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 2009
53 slides from Connecticut Light & Power Co. (the)'s conference presentation, Nov 2, 2009
Slide 1: EEI Financial Conference, November 2, 2009
EE! Financial NOVEMBER 2, 2009 \ Northeast \’ Utilities
Slide 2: Safe Harbor Provisions
| ESR EESRRESERRRRERRRRRRRERE lll ay, Nonth Safe Harbor Provisions Dales This presentation contains statements concerning NU’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historica
Slide 3: Overview of Today's Presentation
OS SSS RRSSRESRRRERRRRREREREREE UU Overview of Today’s Presentation Northeast BERR ¢ Current Year: What we have accomplished to date « Near Term: Key initiatives to drive results in 2010 and 2011 « Longer Term: Key elements of our investment plan to meet customer needs, address regional energy polic
Slide 4: Current Year Accomplishments
Current Year Accomplishments ) Valdes a + Advanced HQ, NEEWS, Clean Air Project, WMECO solar initiative Strategic i + Significantly improved regional reliability + Completed CL&P AMI pilot + Published inaugural Corporate Social Responsibility Report * YTD net income: TWi2% Financial ed * Quarterly d
Slide 5: Key Near Term Initiatives and Their Impact
OS SS RES SRS EREREe lll Key Near Term Initiatives and Their Impact ani Northeast Utilities a Actions Commence construction of Greater Springfield Reliability Project and move other NEEWS projects to siting Continue to advance HQ project Achieve fair outcomes in CL&P, PSNH, WMECO rate cases Continue
Slide 6: Initiatives To Address Long-Term Regional Energy Challenges
Initiatives To Address Long-Term Regional Energy Challenges ESR EESRRESERRRRERSRRRERERER lll as In 5-Year Challenges Opportunities Capital Plan Partner with NSTAR, HQ to build new 1,200 MW HVDC Yes line Reduce carbon emissions, Expand M/solet No dependence on imported oil Increase penetration of . Y
Slide 7: Developing a Regional Renewable Solution for New England
“SEER SRReRRReREeeeeeS Developing a Regional Renewable Solution é \ Northeast for New England S| viilities Concept + Renewable Access Transmission Line + 2,000 MW + $1.5 billion to $2 billion Electricity Demand Wind Zone New Line
Slide 8: Regulated Investment Strategy
Regulated Investment Strategy
Slide 9: Significant Accomplishments, Major Progress in Deployment of Capital Program
SSSR ERSSRRSRRRRRRRRRRR CUCU Significant Accomplishments, Major Progress in Deployment of Capital Program and Strong Execution of Operating Companies: oy Cornerstones of Our Financial Stability Si iii * Through our $6.4 billion capital investment plan, we continue to address needed infrastructure up
Slide 10: Excellence in Execution in Major Transmission Projects
I Excellence in Execution as in Major Transmission Projects Zs Four southwest CT transmission projects completed at a cost of $1.6 billion; nearly $80 million under budget and one year ahead of schedule gots? . The mene 3009e. Seward Underground GDISON ELECERICINGTIRUEE &Gverhead EDISON ELECTRIC INS
Slide 11: NEEWS Advances Into the Siting Phase
URS REESRRESERRERRRRRREEREESEEeS lll NEEWS Advances Into the Siting Phase ani Utilities GSRP Status + ISO confirmed need date in October 2009 aie + CT and MA hearings ongoing; 5 i Greater Springfield Yr completion set for Q4 09 Haiti Brejeet Sp, + Decisions and orders expected a é By = il es in earl
