Eversource Energy (d/b/a) · NYSE:ES

Eversource Energy (d/b/a) — Eversource Energy — Investor Presentation (April 2021)

30 slides from Eversource Energy (d/b/a)'s investor presentation, April 2021

  1. Slide 1: April 2021 Investor Meetings

    April 2021 Investor Meetings

  2. Slide 2: Safe Harbor Statement

    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 assets and liabil

  3. Slide 3: Eversource is the Largest New England Utility and 1 of the 10 Largest in the US

    Eversource is the Largest New England Utility and 1 of the 10 Largest in the United States Eversource Electric Customers 3.24 million Natural Gas Customers 881,000 Water Customers 216,000 Employees 9,300 Assets $46 billion 2

  4. Slide 4: Total Shareholder Return Has Outperformed the Industry in Short and Long Term

    Eversource’s Total Shareholder Return Has Outperformed the Industry Significantly in Both the Short and Long Term Total Shareholder 2020 3-Year 5-Year 10-Year Return Eversource 4.5% 49.4% 96.8% 272.6% EEI 39-Company -1.2% 28.9% 69.1% 190.0% Index S&P 500 18.4% 48.9% 103.0% 267.0% Ranking in EEI Inde

  5. Slide 5: Operating Performance Remains Strong

    Operating Performance Remains Strong 2020 Injury rate per SAFETY 100 employees 0.7 (DART) Average months between interruptions (MBI) 19.2 ELECTRIC Top Decile Among Our RELIABILITY Peers System average interruption duration 64.0 (SAIDI) GAS On-time RESPONSE emergency 99.6% response 4

  6. Slide 6: Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors

    Eversource’s Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors • Last of the ES fossil generating assets Number of ESG & Infrastructure Funds divested in January 2018 in New Holding ES Shares Hampshire 260 240 • Strong focus on growing solar, offshore 220 78 wind portf

  7. Slide 7: Eversource's Progress Toward Net Zero Emissions

    Eversource’s Progress Toward Net Zero Emissions 25,000,000 20,000,000 15,000,000 From 1990, we saw a 97% reduction in GHG MT CO2e emissions 10,000,000 5,000,000 - 1990 2014 2015 2016 2017 2018 2019 6

  8. Slide 8: Only US Energy Company Targeting Carbon Neutrality By 2030

    Eversource Only US Energy Company Targeting Carbon Neutrality By 2030  In 2019, we announced our industry leading goal to reduce emissions 2019 GHG Footprint from 5 key operational areas: – Line loss – Leaks from natural gas distribution (including EGMA) – Vehicle fleet – Facilities – Use of SF6, p

  9. Slide 9: Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets

    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  Industry-leading energy from gas distribution syst

  10. Slide 10: Addressing Largest Sources of New England Carbon Emissions

    Eversource Addressing Largest Sources of New England Carbon Emissions: Transportation, Space Heating and Power Generation 2017 Energy Carbon Emissions by Source New England vs. U.S. 100% 5.6% 19.2% Industrial 15.6% 80% 30.7% 33.5% Power generation 60% 40% 10.4% Space heating 48.1% 20% 36.9% Transpor

  11. Slide 11: Emissions From ISO-New England Generators Since 2001

    Emissions From ISO-New England Generators Since 2001 Eversource serves approximately 45% of New England load, but owns no emitting generation; currently, about 60% of Eversource customers’ electricity consumption is directly contracted by customers through third parties NOx and SOX Emissions CO2 Emi

  12. Slide 12: Expected Timeline For Eversource-Ørsted Projects

    Expected Timeline For Eversource-Ørsted Projects Size: Size: Size: • 130 MW • 704 MW • 880 MW Year 1 Price: Year 1 Price: Year 1 Price: • ~ $160.33/MWH for 90 MW • $98.43/MWH for RI (no escalator) • $110.37/MWH • ~ $86.25/MWH for 40 MW • CT pricing not disclosed • (no escalator) • (avg. annual escal

  13. Slide 13: Key Elements of Year-End Federal Legislation Regarding Offshore Wind

    Key Elements of Year-End Federal Legislation Regarding Offshore Wind  In December 2020, Congress passed significant offshore wind legislation  Offshore wind projects can now qualify for a 30% ITC value if construction starts on or before 12/31/25  IRS issued a notice that provides a 10-year Safe

  14. Slide 14: Remaining Lease Capacity Is Well-Positioned To Maintain Disciplined Growth

    Remaining Lease Capacity Is Well-Positioned To Maintain Our Disciplined Growth Strategy Eversource & Ørsted Leases State Offshore Wind Procurement Authority RI 0.6 GW Remaining Awarded CT Authorized 1.2 GW Remaining MA 4.0 GW Remaining NY 4.7 GW Remaining 0 2 4 6 8 10 GW 13

  15. Slide 15: Most Effective Method of Reducing Emissions: Improve Energy Efficiency

    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 Count Up 3.2% Since 2015, While KWH Sales D

  16. Slide 16: Carbon Reduction Goals and Vehicle Standards Will Help Electrify Transportation

    Carbon Reduction Goals and Vehicle Emissions Standards Will Help Electrify Transportation Sector States’ Objectives • Ambitious goals set forth in the 2008 Global MA/CT CO2 Warming Solutions Act emissions by sector (2017) • MA: Net zero GHG emissions by 2050; CT: Reduce GHG emissions 80% below 1990

