Slide 1: 2021 Year-End Investor Call
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2021 Year-End Investor Call February 17, 2022
Slide 2: Safe Harbor Statement
EVERSOURCE ENERGY YEAR END 2021 RESULTS 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
Slide 3: Agenda
EVERSOURCE ENERGY YEAR END 2021 RESULTS Agenda Joe Nolan 2021 – Year in Review President & CEO Offshore Wind Update Clean Energy Initiatives Phil Lembo 2021 Financial Results Executive Vice President & CFO 2022 Guidance 2022 – 2026 Outlook Regulatory Update 2
Slide 4: Joe Nolan
EVERSOURCE ENERGY YEAR END 2021 RESULTS Joe Nolan President & Chief Executive Officer 3
Slide 5: A Look Back at The Year
EVERSOURCE ENERGY YEAR END 2021 RESULTS A Look Back at The Year Operations Provided safe, reliable electric, natural gas and water service through continuing pandemic and active storm year Completed our $3.5 billion core business construction program to enhance reliability, resilience, and custo
Slide 6: Operating Performance Remains Strong
EVERSOURCE ENERGY YEAR END 2021 RESULTS Operating Performance Remains Strong 2021 Average months Top Decile Among Our between interruptions (MBI) 19.2 Peers ELECTRIC RELIABILITY System average Top Quartile interruption duration 69.8 Among Our Peers (SAIDI) Injury rate per 100 Better than SAFETY empl
Slide 7: Eversource's Total Shareholder Return Has Outperformed the Industry
EVERSOURCE ENERGY YEAR END 2021 RESULTS 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%
Slide 8: Dividend Growth Continues to Outperform Peers
EVERSOURCE ENERGY YEAR END 2021 RESULTS Dividend Growth Continues to Outperform Peers Annualized Dividend $3.00 $2.55 $2.50 $2.41 $2.27 $2.14 $2.02 5% - 7% $2.00 +$0.14 $1.50 +$0.14 +$0.13 $1.00 +$0.12 $0.50 +$0.12 $0.00 2018 2019 2020 2021 2022 Payout 62%* 62%* 62%* 62% Ratios: *Reflects non-GAAP r
Slide 9: Our First Joint Project South Fork Wind Now in Construction
EVERSOURCE ENERGY YEAR END 2021 RESULTS Our First Joint Project South Fork Wind Now in Construction New York’s first offshore wind farm – Consisting of 12 wind turbines Received final approval in January 2022 from the U.S. Department of Interior to start construction Land-based construction co
Slide 10: Revolution Wind and Sunrise Wind Now Well Into Siting Process
EVERSOURCE ENERGY YEAR END 2021 RESULTS Revolution Wind and Sunrise Wind Now Well Into Siting Process South Fork Wind Revolution Wind Sunrise Wind Size 130 MW 704 MW 924 MW Filed September 2020; Review Filed March 2020; review schedule was schedule received August 31, 2021 as Construction Operation
Slide 11: Onshoring of Domestic Supply Chain Accelerating
EVERSOURCE ENERGY YEAR END 2021 RESULTS Onshoring of Domestic Supply Chain Accelerating Provider Equipment / Service U.S. Project Procured Manufacturing/Assembly Location American Offshore Services Crew transfer vessels Rhode Island All projects and WindServe Marine Wind turbine installation Dominio
Slide 12: Progress on Connecticut State Pier, New London
EVERSOURCE ENERGY YEAR END 2021 RESULTS Progress on Connecticut State Pier, New London New London ● 60-65 miles to nearest turbines Eversource & Ørsted Area Work is underway to transform Connecticut State Pier (New London) into a heavy lift, deep water port 11
Slide 13: Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets
EVERSOURCE ENERGY YEAR END 2021 RESULTS 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 Offshore wind development Lowering methane emissions from Utili
Slide 14: Gas Operations Launches Pilot Geothermal Project
EVERSOURCE ENERGY YEAR END 2021 RESULTS Gas Operations Launches Pilot Geothermal Project Innovative way to provide clean and sustainable heating and cooling for customers via a geothermal network for residential and commercial customers Explore if geothermal network can be used instead of, or in
Slide 15: Phil Lembo
EVERSOURCE ENERGY YEAR END 2021 RESULTS Phil Lembo Executive Vice President & Chief Financial Officer 14
Slide 16: 2021 vs. 2020 Financial Results
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2021 vs. 2020 Financial Results Full-Year Full-Year 4Q 2021 4Q 2020 Change Change 2021 2020 Electric Transmission $0.38 $0.35 $0.03 $1.58 $1.48 $0.10 Electric Distribution (Non-GAAP) 0.30 0.27 0.03 1.61 1.60 0.01 Natural Gas Distribution 0.22 0.18 0.04 0.59 0.
