Uil Co. Ltd. · KRX:049520
Uil — 42nd Annual EEI Financial Conference 2007
33 slides from Uil's conference presentation, Nov 6, 2007
Slide 1: UIL Holdings Corporation: Transforming Investment into Future Value
EXHIBIT 99.1 UIL Holdings Corporation Transforming Investment into Future Value 42nd Annual EEI Financial Conference Orlando, NovemberFlorida 2007
Slide 2: Safe Harbor Provision
Safe Harbor Provision 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, expectations or
Slide 3: Discussion Topics
Discussion Topics l Introduction l 2007 Accomplishments l 10-year capital expenditure plan and future opportunities l 2007 Financial results and earnings guidance l 2007-2009 Financing plan l Why invest in UIL?
Slide 4: Who We Are…
Who We Are… l The United Illuminating Company, a wholly owned subsidiary of UIL Holdings Corporation l Pure-play utility n 320,000 customers in Connecticut u 290,000 residential customers u 30,000 commercial & industrial customers l $1.78B Total Assets l $885M Market Capitalization* l 920 Employees
Slide 5: Why UIL?
Why UIL? l Competitively positioned for continued success n Solid enterprise foundation n Seasoned management team with industry expertise n Attractive investment opportunities in both distribution and transmission businesses n Future investment opportunities in generation on the horizon n Trusted b
Slide 6: 2007 Accomplishments
2007 Accomplishments l Announced 10-year, $1.75B capital expenditure program n $887 in Distribution, $866 in Transmission n To support robust infrastructure and customer needs l Continued progress on the Middletown/Norwalk transmission project n Nearing 50% complete n In service in 2009 l Partnering
Slide 7: Transforming Investment Into….
Transforming Investment Into…. Customer l Infrastructure investments to ensure reliable service into the future Value l Customer programs with incentives to promote energy conservation and peak reduction Shareowner l Value through regulatory-supported investments Value l Investment deployment which
Slide 8: Leveraging our Core Competencies
Leveraging our Core Competencies l Upgrading aging infrastructure Distribution l Adding capacity to meet peak demand l Meeting customer needs l Upgrading aging infrastructure Transmission l Adding capacity to meet peak demand l Standards compliance 2007 legislation recognized the need for new peakin
Slide 9: Distribution Opportunities
Distribution Opportunities $887 MILLION IN PROJECTS (2007-2016) l Infrastructure Replacement n Upgrading substations n Network facilities n Distribution transformers n Splicing chambers l Support Systems n IT related projects l Capacity n Six new substations l Customer n Connecting customer loads l
Slide 10: Transmission Opportunities
Transmission Opportunities $866 MILLION IN PROJECTS (2007-2016) l Capacity n Six new substations l Aging Infrastructure nSubstation rebuilds nOverhead and underground transmission upgrades l Standards Compliance n l n Fault duty mitigation Middletown/Norwalk n One Transmission upgrades of, if not th
Slide 11: Magnitude of Our Investment
Magnitude of Our Investment Overall CAGR - 8% MORE THAN TRIPLING TRANSMISSION RATE BASE Based on current estimates Note: Includes only capital expenditures through 2012. Total capital expenditures through 2016 are $1.75B ($887 in distribution and $866 in transmission) Prudently investing in infrastr
Slide 12: Recent Connecticut Legislation
Recent Connecticut Legislation An Act Concerning Electricity and Energy Efficiency (“2007 Energy Act”) l Provides for: n Cost of service generation including utility-owned n Decoupling of distribution revenues from sales n Increasing support for energy efficiency programs n Comprehensive procurement
Slide 13: A New Opportunity: The Hybrid Generation Model
A New Opportunity: The Hybrid Generation Model THE HYBRID GENERATION MODEL CAN PROVIDE THE “BEST OF BOTH WORLDS” l 2007 legislation recognized the need for more peaking generation in Connecticut l UI/NRG team will propose new “cost of service” peaking generation projects that will deliver customer v
Slide 14: Energy Efficiency and Load Management
Energy Efficiency and Load Management UI IS ESTABLISHED AS A NATIONAL LEADER IN THE ENERGY EFFICIENCY & LOAD MANAGEMENT FIELD l Two decades of success in the design and delivery of innovative CLM services that provide significant customer, system and environmental benefits l Energy Efficiency n Prog
Slide 15: Third Quarter Earnings
Third Quarter Earnings Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Continuing Operations United Illuminating $0.95 $0.96 $1.58 $1.73 Non-Recurring Item — 0.27 — 0.27 Subtotal United Illuminating $0.95 $1.23 $1.58 $2.00 Corporate (0.03) (0.02) (0.06) (0.10) Di
Slide 16: 2007 Financial Highlights
2007 Financial Highlights l M/N incentive rate filing decision issued and effective in May, granting 100% CWIP in Rate Base and 50 bps incentive adder to ROE on advanced technology portion of project (approx. 50%) l Financing Plan approved by DPUC in June. Successfully priced $175M of Senior Notes i
Slide 17: 2007 Earnings Guidance & Beyond
2007 Earnings Guidance & Beyond as of November 1, 2007 2006 Actual Nine Months Ended 2007 EPS Guidance 2007-2009 CAGR(1) September 30, 2007 United Illuminating $2.12* $1.58 $1.85-$1.95 Company Corporate (0.15) (0.06) (0.10)-(0.05) Total Continuing $1.97* $1.52 $1.78-$1.88** 5%-8% Operations l 2007-2
Slide 18: Financing Plan 2007-2009
Financing Plan 2007-2009 l Consolidated cash on hand at UIL on 9/30/07, $52.7 million n Primarily proceeds from non-utility divestitures n Used to infuse equity into UI l DPUC approved a 3-year debt financing plan of $375 million n Successfully priced $175 million in July ‘07 n Closed on $100 millio
Slide 19: UIL is an Attractive Investment
UIL is an Attractive Investment (1) As of October 31, 2007 * Assumes achieving distribution allowed rate of return Above average potential returns for our shareowners.
