Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Day (September 2018)
14 slides from Canadian Utilities Limited Class A's investor day presentation, Sep 14, 2018
Slide 1: 2018 Investor Day Presentation
2018 INVESTOR DAY PRESENTATION SEPTEMBER 14, 2018
Slide 2: Regulated Utilities
REGULATED UTILITIES ELECTRIC TRANSMISSION ELECTRIC DISTRIBUTION $5,227M Rate Base $2,476M Rate Base NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION INTERNATIONAL NATURAL GAS $2,537M Rate Base $1,633M Rate Base DISTRIBUTION $1,177M Rate Base 2018 INVESTOR DAY PRESENTATION 28
Slide 3: Utilities Achieve Top Tier Returns on Equity
UTILITIES ACHIEVE TOP TIER RETURNS ON EQUITY 14% 13% CU Inc. ROE +2.33% on average above AUC 12% approved ROE from 11% 2007‐2017 10% 9% 8% • Alberta Utility average is a simple average and includes: AltaGas, AltaLink, Enmax 7% Distribution, Enmax Transmission, EPCOR Distribution, EPCOR Transmission,
Slide 4: PBR 2.0 Highlights
PBR 2.0 HIGHLIGHTS PBR PBR 2.0 Efficiency Carry‐over ECM up to 0.5% additional ROE for the years ECM up to 0.5% additional ROE for the years 2023 and 2024 Mechanism (ECM) 2018 and 2019 based on certain criteria based on certain criteria Productivity Adjuster 1.16% 0.30% (X Factor) Recovered through
Slide 5: Regulatory Update
REGULATORY UPDATE 2017 2018 2019 2020 Gas and Electric Decision Decision Decision Distribution 2018 to 2022 Received Expected Expected Performance Based Regulation (PBR) 2.0 2017 2018 2019 2020 2018 to 2020 Generic Decision Decision Decision Cost of Capital (GCOC) Received Expected Expected Electric
Slide 6: Cumulative Effects on Risk / Uncertainty / Costs
CUMULATIVE EFFECTS ON RISK / UNCERTAINTY / COSTS 2018 INVESTOR DAY PRESENTATION 32
Slide 7: Long-Term Contracted Capital Investment
LONG-TERM CONTRACTED CAPITAL INVESTMENT HYDROELECTRIC FORT MCMURRAY WEST HYDROCARBON STORAGE COGENERATION GENERATION 500 KV TRANSMISSION $1.0 BILLION (2018–2020) 2018 INVESTOR DAY PRESENTATION 33
Slide 8: Alberta PowerLine
ALBERTA POWERLINE Fort McMurray West 500 kV Transmission Project • The design and planning phases were completed and construction commenced in August 2017. • Land preparation and tower foundation installation and tower assembly is proceeding ahead of schedule. The target energization date of June 20
Slide 9: Coal to Gas Conversion Strategy
COAL TO GAS CONVERSION STRATEGY Battle River • Partial conversion (50%) completed on BR4 Mar 2018 • Proceeding with “Dual Fuel” conversion of BR5 with commercial operation date (COD) of Dec 2019 • Proceeding with increasing natural gas interconnection to the site to support the conversion work with
Slide 10: Mexico Expansion
MEXICO EXPANSION Mexico Attractiveness • Energy Reform offers opportunities for energy infrastructure investment • Attractive GDP growth forecast Gomez • Acquired and built a total of 46 MW of electricity Palacio generation, including hydroelectric generation; San Luis contacted to build 26 MW of na
Slide 11: Australia Success
AUSTRALIA SUCCESS ATCO Gas Australia ROE +3.34% on average above ERA approved ROE from 2015-2017 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2015 2016 2017 Financial ROE Approved ROE 2018 INVESTOR DAY PRESENTATION 37
Slide 12: Storage & Industrial Water Growth
STORAGE & INDUSTRIAL WATER GROWTH We build, own and operate non‐regulated industrial water, natural gas storage, hydrocarbon storage, and NGL related infrastructure • 85,200 m3/day water infrastructure capacity • 400,000 m3 hydrocarbon storage capacity • 52 PJ natural gas storage capacity • ~ 116 km
Slide 13: 2018 Investor Day Presentation
2018 INVESTOR DAY PRESENTATION SEPTEMBER 14, 2018
Slide 14: Investor Relations contact details
www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada