Slide 1: Eversource Energy Year End 2021 Results
EVERSOURCE ENERGY YEAR END 2021 RESULTS February 17, 2022 2021 Year - End Investor Call
Slide 2: Safe Harbor Statement
EVERSOURCE ENERGY YEAR END 2021 RESULTS Safe Harbor Statement 1 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 di
Slide 3: Agenda
EVERSOURCE ENERGY YEAR END 2021 RESULTS Agenda 2 Joe Nolan President & CEO Phil Lembo Executive Vice President and CFO ▪ 2021 – Year in Review ▪ Offshore Wind Update ▪ Clean Energy Initiatives ▪ 2021 Financial Results ▪ 2022 Guidance ▪ 2022 – 2026 Outlook ▪ Regulatory Update
Slide 4: President & Chief Executive Officer Joe Nolan
EVERSOURCE ENERGY YEAR END 2021 RESULTS President & Chief Executive Officer Joe Nolan 3
Slide 5: 2021 Year in Review
EVERSOURCE ENERGY YEAR END 2021 RESULTS 4 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 customer service Regulatory
Slide 6: Operating Performance Remains Strong
EVERSOURCE ENERGY YEAR END 2021 RESULTS Operating Performance Remains Strong SAFETY Injury rate per 100 employees (DART) Average months between interruptions (MBI) System average interruption duration (SAIDI) On - time emergency response GAS RESPONSE ELECTRIC RELIABILITY 2021 Top Quartile Among Our
Slide 7: 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 6 Note: 3 - year, 5 - year and 10 - year results are for the periods ended December 31, 2021. Total Shareholder Return 2021 3 - Year 5 - Year 10 - Year Eversour
Slide 8: Dividend Growth Continues to Outperform Peers
EVERSOURCE ENERGY YEAR END 2021 RESULTS $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2018 2019 2020 2021 2022 $2.14 Dividend Growth Continues to Outperform Peers 7 Annualized Dividend 5% - 7% Payout Ratios: 62% 62%* 62%* 62%* +$0.12 +$0.12 +$0.13 +$0.14 $2.41 $2.02 $2.27 *Reflects non - GAAP results, e
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 8 ▪ 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 constructio
Slide 10: Revolution Wind and Sunrise Wind Now Well Into Siting Process
EVERSOURCE ENERGY YEAR END 2021 RESULTS 9 Revolution Wind and Sunrise Wind Now Well Into Siting Process South Fork Wind Revolution Wind Sunrise Wind Size 130 MW 704 MW 924 MW Construction Operation Plan Filing with BOEM Final siting approvals received January 2022 Filed March 2020; review schedule w
Slide 11: Onshoring of Domestic Supply Chain Accelerating
EVERSOURCE ENERGY YEAR END 2021 RESULTS Onshoring of Domestic Supply Chain Accelerating 10 Provider Equipment / Service Procured U.S. Manufacturing/Assembly Location Project American Offshore Services and WindServe Maine Crew transfer vessels Rhode Island All projects Dominion Energy Wind turbine in
Slide 12: Progress on Connecticut State Pier, New London
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource & Ørsted Ɣ New London Progress on Connecticut State Pier, New London 60 - 65 miles to nearest turbines 11 Work is underway to transform Connecticut State Pier (New London) into a heavy lift, deep water port
Slide 13: Industry Leading Carbon Neutrality Goal
EVERSOURCE ENERGY YEAR END 2021 RESULTS Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets Eversource Targets Carbon Neutral By 2030 ▪ Reducing electric line loss ▪ Lowering methane emissions from gas distribution system ▪ Fleet replacement ▪ Facility lighting and HVAC upgrade
Slide 14: Gas Operations Launches Pilot Geothermal Project
EVERSOURCE ENERGY YEAR END 2021 RESULTS Gas Operations Launches Pilot Geothermal Project 13 ▪ 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
Slide 15: Executive Vice President & Chief Financial Officer Phil Lembo
EVERSOURCE ENERGY YEAR END 2021 RESULTS Executive Vice President & Chief Financial Officer Phil Lembo 14
Slide 16: 2021 vs. 2020 Financial Results
EVERSOURCE ENERGY YEAR END 2021 RESULTS 15 4Q 2021 4Q 2020 Change Full - Year 2021 Full - Year 2020 Change $0.38 $0.35 $0.03 $1.58 $1.48 $0.10 0.30 0.27 0.03 1.61 1.60 0.01 0.22 0.18 0.04 0.59 0.40 0.19 0.02 0.02 0.00 0.11 0.12 (0.01) (0.01) 0.03 (0.04) (0.03) 0.04 (0.07) $0.91 $0.85 $0.06 $3.86 $3.
