Ppl Corporation · NYSE:PPL
Ppl — EEI Conference 2006
45 slides from Ppl's conference presentation, Nov 3, 2006
Slide 1: EEI Conference November 5-8, 2006
EEI Conference November 5-8, 2006 Exhibit 99.1
Slide 2: PPL Facts: Contacts, Company Overview and Security Ratings
Contacts Timothy J. Paukovits Director-Investor Relations Phone: (610) 774-4124 Fax: (610) 774-5106 tjpaukovits@pplweb.com Joseph P. Bergstein, Jr. Financial Specialist Phone: (610) 774-5609 Fax: (610) 774-5106 jpbergstein@pplweb.com PPL Corporation (NYSE: PPL) is a Fortune 500 company with headquar
Slide 3: PPL Facts: Financial and Operating Information
ii Financial and Operating Information ($ in millions, except per share amounts) Common Equity Preferred Equity Short-Term Debt Long-Term Debt Total Capitalization Total Assets Operating Revenues Reported Earnings Per Share – Diluted Earnings Per Share From Ongoing Operations – Diluted Market Price
Slide 4: Contents
iii Cautionary Statements And Factors That May Affect Future Results ………………………….... Growing Shareowner Value …………………………………………………………………………… Executing Current Growth Plan ………………………………………………………………………. Optimize Energy Marketing …………………………………………………………………………… Growing the Generation Portfolio …………………………………
Slide 5: Appendix contents
iv Appendix Market Prices ………………………………………………………………………………………………..….…… Current Hedge Positions – Electricity and Fuel ………………………………………………………………….. Increases in Generating Capacity …………………………………………………………….…………………… PPL Supply Business Overview ……………………………………………………………..…………………….. Proactive Coal Supply Man
Slide 6: 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 7: Growing Shareowner Value
To grow earnings and dividends to produce superior shareowner returns Growing Shareowner Value n Continued focus on execution of our current growth plan n Extract additional value from our energy marketing operations n Multi-faceted expansion of the generation portfolio
Slide 8: Executing Current Growth Plan
Based on ongoing earnings and mid-point of forecast. See appendix for reconciliation of reported earnings and earnings from ongoing operations. Executing Current Growth Plan n 2006 â 8% EPS growth over 2005 n 2007 â 4.5% EPS growth over 2006 n 2010 â 11% CAGR from 2005
Slide 9: Optimize Energy Marketing
Optimize Energy Marketing n Expand marketing capabilities n Active participant in energy and commodity markets n Managing market, operational and financial risks
Slide 10: Growing the Generation Portfolio
Growing the Generation Portfolio n Power uprates at our plants n Construct new plants n Acquire existing plants
Slide 11: PPL's Generation Portfolio
East 9,903 MW* Coal 3,454* Nuclear 2,120 Oil 1,722 Gas 1,524 Hydro 337 CTs 451 QFs 295 Coal 687 Hydro 602 West 1,289 MW PPL’s Generation Portfolio Total Domestic Generation: 11,192 MW Planned Generation Increases: 395 MW Nuclear Uprate (2007-2010) 185 Hydro Expansion (2011) Coal Uprate (2006-2009) C
Slide 12: Growing the Generation Portfolio
Growing the Generation Portfolio n Power uprates at our plants n Construct new plants n Acquire existing plants
Slide 13: Growing Shareowner Value
To grow earnings and dividends to produce superior shareowner returns Growing Shareowner Value n Continued focus on execution of our current growth plan n Extract additional value from our energy marketing operations n Multi-faceted expansion of the generation portfolio
Slide 14: Scrubbers on Budget and on Schedule
In-Service Dates Montour March 2008 Montour May 2008 Brunner Island 3 Q4-08 Brunner Island 1 & 2 Q2-09 Scrubbers on Budget and on Schedule
Slide 15: PPL Proposal to Transition to Competitive Electricity Markets
PPL Proposal to Transition to Competitive Electricity Markets n Conduct procurements for 2010 POLR supply in March and September of 2007, 2008 and 2009 n Reduces the risk of customer exposure to price spikes in wholesale markets n PUC approval would remove risk for PPL Electric Utilities by ensuring
Slide 16: Supply Margins: Key Drivers of Margin Growth
Supply Margins (Millions) Key Drivers of Margin Growth
Slide 17: Cash Flow Forecast
Millions Note: See Appendix for the reconciliation of cash flow measures. Cash Flow Forecast
Slide 18: Stronger Balance Sheet
Equity % Note: See Appendix for the reconciliation of GAAP equity to adjusted equity. Does not reflect any adjustment to reflect the impact of SFAS 158. Stronger Balance Sheet
Slide 19: Dividend Payout Ratio Greater than 50% after 2006
$/share Annualized Dividend Payout Ratio Greater than 50% after 2006
Slide 20: 11% Long-Term Growth Rate
* Midpoint of $2.20 to $2.30 ongoing earnings forecast. ** Midpoint of $2.30 to $2.40 earnings forecast. *** Earnings from ongoing operations - see Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. * ** Forecast 11% Long-Term Growth Rate
Slide 21: Appendix
Appendix
Slide 22: Market Prices
