Uil Co. Ltd. · KRX:049520
Uil — Q1 2011 Earnings Presentation
22 slides from Uil's earnings presentation, May 3, 2011
Slide 1: 1Q 2011 Earnings Conference Call
1Q 2011 Earnings Conference Call May 4, 2011 Exhibit 99.1
Slide 2: Note to Investors
Note to Investors James P. Torgerson President and Chief Executive Officer Richard J. Nicholas Executive Vice President and Chief Financial Officer Safe Harbor Provision Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined i
Slide 3: Highlights
Highlights Solid 1Q Net Income Ø Growth in Electric Operations, including GenConn Ø First full quarter of Gas Operations Projected savings from the gas acquisitions are identified Exit from transition services agreement on schedule Implementing plans for growth in gas conversions Executing on capita
Slide 4: Gas Operations
Gas Operations Expected $11.6M of Identified Savings Ø Integration is on schedule Ø Incurring one-time O&M implementation costs of $3.5M (pre-tax) Ø Approximately $18M IT-related capital costs associated with implementation ($M)
Slide 5: Gas Operations
Gas Operations Ø Capitalize on the competitive advantage of natural gas as the economical, abundant and environmentally friendly fuel of choice for customers Ø Aggressively pursue new gas heating customers Ø Generate incremental revenue sufficient to support expanding infrastructure Ø 2011 multi-med
Slide 6: Potential for Gas Heating in CT
Potential for Gas Heating in CT 62% 13% 16% 47% 35% 15% 50% 31% 15% 46% 35% 16% 63% 11% 18% 63% 11% 19% 68% 9% 11% 8% 67% 9% 13% 41% 42% 13% Approximately 37% of businesses & households on UIL gas mains are not currently natural gas customers American Community Survey’s selected housing characterist
Slide 7: Electric Operations
Electric Operations Ø On course with aggressive $2.1B UI base capital expenditure plan for 2010-2019 › Distribution - $1.4B › Transmission - $0.6B › GenConn equity investment - $0.1B Ø Investing in Connecticut portion of New England East West Solution projects, with an investment floor of $60M Ø Con
Slide 8: 50/50 Joint Venture between UI and NRG GenConn Energy
50/50 Joint Venture between UI and NRG GenConn Energy Devon Facility Ø Operating Ø Contractual requirements met on 9/10/10 Middletown Facility Ø 98% complete as of 4/30/11 Ø Expected to be operational in June 2011 Picture as of 3/31/11
Slide 9: Regulatory Update
SCG Potential Overearnings Generic ROE Proceeding UI Electric Decoupling SCG/CNG Rate Case Appeals Regulatory Update Ø On 3/24/11, CNG, SCG & the OCC filed a motion with the DPUC to reopen the CNG & SCG rate cases for the purposes of reviewing and approving a settlement agreement Ø On 4/13/11, the D
Slide 10: Legislative Highlights
Legislative Highlights Session ends June 8th Members of the state House and Senate in CT introduced ~ 100 energy- and technology-related bills Ø UIL is actively engaged in legislative process Proposals include: Ø New Department that combines Department of Environmental Protection and Department of P
Slide 11: Economic Update
Economic Update Non-seasonally adjusted unemployment rate as of 3/11 Ø MA - 8.2% Ø National - 9.2% Ø CT - 9.3% Major cities in service territory trailing national average Ø Hartford - 9.3% Ø New Haven - 13.6% Ø Bridgeport - 14.5%
Slide 12: 1Q 2011 vs. 1Q 2010 Net Income
1Q 2011 vs. 1Q 2010 Net Income Net Income ($M)
Slide 13: 1Q 2011 Financial - Details
1Q 2011 Financial - Details Electric distribution, CTA, GenConn & other Ø 8% increase in 1Q 2011 net income compared to 1Q 2010 › Favorable variance primarily attributable to income from the investment in GenConn, partially offset by increased operating expenses and lower CTA rate base › Earnings of
Slide 14: Liquidity Overview and Debt Maturity Profile
Liquidity Overview (3/31/11) Near-Term Debt Maturities Debt Maturity & Liquidity Profile UI Pollution Control Revenue Bonds UI Equity Bridge Loan UIL Debt retired 2/15/11 SCG, CNG & Berkshire ($M) * * To be remarketed Amounts may not add due to rounding. Based on current plans - expect no need for e
Slide 15: Assumptions
Assumptions › Regulated businesses are expected to earn the allowed return on an aggregate basis › GenConn expected to be fully operational by 6/11 and earn $0.12-$0.14 per share › CTA earnings are expected to decline by $0.07-$0.09 per share from 2010 as rate base continues to be amortized › Incorp
Slide 16: Highlights
Highlights Solid 1Q Net Income Ø Growth in Electric Operations, including GenConn Ø First full quarter of Gas Operations Projected savings from the gas acquisitions are identified Exit from transition services agreement on schedule Implementing plans for growth in gas conversions Executing on capita
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: UIL CapEx Profile
The annual long-term capital spending update will be presented at the Fall EEI conference UIL CapEx Profile * 2010 Gas distribution capex reflects the full year amount; UIL ownership was for 6 weeks effective with the closing on the acquisition. Does not reflect capital for gas conversions growth pl
Slide 20: Near-Term Average Rate Base Profile
Near-Term Average Rate Base Profile 28% 23% 7% 30% 22% 5% 35% 3% 40% 1% 23% 38% 37% 39% 43% 22% 38% 24% 36% 40% 24% Electric distribution CTA Gas distribution* Electric transmission UI’s 50% Share ($M): 2010A 2011P 2012P 2013P 2014P 2015P Avg. GenConn RB Equivalent: $ 51 $ 140 $ 164 $ 156 $ 149 $ 14
Slide 21: Expected Impacts of Bonus Depreciation
Expected Impacts of Bonus Depreciation - ‘10 & ‘11 Based on Current Expectations * Based on current expectations ** Related to the tax year Efficient use of cash benefits from bonus depreciation Ø Expected pension contributions of approximately $73M to the electric & gas pension plans in 2011 › $52.
Slide 22: Final 338(h)(10) Cash Value ($M)
Final 338(h)(10) Cash Value ($M)