Ppl Corporation · NYSE:PPL
Ppl — Barclays CEO Energy-Power Conference 2012
29 slides from Ppl's conference presentation, Sep 5, 2012
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference ©PPL Corporation 2012 September 6, 2012 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: PPL Well-Positioned for Future Success
PPL Well-Positioned for Future Success Rate-regulated business provides earnings and dividend stability in weak economic environment Approximately 70% of projected 2012 EPS from regulated businesses Substantial organic growth in rate base: ~8% CAGR from 2012-2016 Business Risk Profile rated “Excelle
Slide 4: U.K. Regulated Segment Investment Highlights
U.K. Regulated Segment Investment Highlights Highly attractive rate-regulated business with significant growth prospects Regulator-approved 5-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation Real-time return of and ret
Slide 5: Midlands Integration - Improved Network Performance
Midlands Integration - Improved Network Performance Customer Minutes Lost Customer Interruptions (per 100 customers) 25.9% Improvement 39.7% Improvement 96% Improvement 21.6% Improvement 18 Hour Standard Target 60
Slide 6: U.K. Regulatory Framework Change DPCR5 to RIIO-ED1
U.K. Regulatory Framework Change DPCR5 RIIO-ED1 Revenue Determination RPI - X (cost efficiency model) RIIO (Revenue = Incentives + Innovation + Outputs) Price Control Period 5 years 8 years Financeability WACC (fixed for price control period) WACC (annual debt adjustments based on iBoxx 10+ year ind
Slide 7: Ofgem 2012 Initial Proposal Comparison
Ofgem 2012 Initial Proposal Comparison Electricity Transmission (RIIO-T1) Gas Transmission (RIIO-T1) Gas Distribution (RIIO-GD1) Electricity Distribution (DPCR5) Price Control Period 8 years (1 April 2013 - 2021) 8 years (1 April 2013 - 2021) 8 years (1 April 2013 - 2021) 5 years (1 April 2010 - 201
Slide 8: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights Efficient, well-run utility focused on safety, reliability and customer service Projected rate base CAGR of 9.6% through 2016 Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 ye
Slide 9: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Significant growth in transmission portion of 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 improve aging infrastructure ROE of 11.68% earned
Slide 10: Supply Segment Investment Highlights
Supply Segment Investment Highlights Very well-positioned competitive generation PJM assets: Low marginal cost nuclear and hydro facilities Efficient supercritical coal units with fuel switching optionality Attractive gas-fired assets that capture market opportunity and back-stop base load unit avai
Slide 11: Dividend Profile
Dividend Profile A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 2 nd quarter declaration. Actual dividends to be determined by Board of Directo
Slide 12: Appendix
Appendix
Slide 13: Reaffirmed 2012 Ongoing Earnings Forecast
Reaffirmed 2012 Ongoing Earnings Forecast $2.15 $2.73 $/Share Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. $2.45
Slide 14: U.K. Electricity Distribution Price Control Review RIIO-ED1 Tentative Schedule
U.K. Electricity Distribution Price Control Review RIIO-ED1 Tentative Schedule Provisional Timing Milestone September 2012 Publication of Strategy Consultation February 2013 Publication of Strategy Decision End May 2013 DNOs submit business plans September 2013 Publication of Initial Assessment of c
Slide 15: 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 Test Year 12-months ended 3/31/2012 12-months ended 3/31/2012 12-months ended 3/31/2012 Requested ROE 11.00% 11.00% 11.00% Rate Base (1) $1.97 billion $0.52 billion $3.98 bi
Slide 16: LG&E and KU Rate Case Schedules
LG&E and KU Rate Case Schedules 1 st Request for information received July 31, 2012 LG&E and KU responses filed August 14, 2012 Supplemental request for information received August 28, 2012 LG&E and KU responses filed September 12, 2012 Intervenor testimony filed September 25, 2012 Request to interv
Slide 17: 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 = ~$23 million in revenue Docket No. R-2012-2290597 Complete filin
Slide 18: PPL Electric Utilities Distribution Rate Case Schedule
PPL Electric Utilities Distribution Rate Case Schedule Completed P P Direct testimony of other parties June 22, 2012 Rebuttal testimony July 16, 2012 Sur-rebuttal testimony August 1, 2012 Evidentiary hearings August 6, 7, 9 and 10, 2012 Close of record August 10, 2012 Main briefs August 29, 2012 Rep
Slide 19: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging Enhancing Value Through Active Hedging Enhancing Value Through Active Hedging 2012 2013 Baseload Expected Generation(1) (Million MWhs) 45.3 49.7 East 38.3 41.5 West 7.0 8.2 Current Hedges ( % ) 96- 100% 92- 96% East 98- 102% 98- 102% West 90- 94% 65- 69% Averag
Slide 20: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 6/30/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices Balance of 2012 2013 2014 ELECTRIC PJM On-Peak Off-Peak ATC(1) Mid- Columbia On-Peak Off-Peak ATC(1) GAS(2) NYMEX TZ6NNY
Slide 21: Capital Expenditures
Capital Expenditures ($ in billions) (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 mechanism based on historical experience and future projections. (1) (2) $3.5 $4.2 $4.1 $3.7 $2.9
Slide 22: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth ($ in billions) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Includes RAV for WPD Midlands. Figures based on assumed exchange rate of $1.57 / GBP and are as
Slide 23: Free Cash Flow before Dividends
Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Reconciliation of Cash from Dividends Operations to Free Cash Flow before Dividends (Millions of Dollars) (Millions of dollars) $531 $314 ( $ 1,010) ( $1,200) ( $1,000) ( $800) ( $60
Slide 24: Debt Maturities
Debt Maturities Debt Maturities ( Millions) PPL Capital Funding LG& E and KU Energy ( Holding Co LKE) Louisville Gas & Electric Kentucky Utilities PPL Electric Utilities PPL Energy Supply WPD 2012 $0 (1) 0 0 0 0 6 0 2013 $0 0 0 0 0 751 0 (2) 2014 $0 (3) 0 0 0 10 (4) 318 0 2015 $0 400 250 250 100 317
Slide 25: Liquidity Profile
Liquidity Profile Liquidity Profile Liquidity Profile Total Expiration Facility Drawn Availability Institution Facility Date (Millions) (Millions) (Millions) Letters of Credit Outstanding & Commercial Paper Backstop (Millions) PPL Energy Supply (1) Syndicated Credit Facility Oct-2016 $3,000 $662 $ 0
Slide 26: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Earnings from Ongoing Operations Special Ite
Slide 27: 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 28: 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, which is an indicator of operating performance determined in accordance with gene
Slide 29: 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