(1) Market prices based on the average of broker quotes as of 9/30/2006. (2) 24-hour average. (3) NYMEX forward gas price on 9/30/2006. Market Prices
Slide 23: Current Hedge Positions - Electricity and Fuel
A-2 Current Hedge Positions - Electricity and Fuel
Slide 24: Increases in Generating Capacity
Increases in Generating Capacity
Slide 25: PPL Supply Business Overview
Coal 39% Gas/Oil 32% Nuclear 18% Hydro 8% QFs 3% Coal 56% Gas/Oil 5% Nuclear 31% Hydro 8% n In 2006, 95% of our owned generation output is expected to be produced at a fuel cost of approximately $16/MWh or less. PPL Supply Business Overview Installed Capacity MW Production GWh
Slide 26: Proactive Coal Supply Management Supports Growth in Margins
Projected 2007 Coal Supply Central Appalachia Southwest PA Central PA Powder River Basin Montana Mine-mouth Proactive Coal Supply Management Supports Growth in Margins 21% 41% 12% 20% 6% n Supply region diversity n Fleet trains (1600 cars) n Average delivered costs n 4%-5% annual increase 2006 to 20
Slide 27: Key Drivers/Challenges Through 2010
Key Drivers/Challenges Through 2010 n Increased prices for POLR sales n Expiration of supply contracts remarketed at current forward prices n Power plant uprates n Net benefits from the installation of scrubbers at the Montour and Brunner Island coal-fired power plants n Increased fuel and O&M costs
Slide 28: Increasing Prices Under the POLR Contract
Increasing Prices Under the POLR Contract
Slide 29: New NorthWestern Contract Highlights
New NorthWestern Contract Highlights n FERC reaffirmed PPL Montana’s market-based rate authority n PPL Montana signed long-term electricity supply deal with NorthWestern Energy Period On-Peak Supply Off-Peak Supply 7/1/2007-6/30/2010 MW 175 MW 7/1/2010-6/30/2012 MW 150 MW 7/1/2012-6/30/2014 MW 125 M
Slide 30: Improving Cash from Operations
Millions Note: See Appendix for the reconciliation of cash flow measures. Improving Cash from Operations
Slide 31: Reconciliation of Cash from Operations to Free Cash Flows before Dividends
(millions of dollars) Reconciliation of Cash from Operations to Free Cash Flows before Dividends
Slide 32: Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios
Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios
Slide 33: Capital Expenditures by Segment
Millions Capital Expenditures by Segment
Slide 34: Third Quarter Ongoing Earnings Overview
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Third Quarter Ongoing Earnings Overview
Slide 35: Reconciliation of Third Quarter Reported and Ongoing Earnings (Millions)
(Millions of Dollars) Reconciliation of Third Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 36: Reconciliation of Third Quarter Reported and Ongoing Earnings (Per Share)
(Dollars Per Share) Reconciliation of Third Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 37: Reconciliation of YTD Reported and Ongoing Earnings (Millions)
(Millions of Dollars) Reconciliation of YTD Reported Earnings and Earnings from Ongoing Operations
Slide 38: Reconciliation of YTD Reported and Ongoing Earnings (Per Share)
(Dollars per Share) Reconciliation of YTD Reported Earnings and Earnings from Ongoing Operations
Slide 39: Reconciliation of 12 Months Ending Earnings (Millions)
(Millions of Dollars) Reconciliation of 12 Mos. Ending Reported Earnings and Earnings from Ongoing Operations
Slide 40: Reconciliation of 12 Months Ending Earnings (Per Share)
(Dollars per Share) Reconciliation of 12 Mos. Ending Reported Earnings and Earnings from Ongoing Operations
Slide 41: Reconciliation of PPL's Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations
Slide 42: PPL Corporation Credit Ratings
PPL Comporation Iosuer Rati Subordinated Debt Serior Unsecured Shaver debt Outlook PPLErergySupply Issuer Rtg) Serior Notes CommercialP aper Gutloak PPL Capital Funding Serior Unsectred Debt Subordinated D ebt Mediun-Term Notes Outlook PPLElectictUitities Iosuer Rating First Mortgage Bonds Palldion
Slide 43: Credit Ratings: PPL Subsidiaries and WPD
Moov Slandand &Poots Fie PPL Tranetton Bond Co, Traneiton Bonds Aaa pon pon PPL Montana Pass-Though Certfioates Baas bee. Bee tle STABLE STABLE WD Holdings Lirited tesuer Rating Baas BEB. eee. Senior Uneecured Debt Bax2 Bee. Be. Commercial Paper re Preferred Stock utleae STABLE STABLE STABLE \WPD Ho
Slide 44: Forward-Looking Statements Factors
Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses and pension costs, cash flows, cash from operations, dividends, credit profile, capital expenditures and generating capacity, are “forward-loo
Slide 45: Non-GAAP Measure Definitions
“Earnings from ongoing operations” excludes the impact of unusual items. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income, which is an indicator of operating performance determined in accordance with generally accepted accounting princip