Slide 17: 2022 EPS Guidance: $4.00 - $4.17
EVERSOURCE ENERGY YEAR END 2021 RESULTS 16 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
Slide 18: Core Businesses Drive EPS CAGR to Upper Half of 5-7%
EVERSOURCE ENERGY YEAR END 2021 RESULTS 17 Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2026 $2.28 $2.53 $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.86 $4.00 - $4.17 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022E* 2023E 2024E 2025E 2026E *
Slide 19: Projected Capital Expenditures For Core Businesses
EVERSOURCE ENERGY YEAR END 2021 RESULTS Projected Capital Expenditures For Core Businesses $1,030 $964 $1,115 $1,118 $979 $861 $834 $808 $1,221 $1,189 $1,244 $1,450 $1,469 $1,391 $1,372 $1,338 $453 $545 $799 $921 $849 $926 $895 $938 $110 $127 $144 $154 $163 $176 $190 $206 $239 $239 $239 $254 $224 $2
Slide 20: Rate Base by Core Line of Business
EVERSOURCE ENERGY YEAR END 2021 RESULTS 36% 33% 44% 41% 16% 22% 4% 4% Transmission Electric Distribution Natural Gas Distribution Water 2020 Year - End Rate Base Projected 2026 Year - End Rate Base $22.4 billion* $33.8 billion* Rate Base by Core Line of Business – Current and Future Note: Excludes o
Slide 21: Key Elements Inside and Outside Capital Investment Forecast
EVERSOURCE ENERGY YEAR END 2021 RESULTS Key Elements Inside and Outside Our New $18.1B Core Business Capital Investment Forecast Included in Forecast ▪ Execution of updated capital investment forecast ▪ Increased investment in Boston area substations ▪ Continuation of Grid Modernization and electric
Slide 22: Status of State and Federal Regulatory Reviews
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 1 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
Slide 23: Key Elements of NSTAR Electric Rate Review
EVERSOURCE ENERGY YEAR END 2021 RESULTS ▪ Address the Distribution Revenue Deficiency ($89M) – Relates to capital additions, enterprise IT and Storm Fund contribution ▪ Extension of Performance - Based Ratemaking (PBR) – 10 - year plan, with enabling rate base roll - in(s) ▪ AMI Tariff Approval – Ap
Slide 24: A Value Proposition That Delivers Results for Investors
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 3 A Value Proposition That Delivers Results for Investors Keys to Our Success: Results Delivered: 2. Control O&M spending Nine - year average O&M reduction 0.5%/year through 2021 (~$80M) 1. Exceed industry EPS and dividend growth Nine - year average recurrin
Slide 25: Appendix
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 4 APPENDIX
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 $3,240 $5,180 $3,625 $630 $830 $3,792 $5,682 $3,591 $683 $889 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Electric Transmission Electric Distribution Natural Gas Distribution Wa
Slide 27: Projected Transmission Capital Expenditures
EVERSOURCE ENERGY YEAR END 2021 RESULTS $400 $381 $240 $218 $207 $201 $480 $459 $462 $382 $459 $446 $235 $278 $277 $261 $168 $161 $1,115 $1,118 $979 $861 $834 $808 $0 $200 $400 $600 $800 $1,000 $1,200 2021A 2022E 2023E 2024E 2025E 2026E CL&P NSTAR Electric PSNH 2 6 $ in Millions Projected Transmissi
Slide 28: Transmission Rate Base Growth Projections
EVERSOURCE ENERGY YEAR END 2021 RESULTS $3,816 $4,048 $4,065 $4,033 $4,063 $4,044 $3,481 $3,807 $4,184 $4,400 $4,655 $4,883 $1,422 $1,549 $1,698 $1,869 $1,945 $2,010 $8,719 $9,404 $9,947 $10,302 $10,663 $10,937 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2021A 2022E 2023E 2024E 2025E 2026E CL&P N
Slide 29: Projected Natural Gas Investment 2021-2026
EVERSOURCE ENERGY YEAR END 2021 RESULTS $799 $921 $849 $926 $895 $938 $0 $200 $400 $600 $800 $1,000 $1,200 2021A 2022E 2023E 2024E 2025E 2026E 2 8 $ in Millions Projected Natural Gas Investment 2021 - 2026
Slide 30: Aquarion Rate Base Forecast
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 9 $887 $942 $1,037 $1,167 $1,268 $1,376 $1,470 $1,560 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E Year - End Rate Base $ in Millions Aquarion Rate Base Forecast
Slide 31: FERC Transmission New England ROE Update
EVERSOURCE ENERGY YEAR END 2021 RESULTS 30 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 Compla
Slide 32: Status Report – Grid Modernization and Advanced Metering Infrastructure
EVERSOURCE ENERGY YEAR END 2021 RESULTS Status Report – Grid Modernization and Advanced Metering Infrastructure 31 Massachusetts Grid Modernization Plan (In Cap - Ex Forecast) ▪ Five - Year Plan - capital investment of nearly $400 million for 2022 - 2026 ▪ Includes investments in EV infrastructure,
Slide 33: Status Report – CT Performance-Based Ratemaking
EVERSOURCE ENERGY YEAR END 2021 RESULTS ▪ 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 assess current regulatory framework – Identify re
Slide 34: First US Energy Company To Target Carbon Neutrality By 2030
EVERSOURCE ENERGY YEAR END 2021 RESULTS 33 ▪ In 2019, we announced our industry leading goal to reduce emissions from 5 key operational areas: – Line loss – Leaks from natural gas distribution – Vehicle fleet – Facilities – Use of SF6, potent greenhouse gas, in electrical equipment Eversource First
Slide 35: Eversource's Progress Toward Carbon Neutrality
EVERSOURCE ENERGY YEAR END 2021 RESULTS 34 Eversource’s Progress Toward Carbon Neutrality - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2018 2019 2020 MT CO2e Line Loss Methane Facilities Fleet SF6 828,107 707,015 685,331 - 17% ▪ Eversource emissions have greatly declined
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 35 46.4% 36.6% 32.7% 11.4% 14.8% 33.0% 6.1% 19.0% 0% 20% 40% 60% 80% 100% New England U.S. 2018 Energy Carbon Emissions by Source New Engl
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 36 Source: American Council for an Energy - Efficient Economy 2020 Scorecard 16 3 18 2 7 4 Note: The lower the number…the more effective the Energy Efficiency Programs Eversource MA, #1 Mos
Slide 38: Eversource Recognized as a Leading Energy Company
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource Recognized as a Leading Energy Company 37 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 environment