Slide 1: EEI Financial Conference
Exhibit 99.2 EEI Financial Conference Phoenix, AZ November 11-14, 2012 © PPL Corporation 2012
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: PPL Delivery and Generation Assets
PPL Delivery and Generation Assets U.S. Delivery Generation U.K. Delivery Territories: • PPL Electric Competitive power Assets: WPD (South Territories: • Kentucky Utilities Regulated plants power WPD (South Wales) • Louisville Utilities Gas and plants WPD (West West) Electric WPD (East Midlands) Mid
Slide 4: PPL Well-Positioned for Future Success
PPL Well-Positioned for Future Success • Rate-regulated business provides earnings and dividend stability in weak economic and market environment – Over 70% of projected 2012 EPS from regulated businesses – Substantial projected organic growth in rate base: ~7.6% CAGR from 2012-2016 – Business Risk
Slide 5: Real-Time Recovery of Regulated Capex Spending
Real-Time Recovery of Regulated Capex Spending Approximately two-thirds of regulated capital expenditures earn returns subject to minimal or no regulatory lag ($ in billions) 67% 68% 65% 65% 63% $0.3 $0.3 $0.5 $0.5 $0.4 $0.3 $0.3 $0.6 $0.6 $0.4 $1.1 $1.1 $1.1 $1.1 $1.1 (1) (2) (1) Includes capex for
Slide 6: U.K. Regulated Segment Investment Highlights
U.K. Regulated Segment Investment Highlights • Highly attractive rate-regulated business – Regulator-approved multi-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation – Real-time return of and return on capital investmen
Slide 7: U.K. Regulatory Framework Change
U.K. Regulatory Framework Change DPCR5 RIIO-ED1 Rating RPI - X RIIO Revenue Determination (cost efficiency model) (Revenue = Incentives + Innovation + Outputs) Price Control Period 5 years 8 years WACC WACC Financeability (fixed for price control (annual debt adjustments based on iBoxx 10+ year inde
Slide 8: Ofgem 2012 Initial Proposal Comparison
Ofgem 2012 Initial Proposal Comparison Electricity Gas Gas Electricity Transmission Transmission Distribution Distribution (RIIO-T1) (RIIO-T1) (RIIO-GD1) (DPCR5) 8 years 8 years 8 years 5 years Price Control Period (1 April 2013 - 2021) (1 April 2013 - 2021) (1 April 2013 - 2021) (1 April 2010 - 201
Slide 9: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights • Efficient, well-run utilities focused on safety, reliability and customer service • Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 years – Environmental Cost Recovery (ECR):
Slide 10: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Projected Transmission Rate Base • Significant growth in transmission portion of Growth business which earns a favorable rate of return on a near real-time basis – CAGR of 22.3% in transmission rate base through 2016 driven by initiatives to impro
Slide 11: Pennsylvania Regulated: Transmission
Pennsylvania Regulated: Transmission Susquehanna-Roseland 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 • Already approved by both PA and NJ state utility commissions • RO
Slide 12: Supply Segment Investment Highlights
Supply Segment Investment Highlights • Very well-positioned competitive generation PJM Generation Assets – PJM assets: • Excellent mix of low marginal cost nuclear and hydro facilities, efficient supercritical coal units and attractive gas-fired assets that capture market opportunity and back-stop b
Slide 13: Susquehanna Update
Susquehanna Update • Replaced a small number of cracked blades and Summary of Events returned Unit #1 to service • May 2011: – Identified cracks in Unit #2 turbine blades during bi-annual • Confirmed data from diagnostic equipment installed spring refueling outage in the spring – Announced Unit #1 b
Slide 14: Dividend Profile
Dividend Profile A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth $/Share Annualized (2) (1) (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 3rd quarter declaration. Actual dividends to be dete
Slide 15: Appendix
Appendix © PPL Corporation 2012 15
Slide 16: Increased 2012 Ongoing Earnings Forecast
Increased 2012 Ongoing Earnings Forecast $/Share $2.73 $2.40 $2.30 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. © PPL Corporation 2012 16
Slide 17: U.K. Electricity Distribution Price Control Review Schedule
U.K. Electricity Distribution Price Control Review Schedule RIIO-ED1 Tentative Schedule Provisional Timing Milestone P September 2012 Publication of Strategy Consultation February 2013 Publication of Strategy Decision July 2013 DNOs submit business plans October 2013 Initial Assessment and publicati
