Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — Non-Deal Roadshow (January 2021)
33 slides from Eversource Energy (d/b/a)'s roadshow presentation, Jan 12, 2021
Slide 1: Investor Meetings
Investor Meetings January 12-15, 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: Eversource is the Largest New England Utility and 1 of the 10 Largest in the United States
Eversource is the Largest New England Utility and 1 of the 10 Largest in the United States Eversource Electric Customers 3.22 million Natural Gas Customers 880,000 Water Customers 220,000 Employees 9,000 2
Slide 4: Eversource's Total Shareholder Return Has Outperformed the Industry Significantly in Both the 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 5th
Slide 5: Earnings Expected to Supplement 5-7% EPS CAGR through 2024
Eversource Gas of MA Earnings Expected to Supplement 5-7% EPS CAGR through 2024 Expected higher than 5%-7% after larger offshore wind projects enter service $3.60 - $3.70 $3.45 $3.25 $3.11 $2.81 $2.96 $2.53 $2.65 $2.28 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020E* 2021E 2022E 2023E 202
Slide 6: Dividend Growth Continues to Outperform Peers
Dividend Growth Continues to Outperform Peers Annualized Dividend $2.50 $2.27 $2.14 $2.02 $2.00 $1.90 $1.78 5% - 7% +$0.13 $1.50 +$0.12 $1.00 +$0.12 +$0.12 $0.50 +$0.11 $0.00 2016 2017 2018 2019 2020 Payout 60% 61% 62% 62%* Ratios: *Excludes charges related to NPT in 2019 5
Slide 7: Regulated Utility Capital Investment Program
Regulated Utility Capital Investment Program 6
Slide 8: Projected Capital Expenditures For Core Businesses
Projected Capital Expenditures For Core Businesses $14.2 Billion 2020-2024 $3,500 $3,053 $3,071 $3,000 $220 $2,834 $2,817 $2,830 $239 $2,763 $124 $2,706 $185 $110 $169 $165 $171 $171 $2,472 $102 $127 $134 $2,500 $470 $147 $153 $152 $453 $ In Millions $14 $404 $498 $501 $335 $507 $537 $2,000 $1,221 $
Slide 9: We Plan to Update 5-Year Cap Ex Plan Through 2025 During Year-End 2020 Earnings Call
We Plan to Update 5-Year Cap Ex Plan Through 2025 During Year-End 2020 Earnings Call Key Expected Changes • Adding Eversource Gas Company of MA capital program • Annual updates for electric, natural gas and water distribution • Electric Transmission update to reflect additional projects identified a
Slide 10: 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) Transaction pre-financed; equity sold in June 2020; debt in August 2020 Expected to be accretive ove
Slide 11: Key Elements of Settlement Approved by MA DPU in October 2020
Key Elements of Settlement Approved by MA DPU in October 2020 Joint settlement with MA AG, DOER, NiSource and low-income network Eight-year rate plan Day One rate base of approximately $1 billion Authorized ROE: 9.7% Authorized equity in capital structure of 53.25% General rate increases
Slide 12: NSTAR Electric Clean Energy and Grid Modernization Initiatives
NSTAR Electric Clean Energy and Grid Modernization Initiatives Solar: • All sites now in service • 70 MW in operation – enough to power 11,000 homes Storage: • Construction underway on Cape Cod project; permitting continues on Martha’s Vineyard project • Completion expected in 2021 at a combined cos
Slide 13: 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 14: Projected Investment in Pipe Replacements 2019-2024
Projected Investment in Pipe Replacements 2019-2024 All With Timely Cost Recovery Consistent with our sustainability strategy, we replaced 90 miles of $247 $250 cast iron and steel pipe with safer, $232 more durable plastic in 2019. $217 $205 $200 $181 $184 $144 $137 $150 $130 $126 $113 $112 $ in Mi
Slide 15: Investments in System Improvements Are Driving a Notable Increase in Projected Rate Base
Investments in System Improvements Are Driving a Notable Increase in Projected Rate Base $1,257 $1,167 Year- End Rate Base $ in Millions $1,077 $996 $927 $887 $820 $740 $760 $690 $710 2014A 2015A 2016A 2017A 2018A 2019A 2020E* 2021E* 2022E* 2023E* 2024E* *Reflects rate base reduction due to the clos
Slide 16: Eversource Offshore Wind Portfolio
Eversource Offshore Wind Portfolio 15
