manitoba hydro corporate update · manitoba hydro 2012/13 & 2013/14 electric general rate...
TRANSCRIPT
Manitoba HydroCorporate Update
Presentation to Moody’s Investors ServiceMay 16, 2012
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AgendaD Financial Results
D Capital Overview
C Power Sale Agreements
C Liquidity & Projected Financing
C Financial Targets
C Rates
C Energy Jobs Fund
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Financial Results
ManitobaHydro
Financial ResultsIncome Statement for the Fiscal Years Ended March 31st ($ are in millions)
Revenues(net of cost of gas)
Expenses
Net Income
Actual2011
Projected2012
Forecast2013
Rate Increases:ElectricityGas (Distribution)
Financial Ratios:Debt! EquityInterest Co~erage
2.9%*0.8%
73:271.27
2.0%0.0%
74:261.10
3.5%2.0%
76:241.05
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* Rolled-back to 1.9%.
4
$1,758 $1,706 $1,858
1,608 1,641 1,827
$150 $65 $31
Capital Overview
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Major Generation and Transmission Projects
El 200 MW Wuskwatim G.S. (20 12/13) $1.4 billion
o Bipole III (20 17/18) $3.3 billion
o 695 MW Keeyask G.S. (2019/20) $5.6 billion
o 1,485 MW Conawapa G.S. (2024/25) $7.8 billion
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Capital Expenditures (CEF11-2)
$2,500
$2,000
$1,500 Conawapa
0,C0
$1,000 Bipole Ill
kwatimPointdu Bois
$500 Other Major
$0
Fiscal Year Ending
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Power Sale Agreements
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Power Sale Agreements
D 375 MW! 500 MW Sale to Northern StatesPower
Starting in 2015 (10 years
D 250 MW Sale to Minnesota PowerStarting in 2020 (15 years)
ci soo MW Sale to Wisconsin Public ServiceStarting in 2018 (15 years)
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Liquidity & Projected Financing
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Cash Flow from Operations (IFF11-2)
Current Outlook eBase Capital
600
nU,C0
400S
2012 2013 2014 2015 2016 2017 2018 2019 2020
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Projected New Debt FinancingRequirements (IFF11-2)
2200
2000
1800
1600
1400
U)
5 1200
1000
800
600
400
200
02012 2015 2016 2018 2019 2020 2021 2022
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Financial Targets
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Equity Ratio
IFF1 1 -2 Target
35%
30%
25:70rr ii20/0
II10:1111 iiIi
‘-‘en, ‘Sb’ $~ %MI,c~ •~ It• • • • ••• • •v#•V######~v~ $‘~
Fiscal Year Ending
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Interest Coverage Ratio
IFF11-2 Target
1.80
1.60
1.40
1.20 ~1111111.00 1111110.80 1111110.60 1111110.40 1111110.20 1111110.00
n_tn rfrfflflflflWqf•Fiscal Year Ending
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Rates
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Average Retail Price of ElectricityTen Lowest Cost Provinces! States in North America
8.0
7.5.14
7.0 6.82 6.83 6.84 6.91 6.94
6.426.5 6.2 —C
6.0 5.81
5.5
— 5.04.
r ,~é
0~~44>
Source: US Dept of Energy (November 2011) & Edison Electric Survey (July 2011)(Exchange rate: 1 US$ = 1 Cdn)
AManitobaHydro 18
Utility Rate Changes
Cumulative Current2006 2007 2008 2009 2010 2011 2012Increases Rates Index
Manitoba0.0% 2.2% 5.0% 2.9% 2.8% * 2.0% 2.0% 18.1% 100%Hydra Interim
Approved
10.5% 7.1%BC Hydra 1.5% 2.1% 2.8% 9.7% 7.3% Interim- Interim- 48.4% 119%
Approved Approved
Hydro 5.3% 1.9% 2.9% 1.2% 0.4% (0.4%) (0.5%) 11.1% 108%Quebec
NewBrunswick 6.9% 5.9% 3.0% 3.0% 3.0% 0.0% 0.0% 23.7% 172%Pawer
Nova Scotia8.7% 3.8% 0.0% 9.3% 0.0% 6.1% 8.6% 42.0% 189%Pawer
SaskPower 4.9% 4.2% 0.0% 8.5% 4.5% 0.0% 0.0% 23.9% 149%
* Rolled-back to 1.9%
Manitoba 19Hydro
Energy Jobs Fund
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Energy Jobs FundD Announced in the April 2012 Budget.C Comprised of a $30-million fund “to ensure
Manitoba businesses can take full advantage ofthe economic opportunities that will come withthe biggest expansion of Manitoba Hydro indecades.”
C The legislation is referred to as Bill 13,The Renewable Energy Jobs Act.
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Questions?
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