Uil Co. Ltd. · KRX:049520
Uil — Q2 2008 Earnings Presentation
22 slides from Uil's earnings presentation, Aug 5, 2008
Slide 1: UIL Holdings Corporation Second Quarter 2008 Results
EXHIBIT 99.1 UIL Holdings Corporation Transforming Investment into Future Value Second Quarter 2008 Results James P. Torgerson President and Chief Executive Officer Richard J. Nicholas Executive Vice President and Chief Financial Officer
Slide 2: Safe Harbor Provision
Safe Harbor Provision Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expectations or
Slide 3: Net Income and Earnings per Share, Quarter Ended June 30
‘Net Income (Los) (4M) UL Distribution, CTAand Other ‘Transmission Total UI Net Income UIL Corporate Total Continuing Operations Discontinued Operations -Xceleoom Total Net Income Eamings (Loss) per Share ($/share) UL Distribution, CTAand Other ‘Transtnission Total UI UIL Corporate Total Continuing
Slide 4: 2Q Earnings Highlights
2Q Earnings Highlights 2Q ’08 earnings from continued operations increased nearly 19% compared to 2Q ’07 Transmission earnings more than doubled compared to the 2Q ’07 Earnings from CWIP on the Middletown to Norwalk project, now more than 90% complete Distribution earnings continued to be affected b
Slide 5: 2008 Distribution Rate Case Rationale
2008 Distribution Rate Case Rationale Not earning allowed distribution return, 9.75% In 2007, achieved distribution & CTA combined ROE of 8.93% Forecasted 2008 distribution & CTA combined ROE of 7.5% to 8.0% Compared to the numbers previously utilized in setting rates: Lower kWh sales Increased unco
Slide 6: 2008 Distribution Rate Case Docket No. 08-07-04
2008 Distribution Rate Case Docket No. 08-07-04 Request will seek: Decoupling of revenues from kWh sales Timeline July 9, 2008 – filed notice of intent Application will be filed within 30 to 60 days from July 9, 2008 Early 2009 – decision DPUC has 150 days, plus a 30 day extension to render a decisi
Slide 7: 10-year Cap Ex Plan – August 2008 Update
10-year Cap Ex Plan – August 2008 Update $1.97B Cap ex plan 2008-2017 Distribution $1.26B Transmission $714M 2008 Cap ex forecast - $193M $106M in Distribution $88M in Transmission Middletown to Norwalk 345-kV transmission project Cost - $280M to $295M Increased cost due to increases in the cost of
Slide 8: Capital Expenditure Detail – Aug ’08 Update
Capital Expenditure Detail – Aug ’08 Update
Slide 9: Cap Ex 2008-2017
Cap Ex 2008-2017 Distribution Newly identified projects Revised project estimates Timing changes based on updated load forecast and customer needs C&LM Demand Side Management Incremental C&LM to be proposed in 2008 distribution rate case Support Projects Additional IT related expenditures Transmissi
Slide 10: Investments for the Customer Results in Returns to our Shareowners
Investments for the Customer Results in Returns to our Shareowners Average Rate Base Total $849 $1,023 $1,075 $1,116 $1,171 $1,333 $1,427 CAGR 9.04% T 20.02% D 11.79% Distribution not including C&LM
Slide 11: Peaking Generation
Peaking Generation On June 25, 2008, the DPUC awarded GenConn Energy a contract to build 200 MW of new peaking generation
Slide 12: GenConn Energy LLC
GenConn Energy LLC Regulated cost-of-service approach utilizing a contract for differences Initial ROE of 10.25% with an annual adjustment index (9.75% lifetime floor) Proposed 50/50 debt to equity 30-year O&M costs reviewed annually in a limited DPUC rate case Project financing will support peaking
Slide 13: 2Q and YTD 2008 Results Summary
2Q and YTD 2008 Results Summary
Slide 14: 2Q 2008 Earnings Details
2Q 2008 Earnings Details Distribution, CTA & Other Lower kWh sales volume, $0.05 per share compared to 2Q ‘07 Actual kWh sales was 3.5% lower than 2Q ’07 5.2% lower after adjusting for weather 2Q distribution and CTA combined ROE for the 12 months ending 6/30/08, 7.84% Increased interest expense Tra
Slide 15: Reaffirming Consolidated 2008 Earnings Guidance
Reaffirming Consolidated 2008 Earnings Guidance CAGR based on actual 2007 results and earnings projection for 2008. Assumes UI earns its distribution allowed return on equity in 2010. Includes 6 months of peaking generation earnings and an equity issuance in 2010. ** Assumes UI earns a distribution
Slide 16: 2008 Guidance Variables
2008 Guidance Variables Assumes the distribution and CTA combined return on equity of 7.5% to 8.0% in 2008, compared to its allowed return on equity of 9.75% Maintaining the allowed capital structure of 48% equity / 52% debt CTA forecast reflects earning the allowed return on equity of 9.75% Strande
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix il on
Slide 19: Middletown to Norwalk Transmission Project
Middletown to Norwalk Transmission Project EXPERIENCE & DEMONSTRATED CAPABILITIES Cap Ex: $280-$295 million More than 90% complete Forecasted to be in service by early 2009 All underground One of, if not the largest, 345-kV Gas Insulated Switchgear substation in North America Rate base growth: $285-
Slide 20: ISO-NE Economic Study Request – Transmission Opportunity
ISO-NE Economic Study Request – Transmission Opportunity UI* submitted a request for an economic study to ISO-NE on April 1, 2008 Originate in central Maine (alternative: New Brunswick) Tap Maine and/or Canadian renewables and base load (e.g. nuclear) Line is almost exclusively submarine Deliver up
Slide 21: Peaking Generation: The Hybrid Generation Model
Peaking Generation THE HYBRID GENERATION MODEL CAN PROVIDE THE “BEST OF BOTH WORLDS” 2007 legislation recognized the need for more peaking generation in Connecticut UI/NRG Partnership UI’s cost-of-service expertise and record of delivering customer benefits NRG’s expertise in developing, building an
Slide 22: Legal, Accounting & Regulatory
Legal, Accounting & Regulatory | HEPC, O&M, { CommOps & | Site Lease { Agreements