Slide 12: NEEWS Projects - $1.49 Billion
12 NEEWS Projects - $1.49 Billion Capital Investment (2009-201 4) NEEWS Projects Milestones Northeast Utilities Greater Springfield Does notinclude $211 M in ancillary projects Interstate File Municipal Consultation Filing (MCF) 7 Vv Conduct MCF outreach vo o Hold open houses ov vo File siting appli
Slide 13: 2010-2014 Transmission Capital Expenditures
SSSR RSSRSRRRReeeeS ll ne 4 : North 2010-2014 Transmission Capital Expenditures Uilities Historic Forecast $2.8 Billion Up To $2.9 Billion he A HVDC Line from $900 7 ~ 7 SY Canada US portion now estimated at $900 million with $675 million NU ownership share $800 Successful $700 completion of SWCT pr
Slide 14: 2010-2014 Transmission Capital Program
2010-2014 Transmission Capital Program SS” Northeast a 7 Utilities Other Projects — In Millions . CLEP WMECO PSNH (SETSAREAREIAEIGNNNNSTOOND] Berkshire Arca Solution $1700 Manchester - East Hartford Line $534 115 KV Relay Replacements $144 Scobie - TewksburyLine $52.0 (ScUEWESECTIUDISUESNNNNNNNNNNNS
Slide 15: HQ project commentary
When we conceived this project, we initially wanted to run it all the way to Newington, hop in the water, and proceed down to Boston. We quickly realized that would make this just another expensive Transmission line looking to be funded by the region, or even the nation. Instead, we realized if we p
Slide 16: Marketplace test required for DG up to MW in NH
Marketplace test required for DG up to 5 Mw in NH The evolving New Hampshire political environment, regarding future opportunities for large-scale renewables (e.g. biomass and wind)
Slide 17: Projected Electric Distribution Capital Expenditures Compared to Previous Plan
SEEPS eeeeeeeeeeeseee Sl Projected Electric Distribution Capital ani Northeast Expenditures Compared to Previous Plan i Optimizing our distribution capital infrastructure investment plan reduces our capital requirements by approximately $191 million when compared to our previous plan $550 = 2009-201
Slide 18: Electric Distribution and Generation Capital Expenditures by Company
Electric Distribution and Generation Capital Expenditures — By Company 18 $750 $700 $650 $600 $550 $500 450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2010-2014 Projected Distribution & Generation Capital Spending $2.8 Billion 572 2008 Proj 2010 2011 2012 2013 2014 SZ Northeast 7 Utilities = WMECO -
Slide 19: Smart Grid Technology
URS REESRRESERRERRRRRREEREESEEeS lll Smart Grid Technology ani Northeast Utilities Sasha ehctlchci i ofall oleate + CL&P concluded a 3,000 customer AMl/rate pilot on 8/31/09 to test the technology and customer interest in dynamic pricing rates * Good customer response ¢ Gained insight on customer be
Slide 20: Yankee Gas Capital Expenditures
Yankee Gas Capital Expenditures 2010-2014 Projected Yankee Gas Capital Spending $461 i ion $120 120 104 Yankee Gas Strategy + Investing $461 million, leveraging natural gas as "the fuel of choice” + Distribution system expansion: $87 million, 16-mile Waterboury-to- Wallingford Line (WWL) “+ Sales gr
Slide 21: Financial
Financial
Slide 22: Overview
Overview fal Northeast Utilities SS 22 2009 YTD results position NU to achieve original EPS guidance, despite earlier and larger share issuance and pressures stemming from the economy New 2010 EPS guidance positions NU to achieve modest growth over 2009, although rate case outcomes are critical succ
