Slide 1: Eversource Energy Year End 2023 Earnings Report
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 CUSTOMER COMMUNITY EMPLOYEE FINANCIAL CLEAN ENERGY RELIABILITY
Slide 2: Safe Harbor Statement
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 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 discussion includes financial measures tha
Slide 3: Agenda
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Business Update Offshore Wind Divestiture The Future of Eversource – Operational Excellence – Enabling the Clean Energy Future for Customers Joe Nolan – Leading ESG Agenda Chairman, President & CEO Financial Update 2023 Financial Results Offsho
Slide 4: Joe Nolan
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 Joe Nolan Chairman, President & Chief Executive Officer
Slide 5: Offshore Wind Update
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Update Sale Process We have entered into two agreements for the sale of our offshore wind investments – South Fork Wind and Revolution Wind: Global Infrastructure Partners (GIP) – Sunrise Wind: Ørsted South Fork tax equity investment
Slide 6: New England's largest investor-owned water utility
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT New England’s largest investor-owned water utility Approx. 241,000 customers in CT, MA & NH ~92% of customers based in CT 2023 rate base of $1.3 billion; represents 4% of ES consolidated Balance Sheet Book equity: $1.3 billion 2023 Net Income
Slide 7: Financial and Operational Excellence
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Financial and Operational Excellence ELECTRIC SAFETY GAS RELIABILITY RESPONSE Financial Trend Average months between interruptions Injury rate $4.50-$4.67 (MBI) On-time $4.34 per 100 $4.09 emergency $3.86 employees 22.3 (DART) response 0.8 98.0% System
Slide 8: Enabling the Clean Energy Future for Our Customers
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Enabling the Clean Energy Future for Our Customers Electrification plans result in New England electric demand more than doubling by 2050 New England winter peak electric demand is expected to more than triple by 2050 New England electric demand
Slide 9: Eversource is an Industry Leader in Environmental, Social, and Governance
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Eversource is an Industry Leader in Environmental, Social, and Governance ENVIRONMENTAL SOCIAL GOVERNANCE HIGHLIGHTS HIGHLIGHTS HIGHLIGHTS Reducing GHG Emissions Actions That Care for People Expanded Board Governance, From Our Operations and In and Eng
Slide 10: John Moreira
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 John Moreira Executive Vice President, Chief Financial Officer & Treasurer
Slide 11: 2023 vs. 2022 Financial Results
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 vs. 2022 Financial Results Full Year Full Year Full Year 4Q 2023 4Q 2022 4Q Change 2023 2022 Change Electric Transmission $0.47 $0.40 $0.07 $1.84 $1.72 $0.12 Electric Distribution 0.30 0.28 0.02 1.74 1.71 0.03 Natural Gas Distribution 0.22 0.25 (0
Slide 12: 2023 Offshore Wind Impairments Drivers
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 Offshore Wind Impairments Drivers OFFSHORE WIND IMPAIRMENT COMPONENTS 2023 Pre-Tax Impairment: ~$2.17 Billion $2,500 Q2: $400 Million Lower sale proceeds from the three offshore $215 $2,000 wind projects $545 Q4: $1.77 Billion ~$1.22 Billion r
Slide 13: Offshore Wind Fair Value by Project
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Fair Value by Project (Millions of Dollars) Sunrise Wind Revolution Wind South Fork Wind Total Project Project Project Carrying Value as of December 31, 2023, $700 $800 $300 ~$1,800 before Impairment Charge Fourth Quarter 2023 Impairment
Slide 14: Regulatory Update
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Regulatory Update Massachusetts Received approval for recovery of 100% of storm costs ($136m) Received approval of PBR/K-Bar filing ($105m) without modification Filed for approval of 5-Year Electric Sector Modernization Plan New Hampshire Recei
Slide 15: Projected Capital Expenditures for Core Businesses
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Projected Capital Expenditures for Core Businesses $23.1 Billion 2024-2028 $5,000 $4,647 $4,687 $4,697 $4,593 $4,601 $4,485 $225 $223 $202 $4,500 $213 $234 $162 $169 $218 $234 $239 $204 $251 $4,000 $3,786 $3,541 $266 $1,044 $1,142 $1,089 $998 $1,087 $3
