Connecticut Light & Power Co. (the) · OTC:CNLPL
Connecticut Light & Power Co. (the) — Connecticut Light & Power Co (Cnlhn, Cnlho, Cnlhp, Cnlpl, Cnlpm, Cnltl, Cnltn, Cnltp, Cnpwm, Cnpwp, Cnthn, Cntho, Cnthp) — EEI Financial Conference 2010
55 slides from Connecticut Light & Power Co. (the)'s conference presentation, Nov 1, 2010
Slide 1: Slide 1
Slide 2: Forward-Looking Statements
1g Forward-Looking ents In addition to historical information, this presentation may contain a number of “forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Wards such as anticipate, expect, project, intend, plan, believe, and words and terms of similar s
Slide 3: Additional Information About the Merger
in connection with the proposed merger between Northeast Utilities and NSTAR, Northeast Utilities will ile with the SEC a Registration Statement an Form S-4 that will include a jaint proxy statement of Northeast Utilities and NSTAR that also constitutes a prospectus of Northeast Utilities. Northeast
Slide 4: Agenda
Agenda > The NU —NSTAR merger » NU’s capital investment plan ® NU’s 2010 financial performance » NSTAR overview and 2010 financial performance @ rire 4 @nstar
Slide 5: Northeast Utilities and NSTAR Service Areas
Northeast Utiities Electric Service Areal NSTAR Electric Service Area ste} MH Northeast Uiiities Gas Service Area NSTAR Gas Service Area Northeast Ze ilies 5 @NsTaR
Slide 6: Key Merger Terms
Key Merger Terms Balanced Terms and Governance Timing / Approvals: > Expected to close within 9 — 12 months >» Shareholders, federal, and state Headquarters: » Dual — Hartford and Boston Company Name: > Northeast Utilities Consideration: > 100% NU shares Exchange Ratio: > 1.312 shares of NU per NSTA
Slide 7: Specific Benefits to the NU Shareholders
Specific Benefits to the NU Shareholders » A projected ~ 20% dividend increase » Cash flow increase to eliminate equity issuance for foreseeable future » Likely credit upgrades and reduction in debt issuance leading to lower long-term, short-term interest costs » Increased market liquidity » Enhance
Slide 8: This Transaction is Accretive
This Transaction is Accretive Illustrative Impact on Growth Rate Long-Term EPS CAGR Components Affecting Expected Accretion NU Stand Additional NSTAR Avoidance Lower LessNU Implementing Merged Alone Shares Earnings of Equity Financing Parent Best Company Growth Growth Issuance Costs Debt Practices G
Slide 9: Together, NU and NSTAR
Together, NU and NSTAR: ¥ Serve 50% of the region's load, including important load centers in southern New England ¥ Will effectively advocate projects that advance public policy goals to address climate change and the region’s Renewable Portfolio Standards (RPS) + New England RPS are 21% by 2020, a
Slide 10: Northern Pass Transmission Project
Frarkting@ “so @ Deerfield Northeast Uites HVDC Line HvDc Converter Station 346-4 Line Existing Deerfield Substation 10 To be owned by Northern Pass Transmission LLC - NU (75%) and NSTAR (25%) 1,200 MW transfer capability Northern terminus at Des Cantons (Québec), southern terminus in Franklin (New
Slide 11: Benefits to the NSTAR Shareholders
Benefits to the NSTAR Shareholders » Enhanced earnings and dividend growth outlook » Ability to apply strong balance sheet and cash flow to attractive transmission investment opportunities >» Larger utility footprint provides access to projects and opportunities not available today » More diverse an
Slide 12: Proven Record of Delivering Superior Value
Proven Record of Delivering Superior Value “ 210 206.3 190 170 160 130 Ie 85.2 Total Retum (%; 23.0 30 joa 251 10 32 (78) a0 —(18.2) 3 years 5 years 10 years a 9 mSgP 500 mUTY mNortheast Utilities mNSTAR Source: Faciset 4, Total returns as of 10/45/10. Assumes reinvestment of divicends 2. Total retu
Slide 13: Building a Larger, More Diverse and Better Positioned Regulated Utility Business