Slide 23: First Nine Months 2009 Results
‘URES eeeseeseee First Nine Months 2009 Results PJ Earnings For Common In Mi $300 $280 12.2% $260 $245.3 $240 x ee $2107 $200 $180 - $160 4.4% tisox $140 = 2008 $120 $1038 = 2009 $100 $1149 $120.0 $1200 $80 $60 $40 $20 $87 $11.6 $0 — Distribution and Transmission Parent/Other Competitive Total Gener
Slide 24: First Nine Months 2009 Distribution and Generation Results
“lS REESE RSRRRRRReREseeeS First Nine Months 2009 Distribution and Northeast Generation Results Gis Vites $70 —— $60 $121% $36.2 = 2008 = 2009 133.7% Earnings For Common In Millions $323 $153 $15.3 $135 - a | clap PSNH WMECO Yankee Gas 24
Slide 25: Increased Transmission Investment Has Diversified and Significantly Increased Regulated Earnings
SEEPS eeeeeeeeeeeseee Sl Increased Transmission Investment Has Diversified and AS”. northeast Significantly Increased Regulated Earnings |) Utilities 2005 12 Months Ended 9/30/09 498% Net Income: $163.4 Net Income: $310.6 Regulated EPS: $1.24 Regulated EPS: $1.85 Regulated Net Income (In millions) H
Slide 26: 2009 - 2010 EPS Guidance
UES REESTRSSSRRRRRRRRRRSREESeee SS lll 2009 - 2010 EPS Guidance 2009 Curre! 2010 New 2008 Actual Guidance Guidance Distribution/Generation $0.96 $0.90 - $1.00 $0.95 - $1.05 Transmission $0.89 $0.90 $0.90 - $0.95 Competitive $0.08 $0.05 $0.00 - $0.05 NU Parent/Other excluding litigation ($0.07) ($0.0
Slide 27: Key Earnings Drivers for 2010 - 2011
SS eae Key Earnings Drivers for 2010 - 2011 2010 SZ Northeast 7 Utilities 2011 * CL&P, PSNH rate cases (24 half only) * PSNH Clean Air Project + CL&P, PSNH rate cases + WMECO rate case, solar investment + Possible Yankee Gas rate case Positive construction (AFUDC) + PSNH Clean Air Project constructi
Slide 28: Downturn in Retail Electric Sales Appears To Be Slowing
SSSR RSSRSRRRReeeeS ll Downturn in Retail Electric Sales Appears SS” Northeast rs Utilitic To Be Slowing Gish Vile 3 Months Ended vs. Same Period Previous Year Projected Changes in Retail Sales in 2010, 2011 % Change (WMconsolidated) (NU Consolidated) 6.0% % of Distribution 2010 2011 Revenues from Z
Slide 29: Electric Distribution Rate Cases are Critical to Improving Returns
Electric Distribution Rate Cases are Critical to = °°) Northeast Improving Electric Distribution Returns Gah vies Rate Case Schedule 2010 Apr. Jul PSNH ae 3.9% “ | 9.4% y cr | any | 7 tion (Expected Schedule) 8.0% - 12.0% a WMECO (1107) 86% (Expected Schedule) Yankee 10.1% 8.0% Under assessment Gas
Slide 30: Current CL&P Rates Trending Down
30 Current CL&P Rates Trending Down ani Binns 2003-2009 Average Total Bill For Ail Customers Receiving Generation Supply From CL&P 18.689 17.788 ro] 78 we 055 10.783 9.336 & 2 & 8 12.076 12.147 I a a ao 3 3 ca a 7.185 a Z 2003 2004 2005 2006 2007 2008 2009 Oct. 2009 201072011 = Supply «Distribution
Slide 31: CL&P Rate Reduction Bond Obligations Nearing the End
“SEER SRReRRReREeeeeeS CL&P Rate Reduction Bond (RRB) Obligations S° Northeast Nearing the End Zi Vilites $250 $200 $160 +4 e100 $127 é/ kwh =0.9 0 _ : | Ee 2 be 0 2002 2002 2004 2005 2006 2007 2008 2009 2010 2011 Est. Est. = interest on RRBs = Amortization of RRBs 3
