Eversource Energy (D/B/A) · NYSE:ES
Eversource Energy (D/B/A) — Eversource Energy — Non-Deal Roadshow (June 2016)
21 slides from Eversource Energy (D/B/A)'s roadshow presentation, Jun 1, 2016
Slide 1: New York Investor Meetings
Eversource Energy New York Investor Meetings June 1, 2016
Slide 2: Safe Harbor
INVESTOR MEETINGS 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 an
Slide 3: The Eversource Investment Thesis
INVESTOR MEETINGS The Eversource Investment Thesis Fully regulated business model Strong FERC regulated electric and gas transmission growth 5% - 7% EPS Attractive natural gas segment growth from CAGR conversions, upgrades Top-tier credit ratings 5% - 7% No equity needs dividend CAGR Strong operatin
Slide 4: We've Delivered Top-Tier Shareholder Returns
INVESTOR MEETINGS 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 2015 3-Year 5-Year 10-Year ES -1.3% 44.6% 89.3% 263.1% Philadelphia Utility Index -6.3% 33.5% 57.6% 89.1% S&P 500 1.4% 52.6% 80.
Slide 5: Long-Term Earnings Growth
INVESTOR MEETINGS Long-Term Earnings Growth $2.90– $2.28 $2.53 $2.65 $2.81 $3.05 $2.81 2012A 2013A 2014A 2015A 2016E 2017E 2018E 2019E Key Drivers for EPS Growth in 2016 and Through 2019: Positive Negative FERC-regulated electric and natural gas Increasing depreciation & property transmission growth
Slide 6: ES Has the Highest Credit Rating in Utility Industry
INVESTOR MEETINGS ES Has the Highest Credit Rating in Utility Industry 16 14 14 Number of 1. ES (Stable) Issuers 2 1 A A- BBB+ BBB BBB- *Standard & Poor’s credit ratings 5
Slide 7: Rate Base by Business – Current and Future
INVESTOR MEETINGS Rate Base by Business – Current and Future Higher Earnings from Transmission Becoming a Growing Share of Rate Base $18.3 billion* Note: Rate Base Excludes 10% Access Northeast and $14.7 billion Clean Energy Connect 5% 9% 48% 51% $2.5 Billion Increase in Transmission Rate Base 35% 4
Slide 8: Transmission – Northern Pass Update
INVESTOR MEETINGS 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 July 21,
Slide 9: Access Northeast - Long-Term Solution to New England Natural Gas Supply
INVESTOR MEETINGS Access Northeast - Designed to Provide a Long-Term Solution to Challenge of New England Natural Gas Supply Project Scope: • Joint development with Eversource (40%), Spectra Energy (40%) and National Grid (20%) • ~$3 billion (100%); 900 MMcf/d, initial in-service 2018 • Will provide
Slide 10: 5 of 6 New England States Addressing Natural Gas Capacity Issues
INVESTOR MEETINGS 5 of 6 New England States Addressing Natural Gas Capacity Issues Electric Distribution Co. (EDC) Purchase of Natural Gas Pipeline Capacity Public Act 15-107 enacted June 22, 2015. Draft RFP issued on March 9 with schedule that included CT selection of gas projects this summer and s
Slide 11: Electric Transmission Investing $4.7 Billion From 2015-2019
INVESTOR MEETINGS Electric Transmission Investing $4.7 Billion From 2015-2019 Forecast Northern Pass HVDC Line Actual to Canada* $807M $3.9 Billion US portion estimated at $1,200 $1.5B Clean Energy Connect, other Greater Hartford Central new initiatives Connecticut Projects $1,000 $303M Greenwich /
Slide 12: Initiatives to Support Growth Beyond 2019
INVESTOR MEETINGS Initiatives to Support Growth Beyond 2019 Investment Status Amount Time Period Initial pipeline FERC pre-filing started Access Northeast $1.2 billion (ES share) 2018; LNG on November 3 afterward Bid into Clean Energy Clean Energy Connect TBD 2018-2020 RFP Regional initiatives to mo
Slide 13: Customer Growth Has Picked Up for Natural Gas Business
INVESTOR MEETINGS Customer Growth Has Picked Up for Eversource’s Natural Gas Business Natural gas heating customer count rising by 2%-3% per year in forecast period (Conversions and new construction) 18,000 16,000 14,000 Actual Customer Additions 12,000 10,000 8,000 6,000 12,500 11,415 10,356 10,625
Slide 14: Delivered on Commitments
INVESTOR MEETINGS Delivered on Commitments 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 reduction over 5% 3. Maintain strong financial
Slide 15: Projected Capital Expenditures
INVESTOR MEETINGS Projected Capital Expenditures Projected Capital Expenditures* Estimated ES Access Northeast $9.2 Billion 2016-2019 Investments $2,800 $2,662 $88 $500 $2,458 $2,400 $82 $2,212 $105 $400 $2,000 $1,937 $1,281 $1,835 $101 $1,227 $87 $ in Millions $1,600 $300 $ in Millions $1,196 $1,02
Slide 16: Projected Distribution/Generation Capital Expenditures
INVESTOR MEETINGS Projected Distribution/Generation Capital Expenditures $1,400 $1,281 $1,196 $1,227 $1,197 $1,200 $1,029 $1,000 $941 $ in Millions $800 $963 $888 $840 $892 $600 $726 $783 $400 $20 $200 $21 $33 $318 $339 $357 $284 $194 $213 $0 2014A 2015A 2016E 2017E 2018E 2019E Natural Gas Distribut
Slide 17: Projected Transmission Capital Expenditures
INVESTOR MEETINGS Projected Transmission Capital Expenditures $1,400 $1,293 $1,149 Clean Energy $1,200 Connect, other new initiatives $1,000 $911 $684 $31 $807 $115 $636 $800 $701 $38 $ in Millions $116 $112 $28 $69 $600 $162 $78 $121 $22 $302 $65 $38 $149 $400 $224 $238 $216 $40 $238 $56 $149 $200
Slide 18: Transmission - Clean Energy Connect
INVESTOR MEETINGS Transmission - Clean Energy Connect • Bid includes transmission, wind and hydro generation • Eversource investment is the Massachusetts portion of a 25-mile, 345 kV transmission line • 600 MW capacity • Co-developing with experienced renewable generation developers • Construction e
Slide 19: Three-State Clean Energy RFP Timeline
INVESTOR MEETINGS Three-State Clean Energy RFP Timeline Action Item Date Proposals Submitted January 28, 2016 Selection of Bidders April 26, 2016 – July 26, 2016 EDCs Execute Contracts June 23, 2016 – September 22, 2016 Submit Contracts for Regulatory Approval July 26, 2016 – October 25, 2016 Regula
Slide 20: Pending Regulatory Dockets
INVESTOR MEETINGS Pending Regulatory Dockets New Hampshire Generation Divestiture FERC ROE Complaints Initial settlement filed in June 2015 ALJ recommended decision issued on 3/22/16 Settlement with staff filed in January 2016 Second complaint: Base ROE = 9.59%; Decision expected shortly Cap = 10.42
Slide 21: Rate Case Activity
INVESTOR MEETINGS Rate Case Activity Jurisdiction Company Commentary NSTAR Electric Base rates frozen through 12/31/15 WMECO Base rate cases filed in 2017 Massachusetts NSTAR Gas $15.8M base rate increase effective 1/1/16 CL&P Next case: 2nd half of 2017, effective 12/1/17 Connecticut Yankee Gas Nee