Building A Larger, More Diverse and Better Positioned Regulated Utility Business Rate Base By State / Federal Rate Base By Business MA Electric 32% Distribution 54% Electric ey Generation Electric 4% Gas TeigrHe f Distribution 11% Combined 2009 Rate Base: $10.8 billion Northeast yi Ualice a) @NsTaR
Slide 14: Northeast Utilities
Northeast Ze ilies 14 @NsTaR
Slide 15: NSTAR
@QNSTAR
Slide 16: Value Uplift Potential
Value Uplift Potential “Best-In-Class” P/E Potential + Significant future rate ee base growth prospects ian * Strong dividend growth @ prospects 2 + Diversification - * Top tier management i + No foreseeable a equity issuance Northeast Utilities NSTAR Pro Forma T. Based on VEE consensus EPS ciliates
Slide 17: Slide 17
Slide 18: Forward-looking statements notice
This presentation contains statements concerning NU's expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or grawth and other statements that are hot historical facts. These statements are "forward-looking statements" within the mea
Slide 19: 2011-2015 Plan Continues to Provide Significant Value
011-2015 Plan Continues to Provide Significant Value for Customers and Shareholders Through Strong Execution and Deployment of Capital to Meet the Region’s Energy Needs & + NU’s plan deploys a total of $6.6 billion in electric transmission, distribution, generation and natural gas additions that wil
Slide 20: NEEWS Projects Advance
NEEWS Projects Advance Current Status Report Greater Springfield Reliability Project + Received siting approval in CT and MA + Development and Management Plans approved by CT Siting Council + Commence substation construction in MA: Dec. 2010 + Commence overhead construction in MA: Spring 2011 + Comm
Slide 21: Greater Springfield Reliability Project
Greater Springfield Reliability Project {196 [300] tga] to | Interstate Reliability Project 32 ee ee: ee ea 301, | Central Connecticut Reliability Project 12 ee ee ee ee 338 [NEEWS Related Projects Now Under Way |__9 za [ae tg is 84 [[_ tear Ncw Projects 2070 EEF Total NEEWS Projects - 2009 EEF Tota
Slide 22: Northern Pass Transmission - a $1.1 Billion Capital Investment
Northern Pass Transmission - a $1.1 Billion Capital Investment (2009 - 2015) Project Milestones (as of 11/1/10) Milestone Milestone Date Initial FERC filing declaratory order Dec2008 of FERC filing declaratory order May2009 of Transmission Service Agreement (‘TSA’) signed Oct 2010 4 |SO Technical Ap
Slide 23: Transmission Capital Expenditures
$800 $700 $600 $500 $400 In Millions $300 $200 $100 sl Northeast Uites Historic Projected Forecast $2.8 Billion $251 Million $2.8 Billion Successful completion of SWCT projects PP PP PSS PHP Mo pr ors” Ease Reliability Major SouthwestCT MNEEWS m Northern Pass 23 Northern Pass HVDC Line to Canada NEE
Slide 24: 2011-2015 Projected Distribution and Generation Spending
2011-2015 Projected Distribution and Generation Spending $3.1 Billion ($271M total) ($283M total) tution ($625M total) = CL&P -AMUSmart Grid (§217M total)" § CL&P - Distribution ($1,531M total) 2010 Proj 2011 2012 2013 2014 2015 *Total AMLrelated capex through 2016 expected to be approximately $300
Slide 25: Yankee Gas Capital Expenditures
Yankee Gas Capital Expenditures 2011-2015 Projected Yankee Gas Capital Spending $585 Million $150 A $140 $130 $126 $128 $120 $110 + Yankee Gas Strategy $100 $20 “+ Investing $585 million, leveraging natural 2 $80 gas as "the fuel af choice” 2 $7 “+ Distribution system expansion: $35 = geo million fo
Slide 26: Slide 26
Slide 27: 2010 Represents a Strong Year Financially
2010 Represents a Strong Year Financially For NU ¢ Strong third quarter results ¢ 2010 financial performance expected to well exceed initial projections * Cash generation continues to strengthen 2010 estimate raised to $800 million - $850 million due to extension of bonus depreciation tax deduction
Slide 28: Third Quarter 2010 Results
& Third Quarter 2010 Results z 5 8 Northeast Uaities $110 $90 $70 $80 $30 $10 $10) 55.1% 147.5% 56% = 2009 = 2010 $03 $01 (0a) 605) Distribution and Transmission ParenvOther Competitive Total Generation 28
Slide 29: Third Quarter 2010 Distribution and Generation Results
Third Quarter 2010 Distribution and Generation Results $40 176.3% $315 $30 118.7% $23.4 $20 = 2008 E83 = 2010 $10 $3.7 : = easy 879) Earnings For Common In Millions ($10) CL&aP PSNH WMECO. Yankee Gas Northeast @ Uaities 29
Slide 30: EPS Guidance Raised
010 EPS Guidance Raised Ini August 2009 Actual New 2010 Guidance 2010 Guidance 2010 Gui Net income attributable to controlling interest $1.91 $1.80 - $2.00 $1.95 - $2.05 $2.10- $2.20 (GAAP) Distribution/Generation $0.92 $0.95 - $1.05 $1.00- $1.10 $1.40- $1.20 Transmission $0.95 $0.90 - $0.95 $0.95 $
Slide 31: Projected Capital Expenditures
$1,495 1,349 $1,309 ($1,340 $1,213 | $1,091 $1,057 $1,075 ~ 2010 2011 2012 2013 2014 2015 Projected istribution and Generation Capex (11/09 Forecast) MJ Distribution and Generation Capex (11/10 Forecast) Transmission Capex (11/09 Forecast) Il Transmission Capex (11/10 Forecast) “Includes total capex
Slide 32: Projected Year-End Rate Base
Projected Year-End Rate Base — $14,000 $12,000 $10,000 Bue me = $8,000 ¥6 598 © $6,000 je = 54.196 a 83.571 $4,000 |4 iin e200 52.745 52971 53.325 ig: $0 2009 2010E 2011) 2012E)2013E == 2014E = 2018 Actual = Transmission = Distribution m Generation = Yankee Gas Northeast yf) Uiltice 32 Projected Tot
Slide 33: Slide 33
Slide 34: NSTAR Cautionary Statements
NSTA DIA n Cor Ss his presentation contains forward-looking statements within the meaning of the Securities Act of 1939 and the Securities Exchange Act of 1934. These statements are based on the current expectations, estimates or projections of management, and are not guarantees of future performanc
Slide 35: NSTAR - A Track Record of Strong Performance
NSTAR — A Track Record of Strong Performance ¢ High levels of customer service and reliability ¢ Constructive regulatory outcomes ¢ Solid, consistent financial results ¢ Strong credit profile and positive cash flow 35 @QNSTAR
Slide 36: A Long History of Negotiated, Multi-Year Distribution Rate Agreements
A Long History of Negotiated, Multi-Year Distribution Rate Agreements * 25 years of rate agreements -— last litigated rate increase in 1986 « Fully reconciling pension & post-retirement mechanism and recovery of energy supply ¢ Current electric rate plan through December 31, 2012 10.5% ROE with +/ 2
Slide 37: Operations & Maintenance Expense
$ IN MILLIONS $453 $454 $447 $431 | / : 2006 2007 2008 2005 2009 Operations & Maintenance Expense 37 @QNSTAR
Slide 38: Earnings Per Share
$1.93 $2.07 2007 $2.22 2008 38 $2.37 2009 2010 Guidance $2.45 - $2.60
Slide 39: Dividends Per Share
$1.60 $1.50 $1.40 $1.30 $1.21 : 2006 2007 2008 2009 2010
Slide 40: Total Shareholder Return Outperforms the Industry
Total Shareholder Return performs the Industry $5,500 NSTAR $4,750 $4,000 $3,250 Utility Index $2,500 S&P 500 $1,750 $1,000 1996 2009 40 @QNSTAR
Slide 41: Highest Credit Rating in the Industry
Highest Credit Rating in the Industry *As published by EI
Slide 42: NSTAR System Has Significant Transmission Investment Ahead
NSTAR System Has Significant Transmission Investment Ahead Transmission Rate Base is expected to double within 5 years to approximately $1.6 billion ¢ Growth/reliability spending averages $100 million per year « Incremental Major Projects Cape Cod Line $120 million (2011-2012) South Boston Circuit $
Slide 43: Solid Financial Results
Solid Financial Results Q3 2010 Reported EPS - Q3 2009 $ 082 Higher electric sales (+7.8%) $0.10 PBR distribution revenues 0.02 Lower interest costs 0.03 Lower share count 0.03 0.18 Increase in O&M (0.03) Increase in property taxes (0.02) Non-utility operations (0.02) (0.07) 0.11 EPS from normal ope
Slide 44: Merger Summary
Merger Summary Creates New England’s premier energy provider which will have one of the most attractive total return profiles in the industry.
Slide 45: Slide 45
Slide 46: Total Capex and Depreciation
$1,600 $1,495 $1400 $1,283 $1,309 $1,200 $1,000 $800 $600 $332 $369 $382 $413 $00 Bilssi0 $307 ‘$305 ~ | i | i Ii li l | so 2009 2010 2011 2012 2013 2014 2015 Actual @ Total Capex {incl. cost of removal and AFUDC} = Depreciation “Totals include capex at corporate service companies on behalf of opera
Slide 47: Projected Transmission Capital Expenditures by Company
$800 $697 $700 $613 $587 $600 $501 $500 $445 ; = In Millions $400 E $300 $200 $100 $0 + 2010 Projected 2011 2012 2013 2014 2015 mCL&P PSNH = WMECO = Northern Pass: Northeast 7 Uites
Slide 48: NU Projected Generation Capital Expenditures
& NU Projected Generation Capital Expenditures $250 $200 $150 In Millions $100 $50 $0 Northeast Uaities $58 2010 Projected = PSNH Other 2011 2012 2013 = PSNH Clean Air Project 48 2014 2015 = WWECO Solar Project
Slide 49: NU Projected Distribution and Generation Year-End Rate Base
NU Projected Distribution and Generation Year-End Rate Base Generation $6,000 = cAGR of 8.3% $5,074 |e $5,000 $4589, D $4,401 ($428 ee $4,000 (94047) ee $691 $3,000 = In Millions $2,000 “ : ie $1,000 — P = $0 2009 2010 2011 2012 2013 2014 2015 Actual = CL&P Distribution = PSNH Distribution = WMEOO L
Slide 50: Transmission Rate Base
$5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 In Millions Northeast Uites $4,792 $3,810 a 2009 2010 2011 2012 2013 2014 2015 Actual = CL&P PSNH = WMECO" = Northem Pass” *100% CWIP assumed for NEEWS projects *NU share of this project is depicted as traditional rate base witho
Slide 51: NU Transmission Capital Program and Rate Base Grow Steadily
NU Transmission Capital Program and Rate Base Grow Steadily Fall 2008 EE! Conference Fall 2009 EE! Conference Fall 2010 EE Conference 2009 2010 2011 2012 2013 2014 2015 2009-2013 Capital Program -- $3.5 Billion 2010-2014 Capital Program -- $2.9 Billion 2011-2015 Capital Program -- $2.8 Billion Actua
Slide 52: NEEWS Projects Milestones
NEEWS Projects Milestones (as of 11/1/10 Central Interstate Connecticut™ v 2012 vo 2042 J 2042 Mictate 2014 | 12mo. Behind interstate Greater Springfield File Municipal Consultation Filing (MCF) Conduct MCF outreach Hold open houses File siting application ‘Complete Evidentiary hearings bate 22: A2m
Slide 53: 2011-2015 NU Transmission Capital Program
2011-2015 NU Transmission Capital Program Other Projects — In Millions CLEP WMECO PSNH Obsolete Equipment Repl. Pram. $749 Berkshire Area Solution $70.0 Scobie - Tewksbury Line $38.9 Manchester - East Hartford Line $83.1 West Springfield S/S Rebuild $48.2 Deerfield 2nd Auto Transformer. $37.3 Obsole
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Slide 55: Waterbury to Wallingford Project to Add Needed Pipeline Capacity
Waterbury to Wallingford Project to Add Needed Pipeline Capacity to Growing Area Connecticut depends heavily on heating oil En. + Natural gas has significant cost advantages at today’s prices + Natural gas offers significantly lower emissions + Vehicle transportation market may emerge + Yankee Gas’