Ppl Corporation · NYSE:PPL
Ppl — Non-Deal Roadshow (June 2009)
44 slides from Ppl's roadshow presentation, Jun 22, 2009
Slide 1: Midwest Investor Roadshow June 23-25, 2009
Midwest Investor Roadshow June 23-25, 2009 Exhibit 99.1
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: Corporate Overview
Corporate Overview PPL Corporation Owner and operator of a fleet of Nuclear, Coal and Hydro generating stations in PJM, Montana, New York and New England PPL Generation, LLC Marketing, trading, and fuel procurement in key U.S. markets PPL EnergyPlus, LLC 1.4 million customer electric delivery busine
Slide 4: PPL's Generation Portfolio
PPL’s Generation Portfolio Total Domestic Generation: 12,104 MW Planned Uprate Projects or Additions: 270 MW 3 •Well positioned in attractive markets •Carbon-advantaged •Low-cost, baseload weighted fleet Coal 3,500 Nuclear 2,165 Oil 1,817 Gas 2,282 Hydro 369 CTs 462 QFs 222 Coal 683 Hydro 604 West 1
Slide 5: Diverse and Balanced Fleet
Diverse and Balanced Fleet Market Segment Baseload 63% Peaking18% Intermediate 19% Installed Capacity MW Coal 34% Gas/Oil37% Nuclear 18% Hydro8% QFs 3% Geography Production GWh PJM 85% WECC 11% Coal 52% Gas/Oil9% Nuclear 31% Hydro8% NEPOOL 3% NYISO 1% Baseload oriented fleet augmented by attractive
Slide 6: PPL Renewables Overview
PPL Renewables Overview • Fifteen operating projects in Pennsylvania, New Jersey and Vermont, with a total capacity of 40 MW – Technologies include solar photovoltaic, landfill gas-to-energy, and cogeneration • Most states within PJM and NEPOOL have proposed or are considering expanding existing ren
Slide 7: PPL's Carbon Footprint
PPL’s Carbon Footprint • Currently 40% of generation output non- carbon emitting • Power plant uprates – all carbon neutral • PPL’s Supply margins would benefit under various climate legislation that is being proposed 6
Slide 8: Environmental Control Equipment
Environmental Control Equipment Keystone Conemaugh Control Device Removes Unit 1 Unit 2 Unit 3 Unit 1 Unit 2 Unit 1 & 2 Unit 3 & 4 Unit 1 & 2 Unit 1 & 2 Low Nox Burners NOx SCR NOx Scrubbers SO2 = Installed = Potential = Under Construction Brunner Island Montour Colstrip PPL has proactively complied
Slide 9: Current Hedge Positions - Electricity and Fuel
Current Hedge Positions -Electricity and Fuel Note: As of 3/31/2009 8 2009 2010 2011 2012 Electricity Sales East 98% 88% 51% 28% West 95% 78% 78% 65% Total 97% 86% 55% 34% Uranium 100% 100% 100% 100% Coal East 100% 98% 73% 52% West 100% 100% 86% 77% Total 100% 98% 77% 59% Unhedged Coal – million ton
Slide 10: Hedged Baseload Electricity 2009-2012
Hedged Baseload Electricity 2009-2012 Hedged Baseload Electricity Sales 0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 % of Coal, Hydro & Nuclear O utput$20 $30 $40 $50 $60 $70 $80 $/M W h Average Sale Price 9
Slide 11: Current East Coal Contracts - Base Prices
Current East Coal Contracts -Base Prices 10 Base Prices for Wholly Owned Plants* *East wholly owned plants include Montour & Brunner Island but not Keystone & Conemaugh. **Excludes contracts subject to mining-related oil surcharges and/or price collars. Note: As of 3/31/2009 $35 $40 $45 $50 $55 max
Slide 12: PJM RPM Update
PJM RPM Update • PJM Planning Year 2012/2013 Base Residual Auction – RTO cleared at $16.46/MW-Day – 4 LDAs had binding constraints that resulted in locational price adders • MAAC $133.37/MW-Day • EMAAC $139.73/MW-Day • PSEG-North $185.00/MW-Day • DPL-South $222.30/MW-Day 95% of PPL’s PJM generation
Slide 13: PJM RPM Auction Clearing Price
PJM RPM Auction Clearing Price 40.8 111.92 102.04 174.29 110 16.46 40.8111.92191.32 174.29110133.37 $0 $50 $100 $150 $200 $250 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 Delivery Year $/MWD Rest of Pool MAAC 12 95% of PPL’s PJM generation receives MAAC pricing
Slide 14: Supply Segment Open EBITDA
Supply Segment Open EBITDA *Based on forward market prices as of 3/31/09 2010E (Millions) Generation Output - MWh 55.5 Unhedged Gross Margin* 2,310 O&M (859) Open EBITDA 1,451 Fuel 176 Power 617 Above/(Below) Market Value of Hedges* 793 Expected Margin 3,103 13
Slide 15: Regulated Delivery
Regulated Delivery PPL Electric Utilities 1.4 million customers WPD (South West) 1.5 million customers WPD (South Wales) 1.1 million customers Western Power Distribution 14
Slide 16: Pennsylvania Electricity Distribution Rate Regulation
