Distribution Programs Advanced Metering Initiatives Substations (capacity & aging infrastructure) Remote Connect/Disconnect Splice Chamber Replacement Meters & Meter Equipment Cable Replacement Outage Management System Approximate cost: $267 million
Slide 20: Base Plan - Transmission Investments
Base Plan - Transmission Investments ($ in millions) Total Aging Infrastructure $ 3.9 $ 24.9 $ 33.2 $ 30.2 $ 39.6 $ 67.0 $ 198.8 Capacity $ 14.1 $ 14.5 $ 9.5 $ 8.4 $ 19.7 $ 4.2 $ 70.4 Standards Compliance/Other $ 11.4 $ 7.1 $ 19.8 $ 41.5 $ 36.6 $ 19.7 $ 136.0 Total Base Transmission* Aging Infrastru
Slide 21: Base - Transmission Project Examples
Base - Transmission Project Examples Grand Avenue Switching Station Shelton Substation Approximate cost - $62 million Approximate cost - $34 million (100% Transmission) (60% Transmission, 40% Distribution) Estimated in-service - June 2012 Estimated in-service - June 2013 Status Status Ø CT Siting Co
Slide 22: '09 Transmission & Distribution Blended Allowed ROE Approx. 10.2%
‘09 Transmission & Distribution Blended Allowed ROE Approx. 10.2% Transmission Distribution & CTA Generation 22 EEI Nov. 2009
Slide 23: Benefits from 2008 Distribution Rate Case
Regulatory Benefits from 2008 Distribution Rate Case Ø Rate years 2/4/09 through 2/3/11 » Full revenue decoupling adjustment » Cost of debt tracking mechanism » Pension & postretirement expense is recoverable in rates or as a regulatory asset for future recovery Ø Portion of uncollectible expense al
Slide 24: 3Q & YTD 2009 Financial Results - Summary
3Q & YTD 2009 Financial Results - Summary 3Q ’09 earnings from continuing operations of $21.7 million, or $0.73 per share, compared to $21.5 million, or $0.86 per share, in 3Q ’08 YTD ’09 earnings from continuing operations of $47.6 million, or $1.74 per share, compared to $39.4 million, or $1.57 pe
Slide 25: 3Q & YTD 2009 Financial Results
3Q & YTD 2009 Financial Results Quarter Ended September 30, Nine Months Ended September 30, 2009 2008 Difference 2009 2008 Difference UI Distribution, CTA and Other $ 15.4 $ 16.2 $ (0.8) $ 30.3 $ 24.4 $ 5.9 Transmission 6.9 6.1 0.8 19.2 17.0 2.2 Total UI Net Income $ 22.3 $ 22.3 $ - $ 49.5 $ 41.4 $
Slide 26: Earnings Details Compared to the Same Periods in 2008
Earnings Details Compared to the Same Periods in 2008 Distribution, CTA & Other - favorable Net Income YTD Distribution, CTA & Other Net Income Ø Successfully managing O&M expense Quarter Ended Nine Months Ended September 30, 2009 September 30, 2009 Ø Decoupling adjustment provided DPUC- Favorable/(
Slide 27: Debt Maturity and Liquidity
Debt Maturity and Liquidity Debt maturity schedule as of 9/30/09 ($M) Liquidity outlook Ø UIL & UI have a $175 million joint credit $64.5 facility due December 22, 2011 - $50 million of limit available for UIL $57.0 » No short-term borrowings outstanding under $51.0 $49.2 this facility as of Septemb
Slide 28: YTD 3Q Earnings & 2009 EPS Guidance as of October 30, 2009
YTD 3Q Earnings & 2009 EPS Guidance as of October 30, 2009 Nine Months Ended 2008 September 30, 2009 2009 EPS Guidance The United Illuminating Company $2.03 $1.81 $1.97 - $2.07 Distribution, CTA & Other 1.09 1.11 1.05 - 1.15 Transmission 0.94 0.70 0.90 - 0.95 Corporate (0.10) (0.07) (0.12) - (0.07)
Slide 29: 2010 Earnings Drivers
2010 Earnings Drivers Ø Earnings from GenConn - Devon » On schedule to be in-service June 1, 2010 Ø Continual management of O&M expenses Ø Executing on capital expenditure plan » Rate base growth Ø Non-rate base earnings opportunities » Conservation & load management » ISO-NE demand response » Distr
Slide 30: Investment Highlights
Investment Highlights Ø Virtually 100% regulated Progressive pure-play Ø Long history of National 1st quartile reliability performance electric utility Ø 20 year leader in Conservation & Load Management programs Ø Smart Grid - - ahead of the curve Ø $1.7 billion of projected regulated capital and eq
Slide 31: Q&A
Q&A 31 EEI Nov. 2009
Slide 32: Overview of 2008 Distribution Rate Decision
Overview of 2008 Distribution Rate Decision Ø Annual true-up Full revenue » If revenues < approved, rates will be adjusted to collect additional revenues decoupling » If revenues > approved, excess will be returned to customers Ø Decoupling established for two-year pilot period Ø Established a regul
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UIL Holdings — 44th Annual EEI Financial Conference 2009 on 6ix