Slide 1: EEI Financial Conference
Exhibit 99.2 EEI Financial Conference Hollywood, Florida November 1-4, 2009
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: Investment Highlights
Investment Highlights • Significant increase in financial performance – Earnings expected to increase substantially in 2010 driven by transition to market based electricity prices after approximately 10 years of fixed generation rates – Dividends continue to be viewed as an important component of sh
Slide 4: PPL's Generation Portfolio
PPL’s Generation Portfolio 3 MoronyRyanCochrane Rainbow Black Eagle Kerr Thompson Falls Holter Hauser Madison Mystic Lake Corette Colstrip Montour Keystone Conemaugh Lake Wallenpaupack Susquehanna Martins Creek Lower Mount Bethel Ironwood Brunner Island Safe Harbor Holtwood HydroCoal Nuclear Gas/Oil
Slide 5: Multi-year Hedging Program
Band 1 Band 2 Band 3 Note: As of 9/30/2009 …provides higher level of earnings and cash flow predictability 2010 2011 2012 99% 89% 58% { Target Range Actual Hedge Level Hedges Swaps/Options 96% 89% 58% Load-following 3% 0% 0% Multi-year Hedging Program…
Slide 6: Current Fuel Hedge Positions
Note: As of 9/30/2009 2009 2010 2011 2012 Uranium 100% 100% 100% 100% Coal East 100% 97% 83% 60% West 100% 100% 100% 90% Total 100% 98% 88% 68% $35 $40 $45 $50 $55 Balance of 2009 2010 2011 max collar price fixed base price min collar price Weighted Average $/Ton at Mine (1) 7% 11% % Diesel Surcharg
Slide 7: PPL Electric Utilities
PPL Electric Utilities • Transmission and Distribution business with 1.4 million customers in Pennsylvania • Attractive rate base investment opportunities to support infrastructure and reliability • Superior customer service • Constructive regulatory relationships
Slide 8: PPL Electric Utilities Rate Base
Millions $3,006 $3,442 $3,907 $4,290 $4,679 $2,809 CAGR Distribution = 6.8% Transmission = 19.7% PPL Electric Utilities Rate Base
Slide 9: Attractive Transmission Development Project
Attractive Transmission Development Project 8 • 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 P
Slide 10: Western Power Distribution
Western Power Distribution • Electricity Distribution company that delivers electricity to 2.6 million end users in the United Kingdom • No commodity exposure • Highly attractive regulatory construct • Final proposal for DCPR5 expected in November
Slide 11: Strong Expected Earnings Growth
* Earnings from ongoing operations - See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Forecast $2.02 $3.50 Per Share $1.90 $1.60 $3.10 Strong Expected Earnings Growth
Slide 12: Slide 12
Slide 13: Market Prices
Market Prices (1) Market prices based on the average of broker quotes as of 9/30/2009 (2) 24-hour average (3) NYMEX and TZ6NNY forward gas prices on 9/30/2009 (4) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price Actual 2008 2009 2010 2011 2012 $81 $44 $59 $63 $65 $49 $32 $39 $4
Slide 14: Diverse and Balanced Fleet
Baseload 63% Peaking 18% Intermediate 19% Coal 34% Gas/Oil 38% Nuclear 18% Hydro 8% QFs 2% PJM 85% WECC 11% Coal 49% Gas/Oil 10% Nuclear 32% Hydro 9% Market Segment Installed Capacity MW Diverse and Balanced Fleet Geography Production GWh NEPOOL 3% NYISO 1% Baseload oriented fleet augmented by attra
Slide 15: Environmental Control Equipment
Environmental Control Equipment Keystone(2) Conemaugh(2) Control Device Removes Unit 1 Unit 2 Unit 3 Unit 1 Unit 2 Unit 3 & 4 Unit 3 & 4 Unit 1 & 2 Unit 1 & 2 Low Nox Burners NOx SCR NOx Scrubbers SO2 Brunner Island Montour Colstrip(1) = Installed = Potential = Under Construction PPL has proactively
Slide 16: Supply Segment Asset Hedge Positions
Supply Segment Asset Hedge Positions 2009 2010 2011 2012 Baseload Expected Generation* (1,000 MWhs) 51.4 52.0 52.2 53.4 East 42.9 43.5 43.9 45.0 West 8.5 8.5 8.3 8.4 Current Hedges (%) 99% 99% 89% 58% East 99% 100% 90% 55% West 96% 90% 83% 73% Average Hedged Price (Energy Only) ($/MWh) $46 $59 $59 $
Slide 17: Supply Segment Marketing and Trading Overview
NEPOOL 24% PJM 74% PJM 71% NEPOOL 27% Supply Segment Marketing and Trading Overview Year-Over-Year Change Energy Demand for PPL EnergyPlus Load Following Contracts 2009 2010 0.0% Expected Gross Margin $35 Mil $35 Mil -2.0% -1.0% -4.0% -6.0% - -8.0% -10.0% -12.0% -14.0% - -13.0% -16.0% -15.0% PJM MIS
Slide 18: 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 19: PPL Electric Utilities 2011 to mid-2013 Procurement Plan