Slide 32: Key Earnings Drivers for 2012 and Beyond
SES REESRRESRRRRRRRRRRRRER UU Key Earnings Drivers for 2012 and Beyond SS Distribution: + Ability to achieve authorized distribution returns on increasing levels of invested capital Transmission: + NEEWS construction + 12.89% authorized ROE * 100% cash return on CWIP. + HVDC line from Québec + Expec
Slide 33: 2009-2014: New Capital Expenditure Forecast
“SEER SRReRRReREeeeeeS c 2009-2014: New Capital Expenditure Forecast yg Binns 8 1,73; 91,388 $1,194 94. 2009 2010 2011 2012 2013 2014 ion and Generation Capex (11/08 Forecast) Il istribution and Generation Capex (11/09 Forecast’) Il Transmission Capex (11/08 Forecast) Ml Transmission Capex (11/09 Fo
Slide 34: Projected Combined Year-End Rate Base
SS eae Projected Combined Year-End Rate Base $12,000 2009 $11,057 New Base Year $10,000 = \ o ail $8,154 8 $8,000 - = = $7,069 4 pal $6,473 faa a 64324 a g 6.000 oe — 2 13,872 = ¢4.000 g ae%8 = $2,000 | 3,513 12,680 — $0 2008 2008E 2010E 2011E 2012E 2013E 2014E Actual Transmission = Distribution © m
Slide 35: Fully Tracked Transmission, Generation Projected to Become Half of Rate Base
SEE STRSSSRRESSRSSRReREeeeee Sl Fully Tracked Transmission, Generation Projected to Become Half of Total Rate Base and Nearly 60% of Earnings Northeast Utilities Transmission 2009E Year-End Rate Base Composition $7.1 billion 2009 Rate Base: $2.6 billion 10-4E Capex: $2.9 billion i= Transmission 1m D
Slide 36: Key Changes in Capital Expenditures Assumptions Since Last Year
SEEPS eeeeeeeeeeeseee Sl 36 Key Changes in Capital Expenditures Assumptions Since Last Year Similar + NEEWS share still nearly $15 billion, but construction spread out through 2014 + PSNH Clean Air Project ($457 million) still on track for 2012 completion + PSNH, WMECO distribution investment + CL&P
Slide 37: Funding The Capital Program and Dividends 2010 - 2014
| OS SSR RSE lll Funding The Capital Program and ou) Dividends 2010 - 2014 Be + No maturities until 2012 New Financings earlier than 2012 + $2.7 billion debt issuances in 2010-2014 ($340 million in 2010) Internally generated cash net of Rate Reduction Bond retirements + Approximately $700 milion in
Slide 38: Dividend Policy
URE REESRRESERRRRERRRREEREREEEeS lll Dividend policy ($) EPS Ml Dividends naidideclared pershare ll —— Payoutratios $2.00 $1.50 $1.00 soso so.00 2006 2007 2008 20096 + Excludes net income af compettive businesses, one-time CLAP tax reduction Excludes ifigetion setlement charge 38 70.0% 60.0% | 50.0%
Slide 39: Summary
Summary oy Northeast Utilities 39 NU is poised to complete a solid 2009 Positioned for modest growth in 2010 and potentially significant growth in 2011 Our regulated investment strategy positions us to invest $6.4 billion over the next five years Major projects including NEEWS, HQ, New Hampshire Cle
Slide 40: Questions and Answers
Slide 41: Appendix
Slide 42: 2008-2014: Projected Capital Expenditures and Depreciation
2008-2014: Projected Capital Expenditures E> Northeast and Depreciation Zi Vilites $1,600 $1,400 $1,200 $1,000 $800 $600 In Millions 400 $200 $o 2008 2009 2010 2011 2012 2013 2014 Actual Total Capex {incl. cost of removal and AFUDC}* = Depreciation “Totals include capex at corporate service companie
Slide 43: Projected Transmission Capital Expenditures