Slide 16: $1.6 Billion Increase in 2024-2027 Core Business Investments
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $1.6 Billion Increase in 2024-2027 Core Business Investments Since February 2023 Plan Increased Investment Needs to Better Serve Our Customers NOT INCLUDED Up $919 $9,000 million $8,000 $7,935 ESMP incremental spend in MA $7,016 $7,000 AMI, Energy
Slide 17: Rate Base Growth Driven by Core Businesses
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Rate Base Growth Driven by Core Businesses – Current and Future $39.6 billion* 5% 22% $25.4 billion* 4% * Rate base estimates exclude certain CWIP balances which totaled approximately $1.3 18% 41% billion at the end of 2022 and are expected to increase
Slide 18: Key 2024 Earnings Drivers
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Key 2024 Earnings Drivers Transmission capital investments Base rate changes in MA and NH 2024 EPS Lower operations and maintenance expenses Lower effective tax rate Guidance: $4.50 - $4.67 Higher depreciation and property taxes from increase
Slide 19: Offshore Wind Sales Proceeds
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Sales Proceeds Expect to monetize majority of cash flow in 2024 South Fork and Revolution Sale Cash Inflows Proceeds Realization of ~$1.1 billion for 50% Description Timing Amount interest in South Fork and Revolution Wind Projects in 2
Slide 20: Funds From Operations to Debt 2023-2025 Drivers
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Funds From Operations to Debt 2023-2025 Drivers OSW proceeds /Tax Equity Investment 2024-2025 FFO/Debt 14%-15% Planned rate increases at S&P 2023 FFO/Debt Collection of deferrals Storm cost recovery Equity issuances Water Sale 19
Slide 21: Long-Term EPS and Dividend Growth of 5-7% Through 2028
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Well Performing Core Businesses Drive Long-Term EPS and Dividend Growth of 5 – 7% Through 2028 $4.50 $4.34 -$4.67 $4.09 $3.86 $3.64 $3.45 $3.11 $3.25 $2.81 $2.96 $2.65 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022A* 2023A* 2024E 2025E 2026E
Slide 22: Serving Our Customers' Needs Today, Tomorrow, and for Years to Come
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Serving Our Customers’ Needs Today, Tomorrow, and for Years to Come Delivering Clean, Reliable Energy and Water Enabling the Clean Energy Future Delivering for Customers Today… …Preparing for Customers Needs Tomorrow Electric Reliability Gas Pipeline S
Slide 23: Appendix
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT APPENDIX 22
Slide 24: Status of State and Federal Regulatory Reviews
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Status of State and Federal Regulatory Reviews Electric Transmission (Federal Energy Regulatory Commission) 43% of 2023 regulated earnings Annual formula rate filing for electric transmission rates submitted to FERC on July 31st Pending FERC decisi
Slide 25: Projected Transmission Capital Expenditures
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Projected Transmission Capital Expenditures Other concepts $1,600 under $1,447 development $1,400 $1,200 $1,207 $1,166 $410 $1,146 $1,200 $1,053 $49 $49 $357 $ in Millions $1,000 $349 $158 $800 $567 $838 $450 $903 $600 $526 $640 $400 $200 $470 $393 $33
Slide 26: Transmission Rate Base Growth Projections
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Transmission Rate Base Growth Projections Other concepts under development $14,000 $12,742 $12,305 $11,829 $12,000 $11,227 $2,433 $10,634 $2,485 $2,448 $10,000 $9,786 $2,271 $2,022 $1,747 $8,000 $ in Millions $5,321 $5,799 $4,515 $4,886 $4,241 $6,000 $
Slide 27: MA Clean Energy Projects
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT MA Clean Energy Projects Networked Geothermal Pilot Installation work progressing Target on-line in Q2 2024 Massachusetts Solar Project Expanded solar ownership opportunities First three projects under DPU review Distributed Energy Resources
Slide 28: 2023 Parent Debt and Equity Issuances and Maturities
EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 Parent Debt and Equity Issuances and Maturities 2023 & January 2024 Debt Issuances Company Size/Coupon Maturity 2023 Equity Issuances Parent $750M @ 5.45% Mar 1, 2028 Parent $550M @ 5.45% Mar 1, 2028 New Shares Parent $450M @ 4.75% May 15, 2026