Slide 17: Offshore Wind – Delivering On The Northeast's Energy & Environmental Policy Goals
Offshore Wind – Delivering On The Northeast’s Energy & Environmental Policy Goals Offshore Wind Benefits Eversource-Ørsted’s Offshore Wind Portfolio Improves winter reliability by reducing dependence on Power for more than constrained pipeline networks 2 million homes Significant local and natio
Slide 18: 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 • $110.37/MWH • ~ $86.25/MWH for 40 MW escalator) • (no escalator) • (avg. annual escalator: 2%) • CT pricing not
Slide 19: Remaining Lease Capacity Is Well-Positioned To Maintain Our Disciplined Growth Strategy
Remaining Lease Capacity Is Well-Positioned To Maintain Our Disciplined Growth Strategy Ørsted & Eversource Leases State Offshore Wind Procurement Authority RI 0.6 GW Awarded Remaining 1.2 GW Authorized CT Remaining MA 4.0 GW Remaining 7.2 GW NY Remaining 0 2 4 6 8 10 GW 18
Slide 20: Key Elements of Year-End Federal Legislation Regarding Offshore Wind
Key Elements of Year-End Federal Legislation Regarding Offshore Wind On 12/22/20, Congress passed significant offshore wind legislation Offshore wind projects can now qualify for a full 30% ITC value if construction starts on or before 12/31/25 On 12/31/20, IRS issued a notice that provides a
Slide 21: Regulatory Update
— = A eveerscurcee ENERGY Regulatory Update
Slide 22: 2020 Rate Cases
2020 Rate Cases Eversource Gas of MA PSNH NSTAR Gas • PSNH filed a general rate case to • Joint settlement with MA AG, raise annual base distribution rates by • On 11/8/19, NSTAR Gas filed a DOER, NiSource and low-income approximately $70 million, including an rate request seeking a $38 network incr
Slide 23: Previous Distribution Rate Decisions
Previous Distribution Rate Decisions Yankee Gas Rate NSTAR Electric CL&P Rate Settlement Settlement Rate Decision Effective Date: 2/1/18 Effective Date: 5/1/18 Effective date: 11/15/18 Authorized ROE: 10% Authorized ROE: 9.25% Authorized ROE: 9.3% Term: 5 years Term: 3 years Base r
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: Historic Storm Comparison
Historic Storm Comparison Damage comparison Damage comparison of Tropical of Tropical Storm Storm Isaias, Superstorm Isaias, Superstorm Sandy, the October 2011 Nor’easter, Sandy, the October ’11 Nor’easter, and Superstorm and Sandy. Tropical Storm Tropical Storm Irene Irene. October 2011 Measured us
Slide 26: New Legislation and PURA Storm Review
New Legislation and PURA Storm Review Key Points of Legislation Remaining PURA Schedule Directs PURA to evaluate a performance- Jan. 20-22, 2021 – Late file hearings based regulation and to open a docket by 6/1/21 Feb. 5 - Briefs (tentative) Extended the timeline for rate cases from 6 Feb.
Slide 27: ESG at Eversource
— = A eveerscurcee ENERGY ESG at Eversource
Slide 28: Eversource Only US Energy Utility System Targeting Carbon Neutrality By 2030
Eversource Only US Energy Utility System Targeting Carbon Neutrality By 2030 Eversource GHG Emissions in Metric Tonnes CO2e Reducing our Carbon 25,000,000 Footprint from Corporate 22,041,842 Operations 20,000,000 HOW WE’LL GET THERE • Reduce our own energy use by 15,000,000 improving the efficiency
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 The National Organization on Disability honored Eversource as a 2020 Leading Disability Employer. One of only four energy compa
Slide 30: New England States Have Aggressive Renewable and GHG Targets
New England States Have Aggressive Renewable and GHG Targets Regional Greenhouse Gas Emission Targets MMTCO2e Renewable Portfolio Standards in Place 2019 2020 2025 CT 27.5% 29.0% 38.0% MA 24.94% 27.7% 38.96% NH 19.7% 20.7% 25.2% (Percentage of electricity that must come from qualifying renewable fac
Slide 31: Most Effective Method of Reducing Emissions: Improve Energy Efficiency
Most Effective Method of Reducing Emissions: Improve Energy Efficiency 15 3 20 1 6 3 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 3.3% Since 2014, While KWH Sales D
Slide 32: 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 33: 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