Ppl Corporation · NYSE:PPL
Ppl — EEI International Utility Conference 2009
39 slides from Ppl's conference presentation, Mar 13, 2009
Slide 1: EEI International Utility Conference March 15-17, 2009
EEI International Utility Conference March 15-17, 2009 Exhibit 99.1
Slide 2: 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 3: 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 from ongoing operations. ii(Unaudited) ($ in millions, except per share amounts) Year Ended December 2008 December 2007 Common Equity $5,077 $5,556 Preferred Se
Slide 4: 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 5: 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 6: PPL's Generation Portfolio
PPL’s Generation Portfolio Total Domestic Generation: 12,184 MW Planned Uprate Projects or Additions: 148 MW • Well positioned in attractive markets • Carbon-advantaged • Low-cost, baseload weighted fleet 5 Coal 3,500 Nuclear 2,165 Oil 1,817 Gas 2,282 Hydro 366 CTs 462 QFs 305 Coal 683 Hydro 604 Wes
Slide 7: 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 8: Nuclear Operations: Bell Bend Development Project
Nuclear Operations: Bell Bend Development Project • Early development-stage project to construct a new1,600 MW nuclear plant located near the Susquehanna Station – Site large enough to accommodate two new units • Achievements – Submitted first part of the federal loan guarantee application to the US
Slide 9: PPL Renewables Overview
PPL Renewables Overview • Eleven operating projects in Pennsylvania and New Jersey, with a total capacity of 27 MW – Technologies include solar photovoltaic, landfill gas-to-energy, and cogeneration • Most states within PJM and NEPOOL have proposed or are considering expanding existing renewable por
Slide 10: 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 9
Slide 11: Scrubbers Update
Scrubbers Update Q3-09Brunner Island 1 & 2 Q2-09Brunner Island 3 In Service 5/17/2008Montour 1 In Service 3/8/2008 Montour 2 Scheduled In-Service Dates Montour Scrubber June 2008 Majority of PPL’s coal generation plants expected to have scrubbers installed by end of 2009 10
Slide 12: 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 13: Current Hedge Positions - Electricity and Fuel
Current Hedge Positions -Electricity and Fuel Note: As of 12/31/2008 12 2009 2010 2011 2012 Electricity Sales East 95% 80% 43% 23% West 93% 72% 66% 46% Total 95% 79% 47% 26% Uranium 100% 100% 100% 100% Coal East 100% 84% 71% 49% West 100% 100% 86% 77% Total 100% 89% 75% 57% Unhedged Coal – million t
Slide 14: 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 Output $20 $30 $40 $50 $60 $70 $80 $/M W h Average Sale Price 13
Slide 15: Regulated Delivery
Regulated Delivery PPL Electric Utilities 1.4 million customers WPD (South West) 1.4 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 Delivery Operational Update
PA Delivery Operational Update PA Delivery • PPLEU completed 4 of 6 RFPs • Bids due for 5th RFP March 30 with PUC approval expected April 2 • Filed Procurement Plan for 2011-2013 – Evidentiary Hearings held February 11-13 • 10% of eligible customers enrolled in Rate Phase-In Plan • Filed plan to pro
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 August28; review expected to take seven months • Purchase electricity supply for 2011 to mid-2013four times a year, beginning 3Q 2009 • Solicit supply contracts for 12-and 24-month increments and spo
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: Cash Flow Forecast
Cash Flow Forecast Millions ($300) ($100) $100 $300 $500 $700 2007A 2008A 2009E 2010E Free cash flow before dividends 20 Note: See Appendix for the reconciliation of cash flow measures.