Slide 17: Key 2022 Earnings Drivers
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2022 EPS Guidance: $4.00-$4.17* Key 2022 Earnings Drivers Transmission capital investments Distribution safety and reliability investment and capital recovery programs and PBR rate adjustment Higher depreciation, property taxes, and interest expense Hi
Slide 18: Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5-7%
EVERSOURCE ENERGY YEAR END 2021 RESULTS Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2026 $4.00- $4.17 $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 * Ref
Slide 19: Projected Capital Expenditures For Core Businesses
EVERSOURCE ENERGY YEAR END 2021 RESULTS 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 Millio
Slide 20: Rate Base by Core Line of Business – Current and Future
EVERSOURCE ENERGY YEAR END 2021 RESULTS Rate Base by Core Line of Business – Current and Future $33.8 billion* 4% 22% Note: Excludes offshore wind $22.4 billion* 4% investments 16% 41% 44% 33% 36% 2020 Year-End Rate Base Projected 2026 Year- End Rate Base Transmission Electric Distribution Natural G
Slide 21: Key Elements Inside and Outside Our New $18.1B Capital Forecast
EVERSOURCE ENERGY YEAR END 2021 RESULTS Key Elements Inside and Outside Our New $18.1B Core Business Capital Investment Forecast Included in Forecast Not Included Execution of updated capital AMI in MA or CT investment forecast Grid Modernization or Increased investment in Boston significant
Slide 22: Status of State and Federal Regulatory Reviews
EVERSOURCE ENERGY YEAR END 2021 RESULTS Status of State and Federal Regulatory Reviews Electric Transmission (Federal Energy Regulatory Commission) 41% of 2021 earnings Pending FERC decision on New England transmission ROEs dating back to 2011 in 4 open cases – Earnings currently reflect base ROE
Slide 23: Key Elements of NSTAR Electric Rate Review
EVERSOURCE ENERGY YEAR END 2021 RESULTS Key Elements of NSTAR Electric Rate Review Key Revenue Requirement Factors Test Year (12 Months Ended) December 31, 2020 Filing Date: January 14, 2022 Revenue Deficiency $89M Decision Date: Average Bill Impact (residential customer) 5.7% December 1, 2022 2021
Slide 24: A Value Proposition That Delivers Results for Investors
EVERSOURCE ENERGY YEAR END 2021 RESULTS A Value Proposition That Delivers Results for Investors Keys to Our Success: Results Delivered: Nine-year average recurring EPS and dividend growth of 6% and 6.9%, respectively, through 2021. 1. Exceed industry EPS and dividend Growth driven by robust regulate
Slide 25: Appendix
EVERSOURCE ENERGY YEAR END 2021 RESULTS APPENDIX 24
Slide 26: $1.1 Billion Increase in 2022-2025 Core Business Capex
EVERSOURCE ENERGY YEAR END 2021 RESULTS $1.1 Billion Increase in 2022-2025 Core Business Capex Since February 2021 Plan Up $502 million $6,000 $5,682 $5,180 $5,000 Up $552 Down $34 million million $4,000 $3,792 $3,625 $3,591 $ in Millions $3,240 $3,000 $2,000 Up $59 Up $53 million million $830 $889
Slide 27: Projected Transmission Capital Expenditures
EVERSOURCE ENERGY YEAR END 2021 RESULTS Projected Transmission Capital Expenditures Other concepts under $1,200 $1,118 development $1,115 $979 $1,000 $235 $278 $861 $834 $808 $800 $277 $ in Millions $261 $168 $161 $480 $600 $459 $462 $382 $459 $446 $400 $200 $400 $381 $240 $218 $207 $201 $0 2021A 20
Slide 28: Transmission Rate Base Growth Projections
EVERSOURCE ENERGY YEAR END 2021 RESULTS Transmission Rate Base Growth Projections $12,000 $10,663 $10,937 $10,302 $9,947 $10,000 $9,404 $2,010 $1,945 $8,719 $1,698 $1,869 $1,549 $8,000 $1,422 $ in Millions $4,400 $4,655 $4,883 $6,000 $3,807 $4,184 $3,481 $4,000 $2,000 $3,816 $4,048 $4,065 $4,033 $4,
