Uil Co. Ltd. · KRX:049520
Uil — American Gas Association Financial Forum May 2011
34 slides from Uil's conference presentation, May 13, 2011
Slide 1: American Gas Association Financial Forum May 2011
Exhibit 99 American Gas Association Financial Forum May 2011 AGA - May 2011 1
Slide 2: Note to Investors: Safe Harbor Provision
Note to Investors 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, belief
Slide 3: UIL - Corporate Structure, Service Areas
UIL - Corporate Structure, Service Areas UIL Holdings Corporation Service Area Key UI SCG CNG Berkshire Overlapping Territory The United Illuminating Southern Connecticut Gas Connecticut Natural Gas Berkshire Gas Company Company (UI) (SCG) (CNG) (Berkshire) › Service territory: 335 sq › Service terr
Slide 4: Investment Highlights
Investment Highlights Attractive Regulated › Proven ability to earn allowed electric returns Electric and Gas › Highly experienced with Connecticut regulatory proceedings Utility › Constructive long-term rate plan for Berkshire in Massachusetts FERC-Regulated › 2010 earned composite return on equity
Slide 5: YTD 2011 Highlights
YTD 2011 Highlights üSolid 1Q ’11 Net Income Ø Growth in Electric Operations, including GenConn Ø First full quarter of Gas Operations üProjected savings from the gas acquisitions are identified üExit from transition services agreement on schedule üImplementing plans for growth in gas conversions (h
Slide 6: Gas Operations Integration
Gas Operations Integration Closed on the acquisitions of Southern Connecticut Gas, Connecticut Natural Gas and Berkshire Gas Company on November 16, 2010 Working diligently internalizing the Transition Services Agreement (TSA) ØSupport services such as IT, Finance and Human Resources provided by Ibe
Slide 7: Gas Operations: Expected $11.6M of Identified Savings
Gas Operations Expected $11.6M of Identified Savings* ($M) Ø Incurring one-time O&M implementation costs of $3.5M (pre-tax) Ø Approximately $18M IT-related capital costs associated with implementation * To be realized in 2012 AGA - May 2011 7
Slide 8: Potential for Gas Heating in CT
Potential for Gas Heating in CT American Community Survey’s selected housing characteristics estimates show a large percentage of households in Connecticut do not use natural gas for heating Litchfield (0) Hartford (20) Tolland (6) Windham (0) Connecticut 5% 2% 1% 5% 4% 4% 4% 2% 1% 8% 13% 16% 13% 11
Slide 9: 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 10: Gas Operations Near-term Growth
Gas Operations Near-term Growth Ø Historical customer additions(1) 2009 2010 Heating conversions 5,535 5,728 New construction 901 1,071 Total 6,436 6,799 Ø Targeting 30,000-35,000 additional gas heating customers over the next 3 years › ’11 - 25% increase over ‘10 levels › ’12 - 50% increase over ’1
Slide 11: 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 12: UIL CapEx Profile - Gas Distribution Update
UIL CapEx Profile - Gas Distribution Update $M The annual long-term capital spending will be updated in the Fall of 2011. *2010 Gas distribution capex reflects the full year amount; UIL ownership was for 6 weeks effective with the closing on the acquisition. ** Updated - February 23, 2011 *** Inform
Slide 13: 2011 Electric Distribution & Transmission Capex Detail
2011 Electric Distribution & Transmission Capex Detail Electric distribution investments Electric transmission investments 12% 20% 19% 27% 4% 26% 31% 50% 11% AGA - May 2011 13
Slide 14: 2011 Gas Distribution Capex Detail
2011 Gas Distribution Capex Detail Gas distribution investments 3% 8% 22% 8% 12% 47% AGA - May 2011 14
Slide 15: Examples of Current Distribution Projects
Examples of Current Distribution Projects Central Facility - UI Office & Splice Chamber Remediation Operations Building › Consolidate all UI “Work Centers” onto a single › Rebuild deteriorated underground splicing chambers site referred to as the Central Facility › Under construction › Under constru
Slide 16: Near-term Electric Transmission Reliability Upgrades
Near-term Electric Transmission Reliability Upgrades Grand Avenue 115 kV Switching New Shelton 115/ 13.8 kV Station Rebuild Substation › Addresses short circuit capability issues and › Meets Greater Shelton area load growth aged/obsolete infrastructure › In Planning › Under construction › Planned in
