Uil Co. Ltd. · KRX:049520
Uil — Investor Presentation (July 2007)
36 slides from Uil's investor presentation, Jul 17, 2007
Slide 1: UIL Holdings Corporation
EXHIBIT 99.1 Holdings Corporation UIL July 2007 James Torgerson - President and Chief Executive Officer
Slide 2: Safe Harbor Provision
Safe Harbor Provision For more information, contact: Susan Allen - V.P. IR, 203.499.2409, Susan.Allen@uinet.com Michelle Hanson - Mgr. IR, 203.499.2481, Michelle.Hanson@uinet.com Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as
Slide 3: Today's Topics
Today’s Topics Ш Corporate Overview Ш Capital Expenditure Plan Ш Financial Plan and Earnings Guidance Ш Investment Considerations
Slide 4: UIL Holdings Structure
UIL Holdings Structure High Quality, High Yielding Utility
Slide 5: Recent Developments
Recent Developments Strategic Realignment Announced in April 2006 ~ Focus on the Regulated Utility ~ Ш Non-utility divestitures - total 2006 proceeds $143 million q Bridgeport Energy - proceeds of $71 million q Cross-Sound Cable - proceeds of $53 million q Xcelecom - proceeds of $19 million (excludi
Slide 6: Service Territory
Service Territory Ш 335 square miles in southwestern Connecticut Ш 320,000 customers Ш % of revenue for 2006 by customer class: 46% residential, 41% commercial, 11% industrial and 2% other
Slide 7: Highlights
Highlights Ш Distribution rate case decision in 2006 q Allows for an increase in rates annual on each January 1 st to 1/1/09 q Allowed ROE 9.75%, achieved 9.88% after sharing in 2006 q Capital structure - 48% equity, 52% debt q Sales forecast 1% growth per year q 50/50 sharing on earnings in excess
Slide 8: Today's Topics
Today’s Topics Ш Corporate Overview Ш Capital Expenditure Plan Ш Financial Plan and Earnings Guidance Ш Investment Considerations
Slide 9: Overview
Overview Ш Transmission Business Unit (TBU) formed in 2006 q Manage Middletown/Norwalk transmission project q Explore future transmission opportunities q Pursue FERC incentives q Seek to influence ISO-NE planning process q Develop additional transmission infrastructure projects Ш Early 2007, TBU wor
Slide 10: Transmission Planning
Transmission Planning 23% Distribution Capacity Reliability Projects in 3 Categories: 43% Aging Infrastructure 34% Standards Compliance Exhausted Distribution solutions q Distribution load transfers q Existing substation expansion Majority of assets exceeding useful lives q Substations rebuilds q Li
Slide 11: 2012 Distribution Capacity Impact of Load Growth
2012 Distribution Capacity Impact of Load Growth
Slide 12: Aging Infrastructure
Aging Infrastructure Overview of an Aging System: Ш Majority of current assets installed in the 1960’s and 1970’s Ш Common useful lives: 35 to 50+ years q At end of life, risk of failure increases q Reliability diminishes Under 30 years 19% Over 30 years 81% For Example: Substations
Slide 13: Standards Compliance
Standards Compliance Ш North American Electric Reliability Council/Northeast Power Coordinating Council/ISO-NE Reliability Standards: q Thermal • Standards intended to ensure that equipment and components remain within acceptable operating limits q Voltage • Standards intended to keep system voltage
Slide 14: Transmission Plan
Transmission Plan $866 million in projects (2007-2016) Ш Long-term Transmission planning complete Ш Reliability-driven projects q 3 Clear Categories: Distribution Capacity, Aging Infrastructure, Standards Compliance Ш Substantially under UI Control / UI Territory Ш Demonstrated performance on Middle
Slide 15: M-N $240-$270M Transmission Investment Opportunities
M-N $240-$270M Transmission Investment Opportunities Availability of Substitute Solutions e.g. Generation solutions UI Territory State-wide Region-wide Location of the Solution Local Projects $420M
Slide 16: UI Transmission Project Locations
UI Transmission Project Locations ? Sampling of Some of the Major Projects: n Capacity: Trumbull, Shelton, Fairfield, Orange, Hamden, North Branford Substations n Aging : Grand, Baird, Sackett Substation Rebuilds n Standards Compliance: Naugatuck Valley, Pequonnock Fault Duty, Underground transmissi
Slide 17: Top (Immediate) Major Projects
Top 7 (Immediate) Major Projects Ш Middletown to Norwalk q Approximate total T-CapEx: $240-$270 million q Approximately 40% complete q Expected in service: 2009 Ш Trumbull Substation q Approximate total T-CapEx: $12 million q Approximately 35% complete q Expected in service: 2008 Ш Shelton Substatio
Slide 18: Top (Immediate) Major Projects - cont.
