Ppl Corporation · NYSE:PPL
Ppl — Corporate Update (March 2006)
9 slides from Ppl's corporate update, Mar 29, 2006
Slide 1: Holtwood Redevelopment Project March 29, 2006 Meeting
Holtwood Redevelopment Project March 29, 2006 Meeting
Slide 2: Preliminary Holtwood Drought Operations Proposal
PRELIMINARY HOLTWOOD DROUGHT OPERATIONS PROPOSAL
Slide 3: Background
Background • Option developed – in response to agency drawdown concerns prior to July 1 (fish spawning) and financial impact on Project economics. – due to recent announcement of Brunner Island cooling towers for thermal load reduction + previously announced Flue Gas Desulfurization (Scrubber) Proje
Slide 4: Financial Background
Financial Background • $270 million Project investment must be repaid through revenues. • Project is marginal with respect to investment criteria (Rate of Return) and there is a risk that investment requirement will grow. • Revenue Contributors/Risks – Energy (Low risk) – AR, Spinning Reserve (Mediu
Slide 5: Drought Operations Rationale
Drought Operations Rationale • Revenue buffer (reduced consumptive use make- up costs) can help minimize project financial risks. • Value of using Holtwood storage for Brunner Island consumptive use make-up during droughts has a value to PPL that is comparable to summer reservoir drawdown.
Slide 6: Preliminary Analysis of Use of Holtwood Storage During Droughts
PRELIMINARY ANALYSIS OF USE OF HOLTWOOD STORAGE DURING DROUGHTS AS BRUNNER ISLAND CONSUMPTIVE USE MAKE-UP COOLING TOWERS 15.2 MGD NOMINAL SCRUBBERS 4 MGD TOTAL 19.2 MGD PRE-EXISTING CONSUMPTIVE USE 8 MGD NOMINAL NEW MAKE-UP REQUIREMENT 11.2 MGD NOMINAL NOMINAL STORAGE REQUIRED (AF) FOR COMPENSATION
Slide 7: Preliminary Assessment of Historical Drought Periods
Preliminary Assessment of Historical Drought Periods (Based on Harrisburg Q7-10 of 2543 cfs +200 cfs Raystown release) Drought Operations (Years with 10 or more Days) Max Drawdown before 9/15 Max Drawdown based (Rec Season) on Consecutive Start Date # Days End Date Notes (feet) drought days 9/19/190
Slide 8: Expected Drawdown During Critical Drought Period
Expected Drawdown During “Critical Drought Period” (Preliminary but believed to be conservative) PRELIMINARY 1930 DROUGHT OPERATIONS ANALYSIS Date Min Lake Max Lake Date Min Lake Max Lake Date Min Lake Max Lake 5/15/1930 167.5 169.75 8/28/1930 167.50 169.75 10/5/1930 163.50 169.75 8/9/1930 167.5 169
Slide 9: Illustration of 1930 Drought Operations: Lake Elevation
Lake Elevation (Feet) 163.0 164.0 165.0 166.0 167.0 168.0 169.0 170.0 5/15/1930 5/22/1930 5/29/1930 6/5/1930 6/12/1930 6/19/1930 6/26/1930 7/3/1930 Full Pond Level = 169.75 7/10/1930 7/17/1930 7/24/1930 7/31/1930 8/7/1930 8/14/1930 Min Lake 8/21/1930 Date 8/28/1930 9/4/1930 9/11/1930 Max Lake 9/18/1