Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — 2022 EEI Financial Conference
34 slides from Eversource Energy (d/b/a)'s conference presentation, November 2022
Slide 1: 2022 EEI Financial Conference
EVERSOURCE ENERGY 2022 EEI FINANCIAL CONFERENCE November 13-15, 2022
Slide 2: Safe Harbor Statement
EVERSOURCE ENERGY Safe Harbor Statement All per-share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the
Slide 3: Eversource is the Largest New England Utility
EVERSOURCE ENERGY Eversource is the Largest New England Utility and 1 of the 15 Largest in the United States Eversource Electric Customers 3.26 million Natural Gas Customers 886,000 Water Customers 236,000 Employees 9,500 Assets $50 billion 2
Slide 4: Total Shareholder Return Has Outperformed the Industry
EVERSOURCE ENERGY Eversource’s Total Shareholder Return Has Outperformed the Industry Over the Medium and Longer Term Total Shareholder Return 2021 3-Year 5-Year 10-Year Eversource 8.2% 52.0% 90.8% 245.2% EEI 39-Company Index 17.1% 45.6% 68.6% 183.0% S&P 500 28.7% 100.4% 133.4% 362.6% Ranking in EEI
Slide 5: A Unique Investment Opportunity
EVERSOURCE ENERGY A Unique Investment Opportunity Projected long-term EPS growth: Upper half of 5%-7% from core business − Electric transmission growth platform, about 35% of rate base − Continued O&M discipline − Natural gas system upgrades that include replacement of aging Transmission infrastru
Slide 6: Strengthening Climate Leadership
EVERSOURCE ENERGY Strengthening Climate Leadership 5
Slide 7: Industry-Leading Carbon Neutrality Goal Helps the Region Meet Its Targets
EVERSOURCE ENERGY Industry-Leading Carbon Neutrality Goal Helps the Region Meet Its Targets Eversource Targets Regional Targets Carbon Neutral By 2030 80+% GHG Reductions By 2050 Reducing electric line loss Industry-leading energy efficiency Lowering methane emissions from programs gas distrib
Slide 8: Science-based Target and Eversource's Commitment
EVERSOURCE ENERGY Science-based Target and Eversource’s Commitment What is a Science-based Target? A Science-based Target (SBT) aims to provide a pathway for companies to support deep cross-sector emission reductions These targets are intended to prevent the global average temperature from risin
Slide 9: Eversource's SBT Timeline
EVERSOURCE ENERGY Eversource’s SBT Timeline Eversource’s carbon-neutrality goal and SBTs are complementary to each other – Both address our operational Scopes 1 and 2 emissions, while the SBT will go further to also address indirect Scope 3 emissions Significant reductions in the carbon intensit
Slide 10: First US Energy Company To Target Carbon Neutrality By 2030
EVERSOURCE ENERGY Eversource Was Already the First US Energy Company To Target Carbon Neutrality By 2030 In 2019, we announced our industry leading goal to reduce emissions from 5 2021 GHG Footprint key operational areas: 4% – Line loss 8% 7% – Leaks from natural gas distribution 9% – Facilities –
Slide 11: Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors
EVERSOURCE ENERGY Eversource’s Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors Number of ESG & Infrastructure Very strong ratings among leading ESG raters Funds Holding ES Shares One of the most diverse Boards in the utility 400 industry Nation’s leading energy
Slide 12: Offshore Wind Update
EVERSOURCE ENERGY Offshore Wind Update 11
Slide 13: Offshore Wind Update
EVERSOURCE ENERGY Offshore Wind Update South Fork Wind construction continues to progress – Construction of conduit system in town roads and along the Long Island Railroad is ahead of schedule and nearly complete – Construction of the marine portion of the project will begin this month with the se
Slide 14: Offshore Wind Updates
EVERSOURCE ENERGY Offshore Wind Updates Assumptions July 2022 October 2022 Costs Locked in for Three Projects 82% 82% Offshore Investment to Date $1.5B $1.8B Expected Spending in 2022 $900M - $1B $900M - $1B Expected Spending 2023 - 2026 $3B - $3.6B $3B - $3.6B Expected Long-Term Average ROE 11-13%
Slide 15: Overview of Offshore Wind Procurement by State
EVERSOURCE ENERGY Overview of Offshore Wind Procurement by State New York and Rhode Island conducting solicitations for up to 4,600 MW and 1,000 MW, respectively (In MWs) OSW Target Awarded Remaining Authority Massachusetts 5,600 3,209 2,391 Rhode Island 1,438 438 1,000 Connecticut 2,304 1,108 1,1
Slide 16: Growing Regulated Capital Investment Requirements
EVERSOURCE ENERGY Growing Regulated Capital Investment Requirements 15
Slide 17: Projected Capital Expenditures For Core Businesses
EVERSOURCE ENERGY Projected Capital Expenditures For Core Businesses $18.1 Billion 2022-2026 $4,500 $4,000 $3,897 $3,684 $3,562 $3,541 $254 $3,494 $3,504 $3,500 $154 $224 $239 $163 $208 $203 $214 $3,053 $3,064 $144 $176 $190 $206 $3,000 $239 $921 $239 $849 $110 $127 $ In Millions $799 $926 $895 $938
Slide 18: Key Elements Inside and Outside Our Current Earnings CAGR Expectations