Slide 20: Why UIL?
Why UIL? l Competitively positioned for continued success n Solid enterprise foundation n Seasoned management team with industry expertise n Attractive investment opportunities in both distribution and transmission businesses n Future investment opportunities in generation on the horizon n Trusted b
Slide 21: Appendix
Appendix OIL
Slide 22: 10-Year Transmission Planning
10-Year Transmission Planning PROJECTS IN THREE CATEGORIES Distribution capacity solutions exhausted Distribution Capacity l Distribution load transfers l Existing substation expansion Majority of assets exceeding useful lives Aging Infrastructure l Substation rebuilds l Line/Cable replacements l Co
Slide 23: Distribution Capacity Impact of Load Growth
Distribution Capacity 2012 Impact of Load Growth
Slide 24: Aging Infrastructure
Aging Infrastructure OVERVIEW OF AN AGING SYSTEM l Majority of current assets installed in the 1960’s and 1970’s l Common useful lives: 35 to 50+ years SUBSTATIONS n At end of life, risk of failure increases n Reliability diminishes
Slide 25: Standards Compliance
Standards Compliance l North American Electric Reliability Council/Northeast Power Coordinating Council/ISO-NE Reliability Standards: n Thermal u Standards intended to ensure that equipment and components remain within acceptable operating limits n Voltage u Standards intended to keep system voltage
Slide 26: $1.75B Capital Expenditure Details
$1.75B Capital Expenditure Details
Slide 27: Investments for the Customer Results in Returns to our Shareowners
Investments for the Customer Results in Returns to our Shareowners Average Rate Base Substantial, sustained growth in rate base.
Slide 28: Middletown to Norwalk Transmission Project
Middletown to Norwalk Transmission Project EXPERIENCE & DEMONSTRATED CAPABILITIES l Cap Ex: $255-$285 million l In service in 2009 l All underground l One of, if not the largest 345-kV Gas Insulated Switchgear substation in North America l Rate base growth: $260-$290 million l FERC incentives approv
Slide 29: UI Transmission Project Locations
UI Transmission Project Locations Sampling of Some of the Major Projects: Capacity:Trumbull, Shelton, Fairfield, Orange, Hamden, North Branford Substations Aging:Grand, Baird, Sackett Substation Rebuilds Standards Compliance: Naugatuck Valley, Pequonnock Fault Duty, Underground transmission Other: e
Slide 30: Top 7 (Immediate) Major Projects (1-4)
Top 7 (Immediate) Major Projects (1-4) l Middletown to Norwalk n Approximate total T-CapEx: $255-$285 million n Nearly 50% complete n Expected in service: 2009 l Trumbull Substation n Approximate total T-CapEx: $12 million n Approximately 50% complete n Expected in service: 2008 l Shelton Substation
Slide 31: Top 7 (Immediate) Major Projects (5-7)
Top 7 (Immediate) Major Projects (5-7) l Pequonnock Station n Short circuit over-duty issues. n Solution may allow for future generation connection n Preliminary T-CapEx estimate: $45 million n Expected in service: 2011 l Naugatuck Valley Reliability n Current severe low voltage conditions at multip
Slide 32: Highlights
Highlights l Distribution rate case decision in January 2006 n Allows for an increase in rates annual on each January 1st to 1/1/09 n Allowed ROE 9.75%, achieved 9.88% after sharing in 2006 n Capital structure - 48% equity, 52% debt n Sales forecast 1% growth per year n 50/50 sharing on earnings in
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UIL Holdings — 42nd Annual EEI Financial Conference 2007 on 6ix