PPL Electric Utilities 2011 to mid-2013 Procurement Plan • Residential load to be supplied under 12- and 24-month load-following contracts, 5- and 10-year fixed block products, and spot purchases • Small commercial and industrial to be supplied under 12- and 24-month load-following contracts, and sp
Slide 20: PPL Electric Utilities Procurement Plan Schedule
August 11, 2009 July 19, 2011 October 20, 2009 October 18, 2011 January 19, 2010 January 9, 2012 April 20, 2010 April 3, 2012 July 20, 2010 July 17, 2012 October 19, 2010 October 16, 2012 April 18, 2011 January 22, 2013 P P P Completed PPL Electric Utilities 2011 to mid-2013 Procurement Plan Schedul
Slide 21: 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 (OFGEM) • Electricity distribution revenues are set every five years through a Distribution Price Control Review (DPCR) process – Price control
Slide 22: Capital Expenditures by Segment
$1,503 $1,299 $1,888 $2,185 $1,933 $1,845 Capital Expenditures by Segment
Slide 23: Free Cash Flow before Dividends Forecast
Millions Note: See Appendix for reconciliation of cash from operations to free cash flow before dividends Free Cash Flow before Dividends Forecast
Slide 24: Liquidity Profile
Liquidity Profile (1) Reported as of 9/30/2009 A-12 Institution Facility Expiration Date Total Facility (Millions) Letters of Credit Outstanding (1) (Millions) Drawn (1) (Millions) Availability (Millions) PPL Energy Supply 5-year Credit Facility Jun-2012 $3,225 $455 $285 $2,485 Bilateral Credit Faci
Slide 25: PPL Energy Supply Collateral Profile
PPL Energy Supply Collateral Profile
Slide 26: Debt Maturities
Debt Maturities Note: As of 9/30/2009 A-14 2009 2010 2011 2012 2013 PPL Energy Supply $0 $0 $500 $0 $737 PPL Capital Funding 0 (1) 0 0 0 0 PPL Electric Utilities 0 (2) 0 0 0 500 WPD Group 0 0 0 0 0 Total $0 $0 $500 $0 $1,237 (Millions) (1) PPL Capital Funding $201 million maturity paid off in March
Slide 27: Supply Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $ 595 $741 $1,437 Increase/(Decrease) in cash due to: Capital Expenditures (939) (753) (892) Investment in Energy Project (203) Asset Sales 216 39 Other Investing Activities-net (58) (15) (61) Free Cash Flow before Dividends ($605) $189 $523 (Millions) Actual Proj
Slide 28: PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $ 643 $561 $250 Less Transition Bond Repayment Increase/(Decrease) in cash due to: (293) Capital Expenditures (286) (295) (568) Asset Sales & Other 303 Free Cash Flow before Dividends $367 $266 ($318) (Millions) Note: Asset Sales in 2008 includes the net proceeds
Slide 29: International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $ 279 $230 $248 Increase/(Decrease) in cash due to: Capital Expenditures (278) (251) (428) Free Cash Flow before Dividends $ 1 ($ 21) ($180) (Millions) Actual Projected International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before
Slide 30: Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations Forecast Actual 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): Unrealized gains (losses) from energy-related, non-trading econ
Slide 31: Credit Ratings
Moody’s Standard & Poor’s Fitch PPL Corporation Issuer Rating Baa2 BBB BBB Outlook NEGATIVE NEGATIVE STABLE PPL Energy Supply Issuer Rating BBB BBB Tax-Exempt Bonds* Aaa AAA Senior Notes Baa2 BBB BBB+ Outlook STABLE NEGATIVE STABLE PPL Capital Funding Issuer Rating BBB Senior Unsecured Debt Baa2 BBB
Slide 32: Credit Ratings (cont.)
Credit Ratings (cont.) Commercial Paper A- BBB+ Baa1 Senior Unsecured Debt F2 P-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook BBB+ BBB+ Baa1 Issuer Rating A- BBB+ Baa1 Senior Unsecured Debt F2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook Western Power Distribution (South West) PLC BBB+ BB
Slide 33: PPL Corporation
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 34: Forward-looking statements
Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses, cash flow, asset disposition, marketing performance, hedging, regulation, corporate strategy and generating capacity and performance, are “fo
Slide 35: Earnings from ongoing operations definition
“Earnings from ongoing operations” excludes the impact of special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include unrealized gains and losses from energy-related, non-trading economic hedges, foreign currency-related economic hedges and im