Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — EEI Financial Conference 2018
39 slides from Eversource Energy (d/b/a)'s conference presentation, Nov 9, 2018
Slide 1: EEI Financial Conference
EEI Financial Conference Eversource Energy November 11-13, 2018
Slide 2: Safe Harbor Statement
EVERSSURCE ENERGY EEI FINANCIAL CONFERENCE 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 earings and EPS of each business do not represent a dir
Slide 3: Resolution of key electric and natural gas distribution rate cases
Resolution of key electric and natural gas distribution rate cases Excellent reliability and safety performance Completion of Aquarion transaction Completion of fossil and hydro generation divestiture Progress on numerous clean energy initiatives S&P credit rating of “A+”: Highest rating in industry
Slide 4: Eversource's Total Return Has Performed Well in the Short and Long Term
EEI FINANCIAL CONFERENCE Eversource’s Total Return Has Performed Well in the Short and Long Term Total Shareholder YTD 10/31/18 2017 3-Year | 5-Year 10-Year Return EEI Index 4.1% 11.7% | 26.1% 83.7% 97.6% S&P 500 3.0% 21.8% | 38.3% | 108.1% 126.0% (1) TSR for 2017 represents the 8" time in 9 years t
Slide 5: EPS 2012A-2021E
$3.11 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018E 2019E 2020E 2021E *Excludes merger and integration costs
Slide 6: Annualized Dividend
— Annualized Dividend 50 $2.00 i. $1.10 e P - e s 2011 2012 2013 2014 2015 2016 2017 2018 * Reflects impact of NU-NSTAR merger
Slide 7: Regulatory Update
EVERSSURCE REGULATORY UPDATE
Slide 8: Positive Regulatory Developments in Recent Months
EEI FINANCIAL CONFERENCE EVERSSURCE ene Positive Regulatory Developments in Recent Months Yankee Gas Rate Settlement FERC Transmission ROE Update Aquarion MA Rate Order + Effective date: 11/15/18, subject to PURA approval + Authorized ROE: 9.3% (current 8.83%) + Step rate increases in 2020 and 2021
Slide 9: Long-Term Distribution Rate Plans in Effect for Largest Operating Companies
EEI FINANCIAL CONFERENCE Long-Term Distribution Rate Plans in Effect for Largest Operating Companies = Base rate increases of $64.3 million on 5/1/18, $31 million on 5/1/19 and $29.2 million on 5/1/20 = Key Provisions: Continued revenue decoupling; tracking mechanism for capex over $270 million NSTA
Slide 10: Massachusetts Grid Mod: Outer Cape Community Battery Project
EEI FINANCIAL CONFERENCE Massachusetts Grid Mod: Outer Cape Community Battery Project Provingetown Wellfleet Circuit #948 Tie Switch #7 ae 1-94A-94B What It Is: A lithium ion battery, projected to provide upto three hours of back up supply in the summer and 10 hours in the winter. What It Will Look
Slide 11: Massachusetts Grid Mod: Make-Ready EV Plan
EEI FINANCIAL CONFERENCE Massachusetts Grid Mod: Make-Ready EV Plan = First step to supporting electric vehicles in our service territory = Weare evaluating program options to file in CT and NH = We believe the total investment opportunity across the three states could reach $500 million over the ne
Slide 12: Regulatory Status of Implementing Tax Reform
EEI FINANCIAL CONFERENCE Regulatory Status of Implementing Tax Reform FERC - Federalincome tax (FIT) rate decline to 21% reflectedin rates effective 1/1/18 - Filed comments on FERC’s Notice of Inquiry on 5/21/18; Awaiting FERC response to address impacts through second filing = NSTAR Electric - FiTr
Slide 13: Capital Initiatives
EVERSSURCE CAPITAL INITIATIVES
Slide 14: November Update to Our Utility Core Business Four-Year Capital Plan
EEI FINANCIAL CONFERENCE November Update to Our Utility Core Business Four-Year Capital Plan (in millions) $6,511" $335 $2,742" \\Now Projecting } $7.1Billion on Target 2018E 2019-2021E mTransmission Electric Distribution & Solar "Gas Distribution "Water —m Other, Including IT * February 2018 10-K e
