Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — EEI Financial Conference 2016
29 slides from Eversource Energy (d/b/a)'s conference presentation, Nov 4, 2016
Slide 1: EEI Financial Conference
EEI Financial Conference November 5-9, 2016 EVERSSURCE ENERGY
Slide 2: Safe Harbor
Safe Harbor 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 abilities alloca
Slide 3: The Eversource Investment Thesis
EET FINANCIAL CONFERENCE The Eversource Investment Thesis = Fully regulated business model = Strong FERC regulated electric and gas v transmission growth = Attractive natural gas segment growth from a conversions and infrastructure upgrades = Highest S&P credit ratings = No equity needs = Top-tier o
Slide 4: We've Delivered Top-Tier Shareholder Returns
EEI FINANCIAL CONFERENCE We’ve Delivered Top-Tier Shareholder Returns ES outperformed the Philadelphia Utility Index over the 1, 3, 5 and 10 year periods Total Shareholder Return Philadelphia Utility Index 6.3% 33.5% 57.6% 89.1% S&P 500 1.4% 52.6% 80.8% 105.7% An integral part of our total return is
Slide 5: EPS
EPs 1 . 20128 = 2013A.—=«2014A.— 015A 2016E = «2017E = 2018E += 2019E Growth in 2016 and through 2019: Key Drivers for EPS Negative > Increasing depreciation & property taxes Positi > FERC-regulated electric and naturalgas transmission growth > O&M reductions > Natural gas expansion and system upgra
Slide 6: A Core Eversource Strategy Going Forward is to Develop and Implement Clean Energy Solutions
A Core Eversource Strategy Going Forward is to Develop and Implement Clean Energy Solutions for New England = New England has aggressive renewable, carbon reduction targets = Thousands of megawatts of New England’s nuclear, coal and oil units have retired in recent years and thousands more will reti
Slide 7: These Targets Are Among the Nation's Most Aggressive
EEI FINANCIAL CONFERENCE These Targets Are Among the Nation’s Most Aggressive Regional Greenhouse Gas Emission Targets MMTCO2e 160 ~ Renewable Portfolio Standards in Place 2015 2020 2025 110 = NH CT 19.5% 27% 27% 60 + =MA =CT MA 19.25% 23.5% 29.75% ue 40 10 - NH 8.3% 20.3% 24.8% 1990 Actual 2020/202
Slide 8: Key Elements of New Massachusetts Energy Legislation
Key Elements of New Massachusetts Energy Legislation — H 4568 — An Act to Promote Energy Diversity * Signed by Governor Baker on 8/8/16 + Authorizes long-term contracting for 1,600 MW of off-shore wind + First solicitation for at least 400 MW commencing on or before 6/30/17 with full obligation comp
Slide 9: Higher Earnings from Transmission
Higher Earnings from Transmission Becominga Growing Share of Rate Base $18.3 billion* 40% Note: Rate Base Excludes Access Northeast and Clean Energy Connect $14.7 billion 48% $2.5 Billion Increase in Transmission Rate Base Projected 2019 Year-End Rate Base 2015 Year-End Rate Base I ElectricTransmiss
Slide 10: Northern Pass HVDC
Northern Pass HVDC Line to Canada. NPT Actual Forecast CapEx to be primarily in $807M $3.9 Bi 2018 and 2019 due to NHSEC scheduling order Other initiatives Greater Hartford Central Connecticut Projects sine $303 ions In Mil Greater Boston Projects $425M Non-NPT 2017 CapEx expected to exceed $850M EV
Slide 11: Transmission — Northern Pass Update
Transmission — Northern Pass Update 1,090 MW of clean energy $1.6 billion HVDC line, terminal and AC facilities Approximately 192 miles of new transmission using HVDC technology with AC/DC converters in Quebec and NH DOE draft Environmental Impact Statement issued 7/21/15 Revised route announced 8/1
Slide 12: Northern Pass Timeline
(October 19, 2015 Northern Pass filed application with New Hampshire Site Evaluation ommittee (NHSEC) July 21,2015 Department of Energy (DOE) sued Draft Environmental Impact Statement (EIS) Northern Pass Timeline September 30, 2017 NHSEC approved deadline for issuing decision December 18, 2015 NHSEC
Slide 13: Progress on Major Transmission Reliability Projects
Progress on Major Transmission Reliability Projects Greater Hartford Central Connecticut Greater Boston Reliability Solutions (GHCC) + 27 projects including seven new transmission + First seven of 27 projects now in service lines, new substations and substation expansion cts + Eight projects under c
Slide 14: Initiatives to Support Growth Beyond 2019
Initiatives to Support Growth Beyond 2019 Investment Status Amount Time Period : Initial pipeline AccessNortheast Assessingnext steps") 54 9 billion (ES share) 2019; LNG with state processes afterward Clean Energy Connect Possible bid into MA clean energy RFP —April 2017 ES share: $400M+ 2020 and be
Slide 15: Carbon Reduction Goals and Vehicle Emissions Standards Will Help Electrify Transportation
EEI FINANCIAL CONFERENCE Carbon Reduction Goals and Vehicle Emissions Standards Will Help Electrify Transportation Sector MA and CT have adopted federal ZEV rules, CAvehicle emissions standards Lack of available infrastructure is currently viewed as much of a barrier to adoption of EVs as incrementa