Pennsylvania Electricity Distribution Rate Regulation • Retail distribution of electricity and natural gas are regulated by the Pennsylvania Public Utility Commission – Pennsylvania deregulated the generation of electricity in 1997 – Transmission and wholesale sales of electricity are regulated by t
Slide 17: PA and International Delivery Operational Update
PA and International Delivery Operational Update PA Delivery • PPLEU completed 5 of 6 RFPs for 2010 POLR supply Bids for final RFP due October 5, 2009 with PUC approval expected October 8 • Rate increase prepayment plan in place; over 10% participation • Filed rate increase deferral plan with the PU
Slide 18: PPL Electric Utilities Procurement Plan for 2011 and Beyond
PPL Electric Utilities Procurement Plan for 2011 and Beyond • PPL filed procurement plan with PUC on August 28 • PUC approved settlement agreement in the case on June 18 • Purchase electricity supply for 2011 to mid-2013 four times a year, beginning 3Q 2009 • Solicit supply contracts for 12-and 24-m
Slide 19: Attractive Transmission Development Project
Attractive Transmission Development Project • PPL Electric to build Pennsylvania portion of the 150-mile Susquehanna to Roseland, NJ 500 kV transmission line. New Jersey portion of the line to be built by PSEG. • Project needed for reliability and is part of PJM’s Regional Transmission Expansion Pro
Slide 20: UK Electricity Distribution Regulation
UK Electricity Distribution Regulation • Electricity and natural gas supply and distribution are regulated by the UK’s Office of Gas and Electricity Markets. • Electricity distribution revenues are set every five years through a Distribution Price Control Review (DPCR) process. – Price control is ba
Slide 21: Capital Expenditures by Segment
Millions $939 $691 $869 $938 $798 $648 $286 $295 $576 $649 $504 $535 $278 $251 $428 $448 $460 $477 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 2008A 2009E 2010E 2011E 2012E 2013E Supply PA Delivery International Delivery $1,503 $2,035 $1,873 $1,237 Capital Expenditures by Segment 20 $1,762 $1,660
Slide 22: Pennsylvania Delivery Rate Base
Millions $693 $811 $952 $1,221 $1,469 $1,528 $2,081 $2,207 $2,353 $2,513 $2,664 $2,803 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2008A 2009E 2010E 2011E 2012E 2013E Transmission Distribution & Other Pennsylvania Delivery Rate Base $3,018 $3,305 $3,734 $4,133 $4,331 $2,774 21
Slide 23: Free Cash Flow before Dividends Forecast
($605) ($38) ($315) $685 $367 $280 ($30) ($134) $1 ($700) ($400) ($100) $200 $500 $800 2008A 2009E 2010E Supply Segment PA Delivery Segment International Delivery Segment Free Cash Flow before Dividends Forecast Millions 22 Note: See Appendix for the reconciliation of cash flow measures.
Slide 24: Continued Dividend Growth
$1.00 $1.10 $1.22 $1.34 $1.38 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 2005 2006 2007 2008 2009 $/Share Annualized Continued Dividend Growth 23
Slide 25: Liquidity Profile
Liquidity Profile (1) Reported as of 3/31/2009 Diverse bank group consisting of 23 banks committed under domestic facilities, with no bank having more than 14% of commitments. 24 Institution Facility Expiration Date Total Facility (Millions) Letters of Credit Outstanding (1) (Millions) Drawn (1) (Mi
Slide 26: PPL Energy Supply Collateral Profile
PPL Energy Supply Collateral Profile Millions 25 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Available Credit Capacity Cash Posted Borrowings/CP Outstanding Lett
Slide 27: Debt Maturities
Debt Maturities (1) PPL Capital Funding $201 million maturity paid off in March 2009 (2) PPL Electric Utilities prefunding done in 10/2008 and 5/2009 for 2009 maturity Note: As of 5/22/2009 26 2009 2010 2011 2012 2013 PPL Energy Supply $0 $0 $500 $0 $737 PPL Capital Funding 0 (1) 0 0 0 0 PPL Electri
Slide 28: Strong Expected Earnings Growth
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2008A* 2009* 2010 Strong Expected Earnings Growth Forecast 27 * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. $2.02 $4.20 Per Share $1.90 $1.60 $3.60
Slide 29: PPL
PPL
Slide 30: Market Prices
Market Prices ELECTRIC PJM On-Peak Off-Peak ATC(2) Mid-Columbia On-Peak Off-Peak ATC(2) GAS(3) NYMEX TZ6NNY PJM MARKET HEAT RATE(4) CAPACITY PRICES (Per MWD) EQA Actual 2008 2009 2010 2011 2012 $81 $51 $58 $63 $66 $49 $39 $43 $46 $50 $69 $45 $50 $54 $58 $65 $35 $46 $52 $56 $51 $28 $37 $41 $44 $59 $3