Slide 15: Capital plan increases by segment
a Transmission (up $300Msince February): > Additional investments in structures and system hardening as a result of robust maintenance programs and post-March and May stormassessments Electric Distribution (up $200Msince February): > Additional automation, distribution facility upgrades and storm ha
Slide 16: System Hardening and Reliability Upgrades
System Hardening and Reliability Upgrades ‘Actual installation- Windsor St in Cambridge ute RW Bate Box 180% Targeted Equipment Replacement Growing Automation Investments
Slide 17: Status of Grid Modernization and Advanced Metering Infrastructure
EEI FINANCIAL CONFERENCE Status of Grid Modernization and Advanced Metering Infrastructure (AMI) in Massachusetts and Connecticut Massachusetts (D.P.U. 15-122) - May 2018 decision approved $133 million in grid facing investments in visibility and automation through 2020 - Next three-year plan will b
Slide 18: Ongoing LNG Investments
z Ongoing LNG Investments Accelerating Cast Iron & Bare Steel Replacements
Slide 19: 30% of NSTAR Gas Mains Cause 92% of the Leaks
EEI FINANCIAL CONFERENCE 30% of NSTAR Gas Mains (Bare Steel, Cast Iron, Unprotected Coated Steel) Cause 92% of the Leaks Miles of Main—Year-End2017 Leaks — Year-End 2017 Cast iron 36% Plastic 7% Protected coated steel 1% Unprotected coated steel 19% Unprotected coated steel coated steel 12% 12% Bare
Slide 20: Cast iron and bare steel replacement spending
In Millions $180 $160 $140 $120 Consistent with our sustainability strategy, we replaced 61 miles of cast iron and steel pipe with safer, more durable plastic in 2017.
Slide 21: At least $100 million of additional capex expected over 2019-2021
At least $100 million of additional capex expected over 2019-2021 period _ i nextforecast $450 $422 $335 $271 - $213 an $194 pai 00 $175 $150 $100 $50 | 2017A 2018E 2019E
Slide 22: Progress on Major Transmission Reliability Projects
EVERSSURCE ENERGY EEI FINANCIAL CONFERENCE Progress on Major Transmission Reliability Projects Greater Boston Reliability Solution - Greater Hartford Central Connecticut + 28 projects including seven new transmission (GHCC) lines, new substations and substation expansion projects + 16 projects have
Slide 23: Current Progress on Major Water Reliability Projects
EEI FINANCIAL CONFERENCE EVERSSURCE Current Progress on Major Water Reliability Projects Southwest Fairfield County (SWFC) Seacoast Reliability Program Supply Improvements = PRU) MOTs S$ - Major program of improvements for Hampton, Hampton Beach, Rye and Rye Brook NH + Transmission main improvements
Slide 24: A Deeper Look at Aquarion Water-CT's Plan to Improve SW CT Supplies
ei 5 EEI FINANCIAL CONFERENCE EVERSSURCE A Deeper Look at Aquarion Water-CT’s Nearly $200 Million Plan to Improve SW CT Supplies Transmission Main Improvements Supply Improvements + Phase 1—Water mains complete $10 million + Cannondale Well Diversion Permit Application + Phase 2— Stamford mains proj
Slide 25: 40% overall growth in water investment
g 40% overall Growth $950 ED Years = = —— $ $690 $700 3 3 a ° & ae 3 2 ir S s 2014 2016 2017 2018E 2019E 2020E 2021E
Slide 26: ESG Performance and Clean Energy Initiatives
EVERSSURCE ENERGY ESG PERFORMANCE AND CLEAN ENERGY INITIATIVES
Slide 27: Eversource is a Key Partner in Regional Energy Efficiency Efforts
—_E! jgbagualllig — eras cones erage Eversource is a Key Partner in Regional Energy Efficiency Efforts ‘Most improved MB Forks 1-10 MB Forks 11-20 Mi ronks 21-30 Ranks 31 - 40 Ranks 41-51 #1 Energy Efficiency Provider in the Nation Aecording to Ceres, 2016 Benchmarking Utility Clean Energy report Ev
Slide 28: Eversource Maintained Top Quartile Performance For All Sustainability Raters