  17. Slide 17: 2021 EPS Guidance: $3.81-$3.93

    2021 EPS Guidance: $3.81-$3.93* Key 2021 Earnings Drivers • Distribution rate adjustments • Full year of Eversource Gas of MA earnings • Transmission capital investments • Distribution safety and reliability capital recovery tracking programs • Higher depreciation and property taxes • Higher average

  18. Slide 18: Core Businesses Drive EPS CAGR to Upper Half of 5-7% Through 2025

    Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2025 Expected higher than 5%-7% as larger offshore wind projects enter service $3.81- $3.93 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $2.28 $2.53 $2.65 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021E 2022E 202

  19. Slide 19: Dividend Growth Continues to Outperform Peers

    Dividend Growth Continues to Outperform Peers Annualized Dividend $3.00 $2.50 $2.41 $2.27 $2.14 5% - 7% $2.02 $2.00 $1.90 +$0.14 $1.50 +$0.13 +$0.12 $1.00 +$0.12 $0.50 +$0.12 $0.00 2017 2018 2019 2020 2021 Payout 61% 62% 62%* 62%* Ratios: *Excludes charges related to NPT in 2019 and acquisition of C

  20. Slide 20: Projected Capital Expenditures For Core Businesses

    Projected Capital Expenditures For Core Businesses $17 Billion 2021-2025 $4,000 $3,524 $3,541 $3,545 $3,500 $3,343 $217 $249 $211 $3,053 $3,064 $149 $143 $154 $194 $3,076 $3,000 $2,830 $162 $239 $239 $176 $185 $110 $127 $824 $171 $ In Millions $925 $974 $102 $937 $2,500 $453 $404 $545 $789 $2,000 $1

  21. Slide 21: Rate Base by Core Business – Current and Future

    Rate Base by Core Business – Current and Future $31.3 billion* 4% 22% Note: Excludes offshore wind $19.8 billion* investments 4% 12% 41% 47% 33% 37% 2019 Year-End Rate Base Projected 2025 Year-End Rate Base Transmission Electric Distribution Natural Gas Distribution Water * Rate base estimates shown

  22. Slide 22: Key Elements Inside and Outside Current Earnings CAGR Expectations

    Key Elements Inside and Outside Our Current Earnings CAGR Expectations Included in Forecast Not Included  Execution of updated capital  AMI investment forecast  Grid Modernization in CT or NH  Addition of Eversource Gas  Significant electric vehicle Company of MA assets charging infrastructure

  23. Slide 23: Integrating the Recently Acquired MA Natural Gas Assets of NiSource

    Eversource is Integrating the Recently Acquired MA Natural Gas Assets of NiSource Transaction Details  Transaction closed on October 9, 2020  All-cash $1.1 billion* transaction (1.1x rate base)  6 million shares sold in June 2020 to finance equity component  Immediately accretive and incremental

  24. Slide 24: Projected Natural Gas Investment 2020-2025

    Projected Natural Gas Investment 2020-2025 $1,000 $974 $925 $937 $900 $824 $800 $789 $700 $699 $662 $600 $650 $ in Millions $545 $553 $514 $500 $400 $300 $508 $200 $271 $275 $275 $275 $275 $100 $0 $37 2020 2021 2022 2023 2024 2025 EGMA All Other Natural Gas Investments 23

  25. Slide 25: Results of 2020 Rate Reviews

    Results of 2020 Rate Reviews Eversource Gas of MA PSNH NSTAR Gas • Effective Date: 10/9/20 • Effective Date: 1/1/21 • Effective Date: 11/1/20 • Term: 8-year rate plan • Term: 3-year rate plan • Term: 10-year rate plan • Authorized ROE: 9.7% • Authorized ROE: 9.3% • Authorized ROE: 9.9% • Equity Leve

  26. Slide 26: Previous Distribution Rate Decisions

    Previous Distribution Rate Decisions Yankee Gas Rate NSTAR Electric CL&P Rate Settlement Settlement Rate Decision  Effective Date: 5/1/18  Effective date: 11/15/18  Effective Date: 2/1/18  Term: 3 years  Term: 3+ years  Term: 5 years  Authorized ROE: 9.25%  Authorized ROE: 9.3%  Authorized

  27. Slide 27: Key PURA Regulatory Dockets

    Key PURA Regulatory Dockets Docket Description Current Schedule Number Review of Tropical Storm Isaias 20-08-03 Draft decision, 3/19/21; Final decision 4/28/21 Interim decision, 4/28/21; New rates subject to true-up, Annual review of multiple CL&P trackers (RAM) 21-01-03 5/1/21; Final decision, 8/25

  28. Slide 28: FERC Transmission New England ROE Update

    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 I) • This new methodology provided a pa

  29. Slide 29: Eversource Recognized as the Leading Energy Company

    Eversource Recognized as the Leading Energy Company #1 Energy and Utilities Company on Newsweek magazine’s Most Responsible Top level ESG and ESG risk rating Companies list Most Honored Company Institutional Investor's 2021 All-America Executive Team One of only four energy companies on Barron’s Mos

  30. Slide 30: A Value Proposition That Delivers Results for Investors

    A Value Proposition That Delivers Results for Investors Keys to Our Success: Results Delivered: Eight-year average recurring EPS and dividend growth of 6% and 7%, respectively, through 2020. 1. Exceed industry EPS and dividend Growth driven by robust regulated Cap Ex program growth and effective cos

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