Uil Co. Ltd. · KRX:049520
Uil — 47th Annual EEI Financial Conference 2012
35 slides from Uil's conference presentation, Nov 9, 2012
Slide 1: 47th Annual EEI Financial Conference
47 th Annual EEI Financial Conference November 2012 Exhibit 99.1
Slide 2: Note to Investors
Note to Investors James Torgerson President and Chief Executive Officer Richard Nicholas Executive Vice President and Chief Financial Officer For more information, contact: Susan Allen - V.P. IR, 203.499.2409, Susan.Allen@uinet.com Michelle Hanson - Mgr. IR, 203.499.2481, Michelle.Hanson@uinet.com
Slide 3: Today's Topics
Today’s Topics q Overview § Corporate Structure § Investment Highlights § Hurricane Sandy Update § CT Comprehensive Energy Strategy q Updated Forecasts § CapEx § Average Rate Base q Business Operations § Gas Distribution § Electric Transmission § Electric Distribution q Financials q CT & MA State Re
Slide 4: Who We Are
The United Illuminating Company (UI) UIL Holdings Corporation Service Area Key Berkshire Gas Company (Berkshire) Who We Are…… q Service territory: 335 sq miles q ~320,000 customers q Allowed Distribution ROE of 8.75% q Earned ‘11 Transmission ROE (composite) of 12.4% q 50% interest in GenConn Energy
Slide 5: Why UIL
Pure-play electric & gas utilities Financial strategy High probability growth Why UIL…….. § Virtually 100% regulated § Electric distribution & transmission and gas distribution utilities - complementary earnings patterns § Earnings growth opportunities at both electric and gas operations § Commitmen
Slide 6: Recent Storm Update: Hurricane Sandy
Recent Storm Update Hurricane Sandy q Approximately 280,000 customer outages § Within 7 days of the storm ending, 99% of customers had power restored q Preliminary cost estimate of approximately $35- $40M § Approximately 40% capital & 60% O&M ú A regulatory asset has been established and expect to s
Slide 7: Connecticut Comprehensive Energy Strategy draft
q Governor Malloy and the Department of Energy & Environmental Protection (DEEP) issued a Draft of Connecticut’s CES on October 5th § Document provides a foundation for informed policy, regulatory, and legislative decisions q Covers all fuels in all sectors with a planning horizon out to the year 20
Slide 8: 10-yr Capex Forecast Update (2013-2022)
10-yr Capex Forecast Update (2013-2022) • Does not include potential to construct, own and operate up to 10MW of Class I renewable generation • Does not include GenConn Amounts may not add due to rounding Identified projects with clear need & high probability q Previous Forecast (‘12-’21) - $2.9B q
Slide 9: Rate Base Forecast (2012-2017)
Rate Base Forecast (2012-2017) excluding GenConn Equity $M 2012-2017 CAGR 8.0% Gas Distribution: 5.2% Electric Transmission: 7.9% Electric Distribution: 12.9% Gas forecast includes 338 (H)(10) election Amounts may not add due to rounding
Slide 10: Gas Distribution
Gas Distribution
Slide 11: Gas Distribution Capex 2013-2022
Gas Distribution Capex 2013-2022 q Previous ‘12-’21 forecast $961M q Addresses replacement of cast iron & bare steel q Significant increase in New Business Amounts may not add due to rounding
Slide 12: Gas Conversions
Gas Conversions q Converted 9,233 customers YTD Oct. ’12, compared to 5,740 YTD Oct. ‘11 - a 61% increase over the same period in ‘11 q 2011-2013 target is to convert 30,000-35,000 customers to gas heat § 2013 goal is to convert approximately 12,200 customers § 2012 goal is to convert approximately
Slide 13: Gas Conversions Forecast
Gas Conversions Forecast q Potential customers § The New England & CT regions have historically relied heavily on heating oil § 66% customer penetration on gas mains § Approximate number of non customers on gas mains ~154,900* ú Low use customers on existing mains ~38,000 q On target to reach goal o
Slide 14: Electric Transmission
Electric Transmission
Slide 15: Electric Transmission Capex 2013-2022
Electric Transmission Capex 2013-2022 q Previous ‘12-’21 forecast $571M q CapEx spend for storm preparedness - system hardening Amounts may not add due to rounding
Slide 16: Examples of Electric Transmission Projects
Examples of Electric Transmission Projects Shelton 115/13.8 kV Substation § Meets Greater Shelton area load growth § In planning § Planned in-service ~ $40M* East Shore 115 kV Substation Upgrades § Addresses condition of infrastructure, short circuit capability and maintenance § Phased upgrades in e