SSS SESS Projected Transmission Capital Expenditures ani Northeast $900 $806 $800 $752 $700 $626 $600 $465 In Millions $500 $400 $300 $200 $100 $0 2009 2010 2011 2012 2013 2014 wcléP om@PSNH mWMECO mTransmission from Canada 4B
Slide 44: Projected Distribution Capital Expenditures
Projected Distribution Capital Expenditures ani fecha $600 $487 $500 $451 $463 $457 $461 $425 $400 $300 In Millions $200 $100 $0 2009 2010 2011 2012 2013, 2014 mCL&P mPSNH mWMECO 44
Slide 45: Projected Generation Capital Expenditures
45 Projected Generation Capital Expenditures In Millions $250 $200 $150 $100 $50 $0 SZ Northeast 7 Utilities $207 $147 $131 $89 $68 $26 2009, m= Other 2010 2011 m@ PSNH Clean Air Project 2012 2013. 2014 m WMECO Solar Project
Slide 46: Projected Yankee Gas Capital Expenditures
ee Projected Yankee Gas Capital Expenditures Northeast 46 In Millions $112 $104 $80 $82 $83 | 2009, 2010 2011 2012 2013 2014
Slide 47: Projected Distribution and Generation Year-End Rate Base
In Millions a7 Projected Distribution and Generation Year-End Rate Base to $6,000 $5,000 $4,435 $4071 Bei cee $4,000 i — ——; $165 —— SIT ee 2008 2009 2010 2011 2012 2013 Actual =CL&P Distribution @ PSNH Distribution = \VMECO Distribution Yankee Gas = PSNH and WMECO Generation 2014 Projected Distribu
Slide 48: Projected Transmission Year-End Rate Base
Projected Transmission Year-End Rate Base* In Millions 48 Northeast Utilities Transmission $4673 Rate Base CAGR of 12% 2013 2008 2003 2010 2011 2012 Actual = CL&P* *100% CWIP assumed for NEEWS projects *NU share of this project is depicted as traditional rate base without CWIP during construction 20
Slide 49: 2010-2014 Transmission Capital Program: 2008 EEI vs. 2009 EEI
i i. 2010-2014 Transmission Capital Program ani Nostheest 2008 EE! (2009-13) vs. 2009 EEI (2010-14) .j cabal $3,600 3451-275 $3,400 4 “Ej a EN $3,200 ons 1 OSB cconnencnnnenmensnsnnorceaeenaseses i B3O00 tos PMMMM neeeneeeenseeeceeseesncefllMlacenneneesnnnnenpeamaa teenie Ss = $2,800 |. ee eee EB CO
Slide 50: Marketplace test required for DG up to MW in NH
Marketplace test required for DG up to 5 Mw in NH The evolving New Hampshire political environment, regarding future opportunities for large-scale renewables (e.g. biomass and wind)
Slide 51: NU's FERC Authorized Transmission ROE
NU’s FERC Authorized Transmission ROE 51 NEEWS Incentives Other Transmission se FERC approved incentive ROE adder Technology adder for underground portion of Middletawn-Norwalk mNew England projects entering service after 2004, but before 1/1/09 mlncentive for Regional Transmission Organization memb
Slide 52: 2006 - 2010 NU Consolidating EPS GAAP / Non-GAAP Reconciliation
2006 — 2010 NU Consolidating EPS ani Northeast GAAP / Non-GAAP Reconciliation tee BERMGGGG oo Distribution/Generation $0.80 $0.94] $0.96] $0.90-$1.00] $0.95- $1.05 Transmission 0.39 053} 089 ogo) 090-095 Total Regulated 1.19 147] 1:85 180-190[ 1.85-2.00 NU Parent/Other (0.03) 0.04} (0.07) (0.05) (0.
Slide 53: 2006 - 2008 NU Consolidating Earnings GAAP / Non-GAAP Reconciliation
SSS SEES 2006 — 2008 NU Consolidating Earnings 53 GAAP / Non-GAAP Reconciliation 2006 Actual ($ in millions) Distribution / Generation $123.5 $146.2 $150.8 Transmission 598 825 138.3 Total Regulated 183.3 228.7 289.1 NU Parent / Other 6.1) 64 (11.8) Total Regulated and Parent $178.2 $234.8 $277.5 Co