Slide 17: GenConn Energy
GenConn Energy 50/50 Joint Venture between UI and NRG Devon Facility Ø Operating Ø Contractual requirements met in September 2010 Middletown Facility Ø 98% complete as of the end of April Ø Expected to be operational in June 2011 Picture as of 3/31/11 AGA - May 2011 17
Slide 18: Near-Term Average Rate Base Profile - Gas Distribution Update
Near-Term Average Rate Base Profile - Gas Distribution Update Rate Base (Excluding GenConn Equity Investments): $2,309 37% 38% 38% 40% 42% 43% 1% 2% 23% 23% 23% 7% 5% 22% 23% 22% 39% 40% 36% 38% 28% 30% Electric distribution Electric transmission CTA Gas distribution* GenConn Equity Investments: UI’
Slide 19: UI Transmission - NEEWS Investment
UI Transmission - NEEWS Investment UI Participation in CL&P Project: Ø UI’s portion of investment: greater of $60M* or 8.4% of CL&P’s costs for the CT portions … › Greater Springfield Reliability Project › Interstate Reliability Project › Central CT Reliability Project Ø UI deposits through May 5, 2
Slide 20: Renewable-Enabling Transmission
Renewable-Enabling Transmission Significant Region-Wide Need: Potential Solutions Under Study › RPS requirement > 3x current › Need will likely be satisfied by a portfolio available renewables* of projects › CT requirement is > UI’s entire load › One promising example is shown below › Gap will be fi
Slide 21: Regulatory Update
Regulatory Update SCG Potential Overearnings Generic ROE Proceeding SCG/CNG Rate Case Appeals DPUC schedule has not been updated Ø On 3/24/11, CNG, SCG & the OCC filed a motion with UI Electric Decoupling the DPUC to reopen the CNG & SCG rate cases for the purposes of reviewing and approving a settl
Slide 22: AGA - May 2011
OIL UIL HOLDINGS AGA - May 2011 22
Slide 23: GenConn ROE
8% 15% Ø GenConn ROE - 9.75% AGA - May 2011 23
Slide 24: Debt Maturity & Liquidity Profile
Debt Maturity & Liquidity Profile Near-Term Debt Maturities Liquidity Overview (3/31/11) ($M) ($M) * UI Equity Bridge Loan UIL Debt retired 2/15/11 Based on current plans - expect no need for external equity for at least the next 3 years * To be remarketed Amounts may not add due to rounding. AGA -
Slide 25: 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 26: Credit Ratings
Credit Ratings Issuer S&P Moody’s BBB Baa3 UIL Holdings (Stable) (Stable) United BBB Baa2 Illuminating (Stable) (Stable) BBB Baa2 SCG (Stable) (Stable) BBB Baa1 CNG (Stable) (Stable) BBB Baa2 Berkshire (Stable) (Stable) Maintenance of investment grade credit ratings is an important objective AGA - M
Slide 27: Investment Highlights
Investment Highlights Attractive Regulated › Proven ability to earn allowed electric returns Electric and Gas › Highly experienced with Connecticut regulatory proceedings Utility › Constructive long-term rate plan for Berkshire in Massachusetts FERC-Regulated › 2010 earned composite return on equity
Slide 28: Q&A
Q&A AGA - May 2011 28
Slide 29: Appendix
Appendix AGA - May 2011 29
Slide 30: Region-Wide RPS Obligations
Region-Wide RPS* Obligations Region-Wide RPS Obligation thru 2020: Region-Wide Compliance Gap (v. “existing” renewable resources**) forecasted/estimated at ~ 18,000GWh › Unlikely to be satisfied by renewables currently in the ISO-NE queue › Will require significant additional transmission Satisfacti
Slide 31: CT RPS Requirements
CT RPS Requirements Connecticut RPS Requirements (Percentage of Retail Load) Class I resources include energy derived from solar, wind, fuel cell, methane gas from landfills, ocean thermal, wave, tidal, run-of-river hydropower (<5MW, began operation after July 1, 2003), sustainable biomass (NOx emis
Slide 32: Expected Impacts of Bonus Depreciation - '10 & '11
Expected Impacts of Bonus Depreciation - ‘10 & ‘11 Based on Current Expectations Efficient use of cash benefits from bonus depreciation Ø Expected pension contributions of approximately $73M to the electric & gas pension plans in 2011 › $52.2M already contributed during 1Q ‘11 Ø Reduces pension cost
Slide 33: Final 338(h)(10) Cash Value ($M)
Final 338(h)(10) Cash Value ($M) AGA - May 2011 33
Slide 34: Slide 34
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