Slide 31: Proactive Coal Supply Management Supports Growth in Margins
Proactive Coal Supply Management Supports Growth in Margins * Based on existing contracts as of 2/28/2009 A-2 • Supply region diversity • Fleet trains (>1600 cars) Projected 2009* Projected 2010* Central App 6% Powder River Basin 6% Central Pa 13% Mine Mouth 20% Northern App 55% Central Pa 13% Powde
Slide 32: Load-following Components Example
0 20 40 60 80 100 120 2009 2009 2010 $/MWH Shaped Energy & Capacity Including Congestion Other Adders Line Losses GRT Load-following Components Example A-3 Total $105 $82.00* $45.47 Total $51.23 * Shaped price based on $63/MWH ATC energy price, $150/MW-Day capacity price, and congestion. $48.29 Tota
Slide 33: Supply Segment Reconciliation of Cash from Operations to Free Cash Flow
Supply Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-4 (203)Investment in Energy Project $685($38)($605)Free Cash Flow before Dividends (61)10(58)Other Investing Activities-net (869)(691)(939)Capital Expenditures Increase/(Decrease) in cash due to: $1
Slide 34: PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-5 8303Asset Sales & Other ($315)$280$367Free Cash Flow before Dividends (576)(295)(286)Capital Expenditures (293)Less Transition Bond Repayment Increase/(Decrease) in cash due to: $261$567$ 643
Slide 35: International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-6 ($134)($30)$ 1Free Cash Flow before Dividends (428)(251)(278)Capital Expenditures Increase/(Decrease) in cash due to: $294$221$ 279Cash from Operations 201020092008 Actual Projecte
Slide 36: 2009-2010 Sensitivities
2009 -2010 Sensitivities EPS Impact See Appendix A-1 for market price assumptions. A-7 Note: Discrete sensitivities based on changes to individual item, which ultimately may be interrelated. 2009 2010 $10/MW-Day Capacity Price Change >$0.00 >$0.00 $1/MWh of Unhedged Baseload Sales ±<$0.01 ±$0.01 $1/
Slide 37: Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Reconciliation of 12 Months Ended Reported Earnings and Earnings from Ongoing Operations A-8 Pennsylvania International Supply Delivery Delivery Total 12 Months Ended March 31, 2009 Reported earnings $1.28 $0.40 $0.74 $2.42 Special Items: MTM adj's from energy-related, non-trading economic hedges 0.
Slide 38: Reconciliation of PPL's Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations High Low 2009 2009 2008 2007 Earnings from Ongoing Operations per share of common stock $1.90 $1.60 $2.02 $2.60 Special items (net of taxes): economic hedges 0.13 0.13 0.67 0.08 Impairment of nuclear decom. trust investme
Slide 39: Credit Ratings
Credit Ratings A-10 BBB Issuer Rating AAAAaa Tax-Exempt Bonds* STABLE NEGATIVE NEGATIVE Outlook A-A-A3 Senior Secured Debt F-2A-2P-2 Commercial Paper BBBBBBBaa3 Preferred Stock BBBA-Baa1 Issuer Rating A-A-A3 First Mortgage Bonds AA-/A-A3/Baa1Tax-Exempt Bonds** BBBBBBBaa3 Preference Stock PPL Electri
Slide 40: Credit Ratings (cont.)
Credit Ratings (cont.) A-11 A-3 Commercial Paper A-BBB+ Baa1 Senior Unsecured Debt F2A-2P-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook BBB+ BBB+ Baa1 Issuer Rating A-BBB+ Baa1 Senior Unsecured Debt F2A-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook Western Power Distribution (South West)
Slide 41: PPL Facts
PPL Corporation (NYSE: PPL) is a Fortune 500 company with headquarters in Allentown, Pa. The Company’s diversified corporate strategy is to achieve growth in energy supply margins while limiting volatility in both cash flows and earnings and to achieve stable, long-term growth in regulated delivery
Slide 42: PPL Facts (cont.) Financial and Operating Information
PPL Facts (cont.) Financial and Operating Information Note: See Appendix for the reconciliation of reported earnings per share and earnings per share from ongoing operations. ii(Unaudited) ($ in millions, except per share amounts) 12 Months Ended March 2009 March 2008 Common Equity $5,237 $5,584 Non
Slide 43: Forward-Looking Information Statement
Forward-Looking Information Statement A-14 Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins, sales and supply, marketing performance, hedging, growth, revenues, expenses, rates, regulation, cash flows, credit profile, financing,
Slide 44: Earnings from ongoing operations definition
“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclea