Slide 1: 2020 Year-End Investor Call
2020 Year-End Investor Call February 17, 2021
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
Slide 3: Agenda
Agenda Jim Judge 2020 – Year In Review Chairman, President & CEO Clean Energy Leadership Offshore Wind Update Eversource Gas Company of MA 2020 Financial Results Phil Lembo Executive Vice President 2021 Outlook and CFO 2021 - 2025 Capex and Growth Rate Regulatory Update 2
Slide 4: Jim Judge
Jim Judge Chairman, President & Chief Executive Officer 3
Slide 5: 2020 Highlights
2020 Highlights Operations • Provided safe, reliable electric, natural gas and water service through pandemic and protected our 9,000 employees from workplace COVID transmission • Responded tirelessly to unprecedented storm activity • Completed our $3 billion construction program despite COVID and s
Slide 6: 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 5
Slide 7: Eversource's Total Shareholder Return Has Outperformed the Industry Significantly
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
Slide 8: 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
Slide 9: Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7%
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
Slide 10: 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 9
Slide 11: 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
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
Slide 13: Remaining Lease Capacity Is Well-Positioned To Maintain Our Disciplined Growth Strategy
Remaining Lease Capacity Is Well-Positioned To Maintain Our Disciplined Growth Strategy Eversource & Ørsted Leases State Offshore Wind Procurement Authority RI 0.6 GW Awarded Remaining CT 1.2 GW Authorized Remaining MA 1.6 GW Remaining NY 4.7 GW Remaining 0 2 4 6 8 10 GW 12
Slide 14: 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
Slide 15: 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
Slide 16: Phil Lembo
Phil Lembo Executive Vice President & Chief Financial Officer 15
Slide 17: 2020 vs. 2019 Financial Results
2020 vs. 2019 Financial Results Full Year Full Year 4Q 2020 4Q 2019 Change Change 2020 2019 Electric Distribution $0.27 $0.28 $(0.01) $1.60 $1.59 $0.01 Electric Transmission Ex. NPT 0.35 0.36 (0.01) 1.48 1.43 0.05 Impairment (Non-GAAP) Natural Gas Distribution 0.18 0.12 0.06 0.40 0.30 0.10 Water Dis
Slide 18: 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
Slide 19: 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
Slide 20: $2.8 Billion Increase in 2021-2024 Core Business Capex Since February 2020 Plan
$2.8 Billion Increase in 2021-2024 Core Business Capex Since February 2020 Plan Up $446 million $6,000 $5,220 $5,000 $4,774 Up $1,617 Up $528 million million $4,000 $3,660 $3,594 $ in Millions $3,066 $3,000 $2,043 $2,000 Up $47 Up $195 million million $1,000 $871 $561 $608 $676 $0 Electric Electric
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
Slide 22: Key Elements Inside and Outside Our 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
Slide 23: 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
Slide 24: 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
Slide 25: 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
Slide 26: Appendix
EVERSSURCE ENERGY APPENDIX
Slide 27: Projected Transmission Capital Expenditures
Projected Transmission Capital Expenditures $1,200 Other concepts $1,065 under development $1,000 $964 $153 $915 $853 $194 $800 $189 $761 $711 $ in Millions $223 $469 $224 $153 $600 $367 $462 $400 $426 $331 $385 $200 $403 $443 $264 $204 $206 $173 $0 2020A 2021E 2022E 2023E 2024E 2025E CL&P NSTAR Ele
Slide 28: Transmission Rate Base Growth Projections
Transmission Rate Base Growth Projections $12,000 $10,056 $10,295 $10,000 $9,752 $9,318 $1,808 $8,678 $1,608 $1,742 $7,972 $1,464 $8,000 $1,381 $ in Millions $1,271 $6,000 $4,164 $4,342 $4,516 $3,860 $3,434 $3,119 $4,000 $2,000 $3,582 $3,863 $3,994 $3,979 $3,972 $3,971 $0 2020A 2021E 2022E 2023E 202
Slide 29: Eversource is 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
Slide 30: 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 29
Slide 31: Aquarion Rate Base Forecast
Aquarion Rate Base Forecast $1,341 Year- End Rate Base $ in Millions $1,283 $1,195 $1,114 $1,047 $942 $887 $820 2018A 2019A 2020A 2021E 2022E 2023E 2024E 2025E 30
Slide 32: Lower Generation Capacity Costs Helping to Keep New England Electric Bills In Check
Lower Generation Capacity Costs Helping to Keep New England Electric Bills In Check $4,500 $4,000 $4,000 $3,500 $3,000 $3,000 $ In Millions $2,500 $2,400 $2,100 $2,000 $1,600 $1,500 $1,360 $980 $1,000 $500 $0 FCA 9 FCA 10 FCA 11 FCA 12 FCA 13 FCA 14 FCA 15 June 2018- June 2019- June 2020- June 2021-
Slide 33: 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
Slide 34: 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 CL&P filing of 2020 costs, 3/1/21; Interim decision, Annual review of multiple CL&P trackers (RAM) 21-01-03 4/28/21; New rates subject to tr
Slide 35: NSTAR Electric Clean Energy and Grid Modernization Initiatives
NSTAR Electric Clean Energy and Grid Modernization Initiatives Solar: • 70 MW of rate base solar in operation • Legislation passed that would permit another 280 MW Storage: • Construction under way on Cape Cod project and permitting in process on smaller Martha’s Vineyard project • Completion expect
Slide 36: Key Elements of Eversource's Grid Mod Filing in CT
Key Elements of Eversource’s Grid Mod Filing in CT AMI Electric Vehicle Infrastructure • Recommend a full rollout to all CL&P • Rollout to include 3,000 level-2 customers by the end of 2024 chargers, 20 DC fast chargers, 2,500 • Significant economic, environmental and single-family homes operational
Slide 37: Eversource 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
Slide 38: Eversource 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
Slide 39: 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
Slide 40: Carbon Reduction Goals and Vehicle Emissions Standards Will Help Electrify Transportation Sector
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