EEI FINANCIAL CONFERENCE EVERSSURCE ENERGY Eversource Maintained Top Quartile Performance For All Sustainability Raters JUST Capital 2017 Sustinaiyicn2018_ Newsweek 2017 cop 2017 sioombers2017 cis Ereroy pote Sempra ‘CMS Eneray Nene Eoeroy var Secon centre erleneroy ton Edson ee can Egon Poe Nsource
Slide 29: New England States' Aggressive Renewable and GHG Targets
EEI FINANCIAL CONFERENCE New England States’ Aggressive Renewable and GHG Targets Likely Unaffected By Change in Washington Regional Greenhouse Gas Emission Targets MMTCO2e 160 110 @NH 60 =MA =cT 44 40 10 5 1990 Actual 2020/2025 2050 Target Target -40 Renewable Portfolio Standards in Place 2017 2020
Slide 30: Addressing Largest Sources of New England Carbon Emissions
EEI FINANCIAL CONFERENCE EVERSSURCE ENERGY a Eversource Addressing Largest Sources of New England Carbon Emissions: Transportation, Space Heating and Power Generation 2016 Energy Carbon Emissions by Source New England vs. U.S. 100% 58% Industrial 16.7% 80% 60% Power generation 40% Space heating 20%
Slide 31: MA/CT CO2 emissions and EVs on the road
MAICT CO2 emissions by sector (2015) Electric Power EVs on the road in MA/CT 300,000 250,000 200,000 # of EVs 150,000 100,000 50,000 States’ Objectives Ambitious goals set forth in the 2008 Global Warming Solutions Act Reduce GHG emissions 80% below 1990 levels by 2050 Committed to 450,000 EVs on th
Slide 32: Bay State Wind: Transforming Clean Energy in New England
EEI FINANCIAL CONFERENCE EVERSSURC! Bay State Wind: Transforming Clean Energy in New England Massachusetts Connecticut BAY STATE WIND. = Eversource and @rsted plan to construct a large scale, offshore wind facility in North America 50-50 partnership in Bay State Wind Proposed offshore wind farm 15-2
Slide 33: Financial Developments
EVERSSURCE ENERGY FINANCIAL DEVELOPMENTS
Slide 34: EPS by business 3Q2018 vs 3Q2017
EEI FINANCIAL CONFERENCE 3Q2018 3Q2017 Change YTD9 Electric Distribution $0.55 $0.50 $0.05 $1.19 $1.24 ($0.05) Electric Transmission 0.34 0.31 0.03 1.04 0.91 0.13 Natural Gas Distribution (0.04) (0.02) (0.02) 0.16 0.15 0.01 008 = 0.00008. 0080 Parent & Other 0.00 0.03 (0.03) 0.05 0.06 (0.01)
Slide 35: Sources and uses of cash from financing and divestitures
Proceeds from plant sales $194 million Decrease in notes payable to ES Parent $258 million Net proceeds from issuance of rate reduction bonds $629 million Retirement of PSNH Long-Term Debt $110 million Return of equity capital to ES Parent net of 2018 dividends, capital contribution $455 million
Slide 36: More Than $1 Billion of Higher Cost Debt Matures Through 2020
EEI FINANCIAL CONFERENCE More Than $1 Billion of Higher Cost Debt Matures Through 2020 2019 Maturities Issuer Size Rate Maturity (in $millions) CL&P. $250 5.50% 2/1/19 Yankee Gas $50 5.26% 11/1/19 ES Parent $350 4.50% 11/15/19 PSNH $150 4.50% 12/1/19 2020 Maturities Issuer (in ese Rate Maturity NSTA
Slide 37: Eversource Energy Credit Rating Agency Developments
EEI FINANCIAL CONFERENCE Eversource Energy Credit Rating Agency Developments in 2018 Moopy’s INVESTORS SERVICE = CL&P, Aquarion Company, and Aquarion CT ratings raised one notch = NSTAR Electric outlook raised to “positive” = Published note saying it viewed Yankee Gas settlement positively = A+ stab
Slide 38: S&P Ratings For Eversource Best Among Electric Utility Peers
EEI FINANCIAL CONFERENCE S&P Ratings For Eversource Best Among Electric Utility Peers 1. ES (Stable) _ Co At A- BBB+ BBB- *Standard & Poor's credit ratings
Slide 39: We Continue to Meet or Exceed Our Commitments to Investors
EEI FINANCIAL CONFERENCE EVERSSURC! We Continue to Meet or Exceed Our Commitments to Investors Results Delivered: Our Commitments: Five-year average EPS and dividend growth of 6.4% 1. Exceed industry EPS and dividend and 7.5%, respectively, through 2017. Growth growth driven by robust regulated Cap