Slide 17: FERC-Related Development
FERC-Related Development Challenge to Regional Transmission Base ROE: q “206” complaint filed at FERC by multiple state governmental entities in September 2011 § Claiming that current approved base ROE on transmission investment of 11.14% is not just and reasonable q FERC has set the matter for hear
Slide 18: Electric Distribution
Electric Distribution
Slide 19: Electric Distribution Capex 2013-2022
Electric Distribution Capex 2013-2022 q Previous ‘12-’21 forecast $1.2B q CapEx spend for storm preparedness - mainly system hardening Amounts may not add due to rounding
Slide 20: Examples of Electric Distribution Projects
Examples of Electric Distribution Projects Distribution Transformer Replacement Program New Haven/East Haven Load Relief Project Bridgeport Fuel Cell Energy Project § Infrastructure program to replace transformers due to physical condition, capacity, or potentially high levels of PCBs § In progress
Slide 21: Financials
Financials
Slide 22: YTD 2012 Financial Results by Business
YTD 2012 Financial Results by Business EPS YTD ‘12 vs. YTD ‘11 Net Income YTD ‘12 vs. YTD ‘11 Amounts may not add due to rounding
Slide 23: 2012 earnings assumptions
q Reflects YTD 3Q ‘12 financial results q ‘12 goal of converting 10,200 customers to natural gas heat q Execution of capital expenditure plan at each of our regulated businesses q Focused short-term O&M cost controls at each of our regulated businesses q Assumes normal weather through the rest of ’1
Slide 24: CT & MA State Regulatory
CT & MA State Regulatory
Slide 25: State Regulatory Update
Connecticut Massachusetts State Regulatory Update q Distribution Rate Case § UI is evaluating timing of distribution rate case to reflect significant investments in distribution infrastructure q Utility Company Storm Response § Pursuant to CT legislation, PURA will review UI’s performance following
Slide 26: Conclusion
Conclusion
Slide 27: Why UIL
Pure-play electric & gas utilities Financial strategy High probability growth Why UIL…….. § Virtually 100% regulated § Electric distribution & transmission and gas distribution utilities - complementary earnings patterns § Earnings growth opportunities at both electric and gas operations § Commitmen
Slide 28: UIL Holdings Corporation
BIL ot UIL HOLDINGS CORPORATION
Slide 29: Appendices
Appendices
Slide 30: 2012 Earnings Highlights
2012 Earnings Highlights q 3Q ‘12 net income of $15.7M - 29% increase compared to 3Q ’11 q YTD ‘12 net income of $74.8M was below YTD ‘11 levels mainly due to warmer weather in the first six months of ‘12 q YTD ‘12 pre-tax earnings from UI’s equity investment in GenConn of $11.8M, compared to $8.2M
Slide 31: Debt Maturities, Liquidity & Credit Ratings
Debt Maturities, Liquidity & Credit Ratings Evaluating the impact of DEEP’s Comprehensive Energy Strategy, PURA’s Renewable Generation Resources decision, current business plans and market conditions to determine potential timing and need for external equity * Available Liquidity Debt Maturities ($M
Slide 32: Breakdown of Gas - Rate Base (2012-2017)
Breakdown of Gas - Rate Base (2012-2017) $M Forecast includes 338 (H)(10) election Amounts may not add due to rounding 2012-2017 CAGR 5.2%
Slide 33: Previous - UIL 2012-2021 Capital Expenditure Forecast
Previous - UIL 2012-2021 Capital Expenditure Forecast Does not include potential to construct, own and operate up to 10MW of Class I renewable generation. ** Not including GenConn Amounts may not add due to rounding q Identified projects with clear need q Full 10-yr forecast for Gas Distribution Cap
Slide 34: Previous 2011-2016 Average Rate Base Forecast
Previous 2011-2016 Average Rate Base Forecast (excluding GenConn) GenConn Equity Investments: $M Amounts may not add due to rounding . 2011-2016 CAGR 6.9% Gas Distribution: 3.6% Electric Transmission: 10.2% Electric Distribution: 11.1% $2,062 $2,235 $2,388 $2,535 $2,731 1% 41% 22% 36% 40% 22% 38% 40
Slide 35: CT RPS
CT RPS Connecticut RPS Requirements (Percentage of Retail Load) Class 1 resources include energy derived from solar, wind, fuel cell, methane gas from landfills, ocean thermal, wave, tidal, run-of-river hydropower (<5MW, began operation after July 1, 2003), sustainable biomass (NOx emission <0.075 l
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