Top 7 (Immediate) Major Projects - cont. Ш Pequonnock Station q Short circuit over-duty issues. Solution may allow for future generation connection q Preliminary T-CapEx estimate: $32 million q Expected in service: 2011 Ш Naugatuck Valley Reliability q Current severe low voltage conditions at multip
Slide 19: FERC Authorized Transmission ROEs
FERC Authorized Transmission ROEs 1) ROE available for new PTF identified by ISO-NE in its Regional System Plan (RSP) 2) Applicable to the approximately 50% of the Middletown/Norwalk project costs that meet the advanced transmission technologies approved by the FERC
Slide 20: Distribution Overview / Strategy
Distribution Overview / Strategy $888 million in projects (2007-2016) Key Strategies Ш Proactive assessment of asset life cycle Ш Forecast peak future demand. Maintain capacity margins at substation, feeder and transformer levels Ш Connect customers safely, reliably, on demand Ш Extend engineering a
Slide 21: $1.75B Capital Expenditure Program 2007 - 2016
$1.75B Capital Expenditure Program 2007 - 2016
Slide 22: Average Rate Base 2006 - 2012 Distribution, Transmission & CTA
Average Rate Base 2006 - 2012 Distribution, Transmission & CTA Total $754 $860 $1,000 $1,025 $1,031 $1,112 $1,175 CAGR 8% Transmission CAGR 27% Distribution CAGR 9%
Slide 23: Middletown to Norwalk Transmission Project
Middletown to Norwalk Transmission Project Ш Cap Ex: $240 - $270 million Ш In service in 2009 Ш All underground Ш One of, if not, the largest 345-kV Gas Insulated Switchgear substation in North America Ш Rate base growth: $245 - $275 million Ш 100% CWIP, ROE adder granted Ш FERC incentives approved
Slide 24: Middletown to Norwalk
Middletown to Norwalk SINGER SUBSTATION Largest GIS Substation in North America 345-kV UNDERGROUND CABLE XLPE Cable SYSTEM ENHANCEMENTS Replace Surge Arresters and Ground Grids Project At-A-Glance
Slide 25: Aerial View Singer Substation, Bridgeport CT
Aerial View Singer Substation, Bridgeport CT Singer Substation
Slide 26: Project Process
Project Process Horizontal directional drilling
Slide 27: Project Process
Project Process Singer Substation install of pre-cast wall panels Installing the Duct Bank All of the 36 chambers have been installed
Slide 28: Middletown to Norwalk 2007 Look-Ahead
Middletown to Norwalk 2007 Look-Ahead 345-kV Cable Deliveries Commence GIS Equipment Delivery 345-kV Civil Construction Complete Shunt Reactor Deliveries Transformer Deliveries July August September October November December
Slide 29: Recent CT Legislation
Recent CT Legislation An Act Concerning Electricity and Energy Efficiency (“2007 Energy Act”) Ш 2007 Energy Act provides for electric distribution companies to: q Submit integrated resource plan to DPUC q File plans to build peaking generation on a cost of service basis q Purchase existing generatio
Slide 30: Today's Topics
Today’s Topics Ш Corporate Overview Ш Capital Expenditure Plan Ш Financial Plan and Earnings Guidance Ш Investment Considerations
Slide 31: Financing Plan 2007 - 2009
Financing Plan 2007 - 2009 Ш Consolidated cash on hand at UIL on 3/31/07, $41 million q Primarily proceeds from non-utility divestitures q Used to infuse equity into UI Ш DPUC approved a 3-year financing plan, subject to certain conditions q Issue up to $375 million of debt securities • Refinance ma
Slide 32: Full Year 2006 & 1Q 2007 Financial Results (EPS)
Full Year 2006 & 1Q 2007 Financial Results (EPS) * Includes impact of IRS private letter ruling, $0.27 per share
Slide 33: 2007 Earnings Guidance & Beyond as of May 4, 2007
2007 Earnings Guidance & Beyond as of May 4, 2007 (1) CAGR based on actual 2006 results, excluding the impact of IRS private letter ruling, $0.27 per share, and reflects earning the allowed ROEs. * Includes impact of IRS private letter ruling, $0.27 per share ** Earnings expectations are not intende
Slide 34: Today's Topics
Today’s Topics Ш Corporate Overview Ш Capital Expenditure Plan Ш Financial Plan and Earnings Guidance Ш Investment Considerations
Slide 35: Investment Considerations
Investment Considerations Ш Completed strategic realignment q Divested non-utility businesses to focus on regulated utility • Decreased earnings volatility Ш Committed to long-term growth in regulated utility q Execute Capital expenditure program and grow rate base to increase earnings q Earn allowe
Slide 36: Questions
Questions