Slide 16: "Make Ready" Approach
EET FINANCIAL CONFERENCE “Make Ready” Approach = Weare considering a “make ready” model that includes Level II Chargers and DC Fast Chargers = Third-party covers cost of chargers “Make Ready” Utility Infrastructure Charger Infrastructure aon a ier Utility Pad a Conductor + wuiyiaiaion ted panet “Bn
Slide 17: Policy Interest in Energy Storage Within the Region is Growing
Policy Interest in Energy Storage Within the Region is Growing with Several Avenues for Cost Recovery = Massachusetts — DOER/ Clean Energy Center recommends Massachusetts develop policies for 600 MW of storage by 2025 in the “State of Charge: Massachusetts Energy Storage Initiative” report — DOER tw
Slide 18: New England's Natural Gas Transmission Capacity Dilemma Today
EET FINANCIAL CONFERENCE New England’s Natural Gas Transmission Capacity Dilemma Today New England natural gas (and power) market prices are highest in the country Marcellus area prices low as low cost production looks for outlets but pipeline projects lack funding or are delayed, trapping gas just
Slide 19: That Dilemma Intensifies as Non-Gas Generation Retires by Mid-2019
That Dilemma Intensifies as 2,000-3,000 MW of Non-Gas Generation Retires by Mid-2019 New England Gas-Fired Power Plant Capacity lm Gas Primary (Dual Fuel) ™ Gas Only 20,000 15,000 10,000 5,000 - aT Existing Winter Capacity (MW) Winter Capacity - Including Capacity with Firm Mainline Additions thru 2
Slide 20: Winter 2014-2015 Fossil Fuel Mix
Winter 2014-2015 Fossil Fuel Mix (mwn) (Average 2014-2015 winter wholesale price $76.64/MWh vs. $26.86 MWh in summer) 250,000 woil Coal 200,000 Natural Gas / LNG 150,000 a | La | Lit 50,000 December 2014 January 2015, Source: ISO-NE: Gordian van Welle presentation, November2016 and January 2016 Stat
Slide 21: Access Northeast - Long-Term Solution to New England Natural Gas Supply
Access Northeast - Designed to Provide a Long-Term Solution to Challenge of New England Natural Gas Supply Maritimes & Northeast } Project Scope: * Joint development with Eversource (40%), Spectra Energy (40%) and National Grid (20%) + ~$3 billion (100%); 900 MMcf/d, initial in-service 2019 * Will p
Slide 22: Status of New England States' Activity on EDCs Contracting for Natural Gas Capacity
Status of New England States’ Activity on EDCs Contracting for Natural Gas Capacity Electric Distribution Co. (EDC) Purchase of Natural Gas Pipeline Capacity Public Act 15-107 enacted 6/22/15. DEEP canceled natural gas capacity RFP on 10/25/16, stating, ‘DEEP CT | will monitor conditions in the ISO
Slide 23: Recent State Regulatory Developments
EEI FINANCIAL CONFERENCE Recent State Regulatory Developments = 62 MW proposal filed with DPU 5/30/16 = Settlement approved by NHPUC on 7/1/16 = 35 MW for NSTAR Electric = J.P. Morgan hired by NHPUC as auction adviser = 27 MW for WMECO = PSNH to recover generation investment through sale of plants,
Slide 24: Rate Case Activity
EET FINANCIAL CONFERENCE Rate Case Activity Jurisdiction Company Commentary NSTAR Electric Base rates frozen through 12/31/15 WMECO Base rate cases to be filed in 2017 Massachusetts NSTAR Gas $15.8M base rate increase effective 1/1/16 CL&P Next case: 2" half of 2017, effective 12/1/17 Connecticut Ya
Slide 25: Multiple Complaints Pending at FERC Regarding New England Transmission ROE
EEI FINANCIAL CONFERENCE Multiple Complaints Pending at FERC Regarding New England Transmission ROE FERC ROE COMPLAINTS " First complaint decided in 2014; resulted in base ROE of 10.57% and project cap of 11.74% = Appeal pending in DC Circuit Court—Oral arguments 12/6/16 = ALJ’s recommended decision
Slide 26: Third Quarter and Nine Months Results
EEI FINANCIAL CONFERENCE Third Quarter and Nine Months Results Nine Months Nine Months 2016 2015 $0.28 $0.24 $0.04 $0.84 $0.70 $0.14 $0.53 $0.53 $0.00 $1.20 $1.32 ($0.12) ($0.02) ($0.01) ($0.01) $0.16 $0.18 ($0.02) $0.04 ($0.02) $0.06 $0.04 ($0.01) $0.05 $0.83 $0.74 $0.09 $2.24 $2.19 $0.05 Change Q3
Slide 27: Credit Ratings by Company
S&P: BBB+ Moody's: Baa2 Fitch: BBB+ S&P: A- Moody's: A3 Fitch: A S&P: A- Moody's: A2 Fitch: At S&P: A- Moody's: A3 Fitch: A S&P: A- Moody's: Baa2 S&P: A- Moody's: Baat ad ay Fitch: BBB+ to Baa eee S&P: At upgrades Ua toAt Fitch: At S&P: A Moody's: A2 Fitch: At S&P: At Moody's: At Fitch: At S&P ipgra
Slide 28: ES Has the Highest Credit Rating in Utility Industry
EET FINANCIAL CONFERENCE ES Has the Highest Credit Rating in Utility Industry . = v I . I, BBB+ BBB- *Standard & Poor's credit ratings EVERSSURC! ENER
Slide 29: We Meet and Frequently Exceed Our Commitments to Our Investors
EEI FINANCIAL CONFERENCE We Meet and Frequently Exceed Our Commitments to Our Investors Our Commitments: Results Delivered: 1. Exceed industry EPS & Dividend Three-year average EPS and dividend growth of growth 7.2% and 8.2%, respectively 2. Reduce spending — Target 3-4%/yr. Three year average O&M r