Slide 22: Liquidity Profile
Liquidity Profile (1) Reported as of 12/31/2008 Diverse bank group consisting of 23 banks committed under domestic facilities, with no bank having more than 14% of commitments. 21 Institution Facility Expiration Date Total Facility (Millions) Letters of Credit Outstanding (1) (Millions) Drawn (1) (M
Slide 23: PPL Energy Supply Collateral Profile
PPL Energy Supply Collateral Profile (Millions of Dollars) - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Available Credit Capacity Cash Posted Borrowings/
Slide 24: Debt Maturities
Debt Maturities (1) PPL Electric Utilities $400 million prefunding done in 10/2008 for 2009 maturity As of 12/31/2008 23 ($Millions) 2009 2010 2011 2012 2013 PPL Energy Supply $0 $0 $500 $0 $737 PPL Capital Funding 201 0 0 0 0 PPL Electric Utilities 486 (1) 0 0 0 500 WPD Group 0 0 0 0 0 Sub Total $6
Slide 25: 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 24
Slide 26: Supply Segment Open EBITDA
Supply Segment Open EBITDA *Based on forward market prices as of December 31, 2008 2010E 2011E 2012E Generation Output - MWh 55.5 55.8 56.7 Unhedged Gross Margin* 2,637 2,732 2,741 O&M (859) (899) (929) Open EBITDA 1,778 1,833 1,812 Fuel 309 239 190 Power 214 92 166 Other 7 5 8 Above/(Below) Market
Slide 27: Strong Long-Term Earnings Growth Forecast
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2007A* 2008A* 2009 2010 Strong Long-Term Earnings Growth Forecast 26 * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. $2.60 $2.02 $4.20 Per Share $1.90 $1.60 $3.60
Slide 28: 2009-2012 Sensitivities
2009 -2012 Sensitivities EPS Impact 2009 2010 2011 2012 $10/MW-Day Capacity Price Change >$0.00 >$0.00 >$0.00 ±$0.03 $1/MWh of Unhedged Baseload Sales ±<$0.01 ±$0.01 ±$0.04 ±$0.06 $1/MWh of Unhedged Total Sales ±<$0.01 ±$0.02 ±$0.05 ±$0.07 1% Generation Availability ±$0.02 ±$0.03 ±$0.03 ±$0.03 See A
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 $63 $69 $69 $69 $49 $47 $51 $52 $52 $69 $55 $59 $60 $60 $65 $48 $57 $59 $59 $51 $38 $44 $46 $46 $59 $4
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: Reconciliation of Cash from Operations to Free Cash Flow before Dividends
Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions of Dollars) A-4 303898Asset Sales (203)Investment in Energy Project $347$231($237)$513Free Cash Flow before Dividends (61)18(58)39Other Investing Activities-net (1,762)(1,218)(1,503)(1,685)Capital Expenditures --(293
Slide 34: Capital Expenditures by Segment
Millions $939 $678 $752 $790 $286 $289 $582 $649 $278 $251 $428 $448 $0 $400 $800 $1,200 $1,600 $2,000 2008A 2009E 2010E 2011E Supply PA Delivery International Delivery $1,503 $1,887 $1,762 $1,218 Capital Expenditures by Segment A-5
Slide 35: 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 2006 Per Share Earnings from Ongoing Operations $1.90 $1.60 $2.02 $2.60 $2.25 Special items (net of taxes): economic hedges 0.67 0.08 (0.03) Reversal of cost recovery - Hurricane Isabel (0.02)
Slide 36: Credit Ratings
Credit Ratings A-7 BBB Issuer Rating AAAAaa Tax-Exempt Bonds* STABLE NEGATIVESTABLE Outlook A-A-A3Senior Secured Debt F-2A-2P-2Commercial Paper BBBBBBBaa3Preferred Stock BBBA-Baa1Issuer Rating A-A-A3First Mortgage Bonds AABaa1Tax-Exempt Bonds** BBBBBBBaa3Preference Stock PPL Electric Utilities BBBBB
Slide 37: Credit Ratings (cont.)
Credit Ratings (cont.) A-8 A-3 Commercial Paper A-BBB+ Baa1 Senior Unsecured Debt F2A-2P-2 Commercial Paper POSITIVE STABLE STABLE Outlook BBB+ BBB+ Baa1 Issuer Rating A-BBB+ Baa1 Senior Unsecured Debt F2A-2 Commercial Paper POSITIVE STABLE STABLE Outlook Western Power Distribution (South West) PLC
Slide 38: Forward-Looking Information Statement
Forward-Looking Information Statement A-9 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, d
Slide 39: 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