Ppl Corporation · NYSE:PPL
Ppl — UBS 2007 Natural Gas & Electric Utilities Conference
44 slides from Ppl's conference presentation, Feb 28, 2007
Slide 1: UBS 2007 Natural Gas & Electric Utilities Conference
Exhibit 99.1 UBS 2007 Natural Gas & Electric Utilities Conference February 28, 2007
Slide 2: Contacts and PPL Corporation overview, 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 (cont.): Financial and Operating Information
PPL Facts (cont.) Financial and Operating Information Note: See Appendix for the reconciliation of reported earnings per share and earnings from ongoing operations. ii
Slide 4: Cautionary Statements And Factors That May Affect Future Results
Cautionary Statements And Factors That May fect Fture Results Growing Shareowner Value Optimize Energy Marketing, Shinking Reserve Marains Create Potential Value for PPL PJM implementing RPM Capacity Market This Year Optimize Energy Marketing, PPL Generation Portion Pennsylvania Generation Expansion
Slide 5: Appendix contents
Append Market Prices Current Hedye Postions ~ Becticty and Fuel, Strong Long-Term Eamings Growth Scrubbers Expeded i be Completed on Buget and on Schedule Generation Uprates Proactive Coal Supply Management Supports Gowth in Margins Key DriversiGhallenges Through 2010 Inereasing Prices Underthe POLR
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
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: Optimize Energy Marketing
Optimize Energy Marketing n Expand marketing capabilities n Active participation in energy and commodity markets n Manage market, operational and financial risks
Slide 9: Shrinking Reserve Margins Create Potential Value for PPL
Reserve Margin Shrinking Reserve Margins Create Potential Value for PPL
Slide 10: PJM Implementing RPM Capacity Market This Year
PJM Implementing RPM Capacity Market This Year n Several regions within PJM are already constrained – PPL region currently projected to be constrained by 2009-2010 planning period – Capacity prices could be higher than the $70 per MW-day we have assumed n Higher value for PPL’s unhedged capacity exp
Slide 11: Optimize Energy Marketing
Optimize Energy Marketing n Expand marketing capabilities – Increased use of structured deals – Expanding geographic reach – Purchased long-term supply from coal plant under development in West Virginia – Evaluating commercial and industrial retail opportunities in PJM n Active participation in ener
Slide 12: PPL's Generation Portfolio
East 9,907 MW* Coal 3,454* Nuclear 2,120 Oil 1,722 Gas 1,524 Hydro 337 CTs 451 QFs 299 West 1,289 MW Coal 687 Hydro 602 PPL’s Generation Portfolio Total Domestic Generation: 11,196 MW Planned Uprate Projects: 349 MW Nuclear Uprate (2008-2010) 137 Hydro Uprate (2001) Coal Uprate (2007-2009) Hydro 602
Slide 13: Pennsylvania Generation Expansion
8,930 MW – Existing Generation 299 MW – Planned Uprates Base load expansion capabilities Pennsylvania Generation Expansion
Slide 14: Growing Constrained Region in PJM Increases Value of PPL Generation
Growing Constrained Region in PJM Increases Value of PPL Generation
Slide 15: Expanding Renewable Energy Portfolio
Expanding Renewable Energy Portfolio n Currently there are not enough renewable energy credits in the market n Plan to invest $100 million to develop renewable projects over next five years – Included in current capex program n Contracts in place with renewable energy facilities
Slide 16: Cash Flow Forecast
Millions Note: See Appendix for the reconciliation of cash flow measures. Cash Flow Forecast
Slide 17: Dividend Payout Ratio Greater than 50% after 2006
$/share Annualized Dividend Payout Ratio Greater than 50% after 2006 *Annualized rate based on quarterly dividend declared in February 2007.
