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PPL Local roots-global reach 0711

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Presentation from PPL Speakers Bureau about the dramatic growth from a PA-based mid-sized electric utility to a global energy company that ranks among the top 10 in the U.S.

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PPL Local roots-global reach 0711

  1. 1. PPL: Local roots, global reach
  2. 2. Today’s PPL 2 <ul><li>Dramatic changes in recent years </li></ul><ul><li>Global company with strong portfolio </li></ul><ul><li>Transformed business mix with major acquisitions </li></ul><ul><li>One of America’s major energy companies </li></ul>
  3. 3. PPL then and now 2 Year End 1994 Today Generating capacity 7,800 megawatts 19,000 megawatts Revenue $2.7 billion $11 billion Energy delivery customers 1.4 million 10 million Number of employees 7,400 More than 15,000 Geographic scope Eastern and Pennsylvania, Montana, central PA Kentucky, Virginia, south east England and Wales
  4. 4. Global growth strengthens local roots <ul><li>Still dedicated to customer service </li></ul><ul><li>Major investment in Pennsylvania delivery networks </li></ul><ul><li>Strong investor in communities </li></ul><ul><li>Good-paying jobs </li></ul><ul><li>Tax revenues </li></ul><ul><li>Reliable dividend </li></ul><ul><li>Only major energy company headquartered in Pennsylvania </li></ul>3
  5. 5. PPL’s businesses: Regulated <ul><li>In Pennsylvania: </li></ul><ul><ul><li>Transmission regulated by FERC </li></ul></ul><ul><ul><li>Distribution regulated by PUC </li></ul></ul><ul><li>In Kentucky: </li></ul><ul><ul><li>Generation and delivery regulated by state PSC </li></ul></ul><ul><li>In the United Kingdom: </li></ul><ul><ul><li>Delivery regulated by Ofgem (federal) </li></ul></ul>4
  6. 6. PPL’s businesses: Unregulated <ul><li>In Pennsylvania and Montana: </li></ul><ul><ul><li>Generation capacity </li></ul></ul><ul><ul><li>Decisions on adding new capacity </li></ul></ul><ul><ul><li>Improving efficiency/output from existing plants </li></ul></ul><ul><ul><li>PPL EnergyPlus marketing operations </li></ul></ul><ul><ul><li>Keeping options open for additional nuclear capacity </li></ul></ul>5
  7. 7. Why “regulated vs. unregulated” matters <ul><li>Advantages of regulated businesses </li></ul><ul><ul><li>Steady cash flow </li></ul></ul><ul><ul><li>Opportunity for growing rate base </li></ul></ul><ul><ul><li>Strong relationships with regulatory agencies </li></ul></ul><ul><li>Advantages of unregulated businesses </li></ul><ul><ul><li>Opportunity for profit when energy prices increase </li></ul></ul><ul><ul><li>Efficiently run, competitive assets </li></ul></ul><ul><ul><li>Environmentally responsible </li></ul></ul>6
  8. 8. Why “regulated vs. unregulated” matters <ul><li>Recently transformed business mix </li></ul><ul><li>Acquired regulated businesses in Kentucky, United Kingdom </li></ul><ul><li>Regulated business now 75 percent of earnings </li></ul><ul><li>Improves risk and credit profiles </li></ul><ul><li>Solid support for our dividend </li></ul><ul><li>Achieved targeted business balance </li></ul>6
  9. 9. Other advantages of recent acquisitions <ul><li>Kentucky: </li></ul><ul><ul><li>Well-run companies </li></ul></ul><ul><ul><li>Recognized for strong customer service </li></ul></ul><ul><li>WPD Midlands: </li></ul><ul><ul><li>Adjacent to existing PPL operations in the United Kingdom </li></ul></ul><ul><ul><li>Offers opportunity for cost-saving synergies </li></ul></ul><ul><ul><li>Under strong WPD management </li></ul></ul>7
  10. 10. Pennsylvania after deregulation <ul><li>Opportunities to save by shopping </li></ul><ul><li>More than one-third of customers buying power from competitive supplier </li></ul><ul><li>Most large businesses shopping </li></ul><ul><li>Rates considerably lower than some predicted </li></ul><ul><ul><li>Lower natural gas prices led to lower electricity prices </li></ul></ul><ul><ul><li>Law of supply and demand </li></ul></ul>8
  11. 11. PPL’s investment in Pennsylvania <ul><li>Investing more than $3 billion in delivery infrastructure over 5 years </li></ul><ul><li>Improving reliability </li></ul><ul><li>Creating jobs and boosting area companies </li></ul><ul><li>Keeping infrastructure current </li></ul><ul><li>Vegetation management </li></ul><ul><li>Siting new lines </li></ul>9
  12. 12. Making investment easier <ul><li>Current Pennsylvania ratemaking method inefficient </li></ul><ul><ul><li>Could require frequent rate cases </li></ul></ul><ul><li>PPL backs new legislative/regulatory proposals to fund infrastructure investment </li></ul><ul><ul><li>Assure more timely, certain recovery of new investments </li></ul></ul><ul><li>Working with lawmakers </li></ul>10
  13. 13. Smart grid project <ul><li>Another example of PPL improving its infrastructure </li></ul><ul><li>Demonstrating benefits of “smart grid” technology in Harrisburg area </li></ul><ul><ul><li>Improving operations, strengthening service reliability, supporting energy savings </li></ul></ul><ul><li>Will apply model design to entire grid </li></ul>11
  14. 14. Making our communities better places <ul><li>Shared commitment to communities in all our areas </li></ul><ul><li>PPL donates to agencies, educational institutions </li></ul><ul><li>PPL supports economic development agencies </li></ul><ul><li>Strong employee and company support for United Way campaign </li></ul><ul><li>Employee volunteers give countless hours </li></ul>12
  15. 15. Innovative ways to serve customers <ul><li>Offering customer service unheard-of 10 years ago </li></ul><ul><ul><li>Track your usage, bill on website </li></ul></ul><ul><ul><li>Price to compare enables shopping </li></ul></ul><ul><ul><li>Customer focused energy-saving programs </li></ul></ul>13
  16. 16. The future looks bright <ul><li>Solid business performance </li></ul><ul><li>Smart mix of companies </li></ul><ul><li>Innovative services to customers </li></ul><ul><li>Focus on strong service </li></ul>13
  17. 17. Questions <ul><li>Thank you. </li></ul>13

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