Slide 29: Projected Natural Gas Investment 2021 - 2026
EVERSOURCE ENERGY YEAR END 2021 RESULTS Projected Natural Gas Investment 2021 - 2026 $1,200 $1,000 $921 $926 $938 $895 $800 $849 $ in Millions $799 $600 $400 $200 $0 2021A 2022E 2023E 2024E 2025E 2026E 28
Slide 30: Aquarion Rate Base Forecast
EVERSOURCE ENERGY YEAR END 2021 RESULTS Aquarion Rate Base Forecast $1,560 $1,470 Year- End Rate Base $ in Millions $1,376 $1,268 $1,167 $1,037 $887 $942 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E 29
Slide 31: FERC Transmission New England ROE Update
EVERSOURCE ENERGY YEAR END 2021 RESULTS FERC Transmission New England ROE Update Current base: 10.57%; Cap: 11.74% (2014 Opinion 531A) October 2018 FERC Order in New England ROE cases proposed a new methodology to address issues raised by Court in vacating Opinion 531A (New England ROE Complaint
Slide 32: Status Report – Grid Modernization and Advanced Metering Infrastructure
EVERSOURCE ENERGY YEAR END 2021 RESULTS Status Report – Grid Modernization and Advanced Metering Infrastructure Massachusetts Grid Modernization Plan (In Cap-Ex Forecast) Five-Year Plan - capital investment of nearly $400 million for 2022-2026 Connecticut Includes investments in EV infrastructur
Slide 33: Status Report – CT Performance-Based Ratemaking
EVERSOURCE ENERGY YEAR END 2021 RESULTS Status Report – CT Performance-Based Ratemaking Schedule set for PBR investigation to be conducted in 2 phases Phase I – Straw Proposal tentatively scheduled for January 2023 – Articulate regulatory goals – Identify desired public outcomes – Evaluate and a
Slide 34: Eversource First US Energy Company To Target Carbon Neutrality By 2030
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource First US Energy Company To Target Carbon Neutrality By 2030 In 2019, we announced our industry leading goal to reduce emissions from 5 2020 GHG Footprint key operational areas: 4% 7% – Line loss 10% – Leaks from natural gas distribution – Vehicle
Slide 35: Eversource's Progress Toward Carbon Neutrality
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource’s Progress Toward Carbon Neutrality 900,000 828,107 -17% Eversource emissions have greatly 800,000 declined through divestiture of fossil 707,015 685,331 fuel generation over the past several 700,000 decades 600,000 We have seen a 17% decline in
Slide 36: Addressing Largest Sources of New England Carbon Emissions
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource Addressing Largest Sources of New England Carbon Emissions: Transportation, Space Heating and Power Generation 2018 Energy Carbon Emissions by Source New England vs. U.S. 100% 6.1% 19.0% Industrial 14.8% 80% 32.7% 33.0% Power generation 60% 40% 11.4
Slide 37: Most Effective Method of Reducing Emissions: Improve Energy Efficiency
EVERSOURCE ENERGY YEAR END 2021 RESULTS Most Effective Method of Reducing Emissions: Improve Energy Efficiency 16 3 18 2 7 4 Eversource MA, #1 Most Energy Efficient Utility in the United States According to ACEEE, in their second edition of the Utility Energy Efficiency Scorecard Retail Customer Cou
Slide 38: Eversource Recognized as a Leading Energy Company
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource Recognized as a Leading Energy Company Included in Newsweek’s list of Most Responsible Companies Included on the Barron’s 100 Most Sustainable Companies list, based on an evaluation of more than 230 performance indicators that address environmental,