Slide 18: LG&E and KU Rate Case Schedules
LG&E and KU Rate Case Schedules P 1st Rest for information received July 31, 2012 P LG&E and KU responses filed August 14, 2012 P Supplemental request for information received August 28, 2012 P LG&E and KU responses filed September 12, 2012 P Intervenor testimony filed October 3, 2012 P Request to i
Slide 19: LG&E and KU Rate Case Facts
LG&E and KU Rate Case Facts LG&E KU Electric Gas Electric Revenue Increase Requested $62.1 million $17.2 million $82.4 million 12-months ended 12-months ended 12-months ended Test Year 3/31/2012 3/31/2012 3/31/2012 Requested ROE 11.00% 11.00% 11.00% Rate Base $1.97 billion $0.52 billion $3.98 billio
Slide 20: PPL Electric Utilities Distribution Rate Case Schedule
PPL Electric Utilities Distribution Rate Case Schedule P Direct testimony of other parties June 22, 2012 P Rebuttal testimony July 16, 2012 P Sur-rebuttal testimony August 1, 2012 P Evidentiary hearings August 6, 7, 9 and 10, 2012 P Close of record August 10, 2012 P Main briefs August 29, 2012 P Rep
Slide 21: PPL Electric Utilities Distribution Rate Case Facts
PPL Electric Utilities Distribution Rate Case Facts Distribution Revenue Increase Requested $104.6 million Test Year 2012 Requested ROE 11.25% 2012 Distribution Rate Base $2.42 billion 2012 Common Equity Ratio 51.03% 1% Change in ROE = ~$23 million in revenue Docket No. R-2012-2290597 Complete filin
Slide 22: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging Capacity revenues are expected to be $385 million, $590 million and $560 million for 2012, 2013 and 2014, respectively. As of September 30, 2012 (1) Represents expected sales of Supply segment based on current business plan assumptions. (2) The 2013 & 2014 rang
Slide 23: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 9/30/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. © PPL Corporation 2012 23 Market Prices Balance of 2012 2013 2014 ELECTRIC PJM On-Peak $41 $46 $ 47 Off-Peak $31 $32 $ 33 ATC(1) $36 $3
Slide 24: Capital Expenditures
Capital Expenditures Lower capital expenditures provide additional financial flexibility ($ in billions) $4.1 $3.9 $3.5 $3.5 $3.1 (1) (2) (1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.57 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mecha
Slide 25: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth 2012E - 2016E Regulatory Asset Base(1) CAGR: 7.6% ($ in billions) $25.3 $24.4 $22.9 $20.8 $18.6 $17.6 (2) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Inclu
Slide 26: Free Cash Flow before Dividends
Free Cash Flow before Dividends Free Cash Flow before Reconciliation of Cash from Dividends Operations to Free Cash Flow (Millions of Dollars) before Dividends (Millions of dollars) (1) Note: Free Cash Flow forecast updated on an annual basis. Charts reflect 2012 Free Cash Flow forecast as presented
Slide 27: Debt Maturities
Debt Maturities Note: As of September 30, 2012 (1) Excludes $1.15 billion of junior subordinated notes due 2018 that are a component of PPL’s 2010 Equity Units and may be put back to PPL Capital Funding if the remarketing in 2013 is not successful. (2) Excludes $978 million of junior subordinated no
Slide 28: Liquidity Profile
Liquidity Profile Note: As of September 30, 2012 • Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 9% of the total committed capacity for the domestic facilities and 16% of the total committed capacity for WPD’s facili
Slide 29: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings © PPL Corporation 2012 29 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Forecast Actual High Low 2012 2012 2011 2010 Earnings from Ongoing Operations $ 2.40 $ 2.30 $ 2.
Slide 30: Forward-Looking Information Statement
Forward-Looking Information Statement Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation
Slide 31: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures "Earnings from ongoing operations," also referred to as "ongoing earnings," should not be considered as an alternative to reported earnings, or net income attributable to PPL shareowners, which is an indicator of operating performance determined in accordan
Slide 32: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures "Kentucky Gross Margins" is a single financial performance measure of the Kentucky Regulated segment's electricity generation, transmission and distribution operations as well as its distribution and sale of natural gas. In calculating this measure, utility