Slide 18: Global Climate Change
Global Climate Change n Pre-eminent public policy issue n Efforts should be national in scope and cover all major industrial and transportation sectors n If mandatory program is adopted, we support cap-and-trade system n PPL to be fully involved in policy debate n PPL is active in renewable energy a
Slide 19: PPL Electric Utilities Rate Filing
PPL Electric Utilities Rate Filing n Modest rate increase request to be filed in late March – For the 12-months ending September 30, 2006 Rate Base $1,926B Equity 43.4% Return on Rate Base 6.97% Return on Equity 8.10% n New rates to be effective beginning in January 2008
Slide 20: Supply Margins and Key Drivers of Margin Growth
Supply Margins (Millions) $1,488 $1,675 $1,818 $1,845 $1,984 $2,748 Key Drivers of Margin Growth
Slide 21: Appendix
Appendix
Slide 22: Market Prices
(1) Market prices based on the average of broker quotes as of 12/29/2006. (2) 24-hour average. (3) NYMEX forward gas price on 12/29/2006. (4) Prices at 12/2005 when 2010 forecast of $3.50 was developed. Market Prices
Slide 23: Current Hedge Positions - Electricity and Fuel
Current Hedge Positions - Electricity and Fuel
Slide 24: Strong Long-Term Earnings Growth
** Earnings from ongoing operations - see Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Forecast * * Midpoint of $2.30 to $2.40 earnings forecast. Strong Long-Term Earnings Growth
Slide 25: Scrubbers Expected to be Completed on Budget and on Schedule
In-Service Dates Montour 1 Q1-08 Montour 2 Q2-08 Brunner Island 3 Q4-08 Brunner Island 1 & 2 Q2-09 Montour Unit #2 Absorber Scrubbers Expected to be Completed on Budget and on Schedule
Slide 26: Generation Uprates
Completed mW In-Service Dates Brunner Island 3 Turbine 18 2006 Colstrip 1&4 10 2006 Total 2B Proposed Brunner Istand 1 Turbine 70 2007 Brunner Island 2 Turbine " 2009 Montour Turbine 16 2008 Susquehanna 39 2008 Susquehanna 69 2009 Susquehanna 29 2010 Colstrip 2 & 3 10 2007-2008 Kerr 12 2007 Great Fa
Slide 27: Proactive Coal Supply Management Supports Growth in Margins
Proactive Coal Supply Management Supports Growth in Margins Projected 2007 Coal Supply Central Appalachia Southwest PA Central PA Powder River Basin Montana Mine-mouth 17% 45% 11% 21% 6% n Supply region diversity n Fleet trains (1600 cars) n Average delivered costs n 4%-5% annual increase 2006 to 20
Slide 28: 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 29: Increasing Prices Under the POLR Contract
Increasing Prices Under the POLR Contract
Slide 30: Ongoing Earnings Overview
(Dollars per Share) Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. Ongoing Earnings Overview
Slide 31: 2006 Ongoing Earnings Contributions
(Dollars per Share) Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations. 2006 Ongoing Earnings Contributions
Slide 32: 2007 Expected Ongoing Earnings Contributions
(Dollars per Share) * Midpoint of forecast Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations. $2.35* 2007 Expected Ongoing Earnings Contributions
Slide 33: Reconciliation of Cash from Operations to Free Cash Flow before Dividends
(millions of dollars) Reconciliation of Cash from Operations to Free Cash Flow before Dividends
Slide 34: Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios
Reconciliation of GAAP Equity Ratios to Adjusted Equity Ratios Actual Actual Forecast Forecast 12/31/05 12/31/06 12/31/07 12/31/10 GAAP Equity to Total Capitalization Ratio 38% 41% 43% 45% Adjustments to Debt (millions of dollars) Less Non-Recourse Debt: Transition Bonds $ 892 $ 605 $ $ - Internatio
Slide 35: Capital Expenditures by Segment
Millions Capital Expenditures by Segment
Slide 36: Reconciliation of Fourth Quarter Reported Earnings and Earnings from Ongoing Operations
(Millions of Dollars) Reconciliation of Fourth Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 37: Reconciliation of Fourth Quarter Reported Earnings and Earnings from Ongoing Operations (per share)
(Dollars Per Share) Reconciliation of Fourth Quarter Reported Earnings and Earnings from Ongoing Operations
Slide 38: Reconciliation of Reported Earnings and Earnings from Ongoing Operations
(Millions of Dollars) Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Slide 39: Reconciliation of Reported Earnings and Earnings from Ongoing Operations (per share)
(Dollars Per Share) Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Slide 40: Reconciliation of PPL's Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations
Slide 41: PPL Credit Ratings
PPL Comporation Iosuer Rates Subordinated Debt Serior Unsecired Shertierm debt Outlook PPLEreraySupply Ipsuer Rating Serior Notes Commercial Paper Outlook PPL Capital Funding Serior Unsecured Debt Subordinated Debt Mediun-Tenm Notes Outlook PPLEledric tities Iosuer Rati First Mortgage Bonds Palldion
Slide 42: Credit Ratings: PPL Transition Bond, PPL Montana, WPD
Moodve Standard &Poots Fite 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. pee. Senior Uneecured Debt Bax2 Bee. B88 Commercial Paper re Preferred Stock utleae STABLE STABLE STABLE \WPD
Slide 43: Forward-looking statements and risk factors
Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins and sales, growth, rates, revenues, expenses, cash flows, cash from operations, dividends, credit profile, financing, capital additions and expenditures, and generating capacity an
Slide 44: Definitions of non-GAAP measures
“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
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