EVERSOURCE ENERGY Key Elements Inside and Outside Our Current Earnings CAGR Expectations Included in Forecast Not Included Execution of $18 billion (2022-2026) AMI capital investment forecast Grid Modernization in CT or NH Continuation of Grid Modernization in Significant electric vehicle
Slide 19: Core Businesses Expected to Drive EPS CAGR to Upper Half of 5-7%
EVERSOURCE ENERGY Well Performing Core Businesses Expected to Drive EPS CAGR to Upper Half of 5 – 7% Through 2026 $4.04- $4.14 $3.11 $3.25 $3.45 $3.64 $3.86 $2.53 $2.65 $2.81 $2.96 $2.28 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022E* 2023E 2024E 2025E 2026E * Reflects non-
Slide 20: Plan to Update 5-Year Regulated Cap Ex Plan Through 2027
EVERSOURCE ENERGY We Plan to Update 5-Year Regulated Cap Ex Plan Through 2027 During Year-End 2022 Earnings Call Provide annual updates for electric, gas and water distribution investments Transmission cap-ex plan to be updated for project completions, revisions of existing projects, and additio
Slide 21: AMI Implementation Under Active Review by MA and CT Regulators
EVERSOURCE ENERGY AMI Implementation Under Active Review by MA and CT Regulators AMI - MA Briefing period ended June 27, 2022 Decision expected Q4 2022 AMI - CT Briefing period ended April 29, 2022 Additional written comments filed on July 20, 2022 Decision expected by either year end 2022 or early
Slide 22: Proposed Capital Investments to Unlock Renewable DER in Massachusetts
EVERSOURCE ENERGY Proposed Capital Investments Needed to Unlock Renewable Distributed Energy Resources (DER) in Massachusetts Interconnection upgrades needed to deliver additional clean energy into our system – Current proposal would enable up to 1 GW of solar Proposal establishes fixed construc
Slide 23: DER – Area Map of Six Solar Cluster Proposals
EVERSOURCE ENERGY DER – Area Map of Six Solar Cluster Proposals Plainfield- Blandford I-90 I-91 MA CT Plymouth Freetown Marion/ Fairhaven Cape Dartmouth/ Westport 22
Slide 24: DER Projects – Expected Investment Amounts
EVERSOURCE ENERGY DER Projects – Expected Investment Amounts $637 $902 (1) ($ in Millions) Investment $265 Transmission Distribution Total Investment Investment Investment (1) Approximately 50% of the distribution cost (no transmission) would be reimbursed over time by the developers, based on Evers
Slide 25: Financings and Financial Results
EVERSOURCE ENERGY Financings and Financial Results 24
Slide 26: Equity Issuance Update
EVERSOURCE ENERGY Equity Issuance Update New Shares Treasury Shares $1.2 billion At-The-Market Dividend reinvestment, Program has issued 2.17M employee equity programs shares at a weighted average continue with approximately price of $92.31 through October 810,000 shares issued YTD with proceeds
Slide 27: 2022 Completed Financings
EVERSOURCE ENERGY 2022 Completed Financings Company Transaction Size/Coupon Issuance Date Maturity Eversource Parent Senior Notes $650M @ 2.90% Mar 1, 2027 Feb 25, 2022 $650M @ 3.375% Mar 1, 2032 NSTAR Electric Debentures $450M @ 4.55% May 17, 2022 Jun 1, 2052 EGMA First Mortgage Bonds $100M @ 4.70%
Slide 28: Maturities 2023 - 2025
EVERSOURCE ENERGY Maturities 2023 - 2025 Company Size/Coupon Maturity Company Size/Coupon Maturity CL&P $400M @ 2.50% Jan 15, 2023 Parent $450M @ 2.80% May 1, 2023 Aquarion - NH $3.0M @ 7.71% Jun 1, 2023 Aquarion - MA <$500K Aug 1, 2023 $350M @ SOFR + Parent Aug 15, 2023 PSNH $325M @ 3.50% Nov 1, 20
Slide 29: Third Quarter and Nine Months 2022 Financial Results
EVERSOURCE ENERGY Third Quarter and Nine Months 2022 Financial Results 3Q 2022 3Q 2021 3Q Change 9M 2022 9M 2021 9M Change Electric Transmission $0.44 $0.40 $0.04 $1.32 $1.20 $0.12 Electric Distribution 0.65 0.62 0.03 1.43 1.31 0.12 (Non-GAAP) Natural Gas Distribution (0.07) (0.06) (0.01) 0.42 0.37
Slide 30: Inflation Reduction Act
EVERSOURCE ENERGY Inflation Reduction Act Impact on Offshore Wind Review Impact on Regulated Businesses Tax credits extended to 2032 Lower cost for customers related to Additional 10% if qualified for regulated business investments in domestic content solar and battery storage More seamless
Slide 31: Winter 2022-2023 Energy Costs
EVERSOURCE ENERGY Winter 2022-2023 Energy Costs 30
Slide 32: Summary of Price Increases for Typical Natural Gas Residential Heating Customers
EVERSOURCE ENERGY Summary of Price Increases for Typical Natural Gas Residential Heating Customers Bill Increases effective Nov. 1, 2022, compared with Nov. 2021 – NSTAR Gas: $68/Month, +30% – Eversource Gas of MA: $47/Month, +19% – Yankee Gas: $34/Month, +15% 31
Slide 33: Gas LDCs Plan For and Secure Firm Capacity to Meet Customer Needs
EVERSOURCE ENERGY Gas LDCs Plan For and Secure Firm Capacity to Meet Customer Needs LDCs have contracted for pipeline expansions to meet load growth – Algonquin Gas Transmission – “AIM” and “Atlantic Bridge” – Tennessee Gas Pipeline – “Connecticut Expansion” Gas customers pay lower production ar
Slide 34: Comparison of Natural Gas Heating Costs – CT & MA
EVERSOURCE ENERGY Comparison of Natural Gas Heating Costs – CT & MA 33